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What changed in ALLIANCE RESOURCE PARTNERS LP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of ALLIANCE RESOURCE PARTNERS LP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+626 added−623 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-23)

Top changes in ALLIANCE RESOURCE PARTNERS LP's 2024 10-K

626 paragraphs added · 623 removed · 503 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

164 edited+37 added−41 removed119 unchanged
Biggest changeWe market our coal mineral reserves and resources to the coal mining operations that are able to access them and generate royalty income from the leasing and development of those coal mineral reserves and resources. ​ We have invested in energy and infrastructure opportunities including Ascend, Francis, Infinitum, and NGP ET IV as described below. ​ In addition, through our technology company, Matrix Group, we develop and market industrial, mining and technology products and services worldwide. ​ ARLP, a Delaware limited partnership, completed its initial public offering on August 19, 1999, and is listed on the NASDAQ Global Select Market under the ticker symbol "ARLP." We are managed by our sole general partner, MGP, a Delaware limited liability company, which holds a non-economic general partner interest in ARLP. ​ Oil & Gas Acquisitions ​ The following acquisitions enhance our ownership position in the Permian Basin and further our business strategy to grow our Oil & Gas Royalties segment. ​ 1 Table of Contents Acquisition Agreement ​ On January 27, 2023, we entered into a one-year collaborative agreement with a third party effective January 1, 2023, committing up to $35.0 million for the acquisition of oil & gas mineral interests in the Midland and Delaware basins.
Biggest changeWe have also invested in energy and infrastructure opportunities including Ascend, Francis, Infinitum, and NGP ET IV. ​ ARLP, a Delaware limited partnership, completed its initial public offering on August 19, 1999, and is listed on the NASDAQ Global Select Market under the ticker symbol “ARLP.” We are managed by our sole general partner, MGP, a Delaware limited liability company, which holds a non-economic general partner interest in ARLP. ​ Joint Development Agreement ​ On January 16, 2024, Matrix Design entered into an agreement with Infinitum to jointly develop and distribute high-efficiency motors and advanced motor controllers designed specifically for the mining industry.
Failure of the parties to agree on a price pursuant to an adjustment or a reopener provision can, in some instances, lead to the early termination of a contract.
The failure of the parties to agree on a price pursuant to an adjustment or a reopener provision can, in some instances, lead to the early termination of a contract.
In addition, we seek to export a portion of our coal into the international coal markets and we compete with companies that produce coal from one or more foreign countries. ​ The price per ton for our export coal sales is influenced by many factors, such as global economic conditions, weather patterns, and global supply and demand, among others.
In addition, we seek to export a portion of our coal into international coal markets and we compete with companies that produce coal from one or more foreign countries. ​ The price per ton for our export coal sales is influenced by many factors, such as global economic conditions, weather patterns, and global supply and demand, among others.
Although we have not quantified the full impact, implementing and complying with these new federal and state safety laws and regulations have had, and are expected to continue to have, an adverse impact on our results of operations and financial position. ​ Black Lung Benefits Act ​ The BLBA requires businesses that conduct current mining operations to make payments of black lung benefits to current and former coal miners with black lung disease, to some survivors of a miner who dies from this disease, and to a trust fund for the payment of benefits and medical expenses under circumstances including where no responsible coal mine operator has been identified for claims.
Although we have not quantified the full impact, implementing and complying with these new federal and state safety laws and regulations has had, and are expected to continue to have, an adverse impact on our results of operations and financial position. ​ Black Lung Benefits Act ​ The BLBA requires businesses that conduct current mining operations to make payments of black lung benefits to current and former coal miners with black lung disease, to some survivors of a miner who dies from this disease, and to a trust fund for the payment of benefits and medical expenses under circumstances including where no responsible coal mine operator has been identified for claims.
In addition to purchasing or trading for additional sulfur dioxide allowances, affected power facilities can satisfy the requirements of the EPA ' s Acid Rain Program by switching to lower-sulfur fuels, installing pollution control devices such as flue gas desulfurization systems, or " scrubbers, " or by reducing electricity-generating levels.
In addition to purchasing or trading for additional sulfur dioxide allowances, affected power facilities can satisfy the requirements of the EPA ’ s Acid Rain Program by switching to lower-sulfur fuels, installing pollution control devices such as flue gas desulfurization systems, or “ scrubbers, ” or by reducing electricity-generating levels.
Francis also develops and contracts EV charging stations for third-party customers. ​ Infinitum is a Texas-based developer and manufacturer of electric motors featuring printed circuit board stators that have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. ​ NGP ET IV focuses on investments that are part of the global transition toward a lower carbon economy by partnering with top-tier management teams and investing growth equity in companies that drive or enable the growth of renewable energy, the electrification of our economy, or the efficient use of energy. ​ Environmental, Health, and Safety Regulations ​ Our coal operations, and those of the operators on the properties in which we hold oil & gas mineral interests, are subject to extensive regulation by federal, state, and local authorities on matters such as: ​ ● employee health and safety; ● permits and other licensing requirements for mining or exploration and production activities; ● air quality standards; ● water quality standards; ● storage of petroleum products and substances that are regarded as hazardous under applicable laws or that, if spilled, could reach waterways or wetlands; ● plant and wildlife protection that could limit or prohibit mining or exploration and production activities; ● restrict the types, quantities, and concentration of materials that can be released into the environment in the performance of mining or exploration and production activities; ● initiate investigatory and remedial measures to mitigate pollution from former or current operations, such as restoration of waste ponds, mining areas, drilling pits, and plugging of abandoned wells; ● storage and handling of explosives; ● wetlands protection; ● surface subsidence from underground mining; and ● the effects, if any, that mining has on groundwater quality and availability. ​ 15 Table of Contents Failure to comply with environmental laws and regulations may result in the assessment of administrative, civil, and criminal sanctions, including monetary penalties, the imposition of strict, joint and several liability, investigatory and remedial obligations, and the issuance of injunctions limiting or prohibiting some or all of the operations on our properties.
Francis also develops and contracts EV charging stations for third-party customers. ​ ● Infinitum is a Texas-based developer and manufacturer of electric motors featuring printed circuit board stators that have the potential to result in motors that are smaller, lighter, quieter, more efficient and capable of operating at a fraction of the carbon footprint of conventional electric motors. ​ ● NGP ET IV focuses on investments that are part of the global transition toward a lower carbon economy by partnering with top-tier management teams and investing growth equity in companies that drive or enable the growth of renewable energy, the electrification of our economy, or the efficient use of energy. ​ Environmental, Health, and Safety Regulations ​ Our coal operations, and those of the operators on the properties in which we hold oil & gas mineral interests, are subject to extensive regulation by federal, state, and local authorities on matters such as: ​ ● employee health and safety; ● permits and other licensing requirements for mining or exploration and production activities; ● air quality standards; ● water quality standards; ● storage of petroleum products and substances that are regarded as hazardous under applicable laws or that, if spilled, could reach waterways or wetlands; ● plant and wildlife protection that could limit or prohibit mining or exploration and production activities; ● restrict the types, quantities, and concentration of materials that can be released into the environment in the performance of mining or exploration and production activities; ● initiate investigatory and remedial measures to mitigate pollution from former or current operations, such as restoration of waste ponds, mining areas, drilling pits, and plugging of abandoned wells; ● storage and handling of explosives; 14 Table of Contents ● wetlands protection; ● surface subsidence from underground mining; and ● the effects, if any, that mining has on groundwater quality and availability. ​ Failure to comply with environmental laws and regulations may result in the assessment of administrative, civil, and criminal sanctions, including monetary penalties, the imposition of strict, joint and several liability, investigatory and remedial obligations, and the issuance of injunctions limiting or prohibiting some or all of the operations on our properties.
For more information concerning our requirement to maintain bonds to secure our workers' compensation obligations, see the discussion of surety bonds below under "—Bonding Requirements." ​ The Patient Protection and Affordable Care Act, enacted in 2010, includes significant changes to the federal black lung program retroactive to 2005, including an automatic survivor benefit paid upon the death of a miner with an awarded black lung claim and establishes a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition.
For more information concerning our requirement to maintain bonds to secure our workers’ compensation obligations, see the discussion of surety bonds below under “—Bonding Requirements.” ​ The Patient Protection and Affordable Care Act, enacted in 2010, includes significant changes to the federal black lung program retroactive to 2005, including an automatic survivor benefit paid upon the death of a miner with an awarded black lung claim and establishes a rebuttable presumption with regard to pneumoconiosis among miners with 15 or more years of coal mine employment that are totally disabled by a respiratory condition.
We believe that our diverse and rich resource base and strategic investments will allow us to continue to create long-term value for unitholders. ​ We are the largest coal producer in the eastern United States with seven operating underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia as well as a coal-loading terminal in Indiana on the Ohio River.
We believe that our diverse and rich resource base and strategic investments will allow us to continue to create long-term value for unitholders. ​ We are the second largest coal producer in the eastern United States with seven operating underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia as well as a coal-loading terminal in Indiana on the Ohio River.
ITEM 1. BUSINESS ​ Introduction ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic and international utilities and industrial users as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
ITEM 1. BUSINESS ​ Introduction ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
In addition, most of the states where we operate have state programs for mine safety and health regulation and enforcement. Federal and state safety and health regulations affecting the coal mining industry are perhaps the most comprehensive and rigorous system in the United States for the protection of employee safety and have a significant effect on our operating costs.
In addition, the states where we operate have individual state programs for mine safety and health regulation and enforcement. Federal and state safety and health regulations affecting the coal mining industry are perhaps the most comprehensive and rigorous system in the United States for the protection of employee safety and have a significant effect on our operating costs.
The most important factors on which we compete are coal price, coal quality (including sulfur and heat content), reliability and diversity of supply, and transportation costs from the mine to the customer. We are the largest coal producer in the eastern United States.
The most important factors on which we compete are coal price, coal quality (including sulfur and heat content), reliability and diversity of supply, and transportation costs from the mine to the customer. We are the second largest coal producer in the eastern United States.
GIBSON COMPLEX ​ Warrior Mine ​ Mountain View Mine ​ Gibson South Mine ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Access: Slope & Shaft ​ Mining Access: Slope & Shaft ​ ​ Mining Access: Slope & Shaft ​ Mining Method: Room & Pillar ​ Mining Method: Longwall ​ ​ Mining Method: Room & Pillar ​ Coal Type: Medium/High-Sulfur ​ & Continuous Miner ​ ​ Coal Type: Low/Medium-Sulfur ​ Transportation: Barge, Railroad, ​ Coal Type: Low/Medium ​ ​ Transportation: Barge, Railroad ​ & Truck ​ Sulfur - Metallurgical ​ ​ & Truck ​ ​ ​ Transportation: Railroad ​ ​ ​ ​ E.
GIBSON COMPLEX ​ Warrior Mine ​ Mountain View Mine ​ Gibson South Mine ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Type: Underground ​ Mining Access: Slope & Shaft ​ Mining Access: Slope & Shaft ​ ​ Mining Access: Slope & Shaft ​ Mining Method: Room-and-Pillar ​ Mining Method: Longwall ​ ​ Mining Method: Room-and-Pillar ​ Coal Type: Medium/High-Sulfur ​ & Continuous Miner ​ ​ Coal Type: Low/Medium-Sulfur ​ Transportation: Barge, Railroad, ​ Coal Type: Low/Medium ​ ​ Transportation: Barge, Railroad ​ & Truck ​ Sulfur - Metallurgical ​ ​ & Truck ​ ​ ​ Transportation: Railroad ​ ​ ​ ​ E.
HAMILTON COMPLEX ​ Mining Method: Longwall ​ ​ ​ ​ Hamilton Mine ​ & Continuous Miner ​ ​ ​ ​ Mining Type: Underground ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ Mining Access: Slope & Shaft ​ Transportation: Barge ​ ​ ​ ​ Mining Method: Longwall ​ ​ ​ ​ ​ ​ & Continuous Miner ​ ​ ​ ​ ​ ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ ​ ​ Transportation: Barge, Railroad ​ ​ ​ ​ ​ ​ & Truck ​ ​ ​ ​ ​ ​ 5 Table of Contents We lease most of our coal mineral reserves and resources from Alliance Resource Properties or private parties and generally have the right to maintain leases in force until the exhaustion of mineable and merchantable coal located within the leased premises or a larger coal mineral reserve or resource area.
HAMILTON COMPLEX ​ Mining Method: Longwall ​ ​ ​ ​ Hamilton Mine ​ & Continuous Miner ​ ​ ​ ​ Mining Type: Underground ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ Mining Access: Slope & Shaft ​ Transportation: Barge ​ ​ ​ ​ Mining Method: Longwall ​ ​ ​ ​ ​ ​ & Continuous Miner ​ ​ ​ ​ ​ ​ Coal Type: Medium/High-Sulfur ​ ​ ​ ​ ​ ​ Transportation: Barge, Railroad ​ ​ ​ ​ ​ ​ & Truck ​ ​ ​ ​ ​ ​ 4 Table of Contents We lease most of our coal mineral reserves and resources from Alliance Resource Properties or private parties and generally have the right to maintain leases in force until the exhaustion of mineable and merchantable coal located within the leased premises or a larger coal mineral reserve or resource area.
Tunnel Ridge has the ability through a third-party facility to transload coal from barges for rail shipment on the Wheeling and Lake Erie Railway with connections to the CSX and the NS railroads.
Tunnel Ridge also has the ability through a third-party facility to transload coal from barges for rail shipment on the Wheeling and Lake Erie Railway with connections to the CSX and the NS railroads.
The price per ton for our domestic coal sales are primarily linked to coal consumption patterns of domestic electricity-generating utilities, which in turn are influenced by economic activity, government regulations, weather, and technological developments, as well as the location, quality, price and availability of competing sources of fuel and alternative energy sources such as natural gas, nuclear energy, petroleum and renewable energy sources for electrical power generation. ​ For additional information, please see "Item 1A.
The price per ton for our domestic coal sales are primarily linked to coal consumption patterns of domestic electricity-generating utilities, which in turn are influenced by economic activity, government regulations, weather, and technological developments, as well as the location, quality, price and availability of competing sources of fuel and alternative energy sources such as natural gas, nuclear energy, petroleum and renewable energy sources for electrical power generation. ​ For additional information, please see “Item 1A.
For example, in January 2021, President Biden issued an executive order that commits to substantial action on climate change, calling for, among other things, the increased use of zero-emissions vehicles by the federal government, the elimination of subsidies provided to the fossil-fuel industry, a doubling of electricity generated by offshore wind by 2030, and increased emphasis on climate-related risks across governmental agencies and economic sectors.
For example, in January 2021, President Biden issued an executive order that committed to substantial action on climate change, calling for, among other things, the increased use of zero-emissions vehicles by the federal government, the elimination of subsidies provided to the fossil-fuel industry, a doubling of electricity generated by offshore wind by 2030, and increased emphasis on climate-related risks across governmental agencies and economic sectors.
Although like other coal companies, we have been cited for violations in the ordinary course of our business, we have never had a permit suspended or revoked because of any violation, and the penalties assessed for these violations have not been material. ​ 16 Table of Contents Mine Health and Safety Laws ​ The operation of our mines is subject to FMSHA, and regulations adopted pursuant thereto.
Although like other coal companies, we have been cited for violations in the ordinary course of our business, we have never had a permit suspended or revoked because of any violation, and the penalties assessed for these violations have not been material. 15 Table of Contents ​ Mine Health and Safety Laws ​ The operation of our mines is subject to FMSHA, and regulations adopted pursuant thereto.
MC MINING COMPLEX ​ ​ b) Henderson County Mine ​ Transloading Facility ​ Excel Mine No. 5 ​ ​ Mining Type: Underground ​ ​ ​ Mining Type: Underground ​ ​ Mining Access: Slope & Shaft ​ Appalachian Operations: ​ Mining Access: Slope & Shaft ​ ​ Mining Method: Room & Pillar ​ F.
MC MINING COMPLEX ​ ​ b) Henderson County Mine ​ Transloading Facility ​ Excel Mine No. 5 ​ ​ Mining Type: Underground ​ ​ ​ Mining Type: Underground ​ ​ Mining Access: Slope & Shaft ​ Appalachian Operations: ​ Mining Access: Slope & Shaft ​ ​ Mining Method: Room-and-Pillar ​ F.
TUNNEL RIDGE COMPLEX ​ Mining Method: Room & Pillar ​ ​ Coal Type: Medium/High-Sulfur ​ Tunnel Ridge Mine ​ Coal Type: Low-Sulfur ​ ​ Transportation: Barge & Truck ​ Mining Type: Underground ​ Transportation: Barge, Railroad, ​ ​ ​ ​ Mining Access: Slope & Shaft ​ & Truck ​ ​ C.
TUNNEL RIDGE COMPLEX ​ Mining Method: Room-and-Pillar ​ ​ Coal Type: Medium/High-Sulfur ​ Tunnel Ridge Mine ​ Coal Type: Low-Sulfur ​ ​ Transportation: Barge & Truck ​ Mining Type: Underground ​ Transportation: Barge, Railroad, ​ ​ ​ ​ Mining Access: Slope & Shaft ​ & Truck ​ ​ C.
Based on geologic data and the ongoing development by operators, our mineral interests in the STACK play contain multiple producing zones of economic horizontal development including but not limited to the Meramec and Woodford formations. ​ 10 Table of Contents Williston Basin—Bakken ​ The Williston Basin stretches from western North Dakota into eastern Montana.
Based on geologic data and the ongoing development by operators, our mineral interests in the STACK play contain multiple producing zones of economic horizontal development including but not limited to the Meramec and Woodford formations. ​ 9 Table of Contents Williston Basin—Bakken ​ The Williston Basin stretches from western North Dakota into eastern Montana.
Continued demand for our coal and the prices that our lessees obtain are also affected by the demand for electricity and steel, as well as government regulations, technological developments, and the availability and the cost of generating power from alternative fuel sources, including nuclear, natural gas, wind, solar, and hydroelectric power. ​ For additional information, please see "Item 1A.
Continued demand for our coal and the prices that our lessees obtain are also affected by the demand for electricity and steel, as well as government regulations, technological developments, and the availability and the cost of generating power from alternative fuel sources, including nuclear, natural gas, wind, solar, and hydroelectric power. ​ For additional information, please see “Item 1A.
The Partnership also administers our medical plan, which allows us to control costs and work directly on behalf of our employees with healthcare providers. To date, we have been able to continue providing health and welfare benefits with no out-of-pocket premiums for our employees and 100% coverage with direct contract providers. ​ 27 Table of Contents
The Partnership also administers our medical plan, which allows us to control costs and work directly on behalf of our employees with healthcare providers. To date, we have been able to continue providing health and welfare benefits with no out-of-pocket premiums for our employees and 100% coverage with direct contract providers. ​ 26 Table of Contents ​
Financial Statements and Supplementary Data—Note 18 - Asset Retirement Obligations." Although more stringent permitting requirements may be imposed in the future, we are not able to accurately predict the impact, if any, of such permitting requirements. ​ For us or the operators of the properties in which we hold oil & gas mineral interests to conduct certain activities, an operator may need to obtain a permit for the discharge of fill material from the Corps of Engineers and/or a discharge permit from the state regulatory authority under the state counterpart to the CWA.
Financial Statements and Supplementary Data—Note 15 - Asset Retirement Obligations.” Although more stringent permitting requirements may be imposed in the future, we are not able to accurately predict the impact, if any, of such permitting requirements. ​ For us or the operators of the properties in which we hold oil & gas mineral interests to conduct certain activities, an operator may need to obtain a permit for the discharge of fill material from the Corps of Engineers and/or a discharge permit from the state regulatory authority under the state counterpart to the CWA.
The contractual time commitments 7 Table of Contents for customers to nominate future purchase volumes under these contracts are typically sufficient to allow us to balance our sales commitments with prospective production capacity. ​ The provisions of long-term contracts are the results of both bidding procedures and extensive negotiations with each customer.
The contractual time commitments for customers to nominate future purchase volumes under these contracts are typically sufficient to allow us to balance our sales commitments with prospective production capacity. ​ 6 Table of Contents The provisions of long-term contracts are the results of both bidding procedures and extensive negotiations with each customer.
However, we cannot assure you that such claims will not be asserted in the future. ​ Bonding Requirements ​ Federal and state laws require bonds to secure our obligations to reclaim lands used for mining, to pay federal and state workers' compensation, to pay certain black lung claims, and to satisfy other miscellaneous obligations.
However, we cannot assure you that such claims will not be asserted in the future. ​ Bonding Requirements ​ Federal and state laws require bonds to secure our obligations to reclaim lands used for mining, to pay federal and state workers’ compensation, to pay certain black lung claims or estimated black lung claims, and to satisfy other miscellaneous obligations.
While these laws impose ongoing compliance obligations, such costs are not believed to have a material impact on our operations. ​ RCRA impacts the coal industry in particular because it regulates the disposal of certain CCB. On April 17, 2015, the EPA finalized regulations under RCRA for the disposal of CCB.
While these laws impose ongoing compliance obligations, such costs are not believed to have a material impact on our operations. ​ RCRA impacts the coal industry in particular because it regulates the disposal of certain CCR. On April 17, 2015, the EPA finalized regulations under RCRA for the disposal of CCR.
Our failure to maintain or inability to acquire, surety bonds that are required by federal and state laws would have a material adverse effect on our ability to produce coal, which could affect our profitability and cash flow. For additional information, please see "Item 7.
Our failure to maintain or inability to acquire surety bonds that are required by federal and state laws would have a material adverse effect on our ability to produce coal, which could affect our profitability and cash flow. For additional information, please see “Item 7.
For more information, see our risk factor titled "We, our customers, or the operators of our oil & gas mineral interests could be subject to litigation related to climate change." ​ In addition, environmental advocacy groups have filed a variety of judicial challenges claiming that the environmental analyses conducted by federal agencies before granting permits and other approvals necessary for certain coal activities do not satisfy the requirements of the NEPA.
For more information, see our risk factor titled “We, our customers, or the operators of our oil & gas mineral interests could be subject to litigation related to climate change.” ​ In addition, environmental advocacy groups have filed a variety of judicial challenges claiming that the environmental analyses conducted by federal agencies before granting permits and other approvals necessary for certain coal activities do not satisfy the requirements of the NEPA.
Although the impacts of the potential final rule are unknown, the MATS rule has forced electric power generators to make capital investments to retrofit power plants and could lead to additional premature retirements of older coal-fired generating units and many electric power generators have already announced retirements due to the uncertainty surrounding the MATS rule.
Although the impacts of the final rule are unknown, the MATS program has already forced electric power generators to make capital investments to retrofit power plants and could lead to additional premature retirements of older coal-fired generating units and many electric power generators have already announced retirements due to the uncertainty surrounding the MATS rule.
For more information, see our Risk Factor titled "Our operations are subject to a series of risks resulting from climate change." ​ Water Discharge ​ The CWA and similar state and local laws and regulations regulate discharges into certain waters, primarily through permitting.
For more information, see our Risk Factor titled “Our operations are subject to a series of risks resulting from climate change.” ​ Water Discharge ​ The CWA and similar state and local laws and regulations regulate discharges into certain waters, primarily through permitting.
Although permitting requirements have been tightened in recent years, we believe we have obtained all necessary permits required under CWA Section 404 as it has traditionally been interpreted by the responsible agencies. However, mitigation requirements under existing and possible future "fill" permits may vary considerably.
Although permitting requirements have been tightened in recent years, we believe we have obtained all necessary permits required under CWA Section 404 as it has traditionally been interpreted by the responsible agencies. However, mitigation requirements under existing and possible future “fill” permits may vary considerably.
In October 2021, the Northern District of California federal court vacated a 2020 rule revising the Section 401 certification process. The Supreme Court stayed this vacatur and, in September 2023, the EPA finalized its Clean Water Act Section 401 Water Quality Certification Improvement Rule, effective on November 27, 2023.
In October 2021, the Northern District of California federal court vacated a 2020 rule revising the Section 401 certification process. The U.S. Supreme Court stayed this vacatur and, in September 2023, the EPA finalized its Clean Water Act Section 401 Water Quality Certification Improvement Rule, effective on November 27, 2023.
As a result, some states will be required to amend their existing SIPs to attain and maintain compliance with the new air quality standards and other states will be required to develop new SIPs for areas that were previously in "attainment" but do not attain the new standards.
As a result, some states will be required to amend their existing SIPs to attain and maintain compliance with the new air quality standards and other states will be required to develop new SIPs for areas that were previously in “attainment” but do not attain the new standards.
For that reason, the setting of post-mine asset retirement obligation accruals for such mitigation projects is difficult to ascertain with certainty and may increase in the future. For more information about asset retirement obligations, please read "Item 8.
For that reason, the setting of post-mine asset retirement obligation accruals for such mitigation projects is difficult to ascertain with certainty and may increase in the future. For more information about asset retirement obligations, please read “Item 8.
The combined effect of the CCB rules and the ELG regulations (discussed below) has compelled power generating companies to close existing ash ponds and may force the closure of certain existing coal burning power plants that cannot comply with the new standards.
The combined effect of the CCR rules and the ELG regulations (discussed below) has compelled power generating companies to close existing ash ponds and may force the closure of certain existing coal burning power plants that cannot comply with the new standards.
Our principal competitors include American Consolidated Natural Resources Inc., CONSOL Energy, Inc., Alpha Metallurgical Resources, Inc., Foresight Energy LP, and Peabody Energy Corporation. We also compete directly with smaller producers in the Illinois Basin and Appalachian regions.
Our principal competitors include American Consolidated Natural Resources Inc., Core Natural Resources, Inc., Alpha Metallurgical Resources, Inc., Foresight Energy LP, and Peabody Energy Corporation. We also compete directly with smaller producers in the Illinois Basin and Appalachian regions.
The CCB rule was subject to legal challenge and ultimately remanded to the EPA. On August 28, 2020, the EPA published a final revised rule mandating the closure of unlined impoundments, with deadlines to initiate closure between 2021 and 2028, depending on site-specific circumstances. Certain provisions of the revised CCB rule were vacated by the D.C. Circuit in 2018.
The CCR rule was subject to legal challenge and ultimately remanded to the EPA. On August 28, 2020, the EPA published a final revised rule mandating the closure of unlined impoundments, with deadlines to initiate closure between 2021 and 2028, depending on site-specific circumstances. Certain provisions of the revised CCR rule were vacated by the D.C. Circuit Court in 2018.
We market our coal production to major domestic and international utilities and industrial users. ​ We own mineral and royalty interests in approximately 67,700 net royalty acres, including approximately 4,000 net royalty acres attributable to our equity interest in AllDale III, in premier oil & gas producing regions in the United States, primarily the Permian, Anadarko, and Williston Basins.
We market our coal production to major domestic and international utilities and industrial users. ​ We own mineral and royalty interests in approximately 70,000 net royalty acres, including approximately 4,000 net royalty acres attributable to our equity interest in AllDale III, in premier oil & gas producing regions in the United States, primarily the Permian, Anadarko, and Williston Basins.
Financial Statements and Supplementary Data—Note 18 – Asset Retirement Obligations." ​ In addition, the Abandoned Mine Lands Program, which is part of SMCRA and relates to industry-wide operations, imposes a reclamation fee on all current mining operations, the proceeds of which are used to restore mines closed before 1977.
Financial Statements and Supplementary Data—Note 15 – Asset Retirement Obligations.” ​ In addition, the Abandoned Mine Lands Program, which is part of SMCRA and relates to industry-wide operations, imposes a reclamation fee on all current mining operations, the proceeds of which are used to restore mines closed before 1977.
In addition, states from time to time have increased and may continue to increase their fees and taxes to fund reclamation or orphaned mine sites and acid mine drainage control on a statewide basis. ​ Under SMCRA, responsibility for unabated violations, unpaid civil penalties, and unpaid reclamation fees of independent contract mine operators and other third parties can be imputed to other companies that are deemed, according to the regulations, to have "owned" or "controlled" the third-party violator.
In addition, states from time to time have increased and may continue to increase their fees and taxes to fund reclamation or orphaned mine sites and acid mine drainage control on a statewide basis. ​ Under SMCRA, responsibility for unabated violations, unpaid civil penalties, and unpaid reclamation fees of independent contract mine operators and other third parties can be imputed to other companies that are deemed, according to the regulations, to have “owned” or “controlled” the third-party violator.
We continue to evaluate the possible scenarios associated with CSAPR updates and MATS and the effects they may have on our business and our results of operations, financial condition, or cash flows. 20 Table of Contents ​ ● The CAA requires the EPA to periodically reevaluate the available health effects information to determine whether the NAAQS should be revised.
We continue to evaluate the possible scenarios associated with CSAPR updates and MATS and the effects they may have on our business and our results of operations, financial condition, or cash flows. ​ ● The CAA requires the EPA to periodically reevaluate the available health effects information to determine whether the NAAQS should be revised.
In September 2018, the EPA issued a memorandum that detailed plans to assist states as they develop their SIPs, which was followed by a supplemental memorandum in July 2021 for SIPs for the second implementation period. ​ ● The EPA ' s NSR program under the CAA in certain circumstances requires existing coal-fired power plants, when modifications to those plants significantly increase emissions, to install more stringent air emissions control equipment.
In September 2018, the EPA issued a memorandum that detailed plans to assist states as they develop their SIPs, which was followed by a supplemental memorandum in July 2021 for SIPs for the second implementation period. ​ 20 Table of Contents ● The EPA ’ s NSR program under the CAA in certain circumstances requires existing coal-fired power plants, when modifications to those plants significantly increase emissions, to install more stringent air emissions control equipment.
Lessees calculate royalty payments due to us and are required to report tons of coal mined and sold as well as the sales prices of the extracted coal. ​ The following chart summarizes the coal sales associated with our coal mineral interests for the years ended December 31, 2023, 2022 and 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2023 2022 2021 ​ ​ (tons in millions) Illinois Basin 19.9 21.2 18.9 ​ Appalachia 0.3 0.6 1.3 ​ Total 20.2 21.8 20.2 ​ ​ 11 Table of Contents The following map shows the location of our coal mineral interests: ​ ​ ​ ​ ​ ​ ​ Illinois Basin: ​ ​ Appalachian Basin: ​ A.
Lessees calculate royalty payments due to us and are required to report tons of coal mined and sold as well as the sales prices of the extracted coal. ​ The following chart summarizes the coal sales associated with our coal mineral interests for the years ended December 31, 2024, 2023 and 2022. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2024 2023 2022 ​ ​ (tons in millions) Illinois Basin 19.8 19.9 21.2 ​ Appalachia 1.3 0.3 0.6 ​ Total 21.1 20.2 21.8 ​ ​ 10 Table of Contents The following map shows the location of our coal mineral interests: ​ ​ ​ ​ ​ ​ ​ Illinois Basin: ​ ​ Appalachian Basin: ​ A.
