Alliance Resource Partners (NASDAQ:ARLP) Releases Earnings Results, Beats Estimates By $0.14 EPS

Alliance Resource Partners (NASDAQ:ARLP) released its earnings results on Monday. The energy company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.61 by $0.14, Zacks reports. The firm had revenue of $535.51 million for the quarter, compared to analysts’ expectations of $556.82 million. Alliance Resource Partners had a net margin of 10.88% and a return on equity of 14.75%.

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

• Alliance reported a strong fourth quarter with Adjusted EBITDA of $191.1 million (up 54% YoY) and net income of $82.7 million, though results included a $17.5 million fair-value gain from an equity-method power-plant investment that may be lumpy going forward.
• 2026 guidance assumes higher sales volumes (33.75–35.25 million tons) but average realized coal pricing ~3%–6% below Q4 2025, with Appalachia pricing guided materially lower (2026: $66–$71/ton vs 2025: $81.99/ton), which could pressure revenue despite stronger demand.
• Mettiki lost its key customer due to plant outages, prompting WARN Act notices and expected contract fulfillment only through March 2026; management will evaluate a potential impairment in Q1 2026 given the unclear replacement market for ~1 million tons/year.
• Oil and gas royalties produced a record year of volumes (BOE volumes +20.2% YoY in Q4) with Q4 royalty Segment Adjusted EBITDA of $30 million, aided by new Permian wells and $14.4 million of mineral acquisitions, and management plans disciplined royalty growth in 2026.
• Balance sheet and cash generation remain solid: total/net leverage improved to 0.66x/0.56x, total liquidity was $518.5 million (including 592 BTC valued at $51.8 million), free cash flow of $93.8 million in Q4, and distribution coverage of 1.29x on the current payout.

Alliance Resource Partners Stock Up 1.3%

Alliance Resource Partners stock traded up $0.31 during mid-day trading on Tuesday, hitting $25.00. The company’s stock had a trading volume of 720,849 shares, compared to its average volume of 415,894. Alliance Resource Partners has a 52-week low of $22.20 and a 52-week high of $28.50. The company has a market cap of $3.21 billion, a PE ratio of 13.30 and a beta of 0.32. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.90 and a quick ratio of 1.39. The firm’s 50 day moving average is $23.97 and its 200 day moving average is $24.37.

Alliance Resource Partners Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Friday, February 6th will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 9.6%. The ex-dividend date of this dividend is Friday, February 6th. Alliance Resource Partners’s dividend payout ratio is currently 127.66%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. increased its holdings in Alliance Resource Partners by 135.0% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,523 shares of the energy company’s stock worth $39,000 after buying an additional 875 shares during the last quarter. Triumph Capital Management bought a new stake in Alliance Resource Partners in the third quarter worth approximately $46,000. US Bancorp DE grew its position in Alliance Resource Partners by 28.5% in the third quarter. US Bancorp DE now owns 2,570 shares of the energy company’s stock worth $65,000 after acquiring an additional 570 shares in the last quarter. Sunbelt Securities Inc. acquired a new position in shares of Alliance Resource Partners during the 3rd quarter worth $116,000. Finally, BNP Paribas Financial Markets raised its holdings in shares of Alliance Resource Partners by 200.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 7,149 shares of the energy company’s stock valued at $181,000 after purchasing an additional 4,768 shares in the last quarter. 18.11% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Wall Street Zen cut Alliance Resource Partners from a “strong-buy” rating to a “buy” rating in a research note on Saturday, January 3rd. Zacks Research lowered shares of Alliance Resource Partners from a “hold” rating to a “strong sell” rating in a research report on Monday, January 5th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Alliance Resource Partners in a research note on Monday, December 29th. Finally, Benchmark reissued a “buy” rating on shares of Alliance Resource Partners in a research note on Tuesday. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $29.50.

Alliance Resource Partners News Summary

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

• Positive Sentiment: Q4 EPS beat — ARLP reported $0.75 EPS vs. a $0.61 consensus, signaling stronger-than-expected profitability (net margin ~10.9%, ROE ~14.8%). This EPS surprise is a primary reason for positive investor reaction. Alliance Resource Partners beats Q4 earnings, misses revenue
• Positive Sentiment: Dividend increase / distribution — The firm declared a $0.60 dividend, supporting income-focused investor demand and reinforcing cash-return dynamics. Alliance Resource Partners declares $0.60 dividend
• Positive Sentiment: 2026 volume outlook — Management expects coal sales volume to rise in 2026 amid robust contracting activity, which investors view as supportive for revenue and EBITDA going forward. Alliance Resource Partners anticipates 2026 coal sales volume increase amid robust contracting activity
• Positive Sentiment: Operational / EBITDA strength — Earnings call highlights pointed to strong EBITDA growth, which helped offset concerns about revenue and supported the upbeat tone. Alliance Resource Partners LP (ARLP) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Earnings call transcript published — Full transcript is available for investors who want detail on guidance, coal contracting, and cost drivers. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Short-interest note unclear — Reporting shows effectively zero short interest in the most recent data, an ambiguous datapoint that doesn’t meaningfully change the supply/demand picture.
• Negative Sentiment: Revenue miss — Q4 revenue came in at $535.5M vs. ~$556.8M consensus, which tempers the EPS beat and is a key reason some investors took profits or remained cautious. Alliance Resource Partners beats Q4 earnings, misses revenue

About Alliance Resource Partners

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.