Deal Details

Elimination of IDRs and Conversion of General Partner Interests

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Summary

About

Alliance Resource Partners, L.P. (the "Partnership" or "Alliance Resource Partners") (NASDAQ: ARLP) recently announced an agreement pursuant to which Alliance Holdings GP, L.P.’s ("Alliance Holdings") (NASDAQ: AHGP) incentive distribution rights ("IDRs") in the Partnership have been eliminated and its approximate one percent general partner interest in the Partnership has been converted into a non-economic general partner interest, in exchange for the issuance to Alliance Holdings of 56,100,000 Alliance Resource Partners common units.

Alliance Resource Partners, the nation’s first publicly traded master limited partnership involved in the production and marketing of coal, is currently the second largest coal producer in the eastern United States with mining operations in the Illinois Basin and Appalachian coal producing regions. The Partnership currently operates eight mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia as well as a coal-loading terminal on the Ohio River at Mount Vernon, Indiana. The Partnership also generates income from a variety of other sources, including investments in oil and gas royalty interests and midstream services. Alliance Resource Partners is headquartered in Tulsa, Oklahoma.

Alliance Holdings is a limited partnership formed to own and control Alliance Resource Partners’ managing general partner through which it holds a non-economic general partner interest in the Partnership and an approximate one percent general partner interest in the Partnership’s operating subsidiary, Alliance Resource Operating Partners, L.P. In addition, following the transaction, Alliance Holdings now owns 87,188,338 common units of Alliance Resource Partners. Alliance Holdings is headquartered in Tulsa, Oklahoma.

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