Results were generally consistent with prior guidance when adjusted for higher than expected incentive compensation expense, lower than anticipated coal shipments and the impact of the Excel No. 3 mine fire.

The Partnership said recovery and rehabilitation of Excel was progressing more rapidly than previously anticipated and resumption of limited production operations is expected within three to five weeks and a gradual return to full production by the end of March.

“Throughout the year, our employees consistently demonstrated their ability to successfully respond to opportunities and overcome challenges. Through their efforts, Alliance once again delivered exceptional results in 2004, posting records for revenues, net income, tons sold, and production tons,” ARP president Joseph Craft III said.

Craft said expansion of production capacity at ARP’s Gibson County, Dotiki and Pattiki mines; resumption of operations at the Newcoal surface mine; and the addition of two third-party mining operations at its Mettiki operation allowed the company to respond to robust demand for coal.

ARP estimated 2005 coal production of 21.7 million tons and 2005 calendar year net income from US$100-110 million.