Alliance Resource Partners Reports Strong Third Quarter Results
The efforts of the Trump administration to promote coal-fired and fossil-fuel-powered energy in the United States have apparently paid off for Tulsa’s Alliance Resource Partners. The company, considered one of the largest eastern coal-mining firms, reported third quarter total revenues decreased 6.9% to $571.4 million in the 2025 Quarter, compared to $613.6 million for the 2024 Quarter. The decline was primarily due to a lower coal sales price per ton, which dropped 7.5%, and reduced transportation revenues.
However, the company’s net income increased by 60.1%, totaling $95.1 million. The adjusted EBITDA reached $185.8 million, an increase of 14.8% compared to last year’s period.
Coal sales increased to 8.7 million tons, while coal production reached 8.4 million tons. For the 2025 Quarter, net income increased 10.2%, to $95.1 million, or $0.73 per basic and diluted limited partner unit, compared to $86.3 million, or $0.66 per basic and diluted limited partner unit for the 2024 Quarter. The increase resulted from reduced operating expenses and higher investment income, partially offset by lower revenues.
Leadership Statement and Coal Market Performance
“Alliance delivered strong operational and financial performance in the third quarter, with results tracking inline with our expectations,” commented Joseph W. Craft III, Chairman, President, and CEO.
Craft has been President, Chief Executive Officer, and a Director since August 1999, Chairman of the Board since January 1, 2019, and indirectly owns the company’s general partner.
President Craft continued, “Coal production of 8.4 million tons increased 8.5% year-over-year and 3.8% sequentially, while sales volumes of 8.7 million tons grew approximately 3.9% year-over-year and sequentially. The significant infrastructure investments we have made over the past three years are beginning to pay off.”
The company moved to take advantage of the PJM grid problems by investing $22.1 million as part of a $25 million commitment in a limited partnership that indirectly acquired a coal-fired plant in the grid’s service area.
Strategic Investment and Energy Market Outlook
Craft said the decision positioned Alliance Resource Partners to directly benefit from tightening power markets and growing demand for reliable baseload generation. “This is a near-term, income-producing investment expected to generate attractive cash-on-cash returns in 2026 and beyond,” he said.
Outlook for Fourth Quarter and 2026
“We expect the operating and financial results for the fourth quarter to equal our outstanding 2025 Quarter results,” Craft commented. “Therefore, we are tightening our guidance ranges for coal sales volumes and per ton expenses, reflecting steady operational execution and continued cost improvements across our mines.”
In the company’s Oil & Gas Royalties segment, Craft said, “We are adjusting our BOE volume guidance to reflect the timing of a multi-well pad in the Delaware Basin of the Permian, which is now expected to come online in early 2026.”
Craft also indicated that declining oil prices might impact volumes and oil and gas royalty revenue in the short term, but improved natural gas forward curves will offset the decline.
He continued, “Due to normalized utility inventories and unprecedented demand growth from data centers, analysts we follow are projecting 4–6% annual growth in electricity demand in PJM and other markets we serve. As a result, we believe Alliance has the opportunity and is well-positioned to increase production at Tunnel Ridge and the Illinois Basin operations in 2026.”
