Alliance Resource Partners, L.P. Reports Fourth Quarter Financial and Operating Results; Declares Quarterly Cash Distribution of $0.70 Per Unit; and Provides 2025 Guidance
Highlights
-
Full year 2024 total revenue of
$2.4 billion $360.9 million $714.2 million -
Record full year 2024 oil & gas royalty volumes of 3.4 million BOE, up
9.6% year-over-year -
Fourth quarter 2024 total revenue of
$590.1 million $16.3 million $124.0 million -
Completed
$9.6 million -
In January 2025, declared quarterly cash distribution of
$0.70 $2.80
Total revenues in the 2024 Quarter decreased
Total revenues in the 2024 Quarter decreased
Total revenues decreased
CEO Commentary
"Due to the continued strength of our coal contracts, our average coal sales price per ton for the 2024 Full Year of
Mr. Craft continued, "Having substantially completed major infrastructure projects at Tunnel Ridge,
Mr. Craft concluded, "The increase in forecasted electricity demand, particularly from data centers and growth in AI, is highlighting the inadequacy of current resource plans without extended use of fossil fuel plants. These market realities, coupled with what we expect to be a more favorable regulatory environment, are laying the foundation for Alliance to continue serving as a cornerstone of the country’s reliable electricity infrastructure for years to come. We look forward to what we can achieve in 2025."
Segment Results and Analysis (Unaudited)
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% Change |
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2024 Fourth |
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2023 Fourth |
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Quarter / |
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2024 Third |
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% Change |
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(in millions, except per ton and per BOE data) |
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Quarter |
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Quarter |
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Quarter |
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Quarter |
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Sequential |
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Coal Operations (1) |
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Tons sold |
|
|
6.596 |
|
|
6.419 |
|
2.8 |
% |
|
|
5.967 |
|
10.5 |
% |
Coal sales price per ton sold |
|
$ |
54.38 |
|
$ |
55.06 |
|
(1.2 |
)% |
|
$ |
56.61 |
|
(3.9 |
)% |
Segment Adjusted EBITDA Expense per ton |
|
$ |
39.77 |
|
$ |
35.26 |
|
12.8 |
% |
|
$ |
37.79 |
|
5.2 |
% |
Segment Adjusted EBITDA |
|
$ |
101.0 |
|
$ |
130.1 |
|
(22.4 |
)% |
|
$ |
114.6 |
|
(11.9 |
)% |
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Appalachia Coal Operations |
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Tons sold |
|
|
1.819 |
|
|
2.194 |
|
(17.1 |
)% |
|
|
2.412 |
|
(24.6 |
)% |
Coal sales price per ton sold |
|
$ |
80.23 |
|
$ |
76.82 |
|
4.4 |
% |
|
$ |
80.78 |
|
(0.7 |
)% |
Segment Adjusted EBITDA Expense per ton |
|
$ |
76.79 |
|
$ |
63.52 |
|
20.9 |
% |
|
$ |
65.42 |
|
17.4 |
% |
Segment Adjusted EBITDA |
|
$ |
7.0 |
|
$ |
29.8 |
|
(76.5 |
)% |
|
$ |
37.5 |
|
(81.4 |
)% |
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Total Coal Operations |
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Tons sold |
|
|
8.415 |
|
|
8.613 |
|
(2.3 |
)% |
|
|
8.379 |
|
0.4 |
% |
Coal sales price per ton sold |
|
$ |
59.97 |
|
$ |
60.60 |
|
(1.0 |
)% |
|
$ |
63.57 |
|
(5.7 |
)% |
Segment Adjusted EBITDA Expense per ton |
|
$ |
48.09 |
|
$ |
42.91 |
|
12.1 |
% |
|
$ |
46.11 |
|
4.3 |
% |
Segment Adjusted EBITDA |
|
$ |
105.4 |
|
$ |
156.2 |
|
(32.5 |
)% |
|
$ |
149.3 |
|
(29.4 |
)% |
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Royalties (1) |
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Oil & Gas Royalties |
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||
BOE sold (2) |
|
|
0.823 |
|
|
0.809 |
|
1.7 |
% |
|
|
0.864 |
|
(4.7 |
)% |
