Alliance Resource Partners, L.P. Announces Redemption of Series A-1 Preferred Interests by Kodiak

Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced that its
Series A-1 Preferred Interests ("Preferred Interests") in Kodiak Gas
Services, LLC ("Kodiak") have been redeemed by Kodiak for an immediate
cash payment of $135,000,000 (the "Purchase Price").

On July 19, 2017, Alliance Minerals, LLC, a wholly owned subsidiary of
ARLP, purchased $100 million of Preferred Interests from Kodiak, a
privately-held company providing large-scale, high-utilization gas
compression assets to customers operating primarily in the Permian
Basin. This structured investment provided ARLP with quarterly
distributions of cash or additional Preferred Interests. As of December
31, 2018, ARLP’s investment had increased to $122.1 million due to the
distribution by Kodiak of additional paid-in-kind Preferred Interests.

ARLP was notified on January 26, 2019 that Kodiak intended to exercise
its option to purchase the Preferred Interests and, on February 8, 2019,
we received payment of the Purchase Price. As a result of this
transaction, ARLP will record in the first quarter of 2019 income of
$12.9 million, inclusive of an $11.5 million early redemption premium.

About Alliance Resource Partners, L.P.

ARLP is a diversified natural resource company that generates income
from coal production and oil and gas mineral interests located in
strategic producing regions across the United States.

ARLP currently produces coal from eight 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 and gas producing regions in the United States, primarily the
Anadarko, Permian, Williston and Appalachian basins.

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.
For more information, contact the investor relations department of ARLP
at (918) 295-7674 or via e-mail at investorrelations@arlp.com.

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