Alliance Resource Partners, L.P. Reports Record Annual Operating and Financial Results As Net Income Increases 17.3% for 2013;

  Alliance Resource Partners, L.P. Reports Record Annual Operating and
  Financial Results As Net Income Increases 17.3% for 2013; Increases
  Quarterly Unitholder Distribution 1.9% to $1.1975 Per Unit; and Provides
  Guidance for 2014

Business Wire

TULSA, Okla. -- January 28, 2014

Alliance Resource Partners, L.P. (NASDAQ: ARLP) today reported record
operating and financial results, as it set new annual benchmarks for coal
sales and production volumes, revenues, net income and EBITDA for the year
ended December 31, 2013 (the "2013 Year"). On the strength of record coal
sales volumes, revenues climbed to a record $2.2 billion for the 2013 Year, an
increase of 8.4% compared to the year ended December 31, 2012 (the "2012
Year"). Higher revenues contributed to record EBITDA of $685.9 million for the
2013 Year, an increase of 18.0% compared to the 2012 Year. Net income was also
higher in the 2013 Year, increasing 17.3% to a record $393.5 million, or $7.26
per basic and diluted unit. (For a discussion of EBITDA and related
reconciliations to comparable GAAP financial measures, please see the end of
this release.)

For the quarter ended December 31, 2013 (the "2013 Quarter"), revenues
increased 3.1% to a record $566.7 million, compared to the quarter ended
December 31, 2012 (the "2012 Quarter"). Net income and EBITDA were also higher
in the 2013 Quarter, as net income increased 2.7% to  $99.3 million, or $1.85
per basic and diluted limited partner unit, and EBITDA increased 5.6% to
$175.9 million.

ARLP also announced that the Board of Directors of its managing general
partner increased the cash distribution to unitholders for the 2013 Quarter to
$1.1975 per unit (an annualized rate of $4.79 per unit), payable on February
14, 2014 to all unitholders of record as of the close of trading on February
7, 2014. The announced distribution represents an 8.1% increase over the cash
distribution of $1.1075 per unit for the 2012 Quarter and a 1.9% increase over
the cash distribution of $1.175 per unit for the 2013 third quarter (the
"Sequential Quarter").

"For the thirteenth consecutive year, ARLP posted record results and set new
annual benchmarks in 2013 for our major operating and financial measures,"
said Joseph W. Craft III, President and Chief Executive Officer. "These
superior results reflect the exceptional capabilities and execution of our
employees and I want to thank the entire Alliance team for their individual
contributions to our success. Looking ahead, market dynamics continue to favor
the Illinois Basin and Northern Appalachia coal markets and we remain
encouraged that our strategy of expanding ARLP's presence as a low-cost
operator in these regions will create growth opportunities in the future.
Based on this outlook and our record setting results, ARLP's Board of
Directors elected to increase quarterly unitholder distributions for the
twenty-third consecutive quarter."

Consolidated Financial Results

Twelve Months Ended December 31, 2013 Compared to Twelve Months Ended December
31, 2012

Strong performance from ARLP's Illinois Basin operations and increased volumes
from the Tunnel Ridge longwall operation during the 2013 Year drove coal sales
volumes up 10.4% to a record 38.8 million tons and production volumes higher
by 11.4% to a record 38.8 million tons, both as compared to the 2012 Year. As
anticipated, total average coal sales prices declined 2.2% in the 2013 Year to
$55.04 per ton sold due to ARLP's reduced participation in the weak
metallurgical coal markets. Volume growth more than offset lower average coal
sales prices, however, leading to record revenues, EBITDA and net income in
the 2013 Year.

ARLP’s increased coal sales and production volumes in the 2013 Year also
contributed to higher sales-related expenses, materials and supplies expenses,
labor-related expenses and maintenance costs, which combined to push operating
expenses up 7.3% to $1.4 billion. These increases were partially offset by
lower workers' compensation expense due to favorable reserve adjustments. On a
per ton basis, Segment Adjusted EBITDA Expense declined by 5.4% in the 2013
Year compared to the 2012 Year primarily as a result of increased coal
volumes, reduced outside coal purchases and lower workers' compensation
expense. (For a definition of Segment Adjusted EBITDA and Segment Adjusted
EBITDA Expense per ton and related reconciliations to comparable GAAP
financial measures, please see the end of this release).

