2026 Quarter
Filed Oct 26, 2026Alliance Resource Partners Reports Third Quarter 2026 Financial and Operating Results; Declares Quarterly Cash Distribution of $0.60 Per Unit; and Updates Guidance
Third-quarter revenue, net income attributable to ARLP, Adjusted EBITDA attributable to ARLP, coal volumes, royalty revenue and free cash flow increased year-over-year, while Coal Operations Segment Adjusted EBITDA Expense per ton declined. Appalachia coal pricing and Segment Adjusted EBITDA declined year-over-year, and full-year guidance includes lower realized pricing assumptions in Appalachia than Illinois Basin.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $603M | 9.3 % | 5.5 % |
| Total revenues, nine months ended September 30, 2026GAAP | $1.67B | – | 0.7 % |
| Coal sales, three months ended September 30, 2026GAAP | $504.2M | – | – |
| Coal sales, nine months ended September 30, 2026GAAP | $1.42B | – | – |
| Oil & gas royalties, three months ended September 30, 2026GAAP | $59.76M | – | – |
| Oil & gas royalties, nine months ended September 30, 2026GAAP | $147.4M | – | – |
| Transportation revenues, three months ended September 30, 2026GAAP | $10.26M | – | – |
| Other revenues, three months ended September 30, 2026GAAP | $28.82M | – | – |
| Operating expenses, three months ended September 30, 2026GAAP | $339.2M | (0.6) % | (4.4) % |
| Operating expenses, nine months ended September 30, 2026GAAP | $1.02B | – | (1.8) % |
| Total operating expenses, three months ended September 30, 2026GAAP | $455.6M | – | – |
| General and administrative, three months ended September 30, 2026GAAP | $27.11M | – | – |
| Depreciation, depletion and amortization, three months ended September 30, 2026GAAP | $82.28M | – | – |
| Income from operations, three months ended September 30, 2026GAAP | $147.4M | – | – |
| Net income, three months ended September 30, 2026GAAP | $141.3M | – | – |
| Net income attributable to ARLP, three months ended September 30, 2026GAAP | $139.6M | 75.5 % | 46.8 % |
| Net income attributable to ARLP, nine months ended September 30, 2026GAAP | $228.3M | – | (0.1) % |
| Earnings per limited partner unit - basic and diluted, three months ended September 30, 2026GAAP | $ 1.08 | 77.0 % | 47.9 % |
| Earnings per limited partner unit - basic and diluted, nine months ended September 30, 2026GAAP | $ 1.76 | – | — % |
| Adjusted EBITDA attributable to ARLP, three months ended September 30, 2026non-GAAP | $233.9M | 26.4 % | 26.3 % |
| Adjusted EBITDA attributable to ARLP, nine months ended September 30, 2026non-GAAP | $573.3M | – | 13.4 % |
| Distributable Cash Flow, three months ended September 30, 2026non-GAAP | $136.8M | – | – |
| Distribution Coverage Ratio, three months ended September 30, 2026non-GAAP | 1.76 | – | – |
| Cash flows from operating activities, three months ended September 30, 2026GAAP | $253.0M | – | – |
| Cash flows from operating activities, nine months ended September 30, 2026GAAP | $511.5M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $198.6M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $308.2M | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | $204.7M | – | – |
| Total coal tons sold, three months ended September 30, 2026other | 9.348 | 9.2 % | 7.4 % |
| Total coal tons produced, three months ended September 30, 2026other | 9.45M | – | – |
| Mineral Interest Volumes (BOE), three months ended September 30, 2026other | 1.45M | – | – |
| Change in fair value of digital assets, three months ended September 30, 2026GAAP | $16.49M | – | – |
