ALLIANCE RESOURCE PARTNERS LP Stock Compensation Disclosure
18.COMMON UNIT-BASED COMPENSATION PLANS
Long-Term Incentive Plan
A summary of non-vested LTIP grants of restricted units is as follows:
| Number of units |
| Weighted average grant date fair value per unit |
| Intrinsic value |
| |||
(in thousands) | |||||||||
Non-vested grants at January 1, 2023 | 3,697,133 | $ | 7.40 | $ | 75,126 | ||||
Granted (1) | 450,125 | 21.54 | |||||||
Vested (2) | (1,291,330) | 5.02 | |||||||
Forfeited | (145,584) |
| 6.86 | ||||||
Non-vested grants at December 31, 2023 | 2,710,344 | 10.91 | 57,405 | ||||||
Granted (1) | 455,574 | 19.69 | |||||||
Vested (2) | (1,582,422) |
| 6.53 | ||||||
Forfeited | (124,932) |
| 20.37 | ||||||
Non-vested grants at December 31, 2024 | 1,458,564 | 17.60 | 38,346 | ||||||
Granted (1) |
| 376,853 | 26.92 | ||||||
Vested (2) |
| (625,649) |
| 13.62 | |||||
Forfeited |
| (17,525) |
| 21.39 | |||||
Non-vested grants at December 31, 2025 |
| 1,192,243 |
| 22.58 | 27,696 | ||||
| (1) | Restricted units granted have certain minimum-value guarantees per unit, regardless of whether the awards vest. |
| (2) | During the years ended December 31, 2025, 2024 and 2023, we issued 366,043, 936,544 and 860,060 unrestricted common units, respectively, to the LTIP participants. The remaining vested units were withheld to satisfy tax withholdings. |
For the years ended December 31, 2025, 2024 and 2023, our LTIP expense for grants of restricted units was $8.9 million, $8.3 million and $10.4 million, respectively. The total obligation associated with LTIP grants of restricted units as of December 31, 2025 and 2024 was $17.2 million and $16.9 million, respectively, and is included in the partners’ capital Limited partners-common unitholders line item in our consolidated balance sheets. As of December 31, 2025, there was $9.7 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.
On January 27, 2026, the Compensation Committee authorized additional grants of 410,443 restricted units, of which 395,443 units were granted. These restricted units have certain minimum-value guarantees, regardless of whether the awards vest.
Supplemental Executive Retirement Plan and Directors’ Deferred Compensation Plan
A summary of SERP and Directors’ Deferred Compensation Plan activity is as follows:
| Number of units |
| Weighted average fair value per unit |
| Intrinsic value |
| |||
(in thousands) | |||||||||
Phantom units outstanding as of January 1, 2023 | 742,540 | $ | 20.28 | $ | 15,088 | ||||
Granted | 118,737 | 20.46 | |||||||
Settled (1) | (49,331) | 20.27 | |||||||
Phantom units outstanding as of December 31, 2023 | 811,946 | 20.44 | 17,197 | ||||||
Granted | 100,757 | 22.85 | |||||||
Settled (1) (2) |
| (912,703) | 26.37 | ||||||
Phantom units outstanding as of December 31, 2024 |
| — |
| ||||||
| (1) | During the years ended December 31, 2024 and 2023, we purchased 54,152 and 27,576 ARLP common units, respectively, on the open market to settle the accounts of participants under the SERP. Units purchased were net of units settled in cash to satisfy tax withholdings. |
| (2) | On December 16, 2024, the SERP and Directors’ Deferred Compensation Plan were terminated, and final distributions of applicable plan accounts were settled in cash. |
Total SERP and Directors’ Deferred Compensation Plan expense was $2.3 million and $2.4 million for the years ended December 31, 2024 and 2023, respectively.
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 Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.