0001558370-25-010804
SEC filingARLP's Notes reveal $25M impairment on Ascend, $477M debt, and $3.6B coal revenue backlog.
As of June 30, 2025, ARLP had $55.0M in cash, down from $137.0M at year-end 2024. Total debt net of unamortized discount was $462.1M, comprising $400M 8.625% senior notes due 2029, $38.7M term loan, $38.4M equipment financing, and $23.1M current maturities. The revolving credit facility had $384M available. Liquidity remains adequate with $60.2M available under the securitization facility. Partners' capital stood at $1.812B, including $19.4M noncontrolling interest. Digital assets (Bitcoin) were marked at $58.0M (fair value), up from $45.0M at year-end.
While no explicit purchase commitments are disclosed in the Notes, ARLP reports a coal revenue backlog of $3.614B from current supply contracts, with $960M expected in 2025, $1.172B in 2026, $715M in 2027, and $766M thereafter. Contingent consideration related to the Hamilton acquisition was $10.7M at fair value, with $4.4M paid in H1 2025. The company also has $25M committed to Gavin Generation (funded $22.1M post-June 30) and $10.9M funded of $25M committed to NGP ET IV.
Dividends: $0.70 per unit paid in Q1 and Q2 2025, totaling $181.6M; a $0.60 distribution was declared for Q3. No buybacks were authorized or executed. Debt net decreased by $13.3M during H1 2025, with $7.0M repaid on equipment financings and no new borrowings. Capital expenditures totaled $153.8M (14.1% of sales), down from $225.3M in H1 2024, with $148.9M directed to segments (Illinois Basin $102.7M, Appalachia $46.1M). An impairment loss of $25.0M was recorded on the Ascend investment.
Four reportable segments: Illinois Basin Coal Operations (revenue $350.2M in Q2, -1.3% YoY), Appalachia Coal Operations ($146.0M, -22.4%), Oil & Gas Royalties ($35.5M, -2.6%), and Coal Royalties ($17.6M, +6.2%). Segment Adjusted EBITDA (a non-GAAP metric used by CODM) was $185.4M total in Q2, down from $204.6M a year ago. Segment assets totaled $2.705B as of June 30, with Illinois Basin holding a plurality ($1.077B). The Other, Corporate and Elimination category includes digital assets, equity investments, and eliminations.
Operating cash flow (CFO) decreased significantly to $297.4 million from $425.4 million in the prior year period, a 30.1% decline. This drop suggests weaker underlying cash generation, possibly due to lower coal prices or volumes. Capital expenditures were $153.8 million, down from $225.3 million, indicating reduced investment activity. Despite lower CFO, the partnership maintained distributions of $181.6 million, which exceeded CFO, implying reliance on cash reserves or financing. Free cash flow (not explicitly stated) would be approximately $143.6 million (CFO minus capex) in the current period, but it's not reported. The investing activities also include $2.7 million for oil & gas reserve asset acquisitions and $2.1 million for debt securities. Financing activities show net debt repayments of $13.3 million and proceeds from securitization facility borrowings and repayments netting to zero. The net change in cash was a decrease of $82.0 million, ending at $55.0 million. Supplemental disclosures indicate cash paid for interest of $23.2 million and income taxes of $11.3 million. Overall, cash flow quality is lower due to the CFO decline and high distribution payout.