Oil percentage of BOE |
|
|
43.3 |
% |
|
46.3 |
% |
(6.5 |
)% |
|
|
45.4 |
% |
(4.6 |
)% |
Average sales price per BOE (3) |
|
$ |
36.94 |
|
$ |
44.60 |
|
(17.2 |
)% |
|
$ |
39.87 |
|
(7.3 |
)% |
Segment Adjusted EBITDA Expense |
|
$ |
4.4 |
|
$ |
4.7 |
|
(5.1 |
)% |
|
$ |
5.8 |
|
(24.1 |
)% |
Segment Adjusted EBITDA |
|
$ |
25.6 |
|
$ |
31.0 |
|
(17.6 |
)% |
|
$ |
28.7 |
|
(10.8 |
)% |
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Coal Royalties |
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Royalty tons sold |
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|
5.491 |
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|
5.018 |
|
9.4 |
% |
|
|
5.109 |
|
7.5 |
% |
Revenue per royalty ton sold |
|
$ |
3.23 |
|
$ |
3.33 |
|
(3.0 |
)% |
|
$ |
3.26 |
|
(0.9 |
)% |
Segment Adjusted EBITDA Expense |
|
$ |
7.3 |
|
$ |
6.6 |
|
10.0 |
% |
|
$ |
5.6 |
|
30.1 |
% |
Segment Adjusted EBITDA |
|
$ |
10.5 |
|
$ |
10.2 |
|
3.6 |
% |
|
$ |
11.1 |
|
(4.8 |
)% |
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Total Royalties |
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Total royalty revenues |
|
$ |
48.5 |
|
$ |
53.0 |
|
(8.6 |
)% |
|
$ |
51.3 |
|
(5.6 |
)% |
Segment Adjusted EBITDA Expense |
|
$ |
11.7 |
|
$ |
11.3 |
|
3.7 |
% |
|
$ |
11.4 |
|
2.4 |
% |
Segment Adjusted EBITDA |
|
$ |
36.1 |
|
$ |
41.2 |
|
(12.3 |
)% |
|
$ |
39.8 |
|
(9.2 |
)% |
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Consolidated Total |
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||
Total revenues |
|
$ |
590.1 |
|
$ |
625.4 |
|
(5.6 |
)% |
|
$ |
613.6 |
|
(3.8 |
)% |
Segment Adjusted EBITDA Expense |
|
$ |
414.8 |
|
$ |
376.6 |
|
10.1 |
% |
|
$ |
393.7 |
|
5.4 |
% |
Segment Adjusted EBITDA |
|
$ |
141.6 |
|
$ |
203.2 |
|
(30.3 |
)% |
|
$ |
192.3 |
|
(26.3 |
)% |
| _________________ | |
(1) |
For definitions of Segment Adjusted EBITDA Expense and Segment Adjusted EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this release. Segment Adjusted EBITDA Expense per ton is defined as Segment Adjusted EBITDA Expense – Coal Operations (as reflected in the reconciliation table at the end of this release) divided by total tons sold. |
(2) |
Barrels of oil equivalent ("BOE") for natural gas volumes is calculated on a 6:1 basis (6,000 cubic feet of natural gas to one barrel). |
(3) |
Average sales price per BOE is defined as oil & gas royalty revenues excluding lease bonus revenue divided by total BOE sold. |
Coal Operations
Total coal sales volumes for the 2024 Quarter decreased
Segment Adjusted EBITDA Expense per ton for the 2024 Quarter increased by
Royalties
Segment Adjusted EBITDA for the Oil & Gas Royalties segment decreased to
Segment Adjusted EBITDA for the Coal Royalties segment increased
Balance Sheet and Liquidity
As of December 31, 2024, total debt and finance leases outstanding were
Distributions
On January 28, 2025, the Board of Directors of ARLP’s general partner (the "Board") approved a cash distribution to unitholders for the 2024 Quarter of
Outlook
"For 2025, we expect improved coal production costs to counterbalance lower market prices, keeping Coal segment margins near 2024 Full Year levels," commented Mr. Craft. "In the Oil & Gas Royalty business, we achieved record production volumes for the 2024 Full Year despite only making modest additions to our overall acreage position. We continue to favor the cash flow generation profile and ability to self-fund growth in the Oil & Gas Royalties segment, and therefore, will actively pursue growth in this segment in 2025."
Mr. Craft concluded, "Looking forward, we anticipate a more supportive regulatory environment from the new administration that will help address the growing need for affordable, reliable baseload power without prematurely retiring critical generation sources. As the realities of physics meet the needs of the grid, we believe previously announced retirements will be delayed and our products will remain a cornerstone of energy security in some of the strongest industrial growth areas of the country for years to come."
