In This Article:
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Total Revenue (Full Year 2024): $2.4 billion
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Adjusted EBITDA (Full Year 2024): $714.2 million
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Net Income (Full Year 2024): $360.9 million
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Earnings Per Unit (Full Year 2024): $2.77
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Total Revenue (Q4 2024): $590.1 million
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Net Income (Q4 2024): $16.3 million
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Adjusted EBITDA (Q4 2024): $124 million
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Coal Sales Volume (Full Year 2024): 33.3 million tons
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Coal Sales Volume (Q4 2024): 8.4 million tons
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Coal Sales Price Per Ton (Full Year 2024): $63.38
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Coal Sales Price Per Ton (Q4 2024): $59.97
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Adjusted EBITDA Expense Per Ton Sold (Q4 2024): $48.09
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Total Liquidity (Year End 2024): $593.9 million
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Free Cash Flow (Full Year 2024): $383.5 million
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Quarterly Distribution (Q4 2024): $0.70 per unit
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Bitcoin Holdings (Year End 2024): 482 bitcoins valued at $45 million
Release Date: February 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alliance Resource Partners LP (NASDAQ:ARLP) reported total revenues of $2.4 billion for the full year 2024, demonstrating strong financial performance despite challenging market conditions.
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The company achieved outstanding safety results, with safety statistics 34% below 2023 and companywide results finishing below the national average.
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ARLP successfully completed major infrastructure projects at Tunnel Ridge, Hamilton, Warrior, and Riverview, ensuring reliable, low-cost operations for the future.
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The company maintained a strong balance sheet with total liquidity of $593.9 million at year-end, including $137 million in cash.
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ARLP's oil and gas royalties business achieved another record year of volumes, reflecting increased drilling and completion activities on its properties.
Negative Points
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Total coal sales volumes in 2024 were 1.1 million tons lower than in 2023, primarily due to elevated customer inventories, mild weather, and low natural gas prices.
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The company faced difficult mining conditions in the Appalachia region, particularly at Tunnel Ridge and Mettiki, leading to reduced volumes and lower recoveries.
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Net income for the fourth quarter of 2024 was significantly lower at $16.3 million compared to $115.4 million in the fourth quarter of 2023.
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ARLP experienced a decrease in coal and oil and gas prices, which negatively impacted revenues and profitability.
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The company incurred a $31.1 million non-cash impairment charge due to market uncertainties, leading to a decision to reduce production at MC Mining.
Q & A Highlights
Q: How do recent tariff announcements and potential retaliatory tariffs impact Alliance Resource Partners and the coal markets? A: Joseph Craft, Chairman, President, and CEO, explained that it's challenging to predict the impact without knowing President Trump's exact focus. He believes the tariffs are primarily a negotiation tool and doesn't foresee significant effects on Alliance Resource Partners, as most products are domestically based. However, the situation is fluid, and changes could occur rapidly.