Alliance Resource Partners, L.P. (NASDAQ: ARLP) previously
announced several actions it was taking in response to the rapidly
evolving impact of the COVID-19 pandemic, including temporarily
ceasing coal production at all of its Illinois Basin mines (see
March 30, 2020 Press Release). At that time, the temporary idling
was scheduled to last through April 15, 2020, subject to change
based on the business needs of our customers. Based on available
data and customer feedback as of today, ARLP has determined that
anticipated coal supply requirements can be met currently from
remaining inventory at its Illinois Basin mines, and has
temporarily extended the previously announced cessation of coal
production at those operations through April 26, 2020.
In addition, ARLP ceased coal production at its MC Mining
operation in east Kentucky in early April, and will supply coal to
its customers from existing inventory until coal production is
transitioned to the new Excel Mine No. 5, which is expected to
occur in early May 2020. Coal production is continuing at ARLP’s
Northern Appalachian mines. To protect employees, these operations
have implemented numerous safeguards including staggered shift
patterns to promote social distancing, enhanced cleaning
procedures, promotion of recommended hygiene practices and limiting
workplace access.
As ARLP continues to assess the impact of the COVID-19 pandemic,
as well as its ability to continue to meet customer needs from
existing coal inventories at the affected operations, the actual
return to production will be accelerated or extended if needed.
ARLP intends to provide a status update with its report of
financial and operating results for the quarter ended March 31,
2020.
About Alliance Resource Partners, L.P.
ARLP is a diversified natural resource company that generates
income from coal production and oil & gas mineral interests
located in strategic producing regions across the United
States.
ARLP currently produces coal from seven mining complexes it
operates in Illinois, Indiana, Kentucky, Maryland and West
Virginia. ARLP also operates a coal loading terminal on the Ohio
River at Mount Vernon, Indiana. ARLP markets its coal production to
major domestic and international utilities and industrial users and
is currently the second largest coal producer in the eastern United
States.
ARLP generates royalty income from mineral interests it owns in
premier oil & gas producing regions in the United States,
primarily the Permian, Anadarko, Williston and Appalachian
basins.
In addition, ARLP also generates income from a variety of other
sources.
News, unit prices and additional information about ARLP,
including filings with the Securities and Exchange Commission
("SEC"), are available at http://www.arlp.com. To request a copy of
ARLP’s Annual Report on Form 10-K for the year ended December 31,
2019 or 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. 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 optimizing cash
flows, reducing operating and capital expenditures, preserving
liquidity and maintaining financial flexibility, among others.
These risks to our ability to achieve these outcomes include, but
are not limited to, the following: the impact of COVID-19 both to
the execution of our day to day operations including potential
closures, as well as to the pandemic’s broader impact on demand for
coal, oil and natural gas, the financial condition of our customers
and suppliers, available liquidity and credit sources and broader
economic disruption that is evolving. In addition, the actions of
Saudi Arabia and Russia to decrease oil prices may have direct and
indirect impacts over the near and long term to our minerals
segment. These risks compound the ongoing risks to our business,
including changes in coal, oil and natural gas prices, which could
affect our operating results and cash flows; changes in competition
in domestic and international coal, oil and natural gas markets and
our ability to respond to such changes; legislation, regulations,
and court decisions and interpretations thereof, both domestic and
foreign, including those relating to the environment and the
release of greenhouse gases, 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; risks associated
with the expansion of our operations and properties; our ability to
identify and complete acquisitions; dependence on significant
customer contracts, including renewing existing contracts upon
expiration; adjustments made in price, volume or terms to existing
coal supply agreements; changing global economic conditions or in
industries in which our customers operate; recent action and the
possibility of future action on trade made by United States and
foreign governments; the effect of new tariffs and other trade
measures; 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; fluctuations in coal demand, prices
and availability; changes in oil & gas prices, which could,
among other things, affect our investments in oil & gas mineral
interests; our productivity levels and margins earned on our coal
sales; decline in or change in the coal industry'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; changes in raw material
costs; changes in the availability of skilled labor; our ability to
maintain satisfactory relations with our employees; increases in
labor costs including costs of health insurance and taxes resulting
from the Affordable Care Act, adverse changes in work rules, or
cash payments or projections associated with post-mine reclamation
and workers' compensation claims; increases in transportation costs
and risk of transportation delays or interruptions; operational
interruptions due to geologic, permitting, labor, weather-related
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 reserves;
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; 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;
uncertainties in our ability to generate sufficient cash from
operations to maintain our per unit distribution level;
uncertainties in our ability to meet guidance, market expectations
and internal projections; 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,
2019, filed on February 20, 2020. Except as required by applicable
securities laws, ARLP does not intend to update its forward-looking
statements.
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Brian L. Cantrell Alliance Resource Partners, L.P. (918)
295-7673
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