EX-99.1 2 dex991.htm PRESENTATION MATERIALS PRESENTATION MATERIALS
MLP Investor Conference
March 7, 2007
Alliance Resource Partners, L.P.
Alliance Holdings GP, L.P.
#
Exhibit 99.1

Forward-Looking Statements
This
presentation
contains
forward-looking
statements
and
information
that
are
based
on
the
beliefs
of
Alliance
Resource
Partners,
L.P.
and
Alliance
Holdings
GP,
L.P.
(the
“Partnerships”)
and
those
of
their
respective general partners (the “General Partners”), as well as assumptions made by and information
currently available
to
them.
When
used
in
this
presentation,
words
such
as
“anticipate,”
“project,”
“expect,”
“plan,”
“goal,”
“forecast,”
“intend,”
“could,”
“believe,”
“may,”
and similar expressions and
statements regarding the plans and objectives of the Partnerships for future operations, are intended to
identify forward-looking statements.
Although the Partnerships and their General Partners believe that such expectations reflected in such
forward-looking statements are reasonable at the time such statements are made, neither the Partnerships 
nor the General Partners can give assurances that such expectations will prove to be correct. Such
statements are subject to a variety of risks, uncertainties and assumptions.  If one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially
from
those
the
Partnerships
anticipated,
estimated,
projected
or
expected.
The Partnerships have no obligation to publicly update or revise
any forward-looking statement, whether as
a result of new information, future events or otherwise.

Alliance  Overview
#

__________________
Diversified producer and marketer of coal to major U.S. utilities and
industrial users
Only publicly-traded master limited partnership involved in the
production and marketing of coal
Began mining operations in 1971
Currently operate eight underground mining complexes in Illinois,
Indiana, Kentucky, Maryland and West Virginia
Approximately 634
million tons of proven and probable coal reserves in
the Illinois Basin, Central Appalachia and Northern Appalachia regions
(a)
Consistent growth through internal development and disciplined
acquisitions
Fourth largest eastern coal producer and ninth largest in the U.S.
(b)
Sixth consecutive year of record performance
(a)
Estimated reserves at 12/31/06.
(b)
Source:
Platts
coal
data
as
of
9/30/06
Alliance Resource Partners, L.P.
1

Two Ways to Invest in Alliance Partnerships
(a)  Includes control group comprised of present and former members of ARLP management
(b)  Includes general partner interest held directly in ARLP’s Intermediate Partnership.
__________________
56.9%
L.P.
Interest
42.1% L.P.
Interest
1.98% General
Partner Interest
Alliance Holdings
GP , L.P.
(NASDAQ: AHGP)
59.9 million units outstanding
Alliance Resource
Partners, L.P.
(NASDAQ: ARLP)
36.6 million units outstanding
Public
Unitholders
Public
Unitholders
Management /
Others
(a)
2
(b)
IDRs
80.0%
L.P.
Interest
20.0%
L.P.
Interest
Distribution growth from ARLP benefits all unitholders
Strong alignment of interests throughout the Alliance Partnerships
Management owns significant interests directly in AHGP and indirectly in ARLP

4
th
largest eastern coal producer
operating 8 underground mining
complexes
634 million tons of reserves at
12/31/06
6.7%
26.0%
$1,389 mm
$1,296 mm
1.76x
$2.16
$35.45
ARLP
$23.31
Unit Price (3/1/07):
$1,395 mm
Equity Market Cap:
Ownership Interests in ARLP
1.98% G.P. Interest
100% of Incentive Distribution Rights
15.5 mm ARLP common units
Asset Profile:
0.0%
Net Debt / Book Cap:
$1,395 mm
Enterprise Value:
$1.00
Distribution:
AHGP
NASDAQ Symbol:
0.0%
Net Debt / Enterprise Value:
1.00x
Total Unit Coverage:
Alliance Partnership Profiles
3

Strong operational and financial attributes of Alliance Resource
Partners, L.P.
Established history of operating and financial performance
Efficient, low-cost operator
Proven track record of executing growth strategy
Favorable long-term industry fundamentals
Experienced management team
Conservative balance sheet with significant liquidity
Visible inventory of growth prospects
Robust distribution coverage at ARLP provides stability and a catalyst for future
growth
Accelerated cash flow growth potential of Alliance Holdings GP, L.P. through
ownership of ARLP incentive distribution rights
Strong economic alignment throughout organization
Management owns significant interests in both ARLP and AHGP
Alliance Investment Highlights
4

