Alliance Resource Partners Reports Q2 2026 Revenue of $551.6 Million, Net Income Rises 33.9%

Alliance Resource Partners, L.P. (ARLP) reported its financial results for the second quarter of 2026, revealing a total revenue of $551.6 million, a slight increase of 0.7% compared to $547.5 million in the same quarter of 2025. The growth was primarily driven by record oil and gas royalty revenues, which surged by 30.5% to $46.3 million, alongside increased coal sales volumes. However, coal sales revenue decreased by 3.3% to $469.5 million due to lower average coal sales prices, which fell by 5.3% as a result of the expiration of higher-priced legacy contracts.

In terms of profitability, net income attributable to ARLP rose by 33.9% to $79.6 million, or $0.61 per limited partner unit, compared to $59.4 million, or $0.46 per unit, in the prior year. This increase was attributed to higher total revenues and improved equity method investment income, which amounted to $9.5 million, a significant recovery from a loss of $1.5 million in the previous year. The company’s Segment Adjusted EBITDA also saw a notable increase of 16.0%, reaching $211.5 million, up from $182.3 million in the same quarter last year.

Operationally, ARLP reported a total of 8.6 million tons sold during the quarter, a 2.1% increase from 8.4 million tons in the previous year. The company’s coal production also increased slightly to 8.2 million tons, up from 8.1 million tons. The Appalachia Coal Operations segment experienced a 27.6% increase in tons sold, reflecting improved productivity at the Tunnel Ridge mining complex. Conversely, the Illinois Basin Coal Operations segment saw a decrease in tons sold, primarily due to a planned extended longwall move at the Hamilton mine.

Strategically, ARLP completed the acquisition of certain general partner and limited partner interests in AllDale III & IV on July 1, 2026, for approximately $206.2 million. This acquisition is expected to enhance ARLP's portfolio of mineral and royalty interests, adding approximately 48,500 net royalty acres across key resource plays, including the Permian and Bakken basins. Additionally, the company acquired 881 oil and gas net royalty acres in the Permian Basin for $22 million during the first half of 2026, further diversifying its asset base.

Looking ahead, ARLP anticipates continued growth in its oil and gas royalty revenues, supported by increased drilling activities and higher average sales prices. However, the company remains cautious about the coal market, particularly in light of lower coal sales prices and the impact of ongoing operational adjustments at its mining complexes. The company expects to maintain sufficient liquidity to meet its operational and capital requirements, with cash and cash equivalents of $111.2 million as of June 30, 2026.