Alliance Resource Partners L P : Investor Presentation October 2023

Reliable Energy

For Today

And Tomorrow

Alliance Resource Partners, L.P.

Investor Presentation

October 2023

Legal Disclaimer

This presentation contains forward-looking statements and information that are based on the beliefs of Alliance Resource Partners, L.P. ("Alliance", "ARLP", or the "Partnership"), as well as assumptions made by and information currently available to them. When used in this presentation, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may," "continue," "estimate," "foresee," "future," "outlook," "potential," "should," "target," "will," "would," and similar expressions and statements regarding the plans and objectives of the Partnership for future operations, are intended to identify forward-looking statements. Actual results may differ materially from results contemplated by our forward-looking statements.

Any forward-looking statement in this presentation reflects the Partnership's current views with respect to future events and is subject to these views and other risks, uncertainties and assumptions relating to our operations, operating results, growth strategy and liquidity. We urge you to carefully review the disclosures we make concerning risks and other factors that may affect our business and operating results, including those made under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as such risk factors may be amended, supplemented or superseded from time to time by other reports the Partnership files with the Securities and Exchange Commission. We caution you that any forward-looking statements in this presentation and the documents incorporated herein by reference are not guarantees of future performance and you should not place undue reliance on such statements or documents, which speak only as of the date on which they are made.

The Partnership does not intend, and undertakes no obligation, to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law to do so.

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Electrification Expected To Increase U.S. Demand To Over 5.5 Trillion KWh By 2050

U.S. Total Electricity Generation (Trillion KWh)1

6.0

+1.3 Trillion KWh

	Total Generation Growth
	(2023-2050)
5.0	+0.5 Trillion KWh
	Total Generation Growth
	(2000-2022)
4.0
3.0
2.0

Historical <<< >>> Projected

There is a critical need for a diverse mix of reliable and affordable energy sources for decades to come

1. EIA Annual Energy Outlook 2023, Electric Power Projections by electricity market module regions.

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Alliance Resource Partners, L.P. (NASDAQ: ARLP)

Partnership Overview

• Master Limited Partnership established in 1999
• Successful track-record as provider of reliable, affordable energy for baseload electric power generation
• Largest coal producer in the eastern U.S., serving domestic and international utility and industrial markets
• Scaled oil & gas minerals royalty platform with approximately $700 million invested to-date
• Strong balance sheet and robust free cash flow generation to support strategic, high-return reinvestment in new platforms

Business Overview

Coal Mining

Royalties

New Ventures

Seven underground	Mineral and royalty	Strategic investments
mining complexes	interests in strategic	that support
expected to sell	oil & gas basins and	advancement of
34.5 to 35.0 million	coal mineral	energy and related
tons during 2023	resources	infrastructure

1. Market data as of October 24, 2023. Total / Net Debt balances as of September 30, 2023.

Key Market & Financial Data1

•	Market Capitalization:	$2.9 billion
•	Enterprise Value:	$3.1 billion
•	Total LTM Adjusted EBITDA:	$1.0 billion
• Current Cash Distribution (Annualized):	$2.80 per unit
•	Total / Net Debt:	$0.4 / $0.2 billion
• Total / Net Leverage Ratio:	0.36x / 0.17x

Historical Cash Distributions

~$4.0 Billion Cumulative Cash Distributions Paid Since Partnership Inception in 1999

1999

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ARLP: Key Investment Highlights

1

Diversified Energy Company

•	Leading provider of reliable, affordable, baseload energy for domestic and international markets
•	Expanding and diversifying asset base to grow in parallel with evolving U.S. energy needs

2

For the 21st Century

Leading U.S. Provider For

Baseload Electric Power

Generation

• Strong balance sheet and robust cash flow provide exceptional capital allocation optionality
• Leading eastern U.S. coal producer with low-cost, Tier 1 assets
•	Long-standing customer relationships, serving domestic utility customers for over 50 years
•	Strategically located in the most attractive coal basins for domestic and export markets

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Scaling Royalty

Growth Platform

4

Well-Positioned To Be

Energy Partner For Tomorrow

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Disciplined Financial

Principles

• Successful track record investing ~$700 million in oil & gas mineral interests to-date; strong

cash-on-cash returns with Segment Adjusted EBITDA1 of ~$131 million in FY22

• High-quality royalty acreage positions in Permian, Anadarko, Williston and Appalachia Basins