ARLP is providing the following guidance for the full year ending December 31, 2025 (the "2025 Full Year"):
2025 Full Year Guidance |
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Coal Operations |
|
|
|
|
|
Volumes (Million Short Tons) |
|
|
|
|
|
|
|
|
|
|
23.5 — 25.0 |
Appalachia Sales Tons |
|
|
|
|
8.75 — 9.25 |
Total Sales Tons |
|
|
|
|
32.25 — 34.25 |
|
|
|
|
|
|
Committed & Priced Sales Tons |
|
|
|
|
|
2025 — Domestic / Export / Total |
|
|
|
|
23.5 / 2.5 / 26.0 |
2026 — Domestic / Export / Total |
|
|
|
|
13.4 / 1.3 / 14.7 |
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|
|
Coal Sales Price Per Ton Sold (1) |
|
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|
|
|
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|
|
Appalachia |
|
|
|
|
|
Total |
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|
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|
|
|
|
|
|
Segment Adjusted EBITDA Expense Per Ton Sold (2) |
|
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|
|
|
|
|
|
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|
|
Appalachia |
|
|
|
|
|
Total |
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|
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|
|
|
|
|
|
Royalties |
|
|
|
|
|
Oil & Gas Royalties |
|
|
|
|
|
Oil (000 Barrels) |
|
|
|
|
1,550 — 1,650 |
Natural gas (000 MCF) |
|
|
|
|
6,100 — 6,500 |
Liquids (000 Barrels) |
|
|
|
|
775 — 825 |
Segment Adjusted EBITDA Expense (% of Oil & Gas Royalties Revenue) |
|
|
|
|
~ |
|
|
|
|
|
|
Coal Royalties |
|
|
|
|
|
Royalty tons sold (Million Short Tons) |
|
|
|
|
23.75 — 25.25 |
Revenue per royalty ton sold |
|
|
|
|
|
Segment Adjusted EBITDA Expense per royalty ton sold |
|
|
|
|
|
|
|
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|
Consolidated (Millions) |
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
|
|
General and administrative |
|
|
|
|
|
Net interest expense |
|
|
|
|
|
Income tax expense |
|
|
|
|
|
Total capital expenditures |
|
|
|
|
|
Growth capital expenditures |
|
|
|
|
|
Maintenance capital expenditures |
|
|
|
|
|
| _________________ | |
(1) |
Sales price per ton is defined as total coal sales revenue divided by total tons sold. |
(2) |
Segment Adjusted EBITDA Expense is defined as operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations. |
Conference Call
A conference call regarding ARLP's 2024 Quarter and Full Year financial results is scheduled for today at 10:00 a.m. Eastern. To participate in the conference call, dial (877) 407-0784 and request to be connected to the Alliance Resource Partners, L.P. earnings conference call. International callers should dial (201) 689-8560 and request to be connected to the same call. Investors may also listen to the call via the "Investors" section of ARLP's website at www.arlp.com.
An audio replay of the conference call will be available for approximately one week. To access the audio replay, dial
About Alliance Resource Partners, L.P.
ARLP is a diversified energy company that is currently the second largest coal producer in the eastern
News, unit prices and additional information about ARLP, including filings with the Securities and Exchange Commission ("SEC"), are available at www.arlp.com. For more information, contact the investor relations department of ARLP at (918) 295-7673 or via e-mail at investorrelations@arlp.com.
The statements and projections used throughout this release are based on current expectations. These statements and projections are forward-looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions or other business combinations that may occur after the date of this release. We have included more information below regarding business risks that could affect our results.
FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. Those forward-looking statements include expectations with respect to our future financial performance, coal and oil & gas consumption and expected future prices, our ability to increase or maintain unitholder distributions in future quarters, business plans and potential growth with respect to our energy and infrastructure transition investments, optimizing cash flows, reducing operating and capital expenditures, infrastructure projects at our existing properties, growth in domestic electricity demand, preserving liquidity and maintaining financial flexibility, and our future repurchases of units and senior notes, among others. These risks to our ability to achieve these outcomes include, but are not limited to, the following: decline in the coal industry's share of electricity generation, including as a result of environmental concerns related to coal mining and combustion, the cost and perceived benefits of other sources of electricity and fuels, such as oil & gas, nuclear energy, and renewable fuels and the planned retirement of coal-fired power plants in the
Additional information concerning these, and other factors can be found in ARLP's public periodic filings with the SEC, including ARLP's Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 23, 2024, and ARLP's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024, filed on May 9, 2024, August 7, 2024 and November 7, 2024, respectively. Except as required by applicable securities laws, ARLP does not intend to update its forward-looking statements.
