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Alliance Resource Partners, L.P. Announces Increased Long-Term Coal Sales to TVA

Wed. August 26, 2009; Posted: 07:00 AM
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TULSA, Okla., Aug 26, 2009 (BUSINESS WIRE) -- ARLP | Quote | Chart | News | PowerRating -- Alliance Resource Partners, L.P. (NASDAQ: ARLP | Quote | Chart | News | PowerRating) today announced that ARLP has entered into a new coal supply agreement with the Tennessee Valley Authority which will increase ARLP's annual coal supply to TVA by an additional two million tons per year beginning in 2010. Under the new agreement, beginning next year, ARLP will deliver five million tons of coal per year from its Illinois Basin operations to TVA over the next seven years. Under the terms of the new agreement, the parties may extend deliveries of five million tons per year for up to an additional seven years beyond the initial term.

"TVA has been an important customer to ARLP for many years and this new agreement further strengthens the long standing relationship between our companies," said Joseph W. Craft III, President and Chief Executive Officer. "This new agreement reflects the importance our customers place on securing a reliable supply of low-chlorine, high-sulfur coal."

ARLP is contractually committed and priced for substantially all of its anticipated 2009 coal production of 25.9 to 26.4 million tons. With the new TVA agreement, ARLP has now secured sales commitments for approximately 27.6 million tons, 27.3 million tons and 20.4 million tons in 2010, 2011 and 2012, respectively. Approximately 1.0 million tons of the 2012 coal sales commitments remain open to market pricing.

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 only publicly traded master limited partnership involved in the production and marketing of coal, is currently the fifth largest coal producer in the eastern United States with operations in all major eastern coalfields. ARLP currently operates eight underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. We are constructing two new mining complexes, one in Kentucky and one in West Virginia, and also operate a coal loading terminal on the Ohio River at Mt. 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: increased competition in coal markets and our ability to respond to the competition; sustained decreases in coal prices, which could adversely affect our operating results and cash flows; decreases in spot market prices for coal; risks associated with the expansion of our operations and properties; 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; the impact and duration of the current worldwide economic downturn; liquidity constraints, including those resulting from the cost or unavailability of financing due to current credit market conditions; customer bankruptcies or cancellations or breaches to existing contracts; customer delays or defaults in making payments; fluctuations in coal demand, prices and availability due to labor and transportation costs and disruptions, equipment availability, governmental regulations, including those related to carbon emissions, and other factors; legislation, regulatory and court decisions and interpretations thereof, including issues related to climate change and miner health and safety; our productivity levels and margins earned on our coal sales; greater than expected increases in raw material costs; greater than expected shortage of skilled labor; any unanticipated increases in labor costs, adverse changes in work rules, or unexpected cash payments associated with post-mine reclamation and workers' compensation claims; any unanticipated increases in transportation costs and risk of transportation delays or interruptions; greater than expected environmental regulation, costs and liabilities; a variety of operational, geologic, permitting, labor and weather-related 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; coal market's share of electricity generation; prices of fuel that compete with or impact coal usage, such as oil or natural gas; replacement of coal reserves; a loss or reduction of benefits from certain tax credits; and difficulty obtaining commercial property insurance, and risks associated with our participation (excluding any applicable deductible) in the commercial insurance property program.

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, 2008, filed on March 2, 2009 with the SEC. Except as required by applicable securities laws, ARLP does not intend to update its forward-looking statements.

SOURCE: Alliance Resource Partners, L.P.

Alliance Resource Partners, L.P. 
Brian L. Cantrell, 918-295-7673
For full details on Alliance Resource Partners LP (ARLP) click here. Alliance Resource Partners LP (ARLP) has Short Term PowerRatings of 5. Details on Alliance Resource Partners LP (ARLP) Short Term PowerRatings is available at This Link.

    


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