Depreciation, depletion and amortization increased $46.8 million to $264.9
million in the 2013 Year, compared to the 2012 Year, primarily as a result of
the increased production volumes mentioned above, as well as capital
expenditures related to production expansion and infrastructure improvements
at various other operations.

As anticipated, ARLP’s financial results for both the 2013 and 2012 Years 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, ARLP currently reflects substantially all of
White Oak’s income and losses in its financial results. Reported net equity in
loss of affiliates of $24.4 million for the 2013 Year and $14.7 million for
the 2012 Year was primarily due to the allocation of losses related to White
Oak’s mine development activities.

Comparative results between the 2012 and 2013 Years were also impacted by a
non-cash asset impairment charge of $19.0 million at the Pontiki mining
complex in 2012. The Pontiki mine ceased production at the end of November
2013 after more than 36 years of operation.

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

For the 2013 Quarter, record revenues reflect record coal sales of $542.9
million and higher other sales and operating revenues, due to increased
product sales at Matrix and greater throughput service revenues received from
White Oak. Reflecting the factors discussed above, Segment Adjusted EBITDA
Expense per ton declined to $36.25 per ton in the 2013 Quarter, an improvement
over both the 2012 and Sequential Quarter.

General and administrative expenses increased $2.2 million to $17.0 million,
primarily as a result of higher compensation-related expenses and other
professional services. Depreciation, depletion and amortization increased $3.0
million to $66.2 million in the 2013 Quarter compared to the 2012 Quarter,
primarily as a result of our production growth and investments in
infrastructure and equipment at various operations.

Regional Results and Analysis

(in             2013          2012         % Change     2013
millions,     Fourth      Fourth     Quarter    Third     % Change
except per                                 /                        Sequential
ton data)       Quarter       Quarter      Quarter      Quarter
                                                                    
Illinois
Basin
Tons sold          7.789         7.885     (1.2  )%       7.598     2.5    %
Coal sales
price per       $  52.82      $  52.66     0.3   %      $ 52.13     1.3    %
ton (1)
Segment
Adjusted
EBITDA          $  31.31      $  30.76     1.8   %      $ 31.58     (0.9   )%
Expense per
ton (2)
Segment
Adjusted        $  168.8      $  173.1     (2.5  )%     $ 156.8     7.7    %
EBITDA (2)
                                                                    
Central
Appalachia
Tons sold          0.521         0.426     22.3  %        0.490     6.3    %
Coal sales
price per       $  81.85      $  80.38     1.8   %      $ 81.49     0.4    %
ton (1)
Segment
Adjusted
EBITDA          $  54.79      $  80.18     (31.7 )%     $ 61.89     (11.5  )%
Expense per
ton (2)
Segment
Adjusted        $  14.3       $  0.1       N/M(4)       $ 9.8       45.9   %
EBITDA (2)
                                                                    
Northern
Appalachia
Tons sold          1.506         1.431     5.2   %        1.405     7.2    %
Coal sales
price per       $  58.98      $  59.45     (0.8  )%     $ 57.97     1.7    %
ton (1)
Segment
Adjusted
EBITDA          $  48.67      $  52.58     (7.4  )%     $ 49.41     (1.5   )%
Expense per
ton (2)
Segment
Adjusted        $  16.5       $  10.6      55.7  %      $ 12.9      27.9   %
EBITDA (2)
                                                                    
Total
Tons sold          9.816         9.787     0.3   %        9.504     3.3    %
Coal sales
price per       $  55.31      $  55.00     0.6   %      $ 54.55     1.4    %
ton (1)
Segment
Adjusted
EBITDA          $  36.25      $  36.79     (1.5  )%     $ 36.44     (0.5   )%
Expense per
ton (2),
(3)
Segment
Adjusted        $  192.8      $  181.3     6.3   %      $ 173.4     11.2   %
EBITDA (2),
(3)
                                                                           

