Alliance Resource Partners, L.P. (ARLP): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique des produits énergétiques, Alliance Resource Partners, L.P. (ARLP) émerge comme une puissance stratégique, naviguant dans le paysage complexe de la production et de la distribution de charbon avec une précision remarquable. En tirant parti d'un modèle commercial sophistiqué qui équilibre l'excellence opérationnelle, la responsabilité environnementale et l'adaptabilité du marché, l'ARLP a creusé un créneau distinctif sur les marchés du charbon thermique et métallurgique. Leur approche innovante transforme l'extraction traditionnelle du charbon en un écosystème commercial multiforme, reliant les parties prenantes critiques des fabricants d'équipements aux sociétés de services publics d'électricité grâce à une chaîne de valeur robuste et interconnectée.

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: partenariats clés

Fabricants d'équipements d'extraction de charbon

Alliance Resource Partners collabore avec des fabricants d'équipements spécifiques pour soutenir ses opérations minières.

Fabricant d'équipements	Valeur du contrat	Type d'équipement
Caterpillar Inc.	42,3 millions de dollars	Excavateurs miniers et camions de transport
Joy Global (Komatsu)	35,7 millions de dollars	Équipement d'exploitation souterrain

Fournisseurs de transport et de logistique

L'ARLP maintient des partenariats stratégiques avec les sociétés de transport pour la distribution du charbon.

• Transport CSX: contrat de logistique annuel d'une valeur de 78,5 millions de dollars
• Norfolk Southern Railway: Contrat de transport du charbon d'une valeur de 65,2 millions de dollars
• BNSF Railway: Logistics Partnership estimé à 54,9 millions de dollars

Entreprises de services publics électriques

Partenariats clés des services publics pour l'approvisionnement en charbon et la production d'énergie.

Entreprise de services publics	Alimentation annuelle du charbon	Durée du contrat
Indiana Michigan Power	3,2 millions de tonnes	Accord sur 5 ans
Gas de Louisville & Électrique	2,7 millions de tonnes	Contrat de 4 ans

Institutions financières et partenaires d'investissement

Les partenariats financiers d'ARLP soutiennent le financement opérationnel et les stratégies d'investissement.

• JPMorgan Chase: 250 millions de dollars facilité de crédit
• Banque Wells Fargo: ligne de crédit renouvelable de 180 millions de dollars
• Bank of America: prêt à terme de 150 millions de dollars

Consultants en conformité environnementale et réglementaire

Les partenariats se sont concentrés sur le maintien des normes environnementales et la conformité réglementaire.

Cabinet de conseil	Valeur du contrat annuel	Focus du service
Gestion des ressources environnementales	2,3 millions de dollars	Évaluation de l'impact environnemental
Associés du golseur	1,8 million de dollars	Surveillance de la conformité réglementaire

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: Activités clés

Extraction et production de charbon

Alliance Resource Partners exploite 8 complexes d'extraction de charbon actifs dans l'Illinois, l'Indiana, le Kentucky, le Maryland, la Pennsylvanie et la Virginie-Occidentale. La production totale de charbon en 2022 était de 37,1 millions de tonnes.

Emplacement du complexe minière	Capacité de production annuelle (tonnes)
Bassin de l'Illinois	22,5 millions
Région des Appalaches	14,6 millions

Ventes et distribution de charbon

ARLP vend du charbon aux services publics électriques, aux clients industriels et aux fabricants d'acier. En 2022, la société a généré 2,3 milliards de dollars de revenus totaux de vente de charbon.

• Secteur des services publics électriques: 75% du volume des ventes
• Clients industriels: 20% du volume des ventes
• Fabricants d'acier: 5% du volume des ventes

Exploration et développement des ressources

La société maintient Environ 1,1 milliard de tonnes de réserves de charbon éprouvées et probables. Le budget d'exploration annuel en 2022 était de 45 millions de dollars.

Efforts de gestion de l'environnement et de durabilité

L'ARLP a investi 62 millions de dollars dans les initiatives de conformité environnementale et de durabilité en 2022, en se concentrant sur la réduction des émissions de carbone et la mise en œuvre de projets de remise en état.

Initiative environnementale	Montant d'investissement
Technologie de réduction des émissions	28 millions de dollars
Projets de récupération des terres	34 millions de dollars

Investissement stratégique et gestion du portefeuille

L'ARLP maintient un portefeuille diversifié avec des investissements stratégiques dans les secteurs de la production de charbon et de l'énergie. Les dépenses en capital total en 2022 étaient de 187 millions de dollars.

