Alliance Resource Partners, L.P. Q4 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Highlights

  • Adjusted EBITDA reached $191.1 million, up 54.1% from Q4 2024 and up 2.8% sequentially.
  • Net income rose to $82.7 million (64¢ per unit), compared to $16.3 million (12¢ per unit) in Q4 2024.
  • Total revenues were $535.5 million, down from $590.1 million in Q4 2024 due to lower coal sales and transportation revenues; partially offset by record oil and gas royalty volumes.
  • Coal production increased to 8.2 million tons from 6.9 million tons in Q4 2024.
  • Average coal sales price per ton decreased 4% year over year and 2.1% sequentially to $57.57.
  • Strong royalty performance: oil and gas royalty EBITDA was $30 million, with BOE volumes up 20.2% year over year.
  • Free cash flow was $93.8 million; liquidity totaled $518.5 million.
  • Company held 592 Bitcoins valued at $51.8 million.

Operational Performance

  • Illinois Basin: Volumes down 2% year over year; segment expense per ton decreased 14.4%. Hamilton Mine achieved record production.
  • Appalachia: Volumes declined due to plant outages and longwall moves. Expense per ton dropped 17.5% year over year. Tunnel Ridge provided 98% of the region’s cash flow.
  • Metiki Mine: Key customer outages led to WARN notices; production expected to wind down after contracts end in March 2026. 2025 EBITDA contribution was approximately $3.5 million.

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Operator: Greetings. Welcome to Alliance Resource Partners Fourth Quarter 2025 Earnings Conference Call. At this time, all participants will be in listen-only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. At this time, I'd like to turn the conference over to Cary Marshall, Senior Vice President and Chief Financial Officer. Thank you, Cary. You may now begin. Cary Marshall: Thank you, operator. Good morning, and welcome, everyone. Earlier today, Alliance Resource Partners released its fourth quarter 2025 financial and operating results, and we will now discuss those results as well as our perspective on current market conditions and outlook for 2026. 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 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 sta

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