Alliance Resource Partners LP Delivers Strong Coal Production and Adjusted EBITDA Results in Q1 2025
On May 15, Alliance Resource Partners LP released its first quarter 2025 financial and operating results, marking a solid start to the year for the company. In a conference call with investors and analysts, senior management provided insights into the performance of their coal operations in the Illinois Basin and Appalachia regions.
The company reported total revenues of $540.5 million for the first quarter of 2025, which was a decline from $651.7 million in the same period last year. This decrease was primarily due to lower coal sales volumes and prices, as well as reduced transportation revenues. Despite this, Alliance Resource Partners LP saw an increase of 4.7% in segment adjusted EBITDA expense per ton sold for their coal operations compared to the same period last year.
In the Illinois Basin region, coal sales prices decreased by 4.2% compared to the first quarter of 2024, mainly due to lower domestic price realizations at several mines within the region. However, segment adjusted EBITDA expense per ton sold in this region was $43.55, a decrease of 12.6% from the same period last year.
On the other hand, coal sales prices in Appalachia decreased by 8.5% compared to the first quarter of 2024, due primarily to reduced export price realizations from Alliance Resource Partners LP's MC Mining and Mettiki operations. Despite this, segment adjusted EBITDA expense per ton sold in Appalachia was $41.09, a decrease of 11.1% from the same period last year.
The company also reported total coal production of 8.5 million tons for the first quarter of 2025, which was 7.2% lower than the same period last year. Coal sales volumes decreased by 10.4% to 7.8 million tons compared to the same period last year.
In its prepared remarks, Alliance Resource Partners LP discussed its perspective on current market conditions and updated outlook for 2025. Joe Craft, Chairman, President and Chief Executive Officer, provided comments following the company's review of their first quarter results. The call also opened up to answer questions from investors and analysts.
The conference call transcript highlighted that Alliance Resource Partners LP is focusing on managing costs and optimizing production levels in response to market challenges. Despite the decline in coal sales prices and volumes, the company's adjusted EBITDA performance per ton sold showed an increase compared to last year.
Alliance Resource Partners LP's coal operations continue to face various market headwinds, including challenging mining conditions in Appalachia. However, management remains optimistic about the company's future prospects and has provided guidance for 2025. The conference call offered valuable insights into the performance of Alliance Resource Partners LP's coal operations in the first quarter of 2025.
