Alliance Resource Partners ARLP Form 10-Q filing Q2 FY2026

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PART I

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FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

ITEM 1. FINANCIAL STATEMENTS

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See notes to condensed consolidated financial statements.

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except unit and per unit data)

(Unaudited)

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See notes to condensed consolidated financial statements.

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

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(1) Amortization of prior service cost and net actuarial loss is included in the computation of net periodic benefit cost (credit) (see Notes 11 and 12 for additional details).

(2) For more information on other adjustments please see Note 11.

(3) For more information on the change in unrealized gains please see Note 9.

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See notes to condensed consolidated financial statements.

ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

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See notes to condensed consolidated financial statements.

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ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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**1.**ORGANIZATION AND PRESENTATION

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Significant Relationships Referenced in Notes to Condensed Consolidated Financial Statements

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• References to “we,” “us,” “our” or “ARLP Partnership” mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries.
• References to “ARLP” mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis.
• References to “MGP” mean Alliance Resource Management GP, LLC, ARLP’s general partner.
• References to “Mr. Craft” mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP.
• References to “Intermediate Partnership” mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.
• References to “Alliance Coal” mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP.
• References to “Alliance Minerals” mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP.
• References to “Alliance Resource Properties” mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP.

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Organization

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ARLP is a Delaware limited partnership listed on the NASDAQ Global Select Market under the ticker symbol “ARLP.” ARLP was formed in May 1999 and completed its initial public offering on August 19, 1999 when it acquired substantially all of the coal production and marketing assets of Alliance Resource Holdings, Inc., a Delaware corporation, and its subsidiaries. We are managed by our general partner, MGP, a Delaware limited liability company which holds a non-economic general partner interest in ARLP.

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AllDale III & IV Acquisition

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On July 1, 2026, Alliance Minerals acquired certain general partner and limited partner interests in AllDale Minerals III, LP (“AllDale III”) & AllDale Minerals IV, LP ("AllDale IV", and collectively with AllDale III, "AllDale III & IV") for $206.2 million, subject to customary post-closing adjustments (the “AllDale III & IV Acquisition”). The AllDale III & IV Acquisition expands and diversifies the ARLP Partnership's portfolio of mineral and royalty interests through the acquisition of approximately 48,500 net royalty acres across premier basins and resource plays including the Permian, Anadarko, Bakken and Haynesville. See Note 3 – Variable Interest Entities, Note 4 – Acquisitions and Note 17 – Related Party Transactions for more information.

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Basis of Presentation

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The accompanying condensed consolidated financial statements include the accounts and operations of the ARLP Partnership and present our financial position as of June 30, 2026 and December 31, 2025, the results of our operations and comprehensive income for the three and six months ended June 30, 2026 and 2025 and cash flows for the six months ended June 30, 2026 and 2025. All intercompany transactions and accounts have been eliminated.

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These condensed consolidated financial statements and notes are prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim reporting and do not include all the information normally included with financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) of the United States. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.

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These condensed consolidated financial statements and notes are unaudited. However, in the opinion of management, these condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the full year ending December 31, 2026.

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Use of Estimates

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The preparation of the ARLP Partnership’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in our condensed consolidated financial statements. Actual results could differ from those estimates.

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**2.**NEW ACCOUNTING STANDARDS

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New Accounting Standards Issued and Not Yet Adopted

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In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). ASU 2024-03 requires the disclosure of additional information about specific expense categories in the notes to the financial statements to provide enhanced transparency into the nature and function of expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, on a prospective basis, with early adoption permitted. We continue evaluation of the impact of ASU 2024-03 on our results of operations, cash flows, financial condition and related disclosures including ongoing research as well as assessing our ability to accurately generate the information required for disclosure.

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In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 improves the accounting for software development costs by removing references to software development stages so that the accounting is neutral to different software development methods. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027 and interim periods within those fiscal years, with early adoption permitted. ASU 2025-06 can be applied on a prospective basis, a modified basis for in-process projects or a retrospective basis. We are evaluating the impact of ASU 2025-06 on our results of operations, cash flows, financial condition and related disclosures.

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**3.**VARIABLE INTEREST ENTITIES

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AllDale I & II and Cavalier Minerals

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We own the general partner interests and, including the limited partner interests we hold through our ownership in Cavalier Minerals JV, LLC (“Cavalier Minerals”), approximately 97% of the limited partner interests in AllDale Minerals LP (“AllDale I”) and AllDale Minerals II, LP (“AllDale II”, and collectively with AllDale I, “AllDale I & II”). As the general partner of AllDale I & II, we are entitled to receive 20.0% of all distributions from AllDale I & II with the remaining 80.0% allocated to limited partners based upon ownership percentages.

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Cavalier Minerals owns approximately 72% of the limited partner interests in AllDale I & II. We own the managing member interest and a 96% member interest in Cavalier Minerals. Bluegrass Minerals Management, LLC (“Bluegrass Minerals”) owns a 4% member interest in Cavalier Minerals and a profits interest which entitles it to receive distributions equal to 25% of all distributions (including in liquidation).

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We have concluded that AllDale I, AllDale II and Cavalier Minerals are variable interest entities (“VIEs”) which we consolidate as the primary beneficiary because we have the power to direct the activities that most significantly impact the economic performance of AllDale I, AllDale II and Cavalier Minerals in addition to having substantial equity ownership.

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Our share of Cavalier Minerals’ investment in AllDale I & II is eliminated in consolidation and Bluegrass Minerals’ investment in Cavalier Minerals is accounted for as noncontrolling ownership interest on our condensed consolidated balance sheets. Additionally, earnings attributable to Bluegrass Minerals are recognized as noncontrolling interest in our condensed consolidated statements of income.

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The following table presents the carrying amounts and classification of AllDale I & II’s assets and liabilities included in our condensed consolidated balance sheets:

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AllDale III

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AllDale III owns oil & gas mineral interests in areas around the oil & gas mineral interests we own. As of June 30, 2026, Alliance Minerals owned a 13.9% limited partner interest in AllDale III. Alliance Minerals’ investment in AllDale III was subject to a 25% profits interest for the general partner that was subject to a return hurdle equal to the greater of 125% of cumulative capital contributions and a 10% internal rate of return, and following an 80/20 “catch-up” provision for the general partner.

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We concluded that AllDale III was a VIE that we did not consolidate. AllDale III is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in operational decisions. We were not the primary beneficiary of AllDale III because we did not have the power to direct the activities that most significantly impact AllDale III’s economic performance. At June 30, 2026 and December 31, 2025, the carrying value of our investment in AllDale III was $20.1 million and $21.0 million, respectively.

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As discussed in Note 1 – Organization and Presentation, on July 1, 2026, Alliance Minerals acquired certain general partner and limited partner interests in AllDale III & IV. At the same time, related parties of Mr. Craft also acquired limited partner interests in AllDale III. As the result of these acquisitions and the pre-existing ownership of interests in AllDale III by Alliance Minerals and related parties of Mr. Craft, all of the general partner and limited partner interests in AllDale III were owned by either Alliance Minerals or related parties of Mr. Craft. Following the acquisitions, the parties entered into Contribution and Exchange Agreements by which they exchanged those interests for limited partner interests in AllDale III, eliminated the pre-existing profits interest attributable to the general partner interests, and assigned a non-economic general partner interest to a subsidiary of ARLP. As a result, we hold 100% of the non-economic general partner interest and 46.92% of the limited partner interests in AllDale III. Beginning in the third quarter of 2026 we expect these transactions to lead us to start consolidating AllDale III as the primary beneficiary because we will have the power to direct the activities that most significantly impact the economic performance of AllDale III. See Note 17 – Related-Party Transactions for more information about the Contribution and Exchange Agreements.

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NGP ET IV

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We have committed to purchase $25.0 million of limited partner interests in NGP Energy Transition, L.P. (“NGP ET IV”), a private equity fund focused on investments that are part of the energy transition. This commitment represents a 3.6% interest in NGP ET IV. As of June 30, 2026, our commitment was $12.4 million, which include distributions we have received that may be recalled.

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We have concluded that NGP ET IV is a VIE that we do not consolidate. NGP ET IV is structured as a limited partnership with limited partners (i) not having the ability to remove the general partner and (ii) not participating significantly in operational decisions. We are not the primary beneficiary of NGP ET IV because we do not have the power to direct the activities that most significantly impact NGP ET IV’s economic performance. At June 30, 2026 and December 31, 2025, the carrying value of our investment in NGP ET IV was $18.0 million and $13.4 million, respectively.

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Gavin Generation

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We have committed to invest up to $25.0 million of limited partner interests in Gavin Generation Holdings A, LP (“Gavin Generation”). Gavin Generation owns, indirectly, an interest in a joint venture holding company formed with a third-party that indirectly owns and operates a coal-fired power plant. This commitment represents an interest of 5.4% in Gavin Generation (based on total commitments). As of June 30, 2026, our commitment was $17.4 million, which include distributions we have received that may be recalled. Our investment in Gavin Generation is subject to a customary profit interest in favor of the general partner after the return of capital to the limited partners and the investment generating a specified internal rate of return in favor of the limited partners.

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We have concluded that Gavin Generation is a VIE that we do not consolidate. Gavin Generation is structured as a limited partnership with the limited partners (1) not having the ability to remove the general partner and (2) not participating significantly in operational decisions. We are not the primary beneficiary of Gavin Generation because we do not have the power to direct the activities that most significantly impact Gavin Generation’s economic performance. At June 30, 2026 and December 31, 2025, the carrying value of our investment in Gavin Generation was $33.2 million and $35.2 million, respectively.

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**4.**ACQUISITIONS

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During the six months ended June 30, 2026, we acquired 881 oil & gas net royalty acres in the Permian Basin through a series of transactions for an aggregate cash purchase price of $22.0 million which was funded with cash on hand. These acquisitions further enhance our ownership position in the Permian Basin. Because the mineral interests acquired in these acquisitions include royalty interests in both developed properties and undeveloped properties with different risk profiles, we have determined that these acquisitions should be accounted for as business combinations and the underlying assets should be recorded at fair value on their respective acquisition dates on our condensed consolidated balance sheet.

