Alliance Resource Partners, L.P.
- Open
- 24.80
- Day high
- 24.90
- Day low
- 24.50
- Prev close
- 24.66
- Volume
- 111K
- Mkt cap
- $3.2B
- P/E (TTM)
- 12.9
- EPS (TTM)
- $1.93
- P/B
- 1.8
- P/S
- 1.5
- Yield
- 9.74%
- Per share
- $2.40
Alliance Resource Partners, L.P. (ARLP) is a Energy company listed on NASDAQ. The stock is down 11% over the past year. Drillr has 1 published research article covering ARLP.
Alliance Resource Partners, L.P. (ARLP) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARLP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 27, 2026 | $0.27 | $0.37 | +37.0% | $516M | -0.4% |
| Feb 2, 2026 | $0.61 | $0.75 | +23.0% | $536M | -2.0% |
| Feb 3, 2025 | $0.60 | $0.22 | -63.3% | $590M | -7.2% |
| Jan 29, 2024 | $1.14 | $0.88 | -22.8% | $625M | -5.5% |
| Oct 27, 2023 | $1.28 | $1.18 | -7.8% | $637M | -4.6% |
| May 2, 2023 | $1.26 | $1.45 | +15.1% | $663M | -0.9% |
| Jan 30, 2023 | $1.42 | $1.63 | +14.8% | $701M | +1.8% |
| Aug 1, 2022 | $0.96 | $1.23 | +28.1% | $617M | +10.7% |
| May 2, 2022 | $0.57 | $0.28 | -50.9% | $461M | +3.0% |
| Jan 31, 2022 | $0.69 | $0.41 | -40.6% | $473M | +2.4% |
| Feb 1, 2021 | $0.08 | $0.27 | +237.5% | $367M | +0.8% |
| Jul 27, 2020 | $-0.45 | $-0.37 | +17.8% | $255M | -14.0% |
ARLP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Feb 19, 2026 | MARSHALL CARY Pofficer: SENIOR VP AND CFO | Tax | 13,880 | $24.37 |
| Feb 19, 2026 | Tholen Kirkofficer: SENIOR VICE PRESIDENT | Option | 34,080 | — |
| Feb 19, 2026 | WYNNE THOMAS Mofficer: SENIOR VICE PRESIDENT AND COO | Tax | 15,228 | $24.37 |
| Feb 19, 2026 | WYNNE THOMAS Mofficer: SENIOR VICE PRESIDENT AND COO | Option | 34,080 | — |
| Feb 19, 2026 | CORDLE MEGAN Jofficer: VP, CONTROLLER AND CAO | Option | 6,086 | — |
| Feb 19, 2026 | Watson Mark Allenofficer: SrVP - Operations & Technology | Tax | 5,711 | $24.37 |
| Feb 19, 2026 | CORDLE MEGAN Jofficer: VP, CONTROLLER AND CAO | Tax | 2,992 | $24.37 |
| Feb 19, 2026 | Whelan Timothy Jofficer: SENIOR VICE PRESIDENT SALES | Option | 29,211 | — |
| Feb 19, 2026 | Tholen Kirkofficer: SENIOR VICE PRESIDENT | Tax | 15,200 | $24.37 |
| Feb 19, 2026 | Watson Mark Allenofficer: SrVP - Operations & Technology | Option | 12,317 | — |
| Feb 19, 2026 | Whelan Timothy Jofficer: SENIOR VICE PRESIDENT SALES | Tax | 13,110 | $24.37 |
| Feb 19, 2026 | MARSHALL CARY Pofficer: SENIOR VP AND CFO | Option | 30,945 | — |
| Jan 29, 2026 | MARSHALL CARY Pofficer: SENIOR VP AND CFO | Grant | 30,945 | — |
| Jan 29, 2026 | CORDLE MEGAN Jofficer: VP, CONTROLLER AND CAO | Grant | 6,086 | — |
| Jan 29, 2026 | Watson Mark Allenofficer: SrVP - Operations & Technology | Grant | 12,317 | — |
Source: ARLP SEC Form 4 filings, latest Feb 19, 2026. For informational purposes only — not investment advice.
