Alliance Resource Partners, L.P. (NASDAQ:ARLP) reported fourth-quarter earnings on Monday that came in ahead of expectations, even as revenue missed consensus forecasts, helped by lower operating costs and stronger investment income.
Units of the coal and minerals producer rose 1.39% in premarket trading following the announcement.
Alliance posted net income of $82.7 million for the quarter, equivalent to $0.64 per unit, beating analysts’ estimates of $0.62 per unit. Revenue totaled $535.5 million, below the consensus forecast of $555.1 million and down 9.2% from $590.1 million in the same quarter a year earlier.
Operationally, the company reported record oil and gas royalty volumes, which increased 20.2% year on year. Coal production volumes also rose sharply, climbing 18.7% to 8.2 million tons compared with the prior-year period. Adjusted EBITDA surged 54.1% to $191.1 million, up from $124.0 million a year earlier.
“Our team delivered solid performance to close out the fourth quarter and full year,” said Joseph W. Craft III, chairman, president and chief executive officer. “We achieved record Oil & Gas royalty volumes, underscoring the quality of our minerals portfolio.”
Cost efficiency improved across key regions. Segment adjusted EBITDA expense per ton in the Illinois Basin fell 14.4% from a year earlier, reflecting higher production at the Hamilton mine due to fewer longwall move days and improved recoveries. In Appalachia, expense per ton declined 17.5% year on year.
Looking ahead to 2026, Alliance Resource expects coal sales volumes of between 33.75 million and 35.25 million tons, with more than 93% of planned sales already committed and priced. The company also declared a quarterly cash distribution of $0.60 per unit, equivalent to $2.40 per unit on an annualized basis.
At the end of the quarter, Alliance reported total liquidity of $518.5 million, including $71.2 million in cash and cash equivalents, and maintained a low leverage ratio of 0.66 times total debt to trailing twelve-month adjusted EBITDA.