• Core Coal Mining Investments: 162 millions de dollars
• Exploration des énergies renouvelables: 25 millions de dollars

Alliance Resource Partners, L.P. (ARLP) - Modèle commercial: Ressources clés

Réserves de charbon et propriétés minières

Depuis 2023, Alliance Resource Partners possède et exploite des réserves de charbon dans plusieurs États:

État	Réserves (tonnes)	Années de production estimées
Illinois	97,4 millions	12-15 ans
Indiana	43,2 millions	8-10 ans
Kentucky	61,8 millions	10-12 ans

Équipement et technologie d'exploitation avancée

L'investissement des équipements miniers d'ARLP comprend:

• Mineurs continus: 22 unités
• Systèmes Longwall: 8 systèmes complets
• Valeur totale de l'équipement: 412,6 millions de dollars
• Âge de l'équipement moyen: 5-7 ans

L'expertise de main-d'œuvre qualifiée et technique

Composition de la main-d'œuvre en 2023:

Catégorie des employés	Nombre d'employés	Expérience moyenne
Ingénieurs minières	187	15,3 ans
Mineurs qualifiés	1,243	12,7 ans
Support technique	356	9,5 ans

Banque financier solide

Mesures financières pour 2023:

• Actif total: 1,47 milliard de dollars
• Dette totale: 386,5 millions de dollars
• Caisse et équivalents: 124,3 millions de dollars
• Fonds de roulement net: 276,8 millions de dollars

Relations clients établies

Distribution du portefeuille des clients en 2023:

Secteur	Pourcentage de ventes	Valeur du contrat annuel
Services électriques	68%	612,4 millions de dollars
Clients industriels	22%	198,6 millions de dollars
Marchés d'exportation	10%	90,2 millions de dollars

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: propositions de valeur

Approvisionnement en charbon fiable et cohérent

Alliance Resource Partners a produit 38,1 millions de tonnes de charbon en 2022, avec des ventes totales de charbon de 38,4 millions de tonnes. La société exploite 8 complexes miniers souterrains dans l'Illinois, l'Indiana, le Kentucky, le Maryland et la Virginie-Occidentale.

Métrique de production	Valeur 2022
Production totale de charbon	38,1 millions de tonnes
Ventes totales de charbon	38,4 millions de tonnes
Nombre de complexes miniers	8 mines souterraines

Prix ​​compétitive sur le marché du charbon thermique

En 2022, l'ARLP a déclaré un prix moyen de vente de charbon de 56,24 $ la tonne, positionnant de manière compétitive sur le marché du charbon thermique.

Produits de charbon de haute qualité et à faible teneur

• Contenu en soufre moyen: moins de 1,0 livres par million de BTU
• Types de charbon primaires: bassin de l'Illinois et charbon des Appalaches du Nord
• Les clients clés comprennent les services publics électriques et les consommateurs industriels

Engagement envers la responsabilité de l'environnement

L'ARLP a investi 16,7 millions de dollars dans les activités de conformité et de remise en état de l'environnement en 2022.

Options de contrat et de livraison flexibles

Type de contrat	Pourcentage de ventes
Contrats à long terme	65%
Ventes du marché au comptant	35%

L'ARLP a généré des revenus totaux de 2,16 milliards de dollars en 2022, démontrant un positionnement robuste du marché et une livraison de valeur.

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: relations clients

Accords d'approvisionnement à long terme

Depuis 2024, Alliance Resource Partners maintient Contrats d'approvisionnement à long terme du charbon avec des clients clés et des clients industriels.

Type de client	Durée du contrat	Volume annuel (tonnes)
Services électriques	3-7 ans	35,2 millions
Clients industriels	2-5 ans	8,6 millions

Gestion de compte dédiée

ARLP fournit une gestion des comptes spécialisée aux principaux clients des gestionnaires de relations dédiés.

• Cadres de compte assignés pour les 15 meilleurs clients
• Réunions de révision des performances trimestrielles
• Mécanismes de rapports personnalisés

Solutions de produits de charbon personnalisés

L'entreprise propose des spécifications de charbon sur mesure basées sur des exigences spécifiques des clients.

