May 1, 2017 - Alliance Holdings GP, L.P. (NASDAQ: AHGP) today reported financial results for the quarter ended March 31, 2017 (the "2017 Quarter") and, as previously announced, the Board of Directors of its general partner (the "Board") approved a distribution to unitholders of $0.55 per unit (an annualized rate of $2.20 per unit) for the 2017 Quarter. The announced distribution is payable on May 19, 2017 to AHGP's unitholders of record as of the close of trading on May 12, 2017 and is equal to the distributions declared for the quarters ended March 31, 2016 (the "2016 Quarter") and December 31, 2016.
AHGP's principal sources of cash flow are its ownership of general partner interests, limited partner interests and incentive distribution rights 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 a quarterly distribution for the 2017 Quarter of $0.4375 per unit, or $1.75 per unit on an annualized basis, payable on May 15, 2017 to all unitholders of record as of the close of trading on May 8, 2017. (See ARLP Press Release dated April 28, 2017.)
AHGP also reported net income attributable to AHGP for the 2017 Quarter of $55.0 million, or $0.92 per basic and diluted limited partner unit, an increase of 78.4% compared to $30.8 million, or $0.52 per basic and diluted limited partner unit for the 2016 Quarter.
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.
Based on ARLP's current declared distribution, AHGP expects to receive quarterly cash distributions from ARLP of $33.5 million, or $134.0 million on an annualized basis. AHGP's primary cash requirements are for working capital, distributions to its unitholders and, for the 2017 full year, an estimated $2.0 million in general and administrative expenses.