(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 slightly higher Central Appalachian and Northern Appalachian sales
volumes, ARLP sold 9.8 million tons of coal in the 2013 Quarter, which was
comparable to the 2012 Quarter. Coal sales volumes from the Illinois Basin in
the 2013 Quarter decreased slightly compared to the 2012 Quarter, primarily
due to the River View mine substantially depleting its coal inventory prior to
the end of the Sequential Quarter. Coal sales volumes in the Illinois Basin
increased compared to the Sequential Quarter, primarily as a result of strong
sales performance from the Dotiki, Gibson North and Onton mines. In Central
Appalachia, increased coal sales volumes compared to the 2012 Quarter reflect
the temporary idling of the Pontiki mining complex during the 2012 Quarter and
improved mining conditions at our MC Mining operation in the 2013 Quarter.
Compared to the Sequential Quarter, improved coal recoveries and additional
unit shifts at MC Mining contributed to higher coal sales volumes. Coal sales
volumes in Northern Appalachia increased from the 2012 and Sequential Quarters
reflecting improved recoveries at the Mettiki mine offset in part by a
longwall move at Tunnel Ridge in the 2013 Quarter. As anticipated, total coal
inventory fell significantly during the 2013 Quarter, decreasing by
approximately 655,000 tons to approximately 343,000 tons at the end of 2013.

Segment Adjusted EBITDA Expense per ton in Central Appalachia improved
compared to the 2012 Quarter primarily as a result of lower repair costs.
Compared to the Sequential Quarter, Segment Adjusted EBITDA Expense per ton in
Central Appalachia benefited from increased lower cost production at MC Mining
following the shutdown of production operations at the Pontiki mine in late
November 2013. Compared to the 2012 Quarter, Segment Adjusted EBITDA Expense
per ton in Northern Appalachia benefitted from improved recoveries and lower
contract mining expense and outside coal purchases at the Mettiki mine,
partially offset by higher employee benefits costs, particularly medical
expenses. Northern Appalachia was also negatively impacted in the 2013 Quarter
due to a longwall move at Tunnel Ridge. (For a definition of Segment Adjusted
EBITDA and Segment Adjusted EBITDA Expense per ton and related reconciliations
to comparable GAAP financial measures, please see the end of this release).

Outlook

Commenting on ARLP’s outlook, Mr. Craft said, "ARLP enters 2014 with an
expectation of posting another year of record results. Coal sales and
production volumes are expected to increase year-over-year, despite closing
the Pontiki mine which produced approximately 700,000 tons in 2013. We remain
confident Tunnel Ridge will increase coal volumes in 2014 by approximately 1.8
million tons and Gibson South is anticipated to begin initial production in
the third quarter, adding approximately 400,000 tons this year. From a
marketing perspective, ARLP's sales portfolio remains strong, with
approximately 87.0% of our anticipated 2014 coal sales volumes priced and
committed. As discussed below, we anticipate our 2014 EBITDA margins to be
comparable to 2013."

For 2014, ARLP is providing the following full year guidance for its operating
and investment activities:

Capital Expenditures and Investments – Total 2014 capital expenditures for
ARLP’s operating activities are currently estimated in a range of $320.0 to
$350.0 million, including maintenance capital expenditures. Maintenance
capital expenditures anticipated during 2014 reflect equipment rebuilds and
replacements, mine extension projects at various mines and infrastructure
projects at several operations. Based on anticipated maintenance capital
requirements in 2014 and considering its current five-year planning horizon,
ARLP is currently estimating total average maintenance capital expenditures of
approximately $5.90 per ton produced for long-term distribution planning
purposes. Total capital also includes approximately $65.0 to $75.0 million for
production expansion projects related to completion of development at the
Gibson South mine and reserve acquisitions related to ARLP's participation in
the development of the White Oak Mine No. 1.

During 2014, ARLP also currently expects to fund approximately $80.0 to $95.0
million of its preferred equity investment commitment to White Oak. ARLP
continues to anticipate its investments in White Oak will become meaningfully
accretive to its financial results in the 2015 time frame following the
commencement of longwall production from the White Oak Mine No. 1 in the
second half of 2014.

As a result of ARLP’s capital investment projects and anticipated production
increases in 2014, depreciation, depletion and amortization expense is
currently expected to increase to approximately $287.0 million, compared to
$264.9 million in 2013.

Coal Production and Sales Volumes – Coal volumes are currently expected to
increase in 2014 to a range of 39.25 to 40.75 million tons produced and sold.
ARLP has approximately 34.9 million tons contractually committed and priced
for 2014 and has also secured coal sales and price commitments for
approximately 27.0 million tons, 21.2 million tons and 9.4 million tons in
2015, 2016 and 2017, respectively.

