AHGP Alliance Holdings GP, L.P. Representing Limited Partner Interests (delisted)

Alliance Holdings GP, L.P. (NASDAQ: AHGP) today reported financial results for the quarter ended March 31, 2018 (the "2018 Quarter"). As previously announced on April 27, 2018, the Board of Directors of its general partner (the "Board") approved a distribution to unitholders of $0.7475 per unit (an annualized rate of $2.99 per unit) for the 2018 Quarter, payable on May 18, 2018 to AHGP unitholders of record as of the close of trading on May 11, 2018. The announced distribution represents a 35.9% increase over the cash distribution of $0.55 for the quarter ended March 31, 2017 (the "2017 Quarter") and a 0.7% increase over the cash distribution of $0.7425 for the quarter ended December 31, 2017 (the "Sequential Quarter").

AHGP's principal sources of cash flow are its ownership interests in Alliance Resource Partners, L.P. (NASDAQ: ARLP). The declared distribution is based on the distribution AHGP will receive from its ownership interests in ARLP, which previously announced on April 27, 2018 a quarterly distribution for the 2018 Quarter of $0.515 per unit, or $2.06 per unit on an annualized basis, payable on May 15, 2018 to all unitholders of record as of the close of trading on May 8, 2018.

AHGP also reported net income attributable to AHGP for the 2018 Quarter of $103.7 million, or $1.73 per basic and diluted limited partner unit, an increase of 88.5% compared to net income attributable to AHGP for the 2017 Quarter of $55.0 million, or $0.92 per basic and diluted limited partner unit. Net income attributable to AHGP for the 2018 Quarter increased approximately 110.4% compared to net income attributable to AHGP for the Sequential Quarter of $49.3 million, or $0.82 per basic and diluted limited partner unit.

Operating results for AHGP reflect those of the operating subsidiaries of ARLP and, as a result, AHGP reports its financial results on a consolidated basis with the financial results of ARLP. The consolidated net income of AHGP includes earnings and losses attributable to both AHGP and noncontrolling interests.

On February 23, 2018 ARLP and AHGP (collectively, the “Alliance Partnerships”) jointly announced an agreement pursuant to which, through a series of transactions (the “Simplification Transactions”), AHGP would become a wholly owned subsidiary of ARLP and all of the ARLP common units held by AHGP and its subsidiaries would be distributed to the unitholders of AHGP in exchange for their AHGP common units. Pursuant to this agreement, ARLP filed a preliminary registration statement on Form S-4 on March 29, 2018. On April 26, 2018, the Securities Exchange Commission declared the Form S-4 effective to register the distribution of the ARLP common units currently held by AHGP and its subsidiaries to AHGP’s unitholders and, on April 27, 2018, AHGP mailed consent solicitation statements to its unitholders of record as of April 25, 2018. Consummation of the Simplification Transactions remains subject to the affirmative vote or consent of the holders of a majority of the outstanding AHGP common units. Certain AHGP unitholders, which collectively own a majority of the outstanding AHGP common units, have agreed to deliver a written consent approving the Simplification Transactions pursuant to a support agreement. The Alliance Partnerships expect to close the Simplification Transactions during the second quarter of 2018 following AHGP's quarterly cash distribution to unitholders discussed above.

A joint conference call regarding AHGP and ARLP's 2018 Quarter financial results is scheduled for today at 10:00 a.m. Eastern. To participate in the conference call, dial (877) 506-1589 and request to be connected to the Alliance Resource Partners, L.P. and Alliance Holdings GP, L.P earnings conference call. Canadian callers should dial (855) 669-9657 and all other International callers should dial (412) 317-5240 and request to be connected to the same call. Investors may also listen to the call via the "investor information" section of ARLP's website at http://www.arlp.com or AHGP's website at http://www.ahgp.com.

An audio replay of the conference call will be available for approximately one week. To access the audio replay, dial US Toll Free (877) 344-7529; International Toll (412) 317-0088; Canada Toll Free (855) 669-9658 and request to be connected to replay access code 10118635.

About Alliance Holdings GP, L.P.

