Alliance in the Community
Alliance believes that being active in the community is imperative to being a great company. Below are just some of the examples of the ways in which Alliance helps out local and international communities.
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Alliance has created and actively fosters close ties with the colleges and universities in the areas near our operations. We maintain long-standing relationships with many of the top Mining Engineering programs in the nation and are very proud of our internship program. Alliance recently provided funding for a new Mining Engineering Lab at the University of Kentucky. In addition, Alliance has committed to the establishment of the Alliance Coal Chair in Mining Engineering at the University of Kentucky, pledging $1.2 million dollars to assist the University in attracting, hiring, and retaining the best and brightest mining engineering professors. The position is expected to be filled in time for the 2010 Fall semester.
We are also proud of our association with the Kentucky Community and Technical College System (KCTCS). Alliance and the KCTCS work together to train new and current employees. New employees are trained extensively so that they may enter the workplace capable of performing their job duties more safely and efficiently than typical novice miners. Current employees are eligible and encouraged to attend classes that will help them perform their jobs with an even higher level of confidence and skill.
Monday, November 29, 2010
ARLP Reports Record Coal Sales
Alliance Resource Partners, L.P.: Record Coal Sales Volumes and Pricing Lead to Record Quarterly Revenues, Up 37.0%, Increased EBITDA, Up 64.0%, and Net Income, Up 100.9%; Quarterly Cash Distribution Increased 2.5% to $0.83 Per Unit
TULSA, Okla., Oct 27, 2010 (BUSINESS WIRE) --
Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported record financial results for the quarter ended September 30, 2010 (the "2010 Quarter"). Strong increases in both coal sales volumes and average realized pricing drove revenues in the 2010 Quarter to a record $410.4 million, an increase of 37.0% compared to the quarter ended September 30, 2009 (the "2009 Quarter"). ARLP also posted significant growth in the 2010 Quarter for EBITDA, which increased 64.0% to $119.4 million; net income, which climbed 100.9% to $73.2 million; and net income per basic and diluted partner unit, which jumped 160.0% to $1.48. (For a discussion of our net income presentation and a definition of EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this release).
ARLP also announced that the Board of Directors of its managing general partner increased the cash distribution to unitholders for the 2010 Quarter to $0.83 per unit (an annualized rate of $3.32 per unit), payable on November 12, 2010 to all unitholders of record as of the close of trading on November 5, 2010. The announced distribution represents a 9.2% increase over the cash distribution of $0.76 per unit for the 2009 Quarter and a 2.5% increase over the cash distribution of $0.81 per unit for the second quarter of 2010 (the "Sequential Quarter").
"Strong operating and financial performance through the first nine months has kept ARLP firmly on track to deliver our tenth consecutive year of record results in 2010," said Joseph W. Craft III, President and Chief Executive Officer. "Looking ahead, we remain encouraged by opportunities for growth beyond 2010. Ongoing discussions with customers seeking long-term supply commitments at attractive prices are positive indicators of future market strength. ARLP also has clear visibility to future production growth as development of the new Tunnel Ridge mine remains on schedule to begin longwall production in late 2011. Our consistently strong performance and future growth potential allowed our Board of Directors to again provide an attractive increase in quarterly distributions to ARLP's unitholders."
Consolidated Financial Results
Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009
Record revenues in the 2010 Quarter were driven primarily by increased coal sales volumes and higher average coal price realizations due to ARLP's strong coal sales contract position. Increased tons sold from the River View and Mettiki mines pushed coal sales volumes in the 2010 Quarter to a record 7.7 million tons, an increase of 24.2% over the 6.2 million tons sold in the 2009 Quarter. Primarily reflecting improved pricing under ARLP's coal sales contracts, average coal sales prices in the 2010 Quarter rose 13.4% to a record $51.68 per ton sold.