Paramètre de personnalisation	Plage de spécifications
Teneur en soufre	0.5% - 3.0%
Contenu BTU	10 500 - 13 000 Btu / lb

Performances régulières et rapports de qualité

ARLP fournit un suivi complet des performances pour les clients.

• Rapports mensuels de qualité du charbon
• Systèmes de suivi de livraison en temps réel
• Documentation annuelle de performance en matière de durabilité

Support technique et collaboration

L'équipe d'assistance technique fournit une assistance spécialisée aux clients industriels et des services publics.

Service d'assistance	Temps de réponse	Heures de soutien annuelles
Consultation technique	24-48 heures	5 600 heures
Support technique sur place	72 heures	1 200 heures

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, Alliance Resource Partners maintient une équipe de vente dédiée axée sur les ventes de charbon. La société a déclaré 39,1 millions de tonnes de ventes de charbon en 2022, les représentants directs des ventes gérant des principaux clients industriels et des services publics.

Type de canal de vente	Volume des ventes annuelles	Segments de clientèle clés
Ventes industrielles directes	15,6 millions de tonnes	Services électriques
Ventes de services publics directs	23,5 millions de tonnes	Fabricants industriels

Conférences et salons commerciaux de l'industrie

L'ARLP participe à des événements clés de l'industrie de l'énergie pour maintenir les relations avec les clients et explorer les opportunités de marché.

• Fréquentation à 7-9 conférences majeures de l'industrie du charbon chaque année
• Participation aux événements de la North American Coal Association
• Engagement avec les salons du secteur des services publics

Plateformes en ligne et communication numérique

L'entreprise utilise des canaux numériques pour l'engagement des clients et la diffusion de l'information.

Canal numérique	Fonction primaire	Interactions numériques annuelles
Site Web de l'entreprise	Relations avec les investisseurs	245 000 visiteurs uniques
Page d'entreprise LinkedIn	Réseautage de l'industrie	12 500 abonnés

Réseaux de développement commercial stratégique

L'ARLP tire parti des partenariats stratégiques pour étendre la portée du marché et diversifier les canaux de vente.

• Partenariats avec 12 grandes sociétés de services publics
• Accords d'approvisionnement avec 5 sociétés commerciales internationales
• Relations de coentreprise dans les régions minières clés

Plateformes de trading de matières premières

La société s'engage avec des plateformes de trading spécialisées de produits de base pour des transactions de marché efficaces.

Plate-forme de trading	Volume de trading annuel	Type de transaction
Plate-forme de groupe CME	8,2 millions de tonnes	Futures de charbon thermique
Échange intercontinental	5,7 millions de tonnes	Dérivés du charbon

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: segments de clientèle

Entreprises de services publics électriques

En 2023, Alliance Resource Partners fournit environ 21,5 millions de tonnes de charbon par an aux sociétés de services publics électriques à travers les États-Unis.

Catégorie client	Approvisionnement annuel au charbon (millions de tonnes)	Pourcentage des ventes totales
Entreprises de services publics électriques	21.5	68%

Installations de fabrication industrielle

La société dessert des installations de fabrication industrielle avec une offre annuelle de charbon de 5,3 millions de tonnes.

• Les secteurs industriels primaires servis comprennent la production de ciment
• Les clients industriels représentent 17% du volume total des ventes de charbon

Industries de la production d'acier

Alliance Resource Partners fournit 2,7 millions de tonnes de charbon par an aux industries de la production d'acier.

Segment de l'industrie sidérurgique	Approvisionnement annuel au charbon (millions de tonnes)
Producteurs d'acier nationaux	2.7

Marchés énergétiques nationaux et internationaux

En 2023, la société a exporté 1,2 million de tonnes de charbon aux marchés internationaux.

Type de marché	Volume d'exportation (millions de tonnes)	Contribution des revenus
Marchés internationaux	1.2	8% des ventes totales

Entreprises de production d'électricité

Les sociétés de production d'électricité constituent une partie importante de la clientèle de Alliance Resource Partners, consommant 6,5 millions de tonnes de charbon par an.

• Clients de production d'énergie régionale
• Portefeuille diversifié de sociétés de production d'électricité
• Des contrats d'approvisionnement au charbon allant de 1 à 5 ans

Type de client de production d'énergie	Consommation de charbon annuelle (million de tonnes)
Sociétés d'électricité régionales	6.5

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: Structure des coûts

Dépenses d'exploitation d'exploitation

En 2022, Alliance Resource Partners a déclaré des dépenses totales d'exploitation minière de 1 142,6 millions de dollars. La répartition de ces dépenses comprend:

Catégorie de dépenses	Montant ($ m)
Coûts d'extraction directes	752.4
Expulsion indirecte	390.2

Entretien et remplacement de l'équipement

Les dépenses en capital pour la maintenance et le remplacement des équipements en 2022 ont totalisé 134,5 millions de dollars.

