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Alliance Resource Partners, L.P. Reports Record Quarterly EBITDA and Coal Production; Higher Coal Sales Volumes Lift Revenue and



  Alliance Resource Partners, L.P. Reports Record Quarterly EBITDA and Coal
  Production; Higher Coal Sales Volumes Lift Revenue and Net Income; Quarterly
  Cash Distribution Increases 2.0% to $1.13 Per Unit

Business Wire

TULSA, Okla. -- April 26, 2013

Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported financial
results for the quarter ended March 31, 2013 (the "2013 Quarter"). Increased
coal sales volumes drove revenues higher in the 2013 Quarter to $548.1
million, an increase of 23.6% compared to the quarter ended March 31, 2012
(the "2012 Quarter"). Higher revenues and record coal production contributed
to record EBITDA, which climbed to $173.1 million for the 2013 Quarter, an
increase of 31.7% compared to the 2012 Quarter. ARLP also posted increased net
income in the 2013 Quarter, which rose 24.1% to $102.9 million, or net income
per basic and diluted limited partner unit of $1.95 per unit, a 26.6% increase
compared to the 2012 Quarter. (For 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 2013 Quarter to
$1.13 per unit (an annualized rate of $4.52 per unit), payable on May 15, 2013
to all unitholders of record as of the close of trading on May 8, 2013. The
announced distribution represents a 10.2% increase over the cash distribution
of $1.025 per unit for the 2012 Quarter and a 2.0% increase over the cash
distribution of $1.1075 per unit for the 2012 fourth quarter (the "Sequential
Quarter").

"ARLP came out of the gate strong in 2013, posting solid increases to coal
sales volumes, revenues and net income and setting new quarterly records for
coal production and EBITDA," said Joseph W. Craft III, President and Chief
Executive Officer. "Our first quarter results have us on track for a
thirteenth consecutive year of record operating and financial performance. As
a result, we have provided ARLP's unitholders with an attractive distribution
increase for the twentieth consecutive quarter."

Consolidated Financial Results

Three Months Ended March 31, 2013 Compared to Three Months Ended March 31,
2012

For the 2013 Quarter, higher coal sales volumes drove revenues up 23.6% to
$548.1 million, compared to the 2012 Quarter. Higher sales volumes,
particularly from the longwall operation at our Tunnel Ridge mine which began
production in May 2012, the Onton mine acquired in April 2012 and increases
from our Gibson North, River View, Warrior and Pattiki mines, pushed total
coal sales volumes to 9.7 million tons in the 2013 Quarter, an increase of
24.1% compared to the 2012 Quarter. Total average coal sales price for the
2013 Quarter increased slightly compared to the 2012 Quarter to $55.12 per ton
sold.

The Onton and Tunnel Ridge mines also contributed to record coal production of
9.8 million tons in the 2013 Quarter, an increase of 15.4% compared to the
2012 Quarter. Higher coal sales and production volumes led to increased
sales-related expenses, materials and supplies expenses, labor-related
expenses and maintenance costs, which combined to drive operating expenses in
the 2013 Quarter higher by 27.4% to $348.6 million, compared to the 2012
Quarter. Outside coal purchases declined by $13.6 million due to decreases in
coal brokerage and purchasing activity. As discussed below, Segment Adjusted
EBITDA expense per ton declined to $35.98 in the 2013 Quarter, an improvement
of 2.2% compared to the 2012 Quarter.

General and administrative expenses increased to $15.2 million in the 2013
Quarter, primarily as a result of higher incentive compensation-related
expenses. Depreciation, depletion and amortization increased $21.3 million to
$64.4 million in the 2013 Quarter compared to the 2012 Quarter, primarily as a
result of the increased production volumes mentioned above, as well as capital
expenditures related to production expansion and infrastructure investments at
various operations.

