Alliance Resource Partners shares jump 3.6% as Q1 revenue beats by $1.05M despite EPS miss
Alliance Resource Partners reported Q1 adjusted EPS of $0.07, missing forecasts by $0.27, while revenue of $516.0M surpassed estimates by $1.05M despite a 4.5% year-over-year decline. Net income plunged to $9.1M from $74.0M, with a $37.8M non-cash Mettiki mine impairment and 6.5% per-ton coal price drop.
1. Q1 Revenue and Earnings
Alliance Resource Partners reported adjusted EPS of $0.07 for Q1, missing the $0.34 consensus, while revenue reached $516.0 million, edging out the $514.95 million estimate but falling 4.5% year-over-year. Adjusted EBITDA declined 3.1% to $155.0 million.
2. Impairment Charges and Cost Pressures
Net income decreased to $9.1 million from $74.0 million in the prior-year quarter, driven by a $37.8 million non-cash impairment tied to the Mettiki mine halt and an $11.6 million reduction in digital asset valuations, alongside a 6.5% drop in average coal prices to $56.40 per ton.
3. Oil and Gas Royalties Segment
The oil and gas royalties division delivered record results with revenue up 14.6% year-over-year and volumes rising 16.1%, supported by $16.2 million in acquisitions of mineral interests during the quarter.
4. Outlook and Distribution
The partnership declared a quarterly distribution of $0.60 per unit ($2.40 annualized) payable May 15, and forecasts full-year 2026 coal sales volumes of 33.75 to 35.25 million tons, with over 95% of volumes contracted at guidance midpoint.