ALLIANCE RESOURCE PARTNERS LP Segments Disclosure
25.SEGMENT INFORMATION
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 in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins. 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 but not yet leased.
The Illinois Basin Coal Operations reportable segment includes (a) the Gibson County Coal, LLC’s mining complex, (b) the Warrior Coal, LLC mining complex, (c) the River View 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.
The Appalachia Coal Operations reportable segment includes (a) the Mettiki mining complex, (b) the Tunnel Ridge mining complex and, (c) the MC Mining mining complex.
The Oil & Gas Royalties reportable segment includes oil & gas mineral interests held by Alliance Minerals’ through its consolidated subsidiaries as well as equity interests held in AllDale III (Note 3 – Variable Interest Entities).
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.
Other, Corporate and Elimination includes marketing and administrative activities, Alliance Design and Alliance Service, Inc., including its subsidiaries (collectively, the “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 10 – Investments), Wildcat Insurance (which assists the ARLP Partnership with its insurance requirements), and AROP Funding and Alliance Finance (both discussed in Note 12 – 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.
Reportable segment results are presented below.
| Coal Operations | Royalties |
| |||||||||||||
Illinois | | | | |||||||||||||
| Basin | | Appalachia | | Oil & Gas | | Coal | | Total |
| ||||||
(in thousands) |
| |||||||||||||||
Year Ended December 31, 2025 | ||||||||||||||||
Revenues - Outside | $ | 1,376,162 | $ | 604,703 | $ | 139,556 | $ | — | $ | 2,120,421 | ||||||
Revenues - Intercompany | — | — | — | 80,471 | 80,471 | |||||||||||
Total revenues (1) | 1,376,162 | 604,703 | 139,556 | 80,471 | 2,200,892 | |||||||||||
Less: | ||||||||||||||||
Segment Adjusted EBITDA Expense (2) |
| 894,521 | 459,351 | 18,447 | 27,612 |
| 1,399,931 | |||||||||
Transportation expenses | 24,967 | 11,645 | — | — | 36,612 | |||||||||||
Other segment items (3) | — | — | 3,581 | — | 3,581 | |||||||||||
Segment Adjusted EBITDA (4) |
| 456,674 | 133,707 | 117,528 | 52,859 |
| 760,768 | |||||||||
Total assets (5) |
| 1,030,398 | 445,327 | 878,668 | 297,714 |
| 2,652,107 | |||||||||
Capital expenditures (6) |
| 183,583 | 71,159 | — | 312 |
| 255,054 | |||||||||
Year Ended December 31, 2024 | ||||||||||||||||
|
| |||||||||||||||
Revenues - Outside | $ | 1,496,143 | $ | 743,242 | $ | 139,136 | $ | 65 | $ | 2,378,586 | ||||||
Revenues - Intercompany | — | — | — | 69,676 | 69,676 | |||||||||||
Total revenues (1) | 1,496,143 | 743,242 | 139,136 | 69,741 | 2,448,262 | |||||||||||
Less: | ||||||||||||||||
Segment Adjusted EBITDA Expense (2) |
| 937,083 | 551,734 | 19,853 | 25,759 |
| 1,534,429 | |||||||||
Transportation expenses | 85,142 | 27,448 | — | — | 112,590 | |||||||||||
Other segment items (3) | — | — | 2,325 | — | 2,325 | |||||||||||
Segment Adjusted EBITDA (4) |
| 473,918 | 164,060 | 116,958 | 43,982 |
| 798,918 | |||||||||
Total assets (5) |
| 1,028,622 | 467,463 | 818,502 | 307,924 |
| 2,622,511 | |||||||||
Capital expenditures (6) |
| 301,591 | 109,315 | — | — |
| 410,906 | |||||||||
Year Ended December 31, 2023 | ||||||||||||||||
| ||||||||||||||||
Revenues - Outside | $ | 1,481,556 | $ | 883,334 | $ | 141,525 | $ | 42 | $ | 2,506,457 | ||||||
Revenues - Intercompany | — | — | — | 65,572 | 65,572 | |||||||||||
Total revenues (1) | 1,481,556 | 883,334 | 141,525 | 65,614 | 2,572,029 | |||||||||||
Less: | ||||||||||||||||
Segment Adjusted EBITDA Expense (2) |
