Thursday, April 11, 2024
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, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Updating estimates. We have lowered our 2024 EBITDA and EPU estimates to $841.1 million and $3.90 from $846.9 million and $3.98, respectively. Among our revisions, we have lowered our coal price assumptions, increased our expense estimates, and made minor changes in our unit count. Our estimates remain within the partnership’s guidance ranges and are summarized within this report.
New officer appointment. Mr. Steven Schnitzer recently joined the general partner of ARLP as Senior Vice President, General Counsel and Secretary. Mr. Schnitzer was involved in the 1996 leveraged buy-out of MAPCO Coal, now Alliance Resource Partners, and regularly represented the partnership until 2014 when he left private practice. His experience working with companies in the natural resources and energy transition fields will be helpful as Alliance pursues growth opportunities within and outside its traditional businesses. Most recently, Mr. Schnitzer served as Chief Legal Officer and Secretary of a commercial and industrial solar generation and battery storage developer.
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*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.