# Alliance Resource Partners, L.P. (ARLP) Q2 2025 Financial Results Summary
**Release Date: July 28, 2025**
Alliance Resource Partners, L.P. (NASDAQ: ARLP) has released its financial and operating results for the second quarter ended June 30, 2025. Here are the key highlights from the report:
### Financial Highlights
– **Total Revenue**: $547.5 million
– A decrease of **7.7%** from $593.4 million in Q2 2024.
– **Net Income**: $59.4 million ($0.46 per unit)
– A decrease of **40.7%** from $100.2 million ($0.77 per unit) in Q2 2024.
– **Adjusted EBITDA**: $161.9 million
– A decrease of **10.7%** from $181.4 million in Q2 2024.
### Operational Highlights
– **Coal Sales Volume**: 8.4 million tons
– An increase of **6.8%** from 7.9 million tons sold in Q2 2024.
– **Coal Sales Prices**:
– Average price decreased by **11.3%** year-over-year.
– **Oil & Gas Royalties**:
– BOE volumes increased by **7.7%** compared to Q2 2024.
### Dividends and Cash Distribution
– **Quarterly Cash Distribution**: Declared at **$0.60 per unit**
– Annualized rate of **$2.40 per unit**.
– Payable on August 14, 2025, for unitholders of record on August 7, 2025.
### Period Comparisons
#### Comparison with Q2 2024:
– **Total Revenue**: Decreased by **7.7%**.
– **Net Income**: Decreased by **40.7%**.
– **Adjusted EBITDA**: Decreased by **10.7%**.
#### Sequential Comparison (Q1 2025):
– **Total Revenue**: Increased by **1.3%** from $540.5 million.
– **Net Income**: Decreased by **16.4%** from $73.9 million.
– **Adjusted EBITDA**: Increased by **1.2%** from $159.9 million.
### Capital Expenditure and Financial Position
– **Total Debt**: $477.4 million.
– **Liquidity**: $499.2 million including $55.0 million cash.
– **Leverage Ratios**:
– Total leverage ratio: **0.77x**.
– Net leverage ratio: **0.69x**.
### Segment Analysis
– **Coal Operations**:
– Increased sales volumes in the Illinois Basin by **15.2%** year-over-year.
– Sales prices in the Illinois Basin decreased by **10.1%** year-over-year.
– **Royalties**:
– Segment Adjusted EBITDA for Oil & Gas Royalties decreased to $29.9 million—down **4.5%** from Q2 2024.
– Coal Royalties segment saw an increase to $11.8 million—up **18.7%** from Q2 2024.
### Company Outlook
– The company adjusted its guidance for 2025 operational realities and anticipated increased coal sales in the Illinois Basin.
– Anticipated coal sales in Appalachia were reduced.
### Management Commentary
– CEO Joseph W. Craft III highlighted operational challenges at Tunnel Ridge but noted improved conditions post-longwall move.
– He acknowledged robust domestic market fundamentals due to higher natural gas prices, which are conducive for coal burns.
### Summary
In conclusion, while Alliance Resource Partners reported a notable decline in revenues and net income compared to Q2 2024, operational coal sales volumes showed growth, underscoring resilience in specific operational areas. The quarterly cash distribution was also confirmed, reflecting ongoing confidence in financial management and cash flows amidst fluctuating market conditions.