In June 2011, the EPA finalized the CSAPR, a replacement rule for CAIR, which would have required twenty-eight states in the Midwest and eastern seaboard to reduce power plant emissions that cross state lines and contribute to ozone and/or fine particle pollution in other states.
In June 2011, the EPA finalized the CSAPR, a replacement rule for CAIR, which would have required 28 states in the Midwest and eastern seaboard to reduce power plant emissions that cross state lines and contribute to ozone and/or fine particle pollution in other states.
For more information about citations or orders for violations of standards under the FMSHA, as amended by the MINER Act, please see our Exhibit 95.1 to this Annual Report on Form 10-K. 26 Table of Contents ​ We are focused on the health of our employees.
For more information about citations or orders for violations of standards under the FMSHA, as amended by the MINER Act, please see our Exhibit 95.1 to this Annual Report on Form 10-K. ​ We are focused on the health of our employees.
Risk Factors". ​ Oil & Gas Minerals Interest - Seasonal Nature of Business ​ Generally, demand for oil increases during the summer months and decreases during the winter months while demand for natural gas increases during the winter and summer months and decreases during the spring and fall months.
Risk Factors”. ​ Oil & Gas Minerals Interest - Seasonal Nature of Business ​ Generally, demand for oil increases during the summer months and decreases during the winter months while demand for natural gas increases during the winter and summer months and decreases during the spring and fall months.
While the full extent and impact of these actions is unclear at this time, any disruption in the ability to obtain required permits may result in increased costs and project delays. ​ TMDL regulations under the CWA establish a process to calculate the maximum amount of a pollutant that an impaired waterbody can receive and still meet state water quality standards, and to allocate pollutant loads among the point and non-point pollutant sources discharging into that water body.
While the full extent and impact of these actions is unclear at this time, due to the litigation and the change in Trump Administration, any disruption in the ability to obtain required permits may result in increased costs and project delays. ​ TMDL regulations under the CWA establish a process to calculate the maximum amount of a pollutant that an impaired waterbody can receive and still meet state water quality standards, and to allocate pollutant loads among the point and non-point pollutant sources discharging into that water body.
In October 2021, the Biden Administration proposed the rollback of new rules promulgated under the Trump Administration and published an advanced notice of proposed rulemaking to codify a general prohibition on incidental take while establishing a process to regulate or permit exceptions to such a prohibition.
For example, in October 2021, the Biden Administration proposed the rollback of new rules promulgated under the first Trump Administration and published an advanced notice of proposed rulemaking to codify a general prohibition on incidental take while establishing a process to regulate or permit exceptions to such a prohibition.
Circuit. Any future use of the EPA's Section 404 "veto" power could create uncertainty with regard to our continued use of current permits, as well as impose additional time and cost burdens on future operations, potentially adversely affecting our coal revenues.
Circuit Court. Any future use of the EPA’s Section 404 “veto” power could create uncertainty with regard to our continued use of current permits, as well as impose additional time and cost burdens on future operations, potentially adversely affecting our coal revenues.
Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources— Cash Requirements ." 19 Table of Contents ​ Air Emissions ​ The CAA and similar state and local laws and regulations regulate emissions into the air and affect coal mining, as well as oil & gas, operations.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources— Cash Requirements .” ​ 18 Table of Contents Air Emissions ​ The CAA and similar state and local laws and regulations regulate emissions into the air and affect coal mining, as well as oil & gas, operations.
Currently, significant uncertainty exists regarding the obtaining of permits under the CWA for coal mining operations in Appalachia due to various initiatives launched by the EPA regarding these permits. ​ The EPA also has statutory "veto" power over a Section 404 permit if the EPA determines, after notice and an opportunity for a public hearing, that the permit will have an "unacceptable adverse effect." This authority has been upheld by the D.C.
Currently, significant uncertainty exists regarding the obtaining of permits under the CWA for coal mining operations in Appalachia due to various initiatives launched by the EPA regarding these permits. ​ The EPA also has statutory “veto” power over a Section 404 permit if the EPA determines, after notice and an opportunity for a public hearing, that the permit will have an “unacceptable adverse effect.” This authority has been upheld by the D.C.
In December 2023, EPA issued its final methane rules, known as OOOOb and OOOOc, that establish new source and first-time existing source standards of performance for GHG and VOC emissions for crude oil and natural gas well sites, natural gas gathering and boosting compressor stations, natural gas 21 Table of Contents processing plants, and transmission and storage facilities.
In December 2023, the EPA issued its final methane rules, known as OOOOb and OOOOc, that establish new source and first-time existing source standards of performance for GHG and VOC emissions for crude oil and natural gas well sites, natural gas gathering and boosting compressor stations, natural gas processing plants, and transmission and storage facilities.
In April 2022, the CEQ issued a final rule, considered "Phase I" of the Biden Administration’s two-phased approach to modifying the NEPA, revoking some of the modifications made to the NEPA regulations under the previous administration and reincorporating the consideration of direct, indirect, and cumulative effects of major federal actions, including GHG emissions.
In April 2022, the CEQ issued a final rule, considered “Phase I” of the Biden Administration’s two-phased approach to modifying the NEPA, revoking some of the modifications made to the NEPA regulations under the previous administration and reincorporating the consideration of direct, indirect, and cumulative effects of major federal actions, including GHG emissions.
Vernon Transfer Terminal, LLC ​ Our subsidiary, Mt. Vernon, leases land and operates a coal-loading terminal on the Ohio River at Mt. Vernon, Indiana. Coal is delivered to Mt. Vernon by both rail and truck. The terminal has a capacity of 8.0 million tons per year with existing ground storage of approximately 200,000 tons.
Vernon leases land and operates a coal-loading terminal on the Ohio River at Mt. Vernon, Indiana. Coal is delivered to Mt. Vernon by both rail and truck. The terminal has a capacity of 8.0 million tons per year with existing ground storage of approximately 200,000 tons.
The Btu content of our coal ranges from 11,450 to 13,200. ​ The following chart summarizes our coal production by region for the last three years. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2023 2022 2021 ​ ​ (tons in millions) Illinois Basin 25.2 24.3 22.2 ​ Appalachia 9.7 11.2 10.0 ​ Total 34.9 35.5 32.2 ​ ​ ​ 4 Table of Contents The following map shows the location of our coal mining operations: ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations: ​ D.
The Btu content of our coal ranges from 11,450 to 13,200. ​ The following chart summarizes our coal production by region for the last three years. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, Coal Regions 2024 2023 2022 ​ ​ (tons in millions) Illinois Basin 24.2 25.2 24.3 ​ Appalachia 8.0 9.7 11.2 ​ Total 32.2 34.9 35.5 ​ ​ ​ 3 Table of Contents The following map shows the location of our coal mining operations: ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations: ​ D.
For more information, please see the risk factors described in "Item 1A. Risk Factors" below. ​ We are committed to conducting mining operations in compliance with applicable federal, state, and local laws and regulations.
For more information, please see the risk factors described in “Item 1A. Risk Factors” below. ​ We are committed to conducting mining operations in compliance with applicable federal, state, and local laws and regulations.
Meanwhile, on January 25, 2022, the EPA published determinations for 9 of 57 CCB facilities that sought approval to continue disposal of CCB and non-CCB waste streams until 2023, as opposed to the initial 2021 deadline for unlined impoundments prescribed by the current rule.
Meanwhile, on January 25, 2022, the EPA published determinations for nine of 57 CCR facilities that sought approval to continue disposal of CCR and non-CCR waste streams until 2023, as opposed to the initial 2021 deadline for unlined impoundments prescribed by the current rule.
When we receive a citation, we attempt to promptly remediate any identified condition. While we have not quantified all of the costs of compliance with applicable federal and state laws and associated regulations, those costs have been and are expected to continue to be significant.
When we receive a citation, we attempt to remediate any identified condition as soon as practicable. While we have not quantified all of the costs of compliance with applicable federal and state laws and associated regulations, those costs have been and are expected to continue to be significant.
Risk Factors." 8 Table of Contents ​ Coal Transportation ​ Our coal is transported from our mining complexes to our customers by barge, rail, and truck, reflecting important flexibility advantages in supplying our customers.
Risk Factors.” ​ 7 Table of Contents Coal Transportation ​ Our coal is transported from our mining complexes to our customers by barge, rail, and truck, reflecting important flexibility advantages in supplying our customers.
Finally, activists 23 Table of Contents may try to hamper fossil-fuel companies by other means, including pressuring financing and other institutions into restricting access to capital, bonding, and insurance, as well as pursuing tort litigation for various alleged climate-related impacts.
Finally, activists may try to hamper fossil-fuel companies by other means, including pressuring financing and other institutions into restricting access to capital, bonding, and insurance, as well as pursuing tort litigation for various alleged climate-related impacts.
Leasing of these properties is dependent upon further development by our operating subsidiaries or third-party mining complexes, which is regulatory and market dependent. ​ Dotiki Resources ​ Approximately 76.0 million tons of the resources are currently leased/subleased or held for lease/sublease to our subsidiary, Webster. ​ Sebree South Resources ​ Approximately 43.5 million tons of the resources are currently leased/subleased to our subsidiary, Sebree. ​ Appalachia Basin ​ Alliance Resource Properties, either directly or through its subsidiaries, holds coal mineral reserves and resources in the following counties in the Appalachian Basin: ​ ● Brooke County, West Virginia ● Grant County, West Virginia ● Ohio County, West Virigina ● Tucker County, West Virginia ● Washington County, Pennsylvania ​ Approximately 80.7 million tons of reserves and 85.4 million tons of coal mineral resources are controlled by Alliance Resource Properties in the Appalachian Basin and are leased/subleased to our mining complexes or held for lease/sublease in the future as follows: ​ Tunnel Ridge Reserves and Resources ​ Approximately 75.0 million tons of the reserves and resources are currently leased/subleased or held for lease/sublease to our subsidiary, Tunnel Ridge. ​ 13 Table of Contents Mountain View Reserves and Resources ​ Approximately 13.1 million tons of the reserves and resources are currently leased/subleased or held for lease/sublease to our subsidiary, Mettiki (WV). ​ Penn Ridge Resources ​ Approximately 78.0 million tons of the resources are not under a lease.
Leasing of these properties is dependent upon further development by our operating subsidiaries or third-party mining complexes, which is regulatory and market dependent. ​ Dotiki Resources ​ Approximately 76.0 million tons of the resources are currently leased/subleased or held for lease/sublease to Webster. ​ Sebree South Resources ​ Approximately 43.5 million tons of the resources are currently leased/subleased to Sebree. ​ Appalachia Basin ​ Alliance Resource Properties, either directly or through its subsidiaries, holds coal mineral reserves and resources in the following counties in the Appalachian Basin: ​ ● Brooke County, West Virginia ● Grant County, West Virginia ● Ohio County, West Virginia ● Tucker County, West Virginia ● Washington County, Pennsylvania ​ Approximately 77.9 million tons of reserves and 85.4 million tons of coal mineral resources are controlled by Alliance Resource Properties in the Appalachian Basin and are leased/subleased to our mining complexes or held for lease/sublease in the future as follows: ​ Tunnel Ridge Reserves and Resources ​ Approximately 73.1 million tons of the reserves and resources are currently leased/subleased or held for lease/sublease to Tunnel Ridge. ​ 12 Table of Contents Mountain View Reserves and Resources ​ Approximately 12.2 million tons of the reserves and resources are currently leased/subleased or held for lease/sublease to Mettiki (WV). ​ Penn Ridge Resources ​ Approximately 78.0 million tons of the resources are not under a lease.
We did not derive 10% or more of our revenues from any other single customer. For more information about these customers, please read "Item 8. Financial Statement and Supplemental Data—Note 22 – Concentration of Credit Risk and Major Customers." ​ Coal Competition ​ The coal industry is intensely competitive.
We did not derive 10% or more of our revenues from any other single customer. For more information about these customers, please read “Item 8. Financial Statement and Supplemental Data—Note 20 – Concentration of Credit Risk and Major Customers.” ​ Coal Competition ​ The coal industry is intensely competitive.
Sanctions against the "owner" or "controller" are quite severe and can include being blocked from receiving new permits and having any permits revoked that were issued after the time of the violations or after the time civil penalties or reclamation fees became due.
Sanctions against the “owner” or “controller” are quite severe and can include being blocked from receiving new permits and having any permits revoked that were issued after the time of the violations or after the time civil penalties or reclamation fees became due.
Substantially, all of our coal mineral resources and 557.7 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties and are currently leased or subleased or held for lease or sublease to our mining operations or others.
Substantially, all of our coal mineral resources and 535.9 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties and are currently leased or subleased or held for lease or sublease to our mining operations or others.
Compliance with the rule must be achieved by July 17, 2024. ​ It is uncertain whether any of the above or other various proposed rules or requests for information would have material impacts on our operations or our costs of operation. ​ Subsequent to the passage of the MINER Act, Illinois, Kentucky, Pennsylvania, and West Virginia have enacted legislation addressing issues such as mine safety and accident reporting, increased civil and criminal penalties, and increased inspections and oversight.
The compliance date for the final rule was July 17, 2024. ​ It is uncertain whether any of the above or various other proposed rules or requests for information would have material impacts on our operations or our costs of operation. ​ Subsequent to the passage of the MINER Act, Illinois, Kentucky, Pennsylvania, and West Virginia have enacted legislation addressing issues such as mine safety and accident reporting, increased civil and criminal penalties, and increased inspections and oversight.
Coal produced from the River View complex is transported by overland belt to a barge loading facility on the Ohio River. River View coal production in 2023 was 9.9 million tons. ​ Hamilton Complex ​ Our subsidiary, Hamilton, operates the Hamilton mine, located near the city of McLeansboro in Hamilton County, Illinois.
Coal produced from the River View complex is transported by overland belt to a barge loading facility on the Ohio River. River View complex coal production in 2024 was 9.3 million tons. ​ Hamilton Complex ​ Hamilton operates the Hamilton mine, located near the city of McLeansboro in Hamilton County, Illinois.
We believe we are in compliance in all material respects with applicable regulations relating to reclamation. We have accrued $150.4 million for the estimated costs of reclamation and mine closing, including the cost of treating mine water discharge when necessary. Please read "Item 8.
We believe we are in compliance in all material respects with applicable regulations relating to reclamation. We have accrued $158.8 million for the estimated costs of reclamation and mine closing, including the cost of treating mine water discharge when necessary. Please read “Item 8.
Under the finalized regulations, CCB is regulated as "non-hazardous" waste and avoids the stricter, more costly, regulations under RCRA's "hazardous" waste rules. While the classification of CCB as a hazardous waste would have led to more stringent restrictions and higher costs, this regulation may still increase our customers' operating costs and potentially reduce their ability to purchase coal.
Under the finalized regulations, CCR is regulated as “non-hazardous” waste and avoids the stricter, more costly, regulations under RCRA’s “hazardous” waste rules. While the classification of CCR as a hazardous waste would have led to more stringent restrictions and higher costs, this regulation may still increase our customers’ operating costs and potentially reduce their ability to purchase coal.
Oil & gas production on the properties in which we hold mineral interests could be adversely affected to the extent the rules and any of their requirements impose increased operating costs on the oil & gas industry. ​ GHG Emissions ​ Combustion of fossil fuels, such as the coal we produce and the oil & gas produced from our mineral interests, results in the emission of GHGs, such as carbon dioxide and methane.
To the extent that the methane emissions fee rule is implemented as originally promulgated, oil & gas production on the properties in which we hold mineral interests could be adversely affected to the extent the rules and any of their requirements impose increased operating costs on the oil & gas industry . ​ GHG Emissions ​ Combustion of fossil fuels, such as the coal we produce and the oil & gas produced from our mineral interests, results in the emission of GHGs, such as carbon dioxide and methane.
Substantially, all of our coal mineral resources and 557.7 million tons of our coal mineral reserves are owned or leased by Alliance Resource Properties, which are (a) leased or subleased to internal mining complexes or (b) near other internal and external coal mining operations but not yet leased.
Substantially all of our coal mineral resources and a majority of our coal mineral reserves are owned or leased by Alliance Resource Properties, which are (a) leased or subleased to internal mining complexes or (b) near other internal and external coal mining operations but not yet leased.
In 2023, we sold 80.9% of our total tons to electric utilities in the United States, substantially all of which was sold to utility plants with installed pollution control devices.
In 2024, we sold 80.3% of our total tons to electric utilities in the United States, substantially all of which was sold to utility plants with installed pollution control devices.
Following the passage of the MINER Act, MSHA has issued new or more stringent rules and policies on a variety of topics, including: ​ ● sealing off abandoned areas of underground coal mines; ● mine safety equipment, training, and emergency reporting requirements; ● substantially increased civil penalties for regulatory violations; ● training and availability of mine rescue teams; ● underground "refuge alternatives" capable of sustaining trapped miners in the event of an emergency; ● flame-resistant conveyor belts, fire prevention and detection, and use of air from the belt entry; and ● post-accident two-way communications and electronic tracking systems. ​ MSHA continues to interpret and implement various provisions of the MINER Act, along with introducing new proposed regulations and standards. ​ MSHA has finalized a number of rules related to controlling exposure to coal mine dust, which has resulted in progressively stricter exposure limits imposed by MHSA regulations.
Following the passage of the MINER Act, MSHA has issued new or more stringent rules and policies on a variety of topics, including: ​ ● sealing off abandoned areas of underground coal mines; ● mine safety equipment, training, and emergency reporting requirements; ● substantially increased civil penalties for regulatory violations; ● training and availability of mine rescue teams; ● underground “refuge alternatives” capable of sustaining trapped miners in the event of an emergency; ● flame-resistant conveyor belts, fire prevention and detection, and use of air from the belt entry; and ● post-accident two-way communications and electronic tracking systems. ​ MSHA continues to interpret and implement various provisions of the MINER Act, along with introducing new proposed regulations and standards contained in the 30 Code of Federal Regulations (30 CFR). ​ MSHA has finalized a number of rules related to controlling exposure to respirable dusts within the mining environment, including coal mine dust and silica, which has resulted in progressively stricter exposure limits imposed by MSHA regulations.
Because title to our export shipments typically transfers to our brokerage customers at a point that does not necessarily reflect the end-usage point, we attribute export tons to the country with the end-usage point, if known. ​ Reliance on Major Customers ​ In 2023, we derived more than 10% of our total revenue from each of American Electric Power and Tennessee Valley Authority.
Because title on our export shipments typically transfers to our brokerage customers at a point that does not necessarily reflect the end-delivery point, we attribute export tons to the country with the end-delivery point, if known. ​ Reliance on Major Customers ​ In 2024, we derived more than 10% of our total revenue from each of American Electric Power Company Inc., Louisville Gas and Electric Company, and Tennessee Valley Authority.
Under the agreement, Matrix Design will integrate Infinitum's motor technology into mining equipment of our operating subsidiaries to provide performance validation in production environments for jointly 14 Table of Contents developed products and to improve our operational efficiency. Matrix Design will also work with Infinitum to market the jointly developed technology products to third parties worldwide.
Under the agreement, Matrix Design will integrate Infinitum’s motor technology into mining equipment of our operating subsidiaries to provide performance validation in production environments for jointly developed products and to improve our operational efficiency. Matrix Design will also work with Infinitum to market the jointly developed technology products to third parties worldwide. We acquired Matrix Design in September 2006.
For more information about our WKY CoalPlay transactions, please read "Item 8.
For more information about our WKY CoalPlay transactions, please read “Item 8.
Similarly, most wastes associated with the exploration, development, and production of oil & gas are exempt from regulation as hazardous wastes under RCRA, though these wastes typically constitute "solid wastes" that are subject to less stringent non-hazardous waste requirements.
Similarly, most wastes associated with the exploration, development, and production of oil & gas are exempt from regulation as hazardous wastes under RCRA, though these wastes typically constitute “solid wastes” that are 24 Table of Contents subject to less stringent non-hazardous waste requirements.
Depending on the particular regulatory program that may be enacted, at either the federal or state level, the demand for coal and oil & gas could be negatively impacted, which would have an adverse effect on our operations. ​ The EPA has begun to regulate GHG emissions from stationary sources, such as coal-fueled power plants, under existing federal CAA.
Depending on the particular regulatory program that may be enacted, at either the federal or state level, and the outcome of any legal challenges, the demand for coal and oil & gas could be negatively impacted, which would have an adverse effect on our operations. ​ The EPA continues to seek to regulate GHG emissions from stationary sources, such as coal-fueled power plants, under existing federal CAA.
Depending on the ultimate resolution of the EPA's litigation and review, demand for coal could be affected. ​ ● The EPA's NSPS under the CAA require the reduction of certain pollutants and methane emissions from certain stimulated oil & gas wells for which well completion operations are conducted and further require that most wells use reduced emission completions, also known as "green completions." These regulations also establish specific new requirements regarding emissions from production-related wet seal and reciprocating compressors, and pneumatic controllers and storage vessels.
Depending on the ultimate resolution of the EPA’s litigation and any potential final rule, demand for coal could be affected. ​ ● The EPA’s NSPS under the CAA require the reduction of certain pollutants and methane emissions from certain stimulated oil & gas wells for which well completion operations are conducted, require that most wells use reduced emission completions, also known as “green completions,” and establish specific new requirements regarding emissions from production-related wet seal and reciprocating compressors, and pneumatic controllers and storage vessels.
In addition, we are positioning ourselves as a reliable energy provider for the future as we pursue opportunities that support the advancement of energy and related infrastructure. We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
In addition, we continue to position ourselves as a reliable energy provider for the future as we pursue opportunities that support the growth and development of energy and related infrastructure. We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
AllDale III also owns mineral interests in the Haynesville Shale formation located in northwest Louisiana. ​ Coal Royalties ​ Our Coal Royalties segment includes approximately 557.7 million tons of reserves and substantially all of the 1.06 billion tons of our coal mineral resources.
AllDale III also owns mineral interests in the Haynesville Shale formation located in northwest Louisiana. ​ Coal Royalties ​ Our Coal Royalties segment includes approximately 535.9 million tons of reserves and substantially all of the 1.07 billion tons of our coal mineral resources.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThese risks are discussed more fully below and include but are not limited to risks related to: ​ Risks Inherent in an Investment in Us ● Cash distributions are not guaranteed ● Ownership of limited partner interests could be diluted ● Sales of our common units could cause decline in the market price of our common units ● Increase in interest rates could cause decline in the market price of our common units ● The credit risk of our general partner could adversely impact us ● Our unitholders do not elect the general partner ● The control of our general partner may be transferred to a third party ● Unitholders may be required to sell their units to our general partner ● Cost reimbursements due to our general partner could be substantial ● Your liability as a limited partner may not be limited under certain circumstances ● Our general partner's fiduciary duties are limited ● Our general partner has discretion in determining the level of cash reserves ● Our general partner has potential conflicts of interest ● Some executive officers and directors face potential conflicts of interest ● ESG scores could adversely impact our securities ​ Risks Related to Our Business ● Declining global economic conditions could adversely impact us ● Material adverse effects on our financial condition as a result of future pandemic outbreaks could adversely impact us ● Financing may not be available to us on favorable terms or at all ● Our indebtedness could adversely impact us ● We depend upon the leadership of key personnel ● Legal proceedings could adversely impact us ● Our customers may not honor their contracts or may not enter into new contracts for our products ● Some of our contracts may be renegotiated or terminated ● We depend upon a few customers for significant portions of our revenues ● The credit risk of our customers could adversely impact us ● Cyber or terrorist attacks could adversely impact us ● Establishment of labor unions at our operations could adversely affect our profitability ​ Risks Related to Our Industries ● Changes in coal prices and/or oil & gas prices could impact our results of operations ● Competition within the coal industry could adversely affect our ability to sell coal ● Changes in taxes or tariffs and trade measures could adversely impact us ● Global geopolitical tensions which have caused, and may cause in the future, significant market disputes that may lead to increased volatility in the price of commodities ● Changes in consumption patterns by utilities could affect our ability to sell coal and/or impact the price of our natural gas ● Tort claims based on climate change ● Litigation resulting from disputes with customers could result in costs and liabilities ● Unanticipated mine operating conditions could affect our profitability ● Inability to obtain and renew permits necessary for operations could limit our ability to continue or expand our operations ● Fluctuations in transportation costs and availability could reduce demand for our products ● Unexpected increases in raw material costs could impact the profitability of our operations 28 Table of Contents ● The ability to recruit, hire and retain skilled labor could impact the profitability of our operations ● Disruptions in supply chains could impact the profitability of our operations ● Inflationary pressures could impact the profitability of our operations ● Unavailability of economic coal mineral reserves and resources could limit our ability to continue or expand our operations ● Estimates of our coal mineral reserves and resources could be inaccurate and could result in decreased profitability ● Coal mining in certain areas could be difficult and involve regulatory constraints which could impact our operations ● Extensive environmental laws and regulations could reduce demand for coal as a fuel source ● Legislative and regulatory compliance is costly ● Legislative and regulatory compliance could impact our business ● Legislative and regulatory initiatives relating to hydraulic fracturing could impact our mineral interests ● Legislative and regulatory initiatives relating to seismic activity could impact our business ● Legislative and regulatory initiatives relating to climate change could impact demand for our products ● Mine facilities may be located in a leased portion of the surface properties which introduces a risk of disruption to our operations ● Inability to acquire or failure to maintain surety bonds could limit our ability to continue or expand our operations ● Dependency on unaffiliated operators to explore and drill on our oil & gas properties limits our ability to control the timing and quantity of production ● Delays in royalty payments and optional royalty payments could impact our business ● Suspension of the right to receive royalty payments could impact our business ● Estimates of our oil & gas reserves could be inaccurate and could result in decreased profitability ● Uncertainties involved in drilling for and producing oil & gas could impact our business ● Availability of transportation and facilities for the products could impact our business ● Lack of hedging arrangements exposes us to the impact of commodity prices ● Expansions and acquisitions have inherent risks that could adversely impact us ● Integration of expansions or acquisitions has inherent risks that could adversely impact us ● Inability to obtain commercial insurance at acceptable rates could have a negative impact on our business ​ Tax Risks to Our Common Unitholders ● Our tax treatment depends on our status as a partnership for U.S. federal income tax purposes, and not being subject to a material amount of entity-level taxation.
Biggest changeThese risks are discussed more fully below and include but are not limited to risks related to: ​ Risks Inherent in an Investment in Us ● Cash distributions are not guaranteed ● Ownership of limited partner interests could be diluted ● Sales of our common units could cause decline in the market price of our common units ● Our unitholders do not elect the general partner ● The control of our general partner may be transferred to a third party ● Unitholders may be required to sell their units to our general partner ● Cost reimbursements due to our general partner could be substantial ● Your liability as a limited partner may not be limited under certain circumstances ● Our general partner’s fiduciary duties are limited, and our general partner has discretion in determining the level of cash reserves and has potential conflicts of interest ● Some executive officers and directors face potential conflicts of interest ​ Risks Related to Our Business ● Declining global economic conditions could adversely impact us ● Financing may not be available to us on favorable terms or at all ● Our indebtedness could adversely impact us ● We depend upon the leadership of key personnel ● Legal proceedings could adversely impact us ● Our customers may not honor their contracts or may not enter into new contracts for our products ● Some of our contracts may be renegotiated or terminated ● We depend upon a few customers for significant portions of our revenues ● The credit risk of our customers could adversely impact us ● Cyber or terrorist attacks could adversely impact us ● Establishment of labor unions at our operations could adversely affect our profitability ​ Risks Related to Our Industries ● Changes in coal prices and/or oil & gas prices, including as a result of global geopolitical tensions, could impact our results of operations ● Competition within the coal and oil & gas industry could adversely affect our ability to sell coal ● Changes in taxes or tariffs and trade measures could adversely impact us ● Changes in consumption patterns by utilities could affect our ability to sell coal and/or impact the price of our natural gas ● Unanticipated mine operating conditions could affect our profitability ● Inability to obtain and renew permits and surety bonds necessary for operations could limit our ability to continue or expand our operations ● Fluctuations in transportation costs and availability could reduce demand for our products ● The ability to recruit, hire and retain skilled labor could impact the profitability of our operations ● Disruptions in supply chains, inflationary pressures and unexpected increases in raw material costs could impact the profitability of our operations ● Unavailability of economic coal mineral reserves and resources could limit our ability to continue or expand our operations ● Estimates of our coal mineral reserves and resources and our oil & gas reserves could be inaccurate and could result in decreased profitability ● Extensive environmental laws and regulations could reduce demand for coal as a fuel source 27 Table of Contents ● Legislative and regulatory compliance is costly and could impact our business, and certain legislative and regulatory initiatives relating to our business could have negative impacts ● Mine facilities may be located in a leased portion of the surface properties which introduces a risk of disruption to our operations ● Dependency on unaffiliated operators to explore and drill on our oil & gas properties limits our ability to control the timing and quantity of production ● Delays in royalty payments, optional royalty payments and the suspension of the right to receive royalty payments could impact our business ● Availability of transportation and facilities for the products could impact our business ● Lack of hedging arrangements exposes us to the impact of commodity prices ● Expansions and acquisitions, as well as the integration of such expansions or acquisitions, have inherent risks that could adversely impact us ● Inability to obtain commercial insurance at acceptable rates could have a negative impact on our business ​ Tax Risks to Our Common Unitholders ● Our tax treatment depends on our status as a partnership for U.S. federal income tax purposes, and not being subject to a material amount of entity-level taxation.
In addition, the outgoing operator could be subject to a proceeding under Bankruptcy Code, in which case our right to enforce or terminate the lease for any defaults, including non-payment, could be substantially delayed or otherwise impaired.
In addition, the outgoing operator could be subject to a proceeding under the Bankruptcy Code, in which case our right to enforce or terminate the lease for any defaults, including non-payment, could be substantially delayed or otherwise impaired.
Business—Environmental, Health and Safety Regulations— Water Discharge ." ​ In addition, some of our permits could be subject to challenges from the public, which could result in additional costs or delays in the permitting process or even an inability to obtain permits, permit modifications, or permit renewals necessary for our operations. ​ Fluctuations in transportation costs and the availability or reliability of transportation could reduce revenues by causing us to reduce our production or by impairing our ability to supply coal to our customers. ​ Transportation costs represent a significant portion of the total cost of coal for our customers and, as a result, the cost of transportation is a critical factor in a customer's purchasing decision.
