Alliance Resource Partners(US:ARLP)2025-10-27 12:00Financial Performance - For the 2025 Quarter, net income increased by 10.2% to $95.1 million, or $0.73 per unit, compared to $86.3 million, or $0.66 per unit for the 2024 Quarter[3] - Adjusted EBITDA increased by 9.0% to $185.8 million in the 2025 Quarter compared to $170.4 million in the 2024 Quarter[3] - Total revenues for the 2025 Period decreased by 10.7% to $1.66 billion compared to $1.86 billion for the 2024 Period[7] - Net income attributable to ARLP for Q3 2025 was $95,104, up from $86,281 in Q3 2024, reflecting a 9.5% increase[39] - Adjusted EBITDA for the three months ended September 30, 2025, was $185.8 million, compared to $170.4 million in the same period of 2024, reflecting an increase of 9.5%[56] - Free cash flow for the three months ended September 30, 2025, was $151.4 million, up from $103.2 million in the same period of 2024, marking an increase of 46.6%[51] - Distributable Cash Flow for the three months ended September 30, 2025, was $106.4 million, compared to $97.6 million in the same period of 2024, an increase of 8.9%[48] Revenue and Sales - Total revenues decreased by 6.9% to $571.4 million in the 2025 Quarter, primarily due to a 7.5% decline in coal sales price per ton and reduced transportation revenues[3] - Coal sales volumes rose by 3.9% to 8.7 million tons sold in the 2025 Quarter compared to 8.4 million tons sold in the 2024 Quarter[3] - The Illinois Basin coal operations saw tons sold increase by 10.8% year-over-year, while Appalachia experienced a 13.3% decrease in sales volumes compared to the 2024 Quarter[13] - Total revenues for Q3 2025 were $571,367, a decrease of 6.9% from $613,569 in Q3 2024, primarily due to lower coal sales[39] Cash Distribution and Investments - The company declared a quarterly cash distribution of $0.60 per unit, or $2.40 per unit annualized[4] - The Board approved a cash distribution of $0.60 per unit for the 2025 Quarter, equating to an annualized rate of $2.40 per unit, payable on November 14, 2025[21] - ARLP invested approximately $22.1 million of a $25.0 million commitment in a limited partnership that operates a coal-fired power plant during the 2025 Quarter, supporting growth in energy infrastructure[18] Operational Efficiency - Operating expenses decreased to $466,403 in Q3 2025 from $512,502 in Q3 2024, a reduction of 9.0%[39] - Operating expenses for the three months ended September 30, 2025, were $354.6 million, a decrease from $384.8 million in the same period of 2024, representing a decline of 7.8%[53] - Capital expenditures for the nine months ended September 30, 2025, were $218,521, down from $335,586 in 2024[42] - Capital expenditures for the three months ended September 30, 2025, were $64.7 million, down from $110.3 million in the same period of 2024, a decrease of 41.4%[51] Debt and Liquidity - Total debt and finance leases as of September 30, 2025, were $470.6 million, with total liquidity of $541.8 million, including $94.5 million in cash and cash equivalents[20] - Cash and cash equivalents at the end of Q3 2025 were $94,481, down from $136,962 at the end of Q4 2024[40] - ARLP holds 568 bitcoins valued at $64.8 million as of September 30, 2025, contributing to its liquidity position[20] Future Guidance - For the full year ending December 31, 2025, total sales tons are guided at 32.50 to 33.25 million short tons, with coal sales price per ton expected to be between $58.00 and $60.00[26] - The company anticipates 4-6% annual growth in electricity demand in PJM and other markets, driven by normalized utility inventories and demand from data centers[24] - The 2026 book includes 29.1 million tons committed and priced, representing a 9% increase from the previous quarter[24] - Oil & Gas Royalties segment is adjusting BOE volume guidance due to the timing of a multi-well pad in the Delaware Basin, expected to come online in early 2026[24] Segment Performance - Segment Adjusted EBITDA for the Appalachia coal operations increased by 44.2% to $54.1 million in the 2025 Quarter compared to $37.5 million in the 2024 Quarter[11] - Segment Adjusted EBITDA for the Coal Royalties segment increased to $17.1 million in the 2025 Quarter, up from $11.1 million in the 2024 Quarter, reflecting higher royalty tons sold and average royalty rates[16] - Segment Adjusted EBITDA for Coal Operations for the three months ended September 30, 2025, was $356.7 million, compared to $386.3 million in the same period of 2024, a decrease of 7.7%[53] Asset Management - Total assets as of September 30, 2025, were $2,908,341, slightly down from $2,915,730 at the end of 2024[41] - The company reported cash flows from operating activities of $507,260 for the nine months ended September 30, 2025, compared to $634,711 for the same period in 2024[42] - The company recorded a change in fair value of digital assets amounting to $3,739 in Q3 2025, compared to $332 in Q3 2024[39] - Impairment loss on investments was $25.0 million, related to a preferred equity investment in a battery materials company[50] - Estimated maintenance capital expenditures for 2025 are projected to be $7.28 per ton produced, down from $7.76 per ton in 2024[50]