ARLP

MKT CAP $3.3BP/E —DIV YIELD —FCF YIELD 10.79%REV TTM $2.2B −5.1%NET INCOME $266.4M +12.9%NET DEBT $438.8M52W 23.05 – 28.99SEC XBRL · TTM TO Invalid Date

How ARLP rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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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; ● 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 Our management uses a variety of financial and operational measurements to analyze our performance.
In addition, the exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. Analysis of Historical Results of Operations – 2025 Compared with 2024 Consolidated Information Year Ended December 31, 2025 2024 Increase (Decrease) (in thousands) Consolidated Total Tons sold 32,967 33,319 (352) (1.1) % Tons produced 33,167 32,206 3.0 % Volume - BOE (1) 3,648 3,402 7.2 % Coal sales $ 1,932,515 $ 2,111,803 $ (179,288) (8.5) % Oil & gas royalties $ 137,849 $ 138,311 $ (462) (0.3) % Total revenues $ 2,194,811 $ 2,448,708 $ (253,897) (10.4) % Segment Adjusted EBITDA Expense (2) $ 1,391,230 $ 1,530,001 $ (138,771) (9.1) % Net income of ARLP $ 311,163 $ 360,855 $ (49,692) (13.8) % Segment Adjusted EBITDA (2) $ 781,858 $ 796,454 $ (14,596) (1.8) % (1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).
(2) 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.” Total Revenues Total revenues decreased 10.4% to $2.19 billion in 2025 compared to $2.45 billion 2024 primarily due to lower coal sales pricing and transportation revenues. ● Coal sales decreased to $1.93 billion in 2025 compared to $2.11 billion in 2024.
The decrease was attributable to lower average coal sales prices, which reduced coal sales by $157.0 million and lower tons sold, which reduced coal sales by $22.3 million.
Coal sales prices decreased by 7.5% as a result of lower domestic price realizations at several mines due to the continued roll-off of higher-priced contracts entered into during the energy crisis and reduced export price realizations from our MC Mining and Mettiki mines. ● Transportation revenues and expenses were $36.6 million and $112.6 million in 2025 and 2024, respectively.
The decrease of $76.0 million was primarily attributable to lower third-party transportation rates in 2025 and decreased coal shipments to the international markets for which we arrange third-party transportation.
Transportation 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 Expense Segment Adjusted EBITDA Expense decreased 9.1% to $1.39 billion in 2025 primarily related to our coal operations which decreased 9.3% to $1.36 billion, as a result of lower per ton costs and sales volumes.
Segment Adjusted EBITDA Expense per ton sold for our coal operations decreased 8.4% to $41.29 per ton sold in 2025 compared to $45.07 per ton in 2024, primarily due to an increased sales mix of tons from lower cost operations, higher recoveries from several mines and fewer longwall move days at our Hamilton operation as well as the following per ton cost decreases: ● Labor and benefit expenses, excluding workers’ compensation, per ton produced decreased 6.8% to $13.06 per ton in 2025 from $14.01 per ton in 2024.
The decrease of $0.95 per ton was primarily due to lower direct labor costs at several mines. ● Material and supplies expenses per ton produced decreased 12.2% to $13.95 per ton in 2025 from $15.88 per ton in 2024.
The decrease of $1.93 per ton produced primarily reflects decreases of $0.67 per ton for roof support, $0.33 per ton in longwall subsidence expense, and $0.28 per ton for contract labor used in the mining process. ● Maintenance expenses per ton produced decreased 13.1% to $4.70 per ton in 2025 from $5.41 per ton in 2024.
The decrease of $0.71 per ton produced was primarily a result of lower maintenance costs at several mines. ● Outside coal purchases decreased to $21.8 million in 2025 compared to $35.8 million in 2024.
The decrease in outside coal purchases benefited costs per ton in 2025 since the cost of outside coal purchases is generally higher on a per ton basis than our produced coal. Depreciation, depletion and amortization Depreciation, depletion and amortization expense increased to $299.4 million in 2025 compared to $285.4 million in 2024 primarily as a result of recent capital investments at our River View and Tunnel Ridge mines. Asset impairments During 2024, we recorded $31.1 million of non-cash asset impairment charges as a result of our decision to reduce production at our MC Mining operation due to market uncertainty, challenging geology and higher costs.
Financial Statements and Supplementary Data—Note 9 – Long-Lived Asset Impairments” for more information. Equity method investment income (loss) We had equity method investment income of $21.0 million in 2025 compared to an equity method investment loss of $5.0 million in 2024.