As anticipated, ARLP’s financial results for both the 2013 and 2012 Quarters
were negatively impacted by losses related to White Oak’s development of its
Mine No.1. Since our equity investment in White Oak entitles ARLP to receive
substantially all distributions from White Oak until we achieve our
contractual preferred return, accounting rules require us to currently reflect
substantially all of White Oak’s income and losses. As a result, ARLP reported
net equity in loss of affiliates of $3.9 million for the 2013 Quarter and $3.8
million for the 2012 Quarter, primarily due to the allocation of losses
related to White Oak’s mine development activities.

Regional Results and Analysis

(in             2013          2012         % Change     2012
millions,       First         First        Quarter      Fourth      % Change
except per      Quarter       Quarter      /            Quarter     Sequential
ton data)                                  Quarter
                                                                     
Illinois
Basin
Tons sold          7.706         6.513     18.3  %        7.885     (2.3   )%
Coal sales
price per       $  51.95      $  51.91     0.1   %      $ 52.66     (1.3   )%
ton (1)
Segment
Adjusted
EBITDA          $  30.38      $  30.95     (1.8  )%     $ 30.76     (1.2   )%
Expense per
ton (2)
Segment
Adjusted        $  167.2      $  136.9     22.1  %      $ 173.1     (3.4   )%
EBITDA (2)
                                                                     
Central
Appalachia
Tons sold          0.550         0.509     8.1   %        0.426     29.1   %
Coal sales
price per       $  81.46      $  80.48     1.2   %      $ 80.38     1.3    %
ton (1)
Segment
Adjusted
EBITDA          $  64.19      $  60.44     6.2   %      $ 80.18     (19.9  )%
Expense per
ton (2)
Segment
Adjusted        $  9.7        $  10.2      (4.9  )%     $ 0.1       N/M(4)
EBITDA (2)
                                                                     
Northern
Appalachia
Tons sold          1.442         0.708     103.7 %        1.431     0.8    %
Coal sales
price per       $  61.99      $  62.06     (0.1  )%     $ 59.45     4.3    %
ton (1)
Segment
Adjusted
EBITDA          $  51.19      $  62.45     (18.0 )%     $ 52.58     (2.6   )%
Expense per
ton(2)
Segment
Adjusted        $  16.5       $  0.3       N/M(4)       $ 10.6      55.7   %
EBITDA (2)
                                                                     
Total (3)
Tons sold          9.698         7.812     24.1  %        9.787     (0.9   )%
Coal sales
price per       $  55.12      $  54.99     0.2   %      $ 55.00     0.2    %
ton (1)
Segment
Adjusted
EBITDA          $  35.98      $  36.80     (2.2  )%     $ 36.79     (2.2   )%
Expense per
ton (2)
Segment
Adjusted        $  188.4      $  145.7     29.3  %      $ 181.3     3.9    %
EBITDA (2)
                                                                            

(1)     Sales price per ton is defined as total coal sales divided by total
        tons sold.
        For definitions of Segment Adjusted EBITDA expense per ton and Segment
(2)     Adjusted EBITDA and related reconciliations to comparable GAAP
        financial measures, please see the end of this release.
(3)     Total includes White Oak, other, corporate and eliminations.
(4)     Percentage change not meaningful.
         

Reflecting higher sales volumes across all regions, ARLP sold 9.7 million tons
of coal in the 2013 Quarter, an increase of 24.1% over the 2012 Quarter. Coal
sales volumes in the Illinois Basin increased from the 2012 Quarter primarily
as a result of strong sales and production performance from the River View,
Warrior, Gibson North and Pattiki mines, as well as additional production from
the Onton mine acquired in April 2012. In Central Appalachia, higher coal
sales volumes in the 2013 Quarter primarily reflect an improvement from the
2012 Quarter which was adversely impacted by delayed contract shipments.
Sequentially, coal sales volumes in Central Appalachia benefitted from an
increase in production from the Pontiki mine, which was temporarily idled due
to regulatory actions in late 2012. Coal sales volumes in Northern Appalachia
increased from the 2012 Quarter reflecting the start-up of longwall production
at the Tunnel Ridge mine in May 2012.

ARLP's coal inventory totaled approximately 492,000 tons at the end of the
2013 Quarter, well below ending inventory of approximately 1.1 million tons
for the 2012 Quarter and in line with our expectations.

