Alliance Resource Partners (ARLP) Q2 2026 earnings summary

Executive summary

• Q2 2026 results showed higher revenue, net income, and adjusted EBITDA year-over-year and sequentially, driven by increased coal sales volumes, improved cost performance, and record oil & gas royalties.

• Completed the $206.2 million acquisition of AllDale III & IV, expanding mineral and royalty interests and adding 48,500 net royalty acres.

• Operations benefited from productivity gains at Tunnel Ridge, Hamilton, and Riverview, with no major longwall moves expected until 2027.

• Ceased longwall production at the Mettiki mining complex, resulting in a $37.8 million asset impairment.

• Distributable cash flow reached $108.2 million, with a distribution coverage ratio of 1.39x, both improving 39% sequentially.

Financial highlights

• Q2 2026 revenues were $551.6 million, up 0.7%–6.9% year-over-year and sequentially, driven by oil & gas royalties and higher coal volumes.

• Net income attributable to partners/unitholders increased 33.9% year-over-year to $79.6 million ($0.61 per unit).

• Adjusted EBITDA for Q2 2026 was $185.7 million, up 14.7%–16% year-over-year; for the six months, Adjusted EBITDA rose 7.6% to $390.6 million.

• Distributable cash flow was $108.2 million; cash on hand was $111.2 million as of June 30, 2026.

• Held 646 Bitcoins valued at $37.8–$37.9 million, with a $6.3 million sequential decrease in fair value.

Outlook and guidance

• Coal sales volume guidance for 2026 is 33.75–35.25 million tons; sales price guidance at $54–$56/ton; segment adjusted EBITDA expense guidance at $37–$39/ton.

• Oil & gas royalty segment full-year volume guidance increased to reflect AllDale III & IV acquisition, with consolidated reporting starting Q3 2026.

• Management expects sufficient liquidity to meet 2026 cash requirements, including capital expenditures and debt service.

• Anticipated 2026 capital expenditures are projected at $280–$300 million; average annual maintenance capex over five years projected at $7.23/ton produced.

• 29.4 million tons already committed and priced for 2027; focus on leverage reduction and disciplined acquisitions.