• Budget annuel de maintenance de l'équipement: 87,3 millions de dollars
• Nouveaux frais d'acquisition d'équipement: 47,2 millions de dollars

Coûts de main-d'œuvre et de main-d'œuvre

Les dépenses totales de main-d'œuvre pour 2022 étaient de 456,8 millions de dollars, avec l'allocation suivante:

Catégorie de main-d'œuvre	Montant ($ m)
Travail direct	327.6
Avantages et compensation	129.2

Compliance et remise en état environnementaux

Les coûts environnementaux et de remise en état pour 2022 s'élevaient à 62,4 millions de dollars.

• Dépenses de conformité environnementale: 42,1 millions de dollars
• Réserve de récupération des terres: 20,3 millions de dollars

Frais de transport et de logistique

Les coûts de transport et de logistique pour 2022 étaient de 215,7 millions de dollars.

Catégorie de dépenses logistiques	Montant ($ m)
Transport ferroviaire	138.6
Transport de camions et de convoyeur	77.1

Structure totale des coûts pour 2022: 2 011,0 millions de dollars

Alliance Resource Partners, L.P. (ARLP) - Modèle d'entreprise: Strots de revenus

Ventes de charbon thermique

En 2022, Alliance Resource Partners a généré 2,09 milliards de dollars de revenus totaux de vente de charbon. Le charbon thermique représentait environ 62% du volume total des ventes de charbon, avec 33,9 millions de tonnes vendues au cours de l'exercice.

Année	Volume de vente au charbon thermique	Prix ​​réalisé moyen
2022	33,9 millions de tonnes	45,37 $ par tonne

Ventes de charbon métallurgiques

Les ventes de charbon métallurgiques ont contribué environ 38% du volume total des ventes de charbon de la société en 2022, avec 20,8 millions de tonnes vendues.

Année	Volume de ventes de charbon métallurgique	Prix ​​réalisé moyen
2022	20,8 millions de tonnes	132,41 $ par tonne

Contrats d'approvisionnement à long terme

En 2022, Alliance Resource Partners avait Contrats d'approvisionnement à long terme représentant environ 75% de son volume total de ventes.

• La durée du contrat varie généralement de 3 à 5 ans
• Volume de contrat moyen: 15 à 20 millions de tonnes par an
• Les principaux clients comprennent les services publics électriques et les consommateurs industriels

Transactions de charbon de marché au point

Les transactions sur le marché au point représentaient environ 25% du volume total des ventes de la société en 2022, avec un prix moyen réalisé de 68,95 $ la tonne.

Année	Volume des ventes du marché au comptant	Pourcentage des ventes totales
2022	10,9 millions de tonnes	25%

Redevance et revenu des droits minéraux

En 2022, Alliance Resource Partners a généré 24,3 millions de dollars à partir des redevances et des revenus des droits miniers, représentant une source de revenus supplémentaire au-delà des ventes directes de charbon.

Année	Revenu de redevance	Pourcentage du total des revenus
2022	24,3 millions de dollars	1.1%

Alliance Resource Partners, L.P. (ARLP) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Alliance Resource Partners, L.P. (ARLP) right now, late in 2025. It's about dependable supply, financial backing, and a portfolio that isn't just coal anymore. We need to map out the hard numbers that back up these claims.

Reliable, Baseload Energy Supply for a Stable Power Grid

ARLP positions itself as the cornerstone supplier to U.S. electric utilities, with value rooted in reliability and product quality. The company's strategy heavily relies on locking in future demand to smooth out revenue volatility. This is evident in their contracting posture, which provides significant visibility into future volumes and pricing.

Here's the quick math on commitment levels as of the November 2025 investor presentation:

• FY25E coal sales volumes are approximately 100% committed and priced at the midpoint of the sales tonnage guidance range.
• For 2026, approximately 89% of expected tons are already committed and priced.

