Alliance Resource Partners (ARLP) Noble Capital Markets Emerging Growth Virtual Investor Conference summary

Structure and business overview

• Operates as a master limited partnership (MLP), offering tax-advantaged, yield-oriented investment with pass-through income and significant cash distributions to unitholders.

• Main business lines: legacy coal operations (80-85% of cash flow), oil and gas mineral interests (15-20%), and a portfolio of growth investments including energy technology and digital assets.

• Coal operations are the second largest in the Eastern U.S., with seven underground mining complexes serving primarily domestic electric power markets.

• Oil and gas mineral interests have grown significantly, generating $115 million in segment-adjusted EBITDA in 2024, up from $40 million in 2020.

• Growth investments include energy tech (Matrix), digital asset mining (Bitiki), and a recent equity stake in the Gavin coal-fired power plant.

Industry outlook and positioning

• Policy tailwinds from the current administration are reinforcing coal's role in grid reliability and supporting power plant customers.

• Investments in coal operations have positioned the company as a low-cost producer with access to both domestic and export markets.

• Anticipates increased U.S. electricity demand driven by data centers, onshoring, manufacturing, and AI.

• Domestic coal sales are rising, with a shift away from exports; domestic contracts offer more stability and longer terms.

• Expects domestic market share to increase further in 2026, with commitments extending to 2030.

Policy and regulatory environment

• Recent federal actions include extended compliance timelines for environmental regulations, opening federal lands for coal leasing, and $625 million in funding for coal plant modernization.

• Executive orders prioritize grid reliability, energy security, and extending the life of coal-fired plants.

• Anticipates that previously scheduled coal plant closures may be delayed, supporting ongoing demand.