Monday, May 02, 2022
Alliance Resource Partners (ARLP)
Adjusted Estimates Reflect Income Tax Estimate Revisions
ARLP is a diversified natural resource company that generates operating and royalty income from coal produced by its mining complexes and royalty income from mineral interests it owns in strategic oil & gas producing regions in the United States, primarily the Permian, Anadarko and Williston basins. ARLP currently produces coal from seven mining complexes its subsidiaries operate in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States. In addition, ARLP is positioning itself as an energy provider for the future by leveraging its core technology and operating competencies to make strategic investments in the fast growing energy and infrastructure transition.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Recent company guidance. Alliance Resource Partners recently provided first quarter EPS guidance. The company expects to report GAAP first quarter net income of $35.0 million to $37.0 million, or $0.27 to $0.28 per unit, inclusive of a negative $27 million net income impact associated with lower coal shipments due to transportation constraints, and a negative $37 million net income impact associated with the one-time conversion of its oil & gas business to a corporate taxable entity.
Updating 2022 estimates. We have revised our model to better reflect current income tax and the treatment of a one-time non-cash deferred income tax expense and liability. We forecast first quarter and full year 2022 GAAP reported net income of $36.1 million and $363.0 million, respectively, or $0.28 per share and $3.15 per share. On an adjusted basis, we forecast first quarter and full year 2022 net income of $73.1 million and $400.8 million, respectively, or $0.57 and $3.15 per share. Our adjusted net income estimate excludes the one-time impact of converting Alliance Minerals to a corporate taxable entity but reflects lower shipments due to transportation constraints….
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.
