Alliance Resource Partners(ARLP) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for the 2025 Quarter decreased by 17.1% to $540.5 million compared to$ 651.7 million for the 2024 Quarter[3] - Net income for the 2025 Quarter was $74.0 million, or$ 0.57 per unit, down from $158.1 million, or$ 1.21 per unit, in the 2024 Quarter[3] - Adjusted EBITDA for the 2025 Quarter was $159.9 million, a decrease of 33.5% compared to$ 240.6 million in the 2024 Quarter[5] - Coal sales decreased to $468.5 million in Q1 2025, down 16.6% from$ 561.9 million in Q1 2024[33] - Net income attributable to ARLP for Q1 2025 was $73.98 million, a decline of 53.3% compared to$ 158.1 million in Q1 2024[33] - Earnings per limited partner unit decreased to $0.57 in Q1 2025 from$ 1.21 in Q1 2024[33] - Cash flows from operating activities were $145.7 million in Q1 2025, down 30.6% from$ 209.7 million in Q1 2024[35] - Distributable Cash Flow (DCF) for Q1 2025 was $84.1 million, compared to$ 140.1 million in Q1 2024, reflecting a decrease of 40%[41] - The Distribution Coverage Ratio (DCR) for Q1 2025 was 0.93, down from 1.53 in Q4 2024[41] - Free cash flow for Q1 2025 was $52.7 million, down 41.5% from$ 90.2 million in Q1 2024[48] Sales and Production - Coal sales volumes decreased by 10.4% to 7.771 million tons in the 2025 Quarter compared to 8.674 million tons in the 2024 Quarter[10] - The average sales price per ton sold for coal decreased by 6.9% to $60.29 in the 2025 Quarter compared to$ 64.78 in the 2024 Quarter[10] - Domestic sales are expected to exceed the 30 million ton target for 2025 due to increased contracting activity and anticipated solicitations[18] - Total sales tons for 2025 are guided to be between 32.75 million and 34.75 million short tons[20] - Illinois Basin coal sales price per ton is expected to be between $50.00 and$ 53.00, while Appalachia's is projected to be between $76.00 and$ 82.00[20] - The average coal sales price per ton for 2026 is projected to be 4-5% below the midpoint of the 2025 guidance[18] Capital Expenditures and Liquidity - Total capital expenditures for 2025 are estimated to be between $285 million and$ 320 million[20] - Total liquidity as of March 31, 2025, was $514.3 million, including$ 81.3 million in cash and cash equivalents[14] - Capital expenditures for Q1 2025 were $86.8 million, a decrease of 30% from$ 123.8 million in Q4 2024[48] Operating Expenses - Operating expenses for Q1 2025 were $339.4 million, down 6.7% from$ 363.9 million in Q4 2024 and down 16.6% from $407.1 million in Q1 2024[45] - Segment Adjusted EBITDA Expense for Coal Operations was$ 332.2 million in Q1 2025, a decrease of 6.2% from $354.3 million in Q4 2024 and a decrease of 17.9% from$ 404.7 million in Q1 2024[45] - Segment Adjusted EBITDA for Coal Operations was $140.2 million in Q1 2025, down 33.4% from$ 210.9 million in Q4 2024 and up 33% from $105.4 million in Q1 2024[50] - Segment Adjusted EBITDA Expense for Non-Coal Operations was$ (40.3) million in Q1 2025, an improvement from $(49.7) million in Q4 2024[50] Strategic Outlook - The company added 17.7 million tons of contract commitments over the 2025-2028 period, with over 96% of projected coal sales volumes for 2025 already committed[5] - The company is focused on maintaining a strong balance sheet and disciplined capital allocation amidst trade policy uncertainties[18] - The administration's recent policy announcements are expected to extend the operating lives of several customer facilities, supporting long-term fundamentals[18] - The company remains active in pursuing high-quality, value-accretive opportunities despite challenges in capital deployment due to seller expectations[18] Market Conditions - Oil & gas royalty revenues increased by 18.7% compared to the Sequential Quarter, contributing to a$ 57.7 million increase in net income[4] - U.S. electricity demand is forecasted to rise by 16% over the next five years, significantly impacting coal demand and market conditions[7] - Oil & Gas royalties are expected to generate revenues from 1,550 to 1,650 thousand barrels of oil and 6,100 to 6,500 thousand MCF of natural gas[20]