Alliance Resource Partners Reports Strong Q3 2026 Growth Driven by Record Oil and Gas Royalties
Alliance Resource Partners (ARLP) reported significant growth in its third quarter 2026 results, with total revenues rising 5.5% year-over-year to $603.0 million. Net income attributable to the partnership surged 46.8% to $139.6 million, or $1.08 per unit, fueled by increased coal sales volumes and record oil and gas royalty revenues following the acquisition of AllDale III and IV. The company's performance was bolstered by a 7.4% increase in coal sales volumes and a substantial rise in oil and gas BOE volumes, which grew 61.3% year-over-year. Despite rising costs in ocean freight and barge logistics impacting margins, ARLP improved its distribution coverage ratio to 1.8 and reported strong free cash flow of $198.6 million. Looking ahead, management raised the midpoint of its 2026 coal sales guidance and noted a healthy pipeline with 31.7 million committed coal tons for 2027. However, potential headwinds include tight barge capacity due to regional aggregate movements and increased logistics costs.
Tickers: $ARLP
Topics: coal sales volumes free cash flow net income increase oil and gas royalty revenues revenue growth
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