Alliance Resource Partners, L.P. Reports Record Quarterly Operating and Financial Results; Increases Quarterly Unitholder

  Alliance Resource Partners, L.P. Reports Record Quarterly Operating and
  Financial Results; Increases Quarterly Unitholder Distribution by 2.0% to
  $1.1525 Per Unit; and Increases 2013 Guidance

Business Wire

TULSA, Okla. -- July 26, 2013

Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported strong
financial and operating results, posting new records for coal sales and
production volumes, revenues and EBITDA for the quarter ended June 30, 2013
(the "2013 Quarter"). Led by higher coal sales volumes in the 2013 Quarter,
revenues climbed to $553.6 million, an increase of 4.5% compared to the
quarter ended June 30, 2012 (the "2012 Quarter"). Record revenues and coal
sales volumes contributed to record EBITDA of $178.4 million for the 2013
Quarter, an increase of 14.7% compared to the 2012 Quarter. Net income was
also higher in the 2013 Quarter, increasing 9.0% to $104.1 million, or $1.96
per basic and diluted unit. (For a definition of EBITDA and related
reconciliation to the most comparable GAAP financial measure, please see the
end of this release.)

ARLP also announced that the Board of Directors of its managing general
partner (the "Board") increased the cash distribution to unitholders for the
2013 Quarter to $1.1525 per unit (an annualized rate of $4.61 per unit),
payable on August 14, 2013 to all unitholders of record as of the close of
trading on August 7, 2013. The announced distribution represents an 8.5%
increase over the cash distribution of $1.0625 per unit for the 2012 Quarter
and a 2.0% increase over the cash distribution of $1.13 per unit for the 2013
first quarter (the "Sequential Quarter").

"ARLP continued its strong operating and financial performance in the 2013
Quarter – posting new benchmarks for coal sales and production volumes,
revenues and EBITDA," said Joseph W. Craft III, President and Chief Executive
Officer. "The ability to deliver these exceptional results, especially in such
challenging market conditions, speaks to the soundness of ARLP's strategy, the
quality of our assets and the hard work and dedication of our people. These
attributes keep ARLP well positioned for the future and gave the Board the
confidence to increase distributions to our unitholders for the twenty-first
consecutive quarter."

Consolidated Financial Results

Three Months Ended June 30, 2013 Compared to Three Months Ended June 30, 2012

During the 2013 Quarter, increased volumes at the Tunnel Ridge longwall
operation, which began production in May 2012, and strong performance at the
Gibson North, River View and Onton mines, drove coal sales volumes up 13.3% to
a record 9.8 million tons and production volumes higher by 23.6% to a record
10.1 million tons, both as compared to the 2012 Quarter. As mentioned above,
volume growth led to record revenues and EBITDA and increased net income in
the 2013 Quarter, more than offsetting lower average coal sales prices that
resulted primarily from ARLP electing not to participate in the weak
metallurgical export markets.

Record coal sales and production volumes also led to increased sales-related
expenses, materials and supplies expenses, labor-related expenses and
maintenance costs, which combined to push operating expenses in the 2013
Quarter higher by 3.8% to $347.4 million, compared to the 2012 Quarter. Coal
brokerage and purchasing activity declined in the 2013 Quarter, resulting in a
$15.4 million reduction in outside coal purchases. As discussed below, Segment
Adjusted EBITDA expense per ton declined to $35.44 in the 2013 Quarter, an
improvement of 11.9% compared to the 2012 Quarter.

General and administrative expenses increased $0.5 million to $16.6 million in
the 2013 Quarter, primarily as a result of higher incentive compensation
expenses. Depreciation, depletion and amortization increased $16.1 million to
$68.2 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 $5.7 million for the 2013 Quarter and $4.4
million for the 2012 Quarter, primarily due to the allocation of losses
related to White Oak’s mine development activities.

