February 2, 2026 - Alliance Resource Partners, L.P. (NASDAQ: ARLP) has reported financial and operating results for the quarter and full year ended December 31, 2025. This release includes comparisons of results to the quarter and year ended December 31, 2024, as well as to the quarter ended September 30, 2025. All references in the text of this release to "net income" refer to "net income attributable to ARLP." For a definition of Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to comparable GAAP financial measures, please see the end of this release.

For the 2025 Quarter net income increased $66.3 million to $82.7 million, or $0.64 per basic and diluted limited partner unit, compared to $16.3 million, or $0.12 per basic and diluted limited partner unit for the 2024 Quarter as a result of reduced operating expenses, lower impairment charges and increased investment income, partially offset by lower revenues and a decrease in the fair value of our digital assets during the 2025 Quarter. Total revenues decreased 9.2% to $535.5 million in the 2025 Quarter compared to $590.1 million for the 2024 Quarter primarily due to lower coal sales and transportation revenues, partially offset by record oil & gas royalty volumes. Adjusted EBITDA increased 54.1% to $191.1 million in the 2025 Quarter compared to $124.0 million in the 2024 Quarter.

Compared to the Sequential Quarter, total revenues decreased by 6.3% due to lower coal sales volumes and prices, partially offset by higher other revenues. Net income decreased by 13.1% compared to the Sequential Quarter as a result of lower revenues and a decrease in the fair value of our digital assets, partially offset by reduced operating expenses and increased investment income. Adjusted EBITDA for the 2025 Quarter increased by 2.8% compared to the Sequential Quarter.

Total revenues decreased 10.4% to $2.19 billion for the 2025 Full Year compared to $2.45 billion for the 2024 Full Year primarily due to lower coal sales pricing and transportation revenues. Net income for the 2025 Full Year was $311.2 million, or $2.40 per basic and diluted limited partner unit, compared to $360.9 million, or $2.77 per basic and diluted limited partner unit, for the 2024 Full Year as a result of lower revenues and a decrease in the fair value of our digital assets in the 2025 Full Year, partially offset by reduced operating expenses and increased investment income. Adjusted EBITDA for the 2025 Full Year was $698.7 million compared to $714.2 million for the 2024 Full Year.

CEO Commentary

"Our team delivered solid performance to close out the fourth quarter and full year," commented Joseph W. Craft III, Chairman, President and Chief Executive Officer. "We achieved record Oil & Gas royalty volumes, underscoring the quality of our minerals portfolio. In our coal operations, the Illinois Basin continued to perform well, highlighted by Hamilton’s record year for clean tons and yield. While Appalachia costs increased sequentially primarily due to an unplanned outage at a key customer’s plant that required production adjustments at Mettiki and lower recoveries at Tunnel Ridge, we expect Appalachia costs to improve in 2026 as mining progresses in the new district at Tunnel Ridge."

Craft continued, "Industry fundamentals strengthened during the quarter. The December 2025 PJM capacity auction for 2027-2028 delivery years cleared at the FERC?approved cap across the entire region, with every megawatt of coal capacity selected. At the same time, reserve margins fell below PJM targets, reinforcing the critical need to keep existing, reliable baseload resources online as data center and industrial load growth accelerates. The Trump administration this month reestablished the National Coal Council, citing coal’s critical importance to our country’s economic competitiveness and national security, warning that the United States cannot win the global AI race without coal."

Craft concluded, "During the fourth quarter, we also recognized investment income of $17.5 million related to our share of the increase in the fair value of a coal-fired power plant indirectly owned and operated by an equity method investee. This investment aligns with our strategy to allocate a portion of excess cash flows into investments that we believe will generate attractive returns for our unitholders."Coal Operations

Coal sales volumes decreased by 2.2% and 2.4% in the Illinois Basin compared to the 2024 Quarter and Sequential Quarter, respectively, due primarily to decreased tons sold from our River View mine as a result of transportation delays and the timing of committed sales. Reduced export sales volumes from Gibson South also contributed to the reduction in coal sales volumes in the Illinois Basin compared to the 2024 Quarter. In Appalachia, tons sold decreased by 8.7% and 20.7% compared to the 2024 Quarter and Sequential Quarter, respectively, due to reduced sales volumes across the region, primarily caused by timing of committed sales at our Mettiki mine, a longwall move at Tunnel Ridge and lower recoveries at Tunnel Ridge and Mettiki. Coal sales price per ton sold decreased by 6.5% in the Illinois Basin compared to the 2024 Quarter as a result of the expiration of higher priced legacy contracts. In Appalachia, coal sales price per ton sold increased by 4.4% compared to the 2024 Quarter primarily due to higher domestic and export pricing as well as an increased sales mix of higher priced MC Mining and Mettiki sales volumes in the 2025 Quarter. ARLP ended the 2025 Quarter with total coal inventory of 1.1 million tons, representing an increase of 0.4 million tons and 0.1 million tons compared to the end of the 2024 Quarter and Sequential Quarter, respectively.

