Alliance Resource Partners(ARLP)

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Alliance Resource Partners(ARLP) - 2024 Q3 - Quarterly Report
2024-11-07 21:13
Financial Performance - Total revenues for Q3 2024 decreased by 3.6% to $613.6 million compared to $636.5 million in Q3 2023, primarily due to reduced coal sales prices and lower transportation revenues [140]. - Net income attributable to the company for Q3 2024 was $86.3 million, or $0.66 per unit, down from $153.7 million, or $1.18 per unit, in Q3 2023, reflecting lower revenues and increased operating expenses [143]. - Total revenues for the nine months ended September 30, 2024, decreased 4.3% to $1.86 billion compared to $1.94 billion for the same period in 2023, mainly due to lower coal sales and transportation revenues [159]. - Net income attributable to the company for the 2024 Period was $344.5 million, or $2.64 per unit, down from $514.7 million, or $3.93 per unit, in the 2023 Period [161]. Coal Operations - Coal sales decreased to $532.6 million in Q3 2024 from $549.1 million in Q3 2023, driven by a 2.1% decline in average coal sales prices and lower tons sold [144]. - Segment Adjusted EBITDA for coal operations increased by 10.9% to $386.3 million, with per ton costs rising 11.9% to $46.11 per ton sold in Q3 2024 [145]. - Segment Adjusted EBITDA decreased by $55.4 million to $192.3 million in Q3 2024 from $247.7 million in Q3 2023 [152]. - Segment Adjusted EBITDA for Illinois Basin Coal Operations decreased 13.4% to $114.6 million in Q3 2024 from $132.4 million in Q3 2023, primarily due to lower coal sales volumes and higher operating expenses [156]. - Appalachia Coal Operations saw a 49.9% decrease in Segment Adjusted EBITDA to $37.5 million in Q3 2024 from $74.8 million in Q3 2023, attributed to lower coal sales and higher operating expenses [157]. - Coal sales decreased to $1.61 billion for the 2024 Period compared to $1.69 billion for the 2023 Period, with a 3.6% decrease in sales volumes primarily due to reduced domestic demand [163]. - Segment Adjusted EBITDA Expense for coal operations increased 7.4% to $1.10 billion, with per ton costs rising 11.4% to $44.04 per ton sold in the 2024 Period [164]. - Illinois Basin Coal Operations reported a 2.9% increase in coal sales to $1.04 billion, while Segment Adjusted EBITDA decreased by 2.9% to $373.0 million [177]. - Appalachia Coal Operations experienced a 47.8% decline in Segment Adjusted EBITDA to $157.1 million, with coal sales decreasing by 16.3% to $566.8 million [178]. - Coal Royalties Segment Adjusted EBITDA rose to $33.5 million, reflecting higher average royalty rates and increased tons sold [180]. Transportation Revenues - Transportation revenues decreased to $24.6 million in Q3 2024 from $35.0 million in Q3 2023, attributed to lower average third-party transportation rates and decreased coal shipments [151]. - Transportation revenues decreased by $13.6 million to $82.1 million in the 2024 Period, primarily due to decreased coal shipments [169]. Operating Expenses - Total operating expenses increased to $1.48 billion in the 2024 Period from $1.38 billion in the 2023 Period, primarily due to higher cost purchased coal and a $15.3 million litigation expense accrual [160]. - Segment Adjusted EBITDA Expense increased by 8.5% to $1.12 billion, primarily due to higher operating expenses across segments [1]. Cash Flow and Investments - Cash provided by operating activities decreased to $634.7 million in the 2024 Period from $730.3 million in the 2023 Period [190]. - Net cash used in investing activities decreased to $337.4 million for the 2024 Period from $439.4 million in the 2023 Period, primarily due to reduced acquisitions of oil & gas reserves [191]. - Net cash used in financing activities decreased to $161.7 million for the 2024 Period from $389.7 million in the 2023 Period, mainly due to the issuance of Senior Notes and borrowings under Equipment Financing [192]. - The company anticipates total capital expenditures for 2024 to be in the range of $420.0 million to $460.0 million, with average estimated annual maintenance capital expenditures projected at approximately $7.76 per ton produced [193]. - As of September 30, 2024, the company had $195.4 million in cash and cash equivalents, which is expected to be sufficient to meet 2024 cash requirements [193]. Oil & Gas Operations - The company owns oil & gas mineral interests in approximately 69,000 net royalty acres in premier producing regions, supporting its strategy to grow its oil & gas mineral interest business [129]. - The company has committed up to $25.0 million to acquire additional oil & gas mineral interests in the Midland and Delaware Basins for an additional one-year term [131]. - Oil & Gas Royalties Segment Adjusted EBITDA decreased 8.5% to $28.7 million in Q3 2024 compared to $31.4 million in Q3 2023, driven by reduced average sales prices despite an 11.9% increase in volumes sold [158]. - Oil & Gas Royalties Segment Adjusted EBITDA increased to $91.4 million, driven by a 12.3% rise in oil & gas volumes to 2,579 MBOE [179]. Risk Factors - The company is exposed to commodity price risks, particularly in coal, oil, and natural gas, which could significantly impact revenues if prices decline [200]. - Credit risk is primarily associated with domestic electric power generators and reputable global brokerage firms, with measures in place to evaluate and monitor customer creditworthiness [202]. - The company does not have material exposure to currency exchange-rate risks as most transactions are in U.S. dollars, but foreign competitors may gain advantages from currency fluctuations [203]. - Borrowings under the Revolving Credit Facility and Securitization Facility are at variable rates, exposing the company to interest rate risks [204]. - There were no significant changes in the company's quantitative and qualitative disclosures about market risk compared to the previous annual report [205].