As anticipated, for the 2013 Quarter ARLP's total coal sales price of $55.12
per ton sold increased slightly compared to both the 2012 and Sequential
Quarters. Sequentially, Northern Appalachia pricing benefitted from a
favorable sales mix for contract shipments from the Tunnel Ridge mine.

Total Segment Adjusted EBITDA Expense per ton in the 2013 Quarter decreased
2.2% compared to both the 2012 and Sequential Quarters, primarily as a result
of reduced outside coal purchases and increased production. In the Illinois
Basin, Segment Adjusted EBITDA Expense per ton improved in the 2013 Quarter
primarily due to the previously discussed strong performance at the River
View, Warrior, Gibson North and Pattiki mines, offset in part by lower
recoveries at our Dotiki mine due to its recent transition to the No. 13 coal
seam. In Central Appalachia, Segment Adjusted EBITDA Expense per ton was
higher in the 2013 Quarter compared to the 2012 Quarter due to higher
inventory costs and difficult mining conditions at MC Mining during its
transition to the new Excel No. 4 mining area. Sequentially, Segment Adjusted
EBITDA expense per ton in Central Appalachia decreased 19.9% due the temporary
idling and related repair costs to resume production at the Pontiki mine in
late 2012. Compared to the 2012 Quarter, Northern Appalachia Segment Adjusted
EBITDA Expense per ton benefited from the ramp-up of longwall production at
the Tunnel Ridge mine, as well as from lower outside coal purchases.

Outlook

Commenting on ARLP’s outlook Mr. Craft continued, "Compared to this time last
year, favorable weather patterns and higher natural gas prices have
contributed to increased coal demand and slowly improving market fundamentals
for domestic steam coal. Total U.S. coal production has declined by
approximately 8.7% in 2013 versus 2012 levels, further improving the current
supply/demand picture. Current trends are encouraging for producers as utility
stockpiles are declining toward more historically normal levels. With our
solid first quarter results and strong contract book, we expect to perform at
the upper end of our initial 2013 guidance ranges."

ARLP continues to anticipate 2013 coal production and sales volumes in a range
of 38.1 to 39.1 million tons. ARLP added approximately 2.0 million tons of new
sales commitments during the 2013 Quarter and now has secured coal sales
commitments for approximately 38.6 million tons, 31.6 million tons, 23.9
million tons and 19.2 million tons in 2013, 2014, 2015 and 2016, respectively,
of which approximately 2.9 million tons in both 2014 and 2015 and 3.3 million
tons in 2016 remain open to market pricing.

Based on results to date and current estimates, ARLP is maintaining its
previously estimated ranges for 2013 revenues, excluding transportation
revenues, of $2.1 to $2.2 billion, EBITDA of $600.0 to $650.0 million, and net
income of $300.0 to $350.0 million. (For a definition of EBITDA and related
reconciliations to comparable GAAP financial measures, please see the end of
this release.)

ARLP also continues to anticipate total capital expenditures during 2013 in a
range of $370.0 to $400.0 million, which includes expenditures for mine
expansion and infrastructure projects, maintenance capital, continued
development of the Gibson South mine, and reserve acquisitions and
construction of surface facilities related to the White Oak mine development
project. In addition, ARLP continues to expect to fund approximately $70.0 to
$90.0 million of its preferred equity investment commitment to White Oak.

A conference call regarding ARLP’s 2013 Quarter financial results is scheduled
for today at 10:00 a.m. Eastern. To participate in the conference call, dial
(866) 318-8612 and provide pass code 14461240. International callers should
dial (617) 399-5131 and provide the same pass code. Investors may also listen
to the call via the "investor information" section of ARLP’s website at
http://www.arlp.com.

An audio replay of the conference call will be available for approximately one
week. To access the audio replay, dial (888) 286-8010 and provide pass code
65143934. International callers should dial (617) 801-6888 and provide the
same pass code.

