Alliance Resource Partners (ARLP) Investor presentation summary

Business profile and investment case

• Second-largest coal producer in the eastern U.S., operating seven underground mining complexes; also owns an oil and gas minerals royalty platform with over $1.0 billion invested.

• Investment themes include contracted sales visibility, rising U.S. electricity demand, policy support for grid reliability, royalty growth, and disciplined capital allocation.

• Insiders own ~17% of total equity; cumulative cash distributions since 1999 are ~ $5.0 billion.

Coal operations and sales visibility

• FY25 coal sales were 25.8 million tons from the Illinois Basin and 7.2 million tons from Appalachia; weighted-average heat content was 11,570 and 12,620 Btu/lb, respectively.

• FY26E sales guidance is 34.5–35.5 million tons, with 100% committed and priced at the midpoint; ~89% is contracted into domestic markets.

• FY26E coal sales price guidance is $54.25–$54.75/ton; FY27E sales volumes are ~91% committed and priced.

• 3Q26 coal tons sold rose 7.4% YoY to 9.348 million; Coal Operations Segment Adjusted EBITDA increased 18.6% to $186.8 million.

• Major mine investments completed in 2025 target lower costs, improved productivity, and extended mine life; FY26E sales guidance midpoint is 35.0 million tons.

Electricity demand and policy backdrop

• BloombergNEF forecast U.S. data-center power demand rising from 47 GW in 2026 to 194 GW in 2035, a 312% increase, with AI cited as a demand driver.

• Utility presentations cited more than 275 GW of large-load pipeline and $375 billion of capital plans; under a 60% capacity-factor assumption, five utilities imply over 34 million tons of additional annual eastern U.S. coal demand.

• Federal actions cited include coal reliability directives, EPA regulatory changes, and more than $1.1 billion of DOE support for coal-plant recommissioning, upgrades, modernization, and life extension.

• A June 2026 DOE program allocated $500 million to support 13 coal plants, including six plants supplied under existing sales relationships.