Q1 Revenue at $516M, Below Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 27 2026
0mins
Should l Buy ARLP?
Reports Q1 revenue $516M, consensus $517.81M. Compared to the Sequential Quarter, total revenues decreased by 3.6% due to lower coal sales volumes and prices, partially offset by higher oil & gas royalty revenues. Net income decreased by 89.0% compared to the Sequential Quarter primarily due to lower production and lower coal sales volumes from our Hamilton mine as a result of a planned extended longwall move during the 2026 Quarter that led to higher per ton operating expenses. In addition, increased depreciation, non-cash asset impairment charges at Mettiki and lower investment income contributed to lower net income in the 2026 Quarter. Adjusted EBITDA for the 2026 Quarter decreased by 18.9% compared to the Sequential Quarter primarily due to higher costs at Hamilton and Mettiki. "Most of our coal operations performed better than expected during the quarter, however meaningful weather-related shipment disruptions relating to Winter Storm Fern delayed sales volumes for the quarter," said Joseph W. Craft III, Chairman, President and Chief Executive Officer. "In the Illinois Basin, increased productivity at River View and Gibson South helped offset some of the impact of the planned extended longwall move at Hamilton. In Appalachia, Tunnel Ridge had production gains of approximately 28% compared to both the 2025 Quarter and the Sequential Quarter, while results at Mettiki reflected lower production and a non-cash impairment associated with ceasing longwall production and uncertainty regarding future operations as previously discussed. We delivered another record quarter in our oil & gas royalties segment, driven by increased production volumes and higher oil prices. Increased drilling and completion activity across our core basins continues to validate the quality of our mineral portfolio, and for the second consecutive quarter, we expanded our portfolio, completing $16.2 million in acquisitions during the quarter. These results underscore the durability of our asset base and reinforce our disciplined approach to allocating capital to attractive, long-lived mineral interests. We believe our oil and gas royalties portfolio enhances our cash flow stability and long-term optionality across commodity cycles."
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Analyst Views on ARLP
Wall Street analysts forecast ARLP stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 24.850
Low
33.00
Averages
33.00
High
33.00
Current: 24.850
Low
33.00
Averages
33.00
High
33.00
About ARLP
Alliance Resource Partners, L.P. is a diversified energy company. It is engaged in the production and marketing of coal to domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests located across the United States. Its segments include Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. Illinois Basin Coal Operation includes the Gibson County Coal, LLC mining complex; the Warrior Coal, LLC mining complex; the River View Coal, LLC mining complex and the Hamilton County Coal, LLC mining complex. Appalachia Coal Operations include the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining, LLC mining complex. The Oil & Gas Royalties include oil and gas mineral interests held by Alliance Minerals as well as its equity interests in AllDale III. Coal Royalties segment includes coal mineral reserves and resources owned or leased by Alliance Resource Properties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Magnolia Group Sells 1.17 Million Shares of Alliance Resource Partners
- Share Sale Overview: On April 24, 2026, Magnolia Group disclosed the sale of 1,170,437 shares of Alliance Resource Partners, with an estimated transaction value of $30.30 million, indicating a strategic adjustment in their coal market investments.
- Asset Management Changes: This transaction resulted in Magnolia's 13F reportable assets under management (AUM) decreasing from $606.51 million to $537.51 million, an 11.4% drop, highlighting a significant portfolio reconfiguration.
- Holding Proportion Adjustment: Magnolia's stake in ARLP was reduced from 2,581,697 shares to 1,411,260 shares, a decrease of approximately 45%, making ARLP account for 7.26% of its portfolio, reflecting diminished confidence in this asset.
- Market Performance Comparison: As of April 23, 2026, ARLP shares were priced at $25.23, up 2.4% year-over-year, but underperformed the S&P 500 by 29.88 percentage points, indicating a cautious market sentiment towards the coal industry.