Business—Environmental, Health and Safety Regulations— Water Discharge .” ​ In addition, some of our permits could be subject to challenges from the public, which could result in additional costs or delays in the permitting process or even an inability to obtain permits, permit modifications, or permit renewals necessary for our operations. ​ Fluctuations in transportation costs and the availability or reliability of transportation could reduce revenues by causing us to reduce our production or by impairing our ability to supply coal to our customers. ​ Transportation costs represent a significant portion of the total cost of coal for our customers and, as a result, the cost of transportation is a critical factor in a customer’s purchasing decision.
Compliance with these laws and regulations can be burdensome and expensive for the Operators, and failure to comply could result in the Operators incurring significant liabilities, either of which could impact the Operators' willingness to develop our interests. ​ The Operators' operations on the properties in which we hold interests are subject to various federal, state, and local governmental regulations that may change from time to time in response to economic and political conditions.
Compliance with these laws and regulations can be burdensome and expensive for the operators, and failure to comply could result in the operators incurring significant liabilities, either of which could impact the operators’ willingness to develop our interests. ​ The operators on the properties in which we hold interests are subject to various federal, state, and local governmental regulations that may change from time to time in response to economic and political conditions.
These officers and directors face potential conflicts regarding the allocation of their time, which could adversely affect our business, results of operations, and financial condition. ​ Increasing attention to ESG matters may negatively impact our business, financial results, and unit price. ​ Companies across all industries, including companies in fossil-fuel industries, are facing increased scrutiny from stakeholders related to their ESG practices.
These officers and directors face potential conflicts regarding the allocation of their time, which could adversely affect our business, results of operations, and financial condition. ​ Increased attention to ESG matters may negatively impact our business, financial results, and unit price. ​ Companies across all industries, including companies in fossil-fuel industries, are facing increased scrutiny from stakeholders related to their ESG practices.
Moreover, certain members of the broader investment community may consider a company's sustainability score as a reputational or other factor in making an investment decision. Companies in the energy industry, and in particular those focused on coal, natural gas, or oil extraction, often do not score as well under ESG assessments compared to companies in other industries.
Moreover, certain members of the broader investment community may consider a company’s sustainability scores as a reputational or other factor in making an investment decision. Companies in the energy industry, and in particular those focused on coal, natural gas, or oil extraction, often do not score as well under ESG assessments compared to companies in other industries.
If the IRS were to challenge our proration method, we may be required to change the allocation of items of income, gain, loss and deduction among our unitholders. ​ A unitholder whose units are the subject of a securities loan (e.g., a loan to a " short seller " to cover a short sale of units) may be considered as having disposed of those units.
If the IRS were to challenge our proration method, we may be required to change the allocation of items of income, gain, loss and deduction among our unitholders. ​ A unitholder whose units are the subject of a securities loan (e.g., a loan to a “ short seller ” to cover a short sale of units) may be considered as having disposed of those units.
Companies that do not adapt or comply with evolving investor or stakeholder expectations and standards, or are perceived to have not responded appropriately to ESG issues, regardless of any legal requirement to do so, may suffer reputational damage and the business, financial condition, and valuation of such companies could be materially and adversely affected.
Companies that do not adapt or comply with evolving investor or stakeholder expectations and standards, or are perceived to have not responded appropriately to ESG issues, regardless of any legal requirement to do so, may suffer reputational damage and the business, financial condition, and valuation of such companies could be adversely affected.
Properties—Oil & Gas Reserves" for more information on our reserves. ​ Drilling for and producing oil & gas are high-risk activities with many uncertainties that could materially adversely affect our business, financial condition, and results of operations. ​ The drilling activities of the operators of our properties will be subject to many risks.
Properties—Oil & Gas Reserves” for more information on our reserves. ​ Drilling for and producing oil & gas are high-risk activities with many uncertainties that could materially adversely affect our business, financial condition, and results of operations. ​ The drilling activities of the operators of our properties will be subject to many risks.
For example, federal and state regulators are considering making financial assurance requirements more stringent and costly with respect to self-insured coal workers' pneumoconiosis, mine closure and reclamation security amounts. ​ We could have difficulty acquiring or maintaining surety bonds for a variety of reasons, including: ​ ● substantial increases in the amount of bonding required; ● lack of availability, higher expense, or unreasonable terms of new surety bonds, including as a result of external pressures related to fossil-fuel companies; ● the ability of current and future surety bond issuers to increase required collateral, or limitations on the availability of collateral for surety bond issuers due to the terms of our credit agreements; and ● the exercise by third-party surety bondholders of their rights to refuse to renew the surety. ​ Failure to acquire or maintain the required bonds could subject us to fines and penalties, result in the loss of our mining permits, or imperil our ability to self-insure workers compensation and pneumoconiosis obligations, and could have a material adverse effect on us. ​ We depend on unaffiliated Operators for all of the exploration, development, and production of the oil & gas properties in which we own mineral interests. ​ Because we depend on unaffiliated third-party operators for all of the exploration, development, and production of our oil & gas properties, we have little to no control over the operations related to our oil & gas properties.
For example, federal and state regulators are continuing to make financial assurance requirements more stringent and costly with respect to self-insured coal workers’ pneumoconiosis, mine closure and reclamation security amounts. ​ We could have difficulty acquiring or maintaining surety bonds for a variety of reasons, including: ​ ● substantial increases in the amount of bonding required; ● lack of availability, higher expense, or unreasonable terms of new surety bonds, including as a result of external pressures related to fossil-fuel companies; ● the ability of current and future surety bond issuers to increase required collateral, or limitations on the availability of collateral for surety bond issuers due to the terms of our credit agreements; and ● the exercise by third-party surety bondholders of their rights to refuse to renew the surety. ​ Failure to acquire or maintain the required bonds could subject us to fines and penalties, result in the loss of our mining permits, or imperil our ability to self-insure workers compensation and pneumoconiosis obligations, and could have a material adverse effect on us. ​ We depend on unaffiliated operators for all of the exploration, development, and production of the oil & gas properties in which we own mineral interests. ​ Because we depend on unaffiliated third-party operators for all of the exploration, development, and production of our oil & gas properties, we have little to no control over the operations related to our oil & gas properties.
Unless our general partner has acted in bad faith, the action taken by our general partner shall not constitute a breach of its fiduciary duty; and ● provides that our general partner and our officers and directors will not be liable for monetary damages to us, our limited partners, or assignees for errors of judgment or any acts or omissions if our general partner and those other persons acted in good faith. ​ All limited partners are bound by the provisions in the partnership agreement, including the provisions discussed above. ​ Our general partner's discretion in determining the level of cash reserves may adversely affect our ability to make cash distributions to our unitholders. ​ Our partnership agreement requires our general partner to deduct from available cash reserves that in its reasonable discretion are necessary for the proper conduct of our business, to comply with applicable law or agreements to which we are a party, or to provide funds for future distributions to partners.
Unless our general partner has acted in bad faith, the action taken by our general partner shall not constitute a breach of its fiduciary duty; and ● provides that our general partner and our officers and directors will not be liable for monetary damages to us, our limited partners, or assignees for errors of judgment or any acts or omissions if our general partner and those other persons acted in good faith. ​ 30 Table of Contents All limited partners are bound by the provisions in the partnership agreement, including the provisions discussed above. ​ Our general partner’s discretion in determining the level of cash reserves may adversely affect our ability to make cash distributions to our unitholders. ​ Our partnership agreement requires our general partner to deduct from available cash reserves that in its reasonable discretion are necessary for the proper conduct of our business, to comply with applicable law or agreements to which we are a party, or to provide funds for future distributions to partners.
In addition to potential cost increases, inflation could cause a decline in global or regional economic conditions that reduce demand for our coal or oil & gas and could adversely affect our results of operations. ​ The unavailability of an adequate supply of coal mineral reserves and resources that can be mined at competitive costs could cause our profitability to decline. ​ Our profitability depends substantially on our ability to mine coal mineral reserves and resources that have the geological characteristics that enable them to be mined at competitive costs and to meet the quality needed by our customers.
In addition to potential cost increases, inflation could cause a decline in global or regional economic conditions that reduces demand for our coal or oil & gas and could adversely affect our results of operations. ​ The unavailability of an adequate supply of coal mineral reserves and resources that can be mined at competitive costs could cause our profitability to decline. ​ Our profitability depends substantially on our ability to mine coal mineral reserves and resources that have the geological characteristics that enable them to be mined at competitive costs and to meet the quality needed by our customers.
Future expansions or acquisitions could result in us assuming more long-term liabilities relative to the value of the acquired assets than we have assumed in our previous expansions and/or acquisitions. ​ The integration of any expansions or acquisitions that we complete will be subject to substantial risks. ​ Even if we make expansions or acquisitions that we believe will increase our coal or mineral revenue, any expansion or acquisition involves potential risks, including, among other things: ​ ● the validity of our assumptions about estimated proved reserves, future production, prices, revenues, capital expenditures, the operating expenses, and costs the Operators would incur to develop the minerals; ● a decrease in our liquidity by using a significant portion of our cash generated from operations or borrowing capacity to finance acquisitions; ● a significant increase in our interest expense or financial leverage if we incur debt to finance acquisitions; ● the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate; ● mistaken assumptions about the overall cost of equity or debt; ● our ability to obtain satisfactory title to the assets we acquire; ● an inability to hire, train or retain qualified personnel to manage and operate our growing mineral assets; and ● the occurrence of other significant changes, such as impairment of properties, goodwill or other intangible assets, asset devaluation, or restructuring charges. 52 Table of Contents ​ We may not be able to effectively identify investment opportunities in the advancement of energy and related infrastructure on favorable terms, or at all, and failure to do so may limit our future growth. ​ Part of our strategy includes positioning ourselves as a reliable energy provider for the future by pursuing strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
Future expansions or acquisitions could result in us assuming more long-term liabilities relative to the value of the acquired assets than we have assumed in our previous expansions and/or acquisitions. ​ The integration of any expansions or acquisitions that we complete will be subject to substantial risks. ​ Even if we make expansions or acquisitions that we believe will increase our coal or mineral revenue, any expansion or acquisition involves potential risks, including, among other things: ​ ● the validity of our assumptions about estimated proved reserves, future production, prices, revenues, capital expenditures, the operating expenses, and costs the operators would incur to develop the minerals; ● a decrease in our liquidity by using a significant portion of our cash generated from operations or borrowing capacity to finance acquisitions; ● a significant increase in our interest expense or financial leverage if we incur debt to finance acquisitions; ● the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which any indemnity we receive is inadequate or uncollectable; ● mistaken assumptions about the overall cost of equity or debt; ● our ability to obtain satisfactory title to the assets we acquire; ● an inability to hire, train or retain qualified personnel to manage and operate our growing mineral assets; and ● the occurrence of other significant changes, such as impairment of properties, goodwill or other intangible assets, asset devaluation, or restructuring charges. ​ We may not be able to effectively identify investment opportunities in the growth and development of energy and related infrastructure on favorable terms, or at all, and failure to do so may limit our future growth. ​ Part of our strategy includes positioning ourselves as a reliable energy provider for the future by pursuing strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
As a result, although we could realize the benefit of any short-term increase in the price, we will not be protected against decreases in the price or prolonged periods of low commodity prices, which could materially adversely affect our business, results of operation and cash available for distribution. ​ In the future, we may enter into hedging transactions with the intent of reducing volatility in our cash flows due to fluctuations in the price of oil & gas or coal.
As a result, although we could realize the benefit of any short-term increase in commodity prices, we will not be protected against commodity price decreases or prolonged periods of low commodity prices, which could materially adversely affect our business, results of operations and cash available for distribution. ​ In the future, we may enter into hedging transactions with the intent of reducing volatility in our cash flows due to fluctuations in the price of oil & gas or coal.
If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for products, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations. 38 Table of Contents ​ Changes in consumption patterns by utilities regarding the use of coal, including plans by utilities to shut down or move away from coal-fired generation, have affected our ability to sell the coal we produce and may do so in the future. ​ Our business is closely linked to the demand for electricity, and any changes in coal consumption by domestic or international electric power generators would likely impact our business over the long term.
If any of these events occur, the resulting political instability and societal disruption could reduce overall demand for products, causing a reduction in our revenues or an increase in our costs and thereby materially and adversely affecting our results of operations. ​ Changes in consumption patterns by utilities regarding the use of coal, including plans by utilities to shut down or move away from coal-fired generation, have affected our ability to sell the coal we produce and may do so in the future. ​ Our business is closely linked to the demand for electricity, and any changes in coal consumption by domestic or international electric power generators would likely impact our business over the long term.
One or more of these developments, as well as concerted conservation and efficiency efforts that result in reduced electricity consumption, and consumer and corporate preferences for non-fossil-fuel sources, including alternative energy sources, 47 Table of Contents could cause prices and sales of our coal and/or oil & gas to materially decline and could cause our costs to increase and adversely affect our revenues and results of operations. ​ Climate change may also result in various physical risks, such as the increased frequency or intensity of extreme weather events or changes in meteorological and hydrological patterns that could adversely impact our operations, as well as those of the Operators and their supply chain.
One or more of these developments, as well as concerted conservation and efficiency efforts that result in reduced electricity consumption, and consumer and corporate preferences for non-fossil-fuel sources, including alternative energy sources, could cause prices and sales of our coal and/or oil & gas to materially decline and could cause our costs to increase and adversely affect our revenues and results of operations. ​ Climate change may also result in various physical risks, such as the increased frequency or intensity of extreme weather events or changes in meteorological and hydrological patterns that could adversely impact our operations, as well as those of the operators and their supply chain.
Further, the Operators' drilling and producing operations could be curtailed, delayed, canceled, or otherwise negatively impacted as a result of other factors, including: ​ ● unusual or unexpected geological formations or earthquakes; ● loss of drilling fluid circulation; ● title problems; ● facility or equipment malfunctions; ● unexpected operational events; ● shortages or delivery delays of equipment and services; ● compliance with environmental and other governmental requirements; and ● adverse weather conditions. ​ 50 Table of Contents Any of these risks can cause substantial losses, including personal injury or loss of life, damage to or destruction of property, natural resources, and equipment, pollution, environmental contamination or loss of wells, and other regulatory penalties.
Further, the operators’ drilling and producing operations could be curtailed, delayed, canceled, or otherwise negatively impacted as a result of other factors, including: ​ ● unusual or unexpected geological formations or earthquakes; ● loss of drilling fluid circulation; ● title problems; ● facility or equipment malfunctions; ● unexpected operational events; ● shortages or delivery delays of equipment and services; ● compliance with environmental and other governmental requirements; and ● adverse weather conditions. ​ Any of these risks can cause substantial losses, including personal injury or loss of life, damage to or destruction of property, natural resources, and equipment, pollution, environmental contamination or loss of wells, and other regulatory penalties.
However, elimination of such provisions could result in unfavorable tax consequences for our unitholders and, as a result, could negatively impact our unit price. ​ Our unitholders will likely be subject to state and local taxes and income tax return filing requirements in jurisdictions where they do not live as a result of investing in our common units. ​ In addition to U.S. federal income taxes, our unitholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes and estate, inheritance or intangible taxes that are imposed by the various jurisdictions in which we conduct business or own property now or in the future, even if they do not live in any of those jurisdictions.
However, elimination of such provisions could result in unfavorable tax consequences for our unitholders and, as a result, could negatively impact our unit price. 56 Table of Contents ​ Our unitholders will likely be subject to state and local taxes and income tax return filing requirements in jurisdictions where they do not live as a result of investing in our common units. ​ In addition to U.S. federal income taxes, our unitholders may be subject to other taxes, such as state and local income taxes, unincorporated business taxes and estate, inheritance or intangible taxes that are imposed by the various jurisdictions in which we conduct business or own property now or in the future, even if they do not live in any of those jurisdictions.
Disputes could occur in the future and we may not be able to resolve those disputes in a satisfactory manner, which could have a material adverse effect on our business, financial condition, and results of operations. ​ 39 Table of Contents Our profitability could decline due to unanticipated mine operating conditions and other events that are not within our control and that may not be fully covered under our insurance policies. ​ Our coal mining operations are influenced by changing conditions or events that can affect production levels and costs at particular mines for varying lengths of time and, as a result, can diminish our profitability.
Disputes could occur in the future and we may not be able to resolve those disputes in a satisfactory manner, which could have a material adverse effect on our business, financial condition, and results of operations. ​ Our profitability could decline due to unanticipated mine operating conditions and other events that are not within our control and that may not be fully covered under our insurance policies. ​ Our coal mining operations are influenced by changing conditions or events that can affect production levels and costs at particular mines for varying lengths of time and, as a result, can diminish our profitability.
If we were to lose this or any of our significant customers without finding replacement customers willing to purchase an equivalent amount of coal on similar terms, or if these customers were to decrease the amounts of coal purchased or change the terms, including pricing terms, on which they buy coal from us, it could have a material adverse effect on our business, financial condition, and results of operations. ​ Our ability to collect payments from our customers could be impaired if their creditworthiness declines or if they fail to honor their contracts with us. ​ Our ability to receive payment for coal sold and delivered depends on the continued creditworthiness of our customers.
If we were to lose this or any of our significant customers without finding replacement customers willing to purchase an equivalent amount of coal on similar terms, or if these customers were to decrease the amounts of coal purchased or change the terms, including pricing terms, on which they buy coal from us, it could have a material adverse effect on our business, financial condition, and results of operations. ​ 34 Table of Contents Our ability to collect payments from our customers could be impaired if their creditworthiness declines or if they fail to honor their contracts with us. ​ Our ability to receive payment for coal sold and delivered depends on the continued creditworthiness of our customers.
Prolonged disruption of production at any of our mines would result in a decrease in our revenues and profitability, which could materially adversely impact our quarterly or annual results. ​ Effective October 1, 2023, we renewed our property and casualty insurance program through September 30, 2024. Our property insurance was procured from our wholly owned captive insurance company, Wildcat Insurance.
Prolonged disruption of production at any of our mines would result in a decrease in our revenues and profitability, which could materially adversely impact our quarterly or annual results. ​ Effective October 1, 2024, we renewed our property and casualty insurance program through September 30, 2025. Our property insurance was procured from our wholly owned captive insurance company, Wildcat Insurance.
We may not be able to accurately assess the geological characteristics of any reserves or resources that we acquire, which could adversely affect our profitability and financial condition. Exhaustion of reserves and resources at particular mines also could have an adverse effect on our operating results that is disproportionate to the percentage of overall production represented by such mines.
We may not be able to accurately assess the geological characteristics of any reserves or resources that we acquire, which could adversely affect our profitability and financial condition. Exhaustion of reserves and resources at certain mines also could have an adverse effect on our operating results that is disproportionate to the percentage of overall production represented by such mines.
The new tariffs, along with any additional tariffs or trade restrictions that may be implemented by the United States or retaliatory trade measures or tariffs implemented by other countries, could result in reduced economic activity, increased costs in operating our business, reduced demand and changes in purchasing behaviors for thermal and metallurgical coal, limits on trade with the United States or other potentially adverse economic outcomes.
These tariffs, along with any additional tariffs or trade restrictions that may be implemented by the United States or retaliatory trade measures or tariffs implemented by other countries, could result in reduced economic activity, increased costs in operating our business, reduced demand and changes in purchasing behaviors for thermal and metallurgical coal, limits on trade with the United States or other potentially adverse economic outcomes.
The success and timing of drilling and development activities on our oil & gas properties, and whether the operators elect to drill any additional wells on our acreage, depends on a number of factors that will be largely outside of our control, including: 48 Table of Contents ​ ● the capital costs required for drilling activities by the operators of our oil & gas properties, which could be significantly more than anticipated; ● the ability of the operators of our properties to access capital; ● prevailing commodity prices; ● the availability of suitable drilling equipment, production and transportation infrastructure, and qualified operating personnel; ● the operators' expertise, operating efficiency, and financial resources; ● approval of other participants in drilling wells; ● the operators' expected return on investment in wells drilled on our acreage as compared to opportunities in other areas; ● the selection of technology; ● the selection of counterparties for the marketing and sale of production; and ● the rate of production of the reserves. ​ The Operators may elect not to undertake development activities or may undertake these activities in an unanticipated fashion, which could result in significant fluctuations in our oil & gas revenues. ​ We have little to no control over the timing of future drilling with respect to our oil & gas mineral interests. ​ All of our oil & gas mineral interests may not ultimately be developed or produced by the operators of our properties.
The success and timing of drilling and development activities on our oil & gas properties, and whether the operators elect to drill any additional wells on our acreage, depends on several factors that are largely outside of our control, including: ​ ● the capital costs required for drilling activities by the operators of our oil & gas properties, which could be significantly more than anticipated; ● the ability of the operators of our properties to access capital; ● prevailing commodity prices; ● the availability of suitable drilling equipment, production and transportation infrastructure, and qualified operating personnel; 48 Table of Contents ● the operators’ expertise, operating efficiency, and financial resources; ● approval of other participants in drilling wells; ● the operators’ expected return on investment in wells drilled on our acreage as compared to opportunities in other areas; ● the selection of technology; ● the selection of counterparties for the marketing and sale of production; and ● the rate of production of the reserves. ​ The operators may elect not to undertake development activities or may undertake these activities in an unanticipated fashion, which could result in significant fluctuations in our oil & gas revenues. ​ We have little to no control over the timing of future drilling with respect to our oil & gas mineral interests. ​ All of our oil & gas mineral interests may not ultimately be developed or produced by the operators of our properties.
In addition, if a customer refuses to accept shipments of our coal for which they have an existing contractual obligation, our revenues will decrease and we may have to reduce production at our mines until our customer's contractual obligations are honored. ​ Terrorist attacks or cyber incidents could result in information theft, data corruption, operational disruption, and/or financial loss. ​ Like most companies, we have become increasingly dependent upon digital technologies, including information systems, infrastructure, and cloud applications and services, to operate our businesses, process and record financial and operating data, communicate with our business partners, analyze mine and mining information, and estimate quantities of reserves and resources, as well as other activities related to our businesses.
In addition, if a customer refuses to accept shipments of our coal for which they have an existing contractual obligation, our revenues will decrease and we may have to reduce production at our mines until our customer’s contractual obligations are honored. ​ Terrorist attacks or cyber incidents could result in information theft, data corruption, operational disruption, and/or financial loss. ​ Like most companies in our industry, we have become increasingly dependent upon access to and the use of our digital technologies, including information systems, infrastructure, and cloud applications and services, to operate our businesses, process and record financial and operating data, communicate with our business partners, analyze mine and mining information, and estimate quantities of reserves and resources, as well as other activities related to our businesses.
The new owner or owners of our general partner would then be in a position to replace the directors and officers of our general partner and control the decisions made and actions taken by the Board of Directors and officers. ​ Unitholders may be required to sell their units to our general partner at an undesirable time or price. ​ If at any time less than 20.0% of our outstanding common units are held by persons other than our general partner and its affiliates, our general partner will have the right to acquire all, but not less than all, of those units at a price no less than their then-current market price.
The new owner or owners of our general partner would then be in a position to replace the directors and officers of our general partner and control the decisions made and actions taken by the Board of Directors and officers. 29 Table of Contents ​ Unitholders may be required to sell their units to our general partner at an undesirable time or price. ​ If at any time less than 20.0% of our outstanding common units are held by persons other than our general partner and its affiliates, our general partner will have the right to acquire all, but not less than all, of those units at a price no less than their then-current market price.
Liabilities to partners on account of their partnership interest and liabilities that are non-recourse to the partnership are not counted for purposes of determining whether a distribution is permitted. ​ 31 Table of Contents Our partnership agreement limits our general partner ' s fiduciary duties to our unitholders and restricts the remedies available to unitholders for actions taken by our general partner that may otherwise constitute breaches of fiduciary duty. ​ Our partnership agreement contains provisions that waive or consent to conduct by our general partner and its affiliates and which reduce the obligations to which our general partner would otherwise be held by state-law fiduciary duty standards.
Liabilities to partners on account of their partnership interest and liabilities that are non-recourse to the Partnership are not counted for purposes of determining whether a distribution is permitted. ​ Our partnership agreement limits our general partner ’ s fiduciary duties to our unitholders and restricts the remedies available to unitholders for actions taken by our general partner that may otherwise constitute breaches of fiduciary duty. ​ Our partnership agreement contains provisions that waive or consent to conduct by our general partner and its affiliates and which reduce the obligations to which our general partner would otherwise be held by state-law fiduciary duty standards.
Unitholders desiring to assure their status as partners and avoid the risk of gain recognition from a securities loan are urged 56 Table of Contents to consult a tax advisor to determine whether it is advisable to modify any applicable brokerage account agreements to prohibit their brokers from borrowing their units. ​ Certain U.S. federal income tax deductions currently available with respect to coal mining and production may be eliminated as a result of future legislation. ​ In past years, members of the U.S.
Unitholders desiring to assure their status as partners and avoid the risk of gain recognition from a securities loan are urged to consult a tax advisor to determine whether it is advisable to modify any applicable brokerage account agreements to prohibit their brokers from borrowing their units. ​ Certain U.S. federal income tax deductions currently available with respect to coal mining and production may be eliminated as a result of future legislation. ​ In past years, members of the U.S.
In addition, the 10% discount factor we use when calculating discounted future net cash flows may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with us or the oil & gas industry in general. Please see "Item 2.
In addition, the 10% discount factor we use when calculating discounted future net cash flows may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with us or the oil & gas industry in general. Please see “Item 2.
These activities could increase costs, reduce demand for our coal and hydrocarbon products, reduce our profits, increase the potential for investigations and litigation, impair our brand, limit our choices for lenders, insurance providers and business partners, and have negative impacts on our unit price and access to capital markets. ​ In addition, certain organizations that provide corporate governance and other corporate risk information to investors and unitholders have developed scores and ratings to evaluate companies and investment funds based on ESG or "sustainability" metrics.
These activities could increase costs, reduce demand for our coal and hydrocarbon products, reduce our profits, increase the potential for investigations and litigation, impair our brand, limit our choices for lenders, insurance providers and business partners, and have negative impacts on our unit price and access to capital markets. ​ In addition, certain organizations that provide ESG and other corporate risk information to investors and unitholders have developed scores and ratings to evaluate companies and investment funds based on ESG or “sustainability” metrics.
As a result of these developments, we could be unable to obtain or experience delays in securing, utilizing, or renewing Section 404 permits required for our operations, which could have an adverse effect on our results of operation and financial position. Please read "Item 1.
As a result of these developments, we could be unable to obtain or experience delays in securing, utilizing, or renewing Section 404 permits required for our operations, which could have an adverse effect on our results of operation and financial position. Please read “Item 1.
As a result, estimated quantities of proved reserves and projections of future production rates could be incorrect. Our estimates of proved reserves and related valuations as of December 31, 2023, were audited by CGA, which conducted a detailed review of all of our properties at that time using the information provided by us.
As a result, the estimated quantities of proved reserves and projections of future production rates could be incorrect. Our estimates of proved reserves and related valuations as of December 31, 2024, were audited by CGA, which conducted a detailed review of all of our properties at that time using the information provided by us.
In the event that planned operations, including the drilling of development wells, are delayed or canceled, or existing wells or development wells have lower than anticipated production due to one or more of the factors above or for any other reason, our financial condition, results of operations, and free cash flow could be materially adversely affected. ​ The marketability of oil & gas production is dependent upon transportation and other facilities, certain of which neither we nor the operators of our properties control.
In the event that planned operations, including the drilling of development wells, are delayed or canceled, or existing wells or development wells have lower than anticipated production due to one or more of the factors above or for any other reason, our financial condition, results of operations, and free cash flow could be materially adversely affected. ​ 50 Table of Contents The marketability of oil & gas production is dependent upon transportation and other facilities, certain of which neither we nor the operators of our properties control.
If the IRS were to treat us as a corporation for U.S. federal income tax purposes, or we become subject to entity-level taxation for state tax purposes, our cash available for distribution to you would be substantially reduced. ​ The anticipated after-tax benefit of an investment in our common units depends largely on our being treated as a partnership for U.S. federal income tax purposes. ​ Even though we are organized as a limited partnership under Delaware law, we would be treated as a corporation for U.S. federal income tax purposes unless we satisfy a "qualifying income" requirement.
If the IRS were to treat us as a corporation for U.S. federal income tax purposes, or we become subject to entity-level taxation for state tax purposes, our cash available for distribution to you would be substantially reduced. ​ The anticipated after-tax benefit of an investment in our common units depends largely on our being treated as a partnership for U.S. federal income tax purposes. ​ Even though we are organized as a limited partnership under Delaware law, we would be treated as a corporation for U.S. federal income tax purposes unless we satisfy a “qualifying income” requirement.
The availability and continuation of public policy support mechanisms will drive a significant part of the economics and viability of investments generally, as well as our participation in them. ​ Our inability to obtain commercial insurance at acceptable rates or our failure to adequately reserve for self-insured exposures could increase our expenses and have a negative impact on our business. ​ We believe that commercial insurance coverage is prudent in certain areas of our business for risk management.
The availability and 52 Table of Contents continuation of public policy support mechanisms will drive a significant part of the economics and viability of investments generally, as well as our participation in them. ​ Our inability to obtain commercial insurance at acceptable rates or our failure to adequately reserve for self-insured exposures could increase our expenses and have a negative impact on our business. ​ We believe that commercial insurance coverage is prudent in certain areas of our business for risk management.
Further, far-reaching federal regulations promulgated by the EPA in the last several years, such as CSAPR and MATS, have led to the premature retirement of coal-fired generating units and a significant reduction in the amount of coal-fired generating capacity in the United States. Please read "Item 1.
Further, far-reaching federal regulations promulgated by the EPA in the last several years, such as CSAPR and MATS, have led to the premature retirement of coal-fired generating units and a significant reduction in the amount of coal-fired generating capacity in the United States. Please read “Item 1.
For more information, see our risk factor titled "We, our customers, or the Operators of our oil & gas mineral interests could be subject to litigation related to climate change." ​ Apart from governmental regulation, there are also increasing financial risks for fossil-fuel producers as stakeholders of fossil-fuel energy companies may elect in the future to shift some or all of their support into non-energy related sectors.
For more information, see our risk factor titled “We, our customers, or the operators of our oil & gas mineral interests could be subject to litigation related to climate change.” ​ Apart from governmental regulation, there are also increasing financial risks for fossil-fuel producers as stakeholders of fossil-fuel energy companies may elect in the future to shift some or all of their support into non-energy related sectors.