The change was primarily due to income attributable to our investments in Gavin Generation and NGP ET IV. Change in fair value of digital assets We recorded a $4.4 million decrease in the fair value of our digital assets in 2025 compared to an increase of $22.4 million during 2024 reflecting the movement in the price of bitcoin during each period. Impairment loss on investments During 2025, we recorded impairments totaling $28.0 million on our equity and debt investments in Ascend.
Financial Statements and Supplementary Data—Note 10 – Investments” for more information. Net income attributable to ARLP Net income attributable to ARLP for 2025 was $311.2 million, or $2.40 per basic and diluted limited partner unit, compared to $360.9 million, or $2.77 per basic and diluted limited partner unit, for 2024 as a result of lower revenues and a decrease in the fair value of our digital assets in 2025, partially offset by reduced operating expenses and increased investment income. Segment Adjusted EBITDA Our 2025 Segment Adjusted EBITDA decreased $14.6 million, or 1.8%, to $781.9 million from 2024 Segment Adjusted EBITDA of $796.5 million. Segment Information Year Ended December 31, 2025 2024 Increase (Decrease) (in thousands) Illinois Basin Coal Operations Tons sold 25,769 24,787 4.0 % Coal sales $ 1,342,334 $ 1,399,100 $ (56,766) (4.1) % Other revenues $ 8,861 $ 11,901 $ (3,040) (25.5) % Segment Adjusted EBITDA Expense $ 894,521 $ 937,083 $ (42,562) (4.5) % Segment Adjusted EBITDA $ 456,674 $ 473,918 $ (17,244) (3.6) % Appalachia Coal Operations Tons sold 7,198 8,532 (1,334) (15.6) % Coal sales $ 590,181 $ 712,703 $ (122,522) (17.2) % Other revenues $ 2,877 $ 3,091 $ (214) (6.9) % Segment Adjusted EBITDA Expense $ 459,351 $ 551,734 $ (92,383) (16.7) % Segment Adjusted EBITDA $ 133,707 $ 164,060 $ (30,353) (18.5) % Oil & Gas Royalties Volume - BOE (1) 3,648 3,402 7.2 % Oil & gas royalties $ 137,849 $ 138,311 $ (462) (0.3) % Other revenues $ 1,707 $ $ 106.9 % Segment Adjusted EBITDA Expense $ 18,447 $ 19,853 $ (1,406) (7.1) % Segment Adjusted EBITDA $ 117,528 $ 116,958 $ 0.5 % Coal Royalties Volume - Tons sold (2) 24,120 21,085 3,035 14.4 % Intercompany coal royalties $ 80,471 $ 69,676 $ 10,795 15.5 % Segment Adjusted EBITDA Expense $ 27,612 $ 25,759 $ 1,853 7.2 % Segment Adjusted EBITDA $ 52,859 $ 43,982 $ 8,877 20.2 % (1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).
(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 3.6% to $456.7 million in 2025 from $473.9 million in 2024.
The decrease of $17.2 million was primarily attributable to lower coal sales prices, partially offset by higher sales volumes and lower operating expenses.
Coal sales price per ton decreased by 7.7% compared to 2024 as a result of lower domestic price realizations across the region.
Sales volumes increased by 4.0% compared to 2024 due primarily to increased tons sold from our Hamilton and River View mines.
Segment Adjusted EBITDA Expense decreased 4.5% compared to 2024 due to lower operating expenses per ton.
Segment Adjusted EBITDA Expense per ton in 2025 decreased by 8.2% compared to 2024 due primarily to increased production and improved recoveries at our River View and Hamilton mines, higher volumes at our Warrior operation, and reduced longwall move days at Hamilton. Appalachia Coal Operations – Segment Adjusted EBITDA decreased 18.5% to $133.7 million in 2025 from $164.1 million in 2024.
The decrease of $30.4 million was primarily attributable to lower coal sales, which decreased 17.2% to $590.2 million in 2025 from $712.7 million in 2024, partially offset by lower operating expenses.
The decrease in coal sales reflects lower coal sales volumes and price realizations.
Tons sold decreased by 15.6% in 2025 compared to 2024 primarily as a result of lower production levels at Tunnel Ridge due to challenging mining conditions and the recent transition to a new longwall district.
Average coal sales price per ton decreased by 1.8% compared to 2024 primarily due to reduced domestic pricing from our Tunnel Ridge and MC Mining operations and lower export price realizations from MC Mining and Mettiki, partially offset by a greater mix of higher priced sales tons from the MC Mining and Mettiki operations during 2025.
Segment Adjusted EBITDA Expense decreased 16.7% to $459.4 million in 2025 from $551.7 million in 2024 due to reduced volumes and lower per ton operating expenses.
