Alliance Resource Partners LP Sees Significant Growth in Q3 2026 as Coal Sales Volumes and Adjusted EBITDA Rise
Coal mining company Alliance Resource Partners LP (ARLP) recently released its third quarter 2026 financial and operating results, which show significant growth across key metrics. The company's total revenues increased by 5.5% year-over-year to $603 million, while net income attributable to ARLP rose by 46.8% to $139.6 million, or $1.08 per basic and diluted limited partner unit.
Adjusted EBITDA attributable to ARLP also saw a substantial increase of 26.3% to $233.9 million, outpacing the previous quarter's growth rate. This improvement was driven by higher coal sales volumes and lower expenses per ton. Coal sales volumes reached 9.3 million tons in Q3 2026, representing a 7.4% year-over-year increase and a 9.2% sequential rise.
Segment adjusted EBITDA for coal operations increased to $186.8 million, up 18.6% from the same period last year and 23.1% from the previous quarter. The average coal sales price per ton was $53.93 in Q3 2026, down 8.3% compared to the prior year but still a respectable figure.
A key factor contributing to the improvement in adjusted EBITDA was the reduction in expenses per ton, which fell by 13.1% year-over-year and 7.9% sequentially. This decrease more than offset lower average pricing, increasing the spread between sales price and segment adjusted EBITDA expense to $18.
The company's equity method investments also generated a substantial income of $12.8 million in Q3 2026, up from $4.5 million in the same period last year and $9.5 million in the previous quarter. This increase was primarily driven by higher income and valuations from investments in the Gavin Power Plant and the NGP Fund.
In a presentation that began with a review of ARLP's third quarter 2026 results, including the first full quarter of contribution from its AllDale III and IV acquisition, Cary Marshall, Senior Vice President and Chief Financial Officer, highlighted the company's strong performance in Q3 2026. He noted that the company would be discussing certain non-GAAP financial measures, which are defined and reconciled at the end of ARLP's press release.
The presentation also touched on forward-looking statements, reminding participants that actual results may vary from those projected or expected due to various risks and uncertainties. With this context in mind, Marshall presented an overview of the company's quarterly performance, providing details on revenue growth, net income, adjusted EBITDA, and coal sales volumes.
