Stonegate Capital Partners Updates Coverage on Alliance Resource Partners, L.P. (ARLP) 2024 Q4

Rhea-AI Summary

Alliance Resource Partners (ARLP) faced challenges in Q4 2024, with total revenues declining 5.6% year-over-year to $590.1M. The decrease was primarily attributed to a 2.3% reduction in coal sales volumes and lower coal sales pricing. Net income significantly dropped to $16.3M from $115.4M in Q4 2023, impacted by higher operating expenses and $31.1M in non-cash impairment charges related to MC Mining operations.

Adjusted EBITDA decreased 27.2% sequentially to $124.0M. Despite these challenges, ARLP maintains its FY2025 guidance, expecting improvements from operational efficiencies, strengthening order book, and declining domestic inventories. The company completed $9.6M in mineral interest acquisitions for its O&G royalties business and achieved its coal inventory target of 0.6 million tons. ARLP ended Q4 with $593.9M in liquidity, including $137.0M in cash and $456.9M in available credit.

Positive

• Strong liquidity position of $593.9M
• Achieved coal inventory target of 0.6 million tons
• Continued expansion in O&G royalties with $9.6M in acquisitions

Negative

• Revenue declined 5.6% YoY to $590.1M
• Net income dropped 85.9% to $16.3M from $115.4M YoY
• Adj. EBITDA decreased 27.2% sequentially
• $31.1M non-cash impairment charges for MC Mining operation
• 2.3% decline in coal sales volumes

Dallas Texas--(Newsfile Corp. - February 4, 2025) -  Alliance Resource Partners, L.P. (NASDAQ: ARLP): Stonegate Capital Partners updates coverage on Alliance Resource Partners, L.P. ARLP reported a challenging 4Q24, impacted by lower coal sales pricing and higher operating expenses. Total revenues for the quarter decreased by 5.6% year-over-year to $590.1M, primarily due to a 2.3% decline in coal sales volumes. Net income for the quarter was down to $16.3M compared to $115.4M in 4Q23, reflecting higher operating costs and non-cash impairment charges of $31.1M related to the MC Mining operation. Adj. EBITDA came in at $124.0M, a 27.2% decline sequentially. Despite these headwinds, ARLP remains committed to its FY25 guidance, expecting improvements driven by efficiency realizations in its operations, a strengthening order book, and declining domestic inventories.

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

Key Takeaways:

• ARLP continued to expand its O&G royalties' business, completing $9.6M in mineral interest acquisitions during the quarter.
• ARLP reached its coal inventory goal for FY24, reaching 0.6 million tons.
• The Company ended 4Q24 with a solid liquidity position of $593.9M, consisting of $137.0M in cash and $456.9M in available credit.

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/239566

FAQ

What caused ARLP's net income to drop in Q4 2024?

ARLP's net income dropped to $16.3M due to higher operating expenses and $31.1M in non-cash impairment charges related to MC Mining operations.

How much did ARLP's revenue decline in Q4 2024?

ARLP's total revenues decreased by 5.6% year-over-year to $590.1M in Q4 2024.

What was ARLP's liquidity position at the end of Q4 2024?

ARLP ended Q4 2024 with total liquidity of $593.9M, consisting of $137.0M in cash and $456.9M in available credit.

How much did ARLP invest in mineral interest acquisitions during Q4 2024?

ARLP completed $9.6M in mineral interest acquisitions for its O&G royalties business during Q4 2024.

What was ARLP's coal inventory target achievement in FY2024?

ARLP reached its coal inventory goal of 0.6 million tons for FY2024.