This announcement is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b), with 100% of the partnership’s distributions
to foreign investors attributable to income that is effectively connected with
a United States trade or business. Accordingly, ARLP’s distributions to
foreign investors are subject to federal income tax withholding at the highest
applicable tax rate.

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 third 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 eleven mining complexes in
Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP is also
constructing a new mine in southern Indiana and is purchasing and funding
development of reserves, constructing surface facilities and making equity
investments in a new mining complex in southern Illinois. In addition, ARLP
operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana.

News, unit prices and additional information about ARLP, including filings
with the Securities and Exchange Commission, are available at
http://www.arlp.com. For more information, contact the investor relations
department of ARLP at (918) 295-7674 or via e-mail at
investorrelations@arlp.com.

The statements and projections used throughout this release are based on
current expectations. These statements and projections are forward-looking,
and actual results may differ materially. These projections do not include the
potential impact of any mergers, acquisitions or other business combinations
that may occur after the date of this release. At the end of this release, we
have included more information regarding business risks that could affect our
results.

FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any
matters discussed in this press release are forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from projected results. These risks, uncertainties and
contingencies include, but are not limited to, the following: changes in
competition in coal markets and our ability to respond to such changes;
changes in coal prices, which could affect our operating results and cash
flows; risks associated with the expansion of our operations and properties;
legislation, regulations, and court decisions and interpretations thereof,
including those relating to the environment, mining, miner health and safety
and health care; deregulation of the electric utility industry or the effects
of any adverse change in the coal industry, electric utility industry, or
general economic conditions; dependence on significant customer contracts,
including renewing customer contracts upon expiration of existing contracts;
changing global economic conditions or in industries in which our customers
operate; liquidity constraints, including those resulting from any future
unavailability of financing; customer bankruptcies, cancellations or breaches
to existing contracts, or other failures to perform; customer delays, failure
to take coal under contracts or defaults in making payments; adjustments made
in price, volume or terms to existing coal supply agreements; fluctuations in
coal demand, prices and availability; our productivity levels and margins
earned on our coal sales; unexpected changes in raw material costs; unexpected
changes in the availability of skilled labor; our ability to maintain
satisfactory relations with our employees; any unanticipated increases in
labor costs, adverse changes in work rules, or unexpected cash payments or
projections associated with post-mine reclamation and workers′ compensation
claims; any unanticipated increases in transportation costs and risk of
transportation delays or interruptions; unexpected operational interruptions
due to geologic, permitting, labor, weather-related or other factors; risks
associated with major mine-related accidents, such as mine fires, or
interruptions; results of litigation, including claims not yet asserted;
difficulty maintaining our surety bonds for mine reclamation as well as
workers′ compensation and black lung benefits; difficulty in making accurate
assumptions and projections regarding pension, black lung benefits and other
post-retirement benefit liabilities; coal market's share of electricity
generation, including as a result of environmental concerns related to coal
mining and combustion and the cost and perceived benefits of other sources of
electricity, such as natural gas, nuclear energy and renewable fuels;
uncertainties in estimating and replacing our coal reserves; a loss or
reduction of benefits from certain tax deductions and credits; difficulty
obtaining commercial property insurance, and risks associated with our
participation (excluding any applicable deductible) in the commercial
insurance property program; and difficulty in making accurate assumptions and
projections regarding future revenues and costs associated with equity
investments in companies we do not control.

Additional information concerning these and other factors can be found in
ARLP’s public periodic filings with the Securities and Exchange Commission
("SEC"), including ARLP’s Annual Report on Form 10-K for the year ended
December 31, 2012, filed on March 1, 2013 with the SEC. Except as required by
applicable securities laws, ARLP does not intend to update its forward-looking
statements.