In addition, even if we remain union-free, our operations could still be adversely affected by work stoppages at unionized companies, particularly if union workers were to orchestrate boycotts against our operations. 36 Table of Contents ​ Risks Related to Our Industries ​ Prices for oil & gas, as well as coal, are volatile and can fluctuate widely based on a number of factors beyond our control.
In addition, even if we remain union-free, our operations could still be adversely affected by work stoppages at unionized companies, particularly if union workers were to orchestrate boycotts against our operations. ​ Risks Related to Our Industries ​ Prices for oil & gas, as well as coal, are volatile and can fluctuate widely based on a number of factors beyond our control.
These transporters may attempt to pass on such costs to the Operators, which in turn could affect profitability on the properties in which we own mineral interests. ​ The Operators must also comply with laws and regulations prohibiting fraud and market manipulations in energy markets.
These transporters may attempt to pass on such costs to the operators, which in turn could affect profitability on the properties in which we own mineral interests. ​ The operators must also comply with laws and regulations prohibiting fraud and market manipulation in energy markets.
Our unitholders may not receive cash distributions from us equal to their share of our taxable income or even equal to the actual tax liability that results from that income. ​ Tax gain or loss on the disposition of our common units could be more or less than expected. ​ If a unitholder sells units, the unitholder will recognize a gain or loss equal to the difference between the amount realized and that unitholder's tax basis in those common units.
Our unitholders may not receive cash distributions from us equal to their share of our taxable income or even equal to the actual tax liability that results from that income. 54 Table of Contents ​ Tax gain or loss on the disposition of our common units could be more or less than expected. ​ If a unitholder sells units, the unitholder will recognize a gain or loss equal to the difference between the amount realized and that unitholder’s tax basis in those common units.
In addition, the EPA previously exercised its "veto" power to withdraw or restrict the use of previously issued permits in connection with one of the largest surface mining operations in Appalachia. The EPA's action was ultimately upheld by a federal court.
In addition, the EPA previously exercised its “veto” power to withdraw or restrict the use of previously issued permits in connection with one of the largest surface mining operations in Appalachia. The EPA’s action was ultimately upheld by a federal court.
Furthermore, in December 2023, EPA issued its final methane rules, known as OOOOb and OOOOc, that established new sources and first-time existing source standards of performance for methane and volatile organic compound emissions for oil & gas facilities.
Additionally, in December 2023, EPA issued its final methane rules, known as OOOOb and OOOOc, that established new sources and first-time existing source standards of performance for methane and volatile organic compound emissions for oil & gas facilities.
Implementing and complying with these laws and regulations has increased and will continue to increase our operational expenses and have an adverse effect on our results of operation and financial position. For more information, please read "Item 1.
Implementing and complying with these laws and regulations has increased and will continue to increase our operational expenses and have an adverse effect on our results of operation and financial position. For more information, please read “Item 1.
Business—Environmental, Health and Safety Regulations— Mine Health and Safety Laws ." ​ Oil & gas operations are subject to various governmental laws and regulations.
Business—Environmental, Health and Safety Regulations— Mine Health and Safety Laws .” ​ Oil & gas operations are subject to various governmental laws and regulations.
While the determination of a partner's "amount realized" generally includes any decrease of a partner's share of the partnership's liabilities, the Treasury regulations provide that the "amount realized" on a transfer of an interest in a publicly traded partnership, such as our common units, will generally be the amount of gross proceeds paid to the broker effecting the applicable transfer on behalf of the transferor, and thus will be determined without regard to any decrease in that partner's share of a publicly traded partnership's liabilities.
While the determination of a partner’s “amount realized” generally includes any decrease of a partner’s share of the partnership’s liabilities, the Treasury regulations provide that the “amount realized” on a transfer of an interest in a publicly traded partnership, such as our common units, will generally be the amount of gross proceeds paid to the broker effecting the applicable transfer on behalf of the transferor, and thus will be determined without regard to any decrease in that partner’s share of a publicly traded partnership’s liabilities.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75 or 90 day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible. We retained a 7.25% participating interest in our current commercial property insurance program.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75- or 90-day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible. We retained a 2.50% participating interest in our current commercial property insurance program.
As mines become depleted, replacement reserves may not be available when required or, if available, may not be mineable at costs comparable to those of the depleting mines. In addition, permitting, licensing, and other environmental and regulatory requirements associated with certain of our mining operations are more costly and time-consuming to satisfy.
As mines become depleted, replacement reserves may not be available when required or, if available, may not be mineable at costs comparable to those of the depleting mines. In addition, permitting, licensing, and other environmental and regulatory requirements associated with certain of our mining 42 Table of Contents operations are more costly and time-consuming to satisfy.
If an operator of our properties is not satisfied with the documentation we provide to validate our ownership, it may place our royalty payment in suspense until such issues are resolved, at which time we 49 Table of Contents would receive in full payments that would have been made during the suspense period, without interest.
If an operator of our properties is not satisfied with the documentation we provide to validate our ownership, it may place our royalty payment in suspense until such issues are resolved, at which time we would receive in full payments that would have been made during the suspense period, without interest.
The reserve and resource data set forth in "Item 2. Properties—Coal Mineral Resources and Reserves" represent engineering estimates. All of the coal mineral reserves presented in this Annual Report on Form 10-K constitute proven and probable mineral reserves. There are numerous uncertainties inherent in estimating quantities of reserves and resources, including many factors beyond our control.
The reserve and resource data set forth in “Item 2. Properties—Coal Mineral Resources and Reserves” represent engineering estimates. All of the coal mineral reserves presented in this Annual Report on Form 10-K constitute proven and probable mineral reserves. There are numerous uncertainties inherent in estimating quantities of reserves and resources, including many factors beyond our control.
Limitations on our ability to conduct our mining operations due to the inability to obtain or renew necessary permits or similar approvals could reduce our production, cash flow, and profitability. Please read "Item 1.
Limitations on our ability to conduct our mining operations due to the inability to obtain or renew necessary permits or similar approvals could reduce our production, cash flow, and profitability. Please read “Item 1.
Our inability to acquire or failure to maintain surety bonds that are required by federal and state law would have a material adverse effect on us. ​ Federal and state laws require us to maintain bonds to secure our obligations to repair and return property to its approximate original state after it has been mined (often referred to as "reclaim" or "reclamation"), to pay federal and state workers' compensation and pneumoconiosis (or black lung) benefits, and to satisfy other miscellaneous obligations.
Our inability to acquire or failure to maintain surety bonds that are required by federal and state law would have a material adverse effect on us. ​ Federal and state laws require us to maintain bonds to secure our obligations to repair and return property to its approximate original state after it has been mined (often referred to as “reclaim” or “reclamation”), to pay federal and state workers’ compensation and pneumoconiosis (or black lung) benefits, and to satisfy other miscellaneous obligations.
To the extent possible under these rules, our general partner may elect to either pay the taxes (including any applicable penalties and interest) directly to the IRS or, if we are eligible, issue a revised information statement to each unitholder and former unitholder with respect to an audited and adjusted return.
To the extent possible, our general partner may elect to either pay the taxes (including any applicable penalties and interest) directly to the IRS or, if we are eligible, issue a revised information statement to each unitholder and former unitholder with respect to an audited and adjusted return.
Additionally, to the extent ESG matters negatively impact our reputation, we may not be able to compete as effectively to recruit or retain employees, which may adversely affect our operations. ​ Public statements with respect to ESG matters, such as emission reduction goals, other environmental targets, or other commitments addressing certain social issues, are becoming increasingly subject to heightened scrutiny from public and governmental authorities related to the risk of potential "greenwashing," i.e., misleading information or false claims overstating potential ESG benefits.
Additionally, to the extent ESG matters negatively impact our reputation, we may not be able to compete as effectively to recruit or retain employees, which may adversely affect our operations. ​ Certain public statements with respect to ESG matters, such as emission reduction goals, other environmental targets, or other commitments addressing certain social issues, are becoming increasingly subject to heightened scrutiny from public and governmental authorities, as well as other parties, related to the risk of potential “greenwashing,” i.e., misleading information or false claims overstating potential ESG benefits.
Certain of these laws and regulations may impose strict liability without regard to fault or legality of the original conduct. Failure to comply with these laws and regulations may result in 43 Table of Contents the assessment of administrative, civil, and criminal penalties, the imposition of remedial liabilities, and the issuance of injunctions limiting or prohibiting the performance of operations.
Certain of these laws and regulations may impose strict liability without regard to fault or legality of the original conduct. Failure to comply with these laws and regulations may result in the assessment of administrative, civil, and criminal penalties, the imposition of remedial liabilities, and the issuance of injunctions limiting or prohibiting the performance of operations.
As a result, distributions to 55 Table of Contents a non-U.S. unitholder will be subject to withholding at the highest applicable effective tax rate and a non-U.S. unitholder who sells or otherwise disposes of a unit will also be subject to U.S. federal income tax on the gain realized from the sale or disposition of that unit.
As a result, distributions to a non-U.S. unitholder will be subject to withholding at the highest applicable effective tax rate and a non-U.S. unitholder who sells or otherwise disposes of a unit will also be subject to U.S. federal income tax on the gain realized from the sale or disposition of that unit.
Congress have indicated a desire to eliminate certain key U.S. federal income tax provisions currently applicable to coal companies, including the percentage depletion allowance with respect to coal properties. Elimination of those provisions would not impact our financial statements or results of operations.
Congress have indicated a desire to eliminate certain key U.S. federal income tax provisions currently applicable to coal companies, including the percentage depletion allowance with respect to coal properties. Elimination of those provisions would have no impact on our financial statements or results of operations.
A substantial or extended decline in coal prices could materially and adversely affect us by decreasing our revenues to the extent we are not protected by the terms of existing coal supply agreements. ​ Competition within the coal industry could adversely affect our ability to sell coal.
A substantial or extended decline in coal prices could materially and adversely affect us by decreasing our revenues to the extent we are not protected by the terms of existing coal supply agreements. ​ 36 Table of Contents Competition within the coal industry could adversely affect our ability to sell coal.
Further, although Congress has not passed such legislation, almost half of the states have begun to address GHG emissions, primarily through the planned development of emissions inventories, regional GHG cap and trade programs, or the establishment of renewable energy requirements for utilities.
Further, although Congress has not passed comprehensive climate legislation, almost half of the states have begun to address GHG emissions, primarily through the planned development of emissions inventories, regional GHG cap and trade programs, or the establishment of renewable energy requirements for utilities.
Please read "Item 1. Business—Environmental, Health and Safety Regulations." ​ Federal and state laws addressing mine safety practices impose stringent reporting requirements and civil and criminal penalties for violations. Federal and state regulatory agencies continue to interpret and implement these laws and propose new regulations and standards.
Please read “Item 1. Business—Environmental, Health and Safety Regulations.” ​ Federal and state laws addressing mine safety practices impose stringent reporting requirements and civil and criminal penalties for violations. Federal and state regulatory agencies continue to interpret and implement these laws and propose new regulations and standards.
Members of Congress have frequently proposed and considered substantive changes to the existing U.S. federal income tax laws that would affect publicly traded partnerships, including proposals that would eliminate our ability to qualify for partnership tax treatment.
Members of Congress have frequently proposed and considered substantive changes to the existing U.S. federal income tax laws that would affect publicly traded partnerships, including proposals that would eliminate our ability to qualify for 53 Table of Contents partnership tax treatment.
In the event of early termination of any of our long-term sales contracts, if we are unable to enter into new contracts on similar terms, our business, financial condition, and results of operations could be adversely affected. ​ We depend on a few customers for a significant portion of our revenues, and the loss of one or more significant customers could affect our ability to maintain the sales volume and price of the coal we produce. ​ In 2023, we derived more than 10% of our total revenues from each of American Electric Power and Tennessee Valley Authority.
In the event of early termination of any of our long-term sales contracts, if we are unable to enter into new contracts on similar terms, our business, financial condition, and results of operations could be adversely affected. ​ We depend on a few customers for a significant portion of our revenues, and the loss of one or more significant customers could affect our ability to maintain the sales volume and price of the coal we produce. ​ In 2024, we derived more than 10% of our total revenues from each of American Electric Power Company Inc., Louisville Gas and Electric Company, and Tennessee Valley Authority.
If a significant amount of our royalty interests is placed in suspense, our results of operations could be reduced significantly. ​ Our estimated oil & gas reserves are based on many assumptions that could turn out to be inaccurate.
If a significant amount of our royalty interests is placed in suspense, our results of operations could be reduced significantly. ​ 49 Table of Contents Our estimated oil & gas reserves are based on many assumptions that could turn out to be inaccurate.
In January 2021, President Biden issued an executive order that commits to substantial action on climate change, calling for, among other things, the increased use of zero-emissions vehicles by the federal government, the elimination of subsidies provided to the fossil-fuel industry, a doubling of electricity generated by offshore wind by 2030, and increased emphasis on climate-related risks across governmental agencies and economic sectors.
In January 2021, President 46 Table of Contents Biden issued an executive order that committed to substantial action on climate change, calling for, among other things, the increased use of zero-emissions vehicles by the federal government, the elimination of subsidies provided to the fossil-fuel industry, a doubling of electricity generated by offshore wind by 2030, and increased emphasis on climate-related risks across governmental agencies and economic sectors.
Our ability to complete acquisitions is dependent upon, among other things, our ability to obtain debt and equity financing under acceptable terms. In addition, these acquisitions could be in geographic regions in which we do not currently hold properties, which could subject us to additional and unfamiliar legal and regulatory requirements.
Our ability to complete acquisitions is dependent upon, among other things, our ability to obtain debt and equity financing under acceptable terms. In addition, these acquisitions could be in geographic regions in which we do not currently hold properties, which could subject us to additional and unfamiliar legal and regulatory 51 Table of Contents requirements.
In response to tariffs imposed by the United States, the European Union, Canada, Mexico, and China have imposed tariffs on United States goods and services.
In response to tariffs imposed by the United States, the European Union, Canada, Mexico, and China have imposed tariffs on United States goods and services, including coal.
These price reopener provisions may automatically set a new price based on the prevailing market price or, in 35 Table of Contents some instances, require the parties to the contract to agree on a new price. Any adjustment or renegotiation leading to a significantly lower contract price could adversely affect our operating profit margins.
These price reopener provisions may automatically set a new price based on the prevailing market price or, in some instances, require the parties to the contract to agree on a new price. Any adjustment or renegotiation leading to a significantly lower contract price could adversely affect our operating profit margins.
If our "business interest" is subject to limitation under these rules, our unitholders will be limited in their ability to deduct their share of any interest expense that has been allocated to them.
If our “business interest” is subject to limitation under these rules, our unitholders will be limited in their ability to deduct their share of any interest expense that has been allocated to them.
We will be prohibited from making cash distributions: ​ ● during an event of default under any of our indebtedness; or ● if after such distribution, we fail to meet a coverage test based on the ratio of our consolidated cash flow to our consolidated fixed charges. ​ Various limitations in our debt agreements may reduce our ability to incur additional indebtedness, engage in some transactions, and capitalize on business opportunities.
We will be prohibited from making cash distributions: ​ ● during an event of default under any of our indebtedness; or ● if after such distribution, we fail to meet a coverage test based on the ratio of our consolidated cash flow to our consolidated fixed charges. ​ Various limitations in our debt agreements may reduce our ability to incur additional indebtedness, engage in some transactions, and capitalize on business opportunities, including the sale or disposition of certain of our mineral assets.
If the shortage of experienced labor continues or worsens, it could have an adverse impact on our labor productivity and costs and our ability to expand production in the event there is an increase in the demand for our coal, which could adversely affect our profitability. ​ Disruptions in supply chains could significantly impair our operating profitability. ​ We are dependent upon vendors to supply mining equipment, safety equipment, supplies, and materials.
If the shortage of experienced labor continues or worsens, it could have an adverse impact on our labor productivity and costs and our ability to expand production in the event there is an increase in the demand for our coal, which could adversely affect our profitability. ​ Disruptions in supply chains, inflationary pressures and unexpected increases in raw material costs could significantly impair our operating profitability. ​ We are dependent upon vendors to supply mining equipment, safety equipment, supplies, and materials.
Distributions to our unitholders would generally be taxed again as corporate distributions, and no income, gains, losses, deductions, or credits would flow through to our unitholders. Because taxes would be imposed upon us as a corporation, our cash available 53 Table of Contents for distribution to our unitholders would be substantially reduced.
Distributions to our unitholders would generally be taxed again as corporate distributions, and no income, gains, losses, deductions, or credits would flow through to our unitholders. Because taxes would be imposed upon us as a corporation, our cash available for distribution to our unitholders would be substantially reduced.
Our partnership agreement: ​ ● permits our general partner to make many decisions in its "sole discretion." This entitles our general partner to consider only the interests and factors that it desires, and it has no duty or obligation to give any consideration to any interest of, or factors affecting us, our affiliates, or any limited partner; ● provides that our general partner is entitled to make other decisions in its "reasonable discretion"; ● generally provides that affiliated transactions and resolutions of conflicts of interest not involving a required vote of unitholders must be "fair and reasonable" to us and that, in determining whether a transaction or resolution is "fair and reasonable," our general partner may consider the interests of all parties involved, including its own.
Our partnership agreement: ​ ● permits our general partner to make many decisions in its “sole discretion.” This entitles our general partner to consider only the interests and factors that it desires, and it has no duty or obligation to give any consideration to any interest of, or factors affecting us, our affiliates, or any limited partner ; ● provides that our general partner is entitled to make other decisions in its “reasonable discretion”; ● generally provides that affiliated transactions and resolutions of conflicts of interest not involving a required vote of unitholders must be “fair and reasonable” to us and that, in determining whether a transaction or resolution is “fair and reasonable,” our general partner may consider the interests of all parties involved, including its own.
Our leverage may: ​ ● adversely affect our ability to finance future operations and capital needs; ● limit our ability to pursue acquisitions and other business opportunities; ● make our results of operations more susceptible to adverse economic or operating conditions; and ● make it more difficult to self-insure for our workers' compensation obligations. ​ In addition, we have unused borrowing capacity under our revolving credit facility.
Our leverage may: ​ ● adversely affect our ability to finance future operations and capital needs; ● limit our ability to pursue acquisitions and other business opportunities; ● make our results of operations more susceptible to adverse economic or operating conditions; and ● make it more difficult to self-insure for our workers’ compensation or black lung obligations or post collateral security therefor. ​ In addition, we have unused borrowing capacity under our revolving credit facility.
Increasing government attention is being paid to global climate issues and to emissions of GHGs, including emissions due to fossil fuels. ​ In the United States, no comprehensive climate change legislation has been implemented at the federal level. However, following the U.S.
Increasing government attention is being paid to global climate issues and to emissions of GHGs, including emissions due to fossil fuels. ​ In the United States, no comprehensive climate change legislation has been implemented at the federal level.
There is the potential that an individual matter or the aggregation of multiple matters could have an adverse effect on our cash flows, results of operations, or financial position. Please see "Item 3. Legal Proceedings" and "Item 8.
There is the potential that an individual matter or the aggregation of multiple matters could have an adverse effect on our cash flows, results of operations, or financial position. Please see “Item 3. Legal Proceedings” and “Item 8.
Estimates of coal mineral reserves and 42 Table of Contents resources necessarily depend upon a number of variables and assumptions, any one of which could vary considerably from actual results.
Estimates of coal mineral reserves and resources necessarily depend upon a number of variables and assumptions, any one of which could vary considerably from actual results.
Our future growth could be limited if we are unable to continue to make acquisitions in either our coal operations or our royalties 51 Table of Contents segments, or if we are unable to successfully integrate the companies, businesses, or properties we acquire.
Our future growth could be limited if we are unable to continue to make acquisitions in either our coal operations or our royalties segments, or if we are unable to successfully integrate the companies, businesses, or properties we acquire.
In response to continued seismicity in the area, the TRRC issued a notice that it is suspending all disposal wells in the Northern Culberson-Reeves Seismic Response Area, effective January 12, 2024. ​ 45 Table of Contents The adoption or implementation of any new laws or regulations that restrict the Operators' ability to use hydraulic fracturing or dispose of produced water gathered from drilling and production activities by limiting volumes, disposal rates, disposal well locations, or otherwise, or requiring the Operators to shut down or limit the operation of disposal wells, could have a material adverse effect on our business, financial condition and results of operations. ​ Our coal operations, and the third-party operations related to our oil and gas mineral interests, are subject to a series of risks resulting from climate change. ​ Combustion of fossil fuels, such as the coal we produce and the oil & gas produced from our mineral interests, results in the emission of carbon dioxide into the atmosphere.
Relatedly, in December 2023, in response to continued seismicity within the area, the TRRC issued a notice to suspend the permits of all deep disposal wells within the Northern Culberson-Reeves Seismic Response Area. ​ The adoption or implementation of any new laws or regulations that restrict the operators’ ability to use hydraulic fracturing or dispose of produced water gathered from drilling and production activities by limiting volumes, disposal rates, 45 Table of Contents disposal well locations, or otherwise, or requiring the operators to shut down or limit the operation of disposal wells, could have a material adverse effect on our business, financial condition and results of operations. ​ Our coal operations, and the third-party operations related to our oil and gas mineral interests, are subject to a series of risks resulting from climate change. ​ Combustion of fossil fuels, such as the coal we produce and the oil & gas produced from our mineral interests, results in the emission of carbon dioxide into the atmosphere.
Accordingly, distributions to a non-U.S. unitholder will be subject to a combined withholding tax rate equal to the sum of the highest applicable effective tax rate and 10%. ​ Moreover, the transferee of an interest in a partnership that is engaged in a U.S. trade or business is generally required to withhold 10% of the "amount realized" by the transferor unless the transferor certifies that it is not a foreign person.
Accordingly, distributions to a non-U.S. unitholder will be subject to a combined withholding tax rate equal to the sum of the highest applicable effective tax rate and 10%. ​ 55 Table of Contents Moreover, the transferee of an interest in a partnership that is engaged in a U.S. trade or business is generally required to withhold 10% of the “amount realized” by the transferor unless the transferor certifies that it is not a foreign person.
Complying with these laws and regulations could be costly and time-consuming and could delay the commencement or continuation of exploration or production operations.
Complying with these laws and regulations could be 43 Table of Contents costly and time-consuming and could delay the commencement or continuation of exploration or production operations.
However, our deduction for "business interest" is limited to the sum of our business interest income and 30% of our "adjusted taxable income." For the purposes of this limitation, our adjusted taxable income is computed without regard to any business interest expense or business interest income.
However, our deduction for “business interest” is limited to the sum of our business interest income and 30% of our “adjusted taxable income.” For the purposes of this limitation, our adjusted taxable income is computed without regard to any business interest expense or business interest income.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeAdditionally, we include cybersecurity requirements in our contracts with these providers, requiring them to adhere to certain cybersecurity standards and protocols. ​ Impact of Risks from Cybersecurity Threats ​ During 2023 and through the date of this Annual Report on Form 10-K, though the Partnership and our service providers may have experienced cybersecurity incidents, we are not aware of any cybersecurity threats, including as a 58 Table of Contents result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Partnership, including our business strategy, result of operations, or financial condition.
Biggest changeAs these threats grow in complexity and scale, the industry’s efforts to prevent, detect, mitigate, and remediate such incidents become progressively more demanding and complex. ​ During 2024 and through the date of this Annual Report on Form 10-K, though the Partnership and our service providers may have experienced cybersecurity incidents, we are not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Partnership, including our business strategy, result of operations, or financial condition.
This includes the encryption of customer data, financial information, and other confidential data. ​ The above cybersecurity risk management processes are integrated into the Partnership's overall risk management program. Cybersecurity threats are understood to be dynamic and intersect with various other enterprise risks. As such, cybersecurity is considered as an important component of our enterprise-wide risk management approach.
This includes the encryption of customer data, financial information, and other confidential data. ​ The above cybersecurity risk management processes are integrated into the Partnership’s overall risk management program. Cybersecurity threats are understood to be dynamic and intersect with various other enterprise risks. As such, cybersecurity is considered an important component of our enterprise-wide risk management approach.
In the normal course of business, we may collect and store certain sensitive information, including proprietary and confidential business information, intellectual property, sensitive third-party information, employee information and personal information.
In the normal course of business, we may collect and store certain sensitive information, including proprietary and confidential business information, intellectual property, sensitive third-party information, employee information and other personal information.
The CTO reports directly to the CFO and maintains communication with the Audit Committee, the Board of Directors and the Cybersecurity Steering Committee with respect to information security and cybersecurity matters. ​ The CTO holds a Master of Business Administration from the University of Kentucky/University of Louisville's joint executive program and has an extensive background in information security, risk management, and incident response with over twenty years of varying information technology roles with increasing responsibility at both private and public companies.
The CTO reports directly to the CFO and maintains communication with the Audit Committee, the Board of Directors and the Cybersecurity Steering Committee with respect to information security and cybersecurity matters. ​ 59 Table of Contents The CTO holds a Master of Business Administration from the University of Kentucky/University of Louisville’s joint executive program and has an extensive background in information security, risk management, and incident response with over twenty years of varying information technology roles with increasing responsibility at both private and public companies.
A successful attack on our IT systems could have significant consequences to our business. While we devote resources to our security measures to protect our systems and information, these measures cannot provide absolute security. Please see "Item 1A.
A successful attack on our IT systems could have significant consequences to our business. While we devote resources to our security measures to protect our systems and information, these measures cannot provide absolute security. Please see “Item 1A.
The CTO is supported by a dedicated team of cybersecurity professionals, each bringing diverse expertise in areas such as network security, data protection, and threat intelligence. ​ 59 Table of Contents ​
The CTO is supported by a dedicated team of cybersecurity professionals, each bringing diverse expertise in areas such as network security, data protection, and threat intelligence. ​ 60 Table of Contents ​
Risk Factors" for additional information about the risks to our business associated with a breach or compromise to our information technology systems. ​ Board of Directors' Oversight of Risks from Cybersecurity Threats ​ The Board of Directors oversees risks from cybersecurity threats.
Risk Factors” for additional information about the risks to our business associated with a breach or compromise to our information technology systems. ​ Board of Directors’ Oversight of Risks from Cybersecurity Threats ​ The Board of Directors oversees risks from cybersecurity threats.
We rely on information systems for the management of this information in addition to our management of business processes including inventory, payment of obligations, collection of cash, human capital management, financial tools and other processes and procedures. Our ability to manage our business effectively depends on the reliability and capacity of these systems.
We rely on our own information systems and third-party information systems for the management of this information in addition to our management of business processes including inventory, payment of obligations, collection of cash, human capital management, financial tools and other processes and procedures. Our ability to manage our business effectively depends on the reliability, security and capacity of these systems.
The Cybersecurity Steering Committee convenes regularly to review and monitor the Partnership’s programs for the prevention, detection, mitigation, and remediation of cybersecurity incidents.
The Cybersecurity Steering Committee convenes 58 Table of Contents regularly to review and monitor the Partnership’s programs for the prevention, detection, mitigation, and remediation of cybersecurity incidents.
Feedback from these assessments is incorporated into our systems and procedures through upgrades intended to further improve our security posture. ​ 57 Table of Contents Incident Identification and Response: ​ A monitoring and detection system has been implemented to help identify cybersecurity incidents.
Feedback from these assessments is incorporated into our systems and procedures through upgrades intended to further improve our security posture. ​ Incident Identification and Response: ​ A monitoring and detection system has been implemented to help identify cybersecurity incidents. The IT Security Department is tasked with monitoring certain network activities, logs, and system behavior, leveraging threat detection technologies.
The IT Security Department is tasked with monitoring certain network activities, logs, and system behavior, leveraging threat detection technologies. In the event of any breach or cybersecurity incident, we have an incident response plan that is designed to follow industry best practices and aligns with legal and regulatory requirements.
In the event of any breach or cybersecurity incident, we have an incident response plan that is designed to follow industry best practices and aligns with legal and regulatory requirements.
Added
Additionally, we include cybersecurity requirements in our contracts with these providers, requiring them to adhere to certain cybersecurity standards and protocols. ​ Impact of Risks from Cybersecurity Threats ​ The energy industry increasingly depends on information and operational technology to sustain critical functions. However, the rise in cybersecurity incidents, whether caused by deliberate attacks or accidental events, poses substantial challenges.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWithin CGA, the technical person primarily responsible for auditing the estimates meets or exceed the education, training, and experience requirements set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers and is proficient in judiciously applying industry-standard practices to engineering and geoscience evaluations as well as applying SEC and other industry reserves definitions and guidelines. ​ Acreage Concentration ​ Our mineral interests, which include both proved reserves discussed above and unproved reserves, are primarily located in three basins, which are also our areas of focus for future operator development.
Biggest changeWithin CGA, the technical person primarily responsible for auditing the estimates meets 76 Table of Contents or exceed the education, training, and experience requirements set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers and is proficient in judiciously applying industry-standard practices to engineering and geoscience evaluations as well as applying SEC and other industry reserves definitions and guidelines. ​ Acreage Concentration ​ Below is a chart reflecting our gross, net mineral and net royalty acreage associated with our mineral interests in each of our primary basins as of December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Developed Acreage ​ Undeveloped Acreage ​ Gross Net Mineral Net Royalty Gross Net Mineral Net Royalty Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Permian Basin ​ ​ 400,436 ​ ​ 12,058 ​ ​ 16,293 ​ ​ 505,643 ​ ​ 15,226 ​ ​ 20,570 ​ Anadarko Basin ​ ​ 155,637 ​ ​ 5,608 ​ ​ 7,936 ​ ​ 320,348 ​ ​ 11,543 ​ ​ 16,374 ​ Williston Basin ​ ​ 123,877 ​ ​ 2,047 ​ ​ 2,711 ​ ​ 114,013 ​ ​ 1,884 ​ ​ 2,501 ​ Other ​ ​ 22,001 ​ ​ 802 ​ ​ 1,035 ​ ​ 43,536 ​ ​ 1,587 ​ ​ 1,943 ​ Total ​ ​ 701,951 ​ ​ 20,515 ​ ​ 27,975 ​ ​ 983,540 ​ ​ 30,240 ​ ​ 41,388 ​ ​ Oil & Gas Production Prices and Production Costs ​ For the year ended December 31, 2024, 43.9% of our production and 81.1% of our oil & gas revenues were related to oil production and sales, respectively.
ITEM 2. PROPERTIES ​ COAL MINERAL RESOURCES AND RESERVES ​ Overview of Coal Properties ​ Our coal properties are located in the Illinois Basin and the Appalachia Basin. Our Illinois Basin properties are located in western Kentucky, southern Illinois, and southern Indiana. Our Appalachian properties are located in eastern Kentucky, Maryland, western Pennsylvania, and northern West Virginia.
