Alliance Resource Partners, L.P. (NASDAQ: ARLP) reported its first-quarter 2025 financial results, demonstrating resilience in a challenging energy market. Total revenues decreased 17.1% year-over-year to $540.5 million, primarily due to a 10.4% decline in coal sales volumes.
The company's coal sales volumes totaled 7.8 million tons, with pricing decreasing by 6.9% to $60.29 per ton. The Illinois Basin segment experienced a 6.1% year-over-year volume decline, while Appalachia coal sales volumes dropped 22.7%, attributed to challenging mining conditions and increased longwall move days.
Despite these challenges, ARLP maintained a strong financial position. Adjusted EBITDA increased 29.0% sequentially to $159.9 million, and the company ended the quarter with $514.3 million in total liquidity, including $81.3 million in cash and $433.0 million available under credit facilities.
The company's royalty business contributed $52.7 million in revenues, with oil and gas royalties showing relatively stable performance. ARLP continues to maintain a consistent quarterly cash distribution of $0.70 per unit.
Looking forward, ARLP remains optimistic about its fiscal year 2025 prospects. The company anticipates higher domestic sales volumes, operational cost efficiencies, and solid contracted commitments will help sustain margins comparable to the previous fiscal year, despite ongoing macroeconomic uncertainties.