Production volumes rose 13.0% in the 2010 Quarter to 7.1 million tons, compared to 6.3 million tons in the 2009 Quarter, primarily as a result of increased coal production at the River View mine. Higher operating expenses in the 2010 Quarter were primarily related to the continued ramp up of production at our River View mine since commencement of initial production operations in August 2009. Increased coal production and sales volumes at River View and our Mettiki mine particularly impacted materials and supplies expenses, sales-related expenses and labor costs during the 2010 Quarter. Higher operating expenses also reflected costs associated with incidental production at our Tunnel Ridge mine development project.
Financial results for the 2010 Quarter compared to the 2009 Quarter were also impacted by higher depreciation, depletion and amortization, which increased $9.4 million to $37.6 million primarily as a result of additional depreciation expense associated with River View. In addition, outside coal purchases jumped $5.2 million due to increased sales into the export market and general and administrative expenses rose $4.3 million primarily as a result of increased incentive compensation expense.
Nine Months Ended September 30, 2010 Compared to Nine Months Ended September 30, 2009
For the nine months ended September 30, 2010 (the "2010 Period"), ARLP reported records for all major operating and financial metrics. Led by increased production and sales volumes at River View, tons produced climbed 10.7% and tons sold jumped 19.6%, compared to the nine months ended September 30, 2009 (the "2009 Period"). Higher coal sales volumes and increased average coal sales prices, which rose $4.10 per ton sold, combined to drive revenues for the 2010 Period to a record $1.2 billion, an increase of 27.7%, compared to the 2009 Period, while EBITDA for the 2010 Period increased 42.6% to a record $367.3 million, compared to EBITDA of $257.7 million for the 2009 Period. Net income for the 2010 Period increased 55.3% to $233.7 million, or $4.86 of net income per basic and diluted limited partner unit, compared to net income of $150.4 million, or $2.85 of net income per basic and diluted limited partner unit, for the 2009 Period.
TULSA, Okla., Oct 27, 2010 (BUSINESS WIRE) --
Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported record financial results for the quarter ended September 30, 2010 (the "2010 Quarter"). Strong increases in both coal sales volumes and average realized pricing drove revenues in the 2010 Quarter to a record $410.4 million, an increase of 37.0% compared to the quarter ended September 30, 2009 (the "2009 Quarter"). ARLP also posted significant growth in the 2010 Quarter for EBITDA, which increased 64.0% to $119.4 million; net income, which climbed 100.9% to $73.2 million; and net income per basic and diluted partner unit, which jumped 160.0% to $1.48. (For a discussion of our net income presentation and a definition of EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this release).
ARLP also announced that the Board of Directors of its managing general partner increased the cash distribution to unitholders for the 2010 Quarter to $0.83 per unit (an annualized rate of $3.32 per unit), payable on November 12, 2010 to all unitholders of record as of the close of trading on November 5, 2010. The announced distribution represents a 9.2% increase over the cash distribution of $0.76 per unit for the 2009 Quarter and a 2.5% increase over the cash distribution of $0.81 per unit for the second quarter of 2010 (the "Sequential Quarter").
"Strong operating and financial performance through the first nine months has kept ARLP firmly on track to deliver our tenth consecutive year of record results in 2010," said Joseph W. Craft III, President and Chief Executive Officer. "Looking ahead, we remain encouraged by opportunities for growth beyond 2010. Ongoing discussions with customers seeking long-term supply commitments at attractive prices are positive indicators of future market strength. ARLP also has clear visibility to future production growth as development of the new Tunnel Ridge mine remains on schedule to begin longwall production in late 2011. Our consistently strong performance and future growth potential allowed our Board of Directors to again provide an attractive increase in quarterly distributions to ARLP's unitholders."
Consolidated Financial Results
Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009
Record revenues in the 2010 Quarter were driven primarily by increased coal sales volumes and higher average coal price realizations due to ARLP's strong coal sales contract position. Increased tons sold from the River View and Mettiki mines pushed coal sales volumes in the 2010 Quarter to a record 7.7 million tons, an increase of 24.2% over the 6.2 million tons sold in the 2009 Quarter. Primarily reflecting improved pricing under ARLP's coal sales contracts, average coal sales prices in the 2010 Quarter rose 13.4% to a record $51.68 per ton sold.
