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Stonegate Capital Partners Updates Coverage on Alliance Resource Partners, L.P. (ARLP) 2025 Q1

Core Insights - Alliance Resource Partners, L.P. (ARLP) reported a resilient performance in Q1 2025 despite lower coal sales volumes and pricing, with total revenues decreasing by 17.1% year-over-year to $540.5 million [1][8] - Net income for the quarter fell to $74.0 million compared to $158.1 million in Q1 2024, primarily due to lower revenues and a decrease in the fair value of digital assets, although operating expenses were reduced [1][8] - Adjusted EBITDA increased by 29.0% sequentially to $159.9 million, indicating operational efficiency [1][8] - ARLP updated its FY25 guidance, expecting higher domestic sales volumes and operational cost efficiencies to support margins despite ongoing pricing pressures [1][8] Revenue and Financial Performance - Total revenue for Q1 2025 was $540.5 million, a decrease of 17.1% year-over-year [1][8] - Net income decreased to $74.0 million from $158.1 million in Q1 2024 [1][8] - Adjusted EBITDA for the quarter was $159.9 million, reflecting a 29.0% increase sequentially [1][8] Sales and Commitments - Coal sales volumes declined by 10.4% year-over-year, but over 96% of expected coal sales volumes for 2025 are committed and priced [1][8] - The company added 17.7 million tons of contract commitments for the period from 2025 to 2028 [8]