Alliance Resource Partners, L.P. Q2 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

Key Financial Highlights (Q2 2024 vs. Prior Periods)

  • Revenue: $593.4 million, down 7.6% from $641.8 million in Q2 2023, and down 9% sequentially from Q1 2024.
  • Net Income: $100.2 million or $0.77 per unit, down from $169.8 million or $1.30 per unit in Q2 2023, and down from $158.1 million in Q1 2024.
  • Adjusted EBITDA: $181.4 million, down from $249.2 million in Q2 2023, and from $238.1 million in Q1 2024.
  • Free Cash Flow: $114.9 million, up 27% from Q1 2024.
  • Total Liquidity: $666 million at quarter end, including $203.7 million in cash (up from $59.8 million at year start).

Capital Structure & Liquidity

  • Issued $400 million in 8.625% senior unsecured notes due 2029; used proceeds to repay $284.6 million of 2025 notes.
  • Extended $425 million revolving credit facility to March 2028, with option to increase new senior notes by $200 million.
  • Net leverage ratio: 0.36x; Total leverage: 0.61x TTM Adjusted EBITDA.

Segment Performance

  • Oil & Gas Royalties:
    • Volumes reached 817,000 BOE, up 6.8% YoY.
    • Realized prices per BOE up 3.1% YoY and 8.2% sequentially.

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Operator: Greetings, and welcome to the Alliance Resource Partners, L.P. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cary Marshall, Senior Vice President and Chief Financial Officer. Thank you, sir. You may begin. Cary Marshall : Thank you, and Good morning and welcome, everyone. Earlier this morning, Alliance Resource Partners released its second quarter 2024 financial and operating results, which we refer to as our 2024 quarter. And we will now discuss those results, as well as our perspective on current market conditions and updated outlook for 2024. Following our prepared remarks, we will open the call to answer 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 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, th

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