Revenue, EBITDA and Net Income Estimates – Driven primarily by anticipated
increases in coal sales volumes, ARLP is currently expecting 2014 revenues to
increase slightly over 2013 revenues to a range of $2.2 to $2.3 billion,
excluding transportation revenues. ARLP’s operating activities are currently
expected to generate EBITDA in a range of $660.0 to $760.0 million and net
income in a range of $340.0 to $440.0 million. The 2014 ranges for both
consolidated EBITDA and net income reflect the pass through of approximately
$27.5 to $35.5 million of losses related to ARLP's investments in White Oak.
(For a definition of EBITDA and related reconciliations to comparable GAAP
financial measures, please see the end of this release.)

Per Ton Estimates – Based on existing coal sales commitments and expectations
for filling its current open position, ARLP anticipates its average coal sales
price per ton at the midpoint of its 2014 guidance ranges will be comparable
to 2013 realizations. In addition, based on current cost and production
estimates, ARLP anticipates total Segment Adjusted EBITDA Expense per ton and
total realized margins per ton at the midpoint of its 2014 guidance ranges
will also be comparable to 2013.

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) 318-8611 and provide pass code 48285005. International callers should
dial (617) 399-5130 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
42225972. 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 ten 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, operating surface facilities and making equity
investments in a new mining complex under development 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                Year Ended

                 December 31,                      December 31,
                 2013            2012             2013            2012
                                                                    
Tons Sold          9,816            9,787            38,835           35,170
Tons Produced      9,161            9,103            38,782           34,800
                                                                    
SALES AND
OPERATING
REVENUES:
Coal sales       $ 542,919        $ 538,330        $ 2,137,449      $ 1,979,437
Transportation     9,183            4,383            32,642           22,034
revenues
Other sales
and operating     14,604         6,697          35,470         32,830     
revenues
Total revenues    566,706        549,410        2,205,561      2,034,301  
                                                                    
EXPENSES:
Operating
expenses
(excluding         356,706          356,485          1,398,763        1,303,291
depreciation,
depletion and
amortization)
Transportation     9,183            4,383            32,642           22,034
expenses
Outside coal       2                3,848            2,030            38,607
purchases
General and        16,961           14,798           63,697           58,737
administrative
Depreciation,
depletion and      66,223           63,199           264,911          218,122
amortization
Asset
impairment        -              -              -              19,031     
charge
Total
operating         449,075        442,713        1,762,043      1,659,822  
expenses
                                                                    
INCOME FROM        117,631          106,697          443,518          374,479
OPERATIONS
                                                                    
Interest           (7,642     )     (7,067     )     (26,082    )     (28,455    )
expense, net
Equity in loss
of affiliates,     (8,885     )     (3,610     )     (24,441    )     (14,650    )
net
Other income      892            262            1,891          3,115      
INCOME BEFORE      101,996          96,282           394,886          334,489
INCOME TAXES
                                                                    
INCOME TAX
EXPENSE           2,703          (356       )    1,396          (1,082     )
(BENEFIT)
                                                                    
NET INCOME       $ 99,293        $ 96,638        $ 393,490       $ 335,571    
                                                                    
GENERAL
PARTNERS’        $ 29,936        $ 26,822        $ 121,349       $ 106,837    
INTEREST IN
NET INCOME
                                                                    
LIMITED
PARTNERS’        $ 69,357        $ 69,816        $ 272,141       $ 228,734    
INTEREST IN
NET INCOME
                                                                    
BASIC AND
DILUTED NET
INCOME PER       $ 1.85          $ 1.87          $ 7.26          $ 6.12       
LIMITED
PARTNER UNIT
                                                                    
DISTRIBUTIONS
PAID PER         $ 1.175         $ 1.085         $ 4.5650        $ 4.1625     
LIMITED
PARTNER UNIT
                                                                    
WEIGHTED
AVERAGE NUMBER
OF UNITS          36,963,054     36,874,949     36,952,192     36,863,022 
OUTSTANDING –
BASIC AND
DILUTED

                                              
                                                
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except unit data)
(Unaudited)
                                                
