Research News and Market Data on Alliance Resource Partners
April 28, 2025
2025 Quarter Highlights
- Total revenue of $540.5 million, net income of $74.0 million, and Adjusted EBITDA of $159.9 million
- $57.7 million increase in net income and $36.0 million increase in Adjusted EBITDA compared to the Sequential Quarter
- Added 17.7 million tons of contract commitments over the 2025 – 2028 time period
- 2025 expected coal sales volumes over 96% committed and priced
- Declares quarterly cash distribution of $0.70 per unit, or $2.80 per unit annualized
TULSA, Okla.–(BUSINESS WIRE)– Alliance Resource Partners, L.P. (NASDAQ: ARLP) (“ARLP” or the “Partnership”) today reported financial and operating results for the quarter ended March 31, 2025 (the “2025 Quarter”). This release includes comparisons of results to the quarter ended March 31, 2024 (the “2024 Quarter”), and to the quarter ended December 31, 2024 (the “Sequential Quarter”). All references in the text of this release to “net income” refer to “net income attributable to ARLP.” For a definition of Adjusted EBITDA and related reconciliation to its comparable GAAP financial measure, please see the end of this release.
Total revenues in the 2025 Quarter decreased 17.1% to $540.5 million compared to $651.7 million for the 2024 Quarter primarily as a result of reduced coal sales volumes and prices as well as lower transportation revenues. Net income for the 2025 Quarter was $74.0 million, or $0.57 per basic and diluted limited partner unit, compared to $158.1 million, or $1.21 per basic and diluted limited partner unit, for the 2024 Quarter as a result of lower revenues and a decrease in the fair value of our digital assets, partially offset by lower operating expenses. Adjusted EBITDA for the 2025 Quarter was $159.9 million compared to $238.4 million in the 2024 Quarter.
Compared to the Sequential Quarter, net income in the 2025 Quarter increased by $57.7 million as a result of higher oil & gas royalty revenues, which increased 18.7%, improved per ton costs at our coal operations, lower depreciation, and an asset impairment charge in the Sequential Quarter. Partially offsetting these increases, coal sales volumes declined 7.7% and the fair value of our digital assets decreased compared to the Sequential Quarter. Adjusted EBITDA for the 2025 Quarter increased 29.0% compared to the Sequential Quarter.
CEO Commentary
“Our overall operations performed as anticipated during the quarter, delivering sequential and year-over-year cost improvements in the Illinois Basin,” commented Joseph W. Craft III, Chairman, President and CEO. “In Appalachia, we expect meaningful improvement in mining conditions for the rest of the year, leading to increased production and lower costs to fall within our 2025 full year guidance range.”
Mr. Craft continued, “We were active on the contracting front, securing 17.7 million tons of additional contract commitments over the 2025-2028 time period. For 2025, we now have over 96% of our projected midpoint coal sales volumes contractually committed. The domestic market strengthened considerably in early 2025 due to the cold winter season, higher natural gas prices, diminishing coal inventories, and upward revisions in electricity demand forecasts from our customers, who continue to recognize ARLP as a trusted partner for their critical baseload fuel requirements.”
Mr. Craft concluded, “On April 8, 2025, President Trump signed four Executive Orders to expand domestic coal-fired generation, seeking affordable electricity for the American people and grid stability in anticipation of growing energy demand which is critical for our country’s national security interests. The Executive Order addressing grid reliability cited that rapid technological advancements, an expansion of AI data centers, and increased domestic manufacturing are driving an unprecedented surge in electricity demand and placing a significant strain on our nation’s electric grid. The White House now forecasts that U.S. electricity demand is expected to rise 16% over the next five years, three times the growth forecasted just a year ago.”