Alliance Resource Partner Reports Strong Third Quarter Results
Alliance Resource Partners LP Has reported significant increases to financial and operating results for the quarter ended September 30, 2020 on improved demand for coal and oil & gas compared to the quarter ended June 30, 2020. On a consolidated basis, total revenues increased 39.4% to USD 355.7 million, net income rose 158.3% to USD 27.2 million and EBITDA climbed 146.4% to USD 118.8 million, all as compared to the Sequential Quarter. With improved coal demand and a resumption of production at all of ARLP’s mining complexes, our coal operations delivered increases to coal sales and production volumes of 48.5% and 66.6%, respectively, leading coal sales revenue and
Alliance Resource Partners Chairman, President and Chief Executive Officer Joseph W Craft III said "As we expected, ARLP’s performance during the 2020 Quarter benefited from improved economic activity, increased coal demand and recovering oil & gas production volumes and prices. Our coal operations responded to increased customer requirements by successfully ramping up production to meet contractual commitments while effectively mitigating the impacts of COVID-19 through the enhanced health and safety protocols implemented earlier this year. Stronger commodity prices led oil & gas operators to bring previously shut-in wells back online and slowly resume drilling and completion of wells on our mineral interests. The continuing efforts of the entire organization to optimize cash flow, reduce working capital and control capital expenditures and expenses enhanced our financial position and liquidity. As a result, all of ARLP’s operating and financial metrics improved significantly during the 2020 Quarter."
Coal sales volumes declined to 7.7 million tons in the 2020 Quarter compared to 9.3 million tons in the 2019 Quarter reflecting reduced export sales volumes. Coal sales price realizations fell by 3.3% in the 2020 Quarter due to lower priced thermal and metallurgical markets compared to the 2019 Quarter.