Segment Adjusted EBITDA Expense per ton for 2025 decreased by 1.3% compared to 2024 due to higher recoveries at the Mettiki and MC Mining operations. Oil & Gas Royalties – Segment Adjusted EBITDA increased slightly to $117.5 million for 2025 from $117.0 million in 2024.
The increase was primarily due to increased volumes in 2025, which increased by 7.2%, higher other revenues and lower expenses, partially offset by lower average sales price per BOE, which decreased 7.0% to $37.79 per BOE.
Higher BOE volumes during 2025 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 20.2% to $52.9 million for 2025 from $44.0 million in 2024.
The $8.9 million increase was a result of increased royalty tons sold and higher average royalty rates per ton. Analysis of Historical Results of Operations – 2024 Compared with 2023 For discussion and analysis of 2024 compared to 2023, please refer to “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 27, 2025, and is incorporated by reference herein. Reconciliation of Non-GAAP Financial Measures The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA: Year Ended December 31, 2025 2024 (in thousands) Net income $ 317,250 $ 365,557 Noncontrolling interest (6,087) (4,702) Net income attributable to ARLP $ 311,163 $ 360,855 General and administrative 83,119 82,224 Depreciation, depletion and amortization 299,436 285,446 Asset impairments — 31,130 Interest expense, net 36,984 28,007 Change in fair value of digital assets 4,354 (22,395) Impairment loss on investments 28,037 — Litigation expense accrual — 15,250 Income tax expense 18,765 15,937 Consolidated Segment Adjusted EBITDA $ 781,858 $ 796,454 The following is a reconciliation of operating expenses, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense: Year Ended December 31, 2025 2024 (in thousands) Operating expenses (excluding depreciation, depletion and amortization) $ 1,368,521 $ 1,507,398 Litigation expense accrual — (15,250) Outside coal purchases 21,820 35,791 Other expense 2,062 Consolidated Segment Adjusted EBITDA Expense $ 1,391,230 $ 1,530,001 Liquidity and Capital Resources Liquidity We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions.
We believe that existing cash balances, consisting of cash and cash equivalents of $71.2 million at December 31, 2025, 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.
Risk Factors.” Unit Repurchase Program We have $80.6 million remaining authorized under our unit repurchase program as of December 31, 2025.
No units were repurchased during the year ended December 31, 2025.
The unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of units, and repurchases may be commenced or suspended from time to time without prior notice.
The timing of any future unit repurchases and the ultimate number of units to be purchased will depend on several factors, including business and market conditions, our future financial performance, and other capital priorities.
Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities” for more information on the unit repurchase program. Securitization Facility In January 2026, we extended the term of our $75.0 million Securitization Facility to January 2027.
Financial Statements and Supplementary Data—Note 12 – Long-Term Debt”. Cash Flows Cash provided by operating activities was $651.1 million for 2025 compared to $803.1 million for 2024.
The decrease in cash provided by operating activities was primarily due to the decrease in net income adjusted for non-cash items and unfavorable working capital changes primarily related to trade receivables and other miscellaneous changes.
These decreases were partially offset by favorable working capital changes primarily related to accounts payable, other receivables, and accrued payroll and related benefits. Net cash used in investing activities was $331.3 million for 2025 compared to $440.7 million for 2024.

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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.
We have not changed the definitions of previously disclosed, or included any new or discontinued any previously disclosed, financial or operational measures. Our management uses a variety of financial and operational measurements to analyze our performance.
In addition, the exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA allows management to focus solely on the evaluation of segment operating profitability as it relates to our revenues and operating expenses, which are primarily controlled by our segments. Analysis of Historical Results of Operations – 2024 Compared with 2023 Consolidated Information Year Ended December 31, 2024 2023 Increase (Decrease) (in thousands) Consolidated Total Tons sold 33,319 34,442 (1,123) (3.3) % Tons produced 32,206 34,877 (2,671) (7.7) % Volume - BOE (1) 3,402 3,105 9.6 % Coal sales $ 2,111,803 $ 2,210,210 $ (98,407) (4.5) % Oil & gas royalties $ 138,311 $ 137,751 $ 0.4 % Total revenues $ 2,448,708 $ 2,566,701 $ (117,993) (4.6) % Segment Adjusted EBITDA Expense (2) $ 1,530,001 $ 1,404,718 $ 125,283 8.9 % Net income of ARLP $ 360,855 $ 630,118 $ (269,263) (42.7) % Segment Adjusted EBITDA (2) $ 796,454 $ 1,012,173 $ (215,719) (21.3) % (1) BOE for natural gas is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel).
