Core Insights - Alliance Resource Partners (ARLP) reported higher profitability in Q4 2025 despite lower revenue, driven by reduced operating expenses, lower impairment charges, and increased investment income [6][4] Production and Sales - Coal production reached 8.2 million tons, an increase from 6.9 million tons in the prior-year quarter, while coal sales volumes were 8.1 million tons, down from 8.4 million tons a year earlier [1] - In the Illinois Basin, coal sales volumes were 6.5 million tons, down about 2% year-over-year and sequentially, attributed to the timing of committed deliveries [7] - Appalachia coal sales volumes were 1.7 million tons, down from 1.8 million tons in the year-ago quarter and 2.1 million tons sequentially [8] Financial Performance - Total revenue for the quarter was $535.5 million, down from $590.1 million a year earlier, primarily due to lower coal sales and transportation revenue [3] - Adjusted EBITDA for Q4 2025 totaled $191.1 million, up 54.1% from Q4 2024 and up 2.8% sequentially [5] - Net income attributable to ARLP was $82.7 million, or $0.64 per unit, compared to $16.3 million, or $0.12 per unit, in the prior-year quarter [5] Cost and Pricing - Average coal sales price was $57.57 per ton, down 4% year-over-year and down 2.1% sequentially [2] - Segment Adjusted EBITDA Expense per ton sold was $40.24, down 16.3% year-over-year and down 1.8% sequentially [1] Royalty Segment - The royalty segment generated $56.8 million in revenue, up 17.2% year-over-year, attributed to higher coal royalty tons and record oil and gas volumes [12] - Oil and gas royalty volumes rose 20.2% year-over-year and 10% sequentially, producing segment adjusted EBITDA of $30 million [13] Balance Sheet and Cash Flow - As of December 31, 2025, ARLP reported total liquidity of $518.5 million, including $71.2 million in cash [15] - Free cash flow generated in the quarter was $93.8 million, with a distributable cash flow of $100.1 million [16] 2026 Outlook - Management provided guidance for 2026, indicating robust contracting activity with over 93% of expected volumes committed [17] - Coal sales volumes are expected to be between 33.75 million to 35.25 million tons, with pricing anticipated to be 3% to 6% lower than Q4 2025 levels [18] - Capital expenditures are projected to be between $280 million to $300 million for 2026 [18]