Alliance Resource Partners Q2 revenue beats on higher oil & gas royalties

Overview

• US coal and royalties producer's Q2 revenue rose 0.7% yr/yr, beating analyst expectations

• Net income for Q2 increased 33.9% yr/yr to $79.6 mln

• Company completed $206.2 mln oil gas mineral interests acquisition in July

Outlook

• Company raises full-year oil gas royalties volume guidance after AllDale III IV acquisition

• ARLP expects 2026 coal sales tons to be essentially fully committed at midpoint of guidance

• Company forecasts 2026 total coal sales of 33.75 mln to 35.25 mln short tons

Result Drivers

• OIL GAS ROYALTY REVENUES - Record oil gas royalty revenues rose 30.5% yr/yr, driven by higher realized commodity pricing and increased volumes from drilling and acquisitions

• COAL SALES VOLUMES - Higher coal sales volumes, especially in Appalachia, contributed to revenue growth despite lower sales prices

• COST CONTROL - Lower segment adjusted EBITDA expense per ton in total coal operations, mainly due to productivity gains at key mines

Company press release: ID:nBw21GV0Qa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the coal peer group is "buy"

• Wall Street's median 12-month price target for Alliance Resource Partners LP is $31.50, about 27.5% above its July 24 closing price of $24.71

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)