ALLIANCE RESOURCE PARTNERS LP Business Summary

Alliance Resource Partners, L.P. (ARLP) operates as a diversified Master Limited Partnership (MLP) primarily generating revenue through the production and marketing of thermal and metallurgical coal to major utilities and industrial users. The company’s operations are organized into four core segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. While coal remains its primary revenue driver, ARLP has aggressively expanded its high-margin Oil & Gas Royalty segment, which manages mineral interests across premier U.S. basins, and its "Other Growth Investments" segment, which includes energy infrastructure and technology subsidiaries like Matrix Design Group. As of early 2026, ARLP maintains a dominant market position as the second-largest coal producer in the eastern United States, distinguished by its low-cost production profile and a highly disciplined contracting strategy that has secured pricing for over 93% of its 2026 coal sales volumes. It competes directly with Peabody Energy (BTU), Alpha Metallurgical Resources (AMR), and Arch Resources (ARCH), maintaining a competitive edge through superior logistics and a diversified cash flow profile that mitigates the cyclicality of the thermal coal market. The company was established in its current MLP form in 1999 following a management-led buyout of MAPCO Coal Inc. assets, a process spearheaded by Joseph W. Craft III with backing from The Beacon Group. The leadership team is characterized by exceptional continuity, led by Joseph W. Craft III, who serves as Chairman, President, and CEO and is the company’s largest individual unitholder. Supporting him are long-tenured executives including Cary P. Marshall (Senior VP and CFO), Thomas M. Wynne (Senior VP and COO), and Steven Schnitzer (Senior VP and General Counsel). This veteran management team, with an average tenure exceeding two decades, has successfully navigated the energy transition by pivoting capital toward mineral royalties and digital assets, including a strategic Bitcoin treasury. Notable ownership remains concentrated among the Craft family and institutional investors such as Progeny 3, Inc. and Magnolia Group, LLC, ensuring a strong alignment between management and unitholder interests.