Alliance Resource Partners(US:ARLP) Businesswire·2024-01-29 12:00Core Insights - Alliance Resource Partners, L.P. reported record revenues and net income for the full year 2023, driven by higher coal sales prices and revenues, despite challenges in the market [2][5]. Financial Performance - Total revenues for the full year 2023 reached $2.6 billion, an increase of $146.7 million compared to 2022, primarily due to an 8.6% rise in coal sales prices [2]. - Net income for the full year 2023 was $630.1 million, or $4.81 per unit, reflecting a 7.5% increase from $586.2 million, or $4.39 per unit, in 2022 [2]. - In the 2023 Quarter, total revenues decreased to $625.4 million from $704.2 million in the 2022 Quarter, attributed to lower coal and oil & gas prices and reduced coal sales volumes [3]. - Net income for the 2023 Quarter was $115.4 million, or $0.88 per unit, down from $216.9 million, or $1.63 per unit, in the 2022 Quarter [3]. Operational Highlights - Coal sales prices in the 2023 Quarter averaged $60.60 per ton, a decline of 10.7% compared to the 2022 Quarter [9]. - Coal sales volumes in the Illinois Basin increased by 2.1% year-over-year, while Appalachia saw a 27.4% decrease due to geological challenges and operational issues [9][10]. - The company ended the 2023 Quarter with total coal inventory of 1.3 million tons, an increase of 0.8 million tons compared to the end of the 2022 Quarter [9]. Segment Analysis - The Oil & Gas Royalties segment saw a decrease in Segment Adjusted EBITDA to $31.0 million in the 2023 Quarter, despite a 13.1% increase in volumes sold [11]. - The Coal Royalties segment's Segment Adjusted EBITDA increased to $10.2 million in the 2023 Quarter, driven by higher average royalty rates per ton [12]. Balance Sheet and Liquidity - As of December 31, 2023, total debt was $348.1 million, with a reduction of $22.9 million during the 2023 Quarter [13]. - The company reported total liquidity of $492.1 million, including $59.8 million in cash and cash equivalents [14]. Future Outlook - The company anticipates strong coal sales in 2024, with over 90% of sales volumes already committed and priced [17]. - Major infrastructure projects are expected to be completed in 2024, which will enhance productivity and reduce capital expenditures in subsequent years [17]. - The company forecasts a rise in domestic natural gas prices in 2025, benefiting both coal and royalties segments [17].