Alliance Resource Partners, L.P. (NASDAQ: ARLP) has released its financial and operating results for the second quarter of 2025, showing mixed performance amid market challenges. The report also provides updated expectations for the remainder of the year.
Financial Results for Q2 2025
Alliance Resource Partners reported total revenues of $547.5 million for the second quarter of 2025, a 7.7% decrease compared to the same period in 2024. This decline was primarily due to reduced coal sales prices and lower transportation revenues, despite a 6.8% increase in coal sales volumes. The company's net income for the quarter was $59.4 million, or $0.46 per basic and diluted limited partner unit, significantly below the $100.2 million, or $0.77 per unit, reported in Q2 2024.
Updated Forecast for 2025
Alliance Resource Partners has updated its guidance for the full year 2025, reflecting adjustments in coal sales expectations and operational realities. The company anticipates total coal sales volumes to range between 32.75 million and 34.00 million tons, with a slight increase in the Illinois Basin offset by a reduction in Appalachia due to lower production and a customer default. In the Oil & Gas Royalties segment, ARLP has raised its guidance for BOE volumes by about 5%.
Market Outlook and Company Optimism
CEO Joseph W. Craft III emphasized the strong fundamentals in the domestic thermal market, supported by data center expansion and increased domestic manufacturing. He noted that recent legislative and regulatory actions have created a favorable environment for coal, which ARLP believes is crucial for energy security. The company maintains cautious optimism about opportunities to grow sales volumes in the coming years.
The analysis of financial results indicates that Alliance Resource Partners is facing market challenges but continues to hold an optimistic view regarding future sales and its role in energy security.
