ARLP · Alliance Resource Partners, L.P.

Alliance Resource Partners reported a challenging first quarter of 2026, with net income attributable to ARLP falling significantly to $9.1 million, or $0.07 per unit, compared to $74.0 million, or $0.57 per unit, in the prior year period. The decline was driven by lower coal sales pricing, a $37.8 million non-cash asset impairment charge at the Mettiki mine due to ceased longwall production, and an $11.6 million decrease in the fair value of digital assets. Total revenues decreased 4.5% year-over-year to $516.0 million, primarily due to lower coal sales pricing, partially offset by record oil & gas royalty revenues. Adjusted EBITDA decreased 3.1% year-over-year to $155.0 million.

Operationally, the Illinois Basin saw a slight increase in tons sold, but Segment Adjusted EBITDA fell 21.4% due to lower pricing and higher costs from a planned extended longwall move at the Hamilton mine. Appalachia operations showed resilience, with Tunnel Ridge posting production gains of approximately 28%, contributing to a 67.9% increase in Segment Adjusted EBITDA for the region. The Oil & Gas Royalties segment was a bright spot, delivering record revenues and volumes, up 14.6% and 16.1% respectively, driven by increased drilling activity and acquisitions. The Partnership maintained a strong balance sheet with a net leverage ratio of 0.69x and total liquidity of $431.2 million. Management noted that 2026 expected coal sales volumes are over 95% committed and priced. Looking ahead, ARLP updated its 2026 guidance, increasing oil & gas volume guidance based on year-to-date outperformance, while maintaining constructive demand outlook for coal supported by growing power demand.