Alliance Resource Partners (ARLP) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results exceeded internal targets, with total revenue of $516 million, driven by record oil and gas royalty volumes and higher commodity prices, despite lower coal sales pricing and volumes.

• Net income attributable was $9.1 million ($0.07/unit), down from $74 million ($0.57/unit) year-over-year, impacted by lower coal sales, higher depreciation, digital asset fair value decrease, and a $37.8 million non-cash impairment at Mettiki.

• Adjusted EBITDA was $155 million, down 3.1% year-over-year and 18.9% sequentially, reflecting higher costs at Hamilton and Mettiki.

• Coal operations met expectations despite weather-related shipment delays and a planned longwall move at Hamilton.

• Health and safety performance ranked among the best in five years.

Financial highlights

• Total revenues were $516 million, down 4.5% year-over-year and 3.6% sequentially, primarily due to lower coal sales pricing, partially offset by record oil & gas royalties and higher coal sales volumes.

• Oil & gas royalty revenues and volumes reached record levels, up 14.6% and 16.1% year-over-year, respectively.

• Distributable cash flow was $77.8 million; distribution coverage ratio was 1x.

• Total liquidity stood at $431.2 million, with $507.7 million in total debt and net leverage ratio at 0.69x.

• Operating cash flow was $105.5 million, down from $145.7 million in Q1 2025; capital expenditures increased to $95.7 million.

Outlook and guidance

• Over 95% of 2026 expected coal sales volumes are committed and priced at the midpoint of guidance.

• Guidance for coal sales volumes, pricing, and segment Adjusted EBITDA expense per ton maintained; oil and gas royalty segment 2026 volume guidance raised by ~5%.

• All planned longwall moves for 2026 will be completed in Q2, improving operational visibility for the second half.

• Expect shipment disruptions from Winter Storm Fern to be recovered over the year; no further longwall moves expected after Q2 2026.

• Projected annual maintenance capital expenditures of $7.23 per ton produced and total 2026 capital expenditures estimated at $280–$300 million.