European Investor
27 Jul 2026, 16:16
Alliance Resource Partners Stock Rises 3% After Strong Q2 Earnings and Higher 2026 Guidance
Alliance Resource Partners (NASDAQ: ARLP) shares rose about 3% on Monday after the company reported stronger second-quarter earnings, record oil and gas royalty revenue, and improved cash flow metrics while updating its 2026 guidance.
ARLP reported second-quarter revenue of $551.6 million, up 0.7% year over year. Net income increased 33.9% to $79.6 million, or $0.61 per unit, while adjusted EBITDA rose 14.7% to $185.7 million.
The improvement was supported by higher coal sales volumes, record oil and gas royalty revenue, increased investment income, and the absence of a $25 million impairment charge recorded in the prior-year quarter. Coal sales volumes reached 8.6 million tons, up 8.9% sequentially, although average coal pricing declined 2.7%.
The company’s Oil & Gas Royalties segment was a major contributor to the quarter. Royalty revenue reached a record $46.3 million, up 30.5% from a year earlier, while segment adjusted EBITDA totaled $38 million. Management attributed the growth largely to stronger realized commodity prices.
Alliance also highlighted improved cash generation. Distributable cash flow reached $108.2 million, while the distribution coverage ratio increased to 1.39 times. Both measures improved 39% from the previous quarter.
The company declared a quarterly cash distribution of $0.60 per unit, equivalent to an annualized rate of $2.40. It also secured an additional 21.2 million tons of committed and priced coal sales covering deliveries from 2026 through 2031, strengthening longer-term revenue visibility.
Following the quarter, ARLP completed its $206.2 million acquisition of oil and gas mineral interests, adding approximately 48,500 net royalty acres. The transaction expands the company’s exposure to several U.S. energy basins, including the Permian and Haynesville, and is expected to be immediately accretive to free cash flow per unit.
Management said stronger productivity, lower costs and the return of the Hamilton mine to longwall production should support higher production and cash flow during the second half of 2026. The combination of rising earnings, stronger distribution coverage, record royalty revenue and improved guidance appears to have driven the positive reaction in ARLP shares.
Alliance Resource Partners (NASDAQ: ARLP) shares rose about 3% on Monday after the company reported stronger second-quarter earnings, record oil and gas royalty revenue, and improved cash flow metrics while updating its 2026 guidance.
ARLP reported second-quarter revenue of $551.6 million, up 0.7% year over year. Net income increased 33.9% to $79.6 million, or $0.61 per unit, while adjusted EBITDA rose 14.7% to $185.7 million.
The improvement was supported by higher coal sales volumes, record oil and gas royalty revenue, increased investment income, and the absence of a $25 million impairment charge recorded in the prior-year quarter. Coal sales volumes reached 8.6 million tons, up 8.9% sequentially, although average coal pricing declined 2.7%.
The company’s Oil & Gas Royalties segment was a major contributor to the quarter. Royalty revenue reached a record $46.3 million, up 30.5% from a year earlier, while segment adjusted EBITDA totaled $38 million. Management attributed the growth largely to stronger realized commodity prices.
Alliance also highlighted improved cash generation. Distributable cash flow reached $108.2 million, while the distribution coverage ratio increased to 1.39 times. Both measures improved 39% from the previous quarter.
The company declared a quarterly cash distribution of $0.60 per unit, equivalent to an annualized rate of $2.40. It also secured an additional 21.2 million tons of committed and priced coal sales covering deliveries from 2026 through 2031, strengthening longer-term revenue visibility.
Following the quarter, ARLP completed its $206.2 million acquisition of oil and gas mineral interests, adding approximately 48,500 net royalty acres. The transaction expands the company’s exposure to several U.S. energy basins, including the Permian and Haynesville, and is expected to be immediately accretive to free cash flow per unit.
Management said stronger productivity, lower costs and the return of the Hamilton mine to longwall production should support higher production and cash flow during the second half of 2026. The combination of rising earnings, stronger distribution coverage, record royalty revenue and improved guidance appears to have driven the positive reaction in ARLP shares.