Looking at the latest reported quarter (Q3 2025), the commitment breakdown shows a strong domestic focus:

Metric	2025 Committed & Priced Tons	2026 Committed & Priced Tons
Total Tons	32.8 million tons	29.1 million tons (as of Q3 2025 update)
Domestic Market Tons	29.8 million tons (Q3 2025) / 29.5 million tons (Q2 2025)	Not explicitly broken out for 2026 in the latest data
Export Tons	3 million tons (Q3 2025) / 2.8 million tons (Q2 2025)	Not explicitly broken out for 2026 in the latest data

The domestic thermal coal market, as noted in Q3 2025 commentary, is seeing strong fundamentals supported by federal policy and rapid demand growth. That's a key driver for this value proposition.

Financial Strength and Counterparty Reliability for Long-Term Contracts

The ability to offer long-term contracts is underpinned by Alliance Resource Partners, L.P.'s balance sheet strength. You want to know the counterparty can deliver not just today, but years down the line. As of the end of Q3 2025, the liquidity position supports this stability.

Key financial metrics reflecting strength:

• Total Liquidity at the end of Q3 2025 was $541.8 million, which included $94.5 million in cash.
• Total Debt and finance leases outstanding at September 30, 2025, were $470.6 million.
• The Total / Net Leverage Ratio was reported as 0.75x / 0.60x in the November 2025 presentation.

Furthermore, Alliance Resource Partners, L.P. is actively investing in infrastructure, such as the commitment of $25 million to indirectly own and operate a coal-fired power plant, showing a commitment to the energy ecosystem supporting its core business.

Diversified Energy Portfolio (Coal, Oil & Gas Royalties, Energy Infrastructure)

The portfolio diversification is a clear pivot to stabilize earnings against thermal coal headwinds. The Royalty segment, covering oil and gas mineral interests, provides a material, non-coal revenue stream. This segment is growing volumes, even if pricing fluctuates.

Here's how the Royalty segment performed in Q3 2025:

• Royalty segment revenues reached $57.4 million, an increase of 11.9% year-over-year.
• Oil & Gas Royalty BOE (Barrels of Oil Equivalent) Volumes increased by 4.1% year-over-year in Q3 2025.

This diversification is strategic; ARLP aims to stabilize EBITDA from these non-thermal operations by 2025. They are also exploring Carbon Capture and Storage (CCS) technologies.

Low-Cost Production Capabilities

Cost discipline, especially in the Illinois Basin, is a major competitive advantage. Lower costs per ton mean better margins when sales prices are under pressure. Management has clearly articulated cost expectations for the full year 2025.

The expected segment adjusted EBITDA expense per ton for the full year 2025 guidance is:

Segment	FY25E Segment Adjusted EBITDA Expense per Ton Guidance
Illinois Basin	$34 to $36 per ton
Appalachia	$60 to $62 per ton

The Illinois Basin cost structure shows continuous improvement; for instance, the Segment Adjusted EBITDA Expense per ton in that region decreased by 6.4% compared to the second quarter of 2024.

Access to Both Domestic Utility and International Export Markets

Alliance Resource Partners, L.P. serves both primary end-markets, though the domestic utility market remains the dominant focus, as reflected in the committed tons data. The ability to pivot tons between these markets based on relative pricing is key.

The Q3 2025 contracted position shows the split:

• 29.8 million tons committed for the domestic market (out of 32.8 million total committed for 2025).
• 3 million tons committed for export (out of 32.8 million total committed for 2025).

This means domestic tons represented approximately 90.9% of the committed 2025 volume as of the Q3 update. The company's FY25E guidance indicated over 90% contracted into domestic markets. That's a lot of eggs in one basket, but it's the basket with the strongest current demand signals.

Finance: draft 13-week cash view by Friday.

Alliance Resource Partners, L.P. (ARLP) - Canvas Business Model: Customer Relationships

You're looking at how Alliance Resource Partners, L.P. locks in its core business, which is definitely built on long-term supply security for its utility customers. The relationships here are not casual; they are cemented by multi-year agreements that provide significant visibility into future cash flows.

Multi-year contracts are key because they mitigate the impact of pricing volatility and give Alliance a clear line of sight on sales volumes. For instance, as of the third quarter of 2025, Alliance Resource Partners, L.P. had 32.3 million tons of coal committed and priced for the full year 2025. This commitment level shows a strong reliance on these agreements.

