Wednesday, April 27, 2022
Alliance Resource Partners (ARLP)
ARLP Raises 2022 Expectations; Increases Cash Distribution 40%
Alliance Resource Partners LP operates as a coal mining company based in the United States. It functions through threesegments; Illinois Basin, Appalachia, and and Minerals. The Illinois Basin activity comprises of underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia and it makes up for most of the company’s revenue-generating operations. The Appalachia segment, on the other hand, consists of multiple operating segments, including the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining mining complex. The Minerals segment includes oil & gas mineral interests held by AR Midland and AllDale I & II.
Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Full year 2022 guidance. While Alliance tempered first quarter expectations due to coal shipment delays and a one-time conversion of its oil & gas business to a corporate taxable entity, Alliance now expects full year 2022 coal sales tonnage in the range of 35.5 to 37.0 million short tons compared to prior expectations of 35.2 to 36.7 million tons. Coal sales price per ton sold is expected to be in the range of $54.00 to $63.00 versus prior guidance of $49.05 to $51.25. While expectations for coal royalty tons sold is unchanged, pricing expectations have increased. Alliance also raised expectations for oil & gas royalty volumes.
Updating estimates. While we have lowered our adjusted first quarter EPS to $0.60 from $0.62 due to lower coal shipments which will be delivered later in the year, we have increased our full year estimate to $3.25 from $2.75. We have increased our 2022 EBITDA estimate to $716.1 million from $650.8 million. While the company expects to report GAAP first quarter net income of $35.0 to $37.0 million …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
