Diversified energy company Alliance Resource Partners LP (NASDAQ: ARLP) released its 2026 second-quarter financial results today, reporting substantial year-over-year gains across key financial metrics. The company also announced a quarterly cash distribution of $0.60 per unit and updated its full-year guidance.
For the second quarter, total revenue reached $551.6 million, a 0.7% increase year-over-year. Net income soared to $79.6 million, up 33.9% compared to the same period last year. Adjusted EBITDA came in at $185.7 million, a 14.7% improvement from the prior year. The growth was driven by record oil and gas royalty revenues, higher coal sales volumes, and increased other income, partially offset by a decline in average coal selling prices.
The oil and gas royalty segment was a standout performer, generating $46.3 million in revenue, a 30.5% year-over-year increase and a new all-time high. On July 1, the company completed a $206.2 million acquisition of oil and gas mineral rights, adding approximately 48,500 net royalty acres.
The company declared a quarterly cash distribution of $0.60 per unit, equating to an annualized rate of $2.40 per unit. Distributable cash flow for the period was $108.2 million, resulting in a distribution coverage ratio of 1.39 times, a 39% sequential improvement in both metrics.
Regarding sales guidance, Alliance Resource Partners expects full-year 2026 coal sales volumes to be between 33.75 million and 35.25 million tons. The CEO stated that while mild weather and lower natural gas prices negatively impacted domestic coal demand in the first half, the company’s strong contracted sales book minimized the impact. The company noted that approximately 294,000 tons of coal for delivery in 2027 have already been contracted and priced, reflecting customer confidence in the company's supply capabilities.
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