ITEM 2. PROPERTIES ​ COAL MINERAL RESOURCES AND RESERVES ​ Overview of Coal Properties ​ Our coal properties are located in the Illinois Basin and the Appalachia Basin. Our Illinois Basin properties are located in western Kentucky, southern Illinois, and southern Indiana. Our Appalachian properties are located in eastern Kentucky, western Maryland, western Pennsylvania, and northern West Virginia.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
Our engineering team works to ensure the integrity, accuracy, and timeliness of the data used to calculate our estimated proved reserves. Our proved resource estimates were audited by CGA. Our engineering team met with CGA periodically during the period covered by the above referenced reserve report to discuss the assumptions and methods used in the reserve estimation process.
Our engineering team works to ensure the integrity, accuracy, and timeliness of the data used to calculate our estimated proved reserves. Our proved reserve estimates were audited by CGA. Our engineering team met with CGA periodically during the period covered by the above referenced reserve report to discuss the assumptions and methods used in the reserve estimation process.
These procedures, which are intended to ensure reliability of reserve estimations, include the following: 75 Table of Contents ​ ● review and verification of historical data, which is based on actual production as reported by the Operators; ● verification of property ownership by our land department; ● review of all our reported proved reserves semi-annually including the review of all significant reserve changes and proved undeveloped reserves additions by our internal petroleum engineer; ● internally prepared reserve estimates compared to reserves audit by CGA; ● review of changes in reserves semi-annually by our internal petroleum engineer and by senior management; and ● no employee ' s compensation is tied to the amount of reserves booked. ​ CGA, an independent third-party petroleum engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
These procedures, which are intended to ensure reliability of reserve estimations, include the following: ​ ● review and verification of historical data, which is based on actual production as reported by the operators; ● verification of property ownership by our land department; ● review of all our reported proved reserves semi-annually including the review of all significant reserve changes and proved undeveloped reserves additions by our internal petroleum engineer; ● internally prepared reserve estimates compared to reserves audit by CGA; ● review of changes in reserves semi-annually by our internal petroleum engineer and by senior management; and ● no employee ’ s compensation is tied to the amount of reserves booked. ​ CGA, an independent third-party petroleum engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
Both the WKY9 and WKY11 seams were mined at these locations. In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market. ​ 66 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain River View complex surface properties and coal leases.
Both the WKY9 and WKY11 seams were mined at these locations. In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market. ​ 67 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain River View complex surface properties and coal leases.
(2) Natural gas reserve volumes are converted to BOE based on a 6:1 ratio: 6 Mcf of natural gas converts to one BOE. ​ Estimates of reserves as of December 31, 2023 were prepared using product prices equal to the unweighted arithmetic average of the first-day-of-the-month market price for each month in the period from January through December 2023.
(2) Natural gas reserve volumes are converted to BOE based on a 6:1 ratio: 6 Mcf of natural gas converts to one BOE. ​ Estimates of reserves as of December 31, 2024 were prepared using product prices equal to the unweighted arithmetic average of the first-day-of-the-month market price for each month in the period from January through December 2024.
All reserves are classified as underground mineable in the development or production stage. ​ Mining Operations ​ The following table sets forth production and other data about our mining operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tons Produced ​ ​ ​ ​ Operations Location 2023 2022 2021 Transportation Equipment ​ ​ ​ (in millions) ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior Kentucky 4.4 4.1 4.1 CSX, NS, PAL, truck, barge CM ​ River View Kentucky 9.9 10.2 9.9 Truck, barge CM ​ Hamilton County Illinois 5.6 4.7 4.9 CSX, EVW, NS, barge LW, CM ​ Gibson South Indiana 5.3 5.3 3.3 CSX, NS, truck, barge CM ​ Region Total ​ ​ 25.2 24.3 22.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining/Excel Kentucky 1.2 1.5 1.3 CSX, truck, barge CM ​ Mountain View West Virginia 0.8 1.4 1.5 CSX, truck LW, CM ​ Tunnel Ridge West Virginia 7.7 8.3 7.2 CSX, NS, barge LW, CM ​ Region Total ​ ​ 9.7 11.2 10.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ 34.9 35.5 32.2 ​ ​ ​ ​ ​ CSX - CSX Railroad EVW - Evansville Western Railroad NS - Norfolk Southern Railroad PAL - Paducah & Louisville Railroad CM - Continuous Miner LW - Longwall 62 Table of Contents ​ Individual Property Disclosures ​ We consider the following properties to be material based on multiple factors including, but not limited to, the property's contribution to our overall business and financial condition.
All reserves are classified as underground mineable in the development or production stage. ​ Mining Operations ​ The following table sets forth production and other data about our mining operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tons Produced ​ ​ ​ ​ Operations Location 2024 2023 2022 Transportation Equipment ​ ​ ​ (in millions) ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior Kentucky 4.4 4.4 4.1 CSX, NS, PAL, truck, barge CM ​ River View Kentucky 9.3 9.9 10.2 Truck, barge CM ​ Hamilton County Illinois 4.8 5.6 4.7 CSX, EVW, NS, barge LW, CM ​ Gibson South Indiana 5.7 5.3 5.3 CSX, NS, truck, barge CM ​ Region Total ​ ​ 24.2 25.2 24.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining/Excel Kentucky 0.9 1.2 1.5 CSX, truck, barge CM ​ Mountain View West Virginia 1.1 0.8 1.4 CSX, truck LW, CM ​ Tunnel Ridge West Virginia 6.0 7.7 8.3 CSX, NS, barge LW, CM ​ Region Total ​ ​ 8.0 9.7 11.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ TOTAL ​ ​ 32.2 34.9 35.5 ​ ​ ​ ​ ​ CSX - CSX Railroad EVW - Evansville Western Railroad NS - Norfolk Southern Railroad PAL - Paducah & Louisville Railroad CM - Continuous Miner LW - Longwall 63 Table of Contents ​ Individual Property Disclosures ​ We consider the following properties to be material based on multiple factors including, but not limited to, the property’s contribution to our overall business and financial condition.
CGA's audit report with the respect to our proved reserve estimates as of December 31, 2023 is included as an exhibit to this Annual Report on Form 10-K. ​ CGA was founded in 1961 and performs consulting petroleum engineering services under Texas Board of Professional Engineers Registration No. F-693.
CGA’s audit report with the respect to our proved reserve estimates as of December 31, 2024 is included as an exhibit to this Annual Report on Form 10-K. ​ CGA was founded in 1961 and performs consulting petroleum engineering services under Texas Board of Professional Engineers Registration No. F-693.
In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market for the Herrin and Springfield seams. ​ 68 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Hamilton surface properties, coal leases and owned coal.
In general, all drilling has shown highly consistent coal seams of mineable thickness and quality for the high-sulfur thermal utility market for the Herrin and Springfield seams. ​ 69 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Hamilton surface properties, coal leases and owned coal.
To establish reasonable certainty with respect to our estimated proved reserves, the technologies and economic data used in the estimation of our proved reserves included production and well test data, downhole completion information, geologic data, electrical logs, and radioactivity logs. ​ Excluding our share of proved reserves held by AllDale III, our 2023 year-end estimate of proved reserves were prepared by our internal engineering team.
To establish reasonable certainty with respect to our estimated proved reserves, the technologies and economic data used in the estimation of our proved reserves included production and well test data, downhole completion information, geologic data, electrical logs, and radioactivity logs. ​ Excluding our share of proved reserves held by AllDale III, our 2024 year-end estimate of proved reserves were prepared by our internal engineering team.
We do not incur any capital expenditures or lease operating expenses in connection with the development of our PUDs, which costs are borne entirely by the Operators. As a result, during the year ended December 31, 2023, we did not have any expenditures to convert PUDs to proved developed producing reserves.
We do not incur any capital expenditures or lease operating expenses in connection with the development of our PUDs, which costs are borne entirely by the operators. As a result, during the year ended December 31, 2024, we did not have any expenditures to convert PUDs to proved developed producing reserves.
Access at the Hamilton and UC Coal, LLC sites are considered "brownfield" developments. Though some facilities and permitting are in place, significant upgrades to existing infrastructure and new construction would be needed to bring them into good working order that meets industry standards.
Access at the Hamilton and UC Coal, LLC sites are considered “brownfield” developments. Though some facilities and permitting are in place, significant upgrades to existing infrastructure and new construction would be needed to bring them into good working order that meets industry standards.
The mine property is controlled through both fee ownership and leases of the coal. The coal mined and to be mined by Tunnel Ridge is leased from the Joseph W. Craft III Foundation, the Kathleen S. Craft Foundation, Alliance Resource Properties and third parties. Please read "Item 8.
The mine property is controlled through both fee ownership and leases of the coal. The coal mined and to be mined by Tunnel Ridge is leased from the Joseph W. Craft III Foundation, the Kathleen S. Craft Foundation, Alliance Resource Properties and third parties. Please read “Item 8.
CGA is satisfied with our methods and procedures used to prepare the December 31, 2023 reserve estimates and future revenue, and noted nothing of an unusual nature that would cause CGA to take exception with the estimates, in the aggregate, prepared by us.
CGA is satisfied with our methods and procedures used to prepare the December 31, 2024 reserve estimates and future revenue, and noted nothing of an unusual nature that would cause CGA to take exception with the estimates, in the aggregate, prepared by us.
The property is controlled through both fee ownership and leases of the coal. The coal mineral resources are controlled by Alliance Resource Properties. The base leases are with private owners and WKY CoalPlay or its subsidiaries, which are related parties. See "Item 8.
The property is controlled through both fee ownership and leases of the coal. The coal mineral resources are controlled by Alliance Resource Properties. The base leases are with private owners and WKY CoalPlay or its subsidiaries, which are related parties. See “Item 8.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2024 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2024 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2024 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2023 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral reserves as of December 31, 2024 using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Reserves Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View on the Ohio River, Water: Union and Henderson County water districts and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. ​ 65 Table of Contents ​ Description ​ The underground mines are currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstate 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View on the Ohio River, Water: Union and Henderson County water districts and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. ​ 66 Table of Contents ​ Description ​ The underground mines are currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View, Hamilton 1, UC Processing, on the Ohio River, Water: Local municipalities and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. ​ 63 Table of Contents ​ Description ​ The potential underground mine(s) would utilize room-and-pillar methods operating a heavy media, float/sink style preparation plant.
Local infrastructure is as follows: ​ Major Roads: Interstate 69 and US-60, Railroads: None, Airport: Evansville Regional Airport (EVV), Town: Morganfield, Docks: River View, Hamilton 1, UC Processing, on the Ohio River, Water: Local municipalities and mine sources, Electricity: Kentucky Utilities (KU), Personnel: Regional. ​ 64 Table of Contents ​ Description ​ The potential underground mine(s) would utilize room-and-pillar methods operating a heavy media, float/sink style preparation plant.
Business—Mineral Interest Activities", respectively. ​ Evaluation and Review of Coal Mineral Resources and Reserves ​ Numerous uncertainties are inherent in estimating coal mineral resources and reserves, and the estimates are subject to change as additional information becomes available or circumstances change.
Business—Mineral Interest Activities”, respectively. ​ Evaluation and Review of Coal Mineral Resources and Reserves ​ Numerous uncertainties are inherent in estimating coal mineral resources and reserves, and the estimates are subject to change as additional information becomes available or circumstances change.
The underlying base coal leases are with private owners and are comprised of a large number of leases originally taken by AMAX Coal Company and Old Ben in the mid to late 1970's and early, leases acquired by 67 Table of Contents Consolidation Coal Company in the late 1980's, and subsequent leases taken directly by White Oak Resources, LLC or affiliated companies and/or Alliance WOR Properties.
The underlying base coal leases are with private owners and are comprised of a large number of leases originally taken by AMAX Coal Company and Old Ben in the mid to late 1970’s and early, leases acquired by Consolidation Coal Company in the late 1980’s, and subsequent leases taken directly by White Oak Resources, LLC or affiliated companies and/or Alliance WOR Properties.
Financial Statements and Supplementary Data — Note 20 – Related-Party Transactions" for more information about advanced royalties that Henderson/Union has with WKY CoalPlay. ​ Though there is geographic overlap between the Henderson/Union and River View properties, the resources and reserves of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
Financial Statements and Supplementary Data — Note 21 – Related-Party Transactions” for more information about advanced royalties that Henderson/Union has with WKY CoalPlay. ​ Though there is geographic overlap between the Henderson/Union and River View properties, the resources and reserves of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
Total book value of the property and any associated plant and equipment for Gibson South as of December 31, 2023 was $117.0 million. ​ History ​ In November 1997, pursuant to (a) Assignment of Underground Coal Leases, (b) Partial Assignment of Underground Coal Leases and (c) Special Corporate Warranty Deed, Old Ben conveyed to MAPCO Land & Development Corporation various coal leases and fee coal interests within a large property boundary located in Gibson County, Indiana.
Total book value of the property and any associated plant and equipment for Gibson South as of December 31, 2024 was $112.0 million. ​ History ​ In November 1997, pursuant to (a) Assignment of Underground Coal Leases, (b) Partial Assignment of Underground Coal Leases and (c) Special Corporate Warranty Deed, Old Ben conveyed to MAPCO Land & Development Corporation various coal leases and fee coal interests within a large property boundary located in Gibson County, Indiana.
Our geologists and engineers also met with RESPEC periodically during the year to discuss the assumptions and methods used in the coal mineral resource and reserve estimation process. 60 Table of Contents ​ RESPEC, an independent third-party engineering firm, does not own an interest in any of our properties and is not employed on a contingent basis.
Our geologists and engineers also met with RESPEC periodically during the year to discuss the assumptions and methods used in the coal mineral resource and reserve estimation process. 61 Table of Contents ​ RESPEC, an independent third-party engineering firm, does not have an interest in any of our properties and is not employed on a contingent basis.
Financial Statements and Supplementary Data — Note 20 – Related-Party Transactions" for more information about our WKY CoalPlay transactions. These base leases generally provide for a term that can be extended until exhaustion of the leased coal.
Financial Statements and Supplementary Data — Note 21 – Related-Party Transactions” for more information about our WKY CoalPlay transactions. These base leases generally provide for a term that can be extended until exhaustion of the leased coal.
The WKY11 seam was mined at these locations. No mining has occurred on the property in the 64 Table of Contents WKY7 or WKY6 seams.
The WKY11 seam was mined at these locations. No mining has occurred on the property in the 65 Table of Contents WKY7 or WKY6 seams.
Documentation of such liens is of record in the Office of the County Commission of Ohio County, West Virginia and the Office of the Recorder of Deeds of Washington County, Pennsylvania. Please read "Item 8.
Documentation of such liens is of record in the Office of the County Commission of Ohio County, West Virginia and the Office of the Recorder of Deeds of Washington County, Pennsylvania. Please read “Item 8.
Financial Statements and Supplementary Data—Note 6 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ The KYDNR, DMP is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data—Note 12 – Long-term Debt” for more information on our accounts receivable securitization facility. ​ The KYDNR, DMP is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ The Indiana Department of Natural Resources, Division of Reclamation is responsible for oversight of active coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data — Note 12 – Long-term Debt” for more information on our accounts receivable securitization facility. ​ The Indiana Department of Natural Resources, Division of Reclamation is responsible for oversight of active coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
The table below summarizes mineral resources as of December 31, 2023, using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Resources (1) Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
The table below summarizes mineral resources as of December 31, 2024, using a cut off thickness of 4.00 feet: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quality, Washed, Dry Basis ​ % Recovery ​ Resources Tons (in millions) Thickness (ft) % Ash % Sulfur Btu lbs.
Local infrastructure is as follows: ​ Major Roads: Interstate 70, Railroads: None, Airport: Pittsburgh International Airport (PIT), Town: Wheeling, Docks: Tunnel Ridge on the Ohio River, Water: Municipal water districts and mine sources, Electricity: American Electric Power (AEP), West Penn Power (WPP) Personnel: Regional.
Local infrastructure is as follows: ​ Major Roads: Interstate 70, Railroads: None, 72 Table of Contents Airport: Pittsburgh International Airport (PIT), Town: Wheeling, Docks: Tunnel Ridge on the Ohio River, Water: Municipal water districts and mine sources, Electricity: American Electric Power (AEP), West Penn Power (WPP), Personnel: Regional.
Financial Statements and Supplemental Data - Note 20 – Related-Party Transactions" for additional information on related-party leases. Tunnel Ridge either owns or controls the surface properties upon which its facilities are located, including the preparation plant, refuse areas, mine offices, conveyor systems, shafts and slopes.
Financial Statements and Supplemental Data - Note 21 – Related-Party Transactions” for additional information on related-party leases. Tunnel Ridge either owns or controls the surface properties upon which its facilities are located, including the preparation plant, refuse areas, mine offices, conveyor systems, shafts and slopes.
Total book value of the property and any associated plant and equipment for the River View Complex as of December 31, 2023 was $312.7 million. ​ Though there is geographic overlap between the River View complex and the Henderson/Union properties, the reserves and resources of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
Total book value of the property and any associated plant and equipment for the River View complex as of December 31, 2024 was $388.8 million. ​ Though there is geographic overlap between the River View complex and the Henderson/Union properties, the reserves and resources of each are associated with different coal seams or, if in the same seam, are separated by existing mine works or geologic features into distinct areas.
Documentation of such liens is of record in the Office of the Recorder of Gibson County, Indiana. Please read "Item 8.
Documentation of such liens is of record in the Office of the Recorder of Gibson County, Indiana. Please read “Item 8.
Documentation of such liens is of record in the Office of the Union County Clerk. Please read "Item 8.
Documentation of such liens is of record in the Office of the Union County Clerk. Please read “Item 8.
Documentation of such liens is of record in the Office of the Hamilton County Clerk. Please read "Item 8.
Documentation of such liens is of record in the Office of the Hamilton County Clerk. Please read “Item 8.
Please read "Item 8. Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our credit facility. ​ The KYDNR, DMP is responsible for the review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Please read “Item 8. Financial Statements and Supplementary Data — Note 12 – Long-term Debt” for more information on our credit facility. ​ The KYDNR, DMP is responsible for the review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Alliance Properties merged into Gibson on February 19, 2018. ​ 70 Table of Contents The King's Mine operated to the east and the Wabash Mine operated to the west of the reserve area.
Alliance Properties merged into Gibson on February 19, 2018. ​ The King’s Mine operated to the east and the Wabash Mine operated to the west of the reserve area.
Financial Statements and Supplementary Data—Note 6 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Recorder of Gibson County, Indiana. Please read "Item 8.
Financial Statements and Supplementary Data—Note 12 – Long-term Debt” for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Recorder of Gibson County, Indiana. Please read “Item 8.
Financial Statements and Supplementary Data—Note 6 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Union County Clerk. Please read "Item 8.
Financial Statements and Supplementary Data—Note 12 – Long-term Debt” for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the Union County Clerk. Please read “Item 8.
The property associated with Henderson/Union has no book value as of December 31, 2023 but does have outstanding advanced royalties with WKY CoalPlay or its subsidiaries. See "Item 8.
The property associated with Henderson/Union has no book value as of December 31, 2024 but does have outstanding advanced royalties with WKY CoalPlay or its subsidiaries. See “Item 8.
Total book value of the property and any associated plant and equipment for Hamilton as of December 31, 2023 was $332.4 million. ​ History ​ There were no previous operations on the Hamilton reserves property prior to our predecessor, White Oak Resources LLC, who began construction of the mine in 2011.
Total book value of the property and any associated plant and equipment for Hamilton as of December 31, 2024 was $371.8 million. ​ History ​ There were no previous operations on the Hamilton reserves property prior to our predecessor, White Oak Resources LLC, who began construction of the mine in 2011.
We are not aware of any dry holes drilled on the acreage associated with our mineral interests during the relevant period. ​ ​
We are not aware of any dry holes drilled on the acreage associated with our mineral interests during the relevant period. ​ ​ 77 Table of Contents ​
Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our credit facility. ​ Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the County Commission of Ohio County, West Virginia and the Office of the Recorder of Deeds of Washington County, Pennsylvania.
Financial Statements and Supplementary Data — Note 12 – Long-term Debt” for more information on our credit facility. ​ 73 Table of Contents Accounts receivable generated from the sale of coal mined from this property are collateral for our accounts receivable securitization facility, evidenced by financing statements of record in the Office of the County Commission of Ohio County, West Virginia and the Office of the Recorder of Deeds of Washington County, Pennsylvania.
In general, all drilling has shown a highly consistent coal seam of mineable thickness and quality for the high-sulfur thermal utility market. ​ Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Gibson surface properties, coal leases and owned coal.
In general, all drilling has shown a highly consistent coal seam of mineable thickness and quality for the high-sulfur domestic thermal utility market and low/medium sulfur export market. ​ 71 Table of Contents Encumbrances ​ Our credit facility is secured by, among other things, liens against certain Gibson surface properties, coal leases and owned coal.
Please read "Item 8. Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our accounts receivable securitization facility. ​ Tunnel Ridge is located on the West Virginia / Pennsylvania State boundary, operating in each state.
Please read “Item 8. Financial Statements and Supplementary Data — Note 12 – Long-term Debt” for more information on our accounts receivable securitization facility. ​ Tunnel Ridge is located on the West Virginia / Pennsylvania State boundary, operating in each state.
As of December 31, 2023, approximately 14.16% of our total proved reserves were classified as PUDs. ​ Evaluation and Review of Reserves ​ Numerous uncertainties are inherent in estimating reserve volumes and values, and the estimates are subject to change as additional information becomes available.
As of December 31, 2024, approximately 10.87% of our total proved reserves were classified as PUDs. ​ Evaluation and Review of Reserves ​ Numerous uncertainties are inherent in estimating reserve volumes and values, and the estimates are subject to change as additional information becomes available.
Of our productive horizontal wells, 992 are considered natural gas wells, while the remaining 9,803 primarily produce oil. Productive wells consist of producing wells and wells capable of production, including natural gas wells awaiting pipeline connections to commence deliveries and oil wells awaiting connection to production facilities. We do not own any material working interests in any wells.
Of our productive horizontal wells, 1,079 are considered natural gas wells, while the remaining 10,651 primarily produce oil. Productive wells consist of producing wells and wells capable of production, including natural gas wells awaiting pipeline connections to commence deliveries and oil wells awaiting connection to production facilities. We do not own any material working interests in any wells.
For a detailed overview of our coal mining operations and our coal royalty activities, please see "Item 1. Business—Coal Mining Operations" and "Item 1.
For a detailed overview of our coal mining operations and our coal royalty activities, please see “Item 1. Business—Coal Mining Operations” and “Item 1.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2023 in a range from approximately $53 to $59 per short ton in the Illinois Basin and from approximately $62 to $119 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral resources.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2024 in a range from approximately $45 to $55 per short ton in the Illinois Basin and from approximately $60 to $116 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral resources.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2023 in a range from approximately $53 to $59 per short ton in the Illinois Basin and from approximately $62 to $119 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral reserves.
Tonnages are reported on a clean recoverable basis with average long-term pricing based on available third-party forecasts and historical pricing adjusted for quality at the end of 2024 in a range from approximately $45 to $55 per short ton in the Illinois Basin and from approximately $60 to $116 per short ton in the Appalachian Basin, which are the prices used by RESPEC to estimate the amount of coal mineral reserves.
If deterministic methods are used, the SEC has defined reasonable certainty for proved reserves as a "high degree of confidence that the quantities will be recovered." All of our proved reserves as of December 31, 2023 were estimated using a deterministic method. The estimation of reserves involves two distinct determinations.
If deterministic methods are used, 75 Table of Contents the SEC has defined reasonable certainty for proved reserves as a “high degree of confidence that the quantities will be recovered.” All of our proved reserves as of December 31, 2024 were estimated using a deterministic method. The estimation of reserves involves two distinct determinations.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Hamilton County Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 125.9 Production ​ (5.6) ​ Mineral Acquisition / Deletion ​ 4.1 ​ Mine Plan Adjustment ​ (4.9) ​ Normal Course Adjustments ​ 0.3 ​ Tons as of December 31, 2023 ​ 119.8 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ Gibson South Mine ​ Gibson South is located in Gibson County, Indiana at 38°18'22"N, 87°42'30"W and currently has approximately 23,350 underground acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Hamilton County Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2023 119.8 Production ​ (4.8) ​ Mineral Acquisition / Deletion ​ 0.3 ​ Mine Plan Adjustment ​ (1.3) ​ Normal Course Adjustments ​ (0.2) ​ Tons as of December 31, 2024 ​ 113.8 ​ ​ Normal course adjustments are associated with numerous small changes in the geologic/mining model. ​ Gibson South Mine ​ Gibson South is located in Gibson County, Indiana at 38°18'22"N, 87°42'30"W and currently has approximately 22,350 underground acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Gibson South Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 49.0 Production ​ (5.3) ​ Mineral Acquisition / Deletion ​ 1.5 ​ Tons as of December 31, 2023 ​ 45.2 ​ ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ 71 Table of Contents Tunnel Ridge Mine ​ Tunnel Ridge, located at 40°09'17" N, -80°39'26"W, is an underground longwall mine in the Pittsburgh No. 8 seam of coal, and currently has approximately 22,345 underground acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Gibson South Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2023 45.2 Production ​ (5.7) ​ Mineral Acquisition / Deletion ​ 1.1 ​ Normal Course Adjustments ​ (0.6) ​ Tons as of December 31, 2024 ​ 40.0 ​ ​ Normal course adjustments are associated with numerous small changes in the geologic/mining model. ​ Tunnel Ridge Mine ​ Tunnel Ridge, located at 40°09'17" N, -80°39'26"W, is an underground longwall mine in the Pittsburgh No. 8 seam of coal, and currently has approximately 22,350 underground acres permitted.
The average realized product prices weighted by production over the remaining lives of the properties are $77.61/Bbl for oil, $1.55/Mcf of natural gas and $22.63 per barrel of NGL. These prices are adjusted for energy content, associated average differential and transportation deducts by producing area to arrive at the net realized prices by product.
The average realized product prices weighted by production over the remaining lives of the properties are $75.22/Bbl for oil, $0.68/Mcf of natural gas and $17.12 per barrel of NGL. These prices are adjusted for energy content, associated average differential and transportation deducts by producing area to arrive at the net realized prices by product.
Total book value of the property and any associated plant and equipment for Tunnel Ridge as of December 31, 2023 was $301.7 million. 72 Table of Contents ​ History ​ Valley Camp Coal Company operated mines on the property prior to Tunnel Ridge's operations.
Total book value of the property and any associated plant and equipment for Tunnel Ridge as of December 31, 2024 was $334.0 million. ​ History ​ Valley Camp Coal Company operated mines on the property prior to Tunnel Ridge’s operations.
Local infrastructure is as follows: ​ Major Roads: Interstates 64, Railroads: CSX and EVW, Airport: Evansville Regional Airport (EVV), Towns: McLeansboro and Mt.
Local infrastructure is as follows: ​ Major Roads: Interstate 64, 68 Table of Contents Railroads: CSX and EVW, Airport: Evansville Regional Airport (EVV), Towns: McLeansboro and Mt.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Tunnel Ridge Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 120.0 Production ​ (7.7) ​ Mineral Acquisition / Deletion ​ (1.2) ​ Mine Plan Adjustment ​ 6.8 ​ Normal Course Adjustments ​ 0.3 ​ Tons as of December 31, 2023 ​ 118.2 ​ ​ OIL & GAS RESERVES ​ Summary of Oil & Gas Reserves ​ Our mineral interests are primarily located in three basins, which are also our areas of focus for future development.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ Tunnel Ridge Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2023 118.2 Production ​ (6.0) ​ Normal Course Adjustments ​ (1.2) ​ Tons as of December 31, 2024 ​ 111.0 ​ ​ Normal course adjustments are associated with numerous small changes in the geologic/mining model. ​ OIL & GAS RESERVES ​ Summary of Oil & Gas Reserves ​ Our mineral interests are primarily located in three basins, which are also our areas of focus for future development.
Our net acres standardized to 1/8th royalty equates to 67,745 net royalty acres, including 3,969 net royalty acres owned through our equity interest in AllDale III. ​ The following table presents our estimated net proved oil & gas reserves, including our share of reserves attributable to our equity interest in AllDale III, as of December 31, 2023 based on the reserve report prepared by our internal engineering team and reserve information provided by AllDale III.
At December 31, 2024, we had 50,755 developed and undeveloped net acres held at a weighted average royalty of 17.1%. 74 Table of Contents Our net acres standardized to 1/8th royalty equates to 69,363 net royalty acres, including 3,964 net royalty acres owned through our equity interest in AllDale III. ​ The following table presents our estimated net proved oil & gas reserves, including our share of reserves attributable to our equity interest in AllDale III, as of December 31, 2024 based on the reserve report prepared by our internal engineering team and reserve information provided by AllDale III.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and 64, Railroads: CSX and NS, Airport: Evansville Regional Airport (EVV), Town: Princeton, Docks: Mount Vernon on the Ohio River, 69 Table of Contents Water: Gibson Water, Inc. and well water, Electricity: Western Indiana Energy REMC, Personnel: Regional.
Local infrastructure is as follows: ​ Major Roads: Interstates 69 and 64, Railroads: CSX and NS, Airport: Evansville Regional Airport (EVV), Town: Princeton, Docks: Mount Vernon on the Ohio River, Water: Gibson Water, Inc. and well water, Electricity: Western Indiana Energy REMC, Personnel: Regional. 70 Table of Contents Description ​ The underground mine is currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ River View Complex Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2022 204.7 Production ​ (9.9) ​ Mineral Acquisition / Deletion (1) ​ 115.2 ​ Normal Course Adjustments ​ 0.4 ​ Tons as of December 31, 2023 ​ 310.4 ​ ​ (1) See updated TRS for River View complex at Exhibit 96.2 to this Annual Report on Form 10-K reflecting the material change to reserves for 2023. ​ Normal course adjustments are associated with numerous slight changes in the geologic model. ​ Hamilton Mine ​ Hamilton, a longwall mine located in Hamilton County, Illinois at 38°10'12"N, -88°36'47"W, currently has approximately 23,000 underground acres and 1,300 surface acres permitted.