(2) 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.” Total Revenues Total revenues decreased 4.6% to $2.45 billion in 2024 compared to $2.57 billion in 2023 primarily due to lower coal sales and transportation revenues, partially offset by higher other revenues. ● Coal sales decreased $98.4 million or 4.5% to $2.11 billion for 2024 from $2.21 billion for 2023.
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.
Coal sales volumes decreased by 3.3% primarily due to reduced tons sold from our River View and Tunnel Ridge mines due to reduced domestic demand, partially offset by increased export sales volumes from our Gibson South operation.
Coal sales prices decreased by 1.2% primarily as a result of reduced export price realizations from our Appalachian segment. ● Transportation revenues and expenses were $112.6 million and $142.3 million for 2024 and 2023, respectively.
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.
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 $9.5 million was primarily due to increased sales of mining technology products by our Matrix Design subsidiary. 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.
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.
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.
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.
The increase of $0.79 per ton produced was primarily a result of higher maintenance costs at several mines. ● Segment Adjusted EBITDA Expense was also higher as a result of an $11.0 million non-cash deferred purchase price adjustment recorded in 2024 related to the 2015 acquisition of our Hamilton mine compared to an adjustment of $1.7 million in 2023. Depreciation, depletion and amortization Depreciation, depletion and amortization expense increased to $285.4 million for 2024 compared to $268.0 million for 2023 primarily due to increased sales of higher depreciation cost tons at our Tunnel Ridge mine as a result of lower production volumes at the mine in 2024. Asset impairments During 2024, we recorded $31.1 million of non-cash asset impairment charges as a result of our decision to reduce production at our MC Mining operation due to market uncertainty, challenging geology and higher costs.
Financial Statements and Supplementary Data—Note 9 – Long-Lived Asset Impairments.” Change in fair value of digital assets We recorded a $22.4 million increase in the fair value of our digital assets reflecting the increase in the price of bitcoin during 2024.
Effective January 1, 2024, we adopted new accounting guidance which clarifies the accounting and disclosure requirements for certain crypto assets.
The new guidance requires us to measure our digital assets at fair value and include the change in net income.
Financial 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. Segment Information Year Ended December 31, 2024 2023 Increase (Decrease) (in thousands) Illinois Basin Coal Operations Tons sold 24,787 24,724 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 9.6 % Oil & gas royalties $ 138,311 $ 137,751 $ 0.4 % Other revenues $ $ 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 4.5 % Intercompany coal royalties $ 69,676 $ 65,572 $ 4,104 6.3 % Other revenues $ $ $ 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).
(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.
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.
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.
Segment Adjusted EBITDA Expense per ton increased by 8.5% compared to 2023 resulting from reduced production and higher labor costs at several mines in the region. Appalachia Coal Operations – Segment Adjusted EBITDA decreased 50.4% to $164.1 million for 2024 from $330.7 million in 2023.
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.
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.
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.
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. Oil & Gas Royalties – Segment Adjusted EBITDA decreased to $117.0 million for 2024 from $121.5 million in 2023.
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.
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.
The $2.8 million increase was a result of increased royalty tons sold and higher average royalty rates per ton. Analysis of Historical Results of Operations – 2023 Compared with 2022 For discussion and analysis of 2023 compared to 2022, please refer to “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 23, 2024, and is incorporated by reference herein. Reconciliation of Non-GAAP Financial Measures The following is a reconciliation of net income, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA: Year Ended December 31, 2024 2023 (in thousands) Net income $ 365,557 $ 636,170 Noncontrolling interest (4,702) (6,052) Net income attributable to ARLP $ 360,855 $ 630,118 General and administrative 82,224 79,096 Depreciation, depletion and amortization 285,446 267,982 Asset impairments 31,130 — Interest expense, net 28,007 26,697 Change in fair value of digital assets (22,395) — Litigation expense accrual 15,250 — Income tax expense 15,937 8,280 Consolidated Segment Adjusted EBITDA $ 796,454 $ 1,012,173 The following is a reconciliation of operating expenses, the most comparable GAAP financial measure, to consolidated Segment Adjusted EBITDA Expense: Year Ended December 31, 2024 2023 (in thousands) Operating expenses (excluding depreciation, depletion and amortization) $ 1,507,398 $ 1,368,787 Litigation expense accrual (15,250) — Outside coal purchases 35,791 36,149 Other expense (income) 2,062 (218) Segment Adjusted EBITDA Expense $ 1,530,001 $ 1,404,718 Liquidity and Capital Resources Liquidity We have historically satisfied our working capital requirements and funded our capital expenditures, investments, contractual obligations and debt service obligations with cash generated from operations, cash provided by the issuance of debt or equity, borrowings under credit and securitization facilities and other financing transactions.
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.
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.
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.

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