- Alliance Resource Partners, L.P. (ARLP, Financial) reported first-quarter results for 2025 with a total revenue of $540.5 million.
- The company declared a quarterly cash distribution of $0.70 per unit or $2.80 annualized.
- Net income increased by $57.7 million compared to the previous quarter, reaching $74.0 million.
Alliance Resource Partners, L.P. (ARLP) has announced its first-quarter financial results for 2025 with a reported total revenue of $540.5 million. This marks a 17.1% decrease compared to the first quarter of 2024, attributed primarily to reduced coal sales volumes and prices, as well as lower transportation revenues.
Net income for the 2025 Quarter stood at $74.0 million, or $0.57 per basic and diluted limited partner unit, reflecting a significant improvement of $57.7 million from the previous quarter. This improvement was driven by higher oil and gas royalty revenues and cost improvements in coal operations.
The company also declared a quarterly cash distribution of $0.70 per unit, maintaining a consistent annualized distribution rate of $2.80 per unit. This distribution will be payable on May 15, 2025, to all unitholders of record as of May 8, 2025.
CEO Joseph W. Craft III highlighted the successful contracting activity during the quarter, with 17.7 million tons of additional contract commitments secured for the 2025-2028 period. Over 96% of the projected coal sales volumes for 2025 are committed and priced.
Despite the challenges in coal sales volumes, ARLP's adjusted EBITDA for the quarter was reported at $159.9 million, showcasing a 29.0% increase from the sequential quarter due to cost improvements and increased oil and gas royalty revenues.
Looking ahead, ARLP updated its 2025 full-year guidance, anticipating coal sales volumes to exceed 30 million tons, with continued emphasis on securing contracts and managing costs despite declining sales prices. The outlook for the oil and gas royalty segment remains cautious due to lower crude oil pricing impacting revenues.