                                              
                                                
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA
(In thousands, except unit and per unit data)
(Unaudited)
                                                
                                               Three Months Ended

                                               March 31,
                                               2013             2012
                                                                 
Tons Sold                                        9,698            7,812
Tons Produced                                    9,819            8,512
                                                                 
SALES AND OPERATING REVENUES:
Coal sales                                     $ 534,509        $ 429,599
Transportation revenues                          6,934            6,585
Other sales and operating revenues               6,612            7,402       
Total revenues                                   548,055          443,586     
                                                                 
EXPENSES:
Operating expenses (excluding                    348,575          273,515
depreciation, depletion and amortization)
Transportation expenses                          6,934            6,585
Outside coal purchases                           602              14,181
General and administrative                       15,246           14,289
Depreciation, depletion and amortization         64,382           43,033      
Total operating expenses                         435,739          351,603     
                                                                 
INCOME FROM OPERATIONS                           112,316          91,983
                                                                 
Interest expense, net                            (6,618     )     (5,912     )
Interest income                                  134              93
Equity in loss of affiliates, net                (3,867     )     (3,778     )
Other income                                     274              215         
INCOME BEFORE INCOME TAXES                       102,239          82,601
INCOME TAX BENEFIT                               (698       )     (367       )
NET INCOME                                     $ 102,937        $ 82,968      
                                                                 
GENERAL PARTNERS’ INTEREST IN NET INCOME       $ 29,770         $ 25,587      
                                                                 
LIMITED PARTNERS’ INTEREST IN NET INCOME       $ 73,167         $ 57,381      
                                                                 
BASIC AND DILUTED NET INCOME PER LIMITED       $ 1.95           $ 1.54        
PARTNER UNIT
                                                                 
DISTRIBUTIONS PAID PER LIMITED PARTNER         $ 1.1075         $ 0.99        
UNIT
                                                                 
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER        36,919,002       36,826,980  
OF UNITS OUTSTANDING

                                                                
                                                                  
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except unit data)
(Unaudited)
                                                                  
ASSETS                                           March 31,       December 31,
                                                 2013            2012
CURRENT ASSETS:
Cash and cash equivalents                        $ 28,677        $ 28,283
Trade receivables                                  168,270         172,724
Other receivables                                  1,097           1,019
Due from affiliates                                157             658
Inventories                                        50,628          46,660
Advance royalties                                  11,492          11,492
Prepaid expenses and other assets                  14,874          20,476     
Total current assets                               275,195         281,312
                                                                  
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost             2,434,704       2,361,863
Less accumulated depreciation, depletion and       (886,497  )     (832,293  )
amortization
Total property, plant and equipment, net           1,548,207       1,529,570
                                                                  
OTHER ASSETS:
Advance royalties                                  24,955          23,267
Due from affiliate                                 4,862           3,084
Equity investments in affiliates                   115,525         88,513
Other long-term assets                             30,794          30,226     
Total other assets                                 176,136         145,090    
TOTAL ASSETS                                     $ 1,999,538     $ 1,955,972  
                                                                  
LIABILITIES AND PARTNERS' CAPITAL
                                                                  
CURRENT LIABILITIES:
Accounts payable                                 $ 97,282        $ 100,174
Due to affiliates                                  407             327
Accrued taxes other than income taxes              25,048          19,998
Accrued payroll and related expenses               39,038          38,501
Accrued interest                                   6,398           1,435
Workers’ compensation and pneumoconiosis           9,468           9,320
benefits
Current capital lease obligations                  1,069           1,000
Other current liabilities                          23,603          19,572
Current maturities, long-term debt                 18,000          18,000     
Total current liabilities                          220,313         208,327
                                                                  
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities       768,000         773,000
Pneumoconiosis benefits                            61,306          59,931
Accrued pension benefit                            31,457          31,078
Workers’ compensation                              70,347          68,786
Asset retirement obligations                       82,017          81,644
Long-term capital lease obligations                18,260          18,613
Other liabilities                                  9,211           9,147      
Total long-term liabilities                        1,040,598       1,042,199  
Total liabilities                                  1,260,911       1,250,526  
                                                                  
COMMITMENTS AND CONTINGENCIES
                                                                  
PARTNERS' CAPITAL:
Limited Partners - Common Unitholders
36,963,054 and 36,874,949 units outstanding,       1,051,624       1,020,823
respectively
General Partners' deficit                          (271,460  )     (273,113  )
Accumulated other comprehensive loss               (41,537   )     (42,264   )
Total Partners' Capital                            738,627         705,446    
TOTAL LIABILITIES AND PARTNERS' CAPITAL          $ 1,999,538     $ 1,955,972  

