SCHEDULE I CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2022

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ALLIANCE RESOURCE PARTNERS, L.P.

CONDENSED BALANCE SHEETS (PARENT)

DECEMBER 31, 2022 AND 2021

(In thousands, except unit data)

	December 31,
	2022		2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	2,174	$	2,173
Total current assets		2,174		2,173
OTHER ASSETS:
Investments in consolidated subsidiaries		1,653,951		1,277,110
Total other assets		1,653,951		1,277,110
TOTAL ASSETS	$	1,656,125	$	1,279,283
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accrued taxes other than income taxes	$	100	$	100
Total current liabilities		100		100
Total liabilities		100		100
PARTNERS' CAPITAL:
Limited Partners - Common Unitholders 127,195,219 units outstanding		1,656,025		1,279,183
TOTAL LIABILITIES AND PARTNERS' CAPITAL	$	1,656,125	$	1,279,283

See accompanying notes.

CONDENSED STATEMENTS OF OPERATIONS (PARENT)

FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020

(In thousands, except unit and per unit data)

	Year Ended December 31,
	2022		2021		2020
Interest income	$	—	$	—	$	24
Equity in earnings of consolidated subsidiaries		577,190		178,157		(129,244)
NET INCOME (LOSS) ATTRIBUTABLE TO ARLP	$	577,190	$	178,157	$	(129,220)
EARNINGS PER LIMITED PARTNER UNIT - BASIC AND DILUTED	$	4.39	$	1.36	$	(1.02)
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED		127,195,219		127,195,219		127,164,659

See accompanying notes.

CONDENSED STATEMENTS OF CASH FLOWS (PARENT)

FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020

(In thousands)

	Year Ended December 31,
	2022		2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES:	$	196,348	$	52,157	$	51,751
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions paid to Partners		(196,347)		(52,158)		(51,753)
Net cash used in financing activities		(196,347)		(52,158)		(51,753)
NET CHANGE IN CASH AND CASH EQUIVALENTS		1		(1)		(2)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		2,173		2,174		2,176
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	2,174	$	2,173	$	2,174

See accompanying notes.

NOTES TO FINANCIAL INFORMATION (PARENT)

1.BASIS OF PRESENTATION

In these parent-company-only financial statements, our investment in consolidated subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries and reduced by distributions received from subsidiaries since the date of acquisition.  These parent-company-only financial statements should be read in conjunction with our consolidated financial statements in "Item 8. Financial Statements and Supplementary Data" of this Annual Report on Form 10-K.

2.GUARANTEES

As the parent of the Intermediate Partnership, ARLP was a guarantor of the Replaced Credit Facility and is a guarantor of the Senior Notes discussed in "Item 8. Financial Statements and Supplementary Data—Note 8 – Long-Term Debt" of this Annual Report on Form 10-K.  In addition to these guarantees, ARLP has provided guarantees on surety indemnity agreements and financially guaranteed certain coal supply agreements. The duration of these guarantees varies. The maximum undiscounted potential future payment obligation for our guarantees of certain coal supply agreements as of December 31, 2022 is approximately $425.6 million as a result of elevated market prices.  These guarantees provide for compensation to customers based on additional cost to the customer to replace any contracted tons that our subsidiaries fail to deliver.  We do not expect to make any payments under these guarantees.  

3.CASH DISTRIBUTIONS RECEIVED

We received distributions of $196.3 million, $52.2 million and $51.8 million from our consolidated subsidiaries during the years ended December 31, 2022, 2021, and 2020, respectively.