On February 12, President Donald Trump signed an order requiring the Department of Defense to secure coal-fired power from domestic plants and directing the Energy Department to allocate $175 million for upgrades at six facilities in Kentucky, North Carolina, Ohio, Virginia and West Virginia. This policy aims to stabilize coal off-take agreements and extend plant operations.

Following the announcement, Alliance Resource Partners shares rose 1.96% in extended trading as market participants forecast increased sales and revenue stability from long-term government contracts. The move underscores renewed federal support for coal, enhancing near-term demand visibility for the company’s production.

The upgrade funds will target equipment and emissions controls at coal plants identified for modernization, potentially extending their operating lives by several years. Concurrently, the Tennessee Valley Authority has delayed closures at its Kingston and Cumberland coal plants, preserving additional demand for coal shipments in the region.