Alliance Resource Partners, L.P. announced a more than 39% increase in its third quarter earnings as they reached nearly $356 million.
The Tulsa-based company said its net income rose 158% to $27.2 million or 21 cents a basic share and EBITDA climbed 146% to $118.8 million as compared to the second quarter of 2020.
The company credited improved coal demand and a resumption of production at all of its mining complexes. Its coal operations delivered a 48% increase in coal sales and a 67% growth in production volumes.
Alliance’s oil and gas production increased nearly 14% while its price per barrel of oil equivalent rose 9.5%. As a result, the firm’s total revenues from oil and gas royalties and lease bonuses were up by nearly 24%.
Despite the increases, the company’s results were still lower than the third quarter of 2019. Total revenues of $355.7 million in this year’s third quarter were down from the nearly $465 million reported for the third quarter of 2019.
The company’s net income of $27 million compared to $39 million and 30 cents a share in the third quarter of 2019.
“As we expected, ARLP’s performance during the 2020 Quarter benefited from improved economic activity, increased coal demand and recovering oil & gas production volumes and prices,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer. “Stronger commodity prices led oil & gas operators to bring previously shut-in wells back online and slowly resume drilling and completion of wells on our mineral interests.”
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Source: BusinessWire