Alliance Resource Partners (ARLP) Q4 2024 earnings summary

Executive summary

• Full year 2024 revenues reached $2.45 billion, with adjusted EBITDA of $714.2 million and net income of $360.9 million; earnings per unit were $2.77.

• Fourth quarter 2024 revenues were $590.1 million, down from $625.4 million in Q4 2023, mainly due to lower coal and oil/gas prices, reduced coal sales volumes in Appalachia, and non-cash impairment charges.

• Operational challenges included difficult mining conditions in Appalachia, shipping delays, and unattractive export pricing for high sulfur coal.

• Strategic capital improvements were executed at several mines, and safety performance was notably strong, with safety statistics 34% below 2023.

• Record oil & gas royalty volumes of 3.4 million BOE in 2024, up 9.6% year-over-year, with $9.6 million in mineral interest acquisitions in Q4.

Financial highlights

• 2024 full year revenue decreased 4.6% and net income fell 42.7% compared to 2023, mainly due to lower coal sales and higher expenses.

• Adjusted EBITDA for Q4 2024 was $124 million; net income was $16.3 million, down from $115.4 million in Q4 2023.

• Free cash flow for 2024 was $383.5 million after $410.9 million invested in coal operations.

• Quarterly distribution declared at $0.70 per unit, annualized at $2.80 per unit, unchanged from prior periods.

• Year-end liquidity was $593.9 million, including $137 million in cash and 482 Bitcoin valued at $45 million.

Outlook and guidance

• 2025 coal sales volumes expected between 32.25–34.25 million tons, with over 78% committed and priced at the midpoint.

• Sales pricing guidance: $50–$53/ton in Illinois Basin (vs. $56.44 in 2024), $76–$82/ton in Appalachia (vs. $83.53 in 2024).

• Full year 2025 segment adjusted EBITDA expense per ton expected at $28–$30 in Illinois Basin (vs. $37.81 in 2024) and $53–$60 in Appalachia (vs. $64.67 in 2024).

• Capital expenditures for 2025 guided at $285–$320 million, down from $429 million in 2024; maintenance capex at $20–$22 million.

• Oil and gas royalties expected to achieve record volumes in 2025, with segment adjusted EBITDA expense at ~14% of revenues.