Alliance Resource Partners Misses Q3 Earnings and Revenue Estimates, Shares Decline

TULSA, Okla. - Alliance Resource Partners (NASDAQ:ARLP) announced third-quarter results that fell below analyst expectations, causing its shares to drop by 2.4% in early trading.
The coal producer reported earnings of $0.66 per share, which was below the consensus estimate of $0.86. Revenue reached $613.6 million, also below analysts' expectations of $641.98 million.
Total coal sales volumes in the quarter decreased by 0.9% year-over-year to 8.38 million tons. The coal sales price per ton fell by 2.1% compared to the same period last year, coming in at $63.57.
Chairman, President, and CEO Joseph W. Craft III stated, "In the third quarter, we achieved sequential improvements in revenue, coal sales, and mineral volumes, but revenues fell short of our expectations. This was primarily due to low coal sales volumes and pricing from export sales of our MC Mining, Mettiki, and Hamilton operations, as well as shipment delays in some of our higher-priced domestic contracted commitments."
The company maintained its full-year guidance, projecting total coal sales volumes in the range of 33.5-34.5 million tons for 2024.
Alliance Resource Partners declared a quarterly cash distribution of $0.70 per unit, consistent with the previous quarter.
Despite missing earnings expectations, management highlighted growth in its oil and gas royalty business, emphasizing that volumes in the quarter increased by 11.9% year-over-year to 864 MBOE.