Stonegate Capital Partners Updates Coverage on Alliance Resource Partners, L.P. (ARLP) 2025 Q3

Rhea-AI Summary

Alliance Resource Partners (NASDAQ: ARLP) reported 3Q25 results with mixed operational and financial outcomes. Total revenue was $571.4M in 3Q25, down 6.9% y/y, while net income rose to $95.1M from $86.9M in 3Q24. Adjusted EBITDA was $185.8M, up 14.8% sequentially. Coal production increased 8.5% y/y and coal tons sold reached 8.7M, helped by improved performance at Hamilton, River View, and Tunnel Ridge. The company deployed $22.1M into an LP owning a PJM coal-fired plant and said it expects cash-on-cash returns beginning in 2026. Oil & Gas royalty volumes rose 4.1% y/y to 0.899M BOE (avg. price $35.68/BOE). Management tightened FY25 guidance and declared a $0.60/unit quarterly cash distribution.

Positive

• Adjusted EBITDA of $185.8M (+14.8% sequential)
• Coal tons sold reached 8.7M
• Declared quarterly cash distribution of $0.60/unit

Negative

• Total revenue down 6.9% y/y to $571.4M
• Lower realized coal pricing and reduced transportation revenues pressured top line

Dallas, Texas--(Newsfile Corp. - October 28, 2025) - Alliance Resource Partners, L.P. (NASDAQ: ARLP): Stonegate Capital Partners updates coverage on Alliance Resource Partners, L.P. ARLP delivered a solid 3Q25, with higher coal volumes and improved unit costs offsetting lower y/y realized pricing. Total revenues for the quarter decreased by 6.9% year-over-year to $571.4M, as a 8.5% increase in coal production and 3.9% increase in coal sales volumes were more than offset by lower coal price realizations and reduced transportation revenues. Net income for the quarter rose to $95.1M compared to $86.9M in 3Q24, primarily aided by lower operating costs and higher investment income. Adj. EBITDA came in at $185.8M, representing a 14.8% sequential increase. ARLP tightened FY25 guidance, projecting 4Q25 results comparable to 3Q25, supported by improving operational execution.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Delivered $571.4M in revenue and $185.8M in Adjusted EBITDA; coal tons sold rose to 8.7M on improving performance at Hamilton, River View, and Tunnel Ridge.
• Deployed $22.1M into a LP that owns a coal-fired plant in PJM, advancing ARLP's strategy to back baseload reliability; management expects attractive cash-on-cash returns beginning in 2026.
• Oil & Gas Royalty volumes increased 4.1% y/y to 0.899M BOE (avg. price $35.68/BOE); declared a $0.60/unit quarterly cash distribution.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/272217

FAQ

What were Alliance Resource Partners (ARLP) 3Q25 revenue and net income?

ARLP reported $571.4M in revenue and $95.1M in net income for 3Q25.

How did ARLP's Adjusted EBITDA perform in 3Q25 and why does it matter?

Adjusted EBITDA was $185.8M, up 14.8% sequentially, indicating improved operating cash generation.

What operational drivers affected ARLP's 3Q25 results (coal volumes/pricing)?

Coal production rose 8.5% y/y and coal tons sold were 8.7M, but lower realized coal prices and reduced transport revenue offset unit gains.

Did ARLP change guidance or capital plans after 3Q25?

Management tightened FY25 guidance and stated 4Q25 results are expected to be comparable to 3Q25.

What is the significance of ARLP's $22.1M investment in a PJM coal-fired plant LP?

The $22.1M deployment backs baseload reliability exposure and the company expects cash-on-cash returns beginning in 2026.

What distribution did ARLP declare for shareholders after 3Q25?

ARLP declared a quarterly cash distribution of $0.60 per unit.