ARLP Reports 17.1% Revenue Drop

By Tamara Parker • Monday, April 28 15:13 • Permanent Link

Alliance Resource Partners, L.P. (ARLP) reported their first-quarter financial and operating results for the period ended March 31, 2025. The company's total revenue decreased by 17.1% to $540.5 million compared to the same period in 2024, primarily due to reduced coal sales volumes and prices, as well as lower transportation revenues. However, net income for the 2025 quarter increased by $57.7 million compared to the sequential quarter, reaching $74.0 million.

Adjusted EBITDA for the 2025 quarter was $159.9 million, representing a significant increase of $36.0 million compared to the sequential quarter. The company added 17.7 million tons of contract commitments over the 2025 – 2028 time period, and the expected coal sales volumes for 2025 are over 96% committed and priced.

In terms of coal operations, there was a decrease in tons sold from the Illinois Basin and Appalachia. In the Illinois Basin, tons sold decreased by 6.1% compared to the 2024 quarter and by 8.4% compared to the sequential quarter. Similarly, in Appalachia, tons sold decreased by 22.7% compared to the 2024 quarter and by 4.9% compared to the sequential quarter.

The coal sales price per ton sold decreased by 4.2% in the Illinois Basin compared to the 2024 quarter, and by 8.5% in Appalachia. However, the segment adjusted EBITDA expense per ton achieved cost reductions in both regions. In the oil & gas royalties segment, the segment adjusted EBITDA decreased slightly, while in the coal royalties segment, it also decreased due to lower royalty tons sold and reduced average royalty rates.

ARLP's total debt and finance leases outstanding were $484.1 million as of March 31, 2025, with total liquidity of $514.3 million. The company also held 513 bitcoins valued at $42.3 million as of the same date.

The company declared a quarterly cash distribution of $0.70 per unit, consistent with the distributions for the 2024 quarter and sequential quarter. Additionally, ARLP provided updated guidance for the full year ending December 31, 2025, including coal sales price per ton sold and segment adjusted EBITDA expense per ton sold.

Overall, ARLP's CEO, Joseph W. Craft III, expressed optimism about the future, anticipating increased production and lower costs in Appalachia for the rest of the year. He also highlighted the significance of the recent executive orders signed by President Trump to expand domestic coal-fired generation, which is expected to impact the company's future operations positively.

As a result of these announcements, the company's shares have moved 2.1% on the market, and are now trading at a price of $27.71. For the full picture, make sure to review Alliance Resource's 8-K report.

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