Alliance Resource Partners, L.P. (NASDAQ:ARLP) reported mixed second-quarter results on Monday, delivering revenue above Wall Street expectations while earnings came in slightly below forecasts.
Shares of the coal producer and energy royalty company edged 0.16% higher in pre-market trading following the earnings release.
Adjusted earnings per unit came in at $0.61, falling short of analysts’ consensus estimate of $0.63. Revenue, however, increased to $551.6 million, exceeding expectations of $545.89 million and rising 0.7% from $547.5 million in the same quarter last year.
Higher profit driven by stronger operating performance
Net income attributable to Alliance Resource Partners climbed 33.9% year over year to $79.6 million, supported by higher revenue and increased income from equity method investments.
Adjusted EBITDA rose 14.7% to $185.7 million, compared with $161.9 million in the second quarter of 2025, reflecting improved operational performance across the business.
The partnership also reported stronger coal demand during the quarter, with coal sales volumes increasing 2.1% year over year to 8.6 million tons.
Meanwhile, its Oil & Gas Royalties business delivered record quarterly revenue of $46.3 million, representing a 30.5% increase from the prior-year period.
Coal operations maintain strong momentum
“Our coal operations performed well during the quarter, highlighted by strong productivity and disciplined cost control,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer. “River View and Tunnel Ridge generated superior operating results, driving Segment Adjusted EBITDA expense per ton sold lower by 6.3% YoY and 6.6% sequentially.”
Distribution maintained as guidance updated
Alliance Resource Partners declared a quarterly cash distribution of $0.60 per unit, equivalent to an annualized payout of $2.40 per unit. The distribution will be paid on August 14, 2026.
The partnership’s Distribution Coverage Ratio improved to 1.39x during the quarter, increasing 39% from the previous quarter.
Looking ahead, the company updated its full-year 2026 outlook following the completion of its $206.2 million acquisition of oil and gas mineral interests on July 1.
Alliance Resource Partners now expects annual coal sales of between 33.75 million and 35.25 million tons, with an average realized coal sales price of $54.00 to $56.00 per ton.
The company also forecast Oil & Gas Royalties production of 1.95 million to 2.05 million barrels of oil, 10.0 billion to 10.5 billion cubic feet of natural gas, and 1.1 million to 1.2 million barrels of natural gas liquids for the full year.
Alliance Resource Partners stock price
