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TULSA, Okla. -On Monday, Alliance Resource Partners, L.P. (NASDAQ:ARLP) reported first quarter 2025 financial results that missed revenue expectations and missed on earnings per unit.
The coal producer’s shares edged up 0.3% in early trading following the release.
Alliance Resource Partners posted Q1 revenue of $540.5 million, missing analyst estimates of $579.91 million. Furthermore, earnings per unit came in at $0.57, below the $0.61 expected by analysts.
Total (EPA:TTEF) coal sales volumes decreased 10.4% YoY to 7.77 million tons in Q1, primarily due to lower production at the company’s Tunnel Ridge mine in Appalachia. Coal sales price per ton sold declined 6.9% to $60.29 compared to the year-ago quarter.
Net income attributable to ARLP fell to $74.0 million, or $0.57 per basic and diluted limited partner unit, compared to $158.1 million, or $1.21 per unit, in Q1 2024. The company cited lower revenues and a decrease in the fair value of its digital assets as factors impacting profitability.
"Our overall operations performed as anticipated during the quarter, delivering sequential and year-over-year cost improvements in the Illinois Basin," said Joseph W. Craft III, Chairman, President and CEO. "In Appalachia, we expect meaningful improvement in mining conditions for the rest of the year, leading to increased production and lower costs to fall within our 2025 full year guidance range."
The company declared a quarterly cash distribution of $0.70 per unit, maintaining its annualized distribution of $2.80 per unit.
Alliance Resource Partners ended Q1 with total liquidity of $514.3 million, including $81.3 million in cash and cash equivalents. The company’s total debt and finance leases outstanding stood at $484.1 million as of March 31, 2025.
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