ALLIANCE RESOURCE PARTNERS LP Q3 FY2024 earnings call

• Coal Operations: Impacted by low natural gas prices, export market activity, and mining conditions. Proactive steps taken to align production with shipments, reducing inventory by over 5,00,000 tons. - Capital Projects: Warrior portal to be occupied by early 2025, Tunnel Ridge portal completion in early 2025, Hamilton longwall shields delivery in mid-2025, River View complex project ahead of schedule. - Oil and Gas Royalties: Volumetric growth driven by Permian Basin activity, $10.5 million acquisitions in third quarter. - Safety: Lowest injury rate since 2017, with two national champions from mine rescue contest.

Coal Operations: Third quarter 2024 coal sales shipments increased 6.7% and domestic 11.9% from previous quarter. Coal sales volumes were 8.4 million tons, production 7.8 million tons. Coal sales price per ton was $63.57, down year-over-year and sequentially. Segment adjusted EBITDA expense per ton sold was $46.11, increasing year-over-year. Illinois Basin segment adjusted EBITDA expense per ton sold was $37.79, Appalachia saw higher costs. Oil and Gas Royalties: Third quarter volumes reached 864,000 barrels of oil equivalent, up 11.9% year-over-year, but average realized sales prices per BOE were down due to lower commodity pricing. Coal Royalties: 2.3% increase in coal royalty volumes, 3% decrease in revenue per ton year-over-year. Consolidated revenue was $613.6 million, down 3.6% year-over-year. Net income was $86.3 million, adjusted EBITDA was $170.4 million.

• Maintaining full-year guidance for coal sales volumes, price, adjusted EBITDA expense, royalties volumes, and royalties unit expenses. - Expect total coal volumes and realized prices closer to bottom of ranges, segment-adjusted EBITDA expense at high end. - Longwall moves shifted to first quarter 2025. - Increased committed tonnage for 2025, with 5.9 million tons added, 5.5 million domestic.

• Market conditions including low natural gas prices, export market challenges. - Regulatory risks related to EPA emissions rules and potential impacts on coal operations. - Geopolitical factors and potential policy changes affecting coal demand and operations.

Q: About export sales opportunities in fourth quarter and shipment guidance.

A: Cary mentioned opportunities in the export market, but Joe noted a customer declared force majeure in the third quarter which may impact tonnage timing.

Q: Appalachia cost improvement.

A: Joe said better conditions ahead in Tunnel Ridge and Mettiki with longwall moves, but MC was still challenging due to geology.

Q: Oil and gas equity method investment loss.

A: Cary said it was related to Francis Energy investment, no expected future losses.

Q: Crypto mining and cost.

A: Joe said continuing to mine Bitcoin, net addition of coins, with efficiency improvements from new miners.

Q: EPA emissions rule.

A: Joe believed the rule would be overturned, with impact of administration on regulations.

Q: Oil and gas acquisitions.

A: Joe said it was part of normal ground game program with consistent underwriting standards.

Q: Capital allocation and new ventures.

A: Prioritizing coal operations, then minerals, then other investments, waiting on election for transition investments.

Q: EPA emissions rule and court cases.

A: Joe believed the rule would be overturned, with impact of administration on regulations