Production volumes rose 13.0% in the 2010 Quarter to 7.1 million tons, compared to 6.3 million tons in the 2009 Quarter, primarily as a result of increased coal production at the River View mine. Higher operating expenses in the 2010 Quarter were primarily related to the continued ramp up of production at our River View mine since commencement of initial production operations in August 2009. Increased coal production and sales volumes at River View and our Mettiki mine particularly impacted materials and supplies expenses, sales-related expenses and labor costs during the 2010 Quarter. Higher operating expenses also reflected costs associated with incidental production at our Tunnel Ridge mine development project.
Financial results for the 2010 Quarter compared to the 2009 Quarter were also impacted by higher depreciation, depletion and amortization, which increased $9.4 million to $37.6 million primarily as a result of additional depreciation expense associated with River View. In addition, outside coal purchases jumped $5.2 million due to increased sales into the export market and general and administrative expenses rose $4.3 million primarily as a result of increased incentive compensation expense.
Nine Months Ended September 30, 2010 Compared to Nine Months Ended September 30, 2009
For the nine months ended September 30, 2010 (the "2010 Period"), ARLP reported records for all major operating and financial metrics. Led by increased production and sales volumes at River View, tons produced climbed 10.7% and tons sold jumped 19.6%, compared to the nine months ended September 30, 2009 (the "2009 Period"). Higher coal sales volumes and increased average coal sales prices, which rose $4.10 per ton sold, combined to drive revenues for the 2010 Period to a record $1.2 billion, an increase of 27.7%, compared to the 2009 Period, while EBITDA for the 2010 Period increased 42.6% to a record $367.3 million, compared to EBITDA of $257.7 million for the 2009 Period. Net income for the 2010 Period increased 55.3% to $233.7 million, or $4.86 of net income per basic and diluted limited partner unit, compared to net income of $150.4 million, or $2.85 of net income per basic and diluted limited partner unit, for the 2009 Period.
Working at ARLP
I would definitely consider working at ARLP. They offer fair wages and wonderful benefits. Here is just a few of the benefits posted on the company's web-site.
Benefits
Alliance offers an attractive benefit plan that is very competitive compared with both the coal industry and the job market as a whole. We feel that our benefit package is above the standards set by many of our union-dominated competitors. Our workforce is entirely union-free.
Our benefit plan was recognized for its innovation by the Southwest Benefits Administrators Association, receiving that group's Best in Class, Welfare Program Award. During 2008, our benefit plan was named among the top 10 percent of active employee benefit plans by Cammock’s Inc., an independent coal industry benefit survey organization. We also were honored as 2008 Business of the Year in Hopkins County, Kentucky, based on Alliance's job creation in the area and our contributions to the community.
We are proud to offer on-site medical clinics for our employees and their families, offering free care and over-the-counter medicines as well as assistance in managing and reducing their risk for certain illnesses. For more information on this program, click here.
We also support life-enhancement opportunities through educational initiatives, employee education reimbursement, matching gift programs, short-term and long-term bonus incentives, and a generous profit-sharing and savings plan. Our 401(k) plan has more features, greater employee deferral, and higher employer contribution levels than the vast majority of our peers in the coal industry and other similarly-sized companies.
In an effort to help our employees make the most of our benefit plan, we offer a web-based benefit-management system. This system, available at www.coalbenefits.com, allows any employee to review and make changes to his or her benefit coverage electronically. The system also provides employees with easy access to commonly used forms and relevant information about medical benefits, prescription drugs, spending accounts, family and career changes, and profit sharing and savings plans.
Benefits
Alliance offers an attractive benefit plan that is very competitive compared with both the coal industry and the job market as a whole. We feel that our benefit package is above the standards set by many of our union-dominated competitors. Our workforce is entirely union-free.
