Alliance Resource Partners, L.p. · NASDAQ:ARLP
Alliance Resource Partners, L.p — McCloskey Coal USA Conference 2006
17 slides from Alliance Resource Partners, L.p's conference presentation, Jun 28, 2006
Slide 1: Coal USA
Exhibit 99.2 Coal USA June 28, 2006
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Statements in this presentation which are not statements of historical fact are forward- looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current factu
Slide 3: Ownership of Alliance Partnerships
Ownership of Alliance Partnerships 80.0% 20.0% L.P. Alliance Holdings L.P. Management / Interest GP , L.P. Interest Public Others (NASDAQ: AHGP) Unitholders 59.9 million units outstanding 1.98% General IDRs 42.3% L.P. Partner Interest (a) Interest Alliance Resource Partners, L.P. Public (NASDAQ: ARL
Slide 4: Alliance Partnership Profiles
Alliance Partnership Profiles NASDAQ Symbol: ARLP AHGP Unit Price (6/12/06): $35.06 $22.31 Distribution: $1.84 $0.74 Total Unit Coverage: 2.17x 1.00x Equity Market Cap: $2,067 mm (a) $1,335 mm (b) Enterprise Value: $2,197 mm (a) $1,335 mm (b) Net Debt / Net Book Cap: 29.4% 0.0% Net Debt / Ent. Value
Slide 5: Benefits of Industry-Leading Distribution Coverage
Benefits of Industry-Leading Distribution Coverage ARLP’s coverage ratio is among the highest of publicly traded limited partnerships in the energy sector (a) Benefits to ARLP and AHGP investors include: Greater potential for future distribution growth Capital efficient financing for ARLP organic gr
Slide 6: Alliance Resource Partners, L.P. Snapshot
Alliance Resource Partners, L.P. Snapshot ARLP is a diversified producer and marketer of coal to major U.S. utilities and industrial users Fifth largest eastern coal producer and eleventh largest in the U.S. (a) Only publicly-traded master limited partnership involved in the production and marketing
Slide 7: Operations Summary
Operations Summary 2005 Production 2005 Summary (MM Tons) Northern Production Reserves Primary Customers Appalachia Illinois Basin 15% Dotiki 4.7 89.5 Seminole; LG&E; TVA Central Warrior 4.1 17.8 Synfuel Solutions Appalachia Pattiki 2.6 47.6 TVA; Tampa Electric 15% Illinois Basin Hopkins 0.9 64.3 LG
Slide 8: Consistent Track Record of Growth at ARLP
Consistent Track Record of Growth at ARLP Production Revenue 25.0 $1,000.0 24.4 $920.0 $800.0 22.3 $799.6 20.0 20.4 $600.0 19.2 $623.5 18.0 $523.2 $499.0 $400.0 15.0 CAGR: 7.9% CAGR: 16.5% $200.0 10.0 $0.0 (a) (a) 2002 2003 2004 2005 2006E 2002 2003 2004 2005 2006E EBITDA Cash Flow from Operations $
Slide 9: Positioned for Continued Growth
Positioned for Continued Growth June 28, 2006
Slide 10: ARLP Organic Growth Opportunities
ARLP Organic Growth Opportunities Commodity Prices Growing Scrubber Market New Coal Fueled Power Generating Units Coal to Liquids 7 June 28, 2006
Slide 11: Major Supply Shifts Influenced by Clean Air Act
Major Supply Shifts Influenced by Clean Air Act U.S. Coal Supply (Million Tons) Change % Change 1990 1995 2000 2005 90 - '05 90 - '05 Illinois Basin 141 109 87 92 (49) -35% Northern Appalachia 166 137 140 140 (26) -16% Central Appalachia 287 272 263 232 (55) -19% Powder River Basin 199 286 362 430 2
Slide 12: Significant Scrubber Market Dynamics
Significant Scrubber Market Dynamics Current and pending legislation has caused utilities to add or announce plans to add scrubbers which management expects should lead to additional market opportunities for the Illinois Basin and Northern Appalachian regions As utilities execute their environmental
Slide 13: ARLP Well Positioned in Scrubber Markets
ARLP Well Positioned in Scrubber Markets Current Position Recent Contract Agreements Current Mine Developments Four mining complexes Allegheny Coal Sales Agreement Elk Creek currently producing in the • New 10 year, 20 million ton Mountain View Illinois Basin and one in coal supply agreement Van Lea
Slide 14: Large Inventory of Organic Growth Projects
Large Inventory of Organic Growth Projects ARLP has a number of significant, near-term development opportunities Tunnel Penn Gibson River Development Project: Ridge Ridge South View Permitting in Initiating Permitting in Initiating Status: permitting process progress permitting process progress Expe
Slide 15: Summary
A acne RESOURCE June 28, 2006 y_\ PARTNERS, L.P.
Slide 16: ARLP EBITDA Reconciliation
ARLP EBITDA Reconciliation ($ in thousands) Year Ended December 31, 2006E 2002 2003 2004 2005 Midpoint Cash flows provided by operating activities $ 101,306 $ 110,312 $ 145,055 $ 193,618 $ 250,000 Reclamation and mine closing (1,365) (1,341) (1,622) (1,918) (1,800) Coal inventory adjustment to marke
Slide 17: Coal USA
A ALLIANCE RESOURCE y X PARTNERS, L.P. Coal USA June 28, 2006
Alliance Resource Partners — McCloskey Coal USA Conference 2006 on 6ix