Lower earnings were reported in the first quarter by Alliance Resource Partners, L.P., the major coal firm headquartered in Tulsa.
Total revenues decreased 4.5% to $516.0 million for the 2026 Quarter compared to $540.5 million for the 2025 Quarter primarily due to lower coal sales pricing, partially offset by record oil & gas royalty revenues and higher coal sales volumes, reported the company in its earnings release on Monday.
Revenues also dropped from the fourth quarter of 2025. Compared to the Sequential Quarter, total revenues decreased by 3.6% due to lower coal sales volumes and prices, partially offset by higher oil & gas royalty revenues. Net income decreased by 89.0% compared to the Sequential Quarter, reported the company.
Net income for the 2026 Quarter was $9.1 million, or $0.07
per basic and diluted limited partner unit, compared to $74.0 million, or $0.57 per basic and diluted limited partner unit, for the 2025 Quarter. Net income was impacted by lower coal sales and higher depreciation, as well as an $11.6 million decrease in the fair value of the company’s digital assets and a $37.8
million non-cash asset impairment charge in the 2026 Quarter due to ceasing longwall production and uncertainty regarding future operations at itsMettiki mine.
Adjusted EBITDA decreased 3.1% to $155.0 million in the 2026 Quarter compared to $159.9 million in the 2025 Quarter.
Alliance reports its expected coal sales volumes are more than 95% committed and already priced at the midpoint of 2026 guidance. Plus, it recorded record oil and gas royalty revenues and volumes in the first quarter, showing an increase of 14.6% in revenues and a gain of 16.1% in volumes compared to a year earlier.
While Alliance is primarily a coal-mining focused company, it also completed $16.2 million in oil and gas mineral interest acquisitions during the first quarter of the year. It also declared a quarterly cash distribution of 60 cents per unit or $2.40 per unit annualized.
“Most of our coal operations performed better than expected during the quarter, however meaningful weather-related shipment disruptions relating to Winter Storm Fern delayed sales volumes for the quarter,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer.
He cited increased mining activity in the Illinois Basin while its Mettiki mine reflected lower production. The Mettiki Mine (Mountain View Complex) in Garrett County, Maryland, and Tucker County, WV, is closing permanently in early 2026, with production ceasing immediately and nearly 200 layoffs reported. Operated by Alliance Resource Partners, the underground mine lost its primary customer in 2025, halting operations at the last coal mine in Tucker County.
“We delivered another record quarter in our oil & gas royalties segment, driven by increased production volumes and higher oil prices. Increased drilling and completion activity across our core basins continues to validate the quality of our mineral portfolio, and for the second consecutive quarter, we expanded our portfolio, completing $16.2 million in acquisitions during the
quarter,” Craft added.