Six Months Ended June 30, 2013 Compared to Six Months Ended June 30, 2012

For the six months ended June 30, 2013 (the "2013 Period"), increases at the
River View, Gibson North and Tunnel Ridge mines and production from the Onton
mine, which we acquired in April 2012, led to record production and sales
volumes as tons produced climbed 19.4% and tons sold increased 18.5%, compared
to the six months ended June 30, 2012 (the "2012 Period"). Higher coal sales
volumes drove 2013 Period revenues to a record $1.1 billion, an increase of
13.2% compared to the 2012 Period. The increase in coal sales volumes was
partially offset by lower average coal sales prices, which decreased to $55.14
per ton sold in the 2013 Period compared to $57.19 per ton sold for the 2012
Period, primarily due to the previously mentioned lack of coal sales into the
metallurgical export markets in the 2013 Period. For the 2013 Period, EBITDA
increased 22.5% to a record $351.5 million and net income rose 16.0% to $207.0
million, or $3.92 of net income per basic and diluted limited partner unit.

                                                              
Regional Results and Analysis
                                                                    
(in millions,       2013 Second   2012        % Change    2013
except per ton                    Second      Quarter /   First     % Change
data)               Quarter                   Quarter     Quarter   Sequential
                                  Quarter
                                                                    
Illinois Basin
Tons sold               7.547        6.977    8.2    %      7.706   (2.1   )%
Coal sales price    $   52.65     $  53.22    (1.1   )%   $ 51.95   1.3    %
per ton (1)
Segment Adjusted
EBITDA Expense      $   30.96     $  32.81    (5.6   )%   $ 30.38   1.9    %
per ton (2)
Segment Adjusted    $   164.6     $  142.7    15.3   %    $ 167.2   (1.6   )%
EBITDA (2)
                                                                    
Central
Appalachia
Tons sold               0.498        0.493    1.0    %      0.550   (9.5   )%
Coal sales price    $   82.70     $  80.73    2.4    %    $ 81.46   1.5    %
per ton (1)
Segment Adjusted
EBITDA Expense      $   62.53     $  62.10    0.7    %    $ 64.19   (2.6   )%
per ton (2)
Segment Adjusted    $   10.2      $  9.2      10.9   %    $ 9.7     5.2    %
EBITDA (2)
                                                                    
Northern
Appalachia
Tons sold               1.760        1.063    65.6   %      1.442   22.1   %
Coal sales price    $   57.97     $  85.35    (32.1  )%   $ 61.99   (6.5   )%
per ton (1)
Segment Adjusted
EBITDA Expense      $   43.26     $  71.92    (39.8  )%   $ 51.19   (15.5  )%
per ton (2)
Segment Adjusted    $   26.7      $  21.2     25.9   %    $ 16.5    61.8   %
EBITDA (2)
                                                                    
Total (3)
Tons sold               9.817        8.661    13.3   %      9.698   1.2    %
Coal sales price    $   55.17     $  59.17    (6.8   )%   $ 55.12   0.1    %
per ton (1)
Segment Adjusted
EBITDA Expense      $   35.44     $  40.23    (11.9  )%   $ 35.98   (1.5   )%
per ton (2)
Segment Adjusted    $   195.0     $  171.6    13.6   %    $ 188.4   3.5    %
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.

Reflecting higher Illinois Basin and Northern Appalachia coal sales volumes,
ARLP sold a record 9.8 million tons of coal in the 2013 Quarter, an increase
of 13.3% 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 at the River View, Gibson North and Onton mines. In
Central Appalachia, coal sales volumes declined sequentially as a result of
timing differences on contract shipments in the 2013 Quarter compared to the
Sequential Quarter. The continued ramp-up of longwall production at the Tunnel
Ridge mine drove Northern Appalachian coal sales volumes higher in the 2013
Quarter compared to both 2012 and Sequential Quarters.

ARLP's coal inventory of approximately 808,000 tons at the end of the 2013
Quarter was comparable to ending inventory of approximately 822,000 tons for
the 2012 Quarter.

As anticipated, compared to the 2012 Quarter, ARLP's total coal sales price
per ton sold was lower due to the lack of metallurgical coal sales during the
2013 Quarter. Sequentially, higher prices in the 2013 Quarter for Illinois
Basin and Central Appalachian sales volumes essentially offset lower prices in
Northern Appalachia, due to the timing and allocation of contract shipments in
the region.