See the full ARLP insider & 13F page →ARLP research & analysis
Alliance Resource Partners, L.P. company profile
Overview
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a diversified natural resource company founded in 1971 and headquartered in Tulsa, Oklahoma. The company went public in 1999 and has evolved from a traditional coal mining operation into a broader energy company with interests in coal production, oil and gas royalties, and emerging energy technologies. ARLP operates as a master limited partnership (MLP), which allows it to pass through income directly to unitholders while avoiding corporate-level taxation. The company has weathered significant industry challenges over the past decade, including declining coal demand and regulatory pressures, while strategically diversifying its revenue streams and maintaining its position as one of the largest coal producers in the United States.
Business
Alliance Resource Partners operates through four primary business segments that span traditional and emerging energy markets. The company's core business remains coal mining and marketing, where it produces both thermal coal (used for electricity generation) and metallurgical coal (used in steel production) from seven underground mining complexes across Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. The company controls approximately 547.1 million tons of proven and probable coal mineral reserves and operates sophisticated longwall mining systems that extract coal from underground seams. The coal operations are divided into two geographic segments: the Illinois Basin Coal Operations and Appalachia Coal Operations. The Illinois Basin produces primarily low-sulfur thermal coal that is favored by utilities for its environmental characteristics, while the Appalachian operations produce both thermal and metallurgical coal with varying sulfur and heat contents. Coal represents the majority of the company's revenue, typically accounting for approximately 85-90% of total revenues. The company's Oil & Gas Royalties segment has become increasingly important, representing roughly 8-12% of revenues. This segment involves owning mineral rights and royalty interests in approximately 1.5 million gross acres across major oil and gas producing regions, primarily in the Permian Basin of Texas, the Anadarko Basin, and the Williston Basin. Rather than operating wells directly, ARLP receives royalty payments from operators who extract oil and natural gas from these properties. The Coal Royalties segment generates income from leasing coal mineral rights to other mining companies. Additionally, ARLP provides various mining technology products and services, including data network systems, communication and tracking systems, mining proximity detection systems, and industrial collision avoidance systems. The company also operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana, and engages in coal trading activities.
Revenue model
Alliance Resource Partners generates revenue through multiple streams, with coal sales representing the dominant source of income. The company sells coal primarily through long-term contracts with electric utilities and industrial customers, typically securing 75-90% of its annual production volumes under multi-year agreements. These contracts provide price stability and predictable cash flows, though they also limit upside potential during periods of strong spot market pricing. The remaining coal production is sold in the spot market or through shorter-term contracts, allowing the company to capitalize on favorable market conditions. Coal pricing is influenced by several factors including natural gas prices (coal's primary competitor for electricity generation), weather patterns that affect electricity demand, environmental regulations, and global coal market dynamics. When natural gas prices rise, coal becomes more economically attractive for power generation, typically leading to higher coal prices and increased demand. Conversely, mild weather reduces electricity demand and can depress coal prices. The Oil & Gas Royalties segment operates on a fundamentally different model, generating income through royalty payments typically ranging from 12.5% to 25% of the value of oil and gas production from the company's mineral interests. This business model requires minimal ongoing capital investment once the mineral rights are acquired, making it highly cash generative. Revenue from this segment fluctuates with commodity prices and production volumes from the underlying wells. Factors that increase margins include higher electricity demand (driven by economic growth, extreme weather, or data center expansion), rising natural gas prices that make coal more competitive, supply constraints in coal markets, and successful cost reduction initiatives at mining operations. Margin pressures come from environmental regulations that favor cleaner energy sources, competition from renewable energy and natural gas, challenging geological conditions that increase mining costs, and regulatory compliance expenses. The company's margin profile is also affected by transportation costs, as coal must be shipped via rail or barge to customers, and these logistics costs can vary significantly based on infrastructure constraints and fuel prices.