Increase cash distributions to unitholders by actively assisting
ARLP in implementing its business strategy
AHGP supports ARLP by assisting with the identification, evaluation and pursuit of
growth opportunities
AHGP may provide ARLP access to AHGP’s capital resources to facilitate such growth
opportunities
Complementary Business Objectives
Alliance Holdings GP, L.P.
5
Create sustainable, capital efficient growth in distributable cash flow to
maximize growth in distributions to ARLP unitholders
Maximize existing asset base –
expand / extend current operations, continuous focus on  
productivity improvements
Build
on
strong
coal
platform
–
develop
new
mining
complexes,
enhance
customer
/
strategic relationships, pursue strategic opportunities
Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P.
Overview

ARLP operates eight underground mining
complexes in all major eastern coal
producing regions
Diversified reserve position in the Illinois
Basin, Central Appalachia and Northern
Appalachia regions
Significant organic development projects
identified in the growing Illinois Basin and
Northern Appalachia high sulfur coal
markets
Alliance Resource Partners, L.P. Snapshot
Unit Price at 3/01/07:
$35.45
Current Annualized Distribution:
$2.16
Current Yield:
6.09%
Equity Market Value:
~$1,296 mm
Enterprise Value:
~$1,389 mm
ARLP Trading Information
6
1
2
3
4
Pattiki Complex
River View Complex
Dotiki Complex
Mount Vernon
Transfer Terminal
5
6
7
8
Warrior Complex
Hopkins Complex
Gibson Complex
Pontiki Complex
9
10
11
12
MC Mining Complex
Tunnel Ridge Complex
Penn Ridge Complex
Mettiki Complex
6
12
12

Operations Summary
Northern
Appalachia
14%
Illinois Basin
71%
Central
Appalachia
15%
2006 Production
Northern
Appalachia
26%
Illinois Basin
68%
Central
Appalachia
6%
Reserves -
2006
7
2006 Summary (MM Tons)
Production
Reserves
Primary Customers
Illinois Basin
Dotiki
4.7
86.7
Seminole; TVA
Warrior
4.5
13.9
Synfuel Solutions; LG&E
Pattiki
2.5
44.4
Corn Products; LG&E
Hopkins
1.6
63.5
Tampa Electric; TVA
River View
-
                 
110.0
-
Gibson (North)
3.6
31.8
Duke Energy; Alabama Electric
Gibson (South)
0.0
82.7
-
Region Total
16.9
433.0
Central Appalachia
Pontiki
1.6
16.7
Progress; Ontario Power
MC Mining
1.9
20.7
Progress; NRG; East KY Power
Region Total
3.5
37.4
Northern Appalachia
Mettiki / Mettiki WV
3.3
36.3
Virginia Electric Power
Tunnel Ridge
-
                 
70.5
-
Penn Ridge
-
                 
56.7
Allegheny Energy
Region Total
3.3
163.5
Total Company
23.7
633.9

Efficient Operator
Source:
Public
filings
EBITDA
margin
represents
EBITDA
/
Total
Revenues.
EBITDA
is
a
non-GAAP
measure.
See
reconciliation
slide
of
EBITDA
to
Net
Income.
ARLP is a low-cost, efficient coal operator, delivering sector-leading EBITDA
margins
__________________ 
8
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Alliance
Consol
Arch
Foundation
Peabody
Alpha
Massey
2003
2004
2005
2006

Focused on Safety
ARLP’s safety
performance has been
consistently better than
our industry peer group
Innovative use of
technology to improve
safety
State-of-the-art Leaky
Feeder mine
communication
systems installed at all
operations
Fiber optic based mine
monitoring systems
installed at all
operations
Currently installing
proprietary Miner
Tracking systems at
all operations
9

__________________ 
Note: EBITDA is a non-GAAP measure defined as income before net interest expense, income taxes and depreciation, depletion and amortization.  See reconciliation slide of EBITDA to Net Income.
(a)
Based
on
the
midpoint
of
management
guidance.
Consistent Track Record of Growth at ARLP
19.2
20.4
22.3
23.7
25.0
10.0
15.0
20.0
25.0
2003
2004
2005
2006
2007E
Production
$523.2
$623.5
$799.6
$920.0
$1,000.0
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
2003
2004
2005
2006
2007E
Revenue
$110.3
$145.1
$193.6
$245.0
$253.4
$50.0
$100.0
$150.0
$200.0
$250.0
2003
2004
2005
2006
2007E
Cash Flow from Operations
$119.0
$147.9
$230.1
$250.0
$270.0
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
2003
2004
2005
2006
2007E
EBITDA
CAGR: 6.8%
CAGR: 17.6%
CAGR: 22.7%
CAGR: 23.1%
(a)
(a)
(a)
10
(a)

