Market Overview

Alliance Resource Partners, L.P. and Alliance Holdings GP, L.P. Announce Completion of Simplification Transactions and Board Approval of $100 Million Unit Repurchase Program


Alliance Resource Partners, L.P. (NASDAQ:ARLP) announced today that it
has closed the previously announced agreement pursuant to which, through
a series of transactions (the "Simplification Transactions"), Alliance
Holdings GP, L.P. ("AHGP") became a wholly owned subsidiary of ARLP and
all of the ARLP common units held by AHGP and its subsidiaries were
distributed to the unitholders of AHGP in exchange for their AHGP common
units. ARLP also issued 1,322,388 ARLP common units in exchange for a
1.0001% general partner interest in Alliance Resource Operating
Partners, L.P. and a 0.001% managing membership interest in Alliance
Coal, LLC.

The Simplification Transactions were structured such that each AHGP
unitholder now holds, directly after the transactions, the same economic
share of ARLP and its subsidiaries that it held indirectly through AHGP
before the transactions. As a result of the Simplification Transactions,
all of the outstanding AHGP common units were canceled and ceased to be
publicly traded on the Nasdaq Global Select Market.

Pursuant to a consent solicitation period, that expired at 11:59 p.m.
Eastern on May 28, 2018, AHGP unitholders representing approximately 68%
of the total outstanding AHGP common units delivered written consents
approving the Simplification Transactions.

Highlights of the Simplification Transactions

The Simplification Transactions were intended to simplify the
organizational structure of ARLP and AHGP, increase investor
transparency, attract a broader investor base to a single, larger entity
with increased public float and greater liquidity and eliminate the
duplicative costs required to maintain two public companies.

Each person owning an AHGP common unit on May 31, 2018 will receive
approximately 1.478 ARLP common units in exchange for each AHGP common
unit owned by such person. Each registered unitholder entitled to
receive a fractional ARLP common unit will, in lieu of such fractional
unit, receive cash in amount equal to the volume weighted average
trading price of the ARLP common units as reported by Bloomberg during
the 20 trading day period ending on the third trading day immediately
preceding the effective date of the Simplification Transactions. To the
extent a broker facilitates a distribution of cash in lieu of fractional
units, they should treat that cash as a distribution from AHGP and
withhold upon any such distributions to non-U.S. holders, as appropriate
and more fully described below.

Unit Repurchase Program

ARLP also announced today that the Board of Directors of its general
partner (the "Board") has approved the establishment of a unit
repurchase program authorizing ARLP to repurchase up to $100 million of
its outstanding limited partner common units. The unit repurchase
program announced today is intended to enhance ARLP's ability to achieve
its goal of creating long-term value for unitholders and, along with
management's objective of increasing quarterly cash distributions,
increases flexibility in returning cash to unitholders. Future unit
repurchases and distributions will be subject to ongoing Board review
and authorization and will be based on a number of factors, including
ARLP's financial and operating performance and other capital
requirements as well as future economic, business and market conditions.

The unit repurchase program has no time limit and ARLP may repurchase
units from time to time in the open market or in other privately
negotiated transactions. The unit repurchase program authorization does
not obligate ARLP to repurchase any dollar amount or number of its
units, and repurchases may be commenced or suspended from time to time
without prior notice.

Forward-Looking Statements

This press release includes "forward-looking statements" within the
meaning of federal securities laws. All statements, other than
historical facts included in this press release, including (but not
limited to) references to the benefits of the proposed transactions may
be forward-looking statements.

All forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially from
those in the forward-looking statements, many of which are generally
outside the control of ARLP and are difficult to predict. All
forward-looking statements speak only as of the date of this press
release. Although ARLP believes that the plans, intentions and
expectations reflected in or suggested by the forward-looking statements
are reasonable, there is no assurance that these plans, intentions or
expectations will be achieved. Therefore, actual outcomes and results
could materially differ from what is expressed, implied or forecast in
such forward-looking statements. ARLP undertakes no obligation to
publicly update any of these forward-looking statements to reflect
events or circumstances that may arise after the date hereof.

About Alliance Resource Partners, L.P.

ARLP is a diversified producer and marketer of coal to major United
States utilities and industrial users. ARLP, the nation's first publicly
traded master limited partnership involved in the production and
marketing of coal, is currently the second largest coal producer in the
eastern United States with mining operations in the Illinois Basin and
Appalachian coal producing regions.

ARLP currently operates eight mining complexes in Illinois, Indiana,
Kentucky, Maryland and West Virginia as well as a coal loading terminal
on the Ohio River at Mount Vernon, Indiana. ARLP also generates income
from a variety of other sources, including investments in oil and gas
mineral interests and gas compression services.

News, unit prices and additional information about ARLP, including
filings with the Securities and Exchange Commission, are available at
For more information, contact the investor relations department of
Alliance Resource Partners, L.P. at (918) 295-7674 or via e-mail at

About Alliance Holdings GP, L.P.

As a result of the Simplification Transactions, all outstanding AHGP
common units were canceled and ceased to be publicly traded on the
Nasdaq Global Select Market, effective following the close of trading

Additional Withholding Information for Brokers

This announcement is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b), with respect to 100% of AHGP's
distributions of cash in lieu of fractional ARLP units to foreign
investors which are attributable to gross income, gain or loss that is
effectively connected with a United States trade or business. The cash
in lieu of fractional ARLP units will be paid to the holders of ARLP
fractional units as promptly as practicable after the determination of
the amount of cash to be paid to such holders of fractional units.
Accordingly, AHGP's distributions of cash in lieu of fractional ARLP
units to foreign investors are subject to federal income tax withholding
at the highest applicable tax rate.

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