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The following table summarizes the fair value allocation of assets acquired:

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The fair value of the mineral interests was determined using an income approach consisting of discounted cash flow models. The assumptions used in the discounted cash flow models include estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates. Certain assumptions used were not observable in active markets; therefore, the fair value measurements represent Level 3 fair value measurements.

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The amounts of revenues and earnings from the mineral interests acquired included in our condensed consolidated statements of income from their respective acquisition dates through June 30, 2026 are immaterial.

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The following table represents our supplemental pro forma revenues and net income for the three and six months ended June 30, 2026 and 2025 as if the mineral interests acquired had been included in our consolidated results since January 1, 2025. These amounts have been calculated after applying our accounting policies.

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AllDale III &IV Acquisition

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On July 1, 2026, we acquired certain general partner and limited partner interests in AllDale III & IV for $206.2 million, subject to customary post-closing adjustments. We funded the AllDale III & IV Acquisition using a combination of cash on hand, and borrowings under both our revolving credit facility and the Minerals Term Loan. See Note 10 – Long-Term Debt for more information on the terms of the Credit Agreement and Minerals Term Loan. In connection with the AllDale III & IV Acquisition, certain entities related to Mr. Craft acquired, pursuant to separate definitive agreements, an aggregate of $100.0 million of limited partner interests in AllDale III.

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Because the underlying mineral interests held by AllDale III & IV include royalty interests in both developed properties and undeveloped properties with different risk profiles, we have determined that the AllDale III & IV Acquisition should be accounted for as a business combination and the underlying assets and liabilities of AllDale III & IV will be recorded at their July 1, 2026 acquisition date fair values on our condensed consolidated balance sheet.

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We are in the process of performing our valuation of our previously held equity method investment in AllDale III, the acquired assets and liabilities and the noncontrolling interest. Given the recent date of the acquisition, we have not finalized our determination of the fair value of the various measurements as we continue to gather information to determine the assumptions we intend to use in our valuation.

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Prior to the AllDale III & IV Acquisition, we accounted for our investment in AllDale III as an equity method investment. We anticipate re-measuring our equity method investment immediately prior to the AllDale III & IV Acquisition using a discounted cash flow model. The assumptions to be used in the determination of the fair value measurement include estimated production, projected cash flows, forward oil & gas prices and a risk adjusted discount rate, among others.

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We anticipate determining the fair value of the mineral interests by determining an entity-wide value using discounted expected cash flows based on estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates. AllDale III & IV also hold certain commodity derivative instruments, and we anticipate determining the fair value of these instruments by observing similar transactions and developing a value that is then adjusted for counterparty risk. We anticipate using the carrying values for any acquired receivables, payables and cash, as this represents their fair value given their short-term nature.

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We anticipate determining the fair value of the noncontrolling interests using a discounted cash flow model. The assumptions to be used in the determination of the fair value measurements include estimated production, projected cash flows, forward oil & gas prices and a risk adjusted discount rate, among others.

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**5.**FAIR VALUE MEASUREMENTS

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The following table summarizes certain fair value measurements within the hierarchy:

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The carrying amounts for cash equivalents, accounts receivable, accounts payable, accrued and other liabilities approximate fair value due to the short maturity of those instruments.

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The fair value of our digital assets is based on an exchange quoted price. See Note 7 – Digital Assets for more information on our digital assets.

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The fair value measurement of our contingent consideration liability is determined using an option approach methodology simulation based on significant inputs not observable in active markets representing a Level 3 fair value measurement under the fair value hierarchy. Our contingent consideration liability is associated with our acquisition of our Hamilton County Coal, LLC (“Hamilton”) mine in 2015 wherein we agreed to pay the seller additional consideration for the acquisition if the average quarterly sales price exceeds a defined threshold price in any future quarters subject to a maximum of $110.0 million reduced for any payments made under an overriding royalty agreement with the sellers relating to mineral interests controlled by our Hamilton mine. We have paid $17.1 million under this contingent consideration agreement and $2.2 million under the overriding royalty agreement as of June 30, 2026.

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The estimated fair value of our long-term debt, including current maturities, is based on interest rates that we believe are currently available to us in active markets for issuance of debt with similar terms and remaining maturities. See Note 10 – Long-Term Debt for additional information on our long-term debt.

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Quantitative Information about Level 3 Fair Value Measurements

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Contingent Consideration

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Our option approach methodology simulation for contingent consideration generates an expected payment for each quarter in Hamilton’s expected mine life by using proprietary internal estimates of our uncommitted coal sales prices and generating a simulated uncommitted coal sales price by applying unobservable inputs through a million simulations. This simulated coal sales price is then used in a calculation of the expected future payments using our proprietary committed coal sales prices and production for each quarter. We then calculate the present value of the estimated future payments. The following table presents quantitative information about certain significant unobservable inputs used in the fair value measurement for our contingent consideration liability. The use of significant unobservable inputs results in uncertainty as of the reporting date, as changes in these unobservable inputs could significantly raise or lower the estimated fair value.

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(a) Averages represent the arithmetic average of the inputs and is not weighted by a relative fair value or notional amount.

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The following table represents changes in our contingent consideration liability:

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(1) Noncash changes in the fair value of our contingent consideration liability are included in the Operating expenses (excluding depreciation, depletion and amortization) line item within our condensed consolidated statements of income.

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**6.**INVENTORIES

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Inventories consist of the following:

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The above coal inventory balances reflect lower of cost or net realizable value adjustments of $9.7 million and $8.3 million as of June 30, 2026 and December 31, 2025, respectively. The adjustment as of June 30, 2026 is primarily a result of higher cost per ton at the Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively “Mettiki”) mining complex due to reduced production following the decision to cease longwall production. The adjustment as of December 31, 2025 is the result of higher cost per ton at the Mettiki mining complex due to lower production and challenging geological conditions in the longwall panel that reduced coal recovery.

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**7.**DIGITAL ASSETS

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The following table sets forth our digital assets cost basis and fair value as shown on the condensed consolidated balance sheet:

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**8.**LONG-LIVED ASSET IMPAIRMENT

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On January 29, 2026, we announced our decision to cease longwall production at our Mettiki mining complex, which is primarily included in our Appalachia Coal Operations reportable segment. We concluded that as a result of this decision, along with uncertainty regarding future longwall production resumption and our evaluation of potential operation scenarios, we would not recover the carrying value of Mettiki’s assets. Accordingly, we adjusted the carrying value of Mettiki’s assets from $95.3 million to its fair value of $57.5 million resulting in an impairment charge of $37.8 million. While limited coal production is ongoing with continuous mining units, we continue to evaluate options concerning the mine’s future.

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The fair value of the impaired assets was determined using an income approach, which represents a Level 3 fair value measurement under the fair value hierarchy. Our analysis considered two operating scenarios for Mettiki and reflected a probability-weighted discounted cash flow model based on these scenarios. Significant assumptions in the model included proprietary internal estimates of expected future sales volumes, realized coal sales prices, operating costs, capital requirements, the timing of cessation of operations, and a risk-adjusted discount rate. The following table presents quantitative information about certain significant unobservable inputs used in our nonrecurring fair value measurement. The use of significant unobservable inputs results in uncertainty as changes in these unobservable inputs could significantly impact the estimated fair value.

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(a) Averages represent the arithmetic average of the inputs and is not weighted by a relative fair value or notional amount.

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9.INVESTMENTS

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Equity Method Investments

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The changes in our equity method investments were as follows:

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Net income (loss) on equity method investments represents our share of the income or loss of the equity method investments.

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Infinitum

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As of June 30, 2026 we have an $86.4 million investment in Infinitum Electric, Inc. (“Infinitum”). Infinitum is a Texas-based startup developer and manufacturer of electric motors featuring printed circuit board stators. During 2022, we purchased shares of Series D Preferred Stock in Infinitum for $42.0 million. During 2023, we purchased shares of Series E Preferred Stock in Infinitum for $24.6 million at a slightly higher price per share than our Series D Preferred Stock, resulting in an increase of $1.0 million in the carrying value of our investment. On December 31, 2025, we purchased shares of Series F Preferred Stock (together with the Series D and Series E Preferred Stock, the “Infinitum Preferred Stock”) in Infinitum for $14.9 million.

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The Infinitum Preferred Stock provides for non-cumulative dividends when and if declared by Infinitum’s board of directors and is convertible, at any time, at our option, into shares of common stock of Infinitum. We account for our investment in Infinitum as an equity investment without a readily determinable fair value. Absent an observable price change, it is not practicable to estimate the fair value of our investment in Infinitum because of the lack of a quoted market price for our ownership interests. Therefore, we use a measurement alternative other than fair value to account for our investment.

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Infinitum completed its Series F Preferred Stock funding round in the first quarter of 2026 and finalized the value per share of this issuance. In addition to the shares of Series F Preferred Stock we purchased, we also received additional Series D and Series E Preferred Stock in accordance with anti-dilution provisions designed to maintain our initial investment value in those issuances. Some of the additional shares we received under the anti-dilution provisions had a share price that was lower than the Series F Preferred Stock. Infinitum's Series F Preferred Stock issuance represents an observable price change in an orderly transaction for an investment that is similar to our Series D and Series E Preferred Stock investments. We therefore remeasured our shares to reflect the Series F Preferred Stock share price increasing the carrying value of our investments by $3.8 million. We used the Series F Preferred Stock issuance price per share without adjustment to remeasure investments since the rights and obligations of the securities are substantially the same. This remeasurement represents a Level 2 fair value measurement as it is based on a quoted price for a similar security in a market that is not active.

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We have made $4.8 million cumulative upward fair value adjustments to the carrying amount of our investments in Infinitum since our initial investment in 2022.

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Ascend

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On August 22, 2023, we purchased shares of Series D Preferred Stock (the “Ascend Series D Preferred Stock”) in Ascend Elements, Inc. (“Ascend”) for $25.0 million which was accounted for as an equity investment without a readily determinable fair value because of the lack of quoted market prices. Ascend is a U.S.-based manufacturer and recycler of sustainable, engineered battery materials. In June 2025, Ascend raised new capital through a recapitalization utilizing the issuance of convertible notes. Under the terms of the convertible notes and the resulting recapitalization, all shares of each outstanding series of preferred stock were converted into common stock on a 1:1 basis for stockholders that participated in the convertible notes or on a 3:1 basis if they did not participate.