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- Demand Destruction Risk: With surging LNG prices, Asian countries like Japan, South Korea, China, and India are increasingly turning to coal-fired power generation, which could lead to permanent demand destruction for oil and LNG, especially as renewable and nuclear energy adoption accelerates in the future.
- Rising Coal Demand: The Iran conflict has briefly reopened U.S. thermal coal export activity, with Alliance Resource Partners securing contracts to deliver 1.8 million tons of coal in 2026 and 2027, indicating a rising demand for coal as a short-term solution amid supply disruptions.
- Energy Investment Opportunities: Brookfield Renewable, a leading global renewable energy company, is actively expanding its operations in the Asia-Pacific region, and with increasing interest in nuclear power, it is expected to benefit from long-term growth trends in renewable and nuclear energy, making these alternative energy investments attractive for investors.
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- Performance Exceeds Expectations: In Q1 2026, Alliance Resource Partners reported adjusted EBITDA of $155 million, surpassing internal targets due to record BOE volumes and higher commodity prices, indicating strong performance in the oil and gas sector.
- Coal Sales Challenges: Despite total revenues of $516 million, net income was only $9.1 million, primarily impacted by lower coal sales revenue and a $37.8 million non-cash asset impairment, reflecting ongoing pressures in the coal market.
- Optimistic Future Outlook: The company maintains its guidance ranges for coal sales volumes and prices for 2026, while also projecting a 5% increase in oil and gas royalty revenues, demonstrating confidence in future market demand despite uncertainties surrounding the Mettiki mine operations.
- Cost Control Priority: Management emphasized prioritizing cost reduction and flexibility in Mettiki operations to adapt to future customer demand changes, while expecting improved operational visibility in the second half of 2026.
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ARLP Q1 2026 Earnings Call Transcript
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Alliance Resource Partners Declares Quarterly Dividend of $0.60
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- Dividend Yield: The forward yield of 9.71% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and encouraging long-term stock holding.
- Dividend Payment Schedule: The dividend is payable on May 15, with a record date of May 8 and an ex-dividend date also on May 8, ensuring that eligible shareholders receive their payouts promptly, thereby strengthening the relationship between the company and its investors.
- Financial Performance Overview: Despite ARLP reporting a GAAP EPS of $0.07, missing expectations by $0.08, and revenue of $516M falling short by $1.81M, the company demonstrates resilience in its diversification strategy, particularly in its pivot towards AI and electrification.
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- Earnings Decline: Alliance Resource Partners reported a net income of $9.09 million for Q1, translating to $0.07 per share, which marks a significant drop from last year's $73.98 million and $0.57 per share, indicating a notable weakening in the company's profitability.
- Revenue Decrease: The company's revenue for the quarter fell by 4.5% to $516.02 million from $540.47 million last year, reflecting pressures from weak market demand and intensified competition.
- Performance Comparison: The substantial decline in net income and earnings per share compared to the previous year highlights the challenges the company faces in the current economic environment, which may affect investor confidence and future capital allocation.
- Market Impact: The dual decline in earnings and revenue could put pressure on the stock price, prompting investors to closely monitor the company's future strategic adjustments and market recovery prospects.
See More
Magnolia Group Sells 1.17 Million Shares of Alliance Resource Partners
- Share Sale Overview: On April 24, 2026, Magnolia Group disclosed the sale of 1,170,437 shares of Alliance Resource Partners, with an estimated transaction value of $30.30 million, indicating a strategic adjustment in their coal market investments.
- Asset Management Changes: This transaction resulted in Magnolia's 13F reportable assets under management (AUM) decreasing from $606.51 million to $537.51 million, an 11.4% drop, highlighting a significant portfolio reconfiguration.
- Holding Proportion Adjustment: Magnolia's stake in ARLP was reduced from 2,581,697 shares to 1,411,260 shares, a decrease of approximately 45%, making ARLP account for 7.26% of its portfolio, reflecting diminished confidence in this asset.