                                                  
                                                    
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                    
                                                   Three Months Ended

                                                   March 31,
                                                   2013           2012
                                                                   
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES        $ 199,478      $ 114,804   
                                                                   
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment:
Capital expenditures                                 (70,306  )     (105,339 )
Changes in accounts payable and accrued              (7,608   )     (6,664   )
liabilities
Proceeds from sale of property, plant and            9              15
equipment
Purchases of equity investment in affiliate          (29,700  )     (4,400   )
Payments to affiliate for acquisition and            (12,064  )     (18,000  )
development of coal reserves
Advances/loans to affiliate                          (1,643   )     (776     )
Other                                                -              268       
Net cash used in investing activities                (121,312 )     (134,896 )
                                                                   
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility           45,000         -
Payments under revolving credit facility             (50,000  )     -
Payments on capital lease obligations                (284     )     (171     )
Net settlement of employee withholding taxes         (3,015   )     (3,734   )
on vesting of Long-Term Incentive Plan
Cash contributions by General Partners               114            150
Distributions paid to Partners                       (69,587  )     (60,722  )
Net cash used in financing activities                (77,772  )     (64,477  )
                                                                   
NET CHANGE IN CASH AND CASH EQUIVALENTS              394            (84,569  )
                                                                   
CASH AND CASH EQUIVALENTS AT BEGINNING OF            28,283         273,528
PERIOD
                                                                   
CASH AND CASH EQUIVALENTS AT END OF PERIOD         $ 28,677       $ 188,959   
                                                                              
                                                                              

Reconciliation of GAAP "Net Income" to non-GAAP "EBITDA" and non-GAAP
"Distributable Cash Flow" (in thousands).

EBITDA is defined as net income before net interest expense, income taxes and
depreciation, depletion and amortization. EBITDA is used as a supplemental
financial measure by our management and by external users of our financial
statements such as investors, commercial banks, research analysts and others,
to assess:

  * the financial performance of our assets without regard to financing
    methods, capital structure or historical cost basis;
  * the ability of our assets to generate cash sufficient to pay interest
    costs and support our indebtedness;
  * our operating performance and return on investment as compared to those of
    other companies in the coal energy sector, without regard to financing or
    capital structures; and
  * the viability of acquisitions and capital expenditure projects and the
    overall rates of return on alternative investment opportunities.

Distributable cash flow ("DCF") is defined as EBITDA excluding equity in loss
of affiliates, interest expense (before capitalized interest), interest
income, income taxes and estimated maintenance capital expenditures. DCF is
used as a supplemental financial measure by our management and by external
users of our financial statements, such as investors, commercial banks,
research analysts and others, to assess:

  * the cash flows generated by our assets (prior to the establishment of any
    retained cash reserves by the general partner) to fund the cash
    distributions we expect to pay to unitholders;
  * our success in providing a cash return on investment and whether or not
    the Partnership is generating cash flow at a level that can sustain or
    support an increase in its quarterly distribution rates;
  * the yield of our units, which is a quantitative standard used through the
    investment community with respect to publicly-traded partnerships as the
    value of a unit is generally determined by a unit’s yield (which in turn
    is based on the amount of cash distributions the entity pays to a
    unitholder).

EBITDA and DCF should not be considered as alternatives to net income, income
from operations, cash flows from operating activities or any other measure of
financial performance presented in accordance with generally accepted
accounting principles. EBITDA and DCF are not intended to represent cash flow
and do not represent the measure of cash available for distribution. Our
method of computing EBITDA and DCF may not be the same method used to compute
similar measures reported by other companies, or EBITDA and DCF may be
computed differently by us in different contexts (i.e. public reporting versus
computation under financing agreements).

