TULSA, Okla. - Alliance Resource (NASDAQ:ARLP) Partners, L.P. (NASDAQ: ARLP) today reported a shortfall in earnings and revenue for the second quarter of 2024. The company's earnings per share (EPS) came in at $0.77, which was below the analyst consensus estimate of $0.95.
Revenue also missed expectations, with the company posting $593.4 million against an anticipated $629.45 million.
The second quarter's revenue represented a decrease of 7.6% compared to the same period last year, primarily due to reduced coal sales volumes, which declined by 11.8% due to transportation delays. However, coal sales price realizations saw a 3.8% increase year-over-year (YoY), reaching $65.30 per ton sold.
Joseph W. Craft III, Chairman, President, and Chief Executive Officer of ARLP, commented on the quarter's performance, highlighting the company's enhanced liquidity position.
"The successful completion of our Senior Notes offering further strengthened our balance sheet and represents a vote of confidence from the capital markets for our business strategy and plans for execution," said Craft. He also noted that coal sales volumes were impacted by flooding on the Ohio River and the Baltimore bridge incident, which disrupted rail and port logistics, leading to higher inventory levels.
Despite the challenges faced in the second quarter, the company's Oil & Gas Royalties segment reported a 6.8% increase in BOE volumes YoY, driven by production growth from recently drilled and completed wells in their Permian-weighted minerals portfolio.
Looking ahead, ARLP has adjusted its full-year guidance for coal operations, expecting to sell approximately 34.0 million tons in 2024, which is 2.6% below the mid-point of the original guidance for the year. The company also anticipates more than half of its uncontracted tonnage position will be sold in the domestic market due to increased summer burn.
Craft remains optimistic about the future, stating, "The increase in coal-fired generation and inventory drawdown is constructive for the U.S. thermal coal market and for ARLP as we look forward to next year and beyond. We remain confident in the core fundamentals expected to drive rapid growth in electricity demand for many years to come."
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