Total Segment Adjusted EBITDA Expense per ton in the 2013 Quarter decreased
11.9% and 1.5% compared to the 2012 and Sequential Quarters, respectively,
primarily as a result of increased production and sales volumes. Compared to
the 2012 Quarter, total Segment Adjusted EBITDA Expense per ton in the 2013
Quarter also benefited from lower outside coal purchases. In the Illinois
Basin, Segment Adjusted EBITDA Expense per ton improved in the 2013 Quarter
compared to the 2012 Quarter primarily due to the previously discussed strong
performance at the River View, Gibson North and Onton mines, offset in part by
lower recoveries at the Dotiki mine reflecting its continued transition to the
No. 13 coal seam. Sequentially, Segment Adjusted EBITDA Expense per ton for
the Illinois Basin was higher primarily due to the seasonal impact of miners
vacation, increased roof support expense at Dotiki due to poor mining
conditions and higher maintenance costs at nearly all our Illinois Basin
mines. In Central Appalachia, Segment Adjusted EBITDA Expense per ton improved
in the 2013 Quarter compared to the Sequential Quarter, primarily due to lower
inventory costs, reduced repair costs at the Pontiki mine and increased
production in the new Excel No. 4 mining area at the MC Mining operation.
Compared to both the 2012 and Sequential Quarters, Segment Adjusted EBITDA
Expense per ton in Northern Appalachia benefited from the continued ramp-up of
longwall production at the Tunnel Ridge mine and improved recoveries at our
Mettiki mine, partially offset by higher employee benefit costs at Mettiki. In
addition, compared to the 2012 Quarter, Northern Appalachia benefited from
lower outside coal purchases and reduced coal processing expenses at the
Mettiki mine due to the lack of coal sales into the metallurgical export
markets during the 2013 Quarter.

Outlook

Commenting on ARLP’s outlook Mr. Craft continued, "ARLP continued to make
progress on several fronts during the 2013 Quarter. Production at Tunnel Ridge
increased nearly 54% compared to the Sequential Quarter and remains on track
to reach an annualized run rate of 6.0 million tons by year end. The strong
performance of our Illinois Basin operations through the first half of 2013 is
expected to continue over the balance of the year. In addition, we further
enhanced our already strong contract portfolio during the 2013 Quarter,
securing new coal sales commitments for delivery of approximately 2.6 million
tons through 2015. Our performance to date and expectations for the remainder
of 2013 allow us to increase full year guidance and give us confidence that
ARLP will deliver its thirteenth consecutive year of record results."

ARLP is now anticipating 2013 coal production in a range of 39.3 to 39.6
million tons and sales volumes in a range of 38.6 to 39.6 million tons.
Assuming customer deliveries occur as planned, ARLP is essentially fully
priced and committed for its anticipated 2013 coal sales volumes and has
secured commitments for approximately 31.9 million tons, 25.7 million tons and
19.1 million tons in 2014, 2015 and 2016, respectively, of which approximately
1.0 million tons in 2014, 2.5 million tons in 2015 and 3.3 million tons in
2016 remain open to market pricing.

ARLP is increasing its estimated ranges for 2013 revenues, excluding
transportation revenues, to $2.165 to $2.225 billion, EBITDA to $675.0 to
$695.0 million, and net income to $375.0 to $395.0 million. (For a definition
of EBITDA and related reconciliation to the most comparable GAAP financial
measure, please see the end of this release.)

ARLP 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 has funded $47.5 million of preferred equity investments to White Oak in
2013 and, based on currently anticipated equity capital contributions by its
partners, does not expect to make further equity investments in White Oak this
year.

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
(800) 706-7745 and provide pass code 27235935. International callers should
dial (617) 614-3472 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
73983669. 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                Six Months Ended

                 June 30,                          June 30,
                 2013            2012             2013            2012
                                                                    
Tons Sold          9,817            8,661            19,515           16,473
Tons Produced      10,120           8,185            19,939           16,697
                                                                    
SALES AND
OPERATING
REVENUES:
Coal sales       $ 541,574        $ 512,505        $ 1,076,083      $ 942,104
Transportation     4,971            5,441            11,905           12,026
revenues
Other sales
and operating     7,026          11,918         13,638         19,320     
revenues
Total revenues    553,571        529,864        1,101,626      973,450    
                                                                    
EXPENSES:
Operating
expenses
(excluding         347,437          334,647          696,012          608,162
depreciation,
depletion and
amortization)
Transportation     4,971            5,441            11,905           12,026
expenses
Outside coal       790              16,154           1,392            30,335
purchases
General and        16,597           16,052           31,843           30,341
administrative
Depreciation,
depletion and     68,207         52,109         132,589        95,142     
amortization
Total
operating         438,002        424,403        873,741        776,006    
expenses
                                                                    