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OPERATING DATA (In thousands, except unit and per unit data) (Unaudited) |
||||||||||||||||
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||||
|
|
Three Months Ended |
|
Year Ended |
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|
|
December 31, |
|
December 31, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
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|
|
|
|
|
|
|
|
|
|
||||
Tons Sold |
|
|
8,415 |
|
|
|
8,613 |
|
|
|
33,319 |
|
|
|
34,442 |
|
Tons Produced |
|
|
6,901 |
|
|
|
7,880 |
|
|
|
32,206 |
|
|
|
34,877 |
|
Mineral Interest Volumes (BOE) |
|
|
823 |
|
|
|
809 |
|
|
|
3,402 |
|
|
|
3,105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
SALES AND OPERATING REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Coal sales |
|
$ |
504,618 |
|
|
$ |
521,972 |
|
|
$ |
2,111,803 |
|
|
$ |
2,210,210 |
|
Oil & gas royalties |
|
|
30,404 |
|
|
|
36,042 |
|
|
|
138,311 |
|
|
|
137,751 |
|
Transportation revenues |
|
|
30,519 |
|
|
|
46,561 |
|
|
|
112,590 |
|
|
|
142,290 |
|
Other revenues |
|
|
24,551 |
|
|
|
20,847 |
|
|
|
86,004 |
|
|
|
76,450 |
|
Total revenues |
|
|
590,092 |
|
|
|
625,422 |
|
|
|
2,448,708 |
|
|
|
2,566,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses (excluding depreciation, depletion and amortization) |
|
|
407,090 |
|
|
|
356,563 |
|
|
|
1,507,398 |
|
|
|
1,368,787 |
|
Transportation expenses |
|
|
30,519 |
|
|
|
46,561 |
|
|
|
112,590 |
|
|
|
142,290 |
|
Outside coal purchases |
|
|
7,879 |
|
|
|
20,410 |
|
|
|
35,791 |
|
|
|
36,149 |
|
General and administrative |
|
|
17,655 |
|
|
|
17,784 |
|
|
|
82,224 |
|
|
|
79,096 |
|
Depreciation, depletion and amortization |
|
|
80,472 |
|
|
|
68,400 |
|
|
|
285,446 |
|
|
|
267,982 |
|
Asset impairments |
|
|
31,130 |
|
|
|
— |
|
|
|
31,130 |
|
|
|
— |
|
Total operating expenses |
|
|
574,745 |
|
|
|
509,718 |
|
|
|
2,054,579 |
|
|
|
1,894,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME FROM OPERATIONS |
|
|
15,347 |
|
|
|
115,704 |
|
|
|
394,129 |
|
|
|
672,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
(8,676 |
) |
|
|
(6,246 |
) |
|
|
(35,229 |
) |
|
|
(36,091 |
) |
Interest income |
|
|
1,687 |
|
|
|
1,310 |
|
|
|
7,222 |
|
|
|
9,394 |
|
Equity method investment income (loss) |
|
|
(1,929 |
) |
|
|
2,316 |
|
|
|
(4,961 |
) |
|
|
(1,468 |
) |
Change in fair value of digital assets |
|
|
13,958 |
|
|
|
— |
|
|
|
22,395 |
|
|
|
— |
|
Other income (expense) |
|
|
183 |
|
|
|
391 |
|
|
|
(2,062 |
) |
|
|
218 |
|
INCOME BEFORE INCOME TAXES |
|
|
20,570 |
|
|
|
113,475 |
|
|
|
381,494 |
|
|
|
644,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
INCOME TAX EXPENSE (BENEFIT) |
|
|
3,005 |
|
|
|
(3,361 |
) |
|
|
15,937 |
|
|
|
8,280 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME |
|
|
17,565 |
|
|
|
116,836 |
|
|
|
365,557 |
|
|
|
636,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST |
|
|
(1,235 |
) |
|
|
(1,392 |
) |
|
|
(4,702 |
) |
|
|
(6,052 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME ATTRIBUTABLE TO ARLP |
|
$ |
16,330 |
|
|
$ |
115,444 |
|
|
$ |
360,855 |
|
|
$ |
630,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME ATTRIBUTABLE TO ARLP |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GENERAL PARTNER |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,384 |
|
LIMITED PARTNERS |
|
$ |
16,330 |
|
|
$ |
115,444 |
|
|
$ |
360,855 |
|
|
$ |
628,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EARNINGS PER LIMITED PARTNER UNIT - BASIC AND DILUTED |
|
$ |
0.12 |
|
|
$ |
0.88 |
|
|
$ |
2.77 |
|
|
$ |
4.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
WEIGHTED-AVERAGE NUMBER OF UNITS OUTSTANDING – BASIC AND DILUTED |
|
|
128,061,981 |
|
|
|
127,125,437 |
|
|
|
127,964,744 |
|
|
|
127,180,312 |
|
