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Stonegate Capital Partners Updates Coverage on Alliance Resource Partners, L.P. (ARLP) 2025 Q2

Dallas, Texas--(Newsfile Corp. - July 29, 2025) - Alliance Resource Partners, L.P. (NASDAQ: ARLP): Stonegate Capital Partners updates coverage on Alliance Resource Partners, L.P. ARLP reported a resilient 2Q25, with higher coal sales volumes offset by lower coal pricing and a stable contribution from oil & gas royalty revenues. Total revenues for the quarter decreased by 7.7% year-over-year to $547.5M, primarily due to an 11.3% decline in average coal sales prices and lower transportation revenues. Net income for the quarter fell to $59.4M compared to $100.2M in 2Q24, primarily reflecting lower revenues, increased depreciation, and a $25.0M non-cash impairment on a battery materials equity investment. These were partially offset by a $16.6M increase in the fair value of digital assets. Adj. EBITDA came in at $161.9M, representing a 1.2% sequential increase. Despite macroeconomic uncertainties, ARLP updated its FY25 guidance, supported by expectations for a challenged but improving production at Tunnel Ridge, higher tons sold from the Illinois Basin, cost efficiencies, and strong contracted commitments.

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Key Takeaways:

  • Delivered $547.5M in revenue and $161.9M in Adjusted EBITDA, supported by record coal shipments at Hamilton and River View.
  • Added 17.4M committed and priced tons for 2025-2029, enhancing long-term sales visibility.
  • Oil & Gas Royalty volumes rose 7.7% YoY; declared $0.60/unit quarterly cash distribution.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

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