Alliance Resource Q2 update highlights revenue growth, record royalty income, and stronger profitability.
Stock Earnings Results
July 27, 2026
Table of Contents
July 27, 2026
Alliance Resource Partners, L.P. (NASDAQ: ARLP) reported second-quarter 2026 results above expectations, supported by higher revenue, stronger net income, higher adjusted EBITDA, record oil and gas royalty revenue, and an updated full-year outlook.
Alliance Resource Partners is a diversified natural resource company and one of the largest coal producers in the eastern United States. The partnership supplies coal to utilities, industrial users, and export customers, while also generating royalty income from coal and oil and gas mineral interests.
The dashboard showed EPS of $0.65, above estimates of $0.62, representing a 4.8% earnings surprise. Revenue came in at $551.56 million, above estimates of $538.46 million, with revenue growth of 0.7%.
Total revenue increased 0.7% year-over-year to $551.6 million.
Net income attributable to ARLP increased 33.9% to $79.6 million.
Earnings were $0.61 per basic and diluted limited partner unit, compared with $0.46 in the prior-year quarter.
Adjusted EBITDA increased 14.7% to $185.7 million.
Distributable cash flow was $108.2 million.
The distribution coverage ratio was 1.39 times, improving 39.0% sequentially.
Oil and gas royalty revenue reached a record $46.3 million, up 30.5% year-over-year.
Oil and Gas Royalties segment adjusted EBITDA increased to a record $38.0 million.
The increase was driven mainly by higher average realized commodity prices.
Average sales price per BOE increased 22.7% year-over-year to $49.43.
Oil and gas royalty volumes increased 6.4% from the prior-year quarter due to increased drilling and completion activity and additional acquired mineral interests.
Total coal tons sold increased 2.1% year-over-year to 8.6 million tons.
Coal sales price per ton declined 5.3% to $54.87.
Total Coal Operations segment adjusted EBITDA increased 6.9% to $151.7 million.
Segment adjusted EBITDA expense per ton fell 6.3% year-over-year to $38.68.
Management said strong productivity and cost control at River View and Tunnel Ridge helped improve operating performance.
Appalachia coal tons sold increased 27.6% year-over-year.
Appalachia segment adjusted EBITDA increased 67.2% to $49.2 million.
The improvement was driven by higher production at Tunnel Ridge due to better recoveries and productivity.
That helped offset a 22.9% decline in Appalachia coal sales price per ton.
Illinois Basin segment adjusted EBITDA declined 8.8% to $104.2 million, affected by lower tons sold and costs tied to the planned extended longwall move at the Hamilton mine.
ARLP declared a quarterly cash distribution of $0.60 per unit.
That equals an annualized rate of $2.40 per unit.
The distribution is payable August 14, 2026, to unitholders of record as of August 7.
ARLP ended the quarter with $424.0 million of total liquidity, including $111.2 million in cash and $312.8 million of borrowing availability.
Total debt and finance leases were $590.2 million.
The partnership also held 646 bitcoins valued at $37.9 million as of June 30.
On July 1, ARLP completed its $206.2 million acquisition of oil and gas mineral interests in AllDale Minerals III and IV.
The deal added about 48,500 net royalty acres across the Permian, Anadarko, Bakken, and Haynesville basins.
Management said the acquisition expands ARLP’s oil and gas royalty platform, adds scale, and increases exposure to long-term LNG export demand through the Haynesville.
ARLP said its cumulative investment in oil and gas royalties now exceeds $1.0 billion.
ARLP updated its 2026 guidance.
The partnership expects total coal sales of 33.75 million to 35.25 million tons.
Expected 2026 coal sales tons are essentially fully committed at the midpoint of guidance.
ARLP also has 29.4 million tons committed and priced for 2027 delivery.
Management increased full-year oil and gas royalty volume guidance to reflect the AllDale acquisition beginning in the third quarter.
Total capital expenditures are expected to range from $280 million to $300 million.
Alliance Resource Partners delivered a stronger quarter as royalties and coal operations improved.
Revenue beat expectations, net income increased, adjusted EBITDA rose, and oil and gas royalty revenue reached a record. The partnership also maintained a $0.60 quarterly distribution and expanded its royalty platform with the AllDale acquisition.
The key question is whether ARLP can keep growing cash flow from royalties while maintaining stable coal sales, disciplined costs, and distribution coverage.
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