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except unit data) (Unaudited) |
||||||||
|
|
December 31, |
||||||
|
|
2024 |
|
2023 |
||||
ASSETS |
|
|
|
|
|
|
||
CURRENT ASSETS: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
136,962 |
|
|
$ |
59,813 |
|
Trade receivables (net of allowance at December 31, 2024 and 2023 of |
|
|
166,829 |
|
|
|
282,622 |
|
Other receivables |
|
|
10,158 |
|
|
|
9,678 |
|
Inventories, net |
|
|
120,661 |
|
|
|
127,556 |
|
Advance royalties |
|
|
11,422 |
|
|
|
7,780 |
|
Digital assets |
|
|
45,037 |
|
|
|
9,579 |
|
Prepaid expenses and other assets |
|
|
22,161 |
|
|
|
19,093 |
|
Total current assets |
|
|
513,230 |
|
|
|
516,121 |
|
PROPERTY, PLANT AND EQUIPMENT: |
|
|
|
|
|
|
||
Property, plant and equipment, at cost |
|
|
4,435,535 |
|
|
|
4,172,544 |
|
Less accumulated depreciation, depletion and amortization |
|
|
(2,269,265 |
) |
|
|
(2,149,881 |
) |
Total property, plant and equipment, net |
|
|
2,166,270 |
|
|
|
2,022,663 |
|
OTHER ASSETS: |
|
|
|
|
|
|
||
Advance royalties |
|
|
70,264 |
|
|
|
71,125 |
|
Equity method investments |
|
|
35,532 |
|
|
|
46,503 |
|
Equity securities |
|
|
92,541 |
|
|
|
92,541 |
|
Operating lease right-of-use assets |
|
|
15,871 |
|
|
|
16,569 |
|
Other long-term assets |
|
|
22,022 |
|
|
|
22,904 |
|
Total other assets |
|
|
236,230 |
|
|
|
249,642 |
|
TOTAL ASSETS |
|
$ |
2,915,730 |
|
|
$ |
2,788,426 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND PARTNERS' CAPITAL |
|
|
|
|
|
|
||
CURRENT LIABILITIES: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
98,188 |
|
|
$ |
108,269 |
|
Accrued taxes other than income taxes |
|
|
21,051 |
|
|
|
21,007 |
|
Accrued payroll and related expenses |
|
|
26,946 |
|
|
|
29,884 |
|
Accrued interest |
|
|
1,821 |
|
|
|
3,558 |
|
Workers' compensation and pneumoconiosis benefits |
|
|
14,838 |
|
|
|
15,913 |
|
Other current liabilities |
|
|
48,023 |
|
|
|
28,498 |
|
Current maturities, long-term debt, net |
|
|
22,275 |
|
|
|
20,338 |
|
Total current liabilities |
|
|
233,142 |
|
|
|
227,467 |
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
||
Long-term debt, excluding current maturities, net |
|
|
450,885 |
|
|
|
316,821 |
|
Pneumoconiosis benefits |
|
|
120,152 |
|
|
|
127,249 |
|
Accrued pension benefit |
|
|
— |
|
|
|
8,618 |
|
Workers' compensation |
|
|
37,177 |
|
|
|
37,257 |
|
Asset retirement obligations |
|
|
155,156 |
|
|
|
146,925 |
|
Long-term operating lease obligations |
|
|
13,638 |
|
|
|
13,661 |
|
Deferred income tax liabilities |
|
|
29,353 |
|
|
|
33,450 |
|
Other liabilities |
|
|
22,694 |
|
|
|
18,381 |
|
Total long-term liabilities |
|
|
829,055 |
|
|
|
702,362 |
|
Total liabilities |
|
|
1,062,197 |
|
|
|
929,829 |
|
|
|
|
|
|
|
|
||
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
PARTNERS' CAPITAL: |
|
|
|
|
|
|
||
ARLP Partners' Capital: |
|
|
|
|
|
|
||
Limited Partners - Common Unitholders 128,061,981 and 127,125,437 units outstanding, respectively |
|
|
1,867,850 |
|
|
|
1,896,027 |
|
Accumulated other comprehensive loss |
|
|
(35,103 |
) |
|
|
(61,525 |
) |
Total ARLP Partners' Capital |
|
|
1,832,747 |
|
|
|
1,834,502 |
|
Noncontrolling interest |
|
|
20,786 |
|
|
|
24,095 |
|
Total Partners' Capital |
|
|
1,853,533 |
|
|
|
1,858,597 |
|
TOTAL LIABILITIES AND PARTNERS' CAPITAL |
|
$ |
2,915,730 |
|
|
$ |
2,788,426 |
|
ALLIANCE RESOURCE PARTNERS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Year Ended |
||||||
|
|
December 31, |
||||||
|
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
$ |
803,131 |
|
|
$ |
824,231 |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Property, plant and equipment: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(428,741 |
) |
|
|
(379,338 |
) |
Change in accounts payable and accrued liabilities |
|
|
9,142 |
|
|
|
(29,695 |