| Net income on equity method investments, three months ended September 30, 2026GAAP | $12.77M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $19.04M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Illinois Basin Coal OperationsTons sold were 7.033, up 6.4 % year-over-year and 10.5 % sequentially, driven by the resumption of longwall production at Hamilton following its extended longwall move. Segment Adjusted EBITDA was $ 139.8 million. | Not separately reported | – | – |
| Appalachia Coal OperationsTons sold were 2.315, up 10.7 % year-over-year and 5.7 % sequentially on strong sales at Tunnel Ridge. Segment Adjusted EBITDA was $ 48.5 million, down (10.4) % year-over-year. | Not separately reported | – | – |
| Total Coal OperationsSegment Adjusted EBITDA was $ 186.8 million, up 18.6 % year-over-year and 23.1 % sequentially, driven by higher Illinois Basin volumes and lower per ton costs. Coal sales price per ton sold was $ 53.93, down (8.3) % year-over-year. | Not separately reported | – | – |
| Oil & Gas RoyaltiesSegment Adjusted EBITDA attributable to ARLP was $ 43.6 million, up 61.4 % year-over-year and 16.8 % sequentially. Volumes increased primarily due to the AllDale III & IV acquisition. | $59.76M | – | – |
| Coal RoyaltiesRoyalty tons sold were 8.350, up 18.4 % year-over-year and 10.8 % sequentially. Segment Adjusted EBITDA was $ 18.2 million, up 6.2 % year-over-year and 40.0 % sequentially. | Not separately reported | – | – |
| Total RoyaltiesSegment Adjusted EBITDA attributable to ARLP was $ 61.8 million, up 40.0 % year-over-year and 22.8 % sequentially. | $87.5M | 26.4 % | 52.5 % |
Full year ending December 31, 2026 outlook
- NoteIllinois Basin sales tons: 26.50 — 27.00 Million Short Tons
- NoteAppalachia sales tons: 8.00 — 8.50 Million Short Tons
- NoteTotal sales tons: 34.50 — 35.50 Million Short Tons
- Note2026 committed & priced sales tons, Domestic / Export / Total: 31.3 / 3.7 / 35.0
- Note2027 committed & priced sales tons, Domestic / Export / Total: 28.7 / 3.0 / 31.7
- NoteIllinois Basin coal sales price per ton sold: $51.00 — $51.50
- NoteAppalachia coal sales price per ton sold: $65.00 — $65.50
- NoteTotal coal sales price per ton sold: $54.25 — $54.75
- NoteIllinois Basin Segment Adjusted EBITDA Expense per ton sold: $33.50 — $34.25
- NoteAppalachia Segment Adjusted EBITDA Expense per ton sold: $50.00 — $51.00
- NoteTotal Segment Adjusted EBITDA Expense per ton sold: $37.50 — $38.50
- NoteOil: 1.900 — 2.000 Million Barrels
- NoteNatural gas: 10.250 — 10.750 Million MCF
- NoteLiquids: 1.100 — 1.200 Million Barrels
- NoteOil & Gas Royalties Segment Adjusted EBITDA Expense: ~ 14.0% of Oil & Gas Royalties Revenue
- NoteCoal Royalties royalty tons sold: 29.5 — 30.2 Million Short Tons
- NoteCoal Royalties revenue per royalty ton sold: $3.00 — $3.20
- NoteCoal Royalties Segment Adjusted EBITDA Expense per royalty ton sold: $1.10 — $1.20
- NoteDepreciation, depletion and amortization: $325 — $335
- NoteGeneral and administrative: $100 — $105
- NoteNet interest expense: $53 — $55
- NoteIncome tax expense: $35 — $40
- NoteNet income attributable to non-controlling interests: $12 — $14
- NoteAdjusted EBITDA attributable to non-controlling interests: $24 — $26
- NoteTotal capital expenditures: $270 — $290
Capital returns
- Quarterly cash distribution of $0.60 per unit, or $2.40 per unit annualized.
- Distribution payable on November 13, 2026, to unitholders of record as of the close of trading on November 6, 2026.
- Distributions paid to partners were $ 77,876 (in thousands) for the three months ended September 30, 2026, $ 77,776 (in thousands) for the three months ended September 30, 2025, and $ 77,847 (in thousands) for the three months ended June 30, 2026.