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We elected to participate in the recapitalization of Ascend with a $3.0 million commitment to purchase convertible notes. As of June 30, 2025, we had funded $2.1 million of this commitment. The convertible notes provided for a redemption in two years for an amount equal to the greater of (a) a multiple of each stockholder’s investment in the convertible notes as determined by their level of participation or (b) the principal amount of each stockholder’s investment in the convertible notes plus an annual interest rate of 15%. Based on our level of participation, our convertible notes provided for a multiple of 12 times our funded commitment at redemption. We concluded that these convertible notes represented available-for-sale debt securities as we did not intend to sell the notes and believed that it was likely we would not be required to sell them before redemption. As a result of our participation in the recapitalization, our shares of Ascend Series D Preferred Stock converted into common stock on a 1:1 basis.

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The following table presents our debt securities holdings:

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(1) Unrealized gains in our debt securities are included in the Change in unrealized gains on debt securities line item within our condensed consolidated statements of comprehensive income.

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We determined the fair value of the debt securities by using a combination of market approaches and option-pricing models which utilized significant inputs not observable in active markets representing a Level 3 fair value measurement under the fair value hierarchy. The underlying enterprise value was estimated using income and market approaches which utilized discounted cash flows and market participant values for assets in hypothetical sales scenarios. The enterprise value was then utilized in market approach models and option-pricing models taking into account the rights and preferences of the convertible notes, expected exit scenarios as of June 30, 2025, and the volatility associated with those outcomes to arrive at a fair value.

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Using the same models we used to value the debt securities on June 30, 2025, we determined that the common stock we received in the recapitalization had no value, resulting in a $25.0 million impairment charge included in our condensed consolidated statements of income. The impairment represented a Level 3 fair value measurement and is included within our Other, Corporate and Elimination category.

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In December 2025, Ascend issued additional convertible notes senior to our convertible notes with similar multiples which significantly lowered the likelihood of recovery of a multiple of our principal investment. This lower likelihood of recovery of the multiple of our principal investment at redemption in addition to our lack of visibility into Ascend's financial condition and performance as of December 31, 2025, led us to conclude it was likely we would also not recover our principal investment of $3.0 million and fully impaired our debt securities as of December 31, 2025.

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**10.**LONG-TERM DEBT

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Long-term debt consists of the following:

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Credit Facility

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On January 13, 2023, Alliance Coal, as borrower, entered into a credit agreement with various financial institutions which was amended on June 12, 2024 (the “Credit Agreement”). The Credit Agreement provides for a $425.0 million revolving credit facility which includes a sublimit of $15.0 million for swingline borrowings and permits the issuance of letters of credit up to the full amount of the Credit Facility (the “Revolving Credit Facility”), and for a term loan in an aggregate principal amount of $75.0 million (the “Alliance Coal Term Loan”). The Revolving Credit Facility also includes an incremental facility providing for an increase of $100.0 million at our option subject to lenders agreeing to participate in such incremental facility. The Credit Agreement matures on March 9, 2028, at which time the aggregate outstanding principal amount of all Revolving Credit Facility advances and all Alliance Coal Term Loan advances are required to be repaid in full. Interest is payable quarterly, with principal on the Alliance Coal Term Loan due in quarterly installments equal to 6.25% of the outstanding balance of the Alliance Coal Term Loan on the Credit Agreement amendment date beginning with the quarter ended June 30, 2024.

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The Credit Agreement is guaranteed by ARLP and certain of its subsidiaries, including the Intermediate Partnership and most of the direct and indirect subsidiaries of Alliance Coal (the “Coal Subsidiary Guarantors”). The Credit Agreement also is secured by substantially all of the assets of the Coal Subsidiary Guarantors and Alliance Coal. Borrowings under the Credit Agreement bear interest, at our option, at either (i) an adjusted one-month, three-month or six-month term rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York, plus the applicable margin or (ii) the base rate plus the applicable margin. The base rate is the highest of (i) the Overnight Bank Funding Rate plus 0.50%, (ii) the Administrative Agent’s prime rate, and (iii) the Daily Simple Secured Overnight Financing Rate plus 100 basis points. The applicable margin for borrowings under the Credit Agreement are determined by reference to the Consolidated Debt to Consolidated Cash Flow Ratio. For borrowings under the Alliance Coal Term Loan, we elected the one-month term rate, with applicable margin, which was 7.23% as of June 30, 2026. At June 30, 2026, we had $41.0 million of letters of credit outstanding with $305.5 million available for borrowing under the Revolving Credit Facility. We incur an annual commitment fee of 0.50% on the undrawn portion of the Revolving Credit Facility. We utilize the Credit Agreement, as appropriate, for working capital requirements, capital expenditures and investments, scheduled debt payments and distribution payments.

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The Credit Agreement contains various restrictions affecting Alliance Coal and its subsidiaries, including, among other things, restrictions on incurrence of additional indebtedness and liens, sale of assets, investments, mergers and consolidations and transactions with affiliates. In each case, these restrictions are subject to various exceptions. In addition, restrictions apply to cash distributions by Alliance Coal to the Intermediate Partnership if such distribution would result in the debt of Alliance Coal to cash flow ratio (as determined in the Credit Agreement) being more than 1.0 to 1.0 or in Alliance Coal having liquidity of less than $200 million. The Credit Agreement requires us to maintain (a) a debt of Alliance Coal to cash flow ratio of not more than 1.5 to 1.0, (b) a consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio of not more than 2.5 to 1.0 and (c) an interest coverage ratio of not less than 3.0 to 1.0, in each case, during the four most recently ended fiscal quarters. The debt of Alliance Coal to cash flow ratio, consolidated debt of Alliance Coal and the Intermediate Partnership to cash flow ratio, and interest coverage ratio were 0.37 to 1.0, 1.16 to 1.0 and 41.98 to 1.0, respectively, for the trailing twelve months ended June 30, 2026. We were in compliance with the covenants of the Credit Agreement as of June 30, 2026 and anticipate remaining in compliance with the covenants.

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8.625% Senior Notes due 2029

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On June 12, 2024, the Intermediate Partnership and Alliance Resource Finance Corporation (as co-issuer), a wholly owned subsidiary of the Intermediate Partnership (“Alliance Finance”), issued an aggregate principal amount of $400.0 million of senior unsecured notes due 2029 (the “2029 Senior Notes”) in a private placement to qualified institutional buyers. The 2029 Senior Notes have a term of five years, maturing on June 15, 2029 and accrue interest at an annual rate of 8.625%. Interest is payable semi-annually in arrears on each June 15 and December 15. The 2029 Senior Notes are guaranteed, jointly and severally, on a senior unsecured basis by ARLP, certain of ARLP’s wholly owned oil and gas and coal royalties subsidiaries and each of ARLP’s subsidiaries that guarantee obligations under the Credit Agreement. The indenture governing the 2029 Senior Notes contains customary terms, events of default and covenants relating to, among other things, the incurrence of debt, the payment of distributions or similar restricted payments, undertaking transactions with affiliates and limitations on asset sales. The issuers may redeem all or a part of the 2029 Senior Notes at any time at the redemption prices set forth in the indenture, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

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Accounts Receivable Securitization

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Certain direct and indirect wholly owned subsidiaries of our Intermediate Partnership are party to a $75.0 million accounts receivable securitization facility (“Securitization Facility”). Under the Securitization Facility, certain subsidiaries sell certain trade receivables on an ongoing basis to our Intermediate Partnership, which then sells the trade receivables to AROP Funding, LLC (“AROP Funding”), a wholly owned bankruptcy-remote special purpose subsidiary of our Intermediate Partnership, which in turn borrows on a revolving basis up to $75.0 million secured by the trade receivables. After the sale, Alliance Coal, as servicer of the assets, collects the receivables on behalf of AROP Funding. The Securitization Facility bears interest based on a short-term bank yield index. On June 30, 2026, we had $11.7 million of letters of credit outstanding with $7.3 million available for borrowing under the Securitization Facility. The agreement governing the Securitization Facility contains customary terms and conditions, including limitations with regards to certain customer credit ratings. In January 2026, we extended the term of the Securitization Facility to January 2027. At June 30, 2026, we had a $56.0 million outstanding balance under the Securitization Facility.

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February 2024 Equipment Financing

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On February 28, 2024, Alliance Coal entered into an equipment financing arrangement accounted for as debt, wherein Alliance Coal received $54.6 million in exchange for conveying its interest in certain equipment owned indirectly by Alliance Coal and entering into a master lease agreement for that equipment (the “February 2024 Equipment Financing”). The February 2024 Equipment Financing contains customary terms and events of default and provides for forty-eight monthly payments with an implicit interest rate of 8.29%, maturing on February 28, 2028. Upon maturity, the equipment will revert to Alliance Coal.

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Craft Foundation Installment Purchase Arrangement

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On January 29, 2026, Alliance Resource Properties, as borrower, entered into an installment purchase arrangement with the Joseph W. Craft III Foundation, an entity controlled by Mr. Craft, for $5.9 million pursuant to the purchase of certain coal reserves. The installment purchase arrangement contains customary terms and events of default and provides for six annual payments of $1.2 million each, with an interest rate of 5.0%, beginning on January 1, 2027 and maturing on January 1, 2032. Alliance Resource Properties has the right at its option, as well as the obligation if demanded by the Joseph W. Craft III Foundation, to prepay all unpaid purchase price installments (together with accrued and unpaid interest thereon) at any time without penalty or premium. As of June 30, 2026, we had a $5.9 million outstanding balance under this arrangement.

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Alliance Minerals Term Loan

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On July 1, 2026, Alliance Minerals, as borrower, entered into a term loan for an aggregate principal amount of $150.0 million (the "Alliance Minerals Term Loan") with Truist Bank, who is acting as administrative agent. The Alliance Minerals Term Loan matures on January 1, 2028, at which time the aggregate outstanding principal amount of the Alliance Minerals Term Loan is required to be repaid in full. Interest is payable no less frequently than quarterly, with principal payments of $18.75 million due quarterly beginning with the quarter ending September 30, 2026.