• Coal royalties platform delivered Segment Adjusted EBITDA of ~$39 million in FY22

• Leveraging ARLP's core competencies and strategic relationships with electric utilities, other

customers, and regulators, to remain a reliable energy partner for the future

• Process-oriented approach to allocating capital and maximizing risk-adjusted returns for

unitholders over long-term

• Operational efficiency provides enhanced profitability, financial flexibility, and liquidity

• Robust free cash flow generation expected to support further deleveraging and strategic high-

return investment opportunities

1. For definitions of Segment Adjusted EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this presentation.

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1 Diversified Energy Company For The 21st Century

Coal Mining

Largest coal producer in

eastern U.S., operating seven

underground mining

complexes expected to sell

34.5 to 35.0 million tons during 2023 serving major domestic and international electric power generation

markets

Royalties

New Ventures

Mineral and royalty	Strategic investments that
interests in strategic oil &	support advancement of
gas basins and coal	energy and related
mineral resources	infrastructure

Next Generation (2022-2023+)

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New Growth Opportunities

2

Successfully Scaling Oil & Gas Royalty Platform (2014-2023+)

Opportunistically Invested Incremental Cash Flow To Diversify & Scale Business

Built Largest Coal Operation in the Eastern U.S. (1996-2023+)

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Robust Cash Flow Generation Through Multiple Commodity Cycles

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2 Leading U.S. Coal Producer With Strategically Located, Low-Cost, Tier 1 Assets

Coal Operations Asset Overview

• Largest coal producer in the

	eastern U.S. with operations in the			IA					Illinois Basin
	Illinois Basin and Appalachia
								FY22 Tons Sold 24.1MM (68% Total)
•	Seven underground mining								Asset Locations
							A.	Gibson South
	complexes in IL, IN, KY, MD, PA,				C				B.	River View
	and WV, as well as a coal-loading				A			C.	Hamilton
					E			D.	Warrior
	terminal in IN on the Ohio River
							E. Mt. Vernon Transfer Terminal
					B	D	KY
• Produce diverse range of thermal
	and metallurgical coals with high								Appalachia
	heat content (11,400 to 13,200
	Btu/lb) with unique access to both							PA	FY22 Tons Sold 11.5MM (32% Total)
				OH			Asset Locations:
	domestic and export markets				F
							F.	Tunnel Ridge
• Customers include major domestic							MD	G.	Mettiki
				G
			H			H. MC Mining
	and international utilities and	Legend
	industrial users	Appalachia	Operating Mine
	Illinois Basin	Transfer Terminal
				Third-Party Export Terminal
	Coal Operations Highlights
	$2.2	Total	$840	Segment	35.6	Tons				1.7	Tons Reserve +
	Billion	Revenue	Million	Adj. EBITDA	Million	Sold				Billion	Resource Base
	FY22	FY22	FY22				12/31/22

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2 Well-Covered,Multi-Year Contracted Coal Book Backed By Blue-Chip Utility Customer Base

• Well-established,credit-worthy customer base of primarily electric power utility companies in central and eastern U.S.
• Multi-yearcontracts reduce pricing volatility and provide strong visibility into sales volumes and cash flows
• • FY23: 35.0 million committed and priced sales tons, of which ~85% weighted towards domestic markets
  • FY24: 27.3 million committed and priced sales tons (~79% of FY23 guidance mid-point), ARLP well-positioned to maximize value in both domestic and international markets
• ARLP cash flow benefitting from favorable market environment and pricing dynamics
• • FY22 coal price realizations of $59.07 per ton increased $16.09 per ton, up 37% versus FY21
  • FY23 coal price guidance ranging from $64.50 to $66.00 per ton, up 9-12% versus FY22

Contracted Sales Volumes (MM Tons)1

FY23 Estimated Tons By Type1

35.5		34.5 - 35.0	FY23 Guidance Range
4.4	5.3
	100%		1.6

Domestic

Committed

79%

35.0

85%

31.1			29.7	25.7	Export
		Committed
FY22		FY23	FY24	15%
		Domestic		Export	Uncommitted

1. FY23 and FY24 percentages based on total committed sales volume divided by total estimated volume at midpoint of FY23 guidance (34.75 million tons).

