ARLP.O

Alliance Resource Partners Reports Third Quarter 2024 Financial Results

authorIntellectia.AI

2024-10-293mins

Alliance Resource Partners Reports Third Quarter 2024 Financial Results

Alliance Resource Partners, L.P. (ARLP) announced its financial results for the third quarter, ending September 30, 2024. The highlights reflect the company's continued efforts amid fluctuating market conditions.

Key Financial Metrics

Financial Metric Q3 2024 Q3 2023 Sequential Q2 2024 Wall Street Consensus Q3 2024 Year-over-Year Change Quarter-over-Quarter Change
Total Revenue (millions USD) 613.6 636.5 593.4 641.73 -3.6% +3.4%
Earnings Per Share (EPS) (USD) 0.66 1.18 N/A 0.86 N/A N/A

Interpretation : ARLP's total revenue for the third quarter was $613.6 million, marking a decrease of 3.6% year-over-year but a sequential increase of 3.4%. The earnings per share fell short of market expectations at $0.66, compared to a consensus estimate of $0.86, reflecting pressures from reduced coal sales prices and increased operating expenses.

Segment Revenue Performance

Segment Q3 2024 Revenue (millions USD) Comparison to 2023 Quarter Comparison to Guidance
Coal Operations N/A Increase in volume, price decrease No guidance provided
Oil & Gas Royalties N/A +11.9% volume YoY, +5.8% quarter No guidance provided

Interpretation : The coal operation segment reported increased sales volumes by 6.7% quarter-over-quarter, contributing to overall revenue stability despite price pressures. In oil and gas royalties, volumes increased by 11.9% year-over-year, driven by strategic acquisitions and robust performance in the Permian Basin.

Key Developments and Operational Highlights

  • Increased oil & gas royalty volumes to 864 MBOE.
  • Completed $10.5 million in oil & gas mineral interest acquisitions.
  • Declared a quarterly cash distribution of $0.70 per unit.
  • Increased contracted and priced sales tons for 2025 by 5.9 million tons.

Executive Commentary

Joseph W. Craft III, Chairman, President, and CEO, noted the company's efforts to align production with shipments, reducing production due to high stockpile levels impacting costs. He expressed optimism about wrapping up capital and mine infrastructure investments, projecting reduced mining expenses in the future. Mr. Craft also highlighted growth in the Oil & Gas Royalties segment as beneficial to the company’s overall strategy and position.

Dividends and Share Buyback

ARLP declared a quarterly cash distribution of $0.70 per unit, maintaining consistency with previous quarters.

Forward Guidance

The company maintained its guidance for the full year of 2024, while updating committed and priced sales tons, indicating stable planning amid market uncertainties.

Stock Price Movement

Following the earnings announcement, ARLP's stock experienced a slight decline of 0.51%.

This report illustrates ARLP's resilience in the face of challenging market conditions, with strategic growth in oil & gas royalties and tactical management of coal operations preparing the company for future improvements in financial health and market standing.

For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.

Join Intellectia

Share

Want more financial insights delivered directly to your inbox?

Subscribe now and receive handpicked financial news, insights, and trending topics.