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The Alliance Minerals Term Loan is guaranteed by ARLP, our Intermediate Partnership, certain of Alliance Minerals’ direct and indirect subsidiaries, and AllRoy GP, LLC and its subsidiaries (the "Minerals Subsidiary Guarantors"). The Alliance Minerals Term Loan also is secured by the equity interests in and personal property of Alliance Minerals and the Minerals Subsidiary Guarantors, and by the equity interests of Alliance Minerals and the Minerals Subsidiary Guarantors in the ARLP Partnership’s other oil & gas mineral entities. Borrowings under the Alliance Minerals Term Loan bear interest, at our option, at either (i) an adjusted one-month, three-month or six-month term rate based on the secured overnight financing rate published by the Federal Reserve Bank of New York plus the applicable margin or (ii) the base rate plus the applicable margin. The base rate is the highest of (i) the Administrative Agent’s prime rate, (ii) the Federal Funds Rate plus 0.50%, (iii) term secured overnight financing rate for an interest period of one month, plus 1.0% and (iv) zero percent. The applicable margin for borrowings under the Alliance Minerals Term Loan is determined by reference to the principal amount outstanding.

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The Alliance Minerals Term Loan contains various restrictive covenants applicable to Alliance Minerals and its subsidiaries, including limitations on indebtedness, liens, asset sales, investments, mergers and consolidations, and affiliate transactions, in each case subject to customary exceptions. In addition, the restrictions provide an aggregate limit of $575.0 million Notes Indebtedness as such term is defined in the Alliance Minerals Term Loan at our Intermediate Partnership. The Alliance Minerals Term Loan requires us to maintain (a) total consolidated secured debt of Alliance Minerals to consolidated EBITDA of Alliance Minerals ratio of not more than 2.0 to 1.0, and (b) a total consolidated debt of Alliance Minerals to consolidated Alliance Minerals cash flow ratio of not more than 2.5 to 1.0, during the four most recently ended fiscal quarters.

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**11.**WORKERS’ COMPENSATION AND PNEUMOCONIOSIS

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The changes in the workers’ compensation liability, including current and long-term liability balances, for each of the periods presented were as follows:

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(1) Our estimate of the liability for the present value of current workers′ compensation benefits is based on our actuarial calculations. Our actuarial calculations are based on a blend of actuarial projection methods and numerous assumptions including claims development patterns, mortality, medical costs and interest rates. The valuation gain in 2026 is due to an increase in the discount rate from 4.78% on December 31, 2025 to 5.10% on June 30, 2026. The valuation loss in 2025 is due to a decrease in the discount rate from 5.17% on December 31, 2024 to 4.92% on June 30, 2025.

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We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a claim have been met. The deductible level may vary by claim year. Our workers’ compensation liability above is presented on a gross basis and does not include our expected receivables from our insurance policy. Our receivables for traumatic injury claims under this policy as of June 30, 2026 are $4.1 million and are included in Other long-term assets on our condensed consolidated balance sheet.

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Certain of our mine operating entities are liable under state statutes and the Federal Coal Mine Health and Safety Act of 1969, as amended, to pay pneumoconiosis, or black lung, benefits to eligible employees and former employees and their dependents. Components of the net periodic benefit cost for each of the periods presented are as follows:

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(1) Interest cost, amortization of net actuarial loss and other adjustments are included in the Other income line item within our condensed consolidated statements of income.

(2) This line item includes an immaterial adjustment related to the correction of actuarial assumptions for terminated employees in the prior period.

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**12.**COMPONENTS OF PENSION PLAN NET PERIODIC BENEFIT COSTS

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Eligible employees at certain of our mining operations participate in a defined benefit plan (the “Pension Plan”) that we sponsor. The Pension Plan is closed to new applicants and participants in the Pension Plan are no longer receiving benefit accruals for service. The benefit formula for the Pension Plan is a fixed dollar unit based on years of service. Components of the net periodic benefit credit for each of the periods presented are as follows:

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(1) Net periodic benefit credit for the Pension Plan is included in the Other income line item within our condensed consolidated statements of income.

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We do not expect to make material contributions to the Pension Plan during 2026.

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**13.**CONTINGENCIES

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We have various lawsuits, claims and regulatory proceedings incidental to our business that are pending against us. We record an accrual for a potential loss related to these matters when, in management’s opinion, such loss is probable and reasonably estimable. Based on known facts and circumstances, we believe the ultimate outcome of these outstanding lawsuits, claims and regulatory proceedings will not have a material adverse effect on our financial condition, results of operations or liquidity. However, if the results of these matters are different from management’s current expectations and in amounts greater than our accruals, such matters could have a material adverse effect on our business and operations.

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**14.**PARTNERS’ CAPITAL

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Distributions

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Distributions paid or declared during 2025 and 2026 were as follows:

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(1) On July 27, 2026, we declared this quarterly distribution payable on August 14, 2026 to all unitholders of record as of August 7, 2026.

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Change in Partners’ Capital

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The following tables present the quarterly change in Partners' Capital for the three and six months ended June 30, 2026 and 2025:

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**15.**COMMON UNIT-BASED COMPENSATION PLAN

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Long-Term Incentive Plan

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A summary of non-vested Long-Term Incentive Plan (“LTIP”) grants of restricted units is as follows:

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(1) The restricted units granted during 2026 have certain minimum-value guarantees per unit, regardless of whether the awards vest.

(2) During the six months ended June 30, 2026, we issued 230,777 unrestricted common units to the LTIP participants. The remaining vested units were withheld to satisfy tax withholdings.

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LTIP expense for grants of restricted units was $2.3 million for each of the three months ended June 30, 2026 and 2025 and $4.0 million and $4.2 million for the six months ended June 30, 2026 and 2025, respectively. The total obligation associated with LTIP grants of restricted units as of June 30, 2026 was $12.2 million and is included in the partners’ capital Limited partners-common unitholders line item on our condensed consolidated balance sheets. As of June 30, 2026, there was $15.1 million in total unrecognized compensation expense related to the non-vested LTIP restricted unit grants that are expected to vest. That expense is expected to be recognized over a weighted-average period of 1.5 years.

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**16.**REVENUE FROM CONTRACTS WITH CUSTOMERS

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The following table illustrates the disaggregation of our revenues by type, including a reconciliation to our segment presentation as presented in Note 20 – Segment Information.

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The following table illustrates the beginning and ending balances of our trade receivables:

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The following table illustrates the amount of our transaction price for all coal supply contracts allocated to performance obligations that are unsatisfied or partially unsatisfied as of June 30, 2026 and disaggregated by segment and contract duration.

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17**.**RELATED-PARTY TRANSACTIONS

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Craft Foundations

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In January 2005, we acquired Tunnel Ridge from Alliance Resource Holdings, Inc., a wholly owned subsidiary of ARLP. In connection with this acquisition, we assumed a coal lease and surface land lease with Alliance Resource GP, LLC, an entity indirectly wholly owned by Mr. Craft and Kathleen S. Craft until it was dissolved in December 2020. In December 2018, the property subject to the leases was transferred to The Joseph W. Craft III Foundation and The Kathleen S. Craft Foundation (the “Craft Foundations”).

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On January 29, 2026, Alliance Resource Properties purchased all of the ownership interests in the coal reserves and surface rights located in Ohio County, West Virginia and Washington County, Pennsylvania that were subject to the leases from the Craft Foundations for $15.5 million in the aggregate. The entire purchase price of $7.75 million payable to The Kathleen S. Craft Foundation was paid in full at the closing, while The Joseph W. Craft III Foundation was paid approximately $1.8 million at closing with the balance of the purchase price to be paid over the next six years. See Note 10 – Long-Term Debt for more information on the installment purchase arrangement.

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Contribution and Exchange Agreements

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In connection with the AllDale III & IV Acquisition on July 1, 2026 as discussed in Note 1 – Organization and Presentation, the ARLP Partnership entered into Contribution and Exchange Agreements with the related parties who held general and limited partner interests in AllDale III & IV prior to the AllDale III & IV Acquisition and the related parties who acquired limited partner interests in AllDale III (collectively the “Craft Related Parties”). Pursuant to the Contribution and Exchange Agreements, the parties effected a series of coordinated transactions to restructure the ownership and governance of AllDale III & IV, including exchanging the existing general partner interests held by Alliance Minerals and certain Craft Related Parties for limited partner interests in AllDale III & IV, eliminating the pre-existing profits interests attributable to those general partner interests and assigning the non-economic general partner interests to AllRoy GP, LLC, a wholly owned subsidiary of the ARLP Partnership.

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Following the closing, we hold 100% of the non-economic general partner interests in AllDale III & IV, a 46.92% limited partner interest in AllDale III, and a 78.57% limited partner interest in AllDale IV while the Craft Related Parties hold a 53.08% limited partner interest in AllDale III and a 21.43% limited parter interest in AllDale IV.

**18.**INCOME TAXES

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Components of income tax expense are as follows:

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The effective income tax rates for our income tax expense for the three and six months ended June 30, 2026 and 2025 are less than the federal statutory rate, primarily due to the portion of income not subject to income taxes.

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Our 2020 through 2025 tax years remain open to examination by tax authorities, and lower-tier partnership income tax returns for the tax years ended December 31, 2020 and 2021 are being audited by the Internal Revenue Service.

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19**.**EARNINGS PER LIMITED PARTNER UNIT

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We utilize the two-class method in calculating basic and diluted earnings per limited partner unit (“EPU”). Net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities. Our participating securities represent outstanding restricted unit awards under our LTIP.

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The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU:

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(1) Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. For the three and six months ended June 30, 2026, participating securities of 495 and 582, respectively, were considered anti-dilutive under the treasury stock method. For the three and six months ended June

30, 2025, participating securities of 605 and 715, respectively, were considered anti-dilutive under the treasury stock method.

