Alliance Resource (ARLP) Reports 17.1% Decrease in Q1 2025 Revenue

By Bobby Samwell • Monday, April 28 10:05 • Permanent Link

Alliance Resource Partners, L.P. (ARLP) reported its first-quarter financial and operating results for 2025, declaring a quarterly cash distribution of $0.70 per unit and updating its 2025 guidance. The company's total revenue for the 2025 quarter decreased by 17.1% to $540.5 million compared to the 2024 quarter. Net income for the 2025 quarter was $74.0 million, a significant decrease from $158.1 million in the 2024 quarter. Adjusted EBITDA for the 2025 quarter was $159.9 million, down from $238.4 million in the 2024 quarter.

In terms of coal operations, sales volumes decreased in both the Illinois Basin and Appalachia. Illinois Basin coal operations saw a 6.1% decrease in tons sold, while Appalachia experienced a 22.7% decrease compared to the 2024 quarter. The segment adjusted EBITDA for the coal operations decreased by 33.5% in the 2025 quarter compared to the 2024 quarter but increased by 29.0% compared to the sequential quarter.

In the royalties segment, the coal royalties segment's adjusted EBITDA decreased to $9.4 million in the 2025 quarter compared to $12.4 million in the 2024 quarter. On the other hand, the oil & gas royalties segment's adjusted EBITDA decreased to $29.9 million in the 2025 quarter compared to $31.4 million in the 2024 quarter.

ARLP's total debt and finance leases outstanding were $484.1 million as of March 31, 2025, with total liquidity of $514.3 million, including $81.3 million of cash and cash equivalents. Additionally, ARLP held 513 bitcoins valued at $42.3 million as of March 31, 2025.

The company's board approved a cash distribution to unitholders for the 2025 quarter of $0.70 per unit, consistent with the cash distributions for the 2024 quarter and sequential quarter.

Looking ahead, ARLP provided updated guidance for the full year ending December 31, 2025. The guidance includes expectations for coal sales volumes, sales price per ton sold, and segment adjusted EBITDA expense per ton sold for both the Illinois Basin and Appalachia, as well as oil & gas royalties and coal royalties.

CEO Joseph W. Craft III commented on the company's performance, emphasizing anticipated cost improvements in the Illinois Basin and meaningful improvement in mining conditions for the rest of the year in Appalachia. He also highlighted the company's active contracting front, securing 17.7 million tons of additional contract commitments over the 2025-2028 time period. Craft also mentioned the impact of President Trump's recent executive orders to expand domestic coal-fired generation, citing increased domestic electricity demand forecasts, which he believes will benefit ARLP.

The market has reacted to these announcements by moving the company's shares 3.4% to a price of $28.06. For the full picture, make sure to review Alliance Resource's 8-K report.

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