Alliance Resource Partners (ARLP) – A Harbinger of Things to Come?


Monday, January 30, 2023

ARLP is a diversified natural resource company that generates operating and royalty income from coal produced by its mining complexes and royalty income from mineral interests it owns in strategic oil & gas producing regions in the United States, primarily the Permian, Anadarko and Williston basins. ARLP currently produces coal from seven mining complexes its subsidiaries operate in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States. In addition, ARLP is positioning itself as an energy provider for the future by leveraging its core technology and operating competencies to make strategic investments in the fast growing energy and infrastructure transition.

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Quarterly cash distribution increased 40%. For the December 2022 quarter, ARLP unit holders will receive a cash distribution of $0.70 per unit, or $2.80 on an annualized basis, payable on February 14, 2023 to unit holders of record as of the February 7, 2023 close. The announced distribution represents a 180% increase over the cash distribution of $0.25 per unit for the quarter ended December 31, 2021 and a 40% increase over the cash distribution of $0.50 per unit for the quarter ended September 30, 2022. We had assumed the quarterly cash distribution would be increased to $0.55.

Fourth quarter and full year 2022 financial results. ARLP will report financial results for the fourth quarter and full year 2022 before the market opens on Monday, January 30, 2023. Management will host a conference call for investors at 10:00 am ET on the same day.


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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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