ALLIANCE RESOURCE PARTNERS, L.P. (ARLP) Quarterly Report (10-Q)
Alliance Resource Partners, L.P. (ARLP) reported its financial results for the quarter ended March 31, 2025. The company’s revenue increased by 12% to $444.1 million, driven by higher coal sales volumes and prices. Net income rose to $34.1 million, or $0.26 per limited partner unit, compared to $24.5 million, or $0.19 per limited partner unit, in the same period last year. The company’s cash flow from operations was $143.1 million, and its cash and cash equivalents balance stood at $234.1 million. ARLP’s debt-to-equity ratio remained stable at 1.34:1, and its liquidity ratio improved to 1.43:1. The company’s financial performance was driven by its coal mining operations, which benefited from higher coal prices and increased demand.
Summary
Financial Performance Overview:
- Total revenues decreased 17.1% to $540.5 million in Q1 2025 compared to Q1 2024, primarily due to reduced coal sales volumes and prices as well as lower transportation revenues.
- Coal sales decreased 16.6% to $468.5 million, driven by lower tons sold and lower average coal sales prices.
- Segment Adjusted EBITDA Expense decreased 3.4% to $346.2 million, with the coal operations segment decreasing 6.2% to $332.2 million.
- Net income attributable to ARLP decreased 53.2% to $74.0 million, primarily due to lower revenues and a decrease in the fair value of digital assets.
- Segment Adjusted EBITDA decreased 30.7% to $180.5 million.
Segment Performance:
- Illinois Basin Coal Operations Segment Adjusted EBITDA decreased 10.1% to $126.2 million due to lower coal sales volumes and prices, partially offset by lower operating expenses.
- Appalachia Coal Operations Segment Adjusted EBITDA decreased 79.0% to $15.6 million due to lower coal sales volumes and price realizations.
- Oil & Gas Royalties Segment Adjusted EBITDA decreased 4.8% to $29.9 million due to reduced oil & gas royalty volumes and higher expenses.
- Coal Royalties Segment Adjusted EBITDA decreased 24.5% to $9.4 million due to lower royalty tons sold and reduced average royalty rates.
Liquidity and Capital Resources:
- Existing cash, future cash flows, and available financing sources are expected to be sufficient to meet working capital requirements, capital expenditures, debt payments, and distribution payments.
- The company has a $93.5 million unit repurchase program, with $80.6 million remaining as of March 31, 2025.
- Anticipated total capital expenditures for 2025 are estimated between $285.0 million to $320.0 million.
Overall, the company experienced a decline in financial performance in Q1 2025 compared to the prior year period, primarily driven by lower coal sales volumes and prices, as well as a decrease in the fair value of digital assets. The company maintains a strong liquidity position to fund its operations and growth strategies.
