ALLIANCE RESOURCE PARTNERS LP Earnings Per Share Disclosure
23.EARNINGS PER LIMITED PARTNER UNIT
We utilize the two-class method in calculating basic and diluted earnings per limited partner unit (“EPU”). Subsequent to the JC Resources Acquisition, 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. Prior to the JC Resources Acquisition, in addition to limited partners and participating securities allocations, amounts were also allocated to our general partner for historical earnings from the mineral interests acquired in the JC Resources Acquisition. Participating securities represent outstanding restricted unit awards under our LTIP. During 2024 and 2023, our participating securities also included phantom units in notional accounts under our SERP and Directors’ Deferred Compensation Plan. The SERP and Directors’ Deferred Compensation Plan were terminated and settled in December 2024 and no longer have participating securities that receive an allocation of income.
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.
Year Ended December 31, | ||||||||||
| 2025 | | 2024 | | 2023 | |||||
(in thousands, except per unit data) | ||||||||||
Net income attributable to ARLP | $ | 311,163 | $ | 360,855 | $ | 630,118 | ||||
Less: | ||||||||||
General partner's interest in net income attributable to ARLP |
| — |
| — |
| (1,384) | ||||
Limited partners' interest in net income attributable to ARLP |
| 311,163 |
| 360,855 |
| 628,734 | ||||
Less: | ||||||||||
Distributions to participating securities |
| (2,975) |
| (6,005) |
| (9,688) | ||||
Undistributed earnings attributable to participating securities |
| — |
| — |
| (7,203) | ||||
Net income attributable to ARLP available to limited partners | $ | 308,188 | $ | 354,850 | $ | 611,843 | ||||
Weighted-average limited partner units outstanding – basic and diluted |
| 128,388 |
| 127,965 |
| 127,180 | ||||
Earnings per limited partner unit - basic and diluted (1) | $ | 2.40 | $ | 2.77 | $ | 4.81 | ||||
| (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 years ended December 31, 2025, 2024 and 2023, participating securities of 719, 1,889 and 2,922, respectively, were considered anti-dilutive under the treasury stock method. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.