                                                                 
                                                                   
                       Three Months                Three Months
                       Ended                       Ended          Year Ended
                       March 31,                   December 31,
                                                                  December 31,
                       2013          2012          2012           2013E
                                                                  Midpoint
                                                                   
Net income             $ 102,937     $ 82,968      $  96,638      $ 325,000
Depreciation,
depletion and            64,382        43,033         63,199        275,000
amortization
Interest expense,        9,015         8,773          9,070         35,400
gross
Capitalized              (2,531  )     (2,954  )      (2,003  )     (11,000  )
interest
Income tax               (698    )     (367    )      (356    )     600       
(benefit) expense
EBITDA                   173,105       131,453        166,548       625,000
Equity in loss of        3,867         3,778          3,610         26,500
affiliates, net
Interest expense,        (9,015  )     (8,773  )      (9,070  )     (35,400  )
gross
Income tax benefit       698           367            356           (600     )
(expense)
Estimated
maintenance              (55,968 )     (46,816 )      (50,067 )     (220,020 )
capital
expenditures ^(1)
Distributable Cash     $ 112,687     $ 80,009      $  111,377     $ 395,480   
Flow
                                                                              

^(1) Our maintenance capital expenditures, as defined under the terms of our
partnership agreement, are those capital expenditures required to maintain,
over the long-term, the operating capacity of our capital assets. We estimate
maintenance capital expenditures on an annual basis based upon a five-year
planning horizon. For the 2013 planning horizon, average annual estimated
maintenance capital expenditures are assumed to be $5.70 per produced ton
compared to the estimated $5.50 per produced ton in 2012. Our actual
maintenance capital expenditures vary depending on various factors, including
maintenance schedules and timing of capital projects, among others. We
annually disclose our actual maintenance capital expenditures in our Form 10-K
filed with the Securities and Exchange Commission.

Reconciliation of GAAP "Operating Expenses" to non-GAAP "Segment Adjusted
EBITDA Expense per ton" and Reconciliation of non-GAAP "EBITDA" to "Segment
Adjusted EBITDA" (in thousand, except per ton data).

Segment Adjusted EBITDA Expense per ton includes operating expenses, outside
coal purchases and other income divided by tons sold. Transportation expenses
are excluded as these expenses are passed through to our customers and,
consequently, we do not realize any margin on transportation revenues. Segment
Adjusted EBITDA Expense is used as a supplemental financial measure by our
management to assess the operating performance of our segments. Segment
Adjusted EBITDA Expense is a key component of EBITDA in addition to coal sales
and other sales and operating revenues. The exclusion of corporate general and
administrative expenses from Segment Adjusted EBITDA Expense allows management
to focus solely on the evaluation of segment operating performance as it
primarily relates to our operating expenses. Outside coal purchases are
included in Segment Adjusted EBITDA Expense because tons sold and coal sales
include sales from outside coal purchases.

                                                                 
                                      Three Months Ended          Three Months
                                                                  Ended
                                      March 31,                   December 31,
                                      2013          2012          2012
                                                                   
Operating expense                     $ 348,575     $ 273,515     $  356,485
Outside coal purchases                  602           14,181         3,848
Other (income) loss                     (274    )     (215    )      (262    )
Segment Adjusted EBITDA Expense       $ 348,903     $ 287,481     $  360,071
Divided by tons sold                    9,698         7,812          9,787    
Segment Adjusted EBITDA Expense       $ 35.98       $ 36.80       $  36.79    
per ton
                                                                   

Segment Adjusted EBITDA is defined as net income before net interest expense,
income taxes, depreciation, depletion and amortization and general and
administrative expenses.

                                                                 
                                          Three Months Ended      Three Months
                                                                  Ended
                                          March 31,               December 31,
                                          2013        2012        2012
                                                                   
EBITDA (See reconciliation to GAAP        $ 173,105   $ 131,453   $   166,548
above)
General and administrative                  15,246      14,289        14,798
Segment Adjusted EBITDA                   $ 188,351   $ 145,742   $   181,346
                                                                   

Contact:

Alliance Resource Partners, L.P.
Brian L. Cantrell, 918-295-7673
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