Alliance Resource Partners Q3 profit jumps on record royalty revenues

Overview

• U.S. coal and mineral royalty firm's Q3 revenue rose 5.5%, net income up 46.8% yr/yr

• Adjusted EBITDA for Q3 increased 26.3% from a year ago

• Quarter benefited from record oil and gas royalty revenues after AllDale III & IV acquisition

Outlook

• Company sees 2026 total coal sales volumes at 34.5 mln to 35.5 mln tons

• Company expects 2026 average coal sales price per ton at $54.25 to $54.75

• Company forecasts 2026 oil & gas royalty volumes at 1.9 mln to 2.0 mln barrels oil

Result Drivers

• RECORD ROYALTY REVENUES - Co said record oil & gas royalty revenues, driven by AllDale III & IV acquisition, boosted Q3 results

• HIGHER COAL VOLUMES - Increased coal sales volumes, especially in Illinois Basin, aided by resumption of longwall production at Hamilton

• LOWER COAL COSTS - Co said improved per ton costs at River View and higher production at Hamilton reduced coal segment expenses

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the coal peer group is "buy"

• Wall Street's median 12-month price target for Alliance Resource Partners LP is $31.50, about 20.5% above its October 23 closing price of $26.14

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)