Alliance Holdings GP, L.P. (AHGP) is a limited partnership formed in November 2005 to own and control Alliance Resource Management GP, LLC, the managing general partner of Alliance Resource Partners, L.P. (ARLP), a publicly traded limited partnership engaged in the production and marketing of coal to major U.S. utilities and industrial users.
AHGP owns certain general partner interests, all of the incentive distribution rights and 15,544,169 common units in ARLP.
The primary business objective of AHGP is to increase its cash distributions to unitholders by actively helping ARLP in executing its business strategy. ARLP's business strategy is to create sustainable, capital-efficient growth in distributable cash flow to maximize its distribution to its unitholders. To accomplish this, AHGP will assist ARLP in identifying, evaluating and pursuing growth strategies, and could include helping ARLP to:
In the future, AHGP also may support the growth of ARLP through the use of capital resources, which could involve loans or capital contributions to ARLP to provide funding for the acquisition of a business or asset or for an internal growth project.