Alliance Resource Partners, L.P. · NASDAQ:ARLP
Alliance Resource Partners, L.P — Non-Deal Roadshow (May 2024)
53 slides from Alliance Resource Partners, L.P's roadshow presentation, May 15, 2024
Slide 1: Reliable Energy For Today And Tomorrow
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Reliable Energy For Today And Tomorrow Alliance Resource Partners, L.P. Investor Presentation May 2024 Alliance Resource Partners, L.P.
Slide 2: Legal Disclaimers
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Legal Disclaimers Forward-looking Statements This presentation contains forward-looking statements and information that are based on the beliefs of
Slide 3: Legal Disclaimers
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Legal Disclaimers Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. These measures include Distributable C
Slide 4: Table of Contents
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Table of Contents Section Page Business Overview 5 Key Highlights 10 Appendix A: Consolidated Financial Overview 26 Appendix B: Coal Overview 30 App
Slide 5: Business Overview
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Business Overview Alliance Resource Partners, L.P.
Slide 6: Alliance in a Snapshot
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Alliance in a Snapshot Company Description Key Statistics (Q1’ 24 LTM) • Leading energy company with nearly three decades of operational expertise,
Slide 7: Alliance Corporate Strategy
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Alliance Corporate Strategy + Coal Mineral Royalties Matrix & New Ventures • Largest coal producer in the eastern U.S. with • Successful track recor
Slide 8: Snapshot of Coal Operations Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Snapshot of Coal Operations Segment1 Segments Description Key Segment Statistics (Q1’24 LTM) • Leading coal producer in the Illinois Basin and Appal
Slide 9: Snapshot of O&G Royalties Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Snapshot of O&G Royalties Segment Segment Description Key Segment Statistics (Q1’24 LTM) • Alliance has established a successful track record of inv
Slide 10: Key Highlights
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Key Highlights Alliance Resource Partners, L.P.
Slide 11: Key Highlights
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Key Highlights 1 Consistently Strong Adjusted EBITDA Margins Through A Well-Covered, Multi-Year Coal Contract Book Significant Growth in U.S. Electr
Slide 12: Asset Overview and Key Strengths in the Coal Operations Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 1 Asset Overview and Key Strengths in the Coal Operations Segment Asset and Operations Overview Key Strengths IA Illinois Basin Asset Locations A. G
Slide 13: Consistently Strong Coal Operations Segment Adjusted EBITDA Margins
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Consistently Strong Coal Operations Segment Adjusted EBITDA1 Margins through a Well-Covered, Multi- Investor Presentation (15-May-2024).pptx 1 Year Coal Contract Book COVID-19 Disruption $4
Slide 14: Growth in U.S. Electricity Demand Delaying Coal-Fired Power Plant Retirements
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Significant Growth in U.S. Electricity Demand from EVs, On-Shoring Manufacturing, Investor Presentation (15-May-2024).pptx 2 and Data Centers (including AI) is Delaying Coal-Fired Power Pla
Slide 15: Favorable Domestic Customer Dynamics
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 2 Favorable Domestic Customer Dynamics Low Cost Makes Alliance Competitive with Strategically Located in Close Proximity to Domestic Customers Natur
Slide 16: Developing Countries Continue to Build Coal-Fired Power Generation
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Developing Countries in MENA and Asia Continue to Build Coal-Fired Power Generation Investor Presentation (15-May-2024).pptx 3 Offsetting Retirements in Europe World Continues to Use Coal-F
Slide 17: Well-Positioned to Benefit from Attractive Export Pricing
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 3 Alliance is Well-Positioned to Benefit from Attractive Export Pricing …to Take Advantage of Periods of Elevated Alliance Retains the Flexibility t
Slide 18: Permian-Weighted Minerals Position Growth Through Commodity Cycles
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 4 Permian-Weighted Minerals Position has Seen Significant Growth and Activity Through Commodity Cycles Gross oil production on Alliance’s minerals p
Slide 19: Overview of O&G Mineral Acreage
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 4 Overview of O&G Mineral Acreage Alliance’s mineral interests consist of high quality, liquids-weighted assets across core regions of top-tier L48
Slide 20: Meaningful Permian Weighted Activity from Top-Tier Operators
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 5 Meaningful Permian Weighted Activity from Top-Tier Operators Gross Active Rigs by Operator1,2 Gross Spuds by Operator1,3 51% % ARLP Others 43% 36%
Slide 21: E&Ps Have Significant Running Room Over Alliance's Royalties Position
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 5 E&Ps Have Significant Running Room Over Alliance’s Royalties Position Alliance’s strategic focus on highly active, stacked-pay basins delivers > 1
Slide 22: Activity on Our Acreage Exceeds Level Required to Maintain Production
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 6 Activity on Our Acreage Meaningfully Exceeds Level Required to Maintain Production Even as operators have moderated growth, current activity level
Slide 23: Strong Free Cash Flow Generation Through the Commodity Cycle
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 7 Strong Free Cash Flow Generation Through the Commodity Cycle Consistently delivering strong operating and financial performance while maintaining
Slide 24: Disciplined Financial Principles & Capital Allocation Strategy
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 8 Disciplined Financial Principles & Capital Allocation Strategy Capital Allocation Priorities • Conservative balance sheet and strong free cash flo
Slide 25: Key Highlights
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Key Highlights 1 Consistently Strong Adjusted EBITDA Margins Through A Well-Covered, Multi-Year Coal Contract Book Significant Growth in U.S. Electr
Slide 26: Appendix A: Consolidated Financial Overview
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Appendix A: Consolidated Financial Overview Alliance Resource Partners, L.P.
