• Total Revenue (Full Year 2024): $2.4 billion
• Adjusted EBITDA (Full Year 2024): $714.2 million
• Net Income (Full Year 2024): $360.9 million
• Earnings Per Unit (Full Year 2024): $2.77
• Total Revenue (Q4 2024): $590.1 million
• Net Income (Q4 2024): $16.3 million
• Adjusted EBITDA (Q4 2024): $124 million
• Coal Sales Volume (Full Year 2024): 33.3 million tons
• Coal Sales Volume (Q4 2024): 8.4 million tons
• Coal Sales Price Per Ton (Full Year 2024): $63.38
• Coal Sales Price Per Ton (Q4 2024): $59.97
• Adjusted EBITDA Expense Per Ton Sold (Q4 2024): $48.09
• Total Liquidity (Year End 2024): $593.9 million
• Free Cash Flow (Full Year 2024): $383.5 million
• Quarterly Distribution (Q4 2024): $0.70 per unit
• Bitcoin Holdings (Year End 2024): 482 bitcoins valued at $45 million

• Warning! GuruFocus has detected 7 Warning Sign with ARLP.

Release Date: February 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Alliance Resource Partners LP (NASDAQ:ARLP) reported total revenues of $2.4 billion for the full year 2024, demonstrating strong financial performance despite challenging market conditions.
• The company achieved outstanding safety results, with safety statistics 34% below 2023 and companywide results finishing below the national average.
• ARLP successfully completed major infrastructure projects at Tunnel Ridge, Hamilton, Warrior, and Riverview, ensuring reliable, low-cost operations for the future.
• The company maintained a strong balance sheet with total liquidity of $593.9 million at year-end, including $137 million in cash.
• ARLP's oil and gas royalties business achieved another record year of volumes, reflecting increased drilling and completion activities on its properties.

Negative Points

• Total coal sales volumes in 2024 were 1.1 million tons lower than in 2023, primarily due to elevated customer inventories, mild weather, and low natural gas prices.
• The company faced difficult mining conditions in the Appalachia region, particularly at Tunnel Ridge and Mettiki, leading to reduced volumes and lower recoveries.
• Net income for the fourth quarter of 2024 was significantly lower at $16.3 million compared to $115.4 million in the fourth quarter of 2023.
• ARLP experienced a decrease in coal and oil and gas prices, which negatively impacted revenues and profitability.
• The company incurred a $31.1 million non-cash impairment charge due to market uncertainties, leading to a decision to reduce production at MC Mining.

Q & A Highlights

Q: How do recent tariff announcements and potential retaliatory tariffs impact Alliance Resource Partners and the coal markets? A: Joseph Craft, Chairman, President, and CEO, explained that it's challenging to predict the impact without knowing President Trump's exact focus. He believes the tariffs are primarily a negotiation tool and doesn't foresee significant effects on Alliance Resource Partners, as most products are domestically based. However, the situation is fluid, and changes could occur rapidly.

Q: What is the outlook for domestic coal shipments in 2025, and how confident is the company in reaching its 30 million ton goal? A: Joseph Craft stated that while the goal is to reach 30 million tons, the current guidance does not reflect this level. Conversations with customers are ongoing, and there is confidence in achieving production and sales targets. The company is optimistic about domestic opportunities, especially given reduced inventories and potential export market improvements.

Q: What are the expectations for coal pricing in 2025, and how does it align with current market conditions? A: Joseph Craft confirmed that current pricing discussions are included in the guidance range for 2025. The company anticipates that contract prices will support higher levels than spot prices, driven by supply-demand dynamics. There is potential for upside in spot prices, particularly if weather conditions increase demand.

Q: How are operational challenges at Tunnel Ridge and Mettiki being addressed, and what is the outlook for 2025? A: Joseph Craft noted that longwall moves at Tunnel Ridge and Mettiki are expected to improve conditions. Tunnel Ridge will see significant improvements starting in May 2025, while Mettiki's outlook is less predictable. Overall, the company expects better geological conditions in 2025 compared to the previous year.

Q: What is the company's strategy regarding its digital asset holdings, particularly Bitcoin? A: Joseph Craft explained that the company historically sold Bitcoin to cover expenses but is currently holding more due to anticipated price increases. The Trump administration's supportive stance on Bitcoin influences this decision. The company will reassess its strategy based on policy developments and market conditions.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.