Our benefit plan was recognized for its innovation by the Southwest Benefits Administrators Association, receiving that group's Best in Class, Welfare Program Award. During 2008, our benefit plan was named among the top 10 percent of active employee benefit plans by Cammock’s Inc., an independent coal industry benefit survey organization. We also were honored as 2008 Business of the Year in Hopkins County, Kentucky, based on Alliance's job creation in the area and our contributions to the community.
We are proud to offer on-site medical clinics for our employees and their families, offering free care and over-the-counter medicines as well as assistance in managing and reducing their risk for certain illnesses. For more information on this program, click here.
We also support life-enhancement opportunities through educational initiatives, employee education reimbursement, matching gift programs, short-term and long-term bonus incentives, and a generous profit-sharing and savings plan. Our 401(k) plan has more features, greater employee deferral, and higher employer contribution levels than the vast majority of our peers in the coal industry and other similarly-sized companies.
In an effort to help our employees make the most of our benefit plan, we offer a web-based benefit-management system. This system, available at www.coalbenefits.com, allows any employee to review and make changes to his or her benefit coverage electronically. The system also provides employees with easy access to commonly used forms and relevant information about medical benefits, prescription drugs, spending accounts, family and career changes, and profit sharing and savings plans.
The most interesting theing I have learned
The most interesting thing I have learned about the company was how giving they are to the community. It is wonderful to see industries getting involved in economic development at community relations.
Sunday, November 21, 2010
State fines Alliance Coal $410,000 for Webster County operation
It is important for all coal suppliers to keep up with their mineral rights and permits to mine coal. The following found in the Gleaner, in August, illustrates some of the consequences for not doing so.
FRANKFORT, Ky. (AP) — Kentucky natural resources officials have fined a subsidiary of Alliance Coal $410,000 for mining land not covered by a permit issued last year.
The Courier-Journal in Louisville reported the fine against Warrior Coal LLC over an underground mine in Webster County.
Rusty Ashcraft, manager of environmental affairs and permitting for Alliance, said the company will appeal the fine to a cabinet hearing, as it has the citations.
Central to the issue is a state policy that allows mining where at least two-thirds of the property owners have given a coal operator legal authorization. The policy allows mining to begin, but only on land for which permission has been given.
FRANKFORT, Ky. (AP) — Kentucky natural resources officials have fined a subsidiary of Alliance Coal $410,000 for mining land not covered by a permit issued last year.
The Courier-Journal in Louisville reported the fine against Warrior Coal LLC over an underground mine in Webster County.
Rusty Ashcraft, manager of environmental affairs and permitting for Alliance, said the company will appeal the fine to a cabinet hearing, as it has the citations.
Central to the issue is a state policy that allows mining where at least two-thirds of the property owners have given a coal operator legal authorization. The policy allows mining to begin, but only on land for which permission has been given.
Monday, November 15, 2010
Alliance Resource Partners, L.P.: Kentucky Mine Safety Report Confirms Dotiki Mine Accident Due to Undetectable Geologic Conditions
TULSA, Okla.--(BUSINESS WIRE)--Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced that the Kentucky Office of Mine Safety and Licensing (OMSL) has issued its final report on the fatal roof fall accident that occurred April 28, 2010 at the Dotiki mine operated by ARLP’s independent operating subsidiary Webster County Coal, LLC. The accident tragically claimed the lives of two Dotiki miners, Justin Travis and Michael Carter.
Following the accident, Webster County Coal, OMSL and the Mine Safety and Health Administration (MSHA) cooperatively conducted independent investigations to determine both the causes of the fatal roof fall accident and means to prevent a similar occurrence in the future. Webster County Coal submitted its investigative findings to OMSL and MSHA on June 4, 2010. After reviewing the OMSL report with Kentucky state officials earlier today, Webster County Coal confirmed that the findings of the OMSL report were consistent with its internal investigations concluding that the accident was the result of unpredictable and unforeseeable geologic conditions that were highly unusual at the Dotiki mine. Although the occurrence of the roof fall necessitated the issuance of a Notice of Non-Compliance, the OMSL report also confirmed that at the time of the accident the Dotiki mine was operating in full compliance with the roof control plan approved by OMSL and the MSHA. In addition, the report noted OMSL’s approval of the voluntary modifications to the Dotiki roof control plan implemented by Webster County Coal immediately following the accident.
