Tulsa-based coal company Alliance Resource Partners, L.P reported reported Second Quarter Financial and Operating Results showing lower net income but increased sales of coal.
One sector which led to increased coal burning was the demand for electricity.
“Domestic market fundamentals remain constructive as higher natural gas prices, combined with higher power demand, have resulted in strong coal burns by our customers this year as dispatch economics for coal generation continue to improve,” said Joseph W. Craft III, Chairman, President and CEO.
“Year-to-date electricity generation in key eastern regions was up over 18% compared to last year and eastern utility inventories are 18% below prior year, nearing equilibrium for the first time since the summer of 2023. Key data points such as PJM’s record peak electricity demand in June, and the Department of Energy’s recent resource adequacy report are reinforcing the critical role of coal in maintaining grid reliability.”
Total revenues in the 2025 Quarter decreased 7.7% to $547.5 million compared to $593.4 million for the 2024 Quarter primarily as a result of reduced coal sales prices, which declined 11.3%, and lower transportation revenues, partially offset by increased coal sales volumes, which rose 6.8% to 8.4 million tons sold in the 2025 Quarter compared to 7.9 million tons sold in the 2024 Quarter.
Net income for the 2025 Quarter was $59.4 million, or $0.46 per basic and diluted limited partner unit, compared to $100.2 million, or $0.77 per basic and diluted limited partner unit, for the 2024 Quarter as a result of lower revenues, increased depreciation, and a $25.0 million non-cash impairment loss in the 2025 Quarter on a preferred equity investment in a battery materials company following the conversion of such preferred equity to common equity as part of a convertible note financing and recapitalization
during the quarter.
Adjusted EBITDA for the 2025 Quarter was $161.9 million compared to $181.4 million in the 2024 Quarter. Compared to the Sequential Quarter, total revenues increased by $7.0 million due primarily to increased coal sales volumes, which rose 7.9%, partially offset by lower coal sales prices per ton. Net income decreased by $14.6 million compared to the Sequential Quarter as a result of the $25.0 million impairment loss on an investment in the 2025 Quarter and increased operating and depreciation
expenses, partially offset by higher revenues and an increase in the fair value of our digital assets.
Craft said all operations of the company performed well in the quarter.
“Coal shipments of 8.4 million tons were up 6.8% compared to the 2024 Quarter and up 7.9% sequentially. We finished strong with our Hamilton and River View mines achieving monthly shipping records in June. We also continued to be active on the contracting front during the quarter, adding an incremental 17.4 million committed and priced sales tons for delivery between 2025 to 2029. This brings our total of new commitments secured this year to 35.1 million tons to be delivered over the next four and a half years, underscoring the value our customers place on quality, reliability, and counterparty strength.”