Here are the extracted tables from the press release:
### ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA (In thousands, except unit and per unit data) (Unaudited)
| Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|
| June 30, 2025 | 2024 | June 30, 2025 | 2024 | |
| Tons Sold | 8,382 | 7,851 | 16,153 | 16,525 |
| Tons Produced | 8,105 | 8,437 | 16,562 | 17,551 |
| Mineral Interest Volumes (BOE) | 880 | 817 | 1,760 | 1,715 |
| SALES AND OPERATING REVENUES: | ||||
| Coal sales | $ 485,469 | $ 512,659 | $ 953,980 | $ 1,074,538 |
| Oil & gas royalties | 35,473 | 36,429 | 71,557 | 73,459 |
| Transportation revenues | 8,558 | 26,701 | 18,758 | 57,454 |
| Other revenues | 17,963 | 17,561 | 43,636 | 39,596 |
| Total revenues | 547,463 | 593,350 | 1,087,931 | 1,245,047 |
| EXPENSES: | ||||
| Operating expenses (excluding depreciation, depletion and amortization) | 346,288 | 351,605 | 685,724 | 715,464 |
| Transportation expenses | 8,558 | 26,701 | 18,758 | 57,454 |
| Outside coal purchases | 7,179 | 10,608 | 14,524 | 19,720 |
| General and administrative | 20,380 | 20,562 | 40,960 | 42,691 |
| Depreciation, depletion and amortization | 76,340 | 66,454 | 144,969 | 132,003 |
| Total operating expenses | 458,745 | 475,930 | 904,935 | 967,332 |
| INCOME FROM OPERATIONS | 88,718 | 117,420 | 182,996 | 277,715 |
| Interest expense, net | -9,252 | -9,277 | -17,686 | -17,026 |
| Interest income | 570 | 2,084 | 1,437 | 3,360 |
| Net loss on equity method investments | -1,536 | -152 | -3,542 | -705 |
| Change in fair value of digital assets | 12,856 | -3,748 | 7,282 | 8,105 |
| Impairment loss on investments | -25,000 | -25,000 | ||
| Other income (expense) | 17 | -958 | 628 | -1,564 |
| INCOME BEFORE INCOME TAXES | 66,373 | 105,369 | 146,115 | 269,885 |
| INCOME TAX EXPENSE | 5,348 | 3,860 | 9,530 | 8,809 |
| NET INCOME | 61,025 | 101,509 | 136,585 | 261,076 |
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | -1,615 | -1,322 | -3,192 | -2,832 |
| NET INCOME ATTRIBUTABLE TO ARLP | $ 59,410 | $ 100,187 | $ 133,393 | $ 258,244 |
| EARNINGS PER LIMITED PARTNER UNIT – BASIC AND DILUTED | $ 0.46 | $ 0.77 | $ 1.03 | $ 1.98 |
| WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED | 128,428,024 | 128,061,981 | 128,347,131 | 127,866,439 |
### ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except unit data) (Unaudited)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 55,004 | $ 136,962 |
| Trade receivables (net of allowance of $5,243 and $2,087, respectively) | 177,659 | 166,829 |
| Other receivables | 4,598 | 10,158 |
| Inventories, net | 138,712 | 120,661 |
| Advance royalties | 9,537 | 11,422 |
| Digital assets | 58,030 | 45,037 |
| Prepaid expenses and other assets | 17,586 | 22,161 |
| Total current assets | 461,126 | 513,230 |
| PROPERTY, PLANT AND EQUIPMENT: | ||
| Property, plant and equipment | 4,516,603 | 4,435,535 |
| Less accumulated depreciation, depletion and amortization | -2,341,659 | -2,269,265 |
| Total property, plant and equipment, net | 2,174,944 | 2,166,270 |
| OTHER ASSETS: | ||
| Advance royalties | 77,395 | 70,264 |
| Equity method investments | 29,628 | 35,532 |
| Equity securities | 67,541 | 92,541 |
| Debt securities | 13,046 | |
| Operating lease right-of-use assets | 16,045 | 15,871 |
| Other long-term assets | 29,721 | 22,022 |
| Total other assets | 233,376 | 236,230 |
| TOTAL ASSETS | $ 2,869,446 | $ 2,915,730 |
| LIABILITIES AND PARTNERS’ CAPITAL | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 98,248 | $ 98,188 |
| Accrued taxes other than income taxes | 24,596 | 21,051 |
| Accrued payroll and related expenses | 29,937 | 26,946 |
| Accrued interest | 1,853 | 1,821 |
| Workers’ compensation and pneumoconiosis benefits | 14,837 | 14,838 |
| Other current liabilities | 42,298 | 48,023 |
| Current maturities, long-term debt, net | 23,081 | 22,275 |
| Total current liabilities | 234,850 | 233,142 |
| LONG-TERM LIABILITIES: | ||
| Long-term debt, excluding current maturities, net | 439,023 | 450,885</ |