AHGP is a limited partnership formed to own and control ARLP's general partner through which it holds a non-economic general partner interest in ARLP and an approximate one percent general partner interest in ARLP's operating subsidiary, Alliance Resource Operating Partners, L.P. In addition, AHGP owns 87,188,338 common units of ARLP.

News, unit prices and additional information about AHGP including filings with the Securities and Exchange Commission, are available at http://www.ahgp.com. For more information, contact the investor relations department of AHGP at (918) 295-1415 or via e-mail at investorrelations@ahgp.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 statements 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: changes in competition in coal markets and the ability of ARLP and its consolidated subsidiaries (the "ARLP Partnership") to respond to such changes; changes in coal prices, which could affect the ARLP Partnership's operating results and cash flows; risks associated with the expansion of the ARLP Partnership's operations and properties; legislation, regulations, and court decisions and interpretations thereof, 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; dependence on significant customer contracts, including renewing existing contracts upon expiration; changing global economic conditions or in industries in which the ARLP Partnership's customers operate; 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; adjustments made in price, volume or terms to existing coal supply agreements; fluctuations in coal demand, prices and availability; changes in oil and gas prices, which could affect the ARLP Partnership’s investments in oil and gas mineral interests and gas compression services; the ARLP Partnership's productivity levels and margins earned on its coal sales; changes in raw material costs; changes in the availability of skilled labor; the ARLP Partnership's ability to maintain satisfactory relations with its 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, such as mine fires, or interruptions; results of litigation, including claims not yet asserted; difficulty maintaining the ARLP Partnership's 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; 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; uncertainties in estimating and replacing the ARLP Partnership's coal reserves; a loss or reduction of benefits from certain tax deductions and credits; difficulty obtaining commercial property insurance, and risks associated with the ARLP Partnership's participation (excluding any applicable deductible) in the commercial insurance property program; and difficulty in making accurate assumptions and projections regarding future revenues and costs associated with investments in companies the ARLP Partnership does not control.

Additional information concerning these and other factors can be found in AHGP's public periodic filings with the Securities and Exchange Commission ("SEC"), including AHGP's Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 23, 2018 with the SEC. Except as required by applicable securities laws, AHGP does not intend to update its forward-looking statements.

    ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES   CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA (In thousands, except unit and per unit data) (Unaudited)       Three Months Ended March 31,   2018         2017   SALES AND OPERATING REVENUES: Coal sales $ 423,610 $ 438,744 Transportation revenues 19,785 9,596 Other sales and operating revenues   13,641     12,665   Total revenues   457,036     461,005     EXPENSES: Operating expenses (excluding depreciation, depletion and amortization) 277,238 262,027 Transportation expenses 19,785 9,596 Outside coal purchases 1,374 — General and administrative 17,145 16,447 Depreciation, depletion and amortization 61,848 65,127 Settlement gain   (80,000 )   —   Total operating expenses   297,390     353,197     INCOME FROM OPERATIONS 159,646 107,808 Interest expense, net (10,858 ) (7,516 ) Interest income 68 25 Equity investment income 3,736 3,700 Equity securities income 3,724 — Other (expense) income   (847 )   533     INCOME BEFORE INCOME TAXES 155,469 104,550   INCOME TAX EXPENSE   (10 )   (12 )   NET INCOME 155,479 104,562   LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS   (51,759 )   (49,551 )   NET INCOME ATTRIBUTABLE TO ALLIANCE HOLDINGS GP, L.P. ("NET INCOME OF AHGP") $ 103,720   $ 55,011     BASIC AND DILUTED NET INCOME OF AHGP PER LIMITED PARTNER UNIT $ 1.73   $ 0.92     DISTRIBUTIONS PAID PER LIMITED PARTNER UNIT $ 0.7425   $ 0.5500     WEIGHTED AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED   59,863,000     59,863,000       ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except unit data) (Unaudited)       March 31,     December 31,   2018     2017   ASSETS CURRENT ASSETS: Cash and cash equivalents $ 30,700 $ 8,643 Trade receivables 157,798 181,671 Other receivables 229 146 Due from affiliates 11 25 Inventories, net 83,944 60,275 Advance royalties, net 2,856 4,510 Prepaid expenses and other assets   19,864     28,192   Total current assets 295,402 283,462 PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment, at cost 2,983,666 2,934,188 Less accumulated depreciation, depletion and amortization   (1,520,732 )   (1,457,532 ) Total property, plant and equipment, net 1,462,934 1,476,656 OTHER ASSETS: Advance royalties, net 50,800 39,660 Equity method investments 158,669 147,964 Equity securities 110,122 106,398 Goodwill 136,399 136,399 Other long-term assets   30,442     30,712   Total other assets   486,432     461,133   TOTAL ASSETS $ 2,244,768   $ 2,221,251     LIABILITIES AND PARTNERS' CAPITAL CURRENT LIABILITIES: Accounts payable $ 93,577 $ 97,371 Due to affiliates — 771 Accrued taxes other than income taxes 20,307 20,366 Accrued payroll and related expenses 34,530 35,801 Accrued interest 12,499 5,005 Workers' compensation and pneumoconiosis benefits 10,769 10,729 Current capital lease obligations 28,948 28,613 Other current liabilities 16,732 19,071 Current maturities, long-term debt, net   40,000     72,400   Total current liabilities 257,362 290,127 LONG-TERM LIABILITIES: Long-term debt, excluding current maturities, net 386,703 415,937 Pneumoconiosis benefits 72,509 71,875 Accrued pension benefit 42,906 45,317 Workers' compensation 46,861 46,694 Asset retirement obligations 126,287 126,750 Long-term capital lease obligations 50,634 57,091 Other liabilities   20,055     14,587   Total long-term liabilities   745,955     778,251   Total liabilities   1,003,317     1,068,378     PARTNERS’ CAPITAL: Alliance Holdings GP, L.P. ("AHGP") Partners' Capital: Limited Partners – Common Unitholders 59,863,000 units outstanding 685,127 626,831 Accumulated other comprehensive loss   (34,087 )   (34,820 ) Total AHGP Partners' Capital 651,040 592,011 Noncontrolling interests   590,411     560,862   Total Partners’ Capital   1,241,451     1,152,873   TOTAL LIABILITIES AND PARTNERS’ CAPITAL $ 2,244,768   $ 2,221,251       ALLIANCE HOLDINGS GP, L.P. AND SUBSIDIARIES   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)       Three Months Ended March 31,   2018         2017     CASH FLOWS FROM OPERATING ACTIVITIES: $ 224,311 $ 176,552   CASH FLOWS FROM INVESTING ACTIVITIES: Property, plant and equipment: Capital expenditures (51,525 ) (30,346 ) Increase (decrease) in accounts payable and accrued liabilities (15 ) 2,144 Proceeds from sale of property, plant and equipment 7 453 Contributions to equity method investments (11,400 ) (9,287 ) Distributions received from investments in excess of cumulative earnings   736     1,191   Net cash used in investing activities   (62,197 )   (35,845 )   CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings under securitization facility 37,600 — Payments under securitization facility (70,000 ) — Borrowings under revolving credit facilities 70,000 — Payments under revolving credit facilities (100,000 ) (25,000 ) Payments on capital lease obligations (6,974 ) (6,678 ) Payment of debt issuance costs — (6,664 ) Contributions to consolidated company from affiliate noncontrolling interest — 251 Net settlement of withholding taxes on ARLP's issuance of units in deferred compensation plans (2,081 ) (2,988 ) Contribution by limited partner - affiliate — 800 Distributions paid by consolidated partnership to noncontrolling interests (23,257 ) (19,810 ) Distributions paid to Partners (44,449 ) (32,925 ) Other   (896 )   (190 ) Net cash used in financing activities   (140,057 )   (93,204 )   NET CHANGE IN CASH AND CASH EQUIVALENTS 22,057 47,503   CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 8,643 44,525     CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 30,700   $ 92,028    

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Alliance Holdings GP, L.P.Brian L. Cantrell, 918-295-7673