Alliance Resource Partners(ARLP) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for the 2024 Quarter decreased by 5.6% to $590.1 million compared to $625.4 million for the 2023 Quarter, primarily due to reduced coal sales volumes[3]. - Net income for the 2024 Quarter was $16.3 million, a decrease of 81.1% compared to $115.4 million in the 2023 Quarter, attributed to lower revenues and higher operating expenses[3][4]. - Adjusted EBITDA for the 2024 Quarter was $124.0 million, down 33.1% from $185.4 million in the 2023 Quarter[3]. - Full year 2024 total revenue was $2.4 billion, with net income of $360.9 million and Adjusted EBITDA of $714.2 million, reflecting a decrease from $2.57 billion, $630.1 million, and $933.1 million respectively in 2023[5]. - Total revenues for Q4 2024 were $590,092, a decrease of 5.7% from $625,422 in Q4 2023[31]. - Net income attributable to ARLP for the year ended December 31, 2024, was $360,855, a decrease of 42.7% from $630,118 in 2023[31]. - Adjusted EBITDA for the year ended December 31, 2024, was $714.23 million, down from $933.08 million in 2023, reflecting a decline of 23.5%[46]. - Free cash flow for the three months ended December 31, 2024, was $75.22 million, significantly up from $3.26 million in the same period of 2023[41]. - Cash flows from operating activities for the year ended December 31, 2024, were $803.13 million, compared to $824.23 million in 2023, a decrease of 2.55%[41]. Sales and Production - Average coal sales price per ton for the 2024 Full Year was $63.38, nearly matching the record of $64.17 achieved in 2023[6]. - Coal sales amounted to $504,618 in Q4 2024, down from $521,972 in Q4 2023, reflecting a decline of 3.4%[31]. - Tons sold in Q4 2024 were 8,415, a decrease of 2.3% compared to 8,613 tons sold in Q4 2023[31]. - For 2025, the company expects coal production costs to improve, maintaining Coal segment margins near 2024 levels, with total sales tons projected between 32.25 million and 34.25 million short tons[16][18]. - The guidance for coal sales price per ton sold is projected at $57.00 to $61.00, with Illinois Basin sales price between $50.00 and $53.00 and Appalachia between $76.00 and $82.00[18]. Oil & Gas Segment - The company completed $9.6 million in oil & gas mineral interest acquisitions during the fourth quarter[3]. - Record full year 2024 oil & gas royalty volumes reached 3.4 million BOE, an increase of 9.6% year-over-year[3]. - Segment Adjusted EBITDA for the Oil & Gas Royalties segment decreased to $25.6 million in the 2024 Quarter, down 17.6% from $31.0 million in the 2023 Quarter[12]. - The company aims to actively pursue growth in the Oil & Gas Royalties segment in 2025, leveraging its cash flow generation profile[16]. - Oil & Gas Royalties are expected to produce 1,550 to 1,650 thousand barrels of oil and 6,100 to 6,500 thousand MCF of natural gas in 2025[18]. Expenses and Liabilities - Operating expenses for the year ended December 31, 2024, were $2,054,579, an increase of 8.5% from $1,894,304 in 2023[31]. - Operating expenses for the three months ended December 31, 2024, increased to $407.09 million from $356.56 million in 2023, marking a rise of 14.1%[43]. - The company recorded asset impairments of $31.13 million for the year ended December 31, 2024, with no impairments reported in 2023[39]. - The litigation expense accrual for the year ended December 31, 2024, was $15.25 million, related to a settlement subject to court approval[39]. - As of December 31, 2024, total debt and finance leases outstanding were $490.8 million, with a total liquidity of $593.9 million, including $137.0 million in cash and cash equivalents[14]. Cash Distribution and Capital Expenditures - The Board approved a cash distribution of $0.70 per unit for the 2024 Quarter, consistent with previous quarters, resulting in an annualized rate of $2.80 per unit[15]. - Capital expenditures for 2024 were $428,741, up from $379,338 in 2023, indicating a 13% increase[33]. - The company expects average annual estimated maintenance capital expenditures to decrease to $7.28 per ton produced in 2025 from $7.76 per ton in 2024[40]. - The company anticipates total capital expenditures between $285 million and $320 million, with maintenance capital expenditures projected at $280 million to $310 million[18]. Assets and Liquidity - Cash and cash equivalents increased to $136,962 at the end of 2024, up from $59,813 at the end of 2023[32]. - Total assets rose to $2,915,730 in 2024, compared to $2,788,426 in 2023, marking an increase of 4.6%[32]. - The company holds 482 bitcoins valued at $45.0 million as of December 31, 2024, contributing to its liquidity[14]. Regulatory Environment - The company expects a more supportive regulatory environment to enhance energy security and address the need for affordable baseload power[16].