Alliance Resource Partners (NASDAQ:ARLP) Issues Quarterly Earnings Results

Alliance Resource Partners (NASDAQ:ARLP) released its quarterly earnings data on Monday. The energy company reported $0.65 EPS for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.01), Zacks reports. The firm had revenue of $551.56 million during the quarter, compared to analysts’ expectations of $554.30 million. Alliance Resource Partners had a return on equity of 17.61% and a net margin of 12.25%.

Here are the key takeaways from Alliance Resource Partners’ conference call:

• Second-quarter results improved significantly: Revenue rose to $551.6 million, net income increased 33.9% year over year to $79.6 million, and adjusted EBITDA grew 14.7% to $185.7 million, driven by higher coal volumes, lower costs, record oil and gas royalties, and stronger equity-method investments.
• Coal operations are positioned for a stronger second half. Tunnel Ridge productivity improved, Hamilton returned to production in mid-May, and no further longwall moves are expected until 2027; management expects roughly 9 million tons of sales in each remaining quarter and further cost reductions.
• Forward coal sales and power-market conditions remain supportive. ARLP secured 21.2 million tons of new commitments and is essentially fully contracted at the midpoint of 2026 guidance, with 29.4 million tons committed and priced for 2027; management also cited tight PJM capacity and rising data-center electricity demand as potential demand drivers.
• Oil and gas royalties delivered record results and expanded through AllDale III and IV. Royalty revenue increased 31.1% year over year, and the $206.2 million acquisition is expected to be immediately accretive, increasing estimated distributable cash flow per unit by 8%–9% in 2027.
• Coal pricing is declining as higher-priced legacy contracts roll off, while acquisition-related borrowings increase leverage. Appalachia’s realized price fell to $63.57 per ton, and ARLP funded the AllDale purchase partly with a new $150 million term loan; management said debt reduction and financial flexibility will be priorities.

Alliance Resource Partners Stock Performance

Shares of NASDAQ:ARLP opened at $25.91 on Wednesday. The business’s 50-day simple moving average is $24.70 and its 200 day simple moving average is $25.53. The company has a market cap of $3.33 billion, a P/E ratio of 12.64 and a beta of 0.23. The company has a debt-to-equity ratio of 0.24, a quick ratio of 0.95 and a current ratio of 1.46. Alliance Resource Partners has a one year low of $22.20 and a one year high of $29.45.

Alliance Resource Partners Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, August 7th will be issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 9.3%. The ex-dividend date is Friday, August 7th. Alliance Resource Partners’s dividend payout ratio (DPR) is presently 126.32%.

Institutional Trading of Alliance Resource Partners

Several large investors have recently bought and sold shares of the company. State of Tennessee Department of Treasury purchased a new stake in shares of Alliance Resource Partners during the fourth quarter valued at approximately $209,000. Progeny 3 Inc. grew its holdings in Alliance Resource Partners by 0.3% during the 4th quarter. Progeny 3 Inc. now owns 3,282,671 shares of the energy company’s stock valued at $76,256,000 after purchasing an additional 8,290 shares in the last quarter. Cetera Investment Advisers increased its stake in Alliance Resource Partners by 19.7% during the 4th quarter. Cetera Investment Advisers now owns 67,950 shares of the energy company’s stock worth $1,578,000 after buying an additional 11,204 shares during the period. Jump Financial LLC purchased a new stake in Alliance Resource Partners during the 4th quarter worth $1,264,000. Finally, Captrust Financial Advisors purchased a new stake in Alliance Resource Partners during the 4th quarter worth $515,000. Institutional investors and hedge funds own 18.11% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ARLP. Weiss Ratings upgraded Alliance Resource Partners from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday. Wall Street Zen lowered shares of Alliance Resource Partners from a “buy” rating to a “hold” rating in a report on Saturday, April 4th. Finally, Zacks Research raised shares of Alliance Resource Partners from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Alliance Resource Partners currently has a consensus rating of “Buy” and an average price target of $30.00.

Alliance Resource Partners Company Profile

Alliance Resource Partners, L.P. (NASDAQ: ARLP) is a Tulsa, Oklahoma–based master limited partnership engaged in the production, marketing and transportation of bituminous coal. Through its subsidiaries, the company develops, owns and operates surface and underground coal mines, providing fuel primarily for electric power generation and various industrial applications. Alliance’s integrated business model covers the extraction of raw coal, processing at preparation plants and delivery to domestic and export customers.

The partnership operates multiple mining complexes across Illinois, Indiana, Kentucky and West Virginia.