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Alliance Resource Partners reports record FY23 revenue and net income

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World Coal,

Alliance Resource Partners, L.P. has reported financial and operating results for the quarter and full year ended 31 December 2023. This release includes comparisons of results to the quarter and year ended 31 December 2022, as well as the quarter ended 30 September 2023.

FY23 saw total revenues increase US$146.7 million to a record US$2.6 billion primarily due to higher coal sales revenues. Coal sales prices and coal sales revenues during the FY23 were higher by 8.6% and 5.1%, respectively, compared to FY22. Increased revenues and lower income tax expense were partially offset by higher total operating expenses in FY23, resulting in record net income of US$630.1 million, or US$4.81 per basic and diluted limited partner unit, for FY23, compared to US$586.2 million, or US$4.39 per basic and diluted limited partner unit, for FY22, a 7.5% increase.

Total revenues in the 2023 Quarter decreased to US$625.4 million compared to US$704.2 million for the 2022 Quarter primarily as a result of lower coal and oil & gas prices and reduced coal sales volumes, partially offset by record oil & gas royalty volumes and higher transportation and other revenues. Lower revenues and higher total operating expenses reduced net income for the 2023 Quarter to US$115.4 million, or US$0.88 per basic and diluted limited partner unit, compared to US$216.9 million, or US$1.63 per basic and diluted limited partner unit, for the 2022 Quarter. EBITDA for the 2023 Quarter was US$185.4 million compared to US$296.9 million in the 2022 Quarter.

Compared to the sequential quarter, total revenues in the 2023 Quarter decreased 1.7% primarily as a result of lower average coal sales prices of US$60.60/t sold compared to US$64.94/t sold in the sequential quarter, partially offset by higher coal sales volumes, which increased 1.9% to 8.6 million tons sold in the 2023 Quarter. Lower revenues and higher total operating expenses contributed to a reduction in net income and EBITDA of 24.9% and 18.5%, respectively, compared to the sequential quarter.

Joseph W. Craft III, Chairman, President and CEO, comments:

“For the 2023 Full Year, we once again delivered record revenues and net income, relying upon the strength of our well-contracted coal order book and the resilience of the entire ARLP team who persevered through volatile market challenges and difficult mining conditions.

“Our strategic relationships with our long-standing customers were evident in the 2023 Quarter as we contracted an additional 12.0 million t for domestic deliveries over the 2024 through 2028 time period at attractive, escalating prices, bringing our committed and priced order book for 2024 to over 90% of expected shipments.

“We believe the worst of the adverse geological conditions, which delayed development of a new district at Mettiki, idling the longwall there for essentially the entire second half of FY23, are behind us. With the longwall at Mettiki resuming production in late December 2023, we are expecting production in 1Q24, for our Appalachia operations, to compare favourably to 1Q23.

“Our Oil & Gas Royalty business completed US$24.8 million in oil & gas mineral interest acquisitions during the 2023 Quarter and US$110.9 million for FY23, resulting in record BOE volumes. We plan to continue allocating capital to grow this business line in 2024. Combining the stability of our heavily contracted coal order book with continued growth in our Oil & Gas Royalty business, we are well-positioned for another record year of revenues in 2024.”

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