Alliance Resource Partners, L.p. · NASDAQ:ARLP
Alliance Resource Partners, L.p — Investor Presentation (October 2023)
21 slides from Alliance Resource Partners, L.p's investor presentation, October 2023
Slide 1: Reliable Energy For Today And Tomorrow
Reliable Energy For Today And Tomorrow Alliance Resource Partners, L.P. Investor Presentation October 2023 Alliance Resource Partners, L.P.
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation contains forward-looking statements and information that are based on the beliefs of Alliance Resource Partners, L.P. ("Alliance", "ARLP", or the "Partnership"), as well as assumptions made by and information currently available to them. When used in this presentat
Slide 3: Electrification Expected To Increase U.S. Demand To Over 5.5 Trillion KWh By 2050
Electrification Expected To Increase U.S. Demand To Over 5.5 Trillion KWh By 2050 U.S. Total Electricity Generation (Trillion KWh)1 6.0 +1.3 Trillion KWh Total Generation Growth (2023-2050) 5.0 +0.5 Trillion KWh Total Generation Growth (2000-2022) 4.0 3.0 2.0 Historical <<< >>> Projected There is a
Slide 4: Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Alliance Resource Partners, L.P. (NASDAQ: ARLP) Partnership Overview Key Market & Financial Data1 • Master Limited Partnership established in 1999 • Market Capitalization: $2.9 billion • Successful track-record as provider of reliable, affordable energy for • Enterprise Value: $3.1 billion baseload
Slide 5: ARLP: Key Investment Highlights
ARLP: Key Investment Highlights 1 • Leading provider of reliable, affordable, baseload energy for domestic and international markets Diversified Energy Company • Expanding and diversifying asset base to grow in parallel with evolving U.S. energy needs For the 21st Century • Strong balance sheet and
Slide 6: Diversified Energy Company For The 21st Century
1 Diversified Energy Company For The 21st Century Coal Mining Royalties New Ventures Largest coal producer in Mineral and royalty Strategic investments that eastern U.S., operating seven interests in strategic oil & support advancement of underground mining gas basins and coal energy and related com
Slide 7: Leading U.S. Coal Producer With Strategically Located, Low-Cost, Tier 1 Assets
2 Leading U.S. Coal Producer With Strategically Located, Low-Cost, Tier 1 Assets Coal Operations Asset Overview • Largest coal producer in the eastern U.S. with operations in the IA Illinois Basin Illinois Basin and Appalachia FY22 Tons Sold 24.1MM (68% Total) Asset Locations • Seven underground min
Slide 8: Well-Covered, Multi-Year Contracted Coal Book Backed By Blue-Chip Utility Customer Base
2 Well-Covered, Multi-Year Contracted Coal Book Backed By Blue-Chip Utility Customer Base • Well-established, credit-worthy customer base of primarily electric power utility companies in central and eastern U.S. • Multi-year contracts reduce pricing volatility and provide strong visibility into sale
Slide 9: Scaling Oil & Gas Royalty Platform In Top-Tier Basins With Top-Tier Operators
3 Scaling Oil & Gas Royalty Platform In Top-Tier Basins With Top-Tier Operators • ARLP has established a successful track record by Oil & Gas Royalty Asset Overview investing ~$700 million in oil & gas minerals since 2014, ARLP Net Royalty Acres Permian / Anadarko generating Segment Adjusted EBITDA1
Slide 10: Targeting Sustainable Growth With Size Approaching Attractively-Valued Public Royalty Peers
3 Targeting Sustainable Growth With Size Approaching Attractively-Valued Public Royalty Peers Strategies For Sustainable Oil & Gas Royalty Growth Successful Track Record Scaling Oil & Gas Royalty Platform Resilient Minerals Focused Acquisition Visibility to Organic Cumulative Capital Invested ($MM)
Slide 11: ARLP Well-Positioned To Be Reliable Energy Partner For Tomorrow
4 ARLP Well-Positioned To Be Reliable Energy Partner For Tomorrow Mining • Maintenance and Efficiency of Investment Existing Coal Operations • High-Potential • High Margin Cash Investments Into Energy New Five Capital Oil & Gas Generation Advancements & Ventures Allocation Royalties • Reinvest Cash
Slide 12: New Ventures Vision Underpinned By Four Strategic Aims
4 New Ventures Vision Underpinned By Four Strategic Aims Core Competencies Customer-Focused Leverage operational expertise Continue best-in-class customer (mining, Matrix), reputation, service and active engagement strategic relationships, and to provide innovative solutions existing assets to profi
Slide 13: Accelerate Expansion Of Matrix As Comprehensive Technology Solutions Provider
4 Accelerate Expansion Of Matrix As Comprehensive Technology Solutions Provider • Matrix, a wholly owned subsidiary of ARLP, is a developer and integrator of hardware, software, and decision intelligence solutions • Provides market-leading proximity detection and collision avoidance solutions Mine S
Slide 14: Alliance Core Competencies
4 Leveraging Inherent Strengths & Strategic Relationships To Determine "The Playing Field" 1) Critical Materials 2) Energy Solutions High • Ability to leverage core mining expertise and logistics • Utilize Matrix to provide expertise and solutions for existing competencies customers’ evolving energy
Slide 15: Disciplined Financial Principles & Capital Allocation Strategy
5 Disciplined Financial Principles & Capital Allocation Strategy • Conservative balance sheet and strong free cash flow generation support further de-leveraging and Balance Sheet opportunities for strategic high-return reinvestment • Committed to further improving capital structure, maintaining low
Slide 16: Appendix
Appendix Alliance Resource Partners, L.P. 16
Slide 17: 2023 Full Year Guidance (Updated October 27, 2023)
2023 Full Year Guidance (Updated October 27, 2023) 2023 Full Year Guidance 2023 Full Year Guidance Low — High Coal Operations Royalties Volumes (Million Short Tons) Oil & Gas Royalties Illinois Basin Sales Tons 24.5 — 24.8 Oil (000 Barrels) 1,400 — 1,500 Appalachia Sales Tons 10.0 — 10.2 Natural gas
Slide 18: Quarterly Summary Results: Coal Operations
Quarterly Summary Results: Coal Operations % Change 2023 Third 2022 Third Quarter / 2023 Second % Change (in millions, except per ton and per BOE data) Quarter Quarter Quarter Quarter Sequential Coal Operations (1) Illinois Basin Coal Operations Tons sold 6.049 6.109 (1.0) % 6.066 (0.3) % Coal sales
Slide 19: Quarterly Summary Results: Royalties & Consolidated
Quarterly Summary Results: Royalties & Consolidated % Change 2023 Third 2022 Third Quarter / 2023 Second % Change (in millions, except per ton and per BOE data) Quarter Quarter Quarter Quarter Sequential Royalties (1) Oil & Gas Royalties (4) BOE sold (2) 0.772 0.602 28.2 % 0.765 0.9 % Oil percentage
Slide 20: Supplemental Information
Supplemental Information Reconciliation of GAAP "net income attributable to ARLP" to non-GAAP "EBITDA" and "Distributable Cash Flow" (in thousands): Three Months Ended Nine Months Ended Three Months Ended Septem ber 30, Septem ber 30, June 30, 2023 2022 (1) 2023 2022 (1) 2023 Net income attributable
Slide 21: Supplemental Information
Supplemental Information Reconciliation of GAAP "Cash flows from operating activities" to non-GAAP "Free cash flow" (in thousands): Three Months Ended Nine Months Ended Three Months Ended Septem ber 30, Septem ber 30, June 30, 2023 2022 (1) 2023 2022 (1) 2023 Cash flow s from operating activities $
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