The year over year reconciliation is as follows: ​ ​ ​ ​ ​ River View Complex Yearly Reserve Reconciliation (in millions) Tons as of December 31, 2023 310.4 Production ​ (9.3) ​ Mineral Acquisition / Deletion ​ 2.1 ​ Normal Course Adjustments ​ 0.3 ​ Tons as of December 31, 2024 ​ 303.5 ​ ​ Normal course adjustments are associated with numerous small changes in the geologic/mining model. ​ Hamilton Mine ​ Hamilton, a longwall mine located in Hamilton County, Illinois at 38°10'12"N, -88°36'47"W, currently has approximately 23,250 underground acres and 1,350 surface acres permitted.
Description ​ The underground mine is currently in production using room-and-pillar methods utilizing a heavy media, float/sink style preparation plant. Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2014. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
Exploration continues as needed to fulfill mining and permitting requirements. The mine began production in 2014. All equipment, facilities, infrastructure, and underground development are in good working order and maintained to industry standards.
There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. ​ The following table sets forth our coal mineral resources, exclusive of coal mineral reserves, at December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Resource Classification ​ Ownership ​ ​ ​ Resources (tons in millions) per pound) 1.2-2.5 >2.5 Measured Indicated Combined Inferred Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dotiki (KY) 12,100 — 2.3 73.7 51.2 24.8 76.0 — 27.6 48.4 76.0 ​ Henderson/Union (KY) 11,450 — 3.0 409.7 127.3 227.9 355.2 57.5 74.0 338.7 412.7 ​ River View (KY) 11,450 ​ — ​ — ​ 0.3 ​ — ​ — ​ — ​ 0.3 ​ — ​ 0.3 ​ 0.3 ​ Sebree South (KY) 11,750 — — 43.5 22.1 16.8 38.9 4.6 0.3 43.2 43.5 ​ Hamilton County (IL) 11,650 5.1 33.8 405.8 191.2 242.3 433.5 11.2 32.8 411.9 444.7 ​ Region Total ​ ​ 5.1 ​ 39.1 ​ 933.0 ​ 391.8 ​ 511.8 ​ 903.6 ​ 73.6 ​ 134.7 ​ 842.5 ​ 977.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mountain View (WV) 13,200 — 0.4 8.3 4.1 4.4 8.5 0.2 1.8 6.9 8.7 ​ Tunnel Ridge (WV) ​ 12,600 ​ — — 0.9 — 0.2 0.2 0.7 0.7 0.2 0.9 ​ Penn Ridge (PA) 12,500 — — 78.0 21.9 53.2 75.1 2.9 78.0 — 78.0 ​ Region Total ​ ​ — ​ 0.4 ​ 87.2 ​ 26.0 ​ 57.8 ​ 83.8 ​ 3.8 ​ 80.5 ​ 7.1 ​ 87.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 5.1 ​ 39.5 ​ 1,020.2 ​ 417.8 ​ 569.6 ​ 987.4 ​ 77.4 ​ 215.2 ​ 849.6 ​ 1,064.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 0.5% ​ 3.7% ​ 95.8% ​ 39.2% ​ 53.5% ​ 92.7% ​ 7.3% ​ 20.2% ​ 79.8% ​ 100.0% ​ (1) Combined resources are defined as measured plus indicated resources. ​ At December 31, 2023, we had approximately 1.065 billion tons of coal mineral resources.
There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. ​ The following table sets forth our coal mineral resources, exclusive of coal mineral reserves, at December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Resource Classification ​ Ownership ​ ​ ​ Resources (tons in millions) per pound) 1.2-2.5 >2.5 Measured Indicated Combined Inferred Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dotiki (KY) 12,100 — 2.4 73.6 51.2 24.8 76.0 — 27.5 48.5 76.0 ​ Henderson/Union (KY) 11,400 — 3.0 411.4 128.3 228.4 356.7 57.7 74.5 339.9 414.4 ​ River View (KY) 11,400 ​ — ​ — ​ 0.3 ​ — ​ — ​ — ​ 0.3 ​ — ​ 0.3 ​ 0.3 ​ Sebree South (KY) 11,750 — — 43.5 22.1 16.8 38.9 4.6 0.3 43.2 43.5 ​ Gibson South (IN) ​ 11,500 ​ — — 4.3 2.1 ​ 2.2 4.3 — 2.3 2.0 4.3 ​ Hamilton County (IL) 11,650 5.2 36.9 404.4 216.9 226.7 443.6 2.9 45.2 401.3 446.5 ​ Region Total ​ ​ 5.2 ​ 42.3 ​ 937.5 ​ 420.6 ​ 498.9 ​ 919.5 ​ 65.5 ​ 149.8 ​ 835.2 ​ 985.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Mountain View (WV) 13,200 — 0.4 8.3 4.1 4.4 8.5 0.2 1.8 6.9 8.7 ​ Tunnel Ridge (WV) ​ 12,600 ​ — — 0.9 — 0.2 0.2 0.7 0.7 0.2 0.9 ​ Penn Ridge (PA) 12,500 — — 78.0 21.9 53.2 75.1 2.9 78.0 — 78.0 ​ Region Total ​ ​ — ​ 0.4 ​ 87.2 ​ 26.0 ​ 57.8 ​ 83.8 ​ 3.8 ​ 80.5 ​ 7.1 ​ 87.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 5.2 ​ 42.7 ​ 1,024.7 ​ 446.6 ​ 556.7 ​ 1,003.3 ​ 69.3 ​ 230.3 ​ 842.3 ​ 1,072.6 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 0.5% ​ 4.0% ​ 95.5% ​ 41.6% ​ 51.9% ​ 93.5% ​ 6.5% ​ 21.5% ​ 78.5% ​ 100.0% ​ (1) Combined resources are defined as measured plus indicated resources. ​ At December 31, 2024, we had approximately 1.073 billion tons of coal mineral resources.
The following table sets forth information regarding production of oil & gas including our equity investment in AllDale III and certain price and cost information for each of the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2023 ​ 2022* ​ 2021* Production: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil (MBbls) ​ ​ 1,462 ​ ​ 1,104 ​ ​ 929 ​ Natural gas (MMcf) ​ ​ 6,161 ​ ​ 5,226 ​ ​ 3,881 ​ Natural gas liquids (MBbls) ​ ​ 726 ​ ​ 541 ​ ​ 402 ​ BOE (MBbls) ​ ​ 3,215 ​ ​ 2,516 ​ ​ 1,978 ​ Average Realized Prices: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil (per Bbl) ​ $ 77.40 ​ $ 94.76 ​ $ 66.19 ​ Natural gas (per Mcf) ​ $ 2.03 ​ $ 6.29 ​ $ 3.86 ​ Natural gas liquids (per Bbl) ​ $ 23.15 ​ $ 38.53 ​ $ 28.58 ​ BOE (MBbls) ​ $ 44.32 ​ $ 62.94 ​ $ 44.47 ​ Unit cost per BOE: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production and ad valorem taxes ​ $ 4.37 ​ $ 5.61 ​ $ 4.54 ​ * Recast to reflect the JC Resources Acquisition as if we, rather than JC Resources, acquired the mineral interests in 2019.
The following table sets forth information regarding production of oil & gas including our equity investment in AllDale III and certain price and cost information for each of the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ 2024 ​ 2023 ​ 2022 Production: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil (MBbls) ​ ​ 1,543 ​ ​ 1,462 ​ ​ 1,104 ​ Natural gas (MMcf) ​ ​ 6,758 ​ ​ 6,161 ​ ​ 5,226 ​ Natural gas liquids (MBbls) ​ ​ 850 ​ ​ 726 ​ ​ 541 ​ BOE (MBbls) ​ ​ 3,520 ​ ​ 3,215 ​ ​ 2,516 ​ Average Realized Prices: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil (per Bbl) ​ $ 75.03 ​ $ 77.40 ​ $ 94.76 ​ Natural gas (per Mcf) ​ $ 1.43 ​ $ 2.03 ​ $ 6.29 ​ Natural gas liquids (per Bbl) ​ $ 20.44 ​ $ 23.15 ​ $ 38.53 ​ BOE (MBbls) ​ $ 40.58 ​ $ 44.32 ​ $ 62.94 ​ Unit cost per BOE: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Production and ad valorem taxes ​ $ 4.29 ​ $ 4.37 ​ $ 5.61 ​ ​ Productive Wells ​ As of December 31, 2024, 17,502 gross productive horizontal wells and 5,772 gross productive vertical wells were located on the acreage in which we have a mineral interest.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Henderson/Union ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources 127.3 4.68 7.72 2.88 13,327 4.32 85.48 ​ Indicated Mineral Resources ​ 227.9 ​ 4.59 ​ 8.01 ​ 2.74 ​ 13,306 ​ 4.12 ​ 87.07 ​ Combined Mineral Resources ​ 355.2 ​ 4.62 ​ 7.90 ​ 2.79 ​ 13,314 ​ 4.19 ​ 86.50 ​ Inferred Mineral Resources 57.5 4.46 7.97 2.56 13,350 3.84 90.42 ​ ​ (1) See updated TRS for Henderson/Union at Exhibit 96.1 to this Annual Report 10-K reflecting the material change to resources during 2023. ​ River View Complex ​ The River View complex is located in Union County, Kentucky at 37°45'37"N, -87°56'42"W and currently has approximately 93,200 underground acres permitted.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Henderson/Union ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Measured Mineral Resources 128.3 4.72 7.72 2.88 13,327 4.32 85.72 ​ Indicated Mineral Resources ​ 228.4 ​ 4.62 ​ 8.01 ​ 2.74 ​ 13,306 ​ 4.12 ​ 87.34 ​ Combined Mineral Resources ​ 356.7 ​ 4.66 ​ 7.91 ​ 2.79 ​ 13,314 ​ 4.19 ​ 86.76 ​ Inferred Mineral Resources 57.7 4.47 7.97 2.57 13,350 3.84 90.64 ​ ​ River View Complex ​ The River View complex is located in Union County, Kentucky at 37°45'37"N, -87°56'42"W and currently has approximately 93,200 underground acres permitted.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ River View Complex ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 169.1 4.69 8.08 3.20 13,191 4.85 87.40 ​ Probable Mineral Reserves 141.3 4.56 8.25 3.18 13,141 4.85 87.25 ​ Total Mineral Reserves ​ 310.4 ​ 4.63 8.16 ​ 3.19 ​ 13,168 ​ 4.85 ​ 87.33 ​ ​ Resources associated with the River View complex are included in the Coal Mineral Resources table above. ​ The River View complex had 204.7 million tons of coal mineral reserves at the end of 2022.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ River View Complex ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 169.8 4.72 8.11 3.21 13,187 4.86 87.58 ​ Probable Mineral Reserves 133.7 4.57 8.21 3.19 13,145 4.85 87.58 ​ Total Mineral Reserves ​ 303.5 ​ 4.65 8.15 ​ 3.20 ​ 13,168 ​ 4.86 ​ 87.58 ​ ​ Resources associated with the River View complex are included in the Coal Mineral Resources table above. ​ The River View complex had 310.4 million tons of coal mineral reserves at the end of 2023.
For 2023, NGL prices averaged approximately 33% of the posted oil prices during the course of the year with an additional $3.18/Bbl deducted for transportation costs. ​ The following table summarizes our changes in proved undeveloped reserves (in MBOE): ​ ​ ​ ​ ​ ​ Beginning balance, January 1, 2023* ​ ​ 3,795 ​ Acquisitions of proved undeveloped reserves ​ ​ 38 ​ Transfers of PUDs to estimated proved developed ​ ​ (1,448) ​ Extensions and discoveries ​ ​ 2,462 ​ Revisions of previous estimates ​ ​ (1,407) ​ Ending balance, December 31, 2023 ​ ​ 3,440 ​ * Recast to reflect the JC Resources Acquisition as if we, rather than JC Resources, acquired the mineral interests in 2019.
For 2024, NGL prices averaged approximately 28% of the posted oil prices during the course of the year with an additional $4.25/Bbl deducted for transportation costs. ​ The following table summarizes our changes in proved undeveloped reserves (in MBOE): ​ ​ ​ ​ ​ ​ Beginning balance, January 1, 2024 ​ ​ 3,440 ​ Acquisitions of proved undeveloped reserves ​ ​ — ​ Transfers of PUDs to estimated proved developed ​ ​ (1,740) ​ Extensions and discoveries ​ ​ 1,571 ​ Revisions of previous estimates ​ ​ (439) ​ Ending balance, December 31, 2024 ​ ​ 2,832 ​ ​ As a mineral interest owner we have no transparency into or control over the operators’ investments and operational progress to convert PUDs to proved developed producing reserves.
Within the PADEP, the Bureau of District Mining Operations is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations. ​ Geology and Reserves ​ Tunnel Ridge extracts coal underground from the Pittsburgh No.8 seam with depths ranging from 300 to 975 feet across the reserve.
Within the PADEP, the Bureau of District Mining Operations is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations. ​ In addition to state mining and reclamation laws, operators must comply with various federal laws relevant to mining.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Gibson South ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 35.6 5.96 7.13 2.00 13,477 2.97 94.81 ​ Probable Mineral Reserves 9.6 5.33 8.15 2.51 13,322 3.77 92.82 ​ Total Mineral Reserves ​ 45.2 ​ 5.81 7.34 ​ 2.11 ​ 13,444 ​ 3.14 ​ 94.37 ​ ​ Resources associated with Gibson South are included in the Coal Mineral Resources table above. ​ The Gibson South mine had 49.0 million tons of coal mineral reserves at the end of 2022.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Gibson South ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 32.9 6.02 7.09 1.96 13,478 2.90 95.01 ​ Probable Mineral Reserves 7.1 5.48 8.31 2.64 13,290 3.97 92.40 ​ Total Mineral Reserves ​ 40.0 ​ 5.92 7.31 ​ 2.08 ​ 13,445 ​ 3.09 ​ 94.55 ​ ​ Resources associated with Gibson South are included in the Coal Mineral Resources table above. ​ The Gibson South mine had 45.2 million tons of coal mineral reserves at the end of 2023.
All of our proved reserves are located in the continental United States. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2023 ​ ​ Crude Oil Natural Gas Natural Gas Liquids Total ​ (MBbl) (MMcf) (MBbl) (MBOE) (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated proved developed reserves ​ ​ 7,754 ​ ​ 45,684 ​ ​ 5,485 ​ ​ 20,854 Estimated proved undeveloped reserves ​ ​ 1,599 ​ ​ 5,839 ​ ​ 868 ​ ​ 3,440 Total estimated proved reserves (1) ​ ​ 9,353 ​ ​ 51,523 ​ ​ 6,353 ​ ​ 24,294 (1) Proved reserves of approximately 1,780 MBOE were attributable to noncontrolling interests as of December 31, 2023.
All of our proved reserves are located in the continental United States. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2024 ​ ​ Crude Oil Natural Gas Natural Gas Liquids Total ​ (MBbl) (MMcf) (MBbl) (MBOE) (2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated proved developed reserves ​ ​ 8,301 ​ ​ 51,088 ​ ​ 6,415 ​ ​ 23,231 Estimated proved undeveloped reserves ​ ​ 1,282 ​ ​ 4,932 ​ ​ 728 ​ ​ 2,832 Total estimated proved reserves (1) ​ ​ 9,583 ​ ​ 56,020 ​ ​ 7,143 ​ ​ 26,063 (1) Proved reserves of approximately 1,879 MBOE were attributable to noncontrolling interests as of December 31, 2024.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Hamilton County ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 54.5 6.38 8.07 2.82 13,414 4.21 86.65 ​ Probable Mineral Reserves 65.3 6.60 7.98 2.85 13,422 4.24 86.77 ​ Total Mineral Reserves ​ 119.8 ​ 6.50 8.02 ​ 2.83 ​ 13,419 ​ 4.23 ​ 86.71 ​ ​ Resources associated with Hamilton County are included in the Coal Mineral Resources table above. ​ The Hamilton mine had 125.9 million tons of coal mineral reserves at the end of 2022.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Hamilton County ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 54.9 6.62 8.06 2.86 13,333 4.29 88.35 ​ Probable Mineral Reserves 58.9 6.63 7.83 2.90 13,360 4.34 88.02 ​ Total Mineral Reserves ​ 113.8 ​ 6.63 7.94 ​ 2.88 ​ 13,347 ​ 4.32 ​ 88.18 ​ ​ Resources associated with Hamilton County are included in the Coal Mineral Resources table above. ​ The Hamilton mine had 119.8 million tons of coal mineral reserves at the end of 2023.
All resources are classified as underground mineable in the exploration stage. ​ Coal Mineral Reserves ​ Reserves are assigned to our active operations and are (1) currently in production, (2) economically viable, and (3) meet the other requirements to be considered reserves as defined by the SEC. ​ 61 Table of Contents The following table sets forth coal mineral reserve information, exclusive of the coal mineral resources above, at December 31, 2023, about our coal operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Classification ​ Ownership ​ ​ ​ Reserves (tons in millions) per pound) 1.2-2.5 >2.5 Proven Probable Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior (KY) 12,300 — — 50.0 39.5 10.5 13.0 37.0 50.0 ​ River View (KY) 11,450 — — 310.4 169.1 141.3 58.0 ​ 252.4 310.4 ​ Hamilton County (IL) 11,650 — — 119.8 54.5 65.3 20.3 ​ 99.5 119.8 ​ Gibson South (IN) 11,500 0.9 9.5 34.8 35.6 9.6 15.3 29.9 45.2 ​ Region Total ​ ​ 0.9 ​ 9.5 ​ 515.0 ​ 298.7 ​ 226.7 ​ 106.6 ​ 418.8 ​ 525.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining (KY) 12,800 9.6 0.5 — 7.8 2.3 — 10.1 10.1 ​ Mountain View (WV) 13,200 — 4.4 5.1 9.1 0.4 — 9.5 9.5 ​ Tunnel Ridge (WV) 12,600 — — 118.2 64.5 53.7 11.7 106.5 118.2 ​ Region Total ​ ​ 9.6 ​ 4.9 ​ 123.3 ​ 81.4 ​ 56.4 ​ 11.7 ​ 126.1 ​ 137.8 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 10.5 ​ 14.4 ​ 638.3 ​ 380.1 ​ 283.1 ​ 118.3 ​ 544.9 ​ 663.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 1.6% ​ 2.2% ​ 96.2% ​ 57.3% ​ 42.7% ​ 17.8% ​ 82.2% ​ 100.0% ​ ​ On December 31, 2023, we had approximately 663.2 million tons of coal mineral reserves.
There is no certainty that all our mineral reserves remain economically viable as fluctuations in pricing and costs occur within the coal industry. ​ 62 Table of Contents The following table sets forth coal mineral reserve information, exclusive of the coal mineral resources above, at December 31, 2024, about our coal operations: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Heat ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Content (Btus ​ Pounds SO2 per MMBtu ​ Classification ​ Ownership ​ ​ ​ Reserves (tons in millions) per pound) 1.2-2.5 >2.5 Proven Probable Owned Leased Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrior (KY) 12,300 — — 45.1 34.9 10.2 11.5 33.6 45.1 ​ River View (KY) 11,400 — — 303.5 169.8 133.7 55.5 ​ 248.0 303.5 ​ Hamilton County (IL) 11,650 — — 113.8 54.9 58.9 8.2 ​ 105.6 113.8 ​ Gibson South (IN) 11,500 0.9 7.6 31.5 32.9 7.1 11.7 28.3 40.0 ​ Region Total ​ ​ 0.9 ​ 7.6 ​ 493.9 ​ 292.5 ​ 209.9 ​ 86.9 ​ 415.5 ​ 502.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachian Basin Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MC Mining (KY) 12,800 9.2 0.4 — 8.9 0.7 — 9.6 9.6 ​ Mountain View (WV) 13,200 — 4.7 4.0 8.4 0.3 — 8.7 8.7 ​ Tunnel Ridge (WV) 12,600 — — 111.0 60.4 50.6 11.7 99.3 111.0 ​ Region Total ​ ​ 9.2 ​ 5.1 ​ 115.0 ​ 77.7 ​ 51.6 ​ 11.7 ​ 117.6 ​ 129.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ 10.1 ​ 12.7 ​ 608.9 ​ 370.2 ​ 261.5 ​ 98.6 ​ 533.1 ​ 631.7 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ % of Total ​ ​ ​ 1.6% ​ 2.0% ​ 96.4% ​ 58.6% ​ 41.4% ​ 15.6% ​ 84.4% ​ 100.0% ​ ​ On December 31, 2024, we had approximately 631.7 million tons of coal mineral reserves.
Financial Statements and Supplementary Data — Note 6 – Long-term Debt" for more information on our credit facility. ​ Certain leases originally acquired by Consolidation Coal Company are encumbered by an overriding royalty payable to Sustainable Conservation, Inc. in the amount of the greater of $0.25 per ton or 0.75% of the average sales realization price received per ton, which sums can be credited against approximately $481,000 previously paid to Sustainable Conservation, Inc. for the assignment of these leases. ​ The Illinois Department of Natural Resources, Land Reclamation Division is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
Financial Statements and Supplementary Data — Note 12 – Long-term Debt” for more information on our credit facility. ​ The Illinois Department of Natural Resources, Land Reclamation Division is responsible for review and issuance of all permits relative to coal mining and reclamation activities, and financial assurance of comprehensive environmental protection performance standards related to surface and underground coal mining operations.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Tunnel Ridge ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 64.5 7.12 7.92 3.10 13,711 4.52 67.88 ​ Probable Mineral Reserves 53.7 7.26 8.30 3.49 13,618 5.13 68.06 ​ Total Mineral Reserves ​ 118.2 ​ 7.18 8.09 ​ 3.28 ​ 13,669 ​ 4.79 ​ 67.96 ​ ​ Resources associated with Tunnel Ridge are included in the Coal Mineral Resources table above. ​ 73 Table of Contents The Tunnel Ridge mine had 120.0 million tons of coal mineral reserves at the end of 2022.
SO2 In-Seam ​ ​ ​ ​ ​ ​ ​ ​ ​ Tunnel Ridge ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Proven Mineral Reserves 60.4 7.16 9.03 3.42 13,558 5.05 71.55 ​ Probable Mineral Reserves 50.6 7.30 9.43 3.81 13,472 5.65 71.45 ​ Total Mineral Reserves ​ 111.0 ​ 7.22 9.21 ​ 3.60 ​ 13,519 ​ 5.32 ​ 71.50 ​ ​ Resources associated with Tunnel Ridge are included in the Coal Mineral Resources table above. ​ The Tunnel Ridge mine had 118.2 million tons of coal mineral reserves at the end of 2023.
Coal sales prices vary based on coal quality, access to transportation, and other factors at each location.
Coal sales prices vary based on coal quality, access to transportation, and other factors at each location. All resources are classified as underground mineable in the exploration stage. ​ Coal Mineral Reserves ​ Reserves at our active operations are currently in production and meet the other requirements to be considered reserves as defined by the SEC.
Removed
These include the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) Basins. At December 31, 2023, we had 49,794 developed and undeveloped net acres held at a weighted average royalty of 17.0%.

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Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe plaintiffs in these cases seek class and collective action certification, which we oppose, and the courts have not yet made 77 Table of Contents definitive final rulings on these issues. The plaintiffs seek to recover alleged compensatory, liquidated and/or exemplary damages for the alleged underpayment, and costs and fees that potentially may be recoverable under applicable law.
Biggest changeThe plaintiffs sought to recover alleged compensatory, liquidated and/or exemplary damages for the alleged underpayment, and costs and fees that potentially may be recoverable under applicable law. In April 2024, we entered into a settlement agreement with the plaintiffs pursuant to which we agreed to settle all six cases for $15.3 million.
Webster County Coal, LLC et al.) against certain of our subsidiaries in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time "donning" and "doffing" equipment and to account for certain bonuses in the calculation of overtime rates and pay.
Webster County Coal, LLC, et al.) against certain of our subsidiaries in which the plaintiffs allege violations of the Fair Labor Standards Act and state law due to alleged failure to compensate for time “donning” and “doffing” equipment and to account for certain bonuses in the calculation of overtime rates and pay.
We believe our ultimate exposure, if any, will not be material to our results of operations or financial position; however, if our current belief as to the merit of the claims in these lawsuits is not upheld, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations. ​
If the settlement is not approved by the court, we believe our ultimate exposure, if any should litigation resume, will not be material to our results of operations or financial position; however, if our current belief as to the merit of the claims in these lawsuits is not upheld if litigation were to resume, it is reasonably possible that the ultimate resolution of these matters could result in a potential loss that may be material to our results of operations. ​
Hamilton County Coal, LLC, et al.) ; and filed April 13, 2021 in the U.S. District Court for the Southern District of Indiana (Prater v. Gibson County Coal, LLC, et al.).
Hamilton County Coal, LLC, et al.) ; and filed April 13, 2021 in the U.S. District Court for the Southern District of Indiana (Prater v. Gibson County Coal, LLC, et al.). The plaintiffs in these cases sought class and collective action certification, which we opposed.
However, we cannot assure you that disputes or litigation will not arise or that we will be able to resolve any such future disputes or litigation in a satisfactory manner. The information under "General Litigation" and "Other" in "Item 8.
However, we cannot assure you that disputes or litigation will not arise or that we will be able to resolve any such future disputes or litigation in a satisfactory manner. From time to time, we are also a party to certain environmental legal proceedings involving governmental authorities.
Financial Statements and Supplementary Data—Note 21 – Commitments and Contingencies" is incorporated herein by this reference. ​ Litigation was initiated in November 2019 in the U.S. District Court for the Western District of Kentucky (Branson v.
Our threshold for disclosing material environmental legal proceedings involving a governmental authority where potential monetary sanctions are involved is $1.0 million. The information under “General Litigation” and “Other” in “Item 8. Financial Statements and Supplementary Data—Note 16 – Commitments and Contingencies” is incorporated herein by this reference. ​ Litigation was initiated in November 2019 in the U.S.
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District Court for the Western District of Kentucky (Branson v.
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The settlement is subject to and awaiting court approval.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn January 2023, the Board of Directors authorized a $93.5 million increase to the unit purchase program, which had $6.5 million of available capacity at the time.
Biggest changeIn January 2023, the Board of Directors authorized a $93.5 million increase to the unit purchase program, which had $6.5 million of available capacity at the time, authorizing us to be able to repurchase up to a total of $100.0 million of ARLP common units from that date.
"Available cash," as defined in our partnership agreement, generally means, with respect to any quarter, all cash on hand at the end of each quarter, plus working capital borrowings after the end of the quarter, less cash reserves in the amount necessary or appropriate in the reasonable discretion of our general partner to (a) provide for the proper conduct of our business, (b) comply with applicable law or any debt instrument or other agreement of ours or any of our affiliates, and (c) provide funds for distributions to unitholders for any one or more of the next four quarters. ​ Equity Compensation Plans ​ The information relating to our equity compensation plans required by Item 5 is incorporated by reference to such information as set forth in "Item 12.
“Available cash,” as defined in our partnership agreement, generally means, with respect to any quarter, all cash on hand at the end of each quarter, plus working capital borrowings after the end of the quarter, less cash reserves in the amount necessary or appropriate in the reasonable discretion of our general partner to (a) provide for the proper conduct of our business, (b) comply with applicable law or any debt instrument or other agreement of ours or any of our affiliates, and (c) provide funds for distributions to unitholders for any one or more of the next four quarters. ​ Equity Compensation Plans ​ The information relating to our equity compensation plans required by Item 5 is incorporated by reference to such information as set forth in “Item 12.
The unit repurchase program authorization does not obligate ARLP to repurchase any dollar amount or number of units, and repurchases may be commenced or suspended from time to time without prior notice. ​ During the three months ended December 31, 2023, we did not repurchase and retire any units.
The unit repurchase program authorization does not obligate ARLP to repurchase any dollar amount or number of units, and repurchases may be commenced or suspended from time to time without prior notice. ​ During the three months ended December 31, 2024, we did not repurchase and retire any units.
ITEM 5. MARKET FOR REGISTRANT ' S COMMON EQUITY, RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ​ The common units representing limited partners' interests are listed on the NASDAQ Global Select Market under the symbol "ARLP." The common units began trading on August 20, 1999.
ITEM 5. MARKET FOR REGISTRANT ’ S COMMON EQUITY, RELATED UNITHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ​ The common units representing limited partners’ interests are listed on the NASDAQ Global Select Market under the symbol “ARLP.” The common units began trading on August 20, 1999.
Since the inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million. The remaining authorized amount for unit repurchases under this program was $80.6 million at December 31, 2023. ​ ​ ​ 79 Table of Contents ITEM 6. [ Reserved] ​
Since the inception of the unit repurchase program, we have repurchased and retired 6,390,446 units at an average unit price of $17.67 for an aggregate purchase price of $112.9 million. The remaining authorized amount for unit repurchases under this program was $80.6 million as of December 31, 2024. ​ ITEM 6. [ Reserved] ​ 79 Table of Contents ​
Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters" contained herein. ​ Unit Repurchase Program ​ On May 31, 2018, ARLP announced that the Board of Directors approved the establishment of a unit repurchase program authorizing ARLP to repurchase up to $100 million of its outstanding limited partner common units.
Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters” contained herein. ​ Unit Repurchase Program ​ On May 31, 2018, ARLP announced that the Board of Directors approved the establishment of a unit repurchase program authorizing ARLP to repurchase up to $100.0 million of its outstanding limited partner common units.
There were approximately 53,108 record holders of common units at December 31, 2023. ​ Available cash with respect to each quarter may, at the discretion of our general partner, be distributed to the limited partners as of a record date selected by the general partner.
There were approximately 57,137 record holders of common units at December 31, 2024. ​ Available cash with respect to each quarter may, at the discretion of our general partner, be distributed to the limited partners as of a record date selected by the general partner.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeOrganization and Presentation ​ 107 ​ ​ 2. Summary of Significant Accounting Policies ​ 109 ​ ​ 3. Acquisitions ​ 117 ​ ​ 4. Inventories ​ 120 ​ ​ 5. Property, Plant and Equipment ​ 121 ​ ​ 6. Long-Term Debt ​ 122 ​ ​ 7. Income Taxes ​ 124 ​ ​ 8. Leases ​ 126 ​ ​ 9.
Biggest changeOrganization and Presentation ​ 103 ​ ​ 2. Summary of Significant Accounting Policies ​ 105 ​ ​ 3. Variable Interest Entities ​ 113 ​ ​ 4. Acquisitions ​ 115 ​ ​ 5. Fair Value Measurements ​ 118 ​ ​ 6. Inventories ​ 120 ​ ​ 7. Digital Assets ​ 120 ​ ​ 8.