Dotiki, the largest mine in Kentucky and one of the largest underground mines in the United States, employs more than 400 miners and has almost 600 miles of ventilated underground tunnel – longer than the distance from the Dotiki mine near Madisonville, Kentucky to Washington, D.C.
About Alliance Resource Partners, L.P.
ARLP is a diversified producer and marketer of coal to major United States utilities and industrial users. As the nation's only publicly traded master limited partnership involved in the production and marketing of coal, ARLP is currently the fifth largest coal producer in the eastern United States with mining operations in the Illinois Basin, Northern Appalachian and Central Appalachian coal producing regions. ARLP operates nine mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia and is also constructing a new mining complex in West Virginia. In addition, ARLP operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana.
Following the accident, Webster County Coal, OMSL and the Mine Safety and Health Administration (MSHA) cooperatively conducted independent investigations to determine both the causes of the fatal roof fall accident and means to prevent a similar occurrence in the future. Webster County Coal submitted its investigative findings to OMSL and MSHA on June 4, 2010. After reviewing the OMSL report with Kentucky state officials earlier today, Webster County Coal confirmed that the findings of the OMSL report were consistent with its internal investigations concluding that the accident was the result of unpredictable and unforeseeable geologic conditions that were highly unusual at the Dotiki mine. Although the occurrence of the roof fall necessitated the issuance of a Notice of Non-Compliance, the OMSL report also confirmed that at the time of the accident the Dotiki mine was operating in full compliance with the roof control plan approved by OMSL and the MSHA. In addition, the report noted OMSL’s approval of the voluntary modifications to the Dotiki roof control plan implemented by Webster County Coal immediately following the accident.
Dotiki, the largest mine in Kentucky and one of the largest underground mines in the United States, employs more than 400 miners and has almost 600 miles of ventilated underground tunnel – longer than the distance from the Dotiki mine near Madisonville, Kentucky to Washington, D.C.
About Alliance Resource Partners, L.P.
ARLP is a diversified producer and marketer of coal to major United States utilities and industrial users. As the nation's only publicly traded master limited partnership involved in the production and marketing of coal, ARLP is currently the fifth largest coal producer in the eastern United States with mining operations in the Illinois Basin, Northern Appalachian and Central Appalachian coal producing regions. ARLP operates nine mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia and is also constructing a new mining complex in West Virginia. In addition, ARLP operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana.
Tuesday, November 9, 2010
Judge Rules Against Alliance Resource Partners in Royalties Lawsuit
SPRINGFIELD, Ill. (AP) - A judge says a coal company and two other Alliance Resource Partners subsidiaries must pay $3.8 million to resolve a lawsuit over royalty payments involving a southern Illinois coal mine.
Second Circuit Court Judge David Overstreet ruled Friday that White County Coal Co. failed to make the payments to widows and heirs of men who discovered a 200-million-ton coal reserve in White County.
The judgment includes unpaid royalties on 6.4 million tons of coal mined at White County's Pattiki Mine near Carmi between 2002 and September 2009.
Alliance also must calculate and pay additional sums for royalties and interest due on coal mined since September 2009 and reinstate the plaintiffs' royalty rights on 6,000 remaining coal acres.
A spokesman for Tulsa, Okla.-based Alliance Resources has declined to comment.
Second Circuit Court Judge David Overstreet ruled Friday that White County Coal Co. failed to make the payments to widows and heirs of men who discovered a 200-million-ton coal reserve in White County.
The judgment includes unpaid royalties on 6.4 million tons of coal mined at White County's Pattiki Mine near Carmi between 2002 and September 2009.
Alliance also must calculate and pay additional sums for royalties and interest due on coal mined since September 2009 and reinstate the plaintiffs' royalty rights on 6,000 remaining coal acres.
A spokesman for Tulsa, Okla.-based Alliance Resources has declined to comment.
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