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**20.**SEGMENT INFORMATION

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We operate in the United States as a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers as well as royalty income from oil & gas mineral interests located in key producing regions across the United States. We aggregate multiple operating segments into four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an “all other” category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. The two coal operations reportable segments include seven mining complexes operating in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal loading terminal on the Ohio River in Indiana. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests which are located primarily across premier basins and resource plays including the Permian, Anadarko, Bakken, and after the AllDale III & IV Acquisition on July 1, 2026, Haynesville. The operations within our Oil & Gas Royalties reportable segment primarily include receiving royalties and lease bonuses for our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties, which are either (a) leased to our mining complexes or (b) near our coal mining operations and external mining operations but not yet leased.

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The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View Coal, LLC mining complex, which includes the River View and Henderson County mines and (d) the Hamilton mining complex. The segment also includes activity associated with support services and our non-operating mining complexes.

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The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge, LLC mining complex and (c) the MC Mining, LLC mining complex.

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The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals through its consolidated subsidiaries and prior to the AllDale III & IV Acquisition on July 1, 2026, our equity method investment in AllDale III. See Note 3 – Variable Interest Entities and Note 4 – Acquisitions for more information.

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The Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties that are (a) leased to certain of our mining complexes in the Illinois Basin and Appalachia Basin or (b) located near our operations and external mining operations.

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Other, Corporate and Elimination includes marketing and administrative activities, certain of our subsidiaries, primarily consisting of Matrix Design Group, LLC, its subsidiaries, and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), Bitiki KY, LLC, which holds our crypto-mining activities (see Note 7 – Digital Assets), our non-oil & gas equity investments (see Note 3 – Variable Interest Entities and Note 9 – Investments), Wildcat Insurance, LLC which assists the ARLP Partnership with its insurance requirements, and AROP Funding and Alliance Finance (both discussed in Note 10 – Long-Term Debt). The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations’ mines.

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Reportable segment results are presented below.

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(1) The following is a reconciliation of our total segment revenues to total consolidated revenues:

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Revenues included in Other, Corporate and Elimination are attributable to intercompany eliminations, which are primarily intercompany coal royalties eliminations, outside revenues at the Matrix Group and other outside miscellaneous sales and revenue activities.

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(2) Segment Adjusted EBITDA Expense includes operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations. Segment Adjusted EBITDA Expense is used as a financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses.

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(3) Other segment items include:

Oil & Gas Royalties – equity method investment income from AllDale III and income allocated to noncontrolling interest

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(4) Segment Adjusted EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses adjusted for certain items that we characterize as unrepresentative of our ongoing operations. Segment Adjusted EBITDA is used as a financial measure by Mr. Craft, who is also our chief operating decision maker (“CODM”), other management and by external users of our financial statements such as investors, commercial banks, research analysts and others. Our CODM uses Segment Adjusted EBITDA in assessing segment performance and deciding how to allocate resources. Segment Adjusted EBITDA provides useful information to our CODM and investors regarding our performance and results of operations because Segment Adjusted EBITDA (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions, (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations and (iv) allows our CODM and management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments.

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The following is a reconciliation of total Segment Adjusted EBITDA for our segments to consolidated income before income taxes:

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Other, Corporate and Elimination profit (loss) represents profit (loss) from operating segments below the quantitative thresholds when determining our reportable segments as well as the elimination of intersegment profit (loss) between our reportable segments. The operating segments included are those described as part of our Other, Corporate and Eliminations category.

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(5) The following is a reconciliation of our total segment assets to total consolidated assets:

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(6) Capital expenditures excludes $15.1 million and $31.3 million paid towards oil & gas reserve acquisitions for the three and six months ended June 30, 2026, respectively, and $2.7 million paid towards oil & gas reserve acquisitions for the six months ended June 30, 2025.

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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Significant relationships referenced in this management’s discussion and analysis of financial condition and results of operations include the following:

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• References to “we,” “us,” “our” or “ARLP Partnership” mean the business and operations of Alliance Resource Partners, L.P., the parent company, as well as its consolidated subsidiaries.
• References to “ARLP” mean Alliance Resource Partners, L.P., individually as the parent company, and not on a consolidated basis.
• References to “MGP” mean Alliance Resource Management GP, LLC, ARLP’s general partner.
• References to “Mr. Craft” mean Joseph W. Craft III, the Chairman, President and Chief Executive Officer of MGP.
• References to “Intermediate Partnership” mean Alliance Resource Operating Partners, L.P., the intermediate partnership of Alliance Resource Partners, L.P.
• References to “Alliance Coal” mean Alliance Coal, LLC, an indirect wholly owned subsidiary of ARLP.
• References to “Alliance Minerals” mean Alliance Minerals, LLC, an indirect wholly owned subsidiary of ARLP.
• References to “Alliance Resource Properties” mean Alliance Resource Properties, LLC, an indirect wholly owned subsidiary of ARLP.

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Summary

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We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in key producing regions across the United States. Our core objective is to maximize the value of our mineral asset base—both through coal production from our mining operations and through the leasing and development of our coal and oil & gas mineral interests. Our strategy is to provide reliable, baseload fuel for electricity generating customers while positioning the Partnership for long-term growth through investments in energy related technologies and infrastructure. Leveraging our relationships with electric utilities, industrial customers, and government partners, we intend to pursue strategic opportunities that complement our operational strengths. We believe our diverse resource portfolio and targeted investments will continue to create long-term value for our unitholders.

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We are the second largest coal producer in the eastern United States and as of June 30, 2026, we operated seven underground mining complexes across Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia and a coal-loading terminal on the Ohio River in Indiana. We manage and report our coal operations under two regions, Illinois Basin and Appalachia. We market our coal production to major domestic and international utilities and industrial customers.

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We also own mineral and royalty interests across premier basins and resource plays in the United States including the Permian, Anadarko, Bakken, and after the AllDale III & IV Acquisition on July 1, 2026, Haynesville. We market our oil & gas mineral interests for lease to operators in those regions and generate royalty income from their development of those mineral interests. Please read “Item 1. Financial Statements (Unaudited) – Note 3 – Variable Interest Entities, Note 4 – Acquisitions and Note 17. – Related Party Transactions” for more information on the AllDale III & IV Acquisition.

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We also hold coal mineral reserves and resources in Illinois, Indiana, Kentucky, Pennsylvania and West Virginia. Substantially all of our coal mineral resources and a majority of our coal mineral reserves are owned or leased by Alliance Resource Properties, which are (a) leased or subleased to our mining complexes or (b) near other internal and external coal mining operations but not yet leased. We generate intercompany royalty income through the leasing and development of our coal mineral reserves and resources.

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Beyond our core mineral platform, we have invested in growth-oriented businesses and energy-related technologies. Our subsidiaries, Matrix Design Group, LLC (and its subsidiaries), and Alliance Design Group, LLC (collectively referred to as "Matrix Group"), develop and market industrial, mining and technology products and services worldwide and our subsidiary, Bitiki KY, LLC (“Bitiki”), mines bitcoin. We have also made investments in emerging energy and infrastructure opportunities, including Infinitum Electric, Inc. (“Infinitum”), NGP Energy Transition IV, L.P. (“NGP ET IV”) and Gavin Generation Holdings A, LP (“Gavin Generation”).

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We have four reportable segments, Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an “all other” category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests. Our Coal Royalties reportable segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties.

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• Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View Coal, LLC (“River View”) mining complex, which includes the River View and Henderson County mines and (d) the Hamilton County Coal, LLC (“Hamilton”) mining complex. The segment also includes activity associated with support services and our non-operating mining complexes.

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• Appalachia Coal Operations reportable segment includes (a) the Mettiki Coal, LLC and Mettiki Coal (WV), LLC (collectively, “Mettiki”) mining complex, (b) the Tunnel Ridge, LLC (“Tunnel Ridge”) mining complex and (c) the MC Mining, LLC mining complex.

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• Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals through its consolidated subsidiaries and prior to the AllDale III & IV Acquisition on July 1, 2026, our equity method investment in AllDale III. Please read “Item 1. Financial Statements (Unaudited) – Note 3 – Variable Interest Entities, Note 4 – Acquisitions and Note 17 – Related Party Transactions” for more information on the AllDale III & IV Acquisition.

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• Coal Royalties reportable segment includes substantially all of our coal mineral resources and the majority of our coal mineral reserves owned or leased by Alliance Resource Properties.

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• Other, Corporate and Elimination includes marketing and administrative activities, certain of our subsidiaries, primarily consisting of Matrix Group, Bitiki, which holds our crypto-mining activities, our non oil & gas equity and debt investments, Wildcat Insurance, LLC, which assists the ARLP Partnership with its insurance requirements, AROP Funding, LLC (“AROP Funding”) and Alliance Resource Finance Corporation (“Alliance Finance”), and other miscellaneous activities. The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations’ mines. Please read “Item 1. Financial Statements (Unaudited) – Note 3 – Variable Interest Entities, Note 9 – Investments, and Note 8 – Long-Term Debt” for more information on our investments in Infinitum, Gavin Generation, and NGP ET IV as well as AROP Funding and Alliance Finance.

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Recent Developments

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During the six months ended June 30, 2026, we acquired 881 oil & gas net royalty acres through a series of transactions in the Permian Basin for an aggregate cash purchase price of $22.0 million which was funded with cash on hand. The interests include royalty interests in both developed properties and undeveloped properties. Please see “Item 1. Financial Statements (Unaudited) – Note 4 – Acquisitions” for additional information.

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Prior to January 29, 2026, certain of the coal mined and to be mined by Tunnel Ridge had been leased from the Craft Foundations. On January 29, 2026, we purchased all of the ownership interests in these coal reserves together with surface rights from the Craft Foundations for an aggregate $15.5 million. Please see “Item 1. Financial Statements (Unaudited) – Note 17 – Related-Party Transactions” for additional information.

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In January 2026, we announced our decision to cease longwall production at our Mettiki mining complex due to a series of planned and unplanned outages at a key customer’s plant. While limited coal production is ongoing with continuous mining units, we continue to evaluate options concerning the mine’s future. Please see “Item 1. Financial Statements (Unaudited) – Note 8 – Long-Lived Asset Impairment” for additional information.

