ARLP Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, April 27, 2026 astatine 10:27 AM CDT 32 min read

Image source: The Motley Fool.

Monday, April 27, 2026 astatine 10 a.m. ET

• Chairman, President, and Chief Executive Officer — Joseph W. Craft

• Senior Vice President, Chief Financial Officer, and Treasurer — Cary P. Marshall

With that, I volition statesman with a reappraisal of our archetypal 4th 2026 results and sermon our updated outlook for 2026 earlier turning the telephone implicit to Joseph W. Craft, our Chairman, President and Chief Executive Officer, for his comments. Overall, the quarterly results came successful higher than expected owed to grounds BOE volumes and higher commodity prices that accrued lipid and state royalties revenues. Tons produced from our ember operations were connected target; however, impermanent weather-related disruptions caused astir 200,000 tons of scheduled shipments to beryllium delayed. For the 2026 quarter, adjusted EBITDA was $155 million, which was higher than expected but 3.1% little compared to the 2025 quarter, and down 18.9% compared to the sequential quarter.

Net income attributable to Alliance Resource Partners, L.P. successful the 2026 4th was $9.1 million, oregon $0.07 per unit, arsenic compared to $74 million, oregon $0.57 per unit, successful the 2025 quarter. Net income successful the 2026 4th reflected little ember income revenue, higher depreciation, an $11.6 cardinal alteration successful the just worth of our integer assets, and a $37.8 cardinal noncash plus impairment complaint astatine our Metiki excavation pursuing our determination to cease longwall accumulation connected relationship of uncertainty regarding aboriginal operations, arsenic discussed successful our January 29 property release. We proceed to measure the due way guardant for Metiki, though meaningful uncertainty remains and greater clarity is not expected until aboriginal this year.

In the interim, our precedence astatine Metiki is to trim costs portion preserving the flexibility and optionality needed to align aboriginal operations with lawsuit demand. In the 2026 quarter, full revenues were $516 million, down 4.5% compared to the 2025 4th and down 3.6% compared to the sequential quarter. Lower ember income pricing and measurement sequentially chiefly drove the decline, which was partially offset by higher lipid and state royalty revenues. During the quarter, weather-related stream disruptions delayed definite committed deliveries; however, we expect our delayed shipments volition beryllium recovered implicit the equilibrium of the year.

Our mean ember income terms per ton for the 2026 4th was $56.40, a 6.5% alteration versus the 2025 4th and a 2% alteration sequentially. As noted during anterior calls, pricing is normalizing arsenic higher-price bequest ember contracts entered into during the 2022 vigor situation proceed to rotation disconnected and are being replaced astatine ember pricing levels accordant with our existent guidance ranges. Total ember accumulation successful the 2026 4th was 8.0 cardinal tons, compared to 8.5 cardinal tons successful the 2025 quarter. Coal income volumes were 7.9 cardinal tons successful the 2026 quarter, up from 7.8 cardinal tons successful the 2025 4th and down from 8.1 cardinal tons successful the sequential quarter.