Slide 27: Historical Financial Summary – Alliance Consolidated
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Historical Financial Summary – Alliance Consolidated Total Revenue2 over Time ($ million) Consolidated Adj. EBITDA1, 2 over Time ($ million) $2,567
Slide 28: Current Capitalization
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Current Capitalization 1 xEBITDA CCR: Ba3 (Sta.) / B+ (Pos.) / BB (Sta.) 3/31/2024 (mm) Q1'2024A Spread / Coupon Tranche Ratings Maturity Cash and C
Slide 29: Organizational Chart
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Organizational Chart Institutions Legend 18.44% # Organizational Segment Strong alignment of A Existing Senior Notes Issuer incentives, with current
Slide 30: Appendix B: Coal Overview
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Appendix B: Coal Overview Alliance Resource Partners, L.P.
Slide 31: Customer and Contract Profile
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Customer and Contract Profile • Alliance’s commercial strategy focuses on securing multi-year contracts with blue-chip customers Length of to reduce
Slide 32: Strategic Investments in Coal Operations Segments
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Strategic Investments in Coal Operations Segments River View/Henderson Mines Tunnel Ridge Mine Hamilton Mine (Access to 127MM Lower Cost Tons) (Acce
Slide 33: Snapshot of Coal Royalties Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Snapshot of Coal Royalties Segment Overview Coal Royalties - Mine Geography • Segment includes ~558mm tons of proved and probable coal reserves and
Slide 34: Historical Financial Summary – Coal Operations Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Historical Financial Summary – Coal Operations Segment Sales Tons by Basin (million tons) Revenue by Segment ($ million)1 35.6 34.6 $44 $43 $59 $64
Slide 35: Historical Financial Summary – Coal Royalties Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Historical Financial Summary – Coal Royalties Segment Coal Royalty Tons Sold (000’s)1 Segment Adjusted EBITDA1,2 ($ million) $43 21.8 $41 20.7 20.2
Slide 36: Appendix C: Oil and Gas Royalties Overview
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Appendix C: Oil and Gas Royalties Overview Alliance Resource Partners, L.P.
Slide 37: Alliance's Permian Portfolio is Located within the Core of the Basin
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Alliance’s Permian Portfolio is Located within the Core of the Basin Acquisition activity has focused on the Core Permian, where high oil productivi
Slide 38: Evolution of Minerals Acquisition Strategy
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Evolution of Minerals Acquisition Strategy to Capitalize on Opportunities in the Market Passive Acquisition Strategy (2014 – 2018) Active Acquisitio
Slide 39: Historical Financial Summary – O&G Royalties Segment
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx 39 Historical Financial Summary – O&G Royalties Segment Volume by Product (000’s BBL) Revenue by Product ($ million)1 3,244 3,105 $155 $4 $142 $143
Slide 40: Appendix D: Matrix and New Ventures Overview
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Appendix D: Matrix and New Ventures Overview Alliance Resource Partners, L.P.
Slide 41: Snapshot of Matrix
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Snapshot of Matrix Matrix develops, supplies, and supports technology that enhances productivity and improves safety in industrial and mining enviro
Slide 42: Snapshot of New Ventures
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Snapshot of New Ventures New Ventures focused on diversifying business into high-growth areas that are indirectly linked to Alliance’s core competen
Slide 43: Appendix E: Supporting Financial Information
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Appendix E: Supporting Financial Information Alliance Resource Partners, L.P.
Slide 44: Supplemental Information
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Supplemental Information Reconciliation of GAAP "Net Income Attributable to ARLP" to NON-GAAP "EBITDA" and "Distributable Cash Flow" (in thousands):
Slide 45: Supplemental Information
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Supplemental Information Reconciliation of GAAP "Cash Flows from Operating Activities" to NON-GAAP "Free Cash Flow" (in thousands): Reconciliation o
Slide 46: Non-GAAP Reconciliations
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations Reconciliation of GAAP "net income attributable to ARLP" to non-GAAP "EBITDA", "Adjusted EBITDA", and "Segment Adjusted EBI
Slide 47: Non-GAAP Reconciliations
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations Coal Segments' Segment Adjusted EBITDA Margin Year Ended December, 2019 2020 2021 2022 2023 Q1 '24 LTM (in millions) Segmen
Slide 48: Non-GAAP Reconciliations and Cumulative Amount Invested Calculation
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations and Cumulative Amount Invested Calculation Alliance Resource Partners, L.P. 48
Slide 49: Non-GAAP Reconciliations
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations Other, Corporate and Eliminations Year Ended December, 2019 2020 2021 2022 2023 Q1 '24 LTM (in millions) Net income attribu
Slide 50: Non-GAAP Reconciliations
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations Consolidated Year Ended December, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * 2020 * 2021 * 2022 * 2023 * Q1 '24 LT
Slide 51: Non-GAAP Reconciliations
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations Reconciliation of GAAP "net income attributable to ARLP" to non-GAAP "Distributable Cash Flow" Year Ended December, 2020 *
Slide 52: Non-GAAP Reconciliations
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Non-GAAP Reconciliations CALCULATION OF GROSS AND NET LEVERAGE Year Ended December, Q1 '24 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 * 2020
Slide 53: Definitions
ibdroot\projects\IBD-NY\abramis2024\926850_1\10. Investor Presentation\01. Non-Deal Roadshow Presentation\ARLP Investor Presentation (15-May-2024).pptx Definitions We define Distributable Cash Flow as Adjusted EBITDA excluding equity method investment earnings, interest expense (before capitalized i
Alliance Resource Partners — Non-Deal Roadshow (May 2024) on 6ix