Three Energy Stocks Poised for Significant Growth in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 05 2025
0mins
Source: Benzinga
Oversold Stocks in Energy Sector: The energy sector has several oversold stocks, presenting potential buying opportunities for undervalued companies, particularly those with an RSI below 30.
Alliance Resource Partners (ARLP): ARLP reported disappointing Q2 results, cutting its dividend and experiencing a 14% stock decline, with an RSI of 22.3.
PTL Ltd (PTLE): PTLE received a non-compliance notice from Nasdaq, leading to a 17% drop in stock price and an RSI of 28.6.
Stak Inc (STAK): Despite reporting strong financial results, STAK's stock fell 44% recently, with an RSI of 27.1, indicating it is also oversold.
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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: 25.130
Low
33.00
Averages
33.00
High
33.00
Current: 25.130
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.
Alliance Resource Partners Acquires AllDale Minerals for $206.2M
- Acquisition Overview: Alliance Resource Partners (ARLP) announced its agreement to acquire general and limited partner interests in AllDale Minerals III and IV for $206.2 million, significantly enhancing its economic interests in premier basins.
- Resource Base Expansion: This acquisition increases ARLP's economic interest in AllDale III and IV from approximately 5% to 61%, fully owning the general partner interests, and is expected to control 115,860 net royalty acres, strengthening its market position in the northern Delaware, Anadarko, and Bakken regions.
- Production Capacity Boost: With Q1 production totaling 17,295 boe/day, of which 14,285 boe/day is net to ARLP's interests, the acquisition is projected to increase new wells placed on production by 59%, 78%, and 91% in the Anadarko and Bakken regions, significantly enhancing overall production capacity.
- Market Demand Opportunity: By entering the Haynesville, a key natural gas resource play, ARLP is poised to better meet LNG export demand, further strengthening its competitive edge and strategic positioning in the energy market.
See More
Alliance Resource Partners Acquires AllDale Minerals for $206.2 Million
- Acquisition Overview: Alliance Resource Partners (ARLP) announced the acquisition of certain general partner and limited partner interests in AllDale Minerals III and IV for approximately $206.2 million, with a total transaction valuation of about $410 million, expected to close in July 2026, significantly enhancing ARLP's market position in the minerals sector.
- Increased Economic Interest: Following the acquisition, ARLP's economic interest in AllDale III and IV will rise from approximately 5% to 61%, and through a wholly owned subsidiary, ARLP will fully control the general partner interests, further solidifying its strategic positioning in the oil and gas sector.
- Production Capacity Enhancement: AllDale III and IV hold approximately 48,500 net royalty acres, which is expected to increase ARLP's average daily production capacity from about 5,940 BOE to 17,295 BOE, significantly boosting its competitiveness in key oil and gas basins.
- Financial Benefits Expected: The acquisition is anticipated to be immediately accretive to ARLP's free cash flow per unit and will be funded through a combination of cash, credit, and new debt financing, maintaining a pro forma total leverage below 1.0x to ensure liquidity for future growth.
See More
The Potential and Challenges of Coal's Revival
- Surging Market Demand: Babcock & Wilcox (B & W) currently holds a $2.7 billion backlog, with $2.4 billion stemming from its partnership with Applied Digital, indicating a robust growth in power demand driven by the data center boom, which may lead to a revival of coal.
- Significant Stock Performance: B & W's stock has surged 244% over the past year, rising from below $1 to $21, reflecting optimistic market expectations for its future growth potential, despite facing controversies related to Applied Digital.
- Policy Support for Coal: President Trump and the Energy Secretary are actively working to prevent the closure of coal plants, viewing coal as a vital national security resource, which could provide new business opportunities for companies like B & W, despite ongoing environmental concerns.
- Changing Competitive Landscape: B & W possesses unique capabilities in building natural gas power plants, and with GE Vernova currently at capacity, B & W's expansion potential may position it favorably in the future energy market, particularly in the combined use of coal and natural gas.
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
Closure of Strait of Hormuz Significantly Disrupts Global Oil Market
- 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
Alliance Resource Partners Acquires AllDale Minerals for $206.2M
- Acquisition Overview: Alliance Resource Partners (ARLP) announced its agreement to acquire general and limited partner interests in AllDale Minerals III and IV for $206.2 million, significantly enhancing its economic interests in premier basins.
- Resource Base Expansion: This acquisition increases ARLP's economic interest in AllDale III and IV from approximately 5% to 61%, fully owning the general partner interests, and is expected to control 115,860 net royalty acres, strengthening its market position in the northern Delaware, Anadarko, and Bakken regions.
- Production Capacity Boost: With Q1 production totaling 17,295 boe/day, of which 14,285 boe/day is net to ARLP's interests, the acquisition is projected to increase new wells placed on production by 59%, 78%, and 91% in the Anadarko and Bakken regions, significantly enhancing overall production capacity.
- Market Demand Opportunity: By entering the Haynesville, a key natural gas resource play, ARLP is poised to better meet LNG export demand, further strengthening its competitive edge and strategic positioning in the energy market.
See More
Alliance Resource Partners Acquires AllDale Minerals for $206.2 Million
- Acquisition Overview: Alliance Resource Partners (ARLP) announced the acquisition of certain general partner and limited partner interests in AllDale Minerals III and IV for approximately $206.2 million, with a total transaction valuation of about $410 million, expected to close in July 2026, significantly enhancing ARLP's market position in the minerals sector.
- Increased Economic Interest: Following the acquisition, ARLP's economic interest in AllDale III and IV will rise from approximately 5% to 61%, and through a wholly owned subsidiary, ARLP will fully control the general partner interests, further solidifying its strategic positioning in the oil and gas sector.
- Production Capacity Enhancement: AllDale III and IV hold approximately 48,500 net royalty acres, which is expected to increase ARLP's average daily production capacity from about 5,940 BOE to 17,295 BOE, significantly boosting its competitiveness in key oil and gas basins.
- Financial Benefits Expected: The acquisition is anticipated to be immediately accretive to ARLP's free cash flow per unit and will be funded through a combination of cash, credit, and new debt financing, maintaining a pro forma total leverage below 1.0x to ensure liquidity for future growth.
See More
The Potential and Challenges of Coal's Revival
- Surging Market Demand: Babcock & Wilcox (B & W) currently holds a $2.7 billion backlog, with $2.4 billion stemming from its partnership with Applied Digital, indicating a robust growth in power demand driven by the data center boom, which may lead to a revival of coal.
- Significant Stock Performance: B & W's stock has surged 244% over the past year, rising from below $1 to $21, reflecting optimistic market expectations for its future growth potential, despite facing controversies related to Applied Digital.
- Policy Support for Coal: President Trump and the Energy Secretary are actively working to prevent the closure of coal plants, viewing coal as a vital national security resource, which could provide new business opportunities for companies like B & W, despite ongoing environmental concerns.
- Changing Competitive Landscape: B & W possesses unique capabilities in building natural gas power plants, and with GE Vernova currently at capacity, B & W's expansion potential may position it favorably in the future energy market, particularly in the combined use of coal and natural gas.
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
Closure of Strait of Hormuz Significantly Disrupts Global Oil Market
- 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
