Alliance Resource Partners L.P. (NASDAQ:ARLP) posted first-quarter results on Monday that fell short of earnings expectations but came in slightly ahead on revenue, prompting a positive reaction in early trading.
The stock rose 3.61% in pre-market activity following the release.
The company reported adjusted earnings per share of $0.07, missing analyst forecasts of $0.34. However, revenue reached $516.0 million, edging above the consensus estimate of $514.95 million, though down 4.5% from $540.5 million a year earlier.
Net income dropped to $9.1 million compared with $74.0 million in the first quarter of 2025, while adjusted EBITDA declined 3.1% year-over-year to $155.0 million.
Coal sales volumes increased modestly by 1.1% to 7.86 million tons, although average prices fell 6.5% per ton to $56.40.
Results were affected by a $37.8 million non-cash impairment charge tied to the Mettiki mine, reflecting the halt of longwall production and uncertainty over future operations. The company also recorded an $11.6 million reduction in the fair value of its digital asset holdings.
“Most of our coal operations performed better than expected during the quarter, however meaningful weather-related shipment disruptions relating to Winter Storm Fern delayed sales volumes for the quarter,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer.
The oil and gas royalties segment delivered record performance, with revenue rising 14.6% year-over-year and volumes up 16.1%. During the quarter, the partnership completed $16.2 million in acquisitions of oil and gas mineral interests.
Alliance Resource Partners declared a quarterly cash distribution of $0.60 per unit, equivalent to $2.40 on an annualized basis, payable on May 15, 2026.
Looking ahead to full-year 2026, the company expects total coal sales volumes in the range of 33.75 to 35.25 million tons, with more than 95% of projected volumes already contracted and priced at the midpoint of its guidance.