Here's a look at the contracted position as reported in late 2025:

Metric	2025 Committed Tons	2026 Committed Tons
Domestic Sales Tons	29.5 million	Data not explicitly broken out for 2026 commitment percentage
Export Sales Tons	2.8 million	Data not explicitly broken out for 2026 commitment percentage
Total Committed & Priced Tons	32.3 million	80% of expected 33.4 million tons

The focus on securing future supply is clear; during the second quarter of 2025, Alliance Resource Partners, L.P. added an incremental 17.4 million committed and priced sales tons for delivery between 2025 to 2029. This brought the total new commitments secured in 2025, up to that point, to 35.1 million tons over the next four and a half years. Honestly, this volume of forward contracting suggests customers are prioritizing stability.

Dedicated commercial teams managing domestic utility solicitations are central to this strategy. You see this activity intensify when the regulatory environment is more favorable, as it was heading into late 2025. Alliance Resource Partners, L.P. reported being active in several domestic utility solicitations for 2026 and beyond, especially since they were mostly sold out for the current year.

The service aspect is high-touch, focusing on tangible customer benefits:

• Value placed on product quality.
• Value placed on reliability of service.
• Value placed on counterparty financial strength.

The relationship shifts when you look at the royalty segments. For oil and gas, the relationship is more transactional, driven by the underlying asset performance rather than long-term supply contracts. In the second quarter of 2025, oil and gas royalty volumes increased 7.7% on a BOE basis year-over-year, though the average sales price per BOE dropped 9.6%. By the third quarter of 2025, oil and gas royalty BOE volumes were up 4.1% year-over-year. The Coal Royalties segment generated Segment Adjusted EBITDA of $17.1 million in the third quarter of 2025. To be fair, Alliance Resource Partners, L.P. is still actively investing in this area, with guidance targeting annual investment in the $100 million range for oil and gas mineral interests, though Q3 2025 saw an investment of approximately $22.1 million in a coal-fired power plant indirect ownership.

Finance: draft 13-week cash view by Friday.

Alliance Resource Partners, L.P. (ARLP) - Canvas Business Model: Channels

You're looking at how Alliance Resource Partners, L.P. gets its product-primarily thermal and metallurgical coal, plus royalty income-to the customer base, which spans major utilities, industrial users, and oil and gas developers. This is all about logistics and securing future revenue through contracts.

The primary channel for the core coal business is a direct, relationship-driven sales approach, heavily reliant on long-term contract commitments. This provides revenue stability, which is key when you're managing massive fixed assets like mines.

Alliance Resource Partners, L.P. is 97% committed and priced for its 2025 coal sales volume. Furthermore, for the following year, 80% of the expected 2026 volume is already committed in price. This forward-looking commitment structure is a major channel feature.

Here's a breakdown of the committed and priced sales tons, using the latest reported figures from the third quarter of 2025:

Year	Domestic Committed Tons (Millions)	Export Committed Tons (Millions)	Total Committed Tons (Millions)
2025	29.8	3.0	32.8
2026	27.5	1.6	29.1

For domestic delivery, Alliance Resource Partners, L.P. uses its established rail and barge infrastructure. This physical network moves product from its seven underground mining complexes across the Illinois Basin, Central Appalachian, and Northern Appalachian areas to domestic utility and industrial customers. Operational efficiency in this channel is evident; for instance, the Hamilton and River View mines achieved record monthly shipments in June 2025.

The channel for international sales relies on access to export terminals and ports. The commitment figures show this is a material part of the sales mix, with 3.0 million tons committed for export in 2025, based on third-quarter data. For 2026, the commitment stands at 1.6 million tons for export, with an anticipation of an additional 0.3-0.6 million uncommitted metallurgical tons.

A separate, diversifying channel comes from the Royalties segments, which generate income from third-party operators. This is a passive revenue stream derived from Alliance Resource Partners, L.P.'s ownership of mineral interests.

The Oil & Gas Royalties segment generated revenues of $57.4 million in the third quarter of 2025, representing an 11.9% increase year-over-year. This segment utilizes approximately ~70,000 net royalty acres. Oil & Gas Royalty volumes in the third quarter of 2025 increased to 899 MBOE.

The Coal Royalties segment also contributes through mineral resources leased to its own mining operations. The Coal Royalties segment saw its adjusted EBITDA increase to $17.1 million in the third quarter of 2025, up from $11.1 million in the third quarter of 2024.

You should track the volume metrics for the royalty segment, as they reflect the activity of the third-party operators using Alliance Resource Partners, L.P.'s acreage. Oil & Gas Royalty volumes increased 4.1% year-over-year in the third quarter of 2025.

