Global Finance News
26 Oct 2026, 18:56
Alliance Resource Partners Rises 2% as Q3 Earnings, Coal Volumes and Royalty Revenue Strengthen
Alliance Resource Partners (NASDAQ: ARLP) shares rose about 2% after the company reported stronger third-quarter 2026 earnings, improved coal operating costs and record oil and gas royalty revenue.
Revenue increased 5.5% year over year to $603.0 million, while net income attributable to ARLP jumped 46.8% to $139.6 million. Adjusted EBITDA attributable to ARLP rose 26.3% to $233.9 million, supported by stronger coal operations, contributions from the AllDale III & IV acquisition and higher equity-method investment income.
Coal operations improved meaningfully during the quarter. Segment Adjusted EBITDA rose 23.1% sequentially to $186.8 million, while Adjusted EBITDA expense per ton sold declined 13.1% year over year. The company also added 4.2 million committed and priced tons through 2028 and now has 31.7 million tons contracted for 2027.
Oil and gas royalties were another major growth driver. Segment Adjusted EBITDA attributable to ARLP reached $43.6 million, up 61.4% year over year, helped by $223.5 million of acquisitions completed during the quarter.
Cash generation remained solid, with distributable cash flow of $136.8 million and a distribution coverage ratio of 1.76x. ARLP declared a quarterly cash distribution of $0.60 per unit, equivalent to $2.40 annualized.
The 2% gain appears to reflect the combination of stronger earnings, lower coal costs, growing contracted volumes and an expanding royalty business. Management also said elevated crude prices could support another record quarter for oil and gas royalties, while expecting 2027 results to compare favorably with 2026.
Alliance Resource Partners (NASDAQ: ARLP) shares rose about 2% after the company reported stronger third-quarter 2026 earnings, improved coal operating costs and record oil and gas royalty revenue.
Revenue increased 5.5% year over year to $603.0 million, while net income attributable to ARLP jumped 46.8% to $139.6 million. Adjusted EBITDA attributable to ARLP rose 26.3% to $233.9 million, supported by stronger coal operations, contributions from the AllDale III & IV acquisition and higher equity-method investment income.
Coal operations improved meaningfully during the quarter. Segment Adjusted EBITDA rose 23.1% sequentially to $186.8 million, while Adjusted EBITDA expense per ton sold declined 13.1% year over year. The company also added 4.2 million committed and priced tons through 2028 and now has 31.7 million tons contracted for 2027.
Oil and gas royalties were another major growth driver. Segment Adjusted EBITDA attributable to ARLP reached $43.6 million, up 61.4% year over year, helped by $223.5 million of acquisitions completed during the quarter.
Cash generation remained solid, with distributable cash flow of $136.8 million and a distribution coverage ratio of 1.76x. ARLP declared a quarterly cash distribution of $0.60 per unit, equivalent to $2.40 annualized.
The 2% gain appears to reflect the combination of stronger earnings, lower coal costs, growing contracted volumes and an expanding royalty business. Management also said elevated crude prices could support another record quarter for oil and gas royalties, while expecting 2027 results to compare favorably with 2026.