- Market Performance Comparison: As of April 23, 2026, ARLP shares were priced at $25.23, up 2.4% year-over-year, but underperformed the S&P 500 by 29.88 percentage points, indicating a cautious market sentiment towards the coal industry.
See More
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- Supply Disruption Impact: The closure of the Strait of Hormuz has reduced global oil supply by up to 13 million barrels per day and disrupted 20% of global LNG trade, forcing countries to tap into emergency stockpiles at a record pace of 11 to 12 million barrels per day, highlighting the market's tense situation.
- Demand Destruction Risk: With surging LNG prices, Asian countries like Japan, South Korea, China, and India are increasingly turning to coal-fired power generation, which could lead to permanent demand destruction for oil and LNG, especially as renewable and nuclear energy adoption accelerates in the future.
- Rising Coal Demand: The Iran conflict has briefly reopened U.S. thermal coal export activity, with Alliance Resource Partners securing contracts to deliver 1.8 million tons of coal in 2026 and 2027, indicating a rising demand for coal as a short-term solution amid supply disruptions.
- Energy Investment Opportunities: Brookfield Renewable, a leading global renewable energy company, is actively expanding its operations in the Asia-Pacific region, and with increasing interest in nuclear power, it is expected to benefit from long-term growth trends in renewable and nuclear energy, making these alternative energy investments attractive for investors.
See More
Alliance Resource Partners Q1 2026 Earnings Call Insights
- Performance Exceeds Expectations: In Q1 2026, Alliance Resource Partners reported adjusted EBITDA of $155 million, surpassing internal targets due to record BOE volumes and higher commodity prices, indicating strong performance in the oil and gas sector.
- Coal Sales Challenges: Despite total revenues of $516 million, net income was only $9.1 million, primarily impacted by lower coal sales revenue and a $37.8 million non-cash asset impairment, reflecting ongoing pressures in the coal market.
- Optimistic Future Outlook: The company maintains its guidance ranges for coal sales volumes and prices for 2026, while also projecting a 5% increase in oil and gas royalty revenues, demonstrating confidence in future market demand despite uncertainties surrounding the Mettiki mine operations.
- Cost Control Priority: Management emphasized prioritizing cost reduction and flexibility in Mettiki operations to adapt to future customer demand changes, while expecting improved operational visibility in the second half of 2026.
See More
ARLP Q1 2026 Earnings Call Transcript
See More
Alliance Resource Partners Declares Quarterly Dividend of $0.60
- Quarterly Dividend Announcement: Alliance Resource Partners (ARLP) declares a quarterly dividend of $0.60 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 9.71% reflects the company's appeal in the current market environment, potentially boosting shareholder confidence and encouraging long-term stock holding.
- Dividend Payment Schedule: The dividend is payable on May 15, with a record date of May 8 and an ex-dividend date also on May 8, ensuring that eligible shareholders receive their payouts promptly, thereby strengthening the relationship between the company and its investors.
- Financial Performance Overview: Despite ARLP reporting a GAAP EPS of $0.07, missing expectations by $0.08, and revenue of $516M falling short by $1.81M, the company demonstrates resilience in its diversification strategy, particularly in its pivot towards AI and electrification.
See More
Alliance Resource Partners Reports Q1 Earnings Decline
- Earnings Decline: Alliance Resource Partners reported a net income of $9.09 million for Q1, translating to $0.07 per share, which marks a significant drop from last year's $73.98 million and $0.57 per share, indicating a notable weakening in the company's profitability.
- Revenue Decrease: The company's revenue for the quarter fell by 4.5% to $516.02 million from $540.47 million last year, reflecting pressures from weak market demand and intensified competition.
- Performance Comparison: The substantial decline in net income and earnings per share compared to the previous year highlights the challenges the company faces in the current economic environment, which may affect investor confidence and future capital allocation.
- Market Impact: The dual decline in earnings and revenue could put pressure on the stock price, prompting investors to closely monitor the company's future strategic adjustments and market recovery prospects.
See More
