Alliance Resource Partners, L.P. (NASDAQ: ARLP) (“ARLP” or the
“Partnership”) announced today that its subsidiary, Excel Mining,
LLC (“Excel”), issued Worker Adjustment and Retraining Notification
(“WARN”) Act notices to all of its approximately 280 employees of
the MC Mining Complex in Pike County, Kentucky.
"The decision to issue WARN notices at the MC Mining Complex was
not made lightly," said Joseph W. Craft, III, Chairman, President
and Chief Executive Officer. "Despite our continued efforts to
navigate challenging geology and market conditions, persistent
weakness in coal demand, compounded by some delays in timely
payment for committed coal sales, has necessitated this difficult
but necessary step to begin winding down production operations. We
deeply regret the impact this decision has on our employees, their
families, and their communities."
The MC Mining Complex is owned by MC Mining, LLC and operated by
Excel, both wholly-owned subsidiaries of ARLP. Through October 31,
2024, the MC Mining Complex has generated 2024 year-to-date coal
sales and production volumes of approximately 0.7 million tons and
0.8 million tons, respectively.
As of November 15, 2024, coal production from the MC Mining
Complex will be reduced to two production units. Combined with
current inventory, mining from the two production units will
continue to supply existing contractual commitments before ceasing
in anticipation of the mine’s permanent closure. Excel employees
not involved in the reduced production of coal will focus efforts
on reclamation activities throughout the MC Mining Complex.
ARLP does not expect this action to have any impact on its
previously announced guidance ranges provided in its October 28,
2024 press release.
About Alliance Resource Partners, L.P.
ARLP is a diversified energy company that is currently the
largest coal producer in the eastern United States, supplying
reliable, affordable energy domestically and internationally to
major utilities, metallurgical and industrial users. ARLP also
generates operating and royalty income from mineral interests it
owns in strategic coal and oil & gas producing regions in the
United States. In addition, ARLP is evolving and positioning itself
as a reliable energy partner for the future by pursuing
opportunities that support the advancement of energy and related
infrastructure.
News, unit prices and additional information about ARLP,
including filings with the Securities and Exchange Commission
("SEC"), are available at www.arlp.com. For more information,
contact the investor relations department of ARLP at (918) 295-7673
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. We have included more information below
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. Those forward-looking statements include expectations with
respect to our future financial performance, coal and oil & gas
consumption and expected future prices, our ability to increase
unitholder distributions in future quarters, business plans and
potential growth with respect to our energy and infrastructure
transition investments, optimizing cash flows, reducing operating
and capital expenditures, infrastructure projects at our existing
properties, growth in domestic electricity demand, preserving
liquidity and maintaining financial flexibility, and our future
repurchases of units and senior notes, among others. These risks to
our ability to achieve these outcomes include, but are not limited
to, the following: decline in the coal industry's share of
electricity generation, including as a result of environmental
concerns related to coal mining and combustion, the cost and
perceived benefits of other sources of electricity and fuels, such
as oil & gas, nuclear energy, and renewable fuels and the
planned retirement of coal-fired power plants in the U.S.; our
ability to provide fuel for growth in domestic energy demand,
should it materialize; changes in macroeconomic and market
conditions and market volatility, and the impact of such changes
and volatility on our financial position; changes in global
economic and geo-political conditions or changes in industries in
which our customers operate; changes in commodity prices, demand
and availability which could affect our operating results and cash
flows; the outcome or escalation of current hostilities in Ukraine
and the Israel-Gaza conflict; the severity, magnitude and duration
of any future pandemics and impacts of such pandemics and of
businesses' and governments' responses to such pandemics on our
operations and personnel, and on demand for coal, oil, and natural
gas, the financial condition of our customers and suppliers and
operators, available liquidity and capital sources and broader
economic disruptions; actions of the major oil-producing countries
with respect to oil production volumes and prices could have direct
and indirect impacts over the near and long term on oil & gas
exploration and production operations at the properties in which we
hold mineral interests; changes in competition in domestic and
international coal markets and our ability to respond to such
changes; potential shut-ins of production by the operators of the
properties in which we hold oil & gas mineral interests due to
low commodity prices or the lack of downstream demand or storage
capacity; risks associated with the expansion of and investments
into the infrastructure of our operations and properties, including
the timing of such investments coming online; our ability to
identify and complete acquisitions and to successfully integrate
such acquisitions into our business and achieve the anticipated
benefits therefrom; our ability to identify and invest in new
energy and infrastructure transition ventures; the success of our
development plans for our wholly owned subsidiary, Matrix Design
Group, LLC, and our investments in emerging infrastructure and
technology companies; dependence on significant customer contracts,
including renewing existing contracts upon expiration; adjustments
made in price, volume, or terms to existing coal supply agreements;
the effects of and changes in trade, monetary and fiscal policies
and laws, and the results of central bank policy actions, including
interest rates, bank failures, and associated liquidity risks; the
effects of and changes in taxes or tariffs and other trade measures
adopted by the United States and foreign governments; legislation,
regulations, and court decisions and interpretations thereof, both
domestic and foreign, including those relating to the environment
and the release of greenhouse gases, such as the Environmental
Protection Agency's recently promulgated emissions regulations for
coal-fired power plants, mining, miner health and safety, hydraulic
fracturing, 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;
investors' and other stakeholders' increasing attention to
environmental, social, and governance matters; 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; our productivity levels and margins earned on
our coal sales; disruptions to oil & gas exploration and
production operations at the properties in which we hold mineral
interests; changes in equipment, raw material, service or labor
costs or availability, including due to inflationary pressures;
changes in our ability to recruit, hire and maintain labor; our
ability to maintain satisfactory relations with our employees;
increases in labor costs, adverse changes in work rules, or cash
payments or projections associated with workers' compensation
claims; increases in transportation costs and risk of
transportation delays or interruptions; operational interruptions
due to geologic, permitting, labor, weather, supply chain shortage
of equipment or mine supplies, or other factors; risks associated
with major mine-related accidents, mine fires, mine floods or other
interruptions; results of litigation, including claims not yet
asserted; foreign currency fluctuations that could adversely affect
the competitiveness of our coal abroad; 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 post-mine reclamation as well as pension,
black lung benefits, and other post-retirement benefit liabilities;
uncertainties in estimating and replacing our coal mineral reserves
and resources; uncertainties in estimating and replacing our oil
& gas reserves; uncertainties in the amount of oil & gas
production due to the level of drilling and completion activity by
the operators of our oil & gas properties; uncertainties in the
future of the electric vehicle industry and the market for EV
charging stations; the impact of current and potential changes to
federal or state tax rules and regulations, including a loss or
reduction of benefits from certain tax deductions and credits;
difficulty obtaining commercial property insurance, and risks
associated with our participation in the commercial insurance
property program; evolving cybersecurity risks, such as those
involving unauthorized access, denial-of-service attacks, malicious
software, data privacy breaches by employees, insiders or others
with authorized access, cyber or phishing attacks, ransomware,
malware, social engineering, physical breaches, or other actions;
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 SEC,
including ARLP's Annual Report on Form 10-K for the year ended
December 31, 2023, filed on February 23, 2024, and ARLP's Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2024, June
30, 2024 and September 30, 2024, filed on May 9, 2024, August 7,
2024 and November 7, 2024, respectively. Except as required by
applicable securities laws, ARLP does not intend to update its
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20241115754123/en/
Investor Relations Contact
Cary P. Marshall Senior Vice President and Chief Financial Officer
918-295-7673 investorrelations@arlp.com
Alliance Resource Partners (NASDAQ:ARLP)
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