Competitive moat
Alliance Resource Partners operates in a commodity business with limited traditional moats, but the company has developed several competitive advantages that provide some protection against competition. The most significant advantage is the company's strategic geographic positioning in the Illinois Basin, where it produces low-sulfur thermal coal that meets environmental standards without requiring expensive scrubbing equipment at power plants. This gives ARLP's coal a cost advantage over higher-sulfur alternatives and helps maintain customer relationships. The company's long-term contract structure provides another form of competitive protection, as utilities typically prefer reliable, long-term suppliers for their baseload power generation needs. ARLP has cultivated relationships with utility customers over decades, and switching costs for utilities can be significant given the need for consistent coal quality and reliable delivery schedules. The company's ownership of transportation infrastructure, including its Ohio River loading terminal, provides additional competitive advantages by controlling logistics costs and ensuring reliable delivery capabilities. However, the company's moat is fundamentally weak due to the secular decline in coal demand driven by environmental concerns, regulatory pressures, and competition from cheaper natural gas and renewable energy sources. The coal industry faces existential challenges as utilities retire coal-fired power plants and governments implement policies favoring cleaner energy sources. While ARLP has diversified into oil and gas royalties, this segment also operates in commodity markets with limited differentiation. The company's investments in energy transition technologies and its strategic pivot toward serving data centers and industrial customers represent attempts to build new competitive advantages, but these initiatives are still in early stages. The oil and gas royalty business provides more stable cash flows but faces potential disruption from the broader energy transition. Overall, ARLP's competitive position is challenged by powerful secular headwinds, though the company has demonstrated resilience and adaptability in navigating industry challenges.
Risks & safety
Alliance Resource Partners maintains a moderate margin of safety with manageable debt levels but faces industry-specific risks that create uncertainty about long-term viability. • Liquidity and Debt: Strong current ratio of 1.93, cash position of $81.3 million, and total liquidity of approximately $666 million including credit facilities. Debt-to-equity ratio of 0.23 indicates conservative leverage. • Cash Generation: Robust free cash flow generation of $374.4 million in 2024, with operating cash flow of $803.1 million demonstrating strong cash conversion despite industry headwinds. • Valuation Metrics: Trading at reasonable multiples with P/E ratio of 11.8, EV/EBITDA of 7.0, and price-to-book ratio of 1.68. Graham number suggests potential undervaluation at current prices. • Distribution Coverage: Quarterly distribution of $0.70 per unit appears sustainable based on current cash generation, though subject to commodity price volatility. • Industry Risk: Primary concern is secular decline in coal demand, regulatory pressures, and potential stranded assets as utilities retire coal plants earlier than expected.
Recent development
Over the past few years, Alliance Resource Partners has undertaken several strategic initiatives to adapt to changing energy markets and diversify its revenue base. The company has significantly expanded its oil and gas royalties segment through strategic acquisitions, particularly in the Permian Basin, investing over $100 million in mineral rights acquisitions since 2020. This segment has grown from generating $42 million in adjusted EBITDA in 2020 to $122 million in 2023, representing a key diversification away from coal dependence. The company has also invested in energy transition technologies, committing up to $90 million in companies like Francis Energy (EV charging infrastructure) and Infinitum Electric (high-efficiency electric motors). These investments represent ARLP's attempt to participate in the broader energy transition while leveraging its operational expertise and cash generation capabilities. In response to challenging market conditions, ARLP has focused heavily on operational improvements and cost reduction initiatives. The company completed major infrastructure projects at multiple mining complexes, including new man/material shafts at Tunnel Ridge and Hamilton mines, which are expected to improve productivity and reduce costs beginning in 2025. These investments totaled over $200 million and represent the company's commitment to maintaining competitiveness in its core coal operations. The company has also adapted its commercial strategy, increasingly focusing on domestic markets over export opportunities and actively engaging with utilities about potential coal plant life extensions driven by growing electricity demand from data centers and AI infrastructure. Management has identified this emerging demand as a potential catalyst for extended coal plant operations and improved market fundamentals. Additionally, ARLP has begun exploring potential investments in data center infrastructure, recognizing the growing electricity demand from this sector as both an opportunity and a validation of the continued need for reliable baseload power generation.
ARLP company profile · for informational purposes only — not investment advice.
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