In its most recent quarterly earning statement, Alliance Resource Partners (ARLP) said it continues to benefit from rising coal markets as coal price realizations increased $5.48/ton year-on-year and $2.39 quarter-to-quarter. It secured new agreements for the delivery of approximately 8.7 million tons through 2025 at prices well above initial expectations.
“Buoyed by robust energy market fundamentals during the 2022 quarter, ARLP delivered strong operating and financial performance with coal and oil and gas sales volumes, total revenues, net income and EBITDA all increasing significantly over the 2021 quarter,” Chairman, President and CEO Joe Craft said. “Our coal operations performed exceptionally well, particularly in light of the transportation challenges experienced during the 2022 quarter, which resulted in delayed shipments of approximately 1.1 million tons.”
Total revenues for the first quarter increased 44.6% to $460.9 million compared to $318.6 million for Q1 2021, as a result of higher coal sales volumes and prices, which rose 19.5% and 13%, respectively, and higher oil and gas royalty volumes and prices, which increased by 26.3% and 74.9%, respectively. Total operating expenses increased to $373 million in Q1 2022, compared to $282.3 million for Q1 2021, due primarily to increased coal sales volumes and inflationary cost pressures.
Compared to the quarter ended December 31, 2021, total revenues decreased by 2.7% primarily as a result of lower coal sales volumes due to previously reported coal shipment delays,. Total operating expenses decreased 9.5% to $373 million due primarily to lower coal sales volumes in the Q1 2022 and expenses incurred in the previous quarter related to an $11.8 million buy-out of a coal contract and $6.8 million of unfavorable year-end non-cash actuarial and accrual adjustments.