ASSETS                                          December 31,
                                                2013            2012
CURRENT ASSETS:
Cash and cash equivalents                       $ 93,654         $ 28,283
Trade receivables                                 153,662          172,724
Other receivables                                 776              1,019
Due from affiliates                               1,964            658
Inventories                                       44,214           46,660
Advance royalties                                 11,454           11,492
Prepaid expenses and other assets                16,186         20,476    
Total current assets                              321,910          281,312
                                                                 
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment, at cost            2,645,872        2,361,863
Less accumulated depreciation, depletion and     (1,031,493 )    (832,293  )
amortization
Total property, plant and equipment, net          1,614,379        1,529,570
                                                                 
OTHER ASSETS:
Advance royalties                                 18,813           23,267
Due from affiliate                                11,560           3,084
Equity investments in affiliates                  130,410          88,513
Other long-term assets                           24,826         30,226    
Total other assets                               185,609        145,090   
TOTAL ASSETS                                    $ 2,121,898     $ 1,955,972 
                                                                 
LIABILITIES AND PARTNERS' CAPITAL
                                                                 
CURRENT LIABILITIES:
Accounts payable                                $ 79,371         $ 100,174
Due to affiliates                                 290              327
Accrued taxes other than income taxes             19,061           19,998
Accrued payroll and related expenses              47,105           38,501
Accrued interest                                  996              1,435
Workers’ compensation and pneumoconiosis          9,065            9,320
benefits
Current capital lease obligations                 1,288            1,000
Other current liabilities                         18,625           19,572
Current maturities, long-term debt               36,750         18,000    
Total current liabilities                         212,551          208,327
                                                                 
LONG-TERM LIABILITIES:
Long-term debt, excluding current maturities      831,250          773,000
Pneumoconiosis benefits                           48,455           59,931
Accrued pension benefit                           18,182           31,078
Workers’ compensation                             54,949           68,786
Asset retirement obligations                      80,807           81,644
Long-term capital lease obligations               17,135           18,613
Other liabilities                                7,332          9,147     
Total long-term liabilities                      1,058,110      1,042,199 
Total liabilities                                1,270,661      1,250,526 
                                                                 
COMMITMENTS AND CONTINGENCIES
                                                                 
PARTNERS' CAPITAL:
Alliance Resource Partners, L.P. (“ARLP”)
Partners’ Capital:
Limited Partners - Common Unitholders
36,963,054 and 36,874,949 units outstanding,      1,128,519        1,020,823
respectively
General Partners' deficit                         (267,563   )     (273,113  )
Accumulated other comprehensive loss             (9,719     )    (42,264   )
Total Partners' Capital                          851,237        705,446   
TOTAL LIABILITIES AND PARTNERS' CAPITAL         $ 2,121,898     $ 1,955,972 

                                                 
                                                   
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                   
                                                   Year Ended

                                                   December 31,
                                                   2013          2012
                                                                  
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES        $ 704,652     $ 555,856  
                                                                  
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment:
Capital expenditures                                 (329,151 )     (424,631 )
Changes in accounts payable and accrued              (3,048   )     (4,007   )
liabilities
Proceeds from sale of property, plant and            1,520          114
equipment
Purchase of equity investments in affiliate          (62,500  )     (59,800  )
Payment for acquisition of business                  -              (100,000 )
Payments to affiliate for acquisition and            (25,272  )     (34,601  )
development of coal reserves
Advances/loans to affiliate                          (7,500   )     (5,229   )
Payments from affiliate                              -              4,229
Other                                               -            546      
Net cash used in investing activities               (425,951 )    (623,379 )
                                                                  
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under term loan                           -              250,000
Borrowings under revolving credit facilities         386,000        278,800
Payments under revolving credit facilities           (291,000 )     (123,800 )
Payment on term loan                                 -              (300,000 )
Payment on long-term debt                            (18,000  )     (18,000  )
Payments on capital lease obligations                (1,190   )     (943     )
Payment of debt issuance costs                       -              (4,272   )
Net settlement of employee withholding taxes on
vesting of
Long-Term Incentive Plan                             (3,015   )     (3,734   )
Cash contributions by General Partners               2,314          2,150
Distributions paid to Partners                      (288,439 )    (257,923 )
Net cash used in financing activities               (213,330 )    (177,722 )
                                                                  
NET CHANGE IN CASH AND CASH EQUIVALENTS              65,371         (245,245 )
                                                                  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     28,283         273,528
                                                                 
CASH AND CASH EQUIVALENTS AT END OF PERIOD         $ 93,654      $ 28,283   
                                                                             
                                                                             

Reconciliation of GAAP "Net Income" to non-GAAP "EBITDA" and “Adjusted 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 and Adjusted EBITDA is EBITDA
modified to reflect significant non-recurring items that may not reflect the
trend of future results. 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.

