Alliance Resource Partners Reports Decline in Revenue and Net Income for Q2 2025

Alliance Resource Partners, L.P. (ARLP) reported a decline in financial performance for the second quarter of 2025, with total revenues of $547.5 million, down 7.7% from $593.4 million in the same period last year. The decrease was primarily driven by lower coal sales, which fell to $485.5 million from $512.7 million, attributed to reduced average coal sales prices and lower transportation revenues. The company’s net income attributable to ARLP also decreased significantly, reaching $59.4 million, or $0.46 per limited partner unit, compared to $100.2 million, or $0.77 per unit, in the prior year.

In the first half of 2025, ARLP's total revenues decreased by 12.6% to $1.09 billion from $1.25 billion in the same period of 2024. This decline was largely due to a drop in coal sales, which fell to $954.0 million from $1.07 billion, reflecting both lower average sales prices and reduced tons sold. The company reported a net income of $133.4 million for the six months ended June 30, 2025, down 48.3% from $258.2 million in the previous year.

Operationally, ARLP sold 8.4 million tons of coal in the second quarter, a 6.8% increase from the previous year, while production decreased by 3.9% to 8.1 million tons. The Illinois Basin operations saw a 15.2% increase in tons sold, contributing to a slight rise in coal sales revenue, while the Appalachia operations experienced a 21.6% decline in coal sales due to lower production levels and challenging mining conditions. The company’s Segment Adjusted EBITDA also fell, decreasing to $182.3 million from $202.0 million year-over-year.

Strategically, ARLP has continued to invest in its growth, committing up to $25 million in limited partner interests in Gavin Generation Holdings A, LP, which aims to acquire and operate a coal-fired power plant. The company also reported a $25 million impairment on its investment in Ascend Elements, Inc. during the quarter, reflecting the impact of recent recapitalization efforts by the company. Despite these challenges, ARLP maintains a focus on maximizing the value of its mineral assets and pursuing strategic investments to support its long-term growth.

Looking ahead, ARLP anticipates that existing cash balances, future cash flows from operations, and access to credit facilities will be sufficient to meet its working capital requirements and capital expenditures. The company projects total capital expenditures for 2025 to be in the range of $285 million to $320 million, with a continued emphasis on maintaining compliance with its debt covenants and ensuring liquidity to support its operational and growth strategies.