Alliance Resource Partners, L.P. Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Quarter Revenue: $613.6 million, down 3.6% from Q3 2023 ($636.5 million), but up 3.4% sequentially due to increased coal shipments.
  • Net Income: $86.3 million ($0.66 per unit), significantly down from $153.7 million ($1.18 per unit) in Q3 2023.
  • Adjusted EBITDA: $170.4 million, down from $227.6 million in Q3 2023, attributed to lower revenues and higher operating expenses.

Coal Segment Performance

  • Shipments: Total coal shipments increased 6.7% sequentially; domestic shipments rose 11.9%. Total volumes were flat YoY at 8.4 million tons.
  • Production: 7.8 million tons, down 7.2% YoY and 8.1% sequentially.
  • Sales Price per Ton: $63.57, down 2.1% YoY and 2.6% sequentially mainly due to weakness in the Appalachian export markets.
  • Inventory: Reduced by >500,000 tons in Q3; target year-end inventory range is 0.5M–1M tons (vs. 2M at quarter end).
  • Adjusted EBITDA Expense per Ton Sold: $46.11, up 11.9% YoY. Appalachia saw a 19.3% YoY increase, partly from challenging mining conditions.

Royalties Segment

  • Oil & Gas Royalties: 864,000 BOE, up 11.9% YoY and 5.8% sequentially due to activity in the Permian Basin. Realized BOE prices fell 9.8% YoY.

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Operator: Greetings, and welcome to Alliance Resource Partners LP Third Quarter 2024 Earnings Conference Call. At this time, participants are in a listen-only mode. A 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 Cary Marshall, Senior Vice President and Chief Financial Officer. Thank you. You may begin. Cary Marshall: Thank you. Good morning, and welcome, everyone. Earlier this morning, Alliance Resource Partners released its third quarter 2024 financial and operating results and we will now discuss those results as well as our perspective on current market conditions and 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, the partnership has no obligation to publicly update or revise any forward-looking statement

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