Alliance Resource Partners, L.P. (NASDAQ: ARLP) reported its financial results for Q1 2025, showing a decrease in revenue compared to the previous year.
Financial Results
The company reported total revenues of $540.5 million for Q1 2025, a decrease of 17.1% from $651.7 million in the same period in 2024. Net income stood at $74.0 million, translating to $0.57 per basic and diluted limited partner unit, a significant drop from $158.1 million, or $1.21 per unit, achieved in Q1 2024. The adjusted EPS expectation was $0.61, while the revenue expectation was $579.91 million, neither of which were met.
Operational Activities
Despite the year-over-year decline, the company saw improvements in net income compared to the previous quarter, up by $57.7 million. This was attributed to higher oil and gas royalty revenues, which rose by 18.7%, and improved per ton costs in coal operations. Additionally, reductions in depreciation expenses and impairment charges affected the previous quarter's results. Adjusted EBITDA for Q1 2025 was reported at $159.9 million, compared to $238.4 million in Q1 2024.
Outlook and Guidance
Looking ahead, Alliance Resource Partners has updated its guidance for the full year 2025, anticipating total coal sales volumes to range between 32.75 and 34.75 million short tons. The company has secured over 96% of its projected coal sales volumes for 2025. However, the outlook for the oil and gas royalty segment remains cautious due to anticipated lower crude oil prices impacting revenues. CEO Joseph W. Craft III expressed confidence in the company’s ability to navigate market changes while maintaining a strong balance sheet.
Alliance Resource Partners L.P. shows mixed results in the beginning of 2025, facing challenges while maintaining optimistic expectations for the future.