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On July 1, 2026, we completed the acquisition of certain general partner and limited partner interests in AllDale III & IV for approximately $206.2 million. The AllDale III & IV Acquisition expands and diversifies our portfolio of mineral and royalty interests through the added control of approximately 48,500 net royalty acres across premier basins

and resource plays including the Permian, Anadarko, Bakken and Haynesville. ARLP funded the acquisition using a combination of cash on hand, borrowings under its revolving credit facility, and a new $150.0 million term loan at Alliance Minerals.

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Risks and Uncertainties

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We face a variety of risks and uncertainties that management considers in the operation and planning of our businesses, which could affect our financial position and results of operations. For additional information regarding our risks and uncertainties that affect our business and the industries in which we operate, see “Item 1A. Risk Factors” herein and in our Annual Report on Form 10-K for the year ended December 31, 2025.

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How We Evaluate Our Performance

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Our management uses a variety of financial and operational measurements to analyze our performance. Primary measurements include the following: (1) coal volumes; (2) coal sales; (3) oil & gas volumes; (4) oil & gas royalties; (5) intercompany coal royalties; (6) Segment Adjusted EBITDA Expense; and (7) Segment Adjusted EBITDA. Please see below and “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information.

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Analysis of Historical Results of Operations

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Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

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Consolidated Information

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(1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(2) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under “— Reconciliation of Non-GAAP Financial Measures.”

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Total Revenues

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Total revenues for the three months ended June 30, 2026 (“2026 Quarter”) increased 0.7% to $551.6 million compared to $547.5 million for the three months ended June 30, 2025 (“2025 Quarter”) as a result of record oil & gas royalty revenues, increased coal sales volumes and higher other revenues, partially offset by lower coal sales prices per ton.

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• Coal sales decreased to $469.5 million for the 2026 Quarter compared to $485.5 million for the 2025 Quarter. The decrease was attributable to lower average coal sales prices, which reduced coal sales by $26.1 million, partially offset by higher tons sold, which increased coal sales by $10.2 million. Coal sales price per ton decreased by 5.3% as a result of lower domestic price realizations at several mines resulting from the continued roll-off of

higher-priced legacy contracts. Higher coal sales volumes were primarily driven by increased volumes at our River View and Tunnel Ridge operations due to improved recoveries and higher productivity.

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• Oil & gas royalties increased 30.5% to a record $46.3 million for the 2026 Quarter compared to $35.5 million for the 2025 Quarter. The increase was due to higher average sales prices, which increased 22.7%, and improved oil & gas royalty volumes, partially offset by higher expenses. Oil & gas royalty volumes increased 6.4% compared to the 2025 Quarter as a result of increased drilling and completion activities on our acreage combined with additional volumes from oil & gas mineral interests acquired.

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• Other revenues increased to $28.2 million for the 2026 Quarter compared to $18.0 million for the 2025 Quarter. The increase was due to higher miscellaneous sales and revenue activities in our Appalachian segment.

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Segment Adjusted EBITDA Expense

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Segment Adjusted EBITDA Expense decreased 3.8% to $340.0 million for the 2026 Quarter compared to $353.5 million for the 2025 Quarter primarily due to decreased expenses at our coal operations. Segment Adjusted EBITDA Expense for our coal operations decreased 4.3% to $331.0 million due to lower per ton costs, partially offset by higher coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 6.3% to $38.68 per ton sold in the 2026 Quarter compared to $41.27 per ton in the 2025 Quarter, primarily due to increased production at several mines as well as the following per ton cost decreases:

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• Labor and benefit expenses per ton produced decreased 5.1% to $14.47 per ton in the 2026 Quarter from $15.24 per ton in the 2025 Quarter. The decrease of $0.77 per ton was primarily due to lower labor costs at several mines and decreased workers’ compensation accruals.

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• Material and supplies expenses per ton produced decreased 10.0% to $12.16 per ton in the 2026 Quarter from $13.51 per ton in the 2025 Quarter. The decrease of $1.35 per ton produced primarily reflects decreases of $0.63 per ton for miscellaneous materials and supplies, $0.26 per ton for ventilation related expenses, $0.24 per ton for electrical expenses, and $0.21 per ton for various preparation plant expenses, partially offset by an increase of $0.36 per ton for roof support.

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• Maintenance expenses per ton produced decreased 5.2% to $4.40 per ton in the 2026 Quarter from $4.64 per ton in the 2025 Quarter. The decrease of $0.24 per ton produced was primarily a result of lower maintenance costs at several mines.

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• Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes decreased $0.40 per produced ton sold in the 2026 Quarter compared to the 2025 Quarter primarily resulting from lower coal sales prices, partially offset by an unfavorable mix of tons sold that were mined in states with severance taxes.

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• We had no sales of outside coal purchases in the 2026 Quarter compared to $7.2 million in the 2025 Quarter. Thus, costs per ton in the 2026 Quarter decreased as the cost of our produced coal is generally lower on a per ton basis than outside coal purchases.

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General and administrative

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General and administrative expenses for the 2026 Quarter increased to $25.8 million compared to $20.4 million in the 2025 Quarter. The increase of $5.4 million was primarily due to higher incentive compensation expenses and increased outside services.

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Equity method investment income (loss)

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Equity method investment income was $9.5 million in the 2026 Quarter compared to a loss of $1.5 million in the 2025 Quarter. The change was primarily due to an increase in the value of our share of the net assets of Gavin Generation and NGP ET IV.

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Change in fair value of digital assets

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The fair value adjustment on our digital assets decreased by $19.2 million for the 2026 Quarter compared to the 2025 Quarter reflecting movement in the price of bitcoin.

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Impairment loss on investments

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During the 2025 Quarter, we recorded a $25.0 million impairment on our equity investment in Ascend. Please read “Item 1. Financial Statements (Unaudited) – Note 9 – Investments” for more information.

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Net income attributable to ARLP

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Net income attributable to ARLP for the 2026 Quarter increased 33.9% to $79.6 million, or $0.61 per basic and diluted limited partner unit, compared to $59.4 million, or $0.46 per basic and diluted limited partner unit for the 2025 Quarter, primarily as a result of higher total revenues and equity method investment income as well as the impact of the impairment loss on investments in the 2025 Quarter.

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Segment Adjusted EBITDA

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Our 2026 Quarter Segment Adjusted EBITDA increased 16.0% to $211.5 million from the 2025 Quarter Segment Adjusted EBITDA of $182.3 million.

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Segment Information

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n/m - Percentage change not meaningful.

(1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(2) Represents tons sold by our Coal Operations segments associated with coal reserves leased from our Coal Royalties segment.

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Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 8.8% to $104.2 million in the 2026 Quarter from $114.2 million in the 2025 Quarter. The decrease of $10.0 million was primarily attributable to lower average coal sales volumes. Tons sold decreased by 4.5% compared to the 2025 Quarter due primarily to decreased sales volumes from our Hamilton mine as a result of a planned extended longwall move during the 2026 Quarter, partially offset by a strong sales performance and productivity at our River View complex. Segment Adjusted EBITDA Expense decreased to $229.2 million in the 2026 Quarter from $231.2 million in the 2025 Quarter, primarily as a result of reduced volumes, partially offset by increased operating expenses per ton. Segment Adjusted EBITDA Expense per ton increased by 3.7% compared to the 2025 Quarter due primarily to the planned extended longwall move at our Hamilton mine during the 2026 Quarter.

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Appalachia Coal Operations – Segment Adjusted EBITDA increased 67.2% to $49.2 million for the 2026 Quarter from $29.4 million in the 2025 Quarter. The increase of $19.8 million was primarily attributable to reduced operating expenses and higher other revenues, partially offset by lower coal sales. The decrease in coal sales primarily reflects lower coal sales prices, which decreased by 22.9% compared to the 2025 Quarter primarily due to an increased sales mix of lower priced Tunnel Ridge sales volumes in the 2026 Quarter and reduced sales price per ton at Mettiki. Partially offsetting lower coal sales prices, coal sales volumes increased 27.6% compared to the 2025 Quarter primarily as a result of increased production at Tunnel Ridge due to improved recoveries and higher productivity. Other revenues increased by $10.6 million in the 2026 Quarter reflecting higher miscellaneous revenue activities. Segment Adjusted EBITDA Expense decreased 10.2% to $101.3 million in the 2026 Quarter from $112.8 million in the 2025 Quarter due primarily to lower per ton expenses, partially offset by increased sales volumes. Segment Adjusted EBITDA Expense per ton for the 2026 Quarter decreased by 29.7% compared to the 2025 Quarter as a result of increased production at our Tunnel Ridge operation.

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Oil & Gas Royalties – Segment Adjusted EBITDA increased to a record $38.0 million in the 2026 Quarter compared to $29.9 million in the 2025 Quarter primarily due to higher average sales prices, which increased 22.7%, partially offset by higher expenses. Oil & gas royalty volumes increased 6.4% compared to the 2025 Quarter as a result of increased drilling and completion activities on our acreage combined with additional volumes from oil & gas mineral interests acquired.

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Coal Royalties – Segment Adjusted EBITDA increased to $13.0 million in the 2026 Quarter compared to $11.8 million in the 2025 Quarter due to higher royalty tons sold, primarily from Tunnel Ridge and River View, partially offset by higher expenses.

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Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

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Consolidated Information

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(1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(2) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under “— Reconciliation of Non-GAAP Financial Measures.”

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Total Revenues

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Total revenues for the six months ended June 30, 2026 (“2026 Period”) decreased 1.9% to $1.07 billion compared to $1.09 billion for the six months ended June 30, 2025 (“2025 Period”) primarily due to lower coal sales, partially offset by record oil & gas royalty revenues.

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• Coal sales decreased to $912.8 million for the 2026 Period compared to $954.0 million for the 2025 Period. The decrease was attributable to lower average coal sales prices, which reduced coal sales by $56.8 million, partially offset by higher tons sold, which increased coal sales by $15.7 million. Coal sales price per ton decreased by 5.9% as a result of lower domestic price realizations at several mines resulting from the continued roll-off of higher-priced legacy contracts. Higher coal sales volumes were primarily driven by increased volumes at our River View and Tunnel Ridge operations due to improved recoveries and higher productivity, partially offset by decreased sales volumes from our Hamilton mine as a result of a planned extended longwall move during the 2026 Period.

