Company raises full-year oil & gas royalties volume guidance after AllDale III & IV acquisition.
ARLP expects 2026 coal sales tons to be essentially fully committed at midpoint of guidance.
Company forecasts 2026 total coal sales of 33.75 mln to 35.25 mln short tons.
Quarterly results beat estimates
US coal and royalties producer's Q2 revenue rose 0.7% yr/yr, beating analyst expectations.
Net income for Q2 increased 33.9% yr/yr to $79.6 mln.
Company completed a $206.2 mln oil & gas mineral interests acquisition in July.
Drivers, key details and analyst coverage
OIL & GAS ROYALTY REVENUES - Record oil & gas royalty revenues rose 30.5% yr/yr, driven by higher realized commodity pricing and increased volumes from drilling and acquisitions.
COAL SALES VOLUMES - Higher coal sales volumes, especially in Appalachia, contributed to revenue growth despite lower sales prices.
COST CONTROL - Lower segment adjusted EBITDA expense per ton in total coal operations, mainly due to productivity gains at key mines.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell".
The average consensus recommendation for the coal peer group is "buy".
Wall Street's median 12-month price target for Alliance Resource Partners LP is $31.50, about 27.5% above its July 24 closing price of $24.71.
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago.
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