Alliance Resource Partners(ARLP) - 2024 Q3 - Earnings Call Transcript
2024-10-28 17:12
Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $613.6 million, down 3.6% from $636.5 million in the prior year, but up 3.4% sequentially due to higher coal sales tons [12] - Net income attributable to ARLP was $86.3 million or $0.66 per unit, compared to $153.7 million or $1.18 per unit in the year-ago period [12] - Adjusted EBITDA for Q3 2024 was $170.4 million, down from $227.6 million in the prior-year period, reflecting lower revenues and higher operating costs [12] Business Line Data and Key Metrics Changes - Coal sales volumes were 8.4 million tons, essentially in line with the 2023 quarter, but increased 6.7% sequentially [6] - Coal production was 7.8 million tons, down 7.2% year-over-year and 8.1% sequentially [6] - In the Illinois Basin, tons sold increased by 3.1% sequentially, while in Appalachia, tons sold increased by 16.9% compared to the previous quarter [7] Market Data and Key Metrics Changes - Average realized coal sales price per ton sold was $63.57, down 2.1% year-over-year and 2.6% sequentially [8] - Oil and Gas Royalties segment volumes reached 864,000 barrels of oil equivalent, representing an 11.9% increase year-over-year and a 5.8% increase sequentially [11] - Coal royalty volumes increased by 2.3% year-over-year, while coal royalty revenue per ton decreased by 3% compared to the prior year [11] Company Strategy and Development Direction - The company is maintaining its full-year guidance for coal sales volumes and prices, expecting to be closer to the lower end of the ranges [17] - Major capital and infrastructure projects are being advanced to improve productivity and reduce costs starting in early 2025 [22] - The company is focused on leveraging its well-capitalized operations to grow market share amid increasing demand for coal due to electricity needs [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the underlying demand for coal is expected to grow due to nontraditional demand from data centers and AI [23] - The company anticipates that the push for electrification will require more reliable generation capacity, which coal can provide [25] - Management expressed confidence in the long-term fundamentals for electricity demand and the company's position to benefit from this growth [29] Other Important Information - The company generated $209.3 million in cash flow from operating activities in Q3 2024 [13] - Total and net leverage ratios were 0.64 and 0.39 times total debt to trailing 12 months adjusted EBITDA, with liquidity at $657.7 million [13] - The company is actively pursuing acquisitions in the oil and gas royalties segment, closing $10.5 million in transactions during the quarter [27] Q&A Session Summary Question: Opportunities for ramping up export sales in Q4 - Management indicated there are opportunities to participate in the export market in Q4, with ongoing discussions with partners [31] Question: Inventory drawdown expectations - Current inventory at quarter-end was approximately 2 million tons, with expectations to reduce to 0.5 million to 1 million tons by year-end [33] Question: Cost challenges in Appalachia - Management acknowledged that Appalachian costs are above guidance due to challenging mining conditions but noted improvements are expected [35][36] Question: Outlook for committed and priced tons in 2025 - The company added 5.9 million tons of committed and priced tons, primarily from domestic customers, with expectations for margins to remain around 30% [37] Question: Steps to address roof control and maintenance expenses - Management highlighted geological challenges but expressed optimism for improved conditions in upcoming mining panels [39][40] Question: Impact of EPA emissions rule - Management believes the EPA emissions rule may be overturned in court, and if Trump is elected, he could reverse it [56][57]
Alliance Resource Partners(ARLP) - 2024 Q3 - Quarterly Results
2024-10-28 12:00
Exhibit 99.1 PRESS RELEASE FOR IMMEDIATE RELEASE ALLIANCE RESOURCE PARTNERS, L.P. Reports Third Quarter Financial and Operating Results; Declares Quarterly Cash Distribution of $0.70 Per Unit and Updates Committed & Priced Sales Tons 2024 Quarter Highlights ● Third quarter 2024 total revenue of $613.6 million, net income of $86.3 million, and EBITDA of $170.7 million ● Increased oil & gas royalty volumes to 864 MBOE, up 11.9% year-over-year ● Completed $10.5 million in oil & gas mineral interest acquisition ...
