Alliance Resource Partners, L.P. Q1 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue Growth: Q1 2022 total revenues grew 44.6% YoY to $460.9 million, driven by higher coal production, sales volumes, and strengthened commodity prices.
  • Net Income: Net income increased 48.1% YoY to $36.7 million ($0.28/unit) compared to $24.7 million ($0.19/unit) in Q1 2021. However, net income fell from the sequential Q4 2021’s $51.8 million, due to non-cash deferred tax charges of $37.3 million related to a corporate conversion in the oil & gas royalty segment.
  • EBITDA: Adjusted EBITDA rose 61.5% YoY to $152.3 million, and also increased 16.9% compared to Q4 2021.
  • Coal Sales and Production:
    • Coal sales volumes increased 19.5% YoY and 5% sequentially.
    • Production increased 14.7% YoY.
    • Sales price per ton increased 13% YoY and 5.3% QoQ to $47.58/ton.
    • Transportation issues delayed 1.1 million tons of shipments, reducing revenues by ~$72 million and EBITDA by $31 million, but these are expected to be made up later in the year.
    • Export volumes expected to surpass 6 million tons in 2022 with another 1.5 million tons possible in 2023. Domestic demand remains strong due to low utility stockpiles and high natural gas prices.

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Operator: Greetings. Welcome to the Alliance Resource Partners, L.P. First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Brian Cantrell, Senior Vice President and Chief Financial Officer. Thank you. You may begin. Brian Cantrell: Thank you, Alex, and welcome, everyone. Earlier this morning, Alliance Resource Partners released its first quarter 2022 financial and operating results and we will now discuss these results as well as our perspective on market conditions and outlook. Following our prepared remarks, we will open the call to your questions. Before beginning, a reminder that some of our remarks today may include forward-looking statements, subject to a variety of risks, uncertainties and assumptions that are contained in our filings from time to time with the Securities and Exchange Commission and are also reflected in this morning’s press release. While these forward-looking statements are based on information currently available to us, if one or more of these risks or uncertainties materialize or if our underlying assumptions prove incorrect, actual results may vary materially from those we projected or expected. In providing these remarks, the partnership has no obligation to publicly update or revise any forward-looking statement

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