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37

Alliance Resource Partners (ARLP)

Mining coal can be dirty, dangerous, and expensive, but it can also be a growth business. Just look at Alliance Resource Partners, which has strung together six record years and expects to continue the streak. Its profits, in fact, have jumped 4.5 times since 2002 to $160 million on $838.7 million in sales in 2005. The nation's only publicly traded master limited partnership that produces and markets coal, Alliance has been a huge beneficiary of strong demand -- and rising prices -- for its coal, which comes from underground mines in Appalachia and the Midwest. Alliance has also done a good job of replacing production from aging mines. In April, it announced a plan to invest up to $130 million to develop a 24,600-acre reserve called River View in Union County, Ky. With demand moving higher as electric utilities invest in scrubbers enabling them to burn high-sulfur coal, Alliance expects to have ready customers when River View starts producing in 2008.

Company Info

2005 Rank

20

Market Value*
($ Millions)

1,543.7

Sales*
($ Millions)

881.4

Sales Growth
(3-yr. avg. annual)

17.7 %

Profits*
($ Millions)

169.1

Profit Growth
(3-yr. avg. annual)

63.6 %

Return on Inv. Capital (3-yr.)

37.8 %

Share Price
12-Mo. Hi/Lo

48/32

Share Price
As of 4/28/06

42

Return on Equity

88.9 %

P/E Ratio

14

No. of Employees

2,300

Industry Coal & Consumable Fuels
CURRENT
MARKET INFO

ARLP >

COMPANY WEB SITE >
Location Tulsa
Phone 918 295-7600
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Alliance Resource Partners. and its subsidiaries engage in the production and marketing of coal to utilities and industrial users in the U.S. The company offers a diverse range of steam coals from its Illinois Basin mining operations, which are located in western Kentucky, southern Illinois, and southern Indiana; Central Appalachian mining operations that are located in the Central Appalachia coal fields; and Northern Appalachia mining operation, which is located in the Northern Appalachia coal fields. Its other activities include leasing land and operation of a coal-loading terminal on the Ohio River at Mount Vernon, Indiana, as well as offering coal brokerage services, and ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. As of Dec. 31, 2005, Alliance Resource Partners had approximately 549 million tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management and Alliance Resource serve as the general partners of the company. The company transports its coal by rail, truck, and barge. Alliance Resource Partners, formerly known as MAPCO Coal, was founded in 1971 and has its headquarters in Tulsa, Okla.


Data provided by Capital IQ
 
Joseph W. Craft

Joseph W. Craft, 55

President, Chief Executive Officer and a Director


Total Compensation*

$ 4,417,991

Total Options Value*

$ N/A

* Fiscal Year 2005

DEGREES HELD
University of Kentucky - BS, University of Kentucky - JD


Executive Bio

Joseph W. Craft III has been president, chief executive officer, and a director of Alliance Resource Partners since August, 1996. Previously, Craft served as president of MAPCO Coal from 1986. While at MAPCO, he held the positions of senior vice-president, general counsel, and chief financial officer. Before joining MAPCO, Craft was an attorney at Falcon Coal and Diamond Shamrock Coal. He is past chairman of the National Coal Council, a board and executive committee member of the National Mining Assn., and a director of the Center for Energy & Economic Development. Craft holds a BS in accounting and a juris doctor degree from the University of Kentucky. He also is a graduate of the senior executive program of the Alfred P. Sloan School of Management at Massachusetts Institute of Technology.


Management Team

Key Executives

Joseph W. Craft; Thomas M. Wynne; Brian L. Cantrell; Robert G. Sachse; Thomas L. Pearson; Charles R. Wesley; Gary J. Rathburn

Board Directors

Michael J. Hall; John H. Robinson; John J. MacWilliams; Preston R. Miller; John P. Neafsey; Robert G. Sachse; Joseph W. Craft;


Executive Data provided by Capital IQ