$1.05
$1.05
$1.05
$1.05
$1.13
$1.25
$1.30
$1.30
$1.50
$1.50
$1.65
$1.65
$1.84
$1.84
$2.00
$2.00
$2.16
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
Continuous Unit Distribution Growth
ARLP has increased its quarterly distribution by 106% over the last four years
11

Leader in Distribution Growth
ARLP compares favorably to the broad MLP universe in terms of distribution
growth since the beginning of 2004
(a)
12
136%
92%
56%
54%
49%
49%
48%
45%
42%
38%
26%
23%
22%
22%
21%
18%
9%
2%
0%
__________________ 
(a)
Total
distribution
growth
from
distribution
paid
in
the
first
quarter
of
2004
to
the
latest
announced
distribution
as
of
February
27,
2007.

Alliance Holdings GP, L.P.
Overview

Note:
This
graph
shows
the
impact
to
AHGP
as
a
result
of
ARLP
raising
or
lowering
its
quarterly
distribution
from
the
current
announced
quarterly
distribution
of
$0.54
per
common
unit
($2.16
annualized).
This
information
is
presented
for
illustrative
purposes
only
and
is
not
intended
to
be
a
prediction
of
future
performance.
__________________ 
Incentive distribution rights provide AHGP unitholders with significant
financial leverage to ARLP distribution growth
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$1.84
$1.94
$2.04
$2.14
$2.24
$2.34
$2.44
$2.54
$2.64
Hypothetical ARLP Annual Distribution per L.P. Unit
Hypothetical
Distributions to
AHGP
AHGP Leverage to ARLP Growth
G.P.
Interest
IDRs
L.P.
Interest
Current ARLP
Distribution
($2.16 per unit)
13
ARLP Distribution
at AHGP IPO
($1.84 per unit)

Note:
Potential
one
year
ARLP
distribution
growth
over
current
annualized
distribution
level
of
$2.16
and
assuming
36.6
million
common
units
outstanding
at
ARLP
as
of
3/1/07.
__________________ 
Impact of ARLP Distribution Growth
14
AHGP Leverage to ARLP Distribution Growth
ARLP Distribution Growth
0%
10%
20%
30%
40%
0%
5%
10%
15%
20%
9.0%
27.0%
18.0%
36.0%

Benefits of Industry-Leading Distribution Coverage
ARLP’s coverage ratio is among the highest of publicly traded limited
partnerships in the energy sector
(a)
Benefits to AHGP investors include:
Greater potential for future distribution growth
Capital efficient financing for ARLP organic growth projects
Added stability across operating and pricing environments
(a)
Source:
public
filings.
Coverage
calculated
as
2007E
distributable
cash
flow
per
unit
(per
Wall
Street
equity
research)
divided
by
current
annualized
cash
distributions
per
unit.
(b)
Coal
MLP
Index
includes
NRP
and
PVR.
Coverage
calculated
as
2007E
distributable
cash
flow
per
unit
(per
Wall
Street
equity
research)
divided
by
current
annualized
cash
distributions
per
unit.
(c)
Pipeline
MLP
Index
includes
APL,
BPL,
BWP,
XTEX,
DPM,
EEP,
EPD,
ETP,
HLND,
HEP,
KMP,
MMP,
MWE,
MMLP,
PAA,
RGNC,
SXL,
TCLP,
TLP,
TPP,
WPZ
and
VLI.
Coverage
calculated
as
2007E
distributable
cash
flow
(per
Wall
Street
equity
research)
divided
by
current
annualized
cash
distributions.
__________________ 
1.76x
1.25x
1.27x
ARLP
Coal MLP Index
Pipeline MLP Index
(b)
(c)
15

