Alliance Resource Partners (NASDAQ:ARLP) Posts Earnings Results, Misses Estimates By $0.01 EPS

Alliance Resource Partners (NASDAQ:ARLP) released its quarterly earnings results on Monday. The energy company reported $0.65 earnings per share for the quarter, missing the consensus estimate of $0.66 by ($0.01), Zacks reports. The firm had revenue of $551.56 million for the quarter, compared to analyst estimates of $554.30 million. Alliance Resource Partners had a return on equity of 16.87% and a net margin of 11.35%.

Here are the key takeaways from Alliance Resource Partners’ conference call:

• Second-quarter results improved significantly: Revenue rose to $551.6 million, net income increased 33.9% year over year to $79.6 million, and adjusted EBITDA grew 14.7% to $185.7 million, driven by higher coal volumes, lower costs, record oil and gas royalties, and stronger equity-method investments.
• Coal operations are positioned for a stronger second half. Tunnel Ridge productivity improved, Hamilton returned to production in mid-May, and no further longwall moves are expected until 2027; management expects roughly 9 million tons of sales in each remaining quarter and further cost reductions.
• Forward coal sales and power-market conditions remain supportive. ARLP secured 21.2 million tons of new commitments and is essentially fully contracted at the midpoint of 2026 guidance, with 29.4 million tons committed and priced for 2027; management also cited tight PJM capacity and rising data-center electricity demand as potential demand drivers.
• Oil and gas royalties delivered record results and expanded through AllDale III and IV. Royalty revenue increased 31.1% year over year, and the $206.2 million acquisition is expected to be immediately accretive, increasing estimated distributable cash flow per unit by 8%–9% in 2027.
• Coal pricing is declining as higher-priced legacy contracts roll off, while acquisition-related borrowings increase leverage. Appalachia’s realized price fell to $63.57 per ton, and ARLP funded the AllDale purchase partly with a new $150 million term loan; management said debt reduction and financial flexibility will be priorities.

Alliance Resource Partners Price Performance

Shares of NASDAQ ARLP opened at $25.63 on Tuesday. The stock has a market capitalization of $3.30 billion, a PE ratio of 13.49 and a beta of 0.23. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.46 and a quick ratio of 0.95. The business has a fifty day moving average price of $24.68 and a two-hundred day moving average price of $25.52. Alliance Resource Partners has a fifty-two week low of $22.20 and a fifty-two week high of $29.45.

Alliance Resource Partners Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, August 7th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 9.4%. The ex-dividend date is Friday, August 7th. Alliance Resource Partners’s dividend payout ratio (DPR) is 126.32%.

Institutional Trading of Alliance Resource Partners

Large investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC acquired a new position in Alliance Resource Partners in the fourth quarter valued at about $35,000. IFC & Insurance Marketing Inc. acquired a new stake in Alliance Resource Partners during the fourth quarter worth about $35,000. Northwestern Mutual Wealth Management Co. increased its holdings in Alliance Resource Partners by 135.0% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 1,523 shares of the energy company’s stock valued at $39,000 after buying an additional 875 shares during the period. Triumph Capital Management bought a new position in Alliance Resource Partners in the 3rd quarter valued at about $46,000. Finally, US Bancorp DE raised its position in shares of Alliance Resource Partners by 28.5% in the 3rd quarter. US Bancorp DE now owns 2,570 shares of the energy company’s stock valued at $65,000 after buying an additional 570 shares in the last quarter. 18.11% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Alliance Resource Partners

Here are the key news stories impacting Alliance Resource Partners this week:

• Positive Sentiment: Management highlighted broad strength in the second quarter, including strong net income growth and record performance from its coal and oil-and-gas royalty businesses. Alliance Resource Partners’ Earnings Call Signals Broad Strength
• Positive Sentiment: Alliance expects distributable cash flow per unit to increase approximately 8% to 9% next year as the AllDale business expands its oil-and-gas royalty contribution. That outlook supports the partnership’s ability to maintain distributions and potentially enhance investor returns. Alliance Resource Partners expects 8% to 9% distributable cash flow per unit lift next year
• Positive Sentiment: The board declared a quarterly cash distribution of $0.60 per unit, payable August 14 to unitholders of record August 7. The distribution represents a $2.40 annualized payout and an approximately 9.4% yield based on the cited price, which may attract income-focused investors.
• Neutral Sentiment: Second-quarter revenue was $551.56 million, slightly below the $554.30 million consensus estimate, while earnings per unit of $0.65 missed expectations by $0.01. The modest miss was partly offset by the company’s operational strength and updated 2026 guidance. Alliance Resource Partners Reports Second Quarter Results
• Negative Sentiment: Sidoti issued a pessimistic forecast for ARLP earnings, adding a more cautious analyst view after the quarterly earnings miss. Sidoti Issues Pessimistic Forecast for ARLP Earnings

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. Weiss Ratings raised Alliance Resource Partners from a “hold (c)” rating to a “hold (c+)” rating in a report on Friday. Zacks Research raised Alliance Resource Partners from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 8th. Finally, Wall Street Zen cut shares of Alliance Resource Partners from a “buy” rating to a “hold” rating in a research report on Saturday, April 4th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Buy” and a consensus price target of $30.00.

Alliance Resource Partners Company Profile

Alliance Resource Partners, L.P. (NASDAQ: ARLP) is a Tulsa, Oklahoma–based master limited partnership engaged in the production, marketing and transportation of bituminous coal. Through its subsidiaries, the company develops, owns and operates surface and underground coal mines, providing fuel primarily for electric power generation and various industrial applications. Alliance’s integrated business model covers the extraction of raw coal, processing at preparation plants and delivery to domestic and export customers.

The partnership operates multiple mining complexes across Illinois, Indiana, Kentucky and West Virginia.