- Distributions paid to Partners were $ 233,732 (in thousands) for the nine months ended September 30, 2026, compared with $ 259,406 (in thousands) for the nine months ended September 30, 2025.
What drove it
- Record oil & gas royalty revenues and volumes were driven by $223.5 million of acquisitions completed during the quarter.
- On July 1, 2026, ARLP completed the AllDale III & IV acquisition for approximately $206.2 million.
- Higher coal sales volumes reflected the resumption of longwall production at Hamilton and strong sales at Tunnel Ridge.
- Lower Coal Operations Segment Adjusted EBITDA Expense per ton reflected higher Hamilton production, improved River View per-ton costs, increased Tunnel Ridge production and a higher mix of lower-cost Tunnel Ridge volumes.
- Third-quarter net income attributable to ARLP benefited from higher revenues and equity method investment income, lower operating expenses, a $16.5 million increase in the fair value of digital assets and a $6.3 million acquisition gain.
Concerns
- Appalachia coal sales price per ton sold was $ 62.35, down (25.1) % year-over-year and (1.9) % sequentially.
- Appalachia Segment Adjusted EBITDA was $ 48.5 million, down (10.4) % year-over-year and (1.5) % sequentially.
- Average oil & gas sales price per BOE was $ 41.21, down (16.6) % sequentially, primarily due to lower realized crude oil prices and a higher mix of natural gas volumes.
- Loss on derivative instruments, net was $ 7,266 (In thousands) in the 2026 Quarter.
- Interest expense, net was $ 15,848 (In thousands) in the 2026 Quarter, compared with $ 11,033 (In thousands) in the 2025 Quarter.
What to watch
- Delivery against full-year total coal sales guidance of 34.50 — 35.50 Million Short Tons.
- Realized Appalachia pricing against guidance of $65.00 — $65.50 per ton.
- Oil & gas production volumes and realized prices following the AllDale III & IV acquisition.
- Oil & Gas Royalties Segment Adjusted EBITDA Expense guidance of ~ 14.0% of Oil & Gas Royalties Revenue.
- Full-year total capital expenditures guidance of $270 — $290.
- Additional export opportunities, with 3.7 million tons committed and priced for 2026 and 3.0 million tons for 2027.
Balance sheet and cash flow
- Total debt and finance leases were $679.9 million as of September 30, 2026.
- Total and net leverage ratios were 0.89 times and 0.78 times debt to trailing twelve months Adjusted EBITDA attributable to ARLP, respectively, as of September 30, 2026.
- Total liquidity was $430.8 million, including $84.8 million of cash and cash equivalents and $346.0 million of borrowings available under revolving credit and accounts receivable securitization facilities.
- Cash and cash equivalents were $ 84,808 (In thousands) at September 30, 2026, compared with $ 71,212 (In thousands) at December 31, 2025.
- Digital assets were $ 56,257 (In thousands) at September 30, 2026. ARLP held 673 bitcoins valued at $56.3 million.
- Long-term debt, excluding current maturities, net was $ 549,705 (In thousands), and current maturities, long-term debt, net were $ 119,151 (In thousands), at September 30, 2026.
- Business combinations, net of cash acquired were $ 240,973 (in thousands) for the nine months ended September 30, 2026.
- Net cash used in investing activities was $ 462,536 (in thousands) and net cash used in financing activities was $ 35,480 (in thousands) for the nine months ended September 30, 2026.
Analysis
ARLP reported a stronger third quarter, with total revenues of $603.0 million, up 5.5 % year-over-year and 9.3 % sequentially. Net income attributable to ARLP rose 46.8 % year-over-year to $139.6 million, while Adjusted EBITDA attributable to ARLP increased 26.3 % to $233.9 million. The reported earnings improvement reflected revenue growth, lower operating expenses, higher equity method investment income, a $16.5 million increase in the fair value of digital assets and a $6.3 million acquisition gain. These items were partly offset by higher income tax expense and a $7.3 million loss on derivative instruments acquired with AllDale III & IV.