3 Superb Ultra-High-Yield Dividend Stocks With Yields North of 10% That Make for No-Brainer Buys Right Now
The Motley Fool· 2024-10-22 08:41
Three high-octane income stocks -- sporting yields of 10.4% to 12.8% -- are perfectly positioned to fatten the pocketbooks of patient investors.One of the best aspects about putting your money to work on Wall Street is that you have the ability to chart your own path to financial freedom. With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there is no one-size-fits-all strategy that you'll have to stick to.But among these seemingly countless ways to grow your wealth ...
Looking for Passive Income? Relax and Check Out High Yield MLPs
Investor Place· 2024-08-08 13:00
Income investors looking for high yields should take a closer look at master limited partnerships (MLPs). These publicly traded limited partnerships benefit from the liquidity of publicly traded companies while enjoying tax benefits of a private partnership.It is common to find MLPs with high yields above 5%, which make them an attractive option for those seeking income from their investments. This article will discuss three of our top high yield MLPs that we believe will continue to pay high yields to inve ...
Alliance Resource Partners(ARLP) - 2024 Q2 - Quarterly Report
2024-08-07 20:17
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________to________________ Commission File No.: 0-26823 ALLIANCE RESOURCE PARTNERS, L.P. (Exact name of registrant as specified in its charter) ...
Is the Options Market Predicting a Spike in Alliance Resource Partners (ARLP) Stock?
ZACKS· 2024-08-02 13:32
Investors in Alliance Resource Partners (ARLP) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2024 $02.50 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It c ...
Don't Buy AI Stocks, Buy The Best Dividend Total Return Stocks
Seeking Alpha· 2024-08-01 07:29
Background I am a retired engineer. I have a diversified portfolio composed of 49% equity funds, 30% individual stocks, 10% high yield bonds, 5% government bonds, 5% bond funds, and about 1% cash plus cryptocurrency. I invest in bonds and dividend stocks to provide the cash flow required to fund my retirement. That said, I am not just interested in yield. Total return is just as, if not more, important than yield. I wrote three articles this year on how to find investments with superior total returns. The a ...
Stonegate Capital Partners Updates Coverage on Alliance Resource Partners, L.P. (ARLP) 2024 Q2
Newsfile· 2024-07-30 13:25
Stonegate Capital Partners Updates Coverage on Alliance Resource Partners, L.P. (ARLP) 2024 Q2July 30, 2024 9:25 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - July 30, 2024) - Alliance Resource Partners, L.P. (NASDAQ: ARLP): Stonegate Capital Partners updates coverage on Alliance Resource Partners, L.P. To view the full announcement, including downloadable images, bios, and more, click here. Key Takeaways: Pricing increased 3.8% y/y $400.0M Senior Note offering comp ...
Alliance Resource Partners(ARLP) - 2024 Q2 - Earnings Call Transcript
2024-07-29 17:24
Alliance Resource Partners, L.P. Common Units (NASDAQ:ARLP) Q2 2024 Earnings Conference Call July 29, 2024 10:00 AM ET Company Participants Cary Marshall - SVP and CFO Joe Craft - Chairman, President, and CEO Conference Call Participants Nathan Martin - Benchmark Company Mark Reichman - Noble Capital Markets Dave Storms - Stonegate Capital Markets David Marsh - Singular Research Abraham Landa - Bank of America Mike Edwards - Boston Hill Advisors Operator Greetings, and welcome to the Alliance Resource Partn ...