Alliance Resource Partners reported third‑quarter 2025 financial results, posting total revenues of $571.4 million, a 6.9% decline year‑over‑year, and net income of $95.1 million ($0.73 per unit). Adjusted EBITDA rose 9.0% to $185.8 million.
The partnership declared a quarterly cash distribution of $0.60 per unit, equivalent to an annualized $2.40 per unit. Total liquidity stood at $541.8 million, including $94.5 million in cash and $64.8 million in bitcoin holdings, while total debt and finance leases were $470.6 million.
Coal production increased 8.5% year‑over‑year to 8.4 million tons, and sales volumes grew 3.9% to 8.7 million tons. Illinois Basin sales rose 10.8% driven by higher output at Hamilton and River View, whereas Appalachia sales fell 13.3% due to timing of shipments from Tunnel Ridge. Average coal sales price fell 7.5% to $58.78 per ton, but segment adjusted EBITDA expense per ton declined 6.4% in Illinois Basin and 11.7% in Appalachia.
The company invested $22.1 million of a $25.0 million commitment in a limited partnership that indirectly owns and operates a coal‑fired power plant, positioning it to benefit from tightening power markets.
Management updated its 2025 guidance, tightening full‑year coal sales volume guidance to 32.5 million–33.25 million tons and refining per‑ton expense guidance. Full‑year coal sales price guidance was raised to $57–$61 per ton, with segment adjusted EBITDA expense per ton expected to fall to $39–$43 per ton. The company also reiterated its 2026 outlook, noting that it has contracted and priced 29.1 million tons for 2026, up 9% from the previous quarter, and expects continued margin strength through cost reductions and increased production.
Analysts had estimated Q3 revenue of $580 million and EPS of $0.70; the partnership beat both estimates with revenue slightly below consensus but a higher EPS. CEO Joseph W. Craft III highlighted that the growing demand for electricity driven by artificial intelligence is supporting utility coal consumption, underscoring a long‑term demand driver for the company’s products.
In the oil and gas royalty segment, the partnership reported a 4.1% year‑over‑year increase in BOE volumes to 1.2 million BOE, while average sales price per BOE fell 10.5% to $1.45. Capital expenditures for the quarter totaled $63.8 million, with free cash flow of $151.4 million after investing in coal operations.
Debt to trailing‑twelve‑month adjusted EBITDA stood at 0.75 times, and net leverage was 0.60 times, underscoring the partnership’s strong balance sheet and ability to fund ongoing operations and support its investment strategy.
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