Value Inherent in Underlying Cash Flows
ARLP’s value
proposition becomes
clear through its current
cash available for
distribution
The impact is even more
pronounced at Alliance
Holdings GP due to the
IDR leverage
Implied
Yields
(a)
9.44%
6.77%
10.70%
3.93%
4.41%
6.02%
5.78%
6.09%
5.50%
6.84%
1.50%
3.00%
4.50%
6.00%
7.50%
9.00%
10.50%
12.00%
ARLP
Coal MLPs
Pipeline
MLPs
AHGP
GP
Holdcos
Distributed Yield
Assuming 1.00x Coverage at MLP
(a)
Yields as of 03/01/07.
(b)
Coal MLPs includes NRP and PVR.
(c)
Pipeline MLPs includes APL, BPL, BWP, DPM, XTEX, EEP, EPD, ETP, HLND, HEP, KMP, MMP, MWE, MMLP, PAA, RGNC, SXL, TCLP, TLP, TPP, WPZ and VLI.
(d)
GP Holdcos includes AHD, BGH, XTXI, EPE, ETE, HPGP, MGG, NRGP and VEH.
__________________ 
(c)
(d)
(b)
16

Positioned for Continued Growth

Recent Soft Spot Market Prices have been influenced by:
Generally mild weather
Higher than normal utility stockpiles
Short term increase in coal production in 2006
2007 Outlook
EIA
projects
60
million
ton
swing
in
2007
coal
demand/production
as
demand is projected to increase 2.1% while production is anticipated to
decline 3.1%.
(a)
For 2007, year to date electricity generation is up 8.7% from 2006 due
largely
to
colder
weather
compared
to
2006
(b)
Total U.S.
coal
production
for
2007
is
down
1.9%
ytd
while
eastern
coal
production
is
down
7.3%
ytd
compared
to
2006.
(b)
Current Market Conditions Expected to Improve
(a)
U.S.
Energy
Information
Short-Term
Energy
Outlook;
(b)
Stifel
Nicolaus
“Coal
Supply
and
Demand
Indicators”
February
27,
2007
17

Growing Domestic Coal Demand
Strong U.S. economy
New coal-fired power plants expected to result in
120
MTPY
of
additional
coal
demand
by
2010
(a)
Btu conversion technologies could more than double
U.S.
coal
demand
by
2030
(b)
Constrained Domestic Coal Supply
Regulatory environment –
safety and permitting
Diminishing low cost reserves for Central App
Increasing capital requirements and operating costs
Increasing Global Coal Demand
Global economic expansion continues to drive
escalating demand for energy
Global coal demand has increased by 23% or 1
billion
tons
since
2001
(c)
Worldwide coal demand expected to nearly double
by 2030
(d)
Challenges for Competing Fuels
Nuclear utilization at full capacity
Non-competitive oil and natural gas prices
Continued challenges for LNG
Robust Long-Term Coal Industry Fundamentals
__________________ 
Sources: (a) Energy Information Administration, (b) National Coal Council, (c) BP Statistical Review of World Energy, (d) Department of Energy, Energy Information Administration,         
International Energy Outlook
18

ARLP has Benefited through its Diversity
$25.77
$28.79
$33.65
$36.79
$38.42
$0.00
$10.00
$20.00
$30.00
$40.00
2003
2004
2005
2006
2007E
Coal Sales / Ton Sold
CAGR: 10.5%
19
(a)  See ARLP Press release dated January 29, 2007.
__________________ 
(a)
Markets served
Customer mix
Contracting philosophy
ARLP’s results have been
enhanced by its strategy of
diversifying:

ARLP Is Positioned for Future Sector Growth
Future growth potential for scrubber market bodes well for Alliance high sulfur
operations
Projected Eastern U.S.
Installed Scrubber Capacity
20
0
50
100
150
200
250
300
350
400
450
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0
20
40
60
80
100
120
140
160
180
Scrubber Capacity
Gigawatts
Million Tons
(a)
12,500 Btu equivalent
Gigawatts
(b)
__________________ 
(a)
Assumption
used
to
convert
gigawatts
of
capacity
to
million
tons
of
coal:
9,600
Btu/kwhr
plant
heat
rate,
75%
plant
capacity
factor,
12,500
Btu
coal
(b)
Source:
The
McIlvaine
Company.

