Alliance Resource Partners: Record Royalties Drive Profit Surge – Quarterly Update Report

By Brandon Hornback

Alliance Resource Partners, L.P. (Nasdaq: ARLP) published coagulated 4th fourth results, with a surge successful EBITDA and beardown outlook for 2026.

The diversified-energy company’s EBITDA came successful astatine $191.1 cardinal successful the 4th quarter, up 54.1% from the anterior year. That translated to a steadfast $93.8 cardinal successful escaped currency travel aft adjusting for Capex.

Average ember merchantability prices decreased twelvemonth implicit twelvemonth 4% arsenic higher-priced bequest contracts support rolling off. Additionally, little ember income volumes, caused by the timing of committed deliveries, further contributed to a gross diminution twelvemonth implicit year.

However, accrued accumulation and inventory constituent to important net imaginable successful the pursuing quarters. Similarly, semipermanent and short-term manufacture conditions stay favorable. Extreme wintertime conditions reinforced coals relation arsenic captious reliability resource, an important presumption to support arsenic information centers, AI workloads, and concern request summation load connected the U.S. powerfulness market.

The royalties conception delivered different grounds twelvemonth with a meaningful adjusted EBITDA publication of $30 cardinal for 2025. Oil and state royalties volition apt thrust integrated bottom-line maturation successful 2026 amid expected disciplined measurement maturation portion maintaining a unchangeable outgo structure.

Despite grounds escaped currency travel procreation and a rock-solid equilibrium sheet, ARLP looks undervalued from a terms to net perspective. Based connected adjacent 12 months expected net the steadfast trades astatine a 44% discount to ember adjacent companies and a 51% discount to lipid peers.

Check retired the links beneath for our latest sum of ARLP’s 2026 guidance and 4th fourth results oregon our archetypal initiation portion for a deeper overview of the business.

Download the Complete Report Here

Read Exec Edge’s Initiation connected ARLP Here

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