| 861,288 |
| 516,471 |
| 16,532 |
| 24,451 |
| 1,418,742 | ||||||
Transportation expenses | 106,150 | 36,140 | — | — | 142,290 | |||||||||||
Other segment items (3) | — | — | 3,485 | — | 3,485 | |||||||||||
Segment Adjusted EBITDA (4) |
| 514,118 |
| 330,723 |
| 121,508 |
| 41,163 |
| 1,007,512 | ||||||
Total assets (5) |
| 966,102 |
| 488,427 |
| 781,184 |
| 315,592 |
| 2,551,305 | ||||||
Capital expenditures (6) |
| 257,885 |
| 116,217 |
| — |
| 400 |
| 374,502 | ||||||
| (1) | The following is a reconciliation of our total segment revenues to total consolidated revenues: |
Year Ended December 31, | |||||||||||
2025 | | 2024 | | 2023 | |||||||
(in thousands) | |||||||||||
Total segment revenues | $ | 2,200,892 | $ | 2,448,262 | $ | 2,572,029 | |||||
Other, Corporate and Elimination revenues - Outside | 74,390 | 70,122 | 60,244 | ||||||||
Other, Corporate and Elimination revenues - Intercompany | (80,471) | (69,676) | (65,572) | ||||||||
Total consolidated revenues | $ | 2,194,811 | $ | 2,448,708 | $ | 2,566,701 | |||||
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.
| (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. |
| (3) | Other segment items include: |
Oil & Gas Royalties – equity method investment income from AllDale III and income allocated to noncontrolling interest
| (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. |
The following is a reconciliation of total Segment Adjusted EBITDA for our segments to consolidated income before income taxes:
Year Ended December 31, |
| ||||||||||
|
| 2025 | | 2024 | | 2023 |
| ||||
(in thousands) | |||||||||||
Segment Adjusted EBITDA – total segments | $ | 760,768 | $ | 798,918 | $ | 1,007,512 | |||||
Other, Corporate and Elimination profit (loss) |
| 21,090 |
| (2,464) |
| 4,661 | |||||
General and administrative | (83,119) | (82,224) | (79,096) | ||||||||
Depreciation, depletion and amortization | (299,436) | (285,446) | (267,982) | ||||||||
Asset Impairments | — | (31,130) | — | ||||||||
Interest expense, net | (36,984) | (28,007) | (26,697) | ||||||||
Change in fair value of digital assets | (4,354) | 22,395 | — | ||||||||
Impairment loss on investments | (28,037) | — | — | ||||||||
Litigation expense accrual |
| — |
| (15,250) |
| — | |||||
Noncontrolling interest | 6,087 | 4,702 | 6,052 | ||||||||
Income before income taxes | $ | 336,015 | $ | 381,494 | $ | 644,450 | |||||
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.
| (5) | The following is a reconciliation of our total segment assets to total consolidated assets: |
December 31, | |||||||||||
2025 | | 2024 | | 2023 | |||||||
(in thousands) | |||||||||||
Total segment assets | $ | 2,652,107 | $ | 2,622,511 | $ | 2,551,305 | |||||
Other, Corporate and Elimination total assets | 201,681 | 293,219 | 237,121 | ||||||||
Total consolidated assets | $ | 2,853,788 | $ | 2,915,730 | $ | 2,788,426 | |||||
| (6) | Capital expenditures shown exclude $17.8 million, $24.7 million and $110.9 million paid for oil & gas acquisitions in 2025, 2024 and 2023, respectively. See Note 4 – Acquisitions for more information. The following is a reconciliation of our total segment capital expenditures to total consolidated capital expenditures: |
Year Ended December 31, | |||||||||||
2025 | | 2024 | | 2023 | |||||||
(in thousands) | |||||||||||
Total segment capital expenditures | $ | 255,054 | $ | 410,906 | $ | 374,502 | |||||
Other, Corporate and Elimination capital expenditures | 8,226 | 17,835 | 4,836 | ||||||||
Total consolidated capital expenditures | $ | 263,280 | $ | 428,741 | $ | 379,338 | |||||
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 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.