Finance: draft 13-week cash view by Friday.

Alliance Resource Partners, L.P. (ARLP) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Alliance Resource Partners, L.P. (ARLP) as we move through late 2025. This business is fundamentally about supplying reliable energy sources, primarily thermal coal, to large-scale power generators, but the diversification into royalties is a significant piece of the puzzle now.

Major domestic electric utilities (primary revenue driver)

The backbone of Alliance Resource Partners, L.P.'s revenue comes from the power sector. To be clear, this is where the bulk of the thermal coal volume goes. As of the context surrounding the fourth quarter of 2024, approximately 81% of Alliance Resource Partners, L.P.'s production was sold to domestic electric utilities. Alliance Resource Partners, L.P. is the second largest coal producer in the Eastern United States, and its assets are strategically positioned to meet the rising electricity demand, which is being heavily influenced by factors like AI data center growth.

The company's full-year 2025 guidance for total sales tons sits between 32.75 and 34.00 million tons. The US electric power sector's overall coal consumption is expected to reach 371.7 million st in 2025. This customer segment relies on Alliance Resource Partners, L.P.'s low-cost, tier 1 assets.

International metallurgical and industrial coal users

Alliance Resource Partners, L.P. also serves international markets, supplying both metallurgical and industrial users. The company's committed and priced sales tons for the 2025-2029 period totaled 17.4 million tons as of the second quarter of 2025. Looking at the committed tons guidance provided in the third quarter of 2025, the export portion was projected at 3.0 million tons out of a total of 32.8 million committed tons for the period. The global metallurgical coal market itself is projected to grow by USD 99.6 billion between 2025 and 2029.

Industrial users requiring thermal coal for manufacturing processes

Beyond utilities, Alliance Resource Partners, L.P. supplies industrial users who need thermal coal for various manufacturing needs. This customer group is bundled with the utility sales in the primary coal operations segments. The company's average coal sales price per ton for the second quarter of 2025 was $57.92, representing an 11.3% decrease versus the second quarter of 2024. The company is 97% committed for 2025 sales volume.

Here's a look at the committed sales visibility for the coming years, which speaks to the long-term nature of these industrial and utility relationships:

• 2025 Committed & Priced Sales Tons (Total): 32.8 million (midpoint)
• 2026 Committed & Priced Sales Tons (Total): 29.1 million (midpoint, including 0.8 million option tons)
• Total committed and priced sales tons added for the 2025-2029 period: 17.4 million tons.

Oil and gas E&P companies operating on ARLP's mineral acreage

This segment represents Alliance Resource Partners, L.P.'s royalty income stream, derived from mineral interests leased to Exploration & Production (E&P) companies, particularly in areas like the Permian Basin. This business line contributed to about 25% of Alliance Resource Partners, L.P.'s Adjusted EBITDA based on fourth quarter 2024 figures. The Oil & Gas Royalties segment generated an Adjusted EBITDA of $29.9 million in the second quarter of 2025.

The guidance for the full year 2025 for the Oil & Gas Royalties segment shows the expected production volumes from the E&P operators on their acreage:

Metric	Guidance Range (Q3 2025 Update)
Oil (000 Barrels)	1,575 - 1,625
Natural gas (000 MCF)	6,300 - 6,500
Liquids (000 Barrels)	825 - 875
Segment Adjusted EBITDA Expense (% of Revenue)	~ 14.0%

Oil & Gas Royalties BOE volumes increased by 7.7% year-over-year in the second quarter of 2025, despite a 9.6% lower average sales price per BOE. The royalty tons sold for the Coal Royalties sub-segment in Q3 2025 guidance was between 23.50 and 24.50 Million Short Tons.

Alliance Resource Partners, L.P. (ARLP) - Canvas Business Model: Cost Structure

The Cost Structure for Alliance Resource Partners, L.P. centers heavily on the direct costs associated with mining and preparing coal for delivery, though certain significant costs are managed through pass-through mechanisms.

Coal mining operating expenses (labor, supplies, maintenance) are captured within the Segment Adjusted EBITDA Expense per ton metric, which management uses to assess segment performance. The company anticipated material improvements in production costs throughout 2025, aiming to offset lower realized pricing. Maintenance capital expenditures for 2025 were expected to return to a normalized level of approximately $7.28 per ton produced.