) |
Proceeds from sale of property, plant and equipment |
|
|
1,626 |
|
|
|
3,710 |
|
Contributions to equity method investments |
|
|
(2,896 |
) |
|
|
(2,518 |
) |
Purchase of equity securities |
|
|
— |
|
|
|
(49,560 |
) |
JC Resources acquisition |
|
|
— |
|
|
|
(64,999 |
) |
Oil & gas reserve business combinations |
|
|
— |
|
|
|
(14,459 |
) |
Oil & gas reserve asset acquisitions |
|
|
(24,733 |
) |
|
|
(24,225 |
) |
Other |
|
|
4,938 |
|
|
|
7,762 |
|
Net cash used in investing activities |
|
|
(440,664 |
) |
|
|
(553,322 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Borrowings under securitization facility |
|
|
75,000 |
|
|
|
— |
|
Payments under securitization facility |
|
|
(75,000 |
) |
|
|
— |
|
Proceeds from equipment financings |
|
|
54,626 |
|
|
|
— |
|
Payments on equipment financings |
|
|
(11,981 |
) |
|
|
(24,970 |
) |
Borrowings under revolving credit facilities |
|
|
20,000 |
|
|
|
— |
|
Payments under revolving credit facilities |
|
|
(20,000 |
) |
|
|
— |
|
Borrowing under long-term debt |
|
|
400,000 |
|
|
|
75,000 |
|
Payments on long-term debt |
|
|
(299,842 |
) |
|
|
(129,455 |
) |
Payment of debt issuance costs |
|
|
(11,442 |
) |
|
|
(12,376 |
) |
Payments for purchases of units under unit repurchase program |
|
|
— |
|
|
|
(19,432 |
) |
Payments for purchase of units and tax withholdings related to settlements under deferred compensation plans |
|
|
(15,544 |
) |
|
|
(10,334 |
) |
Cash settlement of grants under deferred compensation plans |
|
|
(21,786 |
) |
|
|
— |
|
Excess purchase price over the contributed basis from JC Resources acquisition |
|
|
— |
|
|
|
(7,251 |
) |
Cash retained by JC Resources in acquisition |
|
|
— |
|
|
|
(2,933 |
) |
Distributions paid to Partners |
|
|
(363,430 |
) |
|
|
(364,579 |
) |
Other |
|
|
(15,919 |
) |
|
|
(10,789 |
) |
Net cash used in financing activities |
|
|
(285,318 |
) |
|
|
(507,119 |
) |
|
|
|
|
|
|
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
77,149 |
|
|
|
(236,210 |
) |
|
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
|
59,813 |
|
|
|
296,023 |
|
|
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
|
$ |
136,962 |
|
|
$ |
59,813 |
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of GAAP "net income attributable to ARLP" to non-GAAP "EBITDA," "Adjusted EBITDA," "Distribution Coverage Ratio" and "Distributable Cash Flow" (in thousands).
EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes and depreciation, depletion and amortization and Adjusted EBITDA is EBITDA adjusted for certain items that we characterize as unrepresentative of our ongoing operations. Distributable cash flow ("DCF") is defined as Adjusted EBITDA excluding equity method investment earnings, interest expense (before capitalized interest), interest income, income taxes and estimated maintenance capital expenditures and adding distributions from equity method investments and litigation expense accrual. Distribution coverage ratio ("DCR") is defined as DCF divided by distributions paid to partners.
Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions and (iii) present measurements that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations.
EBITDA, Adjusted EBITDA, DCF and DCR should not be considered as alternatives to net income attributable to ARLP, net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. EBITDA and DCF are not intended to represent cash flow and do not represent the measure of cash available for distribution. Our method of computing EBITDA, Adjusted EBITDA, DCF and DCR may not be the same method used to compute similar measures reported by other companies, or EBITDA, Adjusted EBITDA, DCF and DCR may be computed differently by us in different contexts (i.e., public reporting versus computation under financing agreements).
