Alliance Resource Partners L P : Investor Presentation May 2025
ARLP
Published on 05/23/2025 at 06:17
Investor Presentation
May 2025
Alliance Resource Partners, L.P.
This presentation contains certain non-GAAP financial measures. These measures include Distributable Cash Flow, Distribution Coverage Ratio, EBITDA, EBITDA Margin, Adjusted EBITDA, Segment Adjusted EBITDA, Free Cash Flow and Net Leverage. Definitions and reconciliations to the nearest historical GAAP financial measures are included in the Appendix of this presentation. These non-GAAP financial measures should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or any other measures prepared under GAAP.
The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort. Adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with reasonable certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant
This Presentation has been prepared by the Partnership and includes market data and other statistical information from third party sources, including independent industry publications, government publications or other published independent sources, information obtained from customers, operators, trade and business organizations and publicly available information. Although the Partnership believes these third-party sources are reliable as of their respective dates, the Partnership has not independently verified the accuracy or completeness of this information. Some data is also based on the Partnership's good faith estimates, which are derived from management's knowledge and experience in the industry and the Partnership's review of internal sources and the third-party sources described above. The use or display of third parties' trademarks, service marks, trade names or products in this Presentation is not intended to, and does not imply, a relationship with us or an endorsement or sponsorship by us. Solely for convenience, the trademarks, service marks and trade names referred to in this Presentation may appear without the ®, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, their rights or the right of the applicable licensor to these trademarks, service marks and trade names.
Leading energy company with nearly three decades of operational expertise, providing reliable and affordable feedstock for baseload energy as the second largest coal producer in the eastern U.S.
High-quality oil & gas minerals royalty platform with ~$755 million invested and ability to re-deploy organic cash flow to fund acquisitions
Strong balance sheet and extensive track record as prudent stewards of capital and demonstrated commitment to financial discipline
Strong alignment with insiders owning ~17% of total equity
Market Capitalization:2 $3,417 million
Enterprise Value: 2 $3,820 million
Total 1Q25 LTM Revenue: $2,337 million
Total 1Q25 LTM Adjusted EBITDA: $636 million
Total / Net Debt: $484 / $403 million
Total / Net Leverage Ratio: 0.76x / 0.63x
Operate seven underground mining complexes producing coal primarily for the electric power generation markets and guiding to sell
32.75 to 34.75
million tons in FY25
Own growing portfolio of mineral and royalty interests across 70,000 net royalty acres in premier U.S. oil & gas producing regions as well as coal reserves in basins in which we operate
Current investments in technology, energy, and related infrastructure that leverage core strengths and strategic relationships intending to drive growth, create new platforms, and generate long-term
cash flow
1 Includes non-GAAP financial measures. Please see Appendix for a definition and reconciliation to its comparable GAAP measure. 2 As of May 16, 2025.
MLPs are tax-advantaged, yield-oriented public vehicles formed for the purpose of owning certain qualifying businesses, typically related to energy infrastructure or other natural resource-related activities
Publicly traded limited partnership interests trade in "units" rather than stock
An MLP classified as a partnership is a pass-through entity that pays no federal income tax at the entity level; instead, unitholders report proportionate share of annual partnership K-1 income or loss on their individual tax returns
This compares to public corporations whereby income is taxed twice - once at the
corporate level and again at the shareholder level when distributed (dividends)
Limited Partner Public Unitholders 128,428,024 Units 2
Operating Subsidiaries
Alliance Resource Partners, L.P.
(NASDAQ: ARLP)
General Partner
~$4.5 Billion Cumulative Cash Distributions Paid Since Partnership Inception in 1999
MLP unitholders receive cash distributions rather than dividends
Generally, cash distributions are treated as a non-taxable return of capital as
long as the unitholder's tax basis remains above zero
Unitholder basis in partnership units (the amount paid, increased or decreased by various adjustments) is reduced by the amount of the distribution
When an investor sells an MLP unit, their taxable gain is the difference
between the sales price and the unitholder's adjusted basis
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Additionally, if a unitholder passes away and the units pass to heirs, the basis is reset to fair market value of the units on the date of death, and prior distributions are not taxed
Please note this is for informational purposes only and should not be construed as offering tax advice. Consult your tax advisor regarding your own situation.
1 Sources: Energy Infrastructure Council. Vinson & Elkins: An Introduction: Master Limited Partnerships. 2 As of May 16, 2025.
Disclaimer
ARLP - Alliance Resource Partners LP published this content on May 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 23, 2025 at 10:16 UTC.