In the Condensed Consolidated Statements of Income and Operating Data table, the INCOME FROM OPERATIONS figure for the Three Months Ended June 2023 should be corrected to $183,929 (instead of $10,183,929).
Updated Release: Alliance Resource Partners, L.P. Reports Q2 2024 Results, Declares $0.70 Quarterly Distribution, and Updates 2024 Guidance
Q2 2024 Highlights:
- Total revenue of $593.4 million, net income of $100.2 million, and EBITDA of $177.7 million
- Coal sales price realizations rose to $65.30 per ton, up 3.8% year-over-year
- Oil & gas royalty volumes increased to 817 MBOE, up 6.8% year-over-year
- Issued $400 million in 8.625% Senior Notes due 2029 and redeemed Senior Notes due 2025
- Extended revolving credit facility maturity to March 2028
- Liquidity position enhanced to $666.0 million, including $203.7 million in cash and $462.3 million available under credit facilities
- Declared a quarterly cash distribution of $0.70 per unit, or $2.80 annualized
Alliance Resource Partners, L.P. (NASDAQ: ARLP) (“ARLP” or the “Partnership”) has reported its financial and operational results for the three and six months ended June 30, 2024 (the “2024 Quarter” and “2024 Period,” respectively). This release includes comparisons to the three and six months ended June 30, 2023 (the “2023 Quarter” and “2023 Period,” respectively) and to the quarter ended March 31, 2024 (the “Sequential Quarter”). All references to “net income” denote “net income attributable to ARLP.” For definitions of EBITDA and related reconciliations, see the end of this release.
Financial Performance:
- Total revenues for the 2024 Quarter decreased 7.6% to $593.4 million from $641.8 million in the 2023 Quarter, mainly due to reduced coal sales volumes, which fell 11.8% due to transportation delays, despite a 3.8% increase in coal sales price realizations.
- Net income for the 2024 Quarter was $100.2 million, or $0.77 per basic and diluted limited partner unit, compared to $169.8 million, or $1.30 per unit, in the 2023 Quarter, driven by lower revenues and increased operating expenses.
- EBITDA for the 2024 Quarter was $177.7 million, compared to $249.2 million in the 2023 Quarter.
Sequential Quarter Comparison:
- Total revenues decreased 9.0% from the Sequential Quarter due to lower tons sold.
- Net income and EBITDA decreased by 36.6% and 24.4%, respectively, due to lower revenues and a $3.7 million reduction in the fair value of digital assets, partially offset by reduced operating expenses.
Six-Month Period Performance:
- Total revenues decreased 4.6% to $1.25 billion for the 2024 Period, compared to $1.30 billion for the 2023 Period, primarily due to lower coal sales, partially offset by higher oil & gas royalties and other revenues.
- Net income for the 2024 Period was $258.2 million, or $1.98 per unit, compared to $361.0 million, or $2.75 per unit, for the 2023 Period, reflecting lower revenues and increased operating expenses.
- EBITDA for the 2024 Period was $412.7 million, compared to $520.1 million in the 2023 Period.
CEO Commentary:
Joseph W. Craft III, Chairman, President, and Chief Executive Officer, commented, “During the 2024 Quarter, we strengthened our liquidity position, with the successful completion of our Senior Notes offering bolstering our balance sheet. This demonstrates confidence from the capital markets in our strategy and execution plans. Reliable, affordable energy is crucial to our economy, and our strong financial position ensures we are well-positioned to meet future energy needs from our strategically located coal mines and expanding minerals portfolio.”
Mr. Craft added, “Coal sales volumes were affected by flooding and logistical disruptions, resulting in higher inventories. However, our contracted order book provided stability, with improvements in coal sales pricing compared to both the 2023 Quarter and Sequential Quarter. Additionally, our Oil & Gas Royalties segment saw a 6.8% increase in BOE volumes year-over-year, driven by production growth from our Permian-weighted minerals portfolio.”
Segment Results and Analysis:
- Coal Operations:
- Illinois Basin: Tons sold decreased 4.6% to 5.787 million; coal sales price per ton sold increased 4.9% to $57.37.
- Appalachia: Tons sold decreased 27.3% to 2.064 million; coal sales price per ton sold increased 8.7% to $87.54.
- Royalties:
- Oil & Gas: BOE sold increased 6.8% to 817,000; average sales price per BOE rose 3.1% to $44.60.
- Coal Royalties: Royalty tons sold decreased 2.8% to 4.973 million; revenue per royalty ton sold increased 2.8% to $3.33.
- Consolidated Totals:
- Total revenues decreased 7.6% to $593.4 million; Segment Adjusted EBITDA decreased 25.0% to $202.0 million.