ARLP Well Positioned in Scrubber Markets
Illinois Basin
Second largest producer in the basin
Strong reserve base of ~433 million tons of
high and medium sulfur coal
Currently accounts for ~74% of total
ARLP coal production
Northern Appalachia
Strong reserve base of ~164 million tons of
high and medium sulfur coal
Currently accounts for ~13% of total
ARLP coal production
Approximately 597 million tons of “scrubber”
quality coal
21
6
12

Tunnel Ridge
Permitting in progress
Estimated
capital
cost
~
$195
-
$210
million
Estimated reserves ~ 70 million tons high sulfur coal
Production capacity ~ 6 million tons/year
Initial
production
in
2008
–
2010
River View
Updating existing permits
Estimated
capital
cost
~
$130
-
$160
million
Estimated reserves ~ 110 million tons high sulfur coal
Production
capacity
~
3.1
-
4.6
million
tons/year
Initial
production
in
2008
–
2010
Gibson South
Permitting in progress
Estimated
capital
cost
~
$100
-
$110
million
Estimated reserves ~ 83 million tons medium sulfur coal
Production
capacity
~
2.7
-
3.1
million
tons/year
Initial
production
in
2008
–
2010
Large Inventory of Organic Growth Projects
Estimated
capital
costs
are
based
on
2006
dollars
and
exclude
capitalized
development
and
interest
expenses.
Timing
of
anticipated
initial
production
dependent
upon
obtaining
required
permits
and
customer
contracts
`
Penn Ridge
Initiating permitting process
Estimated
capital
cost
~
$165
-
$175
million
Estimated reserves ~ 57 million tons high sulfur coal
Production capacity ~ 5 million tons/year
Initial
production
in
2009
–
2011
22
__________________ 

Summary

Strong operational and financial attributes of Alliance Resource
Partners, L.P.
Established history of operating and financial performance
Efficient, low-cost operator
Proven track record of executing growth strategy
Favorable long-term industry fundamentals
Experienced management team
Conservative balance sheet with significant liquidity
Visible inventory of growth prospects
Robust distribution coverage at ARLP provides stability and a catalyst for future
growth
Accelerated cash flow growth potential of Alliance Holdings GP, L.P. through
ownership of ARLP incentive distribution rights
Strong economic alignment throughout organization
Management owns significant interests in both ARLP and AHGP
Alliance Investment Highlights
23

Appendix

ARLP EBITDA Reconciliation
EBITDA is defined as income before net interest expense, income taxes and depreciation, depletion and amortization. 
Management believes EBITDA is a useful indicator of its ability to meet debt service and capital expenditure
requirements and uses EBITDA as a measure of operating performance.  EBITDA should not be considered as an
alternative to net income, income from operations, cash flows from operating activities or any other measure of
financial performance presented in accordance with generally accepted accounting principles.  EBITDA is not intended
to represent cash flow and does not represent the measure of cash available for distribution.  The Partnership's method
of computing EBITDA may not be the same method used to compute similar measures reported by other companies, or
EBITDA may be computed differently by the Partnership in different contexts (i.e. public reporting versus computation
under financing agreements).  Estimate midpoint reflects the Partnership’s most recent guidance.
24
2007E
2003
2004
2005
2006
Mid-point
Cash flow provided by operating activities
110,312
$  
145,055
$  
193,618
$  
250,923
$  
253,400
$  
Reclamation and mine closing
(1,341)
      
(1,622)
      
(1,918)
      
(2,101)
      
(2,200)
      
Coal inventory adjustment to market
(687)
         
(488)
         
(573)
         
(319)
         
-
           
Other
353
           
(255)
         
(2,057)
      
69
              
(300)
         
Net effect of changes in operating assets and liabilities
(8,240)
      
(12,405)
    
26,577
      
(9,429)
      
6,100
        
Interest expense
15,981
      
14,963
      
11,816
      
9,175
        
10,200
      
Income taxes
2,577
        
2,641
        
2,682
        
2,443
        
2,800
        
EBITDA
118,955
$  
147,889
$  
230,145
$  
250,761
$  
270,000
$  
Depreciation, depletion and amortization
(52,495)
    
(53,664)
    
(55,637)
    
(66,489)
    
(86,800)
    
Interest expense
(15,981)
    
(14,963)
    
(11,816)
    
(9,175)
      
(10,200)
    
Income taxes
(2,577)
      
(2,641)
      
(2,682)
      
(2,443)
      
(2,800)
      
Cumulative effect of accounting change
-
           
-
           
-
           
112
           
-
           
Minority interest income
-
           
-
           
-
           
161
           
(200)
         
Net income
47,902
$    
76,621
$    
160,010
$  
172,927
$  
170,000
$  

MLP Investor Conference
March 7, 2007
Alliance Resource Partners, L.P.
Alliance Holdings GP, L.P.