Wells Fargo 2014 Energy Symposium December 9, 2014 Brian L. Cantrell Chief Financial Officer
Two Ways to Invest in Alliance 72.9% 27.1% L.P. Alliance Holdings L.P. Management / Interest GP , L.P. Interest Public Others (a) (NASDAQ: AHGP) Unitholders 59.9 million units outstanding 1.98% General IDRs 42.0% L.P. Partner…
Alliance Partnership Profiles NASDAQ Symbol: ARLP AHGP Unit Price: 44.98 64.64 LTM/YTD Total Return: 24.9%/23.3% 22.2%/16.1% Annualized Distribution: 2.55 3.57 Distribution Yield: 5.67% 5.52% Debt/EBITDA (ltm): 0.97x - Mkt…
The Alliance Strategy for Success Create Sustainable Growth in Cash Flow and Deliver Consistent Growth in Distributions to ARLP and AHGP Unitholders Focus on Expansion opportunities through High-return organic development projects…
Alliance Assets Diversified producer and marketer of coal to major U.S. utilities and industrial users 1. Pattiki Complex 2. River View Complex 3. Dotiki Complex 4. Warrior Complex 5. Hopkins Complex Pennsylvania 6. Gibson North…
Alliance Has Consistently Delivered ARLP Coal Tons Produced ARLP Coal Tons Sold Million Tons Million Tons ARLP Revenues ARLP EBITDA Dollars in Billions Dollars in Millions 2014 estimates reflect ARLP guidance ranges as…
Tunnel Ridge Longwall Hitting Its Stride in 2014 Production expected to ramp in 2014 - 3.7 million tons in 2013 6.0 million tons in 2014 Operating costs continue to improve 3Q 2014 operating expense/ton fell 25% Q/Q…
Gibson South Online ahead of schedule First continuous mining unit began production in April 2014 with three CM units now operating Currently anticipate 2014 production of 800,000 tons Plan to run three CM units in 2015…
White Oak Investments Provides sustainable long-term cash flow growth Longwall production began late October 2014 ARLP investments substantially completed in 2015 ARLP cash flows generated from three sources Minimum royalties…
Cash Flow Growth Drives Performance 26 Consecutive Quarters of Increased Distributions ARLP Distribution Paid / Unit ARLP has generated a 322% total return to unitholders since 2008 Source: Company filings Company filings…
IDRs Enhance Growth at AHGP AHGP Distribution Paid/ Unit AHGP unitholders have enjoyed a 439% total return since 2008 Source: Company filings Company filings - Distributions paid per unit. Total return calculated as of…
Alliance is Well Positioned
Illinois Basin Expected to Outperform Other Regions Demand for Illinois Basin Coal Driven By Increased scrubber capacity Low delivered cost advantage Attractive range of coal qualities Transportation options 14
Alliance Operations Are Focused In The Illinois Basin. 16% 17% 5% 79% 82% Illinois Basin Appalachia Source: ARLP filings and estimates as of December 31, 2013 15
. And Are Attractive To Customers Favorable attributes of ARLP Illinois Basin Operations Strategically located Direct rail CSX and NS Direct barge Ohio and Green Rivers Truck and Mt. Vernon transloading facility Wide range of coal…
Conservative Balance Sheet and Robust Liquidity Low Leverage 8.4x Bank facilities provide sufficient capacity 700 Million Revolving 4.0x Credit Facility 238 Million Term Loan Liquidity at 2014Q3 539 1.0x million ARLP Energy…
Alliance Investment Thesis
Why Alliance The MLP Coal Investment leveraging. Clear strategy and focus Well-positioned operations Low-cost producer Highly-contracted sales book Solid balance sheet Strong distribution growth IDRs enhance AHGP growth potential…
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