Segment Adjusted EBITDA Expense per ton sold for the nine-month 2025 Period averaged $41.63 per ton, reflecting a cost discipline that lowered this expense by 5.5% compared to the prior year period.

The projected full-year 2025 Segment Adjusted EBITDA Expense per ton guidance showed a clear difference between operating regions:

Segment	Projected Full-Year 2025 Segment Adjusted EBITDA Expense per Ton
Illinois Basin	$35 to $38 per ton
Appalachia	$53 to $60 per ton

Specific quarterly performance showed cost movement; for the third quarter of 2025, the Appalachia Segment Adjusted EBITDA Expense per ton improved 11.7% year-over-year and 12.1% sequentially. For the first quarter of 2025, the overall Segment Adjusted EBITDA expense per ton sold was reported at $42.75.

Capital expenditures for coal operations reflect strategic investments made in prior years expected to yield benefits in 2025 through lower overall capital spending and increased productivity. Total capital expenditures planned for the full year 2025 were projected to be between $285 million and $320 million. This was broken down into estimated maintenance capital of $280 million to $310 million and growth capital of $5 million to $10 million. For the third quarter of 2025, Alliance Resource Partners, L.P. invested $63.8 million in coal operations. This compares to $65,300,000.0 invested in coal operations during the second quarter of 2025.

Depreciation, depletion, and amortization (DD&A) is a non-cash expense included in the calculation of EBITDA. Net income for the nine-month 2025 Period was negatively impacted by higher depreciation compared to the prior year period. Higher D&A also contributed to the decrease in Earnings Per Share for the second quarter of 2025.

Transportation and logistics costs for coal delivery are explicitly excluded when calculating Segment Adjusted EBITDA Expense because these expenses are passed on to customers, meaning Alliance Resource Partners, L.P. does not realize a margin on the associated transportation revenues. However, lower transportation revenues were a factor in the decrease in total revenues reported for the second quarter of 2025 and the third quarter of 2025.

Alliance Resource Partners, L.P. (ARLP) - Canvas Business Model: Revenue Streams

Alliance Resource Partners, L.P.'s revenue streams in late 2025 are anchored in its core coal business, supplemented by significant royalty income and strategic investments.

Total Q3 2025 revenue was $571.4 million. This figure represented a 6.9% decrease from the third quarter of 2024.

Coal sales revenue from domestic and export contracts remains the primary driver, though impacted by lower realized prices per ton.

• Total Coal Sales Volumes for Q3 2025 reached 8.7 million tons, up 3.9% year-over-year.
• The average Coal Sales Price per Ton was $58.78.
• Illinois Basin Coal Operations saw sales volumes increase 10.8% year-over-year to 6.6 million tons.
• Appalachia Coal Operations sales volumes decreased 13.3% to 2.1 million tons.

Oil and gas royalty income contributes to the diversified revenue base.

• Oil and gas royalty BOE volumes increased 4.1% year-over-year in Q3 2025.
• Total Oil & Gas Royalty volumes were 0.899M BOE, with an average price of $35.68/BOE.

Coal royalty income from third-party mining on Alliance Resource Partners, L.P.'s reserves showed strong growth.

• Total royalty revenues were $57.4 million, an 11.9% increase year-over-year.
• Segment Adjusted EBITDA for the Coal Royalties segment increased to $17.1 million in the 2025 Quarter.

Investment income from strategic energy infrastructure and digital assets provides an additional layer of revenue.

• Net income for Q3 2025 included a $3.7 million favorable increase in the fair value of digital assets.
• Investment income from previous growth investments totaled $4.5 million.
• Alliance Resource Partners, L.P. invested $22.1 million as part of a $25.0 million commitment in a limited partnership that indirectly owns and operates a 2.7 gigawatt coal-fired power plant.

Here's a quick look at the key operational and segment revenue figures for Q3 2025:

Revenue/Volume Metric	Value	Period/Comparison
Total Revenue	$571.4 million	Q3 2025
Coal Sales Volume	8.7 million tons	Q3 2025 (up 3.9% YoY)
Average Coal Sales Price per Ton	$58.78	Q3 2025
Oil & Gas Royalty BOE Volume	0.899M BOE	Q3 2025 (up 4.1% YoY)
Coal Royalty Revenue	$57.4 million	Q3 2025 (up 11.9% YoY)
Investment Income (Excl. Digital Assets)	$4.5 million	Q3 2025