Item 6. ​ [Reserved] ​ 80 Item 7. ​ Management's Discussion and Analysis of Financial Condition and Results of Operations ​ 80 Item 7A. ​ Quantitative and Qualitative Disclosures about Market Risk ​ 97 Item 8. ​ Financial Statements and Supplementary Data ​ 99 ​ ​ Report of Independent Registered Public Accounting Firm-Grant Thornton LLP (PCAOB ID Number 248) ​ 100 ​ ​ Consolidated Balance Sheets ​ 102 ​ ​ Consolidated Statements of Income ​ 103 ​ ​ Consolidated Statements of Comprehensive Income ​ 104 ​ ​ Consolidated Statements of Cash Flows ​ 105 ​ ​ Consolidated Statement of Partners' Capital ​ 106 ​ ​ Notes to Consolidated Financial Statements ​ 107 ​ ​ 1.
Item 6. ​ [Reserved] ​ 79 Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 80 Item 7A. ​ Quantitative and Qualitative Disclosures about Market Risk ​ 93 Item 8. ​ Financial Statements and Supplementary Data ​ 95 ​ ​ Report of Independent Registered Public Accounting Firm (PCAOB ID Number 248) ​ 96 ​ ​ Consolidated Balance Sheets ​ 98 ​ ​ Consolidated Statements of Income ​ 99 ​ ​ Consolidated Statements of Comprehensive Income ​ 100 ​ ​ Consolidated Statements of Cash Flows ​ 101 ​ ​ Consolidated Statement of Partners’ Capital ​ 102 ​ ​ Notes to Consolidated Financial Statements ​ 103 ​ ​ 1.
Concentration of Credit Risk and Major Customers ​ 144 ​ ​ 23. Segment Information ​ 145 ​ ​ Supplemental Oil & Gas Reserve Information (Unaudited) ​ 148 ​ ​ Schedule I – Condensed Financial Information of Registrant ​ 153
Subsequent Event ​ 146 ​ ​ Supplemental Oil & Gas Reserve Information (Unaudited) ​ 147 ​ ​ Schedule I – Condensed Financial Information of Registrant ​ 152
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Fair Value Measurements ​ 127 ​ ​ 10. Partners' Capital ​ 127 ​ ​ 11. Variable Interest Entities ​ 128 ​ ​ 12. E quity Investments ​ 130 ​ ​ 13. Revenue From Contracts With Customers ​ 131 ​ ​ 14. Earnings Per Limited Partner Unit ​ 132 ​ ​ 15. Employee Benefit Plans ​ 133 ​ ​ 16.
Added
Property, Plant and Equipment ​ 121 ​ ​ 9. Long-Lived Asset Impairments ​ 121 ​ ​ 10. E quity Investments ​ 122 ​ ​ 11. Leases ​ 123 ​ ​ 12. Long-Term Debt ​ 124 ​ ​ 13. Accrued Workers’ Compensation and Pneumoconiosis Benefits ​ 127 ​ ​ 14. Employee Benefit Plans ​ 129 ​ ​ 15.
Removed
Common Unit-Based Compensation Plans ​ 137 ​ ​ 17. Supplemental Cash Flow Information ​ 138 ​ ​ 18. Asset Retirement Obligations ​ 139 ​ ​ 19. Accrued Workers' Compensation and Pneumoconiosis Benefits ​ 140 ​ ​ 20. Related-Party Transactions ​ 142 ​ ​ 21. Commitments and Contingencies ​ 144 ​ ​ 22.
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Asset Retirement Obligations ​ 133 ​ ​ 16. Commitments and Contingencies ​ 134 ​ ​ 17. Partners’ Capital ​ 134 ​ ​ 18. Common Unit-Based Compensation Plans ​ 135 ​ ​ 19. Revenue From Contracts With Customers ​ 137 ​ ​ 20. Concentration of Credit Risk and Major Customers ​ 137 ​ ​ 21.
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Related-Party Transactions ​ 138 ​ ​ 22. Income Taxes ​ 140 ​ ​ 23. Earnings Per Limited Partner Unit ​ 141 ​ ​ 24. Supplemental Cash Flow Information ​ 142 ​ ​ 25. Segment Information ​ 142 ​ ​ 26.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeTransportation revenues are recognized when title to the coal passes to the customer and recognized in an amount equal to the corresponding transportation expenses. ​ Segment Adjusted EBITDA ​ Our 2023 Segment Adjusted EBITDA decreased $20.4 million, or 2.0%, to $1.01 billion from 2022 Segment Adjusted EBITDA of $1.03 billion primarily as a result of higher operating expenses and outside coal purchases, partially offset by increased revenues. ​ For a definition of Segment Adjusted EBITDA and related reconciliation to its comparable GAAP financial measure, please see below under "—Reconciliation of Non-GAAP Financial Measures." ​ 84 Table of Contents Segment Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2022 (1) ​ Increase (Decrease) ​ (in thousands) ​ Segment Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 514,118 ​ $ 420,684 ​ $ 93,434 ​ 22.2 % Appalachia Coal Operations ​ 330,723 ​ 426,402 ​ (95,679) ​ (22.4) % Oil & Gas Royalties ​ ​ 121,508 ​ ​ 143,179 ​ ​ (21,671) ​ (15.1) % Coal Royalties ​ ​ 41,163 ​ ​ 38,809 ​ ​ 2,354 ​ 6.1 % Other, Corporate and Elimination (2) ​ 4,661 ​ 3,495 ​ 1,166 33.4 % Total Segment Adjusted EBITDA (3) ​ $ 1,012,173 ​ $ 1,032,569 ​ $ (20,396) ​ (2.0) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal - Tons sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ 24,724 ​ 24,110 ​ 614 ​ 2.5 % Appalachia Coal Operations ​ 9,718 ​ 11,479 ​ (1,761) ​ (15.3) % Total tons sold ​ 34,442 ​ 35,589 ​ (1,147) ​ (3.2) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal sales ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 1,364,901 ​ $ 1,219,943 ​ $ 144,958 ​ 11.9 % Appalachia Coal Operations ​ 845,309 ​ 882,286 ​ (36,977) ​ (4.2) % Total coal sales ​ $ 2,210,210 ​ $ 2,102,229 ​ $ 107,981 ​ 5.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 10,505 ​ $ 6,822 ​ $ 3,683 ​ 54.0 % Appalachia Coal Operations ​ 1,885 ​ 1,481 ​ 404 ​ 27.3 % Oil & Gas Royalties ​ ​ 3,774 ​ ​ 3,837 ​ ​ (63) ​ (1.6) % Coal Royalties ​ ​ 42 ​ ​ 56 ​ ​ (14) ​ (25.0) % Other, Corporate and Elimination ​ 60,244 ​ 40,622 ​ 19,622 ​ 48.3 % Total other revenues ​ $ 76,450 ​ $ 52,818 ​ $ 23,632 ​ 44.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Segment Adjusted EBITDA Expense ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Illinois Basin Coal Operations ​ $ 861,288 ​ $ 806,080 ​ $ 55,208 ​ 6.8 % Appalachia Coal Operations ​ 516,471 ​ 464,029 ​ 52,442 ​ 11.3 % Oil & Gas Royalties ​ ​ 16,532 ​ ​ 15,395 ​ ​ 1,137 ​ 7.4 % Coal Royalties ​ ​ 24,451 ​ ​ 21,871 ​ ​ 2,580 ​ 11.8 % Other, Corporate and Elimination (2) ​ (14,024) ​ (23,497) ​ 9,473 40.3 % Total Segment Adjusted EBITDA Expense (3) ​ $ 1,404,718 ​ $ 1,283,878 ​ $ 120,840 ​ 9.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil & Gas Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - BOE (4) ​ ​ 3,105 ​ ​ 2,405 ​ ​ 700 ​ 29.1 % Oil & gas royalties ​ $ 137,751 ​ $ 151,060 ​ $ (13,309) (8.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - Tons sold (5) ​ $ 20,186 ​ ​ 21,780 ​ $ (1,594) ​ (7.3) % Intercompany coal royalties ​ 65,572 ​ $ 60,624 ​ 4,948 ​ 8.2 % (1) Recast for the JC Resources Acquisition.
Biggest changeFinancial Statements and Supplementary Data—Note 7 – Digital Assets” for more information on our digital assets. ​ Net income attributable to ARLP ​ Net income attributable to ARLP for 2024 was $360.9 million, or $2.77 per basic and diluted limited partner unit, compared to $630.1 million, or $4.81 per basic and diluted limited partner unit, for 2023 as a result of lower revenues, increased operating expenses and a $31.1 million non-cash impairment charge, partially offset by a $22.4 million increase in the fair value of our digital assets. ​ Segment Adjusted EBITDA ​ Our 2024 Segment Adjusted EBITDA decreased $215.7 million, or 21.3%, to $796.5 million from 2023 Segment Adjusted EBITDA of $1.01 billion. ​ 84 Table of Contents Segment Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2023 ​ Increase (Decrease) ​ (in thousands) ​ Illinois Basin Coal Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tons sold ​ ​ 24,787 ​ 24,724 ​ 63 ​ 0.3 % Coal sales ​ $ 1,399,100 ​ $ 1,364,901 ​ $ 34,199 ​ 2.5 % Other revenues ​ $ 11,901 ​ $ 10,505 ​ $ 1,396 ​ 13.3 % Segment Adjusted EBITDA Expense ​ $ 937,083 ​ $ 861,288 ​ $ 75,795 ​ 8.8 % Segment Adjusted EBITDA ​ $ 473,918 ​ $ 514,118 ​ $ (40,200) ​ (7.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Appalachia Coal Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tons sold ​ ​ 8,532 ​ 9,718 ​ (1,186) ​ (12.2) % Coal sales ​ $ 712,703 ​ $ 845,309 ​ $ (132,606) ​ (15.7) % Other revenues ​ $ 3,091 ​ $ 1,885 ​ $ 1,206 ​ 64.0 % Segment Adjusted EBITDA Expense ​ $ 551,734 ​ $ 516,471 ​ $ 35,263 ​ 6.8 % Segment Adjusted EBITDA ​ $ 164,060 ​ $ 330,723 ​ $ (166,663) ​ (50.4) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil & Gas Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - BOE (1) ​ ​ 3,402 ​ ​ 3,105 ​ 297 ​ 9.6 % Oil & gas royalties ​ $ 138,311 ​ $ 137,751 ​ $ 560 ​ 0.4 % Other revenues ​ $ 825 ​ $ 3,774 ​ $ (2,949) ​ (78.1) % Segment Adjusted EBITDA Expense ​ $ 19,853 ​ $ 16,532 ​ $ 3,321 ​ 20.1 % Segment Adjusted EBITDA ​ $ 116,958 ​ $ 121,508 ​ $ (4,550) ​ (3.7) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Coal Royalties ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume - Tons sold (2) ​ ​ 21,085 ​ ​ 20,186 ​ 899 ​ 4.5 % Intercompany coal royalties ​ $ 69,676 ​ $ 65,572 ​ $ 4,104 ​ 6.3 % Other revenues ​ $ 65 ​ $ 42 ​ $ 23 ​ 54.8 % Segment Adjusted EBITDA Expense ​ $ 25,759 ​ $ 24,451 ​ $ 1,308 ​ 5.3 % Segment Adjusted EBITDA ​ $ 43,982 ​ $ 41,163 ​ $ 2,819 ​ 6.8 % (1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).
Segment Adjusted EBITDA is a key component of consolidated EBITDA, which is used as a supplemental financial measure by management and by external users of our financial statements such as investors, commercial banks, research analysts and others.
Segment Adjusted EBITDA is a key component of consolidated Adjusted EBITDA, which is used as a supplemental financial measure by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others.
Assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, if any, is recorded as goodwill.
Assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess purchase price over the fair value of net assets acquired, if any, is recorded as goodwill.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ The following discussion of our financial condition and results of operations should be read in conjunction with the historical financial statements and notes thereto included in "Item 8.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ The following discussion of our financial condition and results of operations should be read in conjunction with the historical financial statements and notes thereto included in “Item 8.
Two of our mines also have loading facilities located on the Ohio River. ​ In addition to our mining operations, Alliance Resource Properties owns or leases substantially all of our coal mineral resources and the majority of our coal mineral reserves in the Illinois and Appalachia Basins that are (a) leased to our internal mining complexes or (b) near our coal mining operations but not yet leased. ​ We currently own minerals interests in approximately 67,700 net royalty acres in premier oil & gas producing regions of the United States, primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins providing us with diversified exposure to industry-leading operators consistent with our general strategy to grow our oil & gas mineral interest business. ​ We have invested in energy and infrastructure opportunities including our investments in Francis, Infinitum, NGP ET IV, and Ascend which are in the businesses of, respectively, electric vehicle charging stations, electric motor manufacturing, private equity investments in renewable energy, the electrification of our economy or the efficient use of energy, and the manufacturing and recycling of sustainable, engineered battery materials for electric vehicles. ​ Please see "Item 1.
Two of our mines also have loading facilities located on the Ohio River. ​ In addition to our mining operations, Alliance Resource Properties owns or leases substantially all of our coal mineral resources and the majority of our coal mineral reserves in the Illinois and Appalachia Basins that are (a) leased to our internal mining complexes or (b) near our coal mining operations but not yet leased. ​ We currently own minerals interests in approximately 70,000 net royalty acres in premier oil & gas producing regions of the United States, primarily in the Permian (Delaware and Midland), Anadarko (SCOOP/STACK) and Williston (Bakken) basins providing us with diversified exposure to industry-leading operators consistent with our general strategy to grow our oil & gas mineral interest business. ​ We have invested in energy and infrastructure opportunities including our investments in Francis, Infinitum, NGP ET IV, and Ascend which are in the businesses of, respectively, electric vehicle charging stations, electric motor manufacturing, private equity investments in renewable energy, the electrification of our economy or the efficient use of energy, and the manufacturing and recycling of sustainable, engineered battery materials for electric vehicles. ​ Please see “Item 1.
We believe that the presentation of EBITDA provides useful information to investors regarding our performance and results of operations because EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. ​ Segment Adjusted EBITDA is also used as a supplemental financial measure by our management for reasons similar to those stated in the previous explanation of EBITDA.
We believe that the presentation of consolidated Adjusted EBITDA provides useful information to investors 82 Table of Contents regarding our performance and results of operations because Adjusted EBITDA, when used in conjunction with related GAAP financial measures, (i) provides additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provides investors with the financial analytical framework upon which we base financial, operational, compensation and planning decisions and (iii) presents a measurement that investors, rating agencies and debt holders have indicated is useful in assessing us and our results of operations. ​ Segment Adjusted EBITDA is also used as a supplemental measure by our management for reasons similar to those stated in the previous explanation of Adjusted EBITDA.
Under the service cost method used to 95 Table of Contents estimate our pneumoconiosis benefits liability, actuarial gains or losses attributable to changes in actuarial assumptions, such as the discount rate, are amortized over the remaining service period of active miners. ​ The discount rate for workers' compensation and pneumoconiosis is derived by applying the Financial Times Stock Exchange Pension Discount Curve to the projected liability payout.
Under the service cost method used to estimate our pneumoconiosis benefits liability, actuarial gains or losses attributable to changes in actuarial assumptions, such as the discount rate, are amortized over the remaining service period of active miners. ​ The discount rate for workers’ compensation and pneumoconiosis is derived by applying the Financial Times Stock Exchange Pension Discount Curve to the projected liability payout.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75 or 90 day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible. We retained a 7.25% participating interest in our current commercial property insurance program.
The maximum limit in the commercial property program is $100.0 million per occurrence, excluding a $1.5 million deductible for property damage, a 75- or 90-day waiting period for underground business interruption depending on the mining complex and an additional $25.0 million overall aggregate deductible. We retained a 2.50% participating interest in our current commercial property insurance program.
However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future covenant compliance or liquidity may be adversely affected. Please see "Item 1A.
However, to the extent operating cash flow or access to and cost of financing sources are materially different than expected, future covenant compliance or liquidity may be adversely affected. Please see “Item 1A.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt" for a discussion of our debt obligations. ​ Critical Accounting Policies and Estimates ​ Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
Financial Statements and Supplementary Data—Note 12 – Long-Term Debt” for a discussion of our debt obligations. ​ Critical Accounting Policies and Estimates ​ Our discussion and analysis of our financial condition, results of operations, liquidity and capital resources is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.
We believe that existing cash balances, future cash flows from operations and investments, borrowings under credit facilities and cash provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, contractual obligations, commitments and distribution payments.
We believe that existing cash balances, future cash flows from operations and investments, borrowings under credit facilities and cash 86 Table of Contents provided from the issuance of debt or equity will be sufficient to meet our working capital requirements, capital expenditures and additional investments, debt payments, contractual obligations, commitments and distribution payments.
The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. ​ 94 Table of Contents For the Belvedere, Jase and Skyland Acquisitions, we determined a fair value for the acquired mineral interests using an income approach consisting of discounted cash flow models.
The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. ​ For the Belvedere, Jase and Skyland Acquisitions, we determined a fair value for the acquired mineral interests using an income approach consisting of discounted cash flow models.
Examples of these types of costs, common to both types of mining, include, but are not limited to, removing or covering refuse piles and settling ponds, water treatment obligations, and dismantling preparation plants, other facilities and roadway infrastructure. Accrued liabilities of $150.4 million and $149.8 million for these costs are recorded at December 31, 2023 and 2022, respectively.
Examples of these types of costs, common to both types of mining, include, but are not limited to, removing or covering refuse piles and settling ponds, water treatment obligations, and dismantling preparation plants, other facilities and roadway infrastructure. Accrued liabilities of $158.8 million and $150.4 million for these costs are recorded at December 31, 2024 and 2023, respectively.
In addition, changes in the price of oil & gas also impact certain costs associated with our expected underlying production and future capital costs. The prices of oil & gas are volatile and change from period to period, thus are expected to impact our estimates.
In addition, changes in the price of oil & gas also impact certain costs associated with our expected underlying production and future capital costs. 89 Table of Contents The prices of oil & gas are volatile and change from period to period, thus are expected to impact our estimates.
For additional information regarding our risks and uncertainties that affect our business and the industries in which we operate, see "Item 1A.
For additional information regarding our risks and uncertainties that affect our business and the industries in which we operate, see “Item 1A.
Financial Statements and Supplementary Data" where you can find more detailed information in "Note 1 – Organization and Presentation" and "Note 2 – Summary of Significant Accounting Policies" regarding the basis of presentation supporting the following financial information. ​ Executive Overview ​ Organization ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
Financial Statements and Supplementary Data” where you can find more detailed information in “Note 1 – Organization and Presentation” and “Note 2 – Summary of Significant Accounting Policies” regarding the basis of presentation supporting the following financial information. ​ Executive Overview ​ Organization ​ We are a diversified natural resource company that generates operating and royalty income from the production and marketing of coal to major domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located in strategic producing regions across the United States.
We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.76 per ton produced. For additional information on our future cash requirements other than capital expenditures, please see "Item 8.
We currently project average estimated annual maintenance capital expenditures over the next five years of approximately $7.28 per ton produced. For additional information on our future cash requirements other than capital expenditures, please see “Item 8.
The following critical accounting policies are materially impacted by judgments, assumptions and estimates used in the preparation of our consolidated financial statements: ​ Business Combinations ​ We account for business acquisitions using the purchase method of accounting. See "Item 8. Financial Statements and Supplementary Data—Note 3 – Acquisitions" for more information on the Belvedere, Jase and Skyland Acquisitions.
The following critical accounting policies are materially impacted by judgments, assumptions and estimates used in the preparation of our consolidated financial statements: ​ Business Combinations ​ We account for business acquisitions using the purchase method of accounting. See “Item 8. Financial Statements and Supplementary Data—Note 4 – Acquisitions” for more information on the Belvedere, Jase and Skyland Acquisitions.
We also regularly compare projected volumes to actual volumes reported and investigate unexpected variances. ​ Price per BOE ​ We define price per BOE as total oil & gas royalties divided by BOE produced.
We also regularly compare budgeted to actual volumes and investigate unexpected variances. We define price per BOE as total oil & gas royalties divided by BOE produced.
Management anticipates having sufficient cash flow to meet 2024 cash requirements with our December 31, 2023 cash and cash equivalents of $59.8 million and cash flows from operations, or borrowings under revolving credit and securitization facilities or other sources of financing that we expect to have available if necessary.
Management anticipates having sufficient cash flow to meet 2024 cash requirements with our December 31, 2024 cash and cash equivalents of $137.0 million and cash flows from operations, or borrowings under revolving credit and securitization facilities or other sources of financing that we expect to have available if necessary.
A one-percentage-point reduction in the discount rate would have increased operating expense by approximately $2.4 million at December 31, 2023. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a particular claim year have been met.
A one-percentage-point reduction in the discount rate would have increased operating expense by approximately $2.1 million for the year ended December 31, 2024. We limit our exposure to traumatic injury claims by purchasing a high deductible insurance policy that starts paying benefits after deductibles for a particular claim year have been met.
Approximately 60% of the coal sold by our coal operations' mines was leased from our Coal Royalties entities. ​ ● Other, Corporate and Elimination includes marketing and administrative activities, the Matrix Group , our investments in Francis, Infinitum, NGP ET IV and Ascend, Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Resource Finance Corporation (both discussed in "Item 8.
Approximately 63% of the coal sold by our coal operations’ mines was leased from our Coal Royalties entities. ​ ● Other, Corporate and Elimination includes marketing and administrative activities, the Matrix Group , Bitiki, which holds our crypto-mining activities , our investments in Francis, Infinitum, NGP ET IV and Ascend, Wildcat Insurance, which assists the ARLP Partnership with its insurance requirements, AROP Funding and Alliance Resource Finance Corporation (both discussed in “Item 8.
Higher BOE volumes during 2023 resulted from increased drilling and completion activities on our properties and additional volumes from oil & gas mineral interest acquisitions. ​ Coal Royalties – Segment Adjusted EBITDA increased 6.1% to $41.2 million for 2023 from $38.8 million in 2022.
Higher BOE volumes during 2024 resulted from increased drilling and completion activities on our properties and additional volumes from oil & gas mineral interest acquisitions. ​ Coal Royalties – Segment Adjusted EBITDA increased 6.8% to $44.0 million for 2024 from $41.2 million in 2023.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt". ​ Mine Development Project ​ In 2022, we began development of the Henderson County mine which continued through 2023 and into 2024. We have deployed capital of $69.3 million through 2023 and currently anticipate deploying capital of approximately $36.5 million in 2024 to complete the project.
Financial Statements and Supplementary Data – Note 12 – Long-Term Debt.” ​ Mine Development Project ​ In 2022, we began development of the Henderson County mine which continued through 2023 and into 2024. We have deployed capital of $114.3 million through 2024 and currently anticipate deploying capital of approximately $6.6 million in 2025 to complete the project.
See "Item 8. Financial Statements and Supplementary Data—Note 18 – Asset Retirement Obligations" for additional information. The liability for asset retirement and closing procedures is sensitive to changes in cost estimates, estimated mine lives and timing of post-mine reclamation activities.
See “Item 8. Financial Statements and Supplementary Data—Note 15 – Asset Retirement Obligations” for additional information. The liability for asset retirement and closing procedures is sensitive to changes in cost estimates, estimated mine lives and timing of post-mine reclamation activities.
We had accrued liabilities of $132.4 million and $104.3 million for the pneumoconiosis benefits at December 31, 2023 and 2022, respectively. A one-percentage-point reduction in the discount rate would have increased the expense recognized for the year ended December 31, 2023 by approximately $1.4 million.
We had accrued liabilities of $124.3 million and $132.4 million for the pneumoconiosis benefits at December 31, 2024 and 2023, respectively. A one-percentage-point reduction in the discount rate would have increased the expense recognized for the year ended December 31, 2024 by approximately $2.0 million.
Adjustments to the liability associated with these assumptions resulted in an increase of $17.4 million for the year ended December 31, 2022. ​ While the precise amount of these future costs cannot be determined with certainty, we have estimated the costs and timing of future asset retirement obligations escalated for inflation, then discounted and recorded at the present value of those estimates.
Adjustments to the liability associated with these assumptions resulted in a decrease of $1.5 million for the year ended December 31, 2023. ​ While the precise amount of these future costs cannot be determined with certainty, we have estimated the costs and timing of future asset retirement obligations escalated for inflation, then discounted and recorded at the present value of those estimates.
Risk Factors". ​ Business Strategy ​ Our primary business strategy is to create sustainable, capital-efficient growth in available cash to maximize unitholder returns by: ​ ● expanding our coal operations by adding and developing mines and coal mineral reserves and resources in existing, adjacent or neighboring properties; ● extending the lives of our current mining operations through the acquisition and development of coal mineral reserves and resources using our existing infrastructure; ● continuing to make productivity improvements to remain a low-cost coal producer in each region in which we operate; ● strengthening our position with existing and future customers by offering a broad range of coal qualities, transportation alternatives and customized services; ● developing strategic relationships to take advantage of opportunities within the coal and oil & gas industries and in other industries inside and outside of the Master Limited Partnership sector; ● continuing to make investments in oil & gas mineral interests in various geographic locations within producing basins in the continental United States; 81 Table of Contents ● strengthen and expand our technology company, Matrix Group, as we continue to develop and market industrial, mining and technology products and services worldwide; and ● continuing to identify and make strategic investments in the advancement of energy and related infrastructure opportunities to leverage our core competencies and build platforms for future lines of business with long-term growth and cash flow generation. ​ How We Evaluate Our Performance ​ Our management uses a variety of financial and operational measurements to analyze our performance.
Risk Factors”. ​ Business Strategy ​ Our primary business strategy is to create sustainable, capital-efficient growth in available cash to maximize unitholder returns by: ​ ● expanding our coal operations by adding and developing mines and coal mineral reserves and resources in existing, adjacent or neighboring properties; ● extending the lives of our mining operations through the acquisition and development of coal mineral reserves and resources using our existing infrastructure; ● continuing to make productivity improvements to remain a low-cost coal producer in each region in which we operate; ● strengthening our position with existing and future customers by offering a broad range of coal qualities, transportation alternatives and customized services; ● developing strategic relationships to take advantage of opportunities within the coal and oil & gas industries and in other industries inside and outside of the Master Limited Partnership sector; ● continuing to make investments in oil & gas mineral interests in various geographic locations within producing basins in the continental United States; ● strengthen and expand our technology company, Matrix Group, as we continue to develop and market industrial, mining and technology products and services worldwide; and ● continuing to identify and make strategic investments in the growth and development of energy and related infrastructure opportunities to leverage our core competencies and build platforms for future lines of business with long-term growth and cash flow generation. ​ How We Evaluate Our Performance ​ We have revised the presentation and format of this section and the following discussion of our results of operations to enhance the readability and usefulness of these sections to investors.
The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations. ​ We use a combination of surety bonds and letters of credit to secure our financial obligations for reclamation, workers' compensation and other obligations as follows as of December 31, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers' ​ ​ ​ ​ ​ ​ ​ ​ Reclamation ​ Compensation ​ ​ ​ ​ ​ ​ ​ ​ Obligation ​ Obligation ​ Other ​ Total ​ ​ (in millions) Surety bonds $ 173.5 $ 58.4 $ 15.0 $ 246.9 ​ Letters of credit ​ — ​ 41.0 ​ 16.8 ​ 57.8 ​ ​ Insurance ​ Effective October 1, 2023, we renewed our property and casualty insurance program through September 30, 2024.
The availability and cost of additional capital will depend upon prevailing market conditions, the market price of our common units and several other factors over which we have limited control, as well as our financial condition and results of operations. ​ We use a combination of surety bonds and letters of credit to secure our financial obligations for reclamation, workers’ compensation and other obligations as follows as of December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Workers' ​ ​ ​ ​ ​ ​ ​ ​ Reclamation ​ Compensation ​ ​ ​ ​ ​ ​ ​ ​ Obligation ​ Obligation ​ Other ​ Total ​ ​ (in millions) Surety bonds $ 170.1 $ 65.8 $ 15.7 $ 251.6 ​ Letters of credit ​ — ​ 41.0 ​ 19.8 ​ 60.8 ​ ​ Insurance ​ Effective October 1, 2024, we renewed our property and casualty insurance program through September 30, 2025.
See "Item 8. Financial Statements and Supplementary Data—Note 3 – Acquisitions" for more information on the Belvedere, Jase, JC Resources and Skyland Acquisitions. ​ Net cash used in financing activities was $507.1 million for 2023 compared to $225.4 million for 2022.
Financial Statements and Supplementary Data—Note 4 – Acquisitions” for more information on the Belvedere, Jase, JC Resources and Skyland Acquisitions. ​ Net cash used in financing activities was $285.3 million for 2024 compared to $507.1 million for 2023.
In addition, the insurance industry has been subject to efforts by environmental activists to restrict coverages available for fossil-fuel companies. ​ Debt Obligations ​ See "Item 8.
In addition, the insurance industry has been subject to efforts by environmental activists to restrict coverages available for fossil-fuel companies. ​ 88 Table of Contents Debt Obligations ​ See “Item 8.
Thus, from time to time, our results of operations may be significantly affected by changes to these liabilities. Please see "Item 8. Financial Statements and Supplementary Data—Note 18 – Asset Retirement Obligations" and "—Note 19 – Accrued Workers' Compensation and Pneumoconiosis Benefits." ​ New Accounting Standards ​ See "Item 8.
Thus, from time to time, our results of operations may be significantly affected by changes to these liabilities. Please see “Item 8. Financial Statements and Supplementary Data—Note 15 – Asset Retirement Obligations” and “—Note 13 – Accrued Workers’ Compensation and Pneumoconiosis Benefits.” ​ New Accounting Standards ​ See “Item 8.
Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis benefits obligation. Our actuarial calculations are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and discount rates.
We provide for these claims through self-insurance programs. Our pneumoconiosis benefits liability is calculated using the service cost method based on the actuarial present value of the estimated pneumoconiosis benefits obligation. Our actuarial calculations are based on numerous assumptions including disability incidence, medical costs, mortality, death benefits, dependents and discount rates.
Discounting resulted in reducing the accrual for asset retirement obligations by $116.2 million and $110.4 million at December 31, 2023 and 2022. We estimate that the aggregate undiscounted cost of final mine closure is approximately $266.6 million and $260.2 million at December 31, 2023 and 2022, respectively.
Discounting resulted in reducing the accrual for asset retirement obligations by $120.1 million and $116.2 million at December 31, 2024 and 2023. We estimate that the aggregate undiscounted cost of final mine closure is approximately $278.9 million and $266.6 million at December 31, 2024 and 2023, respectively.