Coal operations benefited from greater throughput and lower costs. Total coal tons sold reached 9.348, up 7.4 % year-over-year and 9.2 % sequentially, while Coal Operations Segment Adjusted EBITDA increased 18.6 % year-over-year to $186.8 million. Segment Adjusted EBITDA Expense per ton was $35.64, down 13.1 % year-over-year and 7.9 % sequentially. Illinois Basin Segment Adjusted EBITDA rose to $139.8 million as Hamilton resumed longwall production, but Appalachia Segment Adjusted EBITDA declined to $48.5 million as its coal sales price per ton sold fell to $62.35.
Royalties became a larger contributor after the AllDale III & IV acquisition. Total royalty revenues rose 52.5 % year-over-year to $87.5 million, and Total Royalties Segment Adjusted EBITDA attributable to ARLP increased 40.0 % to $61.8 million. Oil & Gas Royalties Segment Adjusted EBITDA attributable to ARLP reached a quarterly record of $43.6 million, with BOE sold increasing 61.3 % year-over-year to 1.450. Average sales price per BOE increased year-over-year to $41.21 but declined 16.6 % sequentially as realized crude oil prices declined and natural gas became a larger share of volumes.
Cash generation and distributions remained supported. Distributable Cash Flow was $136,835 (in thousands), compared with $105,717 (in thousands) in the prior-year quarter, and free cash flow was $198,622 (in thousands), compared with $151,438 (in thousands). The Distribution Coverage Ratio was 1.76, and the Partnership declared a $0.60 per unit quarterly distribution. ARLP ended the period with $430.8 million of liquidity, $679.9 million of total debt and finance leases, and net leverage of 0.78 times debt to trailing twelve months Adjusted EBITDA attributable to ARLP.
The full-year guide calls for 34.50 — 35.50 Million Short Tons of total coal sales, total coal sales price per ton sold of $54.25 — $54.75 and total capital expenditures of $270 — $290. Management cited 31.3 / 3.7 / 35.0 of 2026 domestic, export and total committed and priced sales tons, respectively, and 28.7 / 3.0 / 31.7 for 2027. Key execution variables are coal price realization, particularly in Appalachia, cost delivery at the mines, oil and gas realized pricing and production volumes following the AllDale III & IV acquisition, and capital spending within guidance.
Management, verbatim
We had an outstanding third quarter led by our Coal Operations’ strong shipping quarter combined with Hamilton being back on longwall production and River View and Tunnel Ridge operating well, which drove Segment Adjusted EBITDA at our Coal Operations 23.1% higher sequentially to $186.8 million, while Segment Adjusted EBITDA Expense per ton sold declined 13.1% year-over-year.
Joseph W. Craft III, Chairman, President and Chief Executive Officer
In our first full quarter including AllDale III & IV, our Oil & Gas Royalties segment generated Segment Adjusted EBITDA attributable to ARLP of $43.6 million, up 16.8% sequentially and 61.4% year-over-year.
Joseph W. Craft III, Chairman, President and Chief Executive Officer
We continue to convert this constructive market into contracted volumes. During the quarter, we added 4.2 million committed and priced tons through 2028, and we are essentially fully committed at the midpoint of our 2026 sales volume guidance.
Joseph W. Craft III, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter and year-over-year changes for certain detailed GAAP income-statement line items were not printed on their own rows.
- Gross margin was not reported.
- A tax rate was not reported.
- Unit repurchases were not reported.
- Revenue was not separately reported for Illinois Basin Coal Operations, Appalachia Coal Operations, Total Coal Operations, or Coal Royalties.
- Forward consolidated revenue, gross margin, operating expenses and tax rate guidance were not reported.
- Prior-period guidance was not provided, so no comparison of actual results against prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.