INCOME FROM        115,569          105,461          227,885          197,444
OPERATIONS
                                                                    
Interest           (6,218     )     (8,268     )     (12,836    )     (14,180    )
expense, net
Interest           178              51               312              144
income
Equity in loss
of affiliates,     (5,699     )     (4,430     )     (9,566     )     (8,208     )
net
Other income      353            2,384          627            2,599      
INCOME BEFORE      104,183          95,198           206,422          177,799
INCOME TAXES
                                                                    
INCOME TAX
EXPENSE           109            (257       )    (589       )    (624       )
(BENEFIT)
                                                                    
NET INCOME       $ 104,074       $ 95,455        $ 207,011       $ 178,423    
                                                                    
GENERAL
PARTNERS’        $ 30,592        $ 27,165        $ 60,362        $ 52,752     
INTEREST IN
NET INCOME
                                                                    
LIMITED
PARTNERS’        $ 73,482        $ 68,290        $ 146,649       $ 125,671    
INTEREST IN
NET INCOME
                                                                    
BASIC AND
DILUTED NET
INCOME PER       $ 1.96          $ 1.83          $ 3.92          $ 3.36       
LIMITED
PARTNER UNIT
                                                                    
DISTRIBUTIONS
PAID PER         $ 1.13          $ 1.025         $ 2.2375        $ 2.015      
LIMITED
PARTNER UNIT
                                                                    
WEIGHTED
AVERAGE NUMBER
OF UNITS          36,963,054     36,874,949     36,941,149     36,850,965 
OUTSTANDING –
BASIC AND
DILUTED

                                                              
                                                                 
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
                                                                 
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except unit data)

(Unaudited)
                                                                 
ASSETS                                           June 30,        December 31,
                                                 2013            2012
CURRENT ASSETS:
Cash and cash equivalents                        $ 8,794         $ 28,283
Trade receivables                                  164,190         172,724
Other receivables                                  1,077           1,019
Due from affiliates                                642             658
Inventories                                        63,886          46,660
Advance royalties                                  11,872          11,492
Prepaid expenses and other assets                 9,837         20,476    
Total current assets                               260,298         281,312
                                                                 
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost             2,511,748       2,361,863
Less accumulated depreciation, depletion and      (938,097  )    (832,293  )
amortization
Total property, plant and equipment, net           1,573,651       1,529,570
                                                                 
OTHER ASSETS:
Advance royalties                                  21,944          23,267
Equity investments in affiliates                   128,884         88,513
Due from affiliate                                 5,927           3,084
Other long-term assets                            29,359        30,226    
Total other assets                                186,114       145,090   
TOTAL ASSETS                                     $ 2,020,063    $ 1,955,972 
                                                                 
LIABILITIES AND PARTNERS' CAPITAL
                                                                 
CURRENT LIABILITIES:
Accounts payable                                 $ 95,509        $ 100,174
Due to affiliates                                  386             327
Accrued taxes other than income taxes              23,848          19,998
Accrued payroll and related expenses               44,000          38,501
Accrued interest                                   1,455           1,435
Workers’ compensation and pneumoconiosis           9,478           9,320
benefits
Current capital lease obligations                  1,141           1,000
Other current liabilities                          25,441          19,572
Current maturities, long-term debt                24,250        18,000    
Total current liabilities                          225,508         208,327
                                                                 
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities       753,750         773,000
Pneumoconiosis benefits                            62,625          59,931
Accrued pension benefit                            31,329          31,078
Workers’ compensation                              72,213          68,786
Asset retirement obligations                       75,029          81,644
Long-term capital lease obligations                17,888          18,613
Other liabilities                                 7,345         9,147     
Total long-term liabilities                       1,020,179     1,042,199 
Total liabilities                                 1,245,687     1,250,526 
                                                                 
COMMITMENTS AND CONTINGENCIES
                                                                 
PARTNERS' CAPITAL:
Limited Partners - Common Unitholders
36,963,054 and 36,874,949 units outstanding,       1,085,185       1,020,823
respectively
General Partners' deficit                          (269,998  )     (273,113  )
Accumulated other comprehensive loss              (40,811   )    (42,264   )
Total Partners' Capital                           774,376       705,446   
TOTAL LIABILITIES AND PARTNERS' CAPITAL          $ 2,020,063    $ 1,955,972 

