Tim Snyder

Tim Snyder questioned the specific Henry Hub or intraday pricing levels that trigger switching between coal and natural gas for power generation in Alliance Resource Partners' active basins, and the speed at which such switching occurs. He also sought confirmation on whether the current market dynamics, driven by data center demand, imply that all available electricity generation, regardless of source, is needed, thereby reducing historical price sensitivity.

Answer

Chairman, President, and CEO Joe Craft explained that the competition between natural gas and coal has become less of a factor due to the significant load growth from data centers. He noted that while weather-dependent gas price fluctuations could still influence coal demand, the company has not experienced the same level of direct gas-on-coal competition as in the past. Craft affirmed that the growing electricity demand over the next two to three years necessitates all available generation, including coal, effectively reducing the historical sensitivity to source-specific pricing.

Tim Snyder asked about the Henry Hub or intraday pricing levels that trigger switching between coal and gas for power generation, and the speed at which such switching occurs. He followed up by asking if it's fair to say that all electrons are needed going forward, irrespective of source, implying a reduced sensitivity to historical coal-gas competition.

Answer

Chairman, President, and CEO Joe Craft stated that gas-to-coal competition is becoming less of a factor due to the rapid growth of data centers and increased electricity demand. He noted that while gas prices are important, their influence on coal demand is less significant than in the past, especially outside of weather-dependent winter scenarios. He affirmed that the grid needs every available megawatt of dispatchable generation, suggesting that the historical sensitivity to fuel switching is indeed diminished.