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• Oil & gas royalties increased 22.5% to $87.6 million for the 2026 Period compared to $71.6 million for the 2025 Period. The increase was due to record oil & gas royalty volumes, which increased 11.3%, as a result of increased drilling and completion activities on our interests and acquisitions of additional oil & gas mineral interests, and higher average sales prices, which increased 10.1%.

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Segment Adjusted EBITDA Expense

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Segment Adjusted EBITDA Expense decreased 4.1% to $671.0 million for the 2026 Period compared to $699.6 million for the 2025 Period primarily due to decreased expenses at our coal operations and a $6.5 million benefit from the correction of black lung actuarial assumptions during the 2026 Period.

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Segment Adjusted EBITDA Expense for our coal operations decreased 3.2% to $656.6 million due to lower per ton costs, partially offset by higher coal sales volumes. Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 4.7% to $39.99 per ton sold in the 2026 Period compared to $41.98 per ton in the 2025 Period, primarily due to increased production at several mines as well as the following per ton cost decreases:

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• Labor and benefit expenses per ton produced decreased 2.3% to $14.84 per ton in the 2026 Period from $15.19 per ton in the 2025 Quarter. The decrease of $0.35 per ton was primarily due to lower labor costs at several mines and decreased workers’ compensation accruals.

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• Maintenance expenses per ton produced decreased 5.1% to $4.51 per ton in the 2026 Period from $4.75 per ton in the 2025 Period. The decrease of $0.24 per ton produced was primarily a result of lower maintenance costs at several mines.

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• Production taxes and royalty expenses per ton incurred as a percentage of coal sales prices and volumes decreased $0.26 per produced ton sold in the 2026 Period compared to the 2025 Period primarily resulting from lower coal sales prices, partially offset by an unfavorable mix of tons sold that were mined in states with severance taxes.

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• We had no sales of outside coal purchases in the 2026 Period compared to $14.5 million in the 2025 Period. Thus, costs per ton in the 2026 Period decreased as the cost of our produced coal is generally lower on a per ton basis than outside coal purchases.

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Depreciation, depletion and amortization

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Depreciation, depletion and amortization expense increased to $163.6 million for the 2026 Period compared to $145.0 million for the 2025 Period primarily as a result of new mine infrastructure and equipment placed in service during the second half of 2025 at our Hamilton and River View operations as well as increased sales volumes in the 2026 Period.

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Asset impairments

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During the 2026 Period, we recorded $37.8 million of non-cash asset impairment charges due to our decision to cease longwall production at our Mettiki mining complex, along with uncertainty regarding future longwall production resumption and our evaluation of potential operation scenarios. Please read "Item 1. Financial Statements (Unaudited) – Note 8 – Long-Lived Asset Impairments."

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Equity method investment income (loss)

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Equity method investment income was $13.8 million in the 2026 Period compared to a loss of $3.5 million in the 2025 Period. The change was primarily due to an increase in the value of our share of the net assets of Gavin Generation and NGP ET IV.

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Change in fair value of digital assets

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The fair value adjustment on our digital assets decreased by $25.3 million for the 2026 Period compared to the 2025 Period reflecting movement in the price of bitcoin.

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Impairment loss on investments

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During the 2025 Period, we recorded a $25.0 million impairment on our equity investment in Ascend. Please read “Item 1. Financial Statements (Unaudited) – Note 9 – Investments” for more information.

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Net income attributable to ARLP

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Net income attributable to ARLP for the 2026 Period decreased 33.5% to $88.7 million, or $0.68 per basic and diluted limited partner unit, compared to $133.4 million, or $1.03 per basic and diluted limited partner unit for the 2025 Period, primarily as a result of lower revenues, higher depreciation, a decrease in the fair value of our digital assets, and the non-cash asset impairment charges at Mettiki, partially offset by the $25.0 million impairment loss on investments in the 2025 Period, higher equity method investment income and lower outside coal purchases.

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Segment Adjusted EBITDA

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Our 2026 Period Segment Adjusted EBITDA increased 7.6% to $390.6 million from the 2025 Period Segment Adjusted EBITDA of $362.8 million.

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Segment Information

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n/m - Percentage change not meaningful.

(1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).

(2) Represents tons sold by our Coal Operations segments associated with coal reserves leased from our Coal Royalties segment.

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Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 15.4% to $203.4 million in the 2026 Period from $240.4 million in the 2025 Period. The decrease of $37.0 million was primarily attributable to lower coal sales. The decrease in coal sales reflects lower coal sales prices, which decreased by 3.4% compared to the 2025 Period as a result of the expiration of higher priced legacy contracts, and decreased coal sales volumes. Tons sold decreased by 2.1% compared to the 2025 Period due primarily to decreased sales volumes from our Hamilton mine as a result of the planned extended longwall move during the 2026 Period, partially offset by a strong sales performance and productivity at our River View complex. Segment Adjusted EBITDA Expense remained comparable to the 2025 Period as reduced sales volumes substantially offset higher per ton costs. Segment Adjusted EBITDA Expense per ton increased by 2.6% compared to the 2025 Period due primarily to the planned extended longwall move at our Hamilton mine during the 2026 Period.

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Appalachia Coal Operations – Segment Adjusted EBITDA increased 67.4% to $75.4 million for the 2026 Period from $45.0 million in the 2025 Period. The increase of $30.4 million was primarily attributable to reduced operating expenses and higher other revenues, partially offset by lower coal sales. The decrease in coal sales primarily reflects lower coal sales prices, which decreased by 14.8% compared to the 2025 Period primarily due to an increased sales mix of lower priced Tunnel Ridge sales volumes in the 2026 Period and reduced sales price per ton at Mettiki. Partially offsetting lower coal sales prices, coal sales volumes increased 15.6% compared to the 2025 Period primarily as a result of increased production at Tunnel Ridge due to improved recoveries, higher productivity, and fewer longwall move days during the

2026 Period. Other revenues increased by $13.8 million in the 2026 Period reflecting higher miscellaneous revenue activities. Segment Adjusted EBITDA Expense decreased 8.9% to $212.7 million in the 2026 Period from $233.4 million in the 2025 Period due primarily to lower per ton expenses, partially offset by increased sales volumes. Segment Adjusted EBITDA Expense per ton for the 2026 Period decreased by 21.1% compared to the 2025 Period as a result of increased production at our Tunnel Ridge operation.

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Oil & Gas Royalties – Segment Adjusted EBITDA increased to a record $72.6 million in the 2026 Period compared to $59.8 million in the 2025 Period due to record oil & gas royalty volumes, which increased 11.3% as a result of increased drilling and completion activities on our interests and acquisitions of additional oil & gas mineral interests, and higher average sales prices, which increased 10.1% compared to the 2025 Period.

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Coal Royalties – Segment Adjusted EBITDA increased to $25.2 million in the 2026 Period compared to $21.2 million in the 2025 Period due to higher royalty tons sold, primarily from Tunnel Ridge and River View, partially offset by lower average royalty rates per ton received from the Partnership’s mining subsidiaries.

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Reconciliation of Non-GAAP Financial Measures

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Segment Adjusted EBITDA

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We define Segment Adjusted EBITDA (a non-GAAP financial measure) as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses adjusted for certain items that we characterize as unrepresentative of our ongoing operations. Segment Adjusted EBITDA is a key component of consolidated Adjusted EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others. We believe that the presentation of consolidated Adjusted EBITDA provides useful information to investors regarding our performance and results of operations because Adjusted EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations.

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Segment Adjusted EBITDA is also used as a supplemental measure by our management for reasons similar to those stated in the previous explanation of Adjusted EBITDA. In addition, the exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments.

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The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA:

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Segment Adjusted EBITDA Expense

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We define Segment Adjusted EBITDA Expense (a non-GAAP financial measure) as the sum of operating expenses, coal purchases and other income or expenses as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations. Transportation expenses are excluded as these expenses are passed through to our customers and, consequently, we do not realize any gain or loss on transportation revenues. Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. We also review Segment Adjusted EBITDA Expense on a per ton basis for cost trends at our coal operations by dividing Segment Adjusted EBITDA expense by coal sales volumes.

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The following is a reconciliation of operating expenses, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense:

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Liquidity and Capital Resources

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Liquidity

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We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions. We believe that existing cash balances, future cash flows from operations and investments, borrowings under credit facilities and cash provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, contractual obligations, commitments and distribution payments. Nevertheless, our ability to satisfy our working capital requirements and additional investments, to satisfy our contractual obligations, to fund planned capital expenditures, to service our debt obligations or to pay distributions will depend upon our future operating performance and access to and cost of financing sources, which will be affected by prevailing economic conditions generally, and in both the coal and oil & gas industries specifically, as well as other financial and business factors, some of which are beyond our control. Based on our recent operating cash flow results, current cash position, anticipated future cash flows and sources of financing that we expect to have available, we anticipate being in compliance with the covenants of our credit agreements and expect to have sufficient liquidity to fund our operations and growth strategies. However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future covenant compliance or liquidity may be adversely affected. Please read “Item 1A. Risk Factors” herein and in our Annual Report on Form 10-K for the year ended December 31, 2025.

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Unit Repurchase Program

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We have $80.6 million remaining authorized under our unit repurchase program as of June 30, 2026. No units were repurchased during the six months ended June 30, 2026. The program has no time limit and we may repurchase units from time to time in the open market or in other privately negotiated transactions. The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units. The timing of any future unit repurchases and the ultimate number of units to be purchased will depend on several factors, including business and market conditions, our future financial performance, and other capital priorities. Please read “Part II - Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” of this Quarterly Report on Form 10-Q for more information on the unit repurchase program.

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Accounts Receivable Securitization

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In January 2026, we extended the term of the accounts receivable securitization facility (the “Securitization Facility”) to January 2027. The borrowing availability under the facility is a maximum of $75.0 million. For additional information on the Securitization Facility, please see “Item 1. Financial Statements (Unaudited) – Note 10 – Long-Term Debt.”

