Tulsa-based coal company Alliance Resource Partners L.P. released first quarter financial results showing a drop in coal production and a more than 17% plunge in total revenues. The company suffered declines in all categories of financial aspects of the quarter. But it’s hoping recent orders signed by President Trump will turn things around.
Revenues for the quarter dropped 17.1% to $540.5million compared to $651.7 million a year earlier as the company blamed “reduced coal sales volumes and prices as well as lower transportation revenues.” As a result, the firm, considered one of the largest Appalachian coal mining firms in the U.S., had net income of $74 million or 57 cents a basic share, way down from $158.1 million or $1.21 per share for the 2024 first quarter.
Adjusted EBITDA for the first quarter totaled $159.9 million compared to $238.4 million in the 2024 quarter. The one bit of good news for Alliance Resource Partners was a gain or $57.7 million in the first quarter compared to the fourth quarter of 2024 with the company crediting higher oil and gas royalty revenues which increased 18.7%. The firm also saw improved per ton costs at its coal operations, lower depreciation and an asset impairment charge in the Sequential Quarter.
However, coal sales volumes dropped nearly 8%.
“Our overall operations performed as anticipated during the quarter, delivering sequential and yearover-year cost improvements in the Illinois Basin,” commented Joseph W. Craft III, Chairman, President and CEO. “In Appalachia, we expect meaningful improvement in mining conditions for the rest of the year, leading to increased production and lower costs to fall within our 2025 full year guidance range.”
The company anticipates improvements for the remainder of the year as it has 96% of its projected midpoint coal sales volumes contractually committed. It also pointed to a stronger domestic market because of the cold winter season and higher natural gas prices.
As Chairman, Craft also pointed to the April 8 executive orders signed by President Trump to expand domestic coal-fired generation in anticipation of growing energy demand.
“The Executive Order addressing grid reliability cited that rapid technological advancements, an expansion of AI data centers, and increased domestic manufacturing are driving an unprecedented
surge in electricity demand and placing a significant strain on our nation’s electric grid. The White House now forecasts that U.S. electricity demand is expected to rise 16% over the next five years, three times the growth forecasted just a year ago.”
