Alliance Resource Partners, L.P. Reports Third Quarter 2024 Financial Results
Alliance Resource Partners, L.P. (NASDAQ: ARLP), reported its financial results for the third quarter ended September 30, 2024. The company highlighted a mixture of both challenges and advancements in its operations during this period.
Financial Performance Summary
Key Financial Metrics (in millions, except per unit data):
| Financial Metric | Q3 2024 | Q2 2024 (Sequential) | Q3 2023 | YoY Change | Consensus Estimates | Comparison to Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $613.6 | $593.4 | $636.5 | -3.6% | $641.73M | Below estimates |
| Net Income | $86.3 | N/A | $153.7 | -43.8% | N/A | N/A |
| Earnings Per Share (EPS) | $0.66 | N/A | $1.18 | -44.1% | $0.86 | Below estimates |
| EBITDA | $170.7 | $177.7 | $227.6 | -25.0% | N/A | N/A |
The company reported total revenue of $613.6 million for Q3 2024, marking a 3.6% year-over-year decrease primarily due to lower coal sales prices and reduced transportation revenues. Net income was $86.3 million, translating to $0.66 per basic and diluted unit, a significant drop from the previous year. EBITDA similarly decreased by 25.0% year-over-year.
Revenue Segment Analysis
Despite some positive indicators like increased coal sales volumes and oil & gas royalties, lower coal pricing and increased operating expenses contributed to weaker overall financial results compared to the same period last year.
Key Developments and Operational Highlights
- Increased committed and priced sales tons for 2025 by 5.9 million to 22.5 million tons.
- Completed $10.5 million in oil & gas mineral interest acquisitions.
- Declared quarterly cash distribution of $0.70 per unit.
Commentary from Company Officers
Joseph W. Craft III, Chairman, President, and CEO, emphasized the sequential improvement in revenue and segmental growth, noting the challenges faced due to export sales price reduction and shipping deferrals. Craft highlighted the completion of major capital and infrastructure projects that promise to deliver cost benefits in the coming year. The proactive steps to manage production in line with shipments were noted as strategic moves to mitigate excess inventory challenges.
Dividends and Share Repurchase Program
- Announced a cash distribution of $0.70 per unit, consistent with previous quarters, payable on November 14, 2024.
Forward Guidance
ARLP maintained its full-year guidance for 2024, highlighting ongoing engagements to enhance future sales commitments with positive forward-looking prospects in domestic coal demand.
Stock Price Movement
Following the earnings release, ARLP's stock experienced a decline of approximately 1.62%.
In conclusion, Alliance Resource Partners, L.P. navigates through a challenging market landscape marked by reduced coal prices but remains bullish on its strategic initiatives and long-term growth potential in royalties and core coal operations.
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