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Alliance Minerals Term Loan

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On July 1, 2026, Alliance Minerals, as borrower, entered into a term loan for an aggregate principal amount of $150.0 million (the “Alliance Minerals Term Loan”). The Alliance Minerals Term Loan matures on January 1, 2028. For additional information on the Alliance Minerals Term Loan, please see “Item 1. Financial Statements (Unaudited) – Note 10 – Long-Term Debt.”

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AllDale III & IV Acquisition

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On July 1, 2026, we completed the AllDale III & IV Acquisition for approximately $206.2 million, which was funded using a combination of cash on hand, borrowings under our revolving credit facility and proceeds from the Alliance Minerals Term Loan.

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Cash Flows

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Cash provided by operating activities was $258.5 million for the 2026 Period compared to $297.4 million for the 2025 Period. The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and unfavorable working capital changes primarily related to trade and other receivables. These

decreases were partially offset by favorable working capital changes primarily related to inventories and other miscellaneous changes compared to the 2025 Period.

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           Net cash used in investing activities was $181.2 million for the 2026 Period compared to $168.3 million for the 2025 Period. The increase in cash used in investing activities was primarily due to increased oil & gas reserve acquisitions in the 2026 Period as compared to the 2025 Period. This increase was partially offset by decrease in accounts payable and accrued liabilities and reduced capital expenditure during the 2026 Period.

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Net cash used in financing activities was $37.4 million for the 2026 Period compared to $211.2 million for the 2025 Period. The decrease in cash used in financing activities was primarily attributable to increased borrowings under both the revolving credit facility and Securitization Facility and reduced distributions paid to partners in the 2026 Period as compared to the 2025 Period. These decreases were partially offset by increased payments on the revolving credit facility and Securitization Facility in the 2026 Period compared to the 2025 Period.

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Cash Requirements

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Management anticipates having sufficient cash flow to meet 2026 cash requirements, including capital expenditures, acquisitions of oil & gas mineral interests, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis costs, with our June 30, 2026 cash and cash equivalents of $111.2 million, cash flows from operations, or borrowings under our revolving credit facility and Securitization Facility, if necessary. We project average estimated annual maintenance capital expenditures over the next five years of approximately $7.23 per ton produced. Our anticipated total capital expenditures, including maintenance capital expenditures, for 2026 are estimated in the range of $280.0 million to $300.0 million. We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital. The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations.

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Debt Obligations

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See “Item 1. Financial Statements (Unaudited) – Note 10 – Long-Term Debt” of this Quarterly Report on Form 10-Q for a discussion of our long-term debt obligations.

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We also have an agreement with a bank to provide additional letters of credit in the amount of $5.0 million to maintain surety bonds to secure certain asset retirement obligations and our obligations for workers’ compensation benefits. On June 30, 2026, we had $5.0 million in letters of credit outstanding under this agreement.

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Related-Party Transactions

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We have related-party transactions and activities with Mr. Craft, MGP and their respective affiliates as well as other related parties. These related-party transactions and activities relate principally to (1) an installment purchase obligation with The Joseph W. Craft III Foundation resulting from our January 2026 acquisition of ownership interests in certain coal reserves and associated surface rights that we had previously been leasing from The Joseph W. Craft III Foundation and The Kathleen S. Craft Foundation, (2) the use of aircraft, (3) master supply and services agreements for the purchase and servicing of electronic components and other parts used in mining equipment, and (4) contribution and exchange agreements entered with related parties of Mr. Craft in connection with the AllDale III & IV Acquisition on July 1, 2026. We also have related-party transactions with (a) WKY CoalPlay LLC, a company owned by entities related to Mr. Craft, regarding three mineral leases, and (b) entities in which we hold equity investments. For more information, please read “Item 1. Financial Statements (Unaudited) – Note 9 – Investments, Note 10 – Long-Term Debt and Note 17 – Related-Party Transactions” of this Quarterly Report on Form 10-Q. Please read our Annual Report on Form 10-K for the year ended December 31, 2025, “Item 8. Financial Statements and Supplementary Data—Note 21 – Related-Party Transactions” for additional information concerning related-party transactions.

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New Accounting Standards

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See “Item 1. Financial Statements (Unaudited) – Note 2. New Accounting Standards” of this Quarterly Report on Form 10-Q for a discussion of new accounting standards.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Commodity Price Risk

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We have significant long-term sales contracts. Many of the long-term sales contracts are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both.

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Our results of operations are highly dependent upon the prices we receive for our coal, oil and natural gas. Regarding coal, the short-term sales contracts favored by some of our coal customers leave us more exposed to risks of declining coal price periods. Also, a significant change in oil & gas prices would have a significant impact on our oil & gas royalty revenues.

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We have exposure to coal and oil & gas sales prices and price risk for supplies that are used directly or indirectly in the normal course of coal and oil & gas production such as electricity, steel and other supplies. We manage our risk for these items through strategic sourcing contracts for normal quantities required by our operations. Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks but may do so in the future.

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Credit Risk

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Most of our coal is sold to U.S. electric utilities or into the international markets through brokered transactions. Therefore, our credit risk is primarily with domestic electric power generators and reputable global brokerage firms. Our policy is to independently evaluate each customer’s creditworthiness prior to entering into transactions and to constantly monitor outstanding accounts receivable. When deemed appropriate by our credit management department, we will take steps to reduce our credit exposure to customers that do not meet our credit standards or whose credit has deteriorated. These steps may include obtaining letters of credit or cash collateral, requiring prepayments for shipments or establishing customer trust accounts held for our benefit in the event of a failure to pay. Such credit risks from customers may impact the borrowing capacity of our Securitization Facility. See “Item 1. Financial Statements (Unaudited) – Note 10 – Long-Term Debt” of this Quarterly Report on Form 10-Q for more information on our Securitization Facility.

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Exchange Rate Risk

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The majority of our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks. However, because we periodically sell our coal internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign competitors with a competitive advantage. If our competitors’ currencies decline against the United States dollar or against foreign purchasers’ local currencies, those competitors may be able to offer lower prices for coal to these purchasers. Furthermore, if the currencies of overseas purchasers were to significantly decline in value in comparison to the United States dollar, those purchasers may seek decreased prices for the coal we sell to them. Consequently, currency fluctuations could adversely affect the competitiveness of our coal in international markets.

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Interest Rate Risk

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Borrowings under our revolving credit facility and related term loan, Securitization Facility and Alliance Minerals Term Loan are at variable rates and, as a result, we have interest rate exposure on any amounts drawn under these facilities. Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt. We had $24.6 million in borrowings under Alliance Coal Term Loan at June 30, 2026. We had $78.5 million outstanding under the revolving credit facility and $56.0 million outstanding under the Securitization Facility at June 30, 2026.

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There were no other changes in our quantitative and qualitative disclosures about market risk as set forth in our Annual Report on Form 10-K for the year ended December 31, 2025.

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ITEM 4.CONTROLS AND PROCEDURES

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We maintain controls and procedures designed to provide reasonable assurance that information required to be disclosed in the reports we file with the Securities and Exchange Commission (“SEC”) is recorded, processed, summarized

and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we have evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Exchange Act) as of June 30, 2026. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these controls and procedures are effective as of June 30, 2026.

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On April 1, 2026, we implemented a new enterprise resource planning system on a partnership-wide basis. We will continue to evaluate and test control changes in order to provide certification on the effectiveness, in all material respects, of our internal control over financial reporting for the year ending December 31, 2026.

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Other than as set forth above, there have not been any changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with our evaluation that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarterly period ended June 30, 2026.

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• this Quarterly Report on Form 10-Q;

PART II

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OTHER INFORMATION

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ITEM 1.LEGAL PROCEEDINGS

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The information in Note 13. Contingencies to the Unaudited Condensed Consolidated Financial Statements included in "Part I. Item 1. Financial Statements (Unaudited)" of this Quarterly Report on Form 10-Q herein is hereby incorporated by reference. See also "Item 3. Legal Proceedings" of our Annual Report on Form 10-K for the year ended December 31, 2025.

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ITEM 1A.RISK FACTORS

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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I - Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or future results. The risks described in these reports are not our only risks. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial based on current knowledge and factual circumstances, if such knowledge or facts change, also may materially adversely affect our business, financial condition and/or operating results in the future.

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ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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In January 2023, the board of directors authorized us to repurchase up to a total of $100.0 million of ARLP common units from that date. We have $80.6 million remaining authorized under our unit repurchase program as of June 30, 2026. The unit repurchase program is intended to enhance ARLP’s ability to achieve its goal of creating long-term value for its unitholders and provides another means, along with quarterly cash distributions, of returning cash to unitholders. The program has no time limit and ARLP may repurchase units from time to time in the open market or in other privately negotiated transactions. The unit repurchase program authorization does not obligate ARLP to repurchase any dollar amount or number of units and repurchases may be commenced or suspended from time to time without prior notice.

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During the three months ended June 30, 2026, we did not repurchase and retire any units pursuant to the unit repurchase program. ARLP has had a unit repurchase program in place since May 31, 2018 and since its inception, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million.

​

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

​

None.

​

ITEM 4.MINE SAFETY DISCLOSURES

​

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this Quarterly Report on Form 10-Q.

​

ITEM 5.OTHER INFORMATION

​

During the three months ended June 30, 2026, no director or officer adopted or terminated (i) any contract, instructions or written plan for the purchase or sale of securities of the Partnership intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) and/or (ii) any written arrangement for the purchase or sale of securities of the Partnership that meets the definition of a non-Rule 10b5-1 trading arrangement as defined in Item 408(c).

​

ITEM 6.EXHIBITS

​

• Or furnished, in the case of Exhibits 32.1 and 32.2.

​

​

​ ​ ​

​ ALLIANCE RESOURCE PARTNERS, L.P.

​ ​

​ By: Alliance Resource Management GP, LLC

​ ​ its general partner

​ ​ ​

​ ​ /s/ Joseph W. Craft, III ​

​ ​ Joseph W. Craft, III

​ ​ Chairman, President and Chief Executive

​ ​ Officer, duly authorized to sign on behalf**of the registrant.

​ ​ ​

​ ​ ​

​ ​ /s/ Megan J. Cordle ​

​ ​ Megan J. Cordle

​ ​ Vice President, Controller and

​ ​ Chief Accounting Officer

​

​

​

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