Tulsa-based Alliance Resource Partners, considered one of the major coal mining companies in the nation, reported increased total revenues in the third quarter, but also lower net income.
The company released its earnings report on Friday showing total revenues of $636.5 million compared to $632.5 million a year earlier. The slight gain was attributed to higher transportation and other revenues, partially offset by lower oil and gas royalties.
The company’s net income was $153.7 million or $1.18 per basic and diluted limited partner unit, down from $167.7 million or $1.25 per basic unit for the 2022 quarter. The firm blamed increased total operating expenses partially offset by higher interest income and lower income tax expense.
EBITDA for the latest quarter was $227.6 million compared to $253.8 million in the 2022 quarter.
Total revenues for the quarter dropped 0.8% compared to the second quarter of the year due to lower coal sales volumes. Sales were 8.5 million tons sold compared to 8.9 million in the second quarter. Coal prices were slightly higher, up 3.2% to $64.94 per ton.
For the first nine months, Alliance saw an increase in financial and operating results,mostly because coal sales prices and coal sales revenues were higher by 16.8% and 14.8% compared to a year ago. The company also saw higher net income and EBITDA by 39.4% and 14.1% respectively, both as compared to the 2022 period.
“Our well-contracted coal order book enabled us to navigate an otherwise challenging operating environment during the 2023 Quarter,” commented Joseph W. Craft III, Chairman, President and Chief Executive Officer.
He cited “difficult mining conditions in Appalachia” at all three mines during the quarter which resulted in higher quarter costs and fewer tons produced.
But the company’s Oil and Gas Royalties segment had continued growth resulting in record production volumes, largely due to the company’s recent acquisitions in core parts of the prolific Permian Basin.
Alliance also revealed it had made direct investments in two other companies, Ascend Elements, a maker of advanced battery materials using elements reclaimed from discard lithium-ion batteries, and in Infiitum. from discarded lithium-ion batteries and in electric motor company Infinitum.
Craft did not reveal the extent of the investments, but explained, more might be coming in the future.
” Beyond our direct investments, we are actively engaged in discussions with both companies to explore additional strategic opportunities intended to unlock value and growth for our unitholders.”