Segment Adjusted EBITDA Expense per ton in the Illinois Basin decreased by 14.4% and 3.8% compared to the 2024 Quarter and Sequential Quarter, respectively, due primarily to increased production at our Hamilton mine resulting from fewer longwall move days and improved recoveries during the 2025 Quarter. In Appalachia, Segment Adjusted EBITDA Expense per ton for the 2025 Quarter decreased by 17.5% compared to the 2024 Quarter due to increased production at our Mettiki and MC Mining operations and higher recoveries at MC Mining and Tunnel Ridge. Compared to the Sequential Quarter, Segment Adjusted EBITDA Expense per ton increased by 9.7% in Appalachia primarily due to reduced recoveries across the region and lower production at our Mettiki and Tunnel Ridge operations.

Royalties

Segment Adjusted EBITDA for the Oil & Gas Royalties segment increased to $30.0 million in the 2025 Quarter compared to $25.6 million and $27.7 million in the 2024 Quarter and Sequential Quarter, respectively, due to record oil & gas royalty volumes, which increased 20.2% and 10.0%, respectively, partially offset by lower average sales price per BOE.

Segment Adjusted EBITDA for the Coal Royalties segment increased to $14.6 million in the 2025 Quarter compared to $10.5 million in the 2024 Quarter due to higher royalty tons sold, primarily from Tunnel Ridge, and higher average royalty rates per ton received from the Partnership's mining subsidiaries. Compared to the Sequential Quarter, Segment Adjusted EBITDA for the Coal Royalties segment decreased 14.8% as a result of lower royalty tons sold and royalty rates per ton.

Growth Investments

During the 2025 Quarter, equity method investment income increased $22.0 million primarily driven by a higher increase in the value of our share of the net assets of the companies in which we hold interests. This included approximately $17.5 million related to our share of the increase in the fair value of a coal-fired power plant indirectly owned and operated by an equity method investee.

Balance Sheet and Liquidity

As of December 31, 2025, total debt and finance leases were outstanding in the amount of $463.7 million. The Partnership’s total and net leverage ratios were 0.66 times and 0.56 times debt to trailing twelve months Adjusted EBITDA, respectively, as of December 31, 2025. ARLP ended the 2025 Quarter with total liquidity of $518.5 million, which included $71.2 million of cash and cash equivalents and $447.3 million of borrowings available under its revolving credit and accounts receivable securitization facilities. ARLP also held 592 bitcoins valued at $51.8 million as of December 31, 2025.

Distributions

On January 27, 2026, the Board of Directors of ARLP’s general partner (the "Board") approved a cash distribution to unitholders for the 2025 Quarter of $0.60 per unit (an annualized rate of $2.40 per unit), payable on February 13, 2026, to all unitholders of record as of the close of trading on February 6, 2026.

Outlook

"Looking ahead to 2026, oil & gas royalty volumes are expected to be near 2025 Full Year record levels at the high end of our 2026 guidance," commented  Craft. "Over the past week, commodity benchmark pricing has been volatile, with 2026 oil futures down 3-8% and natural gas futures up 10-15% compared to 2025 averages. February Henry Hub futures climbed to $7.46 per MMBtu on its final trading day compared to $3.68 per MMBtu at the beginning of this year. Lower crude oil prices have created a softer backdrop for acquisition activity. However, we were successful in completing $14.4 million in oil & gas mineral acquisitions during the 2025 Quarter and we remain committed to growing our minerals portfolio moving forward. At the midpoint of our 2026 guidance, coal royalty tons sold are expected to be six million tons, or 25% above 2025, reflecting higher volumes at our Hamilton and Tunnel Ridge mines."

"Turning to our coal operations, we expect another year of strong operational and financial performance as we build on the progress achieved in 2025," continued  Craft. "Our 2026 guidance reflects the anticipated impact of reduced coal sales volumes at our Mettiki mine as disclosed in last week’s WARN Act notices. Notwithstanding these reductions, our guidance reflects higher planned coal sales tons in 2026, where previous capital investments in equipment and mine development are driving meaningful productivity gains with total sales tons expected to exceed 2025 levels by 0.8 million to 2.3 million tons, primarily across the Illinois Basin and at Tunnel Ridge. Customer demand across our core markets remains strong, and we have already committed and priced more than 93% of our 2026 sales tons guidance range at the midpoint."

Craft added, "We expect improved operating expenses per ton sold in the Illinois Basin and at Tunnel Ridge to help offset lower coal sales prices per ton sold year-over-year, supporting our efforts to preserve margins while maintaining our focus on cost discipline and execution."

Craft concluded, "With tightening domestic coal supply, robust contracting activity, and growing electricity demand, our longer-term outlook continues to be promising. Supported by our logistical advantages, cost structure, and strong balance sheet, we believe Alliance will continue to demonstrate its ability to serve as a reliable supply partner and is preparing to meet increased customer demand."

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