Tulsa’s major coal and energy firm, Alliance Resource Partners, L.P. is seeing better days. The company reported improved financial and operating performance for the quarter ended December 31, 2020 compared to the quarter ended September 30, 2020 .
Increased coal sales and oil & gas royalty revenues drove total consolidated revenues higher by 3.1% to $366.5 million compared to the Sequential Quarter. Higher revenues led to increased net income and EBITDA, which rose 28.8% to $35.0 million and 2.1% to $121.4 million, respectively, each compared to the Sequential Quarter.
“Throughout the year, the entire Alliance organization remained laser-focused on protecting our financial position and liquidity by optimizing cash flow, reducing debt and working capital and controlling capital expenditures and expenses, which yielded impressive results,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer.
Total revenues in the 2020 Quarter were 19.2% lower compared to the quarter ended December 31, 2019, reflecting the impacts of reduced global energy demand resulting from the COVID-19 pandemic. Lower revenues were more than offset by ARLP’s expense reduction initiatives implemented during 2020 in response to the pandemic, leading to a 35.6% increase in net income for the 2020 Quarter compared to the 2019 Quarter. EBITDA declined by 3.8% compared to the 2019 Quarter due to lower oil & gas volumes and prices in the 2020 Quarter.
COVID-19 still caused a 32.3% drop in total revenues for 2020 to $1.33 billion. The company also took a $132 million impairment charge resulting in a net loss of $129.2 million.
Excluding the impact of non-cash items, Adjusted net income and Adjusted EBITDA for the 2020 Year decreased to $27.8 million and $386.7 million, respectively, compared to $244.6 million and $599.0 million, respectively, for the 2019 Year.
Craft said the company’s coal operations responded accordingly and ended up with positive income for the company.
“Our coal operations demonstrated their flexibility and resiliency by adjusting production in response to rapidly changing circumstances, all while implementing enhanced health and safety protocols designed to mitigate the impact of the virus,” he said.
In the past year, Alliance reduced capital expenditures by more than 60% totaling nearly $185 million; reduced operating expenses by more than 27% or $322 million; and reduced total debt by nearly 25% or $197 million.
It also generated nearly $280 million in free cash flow which was a nearly 34% increase. The company also increased its liquidity by 81% or about $220 million.
Source: BusinessWire
