Alliance Resource Partners Reports Decline in Revenue and Net Income for Q1 2026

Alliance Resource Partners, L.P. (ARLP) reported a decline in financial performance for the first quarter of 2026, with total revenues of $516.0 million, down 4.5% from $540.5 million in the same period last year. The decrease was primarily attributed to lower coal sales, which fell to $443.3 million from $468.5 million, reflecting a 6.5% drop in average coal sales prices. However, oil and gas royalties increased by 14.6% to $41.3 million, driven by a 16.1% rise in royalty volumes due to increased drilling activities and acquisitions of additional mineral interests.

Net income attributable to ARLP saw a significant decline of 87.7%, dropping to $9.1 million, or $0.07 per limited partner unit, compared to $74.0 million, or $0.57 per unit, in the prior year. This sharp decrease was influenced by lower coal sales, higher depreciation expenses, a decline in the fair value of digital assets, and a $37.8 million asset impairment charge related to the cessation of longwall production at the Mettiki mining complex. The company’s Segment Adjusted EBITDA also decreased slightly by 0.8% to $179.0 million from $180.5 million.

Operationally, ARLP reported a slight increase in tons sold, which rose to 7.86 million from 7.77 million, while tons produced decreased to 7.98 million from 8.46 million. The company’s coal operations in the Illinois Basin and Appalachia reported mixed results, with Illinois Basin coal sales declining by 7.0% to $309.8 million, while Appalachia coal operations saw a smaller decline of 1.3% to $133.5 million. The Appalachia segment, however, experienced a notable increase in Segment Adjusted EBITDA, rising 67.9% to $26.2 million, attributed to reduced operating expenses and higher other revenues.

In terms of strategic developments, ARLP made two significant acquisitions in early 2026, acquiring a total of 574 oil and gas net royalty acres in the Permian Basin for $14.5 million. Additionally, the company purchased coal reserves and surface rights from the Craft Foundations for $15.5 million. These acquisitions are expected to enhance ARLP's position in the energy sector. The company also reported a cash balance of $28.9 million as of March 31, 2026, and anticipates sufficient liquidity to meet its operational and capital expenditure needs for the year.

Looking ahead, ARLP remains focused on maximizing the value of its mineral asset base while pursuing strategic opportunities that align with its operational strengths. The company plans to continue investing in energy-related technologies and infrastructure, with anticipated capital expenditures for 2026 estimated between $280 million and $300 million. Despite the challenges faced in the current market environment, ARLP aims to leverage its diverse resource portfolio to create long-term value for its unitholders.