Coal sales drive improved 2Q for Tulsa’s Alliance Resource Partners

Is Alliance Resource Partners, L.P. (ARLP) Stock About to Get Hot Thursday?

 

Tulsa’s Alliance Resource Partners, L.P. reported increased financial and operating results for the second quarter that ended June 30 compared to the first quarter of 2021.

Led by higher coal sales volumes and oil & gas prices, ARLP’s total revenues increased 13.8% to $362.4 million, net income jumped 77.9% to $44.0 million and EBITDA rose 25.7% to $118.6 million, all as compared to the Sequential Quarter.

“ARLP’s performance during the 2021 Quarter was exceptional as we posted increases to key financial and operating metrics,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer.

For the company’s coal operations, increased sales tons led coal sales revenues and Segment Adjusted EBITDA higher by 13.4% and 25.7%, respectively, compared to the Sequential Quarter.

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“Coal sales volumes increased 1.0 million tons as weather-impacted shipment delays in the Sequential Quarter were shipped during the 2021 Quarter and we significantly strengthened our contract book by securing new commitments to deliver approximately 5.0 million tons over the balance of this year and an additional 3.7 million tons for delivery in 2022 through 2024,” stated Craft.

Financial and operating results for the 2021 Quarter and the six months ended June 30, 2021 were significantly improved and the six months ended June 30, 2020 compared to the quarter ended June 30, 2020 , which were impacted by reduced global energy demand and weak commodity prices as a result of lockdown measures imposed in response to the COVID-19 pandemic.

Increased coal sales volumes and oil & gas prices drove total revenues higher in the 2021 Quarter by 42.0% to $362.4 million, compared to $255.2 million for the 2020 Quarter. Higher revenues, partially offset by increased operating expenses, led net income to jump by $90.7 million to $44.0 million for the 2021 Quarter, or $0.34 per basic and diluted limited partner unit, compared to a net loss of $46.7 million, or $(0.37) per basic and diluted limited partner unit, for the 2020 Quarter. EBITDA also increased 145.9% in the 2021 Quarter to $118.6 million compared to $48.2 million in the 2020 Quarter.

ARLP also announced that the Board of Directors of its general partner declared a cash distribution to unitholders of $0.10 per unit (an annualized rate of $0.40 per unit) for the 2021 Quarter, payable on August 13, 2021 to all unitholders of record as of the close of trading on August 6, 2021. The announced distribution is equal to the distribution declared for the Sequential Quarter.

Click here for press release.

 

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