Million Tons

Committed & Priced

FY23 Guidance

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3 Scaling Oil & Gas Royalty Platform In Top-Tier Basins With Top-Tier Operators

• ARLP has established a successful track record by investing ~$700 million in oil & gas minerals since 2014, generating Segment Adjusted EBITDA1 of ~$131 million in FY22 and ~$414 million cumulative through 3Q23
• Royalties provide highest cash flow-margin enterprise in the oil & gas value chain with hedge-free exposure to commodity price and cost-free organic growth potential
• ARLP mineral interests are concentrated under top-tier operators in the core parts of the prolific Permian Basin, with additional exposure to Anadarko, Williston and Appalachia Basins
• Platform positioned for sustainable growth on a stand- alone basis with plans to re-invest organic free cash flows via scaled asset packages and ground game acquisitions

Oil & Gas Royalty Highlights

Oil & Gas Royalty Asset Overview

	ARLP Net Royalty Acres	Permian / Anadarko
Anadarko			SCOOP / STACK
Permian
35%
	53%	Delaware
		Midland

~65,000

Other

5%

Williston

7%

Williston	Appalachia
	Utica
Williston
	Marcellus

$131	Segment	93%	Segment Adj.	2,319	MBOE2	20,596	MBOE2 Total	Oil Share
Adj. EBITDA	EBITDA Margin	Production	Proved Reserve	75% of FY22
Million FY22		FY22		FY22		12/31/22	BOE Revenue

1. Oil & Gas Segment Adjusted EBITDA of $131 million does not include Coal Royalties Segment Adjusted EBTIDA, which contributed approximately $39 million during FY22.
2. One thousand barrels of oil equivalent determined using a ratio of six Mcf of natural gas to one Bbl of crude oil, condensate, or natural gas liquids.

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3 Targeting Sustainable Growth With Size Approaching Attractively-Valued Public Royalty Peers

Strategies For Sustainable Oil & Gas Royalty Growth		Successful Track Record Scaling Oil & Gas Royalty Platform

Resilient Minerals

Position

ARLP's oil & gas royalty portfolio is concentrated in the Permian, the most

Focused Acquisition

Strategy

Selective acquisition

strategy and strict

underwriting standards

Visibility to Organic

Growth

Royalty interests

concentrated in core

acreage positions of well-

Cumulative Capital Invested ($MM)

$498 $498 $529

$20 $66 $149 $163 $179

$619 $705

active U.S. basin, with

additional exposure to all other major U.S. basins and commodity streams

target outsized risk- adjusted returns via scaled asset packages and highly-fragmented ground game mineral interest acquisitions

capitalized operators with multi-decades of new well inventory, providing organic growth potential at no additional capital cost

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Cumulative Segment Adj. EBITDA ($MM)			$325	$415
$-	$-	$3	$17	$38	$85	$125	$194
2014	2015	2016	2017	2018	2019	2020	2021	2022		3Q23
									To-Date

Peer-Leading Oil & Gas Royalty Adj. EBITDA Margins (FY22)1

	93%	91%	89%	82%
				77%

ARLP	Minerals Peer 1	Minerals Peer 2	Minerals Peer 3	Minerals Peer 4
O&G Royalty

Royalty Peers Trade At Premium Valuations1
		O&G Royalty Peer Group			Coal Royalty Peer Group
		EV / EBITDA Multiples			EV / EBITDA Multiples
$121
Million	8.8x	8.4x	Peer Group Avg: 8.4x
			8.3x	8.0x	$41

Million	4.5x

/ /

/ /

ARLP YTD

Minerals

Minerals

Minerals

Minerals

ARLP YTD

Coal Royalty

Annualized O&G Royalty

Peer 1

Peer 2

Peer 3

Peer 4

Annualized Coal Royalty

Peer 1

Seg. Adj. EBITDA

Seg. Adj. EBITDA

1. Source: CapIQ, corporate filings. Reflects ARLP Segment Adjusted EBITDA margin. Market data as of October 24, 2023. O&G Minerals peer group includes BSM, VNOM, KRP, STR in no particular order. Coal Royalty peer includes NRP.
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