|
|
Three Months Ended |
|
Year Ended |
|
Three Months Ended |
||||||||||||||
|
|
December 31, |
|
December 31, |
|
September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income attributable to ARLP |
|
$ |
16,330 |
|
|
$ |
115,444 |
|
|
$ |
360,855 |
|
|
$ |
630,118 |
|
|
$ |
86,281 |
|
Depreciation, depletion and amortization |
|
|
80,472 |
|
|
|
68,400 |
|
|
|
285,446 |
|
|
|
267,982 |
|
|
|
72,971 |
|
Interest expense, net |
|
|
11,227 |
|
|
|
7,210 |
|
|
|
40,850 |
|
|
|
33,403 |
|
|
|
10,873 |
|
Capitalized interest |
|
|
(4,238 |
) |
|
|
(2,274 |
) |
|
|
(12,843 |
) |
|
|
(6,706 |
) |
|
|
(3,521 |
) |
Income tax expense (benefit) |
|
|
3,005 |
|
|
|
(3,361 |
) |
|
|
15,937 |
|
|
|
8,280 |
|
|
|
4,123 |
|
EBITDA |
|
|
106,796 |
|
|
|
185,419 |
|
|
|
690,245 |
|
|
|
933,077 |
|
|
|
170,727 |
|
Litigation expense accrual (1) |
|
|
— |
|
|
|
— |
|
|
|
15,250 |
|
|
|
— |
|
|
|
— |
|
Asset impairments |
|
|
31,130 |
|
|
|
— |
|
|
|
31,130 |
|
|
|
— |
|
|
|
— |
|
Change in fair value of digital assets (2) |
|
|
(13,958 |
) |
|
|
— |
|
|
|
(22,395 |
) |
|
|
— |
|
|
|
(332 |
) |
Adjusted EBITDA |
|
|
123,968 |
|
|
|
185,419 |
|
|
|
714,230 |
|
|
|
933,077 |
|
|
|
170,395 |
|
Equity method investment loss (income) |
|
|
1,929 |
|
|
|
(2,316 |
) |
|
|
4,961 |
|
|
|
1,468 |
|
|
|
2,327 |
|
Distributions from equity method investments |
|
|
939 |
|
|
|
1,040 |
|
|
|
3,788 |
|
|
|
3,918 |
|
|
|
849 |
|
Interest expense, net |
|
|
(11,227 |
) |
|
|
(7,210 |
) |
|
|
(40,850 |
) |
|
|
(33,403 |
) |
|
|
(10,873 |
) |
Income tax benefit (expense) |
|
|
(3,005 |
) |
|
|
3,361 |
|
|
|
(15,937 |
) |
|
|
(8,280 |
) |
|
|
(4,123 |
) |
Deferred income tax benefit (3) |
|
|
(351 |
) |
|
|
(5,992 |
) |
|
|
(2,185 |
) |
|
|
(8,973 |
) |
|
|
(765 |
) |
Litigation expense accrual (1) |
|
|
— |
|
|
|
— |
|
|
|
(15,250 |
) |
|
|
— |
|
|
|
— |
|
Estimated maintenance capital expenditures (4) |
|
|
(53,552 |
) |
|
|
(55,554 |
) |
|
|
(249,919 |
) |
|
|
(245,883 |
) |
|
|
(60,171 |
) |
Distributable Cash Flow |
|
$ |
58,701 |
|
|
$ |
118,748 |
|
|
$ |
398,838 |
|
|
$ |
641,924 |
|
|
$ |
97,639 |
|
Distributions paid to partners |
|
$ |
90,723 |
|
|
$ |
90,812 |
|
|
$ |
363,430 |
|
|
$ |
364,579 |
|
|
$ |
90,725 |
|
Distribution Coverage Ratio |
|
|
0.65 |
|
|
|
1.31 |
|
|
|
1.10 |
|
|
|
1.76 |
|
|
|
1.08 |
|
| _________________ | |
(1) |
Litigation expense accrual is a |
(2) |
On January 1, 2024, ARLP elected to early adopt new accounting guidance which clarifies the accounting and disclosure requirements for certain crypto assets. The new guidance requires entities to measure certain crypto assets at fair value, with the change in fair value included in net income. |
(3) |
Deferred income tax benefit is the amount of income tax benefit during the period on temporary differences between the tax basis and financial reporting basis of recorded assets and liabilities. These differences generally arise in one period and reverse in subsequent periods to eventually offset each other and do not impact the amount of distributable cash flow available to be paid to partners. |
(4) |
Maintenance capital expenditures are those capital expenditures required to maintain, over the long-term, the existing infrastructure of our coal assets. We estimate maintenance capital expenditures on an annual basis based upon a five-year planning horizon. For the 2025 planning horizon, average annual estimated maintenance capital expenditures are assumed to be |
Reconciliation of GAAP "Cash flows from operating activities" to non-GAAP "Free cash flow" (in thousands).
Free cash flow is defined as cash flows from operating activities less capital expenditures and the change in accounts payable and accrued liabilities from purchases of property, plant and equipment. Free cash flow should not be considered as an alternative to cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing free cash flow may not be the same method used by other companies. Free cash flow is a supplemental liquidity measure used by our management to assess our ability to generate excess cash flow from our operations.
|
|
Three Months Ended |
|
Year Ended |
|
Three Months Ended |
||||||||||||||
|
|
December 31, |
|
December 31, |
|
September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash flows from operating activities |
|
$ |
168,420 |
|
|
$ |
93,933 |
|
|
$ |
803,131 |
|
|
$ |
824,231 |
|
|
$ |
209,272 |
|
Capital expenditures |
|
|
(93,155 |
) |
|
|
(83,982 |
) |
|
|
(428,741 |
) |
|
|
(379,338 |
) |
|
|
(110,298 |
) |
Change in accounts payable and accrued liabilities |
|
|
(49 |
) |
|
|
(6,689 |
) |
|
|
9,142 |
|
|
|
(29,695 |
) |
|
|
4,247 |
|
Free cash flow |
|
$ |
75,216 |
|
|
$ |
3,262 |
|
|
$ |
383,532 |
|
|
$ |
415,198 |
|
|
$ |
103,221 |
|
Reconciliation of GAAP "Operating Expenses" to non-GAAP "Segment Adjusted EBITDA Expense" and Reconciliation of non-GAAP "Adjusted EBITDA" to non-GAAP "Segment Adjusted EBITDA" (in thousands).
