Alliance Resource Partners, L.P. (ARLP) reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues decreased by 3.6% to $613.6 million, down from $636.5 million in the prior year. This decline was primarily attributed to reduced coal sales prices and lower transportation revenues. Coal sales specifically fell to $532.6 million from $549.1 million, reflecting a decrease in both average sales prices and tons sold.
Net income for the third quarter of 2024 was $86.9 million, or $0.66 per limited partner unit, a significant drop from $155.4 million, or $1.18 per unit, in the same quarter of 2023. For the nine months ended September 30, 2024, net income totaled $348.0 million, down from $519.3 million in the previous year, resulting in earnings per unit of $2.64 compared to $3.93.
Operating expenses for the third quarter increased to $512.5 million from $471.1 million, driven by higher per ton costs. Segment Adjusted EBITDA for the quarter was $192.3 million, a decrease of 22.4% from $247.7 million in the prior year. The Illinois Basin Coal Operations segment saw a 13.4% decline in Adjusted EBITDA, while the Appalachia Coal Operations segment experienced a 49.9% drop, primarily due to lower coal sales and increased operating expenses.
In terms of strategic developments, ARLP has continued its investment in oil and gas mineral interests, committing up to $25 million for acquisitions in 2024. The company also reported a $15.3 million litigation expense related to Fair Labor Standards Act violations, which has been accrued as of September 30, 2024.
Cash and cash equivalents increased significantly to $195.4 million as of September 30, 2024, compared to $59.8 million at the end of 2023. Total assets rose to $3.03 billion, while total liabilities increased to $1.11 billion. The company maintained a debt-to-cash flow ratio of 0.17 to 1.0, indicating a stable financial position despite the operational challenges faced during the period.
Overall, ARLP's performance reflects the ongoing pressures in the coal market, with strategic investments aimed at diversifying its revenue streams through oil and gas interests.
About ALLIANCE RESOURCE PARTNERS LP
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.