We believe Adjusted EBITDA is a useful measure for investors because it
further demonstrates the performance of our assets without regard to
non-recurring charges.

Distributable cash flow (“DCF”) is defined as Adjusted EBITDA excluding
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, Adjusted 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, Adjusted 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, Adjusted EBITDA
and DCF may not be the same method used to compute similar measures reported
by other companies, and EBITDA and DCF may be computed differently by us in
different contexts (i.e. public reporting versus computation under financing
agreements). We have not previously modified EBITDA for any non-recurring
charges to calculate Adjusted EBITDA and, as a result, EBITDA and Adjusted
EBITDA are equivalent in all historical periods.

                                                                                    
                                                                            Three
                  Three Months Ended          Year Ended                    Months        Year Ended
                                                                            Ended
                  December 31,                December 31,                  September     December 31,
                                                                            30,
                  2013         2012          2013          2012           2013          2014E
                                                                                          Midpoint
                                                                                          
Net income        $ 99,293      $ 96,638      $ 393,490      $ 335,571      $ 87,186      $ 390,000
Depreciation,
depletion and       66,223        63,199        264,911        218,122        66,099        287,000
amortization
Interest
expense,            8,414         9,070         35,074         36,891         8,732         34,395
gross
Capitalized         (772    )     (2,003  )     (8,992   )     (8,436   )     (2,816  )     (1,395   )
interest
Income tax
(benefit)          2,703       (356    )    1,396        (1,082   )    (718    )    -        
expense
EBITDA              175,861       166,548       685,879        581,066        158,483       710,000
Asset
impairment         -           -           -            19,031       -           -        
charge
Adjusted            175,861       166,548       685,879        600,097        158,483       710,000
EBITDA
Equity in
loss of             8,885         3,610         24,441         14,650         5,990         32,500
affiliates,
net
Interest
expense,            (8,414  )     (9,070  )     (35,074  )     (36,891  )     (8,732  )     (34,395  )
gross
Income tax
benefit             (2,703  )     356           (1,396   )     1,082          718           -
(expense)
Estimated
maintenance
capital            (52,218 )    (50,067 )    (221,058 )    (191,400 )    (55,188 )    (236,000 )
expenditures
^(1)
Distributable     $ 121,411    $ 111,377    $ 452,792     $ 387,538     $ 101,271    $ 472,105  
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. For the 2014
planning horizon, average estimated maintenance capital expenditures are
assumed to be $5.90 per produced ton. 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
              Three Months Ended          Twelve Months Ended             Months
                                                                          Ended
              December 31,                December 31,                    September
                                                                          30,
              2013         2012          2013           2012            2013
                                                                          
Operating     $ 356,706     $ 356,485     $ 1,398,763     $ 1,303,291     $ 346,045
expense
Outside
coal            2             3,848         2,030           38,607          636
purchases
Other
(income)       (892    )    (262    )    (1,891    )    (3,115    )    (372    )
loss
Segment
Adjusted      $ 355,816     $ 360,071     $ 1,398,902     $ 1,338,783     $ 346,309
EBITDA
Expense
Divided
by tons        9,816       9,787       38,835        35,170        9,504   
sold
Segment
Adjusted
EBITDA        $ 36.25      $ 36.79      $ 36.02        $ 38.07        $ 36.44   
Expense
per ton
                                                                          

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

                                                             
                                         Three Months Ended      Three Months
                                                                 Ended
                                         December 31,            September 30,
                                         2013       2012        2013
                                                                 
Adjusted EBITDA (See reconciliation      $ 175,861   $ 166,548   $   158,483
to GAAP above)
General and administrative                16,961     14,798       14,893
Segment Adjusted EBITDA                  $ 192,822   $ 181,346   $   173,376

Contact:

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