Segment Adjusted EBITDA Expense is defined as operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations. Transportation expenses are excluded as these expenses are passed on to our customers and, consequently, we do not realize any margin on transportation revenues. Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. Segment Adjusted EBITDA Expense – Coal Operations represents Segment Adjusted EBITDA Expense from our wholly-owned subsidiary, Alliance Coal, LLC ("Alliance Coal"), which holds our coal mining operations and related support activities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
Year Ended |
|
Three Months Ended |
||||||||||||||
|
|
December 31, |
|
December 31, |
|
September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Operating expense |
|
$ |
407,090 |
|
|
$ |
356,563 |
|
|
$ |
1,507,398 |
|
|
$ |
1,368,787 |
|
|
$ |
384,844 |
|
Litigation expense accrual (1) |
|
|
— |
|
|
|
— |
|
|
|
(15,250 |
) |
|
|
— |
|
|
|
— |
|
Outside coal purchases |
|
|
7,879 |
|
|
|
20,410 |
|
|
|
35,791 |
|
|
|
36,149 |
|
|
|
8,192 |
|
Other expense (income) |
|
|
(183 |
) |
|
|
(391 |
) |
|
|
2,062 |
|
|
|
(218 |
) |
|
|
681 |
|
Segment Adjusted EBITDA Expense |
|
|
414,786 |
|
|
|
376,582 |
|
|
|
1,530,001 |
|
|
|
1,404,718 |
|
|
|
393,717 |
|
Segment Adjusted EBITDA Expense – Non Coal Operations (2) |
|
|
(10,072 |
) |
|
|
(7,028 |
) |
|
|
(28,471 |
) |
|
|
(13,973 |
) |
|
|
(7,390 |
) |
Segment Adjusted EBITDA Expense – Coal Operations |
|
$ |
404,714 |
|
|
$ |
369,554 |
|
|
$ |
1,501,530 |
|
|
$ |
1,390,745 |
|
|
$ |
386,327 |
|
| _________________ | |
(1) |
Litigation expense accrual is a |
(2) |
Non Coal Operations represent activity outside of Alliance Coal and primarily consist of Total Royalties, our investments in the advancement of energy and related infrastructure and various eliminations primarily between Alliance Coal and our Coal Royalty segment. |
Segment Adjusted EBITDA is defined as Adjusted EBITDA adjusted for general and administrative expenses. Segment Adjusted EBITDA – Coal Operations represents Segment Adjusted EBITDA from our wholly-owned subsidiary, Alliance Coal, which holds our coal mining operations and related support activities and allows management to focus primarily on the operating performance of our
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
Year Ended |
|
Three Months Ended |
||||||||||||||
|
|
December 31, |
|
December 31, |
|
September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA (See reconciliation to GAAP above) |
|
$ |
123,968 |
|
|
$ |
185,419 |
|
|
$ |
714,230 |
|
|
$ |
933,077 |
|
|
$ |
170,395 |
|
General and administrative |
|
|
17,655 |
|
|
|
17,784 |
|
|
|
82,224 |
|
|
|
79,096 |
|
|
|
21,878 |
|
Segment Adjusted EBITDA |
|
|
141,623 |
|
|
|
203,203 |
|
|
|
796,454 |
|
|
|
1,012,173 |
|
|
|
192,273 |
|
Segment Adjusted EBITDA – Non Coal Operations (1) |
|
|
(36,250 |
) |
|
|
(47,026 |
) |
|
|
(170,705 |
) |
|
|
(179,761 |
) |
|
|
(43,021 |
) |
Segment Adjusted EBITDA – Coal Operations |
|
$ |
105,373 |
|
|
$ |
156,177 |
|
|
$ |
625,749 |
|
|
$ |
832,412 |
|
|
$ |
149,252 |
|
_________________ |
|
(1) |
Non Coal Operations represent activity outside of Alliance Coal and primarily consist of Total Royalties, our investments in the advancement of energy and related infrastructure and various eliminations primarily between Alliance Coal and our Coal Royalty segment. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250203029850/en/
Investor Relations Contact
Cary P. Marshall
Senior Vice President and Chief Financial Officer
918-295-7673
investorrelations@arlp.com
Source: Alliance Resource Partners, L.P.
