Coal, oil and gas gains boost revenue for Alliance Resources

Alliance Resource Partners 3Q earnings down from 2019 | The Journal Record


With the help of higher coal sales nationwide, Tulsa’s Alliance Resource Partners, L.P., one of the country’s major coal-mining operators reported increased financial and operating results for the quarter ended March 31 of this year.

The company announced that total revenues increased nearly 45% to $460.9 million compared to $318.6 million for the quarter that ended March 31, 2021. Alliance said coal sales rose 19.5% and prices were up 13%.

Net income for the quarter totaled $36.7 million or 28 cents a basic share.

“Buoyed by robust energy market fundamentals during the 2022 Quarter, ARLP delivered strong operating and financial performance with coal and oil & gas sales volumes, total revenues, net income and EBITDA all increasing significantly over the 2021 Quarter,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer.

“Our coal operations performed exceptionally well, particularly in light of the transportation challenges experienced during the 2022 Quarter, which resulted in delayed shipments of approximately 1.1 million tons.”

4Q results to be released by Alliance Resource Partners – Oklahoma Energy  Today

The company’s investment in oil and gas production also boosted its revenues. Alliance’s oil and gas royalty volumes were up 26.3% and prices jumped nearly 75%.

But inflation also resulted in an increase in operating expenses which rose to $373 million in the quarter compared to more than $282 million a year ago. Income before income taxes grew 221% to $79.7 million in the quarter, up from the nearly $25 million reported in the same quarter of 2021.

Reflecting higher revenues, partially offset by increased total operating and income tax expenses, net income for the 2022 Quarter increased to $36.7 million, or $0.28 per basic and diluted limited partner unit, compared to $24.7 million, or $0.19 per basic and diluted limited partner unit, for the 2021 Quarter. EBITDA also increased 61.5% in the 2022 Quarter to $152.3 million compared to $94.3 million in the 2021 Quarter.

Compared to the quarter ended December 31, 2021, total revenues decreased by 2.7% primarily as a result of lower coal sales volumes due to previously reported coal shipment delays, partially offset by higher coal sales price realizations and increased oil & gas royalty volumes and prices.

Total operating expenses decreased 9.5% to $373.0 million due primarily to lower coal sales volumes in the 2022 Quarter and expenses incurred in the Sequential Quarter related to an $11.8 million buy-out of a coal contract and $6.8 million of unfavorable year end non-cash actuarial and accrual adjustments. Lower total operating expenses more than offset reduced revenues leading income before income taxes higher by 52.5% to $79.7 million in the 2022 Quarter compared to $52.2 million for the Sequential Quarter.

As previously announced on April 26, 2022, the Board of Directors of ARLP’s general partner increased the cash distribution to unitholders for the 2022 Quarter to $0.35 per unit (an annualized rate of $1.40 per unit), payable on May 13, 2022, to all unitholders of record as of the close of trading on May 6, 2022.

The announced distribution represents a 250.0% increase over the cash distribution of $0.10 per unit for the 2021 Quarter and a 40.0% increase over the cash distribution of $0.25 per unit for the Sequential Quarter.

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