Our receivables for traumatic injury claims under this policy as of December 31, 2023 and 2022 were $4.1 million. ​ Coal mining companies are subject to FMSHA and various state statutes for the payment of medical and disability benefits to eligible recipients related to coal worker's pneumoconiosis, or black lung. We provide for these claims through self-insurance programs.
Our receivables for traumatic injury claims under this policy as of December 31, 2024 and 2023 were $3.7 million and $4.1 million, respectively. ​ Coal mining companies are subject to FMSHA and various state statutes for the payment of medical and disability benefits to eligible recipients related to coal worker’s pneumoconiosis, or black lung.
Financial Statements and Supplementary Data—Note 2 – Summary of Significant Accounting Policies" for a discussion of new accounting standards. ​
Financial Statements and Supplementary Data—Note 2 – Summary of Significant Accounting Policies” for a discussion of new accounting standards. ​ 92 Table of Contents ​
Adjustments to the liability associated with these assumptions resulted in a decrease of $1.5 million for the year ended December 31, 2023.
Adjustments to the liability associated with these assumptions resulted in a increase of $5.6 million for the year ended December 31, 2024.
We anticipate the new mine will enable us to access an additional 109.5 million clean recoverable tons of coal. ​ Cash Flows ​ Cash provided by operating activities was $830.6 million for 2023 compared to $802.3 million for 2022.
We anticipate the new mine will enable us to access an additional 109.5 million clean recoverable tons of coal. ​ Cash Flows ​ Cash provided by operating activities was $803.1 million for 2024 compared to $824.2 million for 2023.
Financial Statements and Supplementary Data—Note 20 – Related-Party Transactions" for a discussion of our related-party transactions. ​ 96 Table of Contents Accruals of Other Liabilities ​ We had accruals for other liabilities, including current obligations, totaling $398.4 million and $395.3 million at December 31, 2023 and 2022, respectively.
Financial Statements and Supplementary Data—Note 21 – Related-Party Transactions” for a discussion of our related-party transactions. ​ 91 Table of Contents Accruals of Other Liabilities ​ We had accruals for other liabilities, including current obligations, totaling $415.1 million and $398.4 million at December 31, 2024 and 2023, respectively.
On a per ton basis, Segment Adjusted EBITDA Expense for our coal operations increased 12.4% to $40.38 per ton sold in 2023 compared to $35.91 per ton in 2022, primarily due to certain cost increases, which are discussed below by category: ​ ● Labor and benefit expenses per ton produced, excluding workers' compensation, increased 14.6% to $12.20 per ton in 2023 from $10.65 per ton in 2022.
Segment Adjusted EBITDA Expense per ton sold for our coal operations increased 11.6% to $45.07 per ton sold in 2024 compared to $40.38 per ton in 2023, primarily due to certain cost increases, which are discussed below by category: ​ ● Labor and benefit expenses per ton produced, excluding workers’ compensation, increased 14.8% to $14.01 per ton in 2024 from $12.20 per ton in 2023.
Financial Statements and Supplementary Data – Note 6 – Long-Term Debt") and other miscellaneous activities.
Financial Statements and Supplementary Data – Note 12 – Long-Term Debt”) and other miscellaneous activities.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt," "—Note 8 – Leases," "—Note 15 – Employee Benefit Plans," "—Note 18 – Asset Retirement Obligations," "—Note 19 – Accrued Workers' Compensation and Pneumoconiosis Benefits" and "—Note 21 – Commitments and Contingencies." We will 93 Table of Contents continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital.
Financial Statements and Supplementary Data—Note 12 – Long-Term Debt,” “—Note 11 – Leases,” “—Note 14 – Employee Benefit Plans,” “—Note 15 – Asset Retirement Obligations,” “—Note 13 – Accrued Workers’ Compensation and Pneumoconiosis Benefits” and “—Note 16 – Commitments and Contingencies.” We will continue to have significant cash requirements over the long term, which may require us to incur debt or seek additional equity capital.
The increase of $1.55 per ton was primarily due to higher incentive benefits and direct labor costs at several mines. ​ ● Material and supplies expenses per ton produced increased 2.6% to $14.02 per ton in 2023 from $13.67 per ton in 2022.
The increase of $1.81 per ton was primarily due to higher direct labor costs at several mines. ​ ● Material and supplies expenses per ton produced increased 13.3% to $15.88 per ton in 2024 from $14.02 per ton in 2023.
See "Item 8. Financial Statements and Supplementary Data—Note 19 – Accrued Workers' Compensation and Pneumoconiosis Benefits" for additional discussion. We had accrued liabilities for workers' compensation of $48.0 million and $49.5 million for these costs at December 31, 2023 and 2022, respectively.
See “Item 8. Financial Statements and Supplementary Data—Note 13 – Accrued Workers’ Compensation and Pneumoconiosis Benefits” for additional discussion. We had accrued liabilities for workers’ compensation of $47.9 million and $48.0 million for these costs at December 31, 2024 and 2023, respectively.
The increase of $93.4 million was primarily attributable to higher coal sales, which increased 11.9% to $1.36 billion in 2023 from $1.22 billion in 2022, partially offset by increased operating expenses.
The decrease of $40.2 million was primarily attributable to increased operating expenses, partially offset by higher coal sales, which increased 2.5% to $1.40 billion in 2024 from $1.36 billion in 2023.
These increases were partially offset by unfavorable working capital changes primarily related to inventories, as well as miscellaneous other changes. ​ Net cash used in investing activities was $559.7 million for 2023 compared to $403.3 million for 2022.
These decreases were partially offset by favorable working capital changes primarily related to trade receivables, inventories, and miscellaneous other changes. ​ Net cash used in investing activities was $440.7 million for 2024 compared to $553.3 million for 2023.
We review coal royalty revenue per ton to evaluate consistency with our coal operations segments and for trend analysis. ​ Segment Adjusted EBITDA Expense per Ton ​ We define Segment Adjusted EBITDA Expense per ton (a non-GAAP financial measure) as the sum of operating expenses, coal purchases and other expense divided by total tons sold.
We define coal royalties per ton as total coal royalties divided by royalty tons sold. ​ Segment Adjusted EBITDA Expense ​ We define Segment Adjusted EBITDA Expense (a non-GAAP financial measure) as the sum of operating expenses, coal purchases and other expenses as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations.
We review price per BOE to evaluate performance against budget and for trend analysis. ​ Coal Royalty Tons sold ​ We monitor and analyze our coal royalty sales volumes from our various mining subsidiaries for coal leased by Alliance Resource Properties for consistency with our coal operations segments and for trend analysis. ​ Coal Royalty Revenue per Ton ​ We define coal royalty revenue per ton as total coal royalties divided by royalty tons sold.
We review oil & gas royalties and price per BOE to evaluate performance against budget and for trend analysis. ​ Intercompany Coal Royalties ​ We monitor and analyze our coal royalties, coal royalty volumes and coal royalties per ton at our various mining subsidiaries for coal leased by Alliance Resource Properties for trend analysis.
We also have an "all other" category referred to as Other, Corporate and Elimination. Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues.
Our two coal operations reportable segments correspond to major coal producing regions in the eastern United States with similar economic characteristics including coal quality, geology, coal marketing opportunities, mining and transportation methods and regulatory issues. Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests.
The increase in cash provided by operating activities was primarily due to increases in net income adjusted for non-cash items and favorable working capital changes primarily related to trade receivables.
The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and 87 Table of Contents unfavorable working capital changes primarily related to accounts payable.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt". ​ Securitization Facility ​ In January 2024, we extended the term of our Securitization Facility to January 2025 and increased the borrowing availability under the facility to $90.0 million. For additional information on the Securitization Facility please read "Item 8.
For additional information on the February 2024 Equipment Financing, please see “Item 1. Financial Statements and Supplementary Data – Note 12 – Long-Term Debt.” ​ Securitization Facility ​ In January 2025, we extended the term of the Securitization Facility to January 2026 and decreased the borrowing availability under the facility to $75.0 million.
We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments. ​ We are currently the largest coal producer in the eastern United States with seven operating underground mining complexes near many of the major eastern utility generating plants and on major coal hauling railroads in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, as well as a coal-loading terminal in Indiana.
We believe that our diverse and rich resource base and strategic investments will allow us to continue to create long-term value for unitholders. ​ We are the second largest coal producer in the eastern United States with seven operating underground mining complexes near many of the major eastern utility generating plants and on major coal hauling railroads in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, as well as a coal-loading terminal in Indiana.
The decrease of $21.7 million was primarily due to lower average sales price per BOE, which decreased 29.4% to $44.37 per BOE, partially offset by increased volumes in 2023, which increased by 29.1%.
The decrease of $4.5 million was primarily due to lower average sales price per BOE, which decreased 8.4% to $40.65 per BOE, partially offset by increased volumes in 2024, which increased by 9.6%, and increased expenses.
We review Segment Adjusted EBITDA Expense per ton for cost trends. ​ EBITDA ​ We define EBITDA (a non-GAAP financial measure) as net income attributable to ARLP before net interest expense, income taxes and depreciation, depletion and amortization.
We also review Segment Adjusted EBITDA Expense on a per ton basis for cost trends at our coal operations by dividing Segment Adjusted EBITDA expense by coal sales volumes. ​ Segment Adjusted EBITDA ​ We define Segment Adjusted EBITDA (a non-GAAP financial measure) as net income attributable to ARLP before net interest expense, income taxes, depreciation, depletion and amortization and general and administrative expenses adjusted for certain items that we characterize as unrepresentative of our ongoing operations.
In addition, we continue to position ourselves as a reliable energy provider for the future as we pursue opportunities that support the advancement of energy and related infrastructure.
In addition, we continue to position ourselves as a reliable energy provider for the future as we pursue opportunities that support the growth and development of energy and related infrastructure. We intend to pursue strategic investments that leverage our core competencies and relationships with electric utilities, industrial customers, and federal and state governments.
For additional information about our energy and infrastructure investments, please see "Business — Growth Investments and Opportunities." ​ Unit Repurchase Program ​ In January 2023, the Board of Directors authorized a $93.5 million increase to the unit repurchase program. As a result, we were authorized to repurchase up to a total of $100.0 million of ARLP's limited partner common units.
Risk Factors.” ​ Unit Repurchase Program ​ In January 2023, the Board of Directors authorized a $93.5 million increase to the unit repurchase program, which had $6.5 million of available capacity as of December 31, 2022. As a result, we were authorized to repurchase up to a total of $100.0 million of ARLP’s limited partner common units.
Business and Item 2. Properties" in our Annual Report on Form 10-K for the year ended December 31, 2023 for a more detailed discussion of our various businesses. ​ As of December 31, 2023, we had four reportable segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties.
Business and Item 2. Properties” for a more detailed discussion of our various businesses. ​ As of December 31, 2024, we had four reportable segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. We also have an “all other” category referred to as Other, Corporate and Elimination.
We review coal sales price per ton to evaluate marketing efforts and for market demand and trend analysis. ​ Oil & gas BOE sold ​ We monitor and analyze our BOE sales volumes from the various basins that comprise our portfolio of mineral interests.
We regularly compare budgeted coal sales and coal sales per ton to actual coal sales and coal sales per ton and investigate unexpected variances. ​ Oil & Gas Volumes ​ We monitor and analyze our oil & gas royalty volumes from the various basins that comprise our portfolio of mineral interests.
Coal sales prices increased by 13.2% compared to 2022 primarily due to increased domestic price realizations in the region. Segment Adjusted EBITDA Expense increased 11.3% to $516.5 million in 2023 from $464.0 million in 2022 due to higher per ton operating expenses, partially offset by lower volumes.
Segment Adjusted EBITDA Expense increased 6.8% to $551.7 million in 2024 from $516.5 million in 2023 due to higher operating expenses per ton, partially offset by lower sales volumes.
The increase in cash used in investing activities was primarily attributable to increases in capital expenditures, acquisitions of oil & gas reserves including the JC Resources and Skyland Acquisitions, and changes in accounts payable and accrued liabilities. These increases were partially offset by payments for the Belvedere and Jase Acquisitions, and contributions to equity method investments in 2022.
The decrease in cash used in investing activities was primarily due to acquisitions of oil & gas reserves including the JC Resources Acquisition and purchase of investments in 2023 as well as an increase in accounts payable and accrued liabilities for property, plant and equipment. These decreases were partially offset by increased capital expenditures during 2024. See “Item 8.
Segment Adjusted EBITDA Expense increased 6.8% to $861.3 million in 2023 from $806.1 million in 2022 primarily as a result of increased sales volumes and higher operating expenses per ton.
The increase in coal sales primarily reflects higher coal sales price realizations of $56.44 per ton sold in 2024 compared to $55.21 per ton sold in 2023 due to improved domestic pricing. Segment Adjusted EBITDA Expense increased 8.8% to $937.1 million in 2024 from $861.3 million in 2023 as a result of higher operating expenses per ton.
If our assumptions differ from actual experiences, or if changes in the regulatory environment occur, our actual cash expenditures and costs that we incur could be materially different than currently estimated. ​ Shelf Registration Statement ​ In February 2022, we filed with the SEC a universal shelf registration statement which allows us to issue from time to time an indeterminate amount of debt or equity securities.
If our assumptions differ from actual experiences, or if changes in the regulatory environment occur, our actual cash expenditures and costs that we incur could be materially different than currently estimated. ​ Related – Party Transactions ​ See “Item 8.
Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues.
Segment Adjusted EBITDA Expense is a key component of Segment Adjusted EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses.
The increase in cash used in financing activities was primarily attributable to increased cash distributions paid to unitholders, increased net payments on long-term debt, purchases of units under our unit repurchase program, debt issuance costs, and payments for purchase of units and tax withholdings related to settlements under deferred compensation plans. ​ Cash Requirements ​ We currently estimate our 2024 annual cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers' compensation and pneumoconiosis, to be in a range of $728.0 million to $778.0 million.
These decreases were partially offset by the redemption of our remaining 7.5% Senior Notes due 2025 and cash settlement of grants under our deferred compensation plans. ​ Cash Requirements ​ We currently estimate our 2025 annual cash requirements, including capital expenditures, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs and workers’ compensation and pneumoconiosis, to be in a range of $519.0 million to $554.0 million.
The decrease of $95.5 million was primarily attributable to increased operating expenses and lower coal sales volumes.
The decrease of $166.6 million was primarily attributable to lower coal sales, which decreased 15.7% to $712.7 million in 2024 from $845.3 million in 2023, and higher operating expenses. The decrease in coal sales reflects lower sales volumes and prices.
For more information on acquisitions, please read "Item 8.
For additional information on the Securitization Facility please read “Item 8.
Primary measurements include the following: (1) coal sales price per ton; (2) BOE sold; (3) price per BOE; (4) coal royalty tons sold; (5) coal royalty revenue per ton; (6) Segment Adjusted EBITDA Expense per ton; (7) EBITDA; and (8) Segment Adjusted EBITDA. ​ Coal Sales Price per Ton ​ We define coal sales price per ton as total coal sales divided by tons sold.
Primary measurements include the following: (1) coal volumes; (2) coal sales; (3) oil & gas volumes; (4) oil & gas royalties; (5) intercompany coal royalties; (6) Segment Adjusted EBITDA Expense; and (7) Segment Adjusted EBITDA. 81 Table of Contents ​ Coal Volumes ​ We monitor and analyze our coal sales and production volumes of our mining complexes.
Financial Statements and Supplementary Data – Note 12 – Equity Investments" for additional information on Francis, Infinitum, NGP ET IV and Ascend. ​ Risks and Uncertainties ​ We face a variety of risks and uncertainties that management considers in the operation and planning of our businesses, which could affect our financial position and results of operations.
The eliminations included in Other, Corporate and Elimination primarily represent the intercompany coal royalty transactions described above between our Coal Royalties reportable segment and our coal operations’ mines. ​ Risks and Uncertainties ​ We face a variety of risks and uncertainties that management considers in the operation and planning of our businesses, which could affect our financial position and results of operations.
Other revenues increased to $76.5 million in 2023 from $52.8 million in 2022.
Vernon transloading revenues, oil & gas lease bonus revenues, and crypto-mining revenues. Other revenues increased to $86.0 million in 2024 from $76.5 million in 2023.
The increase of $28.4 million was primarily attributable to increased average third-party transportation rates in 2023 and increased coal shipments for which we arrange third-party transportation.
The decrease of $29.7 million was primarily attributable to decreased coal shipments for which we arrange third-party transportation and reduced average third-party transportation rates in 2024. Transportation revenues are recognized when title to the coal passes to the customer and recognized in an amount equal to the corresponding transportation expenses. ​ ● Other revenues principally comprised Matrix Design sales, Mt.
Segment Adjusted EBITDA Expense per ton increased 31.5% to $53.15 compared to $40.42 per ton sold in 2022, as a result of lower volumes previously discussed, purchased coal and inflationary pressures on certain expense items, most notably labor-related expenses and materials and maintenance costs, and increased sales-related expenses due to higher price realizations. ​ Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $121.5 million for 2023 from $143.2 million in 2022.
Segment Adjusted EBITDA Expense per ton for 2024 increased by 21.7% compared to 2023 due to reduced production as a result of challenging mining conditions that lowered recoveries and increased costs related to labor, roof control, outside expenses, and maintenance during 2024. ​ 85 Table of Contents Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $117.0 million for 2024 from $121.5 million in 2023.
The increase of $0.35 per ton produced primarily reflects increases of $0.13 per ton for safety related materials and supplies, $0.11 per ton for various preparation plant expenses and $0.09 per ton for ventilation related expenses , partially offset by a decrease of $0.12 per ton for environmental and reclamation expenses other than longwall subsidence. ​ ● Maintenance expenses per ton produced increased 27.6% to $4.62 per ton in 2023 from $3.62 per ton in 2022.
The increase of $1.86 per ton produced primarily reflects increases of $0.64 per ton for environmental and longwall subsidence expense, $0.46 per ton for outside expenses, $0.35 per ton for roof support, and $0.29 per ton for power and fuel. ​ ● Maintenance expenses per ton produced increased 17.1% to $5.41 per ton in 2024 from $4.62 per ton in 2023.
Coal sales volumes decreased 15.3% compared to 2022 as a result of lower production across the region due to lock outages, customer plant maintenance, reduced operating units at MC Mining, challenging geologic conditions that delayed development of a new district at our Mettiki longwall operation and increased longwall move days at our Tunnel Ridge mine.
Coal sales volumes decreased by 12.2% compared to 2023 primarily due to reduced production at our Tunnel Ridge operation as a result of lower demand and challenging mining conditions. Average coal sales prices decreased by 4.0% compared to 2023 as a result of lower export price realizations from our Mettiki and MC Mining operations.
Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities" for more information on the unit repurchase program. ​ Revolving Credit Facility ​ On January 13, 2023, Alliance Coal entered into the Credit Agreement with various financial institutions.
Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities” for more information on the unit repurchase program. ​ February 2024 Equipment Financing ​ On February 28, 2024, Alliance Coal entered into an equipment financing arrangement, wherein Alliance Coal received $54.6 million in exchange for conveying its interest in certain equipment owned indirectly by Alliance Coal and entering into a master lease agreement for that equipment.
We review all actuarial assumptions periodically for reasonableness and consistency and update such factors when underlying assumptions, such as discount rates, change or when sustained changes in our historical experiences indicate a shift in our trend assumptions are warranted. ​ Asset Retirement Obligations ​ SMCRA and similar state statutes require that mined property be restored in accordance with specified standards and an approved reclamation plan.
We review all actuarial assumptions periodically for reasonableness and consistency and update such factors when underlying assumptions, such as discount rates, change or when sustained changes in our historical experiences indicate a shift in our trend assumptions are warranted. ​ Impairment of Long-Lived Assets ​ In addition to oil & gas reserves discussed above in the Oil & Gas Reserve Values section, we review the carrying value of long-lived assets and certain identifiable intangibles whenever events or changes in circumstances indicate that the carrying amount may not be recoverable based on estimated undiscounted future cash flows.
During the year ended December 31, 2023, we repurchased and retired 929,842 units at an average price of $20.90 for an aggregate purchase price of $19.4 million, leaving $80.6 million authorized. Please read "Item 5.
No units were repurchased during the year ended December 31, 2024. The remaining authorized amount for unit repurchases under this program was $80.6 million at December 31, 2024. Please read “Item 5.
(3) For definitions of Segment Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to their respective comparable GAAP financial measures, please see below under "— Reconciliation of Non-GAAP Financial Measures." (4) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel). 85 Table of Contents (5) Represents tons sold by our coal operations segments associated with coal reserves leased from our Coal Royalties Segment. ​ Illinois Basin Coal Operations – Segment Adjusted EBITDA increased 22.2% to $514.1 million in 2023 from $420.7 million in 2022.
(2) Represents tons sold by our coal operations segments associated with coal reserves leased from our Coal Royalties Segment. ​ Illinois Basin Coal Operations – Segment Adjusted EBITDA decreased 7.8% to $473.9 million in 2024 from $514.1 million in 2023.
Coal sales volumes increased 14.7% compared to 2021 as a result of higher sales volumes from our Tunnel Ridge and MC Mining operations. Segment Adjusted EBITDA Expense increased 34.8% to $464.0 million in 2022 from $344.3 million in 2021 due to increased sales volumes and per ton expenses.
The increase of $9.5 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary. ​ 83 Table of Contents Segment Adjusted EBITDA Expense ​ Segment Adjusted EBITDA Expense increased 8.9% to $1.53 billion primarily related to our coal operations which increased 8.0% to $1.50 billion, as a result of higher per ton costs, partially offset by lower coal sales volumes.
The increase reflects the benefit of higher average coal sales prices, which contributed $175.7 million in additional coal sales, partially offset by lower tons sold, which reduced coal sales by $67.7 million.
The decrease was attributable to lower tons sold, which reduced coal sales by $72.1 million, and lower average coal sales prices, which reduced coal sales by $26.3 million.
Removed
Our Oil & Gas Royalties reportable segment includes our oil & gas mineral interests.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA one percentage point increase in interest rates would result in a decrease of approximately $3.7 million in the estimated fair value of these borrowings. ​ The table below provides information about our market sensitive financial instruments and constitutes a "forward-looking statement." The fair values of long-term debt are estimated using discounted cash flow analyses, based on our incremental borrowing rates for similar types of borrowing arrangements as of December 31, 2023 and 2022. ​ The carrying amounts and fair values of financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, as of December 31, 2023 ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ 2028 ​ ​ Total ​ ​ 2023 ​ (dollars in thousands) ​ Fixed rate debt ​ $ 2,039 ​ ​ $ 284,607 ​ ​ $ — ​ ​ $ — ​ ​ $ — ​ ​ $ 286,646 ​ ​ $ 286,179 ​ Weighted-average interest rate ​ ​ 7.50 % ​ 7.50 % ​ — % ​ — % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variable rate debt ​ $ 18,750 ​ ​ $ 18,750 ​ ​ $ 18,750 ​ ​ $ 4,688 ​ ​ $ — ​ ​ $ 60,938 ​ ​ $ 60,938 ​ Weighted-average interest rate (1) ​ ​ 8.50 % ​ ​ 8.50 % ​ 8.50 % ​ 8.50 % ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ as of December 31, 2022 ​ 2023 ​ ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ Total ​ ​ 2022 ​ ​ ​ (dollars in thousands) ​ Fixed rate debt ​ $ 24,970 ​ ​ $ 2,039 ​ ​ $ 400,000 ​ ​ $ — ​ ​ $ — ​ ​ $ 427,009 ​ ​ $ 424,420 ​ Weighted-average interest rate ​ ​ 7.40 % ​ 7.50 % ​ 7.50 % ​ — % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Interest rate of variable rate debt equal to the rate effective at December 31, 2023, held constant for the remaining term of the outstanding borrowing. ​ ​ ​ 98 Table of Contents
Biggest changeA one 93 Table of Contents percentage point increase in interest rates would result in a decrease of approximately $16.9 million in the estimated fair value of these borrowings. ​ The table below provides information about our market sensitive financial instruments and constitutes a “forward-looking statement.” The fair values of long-term debt are estimated using discounted cash flow analyses, based on our incremental borrowing rates for similar types of borrowing arrangements as of December 31, 2024 and 2023. ​ The carrying amounts and fair values of financial instruments are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, as of December 31, 2024 ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ 2028 ​ ​ 2029 ​ ​ Total ​ ​ 2024 ​ (dollars in thousands) ​ Fixed rate debt ​ $ 12,607 ​ ​ $ 14,240 ​ ​ $ 15,182 ​ ​ $ 2,655 ​ ​ $ 400,000 ​ ​ $ 444,684 ​ ​ $ 477,757 ​ Weighted-average interest rate ​ ​ 8.60 % ​ 8.61 % ​ 8.62 % ​ 8.62 % ​ 8.63 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variable rate debt ​ $ 14,062 ​ ​ $ 14,063 ​ ​ $ 14,063 ​ ​ $ 3,515 ​ ​ $ — ​ ​ $ 45,703 ​ ​ $ 45,703 ​ Weighted-average interest rate (1) ​ ​ 7.71 % ​ 7.71 % ​ 7.71 % ​ 7.71 % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value ​ Expected Maturity Dates ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ as of December 31, 2023 ​ 2024 ​ ​ 2025 ​ ​ 2026 ​ ​ 2027 ​ ​ 2028 ​ ​ Total ​ ​ 2023 ​ ​ ​ (dollars in thousands) ​ Fixed rate debt ​ $ 2,039 ​ ​ $ 284,607 ​ ​ $ — ​ ​ $ — ​ ​ $ — ​ ​ $ 286,646 ​ ​ $ 286,179 ​ Weighted-average interest rate ​ ​ 7.50 % ​ 7.50 % ​ — % ​ — % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Variable rate debt ​ $ 18,750 ​ ​ $ 18,750 ​ ​ $ 18,750 ​ ​ $ 4,688 ​ ​ $ — ​ ​ $ 60,938 ​ ​ $ 60,938 ​ Weighted-average interest rate (1) ​ ​ 8.50 % ​ ​ 8.50 % ​ 8.50 % ​ 8.50 % ​ — % ​ ​ ​ ​ ​ ​ ​ ​ (1) Interest rate of variable rate debt equal to the rate effective at December 31, 2024 and 2023, held constant for the remaining term of the outstanding borrowing. ​ ​ ​ 94 Table of Contents
These steps may include obtaining letters of credit or cash collateral, requiring prepayments for shipments or establishing customer trust accounts held for our benefit in the event of a failure to pay. Such credit risks from customers may impact the borrowing capacity of our Securitization Facility. See "Item 8.
These steps may include obtaining letters of credit or cash collateral, requiring prepayments for shipments or establishing customer trust accounts held for our benefit in the event of a failure to pay. Such credit risks from customers may impact the borrowing capacity of our Securitization Facility. See “Item 8.
Many of the long-term sales contracts are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both. For additional discussion of coal supply agreements, please see "Item 1. Business—Coal Marketing and Sales" and "Item 8.
Many of the long-term sales contracts are subject to price adjustment provisions, which periodically permit an increase or decrease in the contract price, typically to reflect changes in specified indices or changes in production costs resulting from regulatory changes, or both. For additional discussion of coal supply agreements, please see “Item 1. Business—Coal Marketing and Sales” and “Item 8.
Financial Statements and Supplementary Data—Note 6 – Long-Term Debt" for more information on our Securitization Facility. ​ Exchange Rate Risk ​ The vast majority of our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks.
Financial Statements and Supplementary Data—Note 12 – Long-Term Debt” for more information on our Securitization Facility. ​ Exchange Rate Risk ​ The vast majority of our transactions are denominated in United States dollars, and as a result, we do not have material exposure to currency exchange-rate risks.
We did not have any outstanding borrowings on either the Revolving Credit Facility or the Securitization Facility at December 31, 2023. A one percentage point increase in the interest rates related to the Term Loan would result in an annualized increase in interest expense of $0.6 million, based on borrowing levels at December 31, 2023.
We did not have any outstanding borrowings on either the Revolving Credit Facility or the Securitization Facility at December 31, 2024. A one percentage point increase in the interest rates related to the Term Loan would result in an annualized increase in interest expense of $0.5 million, based on borrowing levels at December 31, 2024.
However, because coal is sold internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign 97 Table of Contents competitors with a competitive advantage.
However, because coal is sold internationally in United States dollars, general economic conditions in foreign markets and changes in foreign currency exchange rates may provide our foreign competitors with a competitive advantage.
Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks but may do so in the future. ​ Credit Risk ​ In 2023, approximately 80.9% of our tons sold were purchased by U.S. electric utilities and 15.7% were sold into the international markets through brokered transactions.
Historically, we have not utilized any commodity price-hedges or other derivatives related to either our sales price or supply cost risks but may do so in the future. ​ Credit Risk ​ In 2024, approximately 80.3% of our tons sold were purchased by U.S. electric utilities and 17.3% were sold into the international markets through brokered transactions.
Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt. We had $60.9 million in borrowings under Term Loan at December 31, 2023.
Historically, our earnings have not been materially affected by changes in interest rates and we have not utilized interest rate derivative instruments related to our outstanding debt. We had $45.7 million in borrowings under Term Loan at December 31, 2024.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ Commodity Price Risk ​ We have significant long-term sales contracts as evidenced by approximately 93.4% of our sales tonnage being sold under long-term sales contracts in 2023.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ Commodity Price Risk ​ We have significant long-term sales contracts as evidenced by approximately 83.6% of our sales tonnage being sold under long-term sales contracts in 2024.
With respect to our fixed-rate borrowings, we had $284.6 million in borrowings under our Senior Notes and $2.0 million in borrowings under our equipment financings at December 31, 2023.
With respect to our fixed-rate borrowings, we had $400.0 million in borrowings under our 2029 Senior Notes and $44.7 million in borrowings under our equipment financings at December 31, 2024.
Regarding coal, the short-term sales contracts favored by some of our coal customers leave us more exposed to risks of declining coal price periods.
Financial Statements and Supplementary Data—Note 20 – Concentration of Credit Risk and Major Customers.” ​ Our results of operations are highly dependent upon the prices we receive for our coal, oil and natural gas. Regarding coal, the short-term sales contracts favored by some of our coal customers leave us more exposed to risks of declining coal price periods.
Removed
Financial Statements and Supplementary Data—Note 22 – Concentration of Credit Risk and Major Customers." Our initial 2024 guidance includes 32.5 million priced and committed tons for delivery in 2024. ​ Our results of operations are highly dependent upon the prices we receive for our coal, oil and natural gas.

Other ARLP 10-K year-over-year comparisons