                                                 
                                                   
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
                                                   
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)
                                                   
                                                   Six Months Ended
                                                   June 30,
                                                   2013          2012
                                                                  
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES        $ 373,823     $ 255,471  
                                                                  
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment:
Capital expenditures                                 (163,030 )     (238,330 )
Changes in accounts payable and accrued              (4,055   )     10,759
liabilities
Proceeds from sale of property, plant and            9              19
equipment
Purchases of equity investment in affiliate          (47,500  )     (30,600  )
Payment for acquisition of business                  -              (100,000 )
Payments to affiliate for acquisition and            (18,860  )     (34,601  )
development of coal reserves
Advances/loans to affiliate                          (2,531   )     (2,229   )
Payments from affiliate                              -              4,229
Other                                               -            429      
Net cash used in investing activities               (235,967 )    (390,324 )
                                                                  
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under term loan                           -              250,000
Borrowings under revolving credit facility           77,000         55,000
Payments under revolving credit facility             (90,000  )     -
Payment on term loan                                 -              (300,000 )
Payments on capital lease obligations                (584     )     (405     )
Payment of debt issuance costs                       -              (4,272   )
Net settlement of employee withholding taxes on      (3,015   )     (3,734   )
vesting of Long-Term Incentive Plan
Cash contributions by General Partners               114            150
Distributions paid to Partners                      (140,860 )    (124,050 )
Net cash used in financing activities               (157,345 )    (127,311 )
                                                                  
NET CHANGE IN CASH AND CASH EQUIVALENTS              (19,489  )     (262,164 )
                                                                  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     28,283         273,528
                                                                 
CASH AND CASH EQUIVALENTS AT END OF PERIOD         $ 8,794       $ 11,364   
                                                                             
                                                                             

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
                Three Months Ended          Six Months Ended             Months        Year Ended
                                                                         Ended
                June 30,                    June 30,                                   December 31,
                                                                         March 31,
                2013         2012          2013          2012          2013          2013E
                                                                                       Midpoint
                                                                                       
Net income      $ 104,074     $ 95,455      $ 207,011      $ 178,423     $ 102,937     $ 385,000
Depreciation,
depletion and     68,207        52,109        132,589        95,142        64,382        272,000
amortization
Interest
expense,          8,913         9,995         17,928         18,768        9,015         32,500
gross
Capitalized       (2,873  )     (1,778  )     (5,404   )     (4,732  )     (2,531  )     (5,000   )
interest
Income tax
expense          109         (257    )    (589     )    (624    )    (698    )    500      
(benefit)
EBITDA            178,430       155,524       351,535        286,977       173,105       685,000
Equity in
loss of           5,699         4,430         9,566          8,208         3,867         20,000
affiliates,
net
Interest
expense,          (8,913  )     (9,995  )     (17,928  )     (18,768 )     (9,015  )     (32,500  )
gross
Income tax
(expense)         (109    )     257           589            624           698           (500     )
benefit
Estimated
maintenance
capital          (57,684 )    (45,018 )    (113,652 )    (91,834 )    (55,968 )    (225,000 )
expenditures
^(1)
Distributable   $ 117,423    $ 105,198    $ 230,110     $ 185,207    $ 112,687    $ 447,000  
Cash 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 thousands, 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
                                      June 30,
                                                                  March 31,
                                      2013         2012          2013
                                                                  
Operating expense                     $ 347,437     $ 334,647     $  348,575
Outside coal purchases                  790           16,154         602
Other (income) loss                    (353    )    (2,384  )     (274    )
Segment Adjusted EBITDA Expense       $ 347,874     $ 348,417     $  348,903
Divided by tons sold                   9,817       8,661        9,698   
Segment Adjusted EBITDA Expense per   $ 35.44      $ 40.23      $  35.98   
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
                                          June 30,
                                                                  March 31,
                                          2013       2012        2013
                                                                  
EBITDA (See reconciliation to GAAP        $ 178,430   $ 155,524   $   173,105
above)
General and administrative                 16,597     16,052       15,246
Segment Adjusted EBITDA                   $ 195,027   $ 171,576   $   188,351

Contact:

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