Alliance Resource Partners LP

Latest Results (29.06.2026):

Alliance Resource Partners, L.P. reported results for the quarter ended March 31, 2026 (the first quarter of 2026). Total revenue was $516.0 million and Adjusted EBITDA was $155.0 million. Net income attributable to ARLP fell to $9.1 million ($0.07 per unit) in Q1 2026, down materially year‑over‑year, driven by lower coal pricing, higher depreciation and notable non‑cash items; however, the Partnership reported record oil & gas royalty revenues and volumes and declared a quarterly cash distribution of $0.60 per unit.

Top-line and profitability

Total revenues: $516.0M in Q1 2026, down 4.5% versus Q1 2025. Net income attributable to ARLP was $9.1M ($0.07/unit) versus $74.0M ($0.57/unit) in Q1 2025. Adjusted EBITDA was $155.0M, down 3.1% year‑over‑year and down 18.9% versus the prior (Dec 2025) quarter.

Coal volumes and pricing

Total coal tons sold were 7.86 million in Q1 2026 (up 1.1% YoY, down 3.1% sequentially). Average coal sales price per ton was $56.40 (down ~6.5% YoY), with Illinois Basin prices and Appalachia prices both lower YoY; planned longwall moves (Hamilton, Tunnel Ridge) and weather/shipment disruptions affected production and costs.

Oil & gas royalties — record quarter

Oil & gas royalty BOE sold were 1.022M (up 16.1% YoY) and average sales price per BOE was $40.47. Oil & gas royalty Segment Adjusted EBITDA was $34.6M (up ~15.8% YoY), driven by higher volumes, stronger drilling/completions activity and recent mineral interest acquisitions ($16.2M of acquisitions completed in the quarter).

Non‑cash items and impairments

Q1 2026 included an $11.6M decrease in the fair value of digital assets and a $37.8M non‑cash asset impairment charge related to ceasing longwall production and uncertainty at the Mettiki mine; depreciation, depletion & amortization rose to $82.4M (from $68.6M in Q1 2025).

Liquidity and balance sheet

As of March 31, 2026 total debt and finance leases outstanding were $507.7M. Total liquidity was $431.2M (cash $28.9M + $402.3M available under revolver/securitization). The Partnership held 618 bitcoins valued at $42.2M at quarter end. Reported total leverage = 0.73x; net leverage = 0.69x (debt / trailing 12‑month Adjusted EBITDA).

Distributions and coverage

Board declared quarterly cash distribution of $0.60 per unit (annualized $2.40/unit), payable May 15, 2026. Distributable Cash Flow for Q1 2026 was $77.8M versus distributions paid of $78.0M, producing a distribution coverage ratio ~1.00 for the quarter.

Cash flow and capital spending

Cash flows from operating activities were $105.5M for Q1 2026. Capital expenditures totaled $95.7M in the quarter. Free cash flow (operating cash flow less capex and related payables) was $13.3M for the quarter. Full‑year 2026 capex guidance is $280–$300M.

Updated 2026 outlook

ARLP said >95% of 2026 expected coal sales volumes are committed and priced (at the midpoint of guidance). Full‑year 2026 guidance includes total coal sales 33.75–35.25 million tons, average total coal price $54–$56/ton, oil production guidance ~1.6–1.7M barrels, natural gas 6.6–7.0M MCF, D&A $315–$325M, and total capex $280–$300M.

Operational drivers and risks

Management noted weather‑related shipment disruptions (Winter Storm Fern) and planned longwall moves increased per‑ton costs in Q1 but expects recovery over the year; oil & gas royalties continue to provide revenue diversification and upside given an unhedged portfolio that benefits from higher commodity prices.