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Alliance Resource (ARLP) Q1 Earnings Top Estimates, Sales Up

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Alliance Resource Partners, L.P. (ARLP - Free Report) reported first-quarter 2019 operating earnings of $1.03 per unit, beating the Zacks Consensus Estimate of 69 cents by 49.3%.

Total Revenues

Total revenues in the reported quarter were $526.6 million, almost in line with the Zacks Consensus Estimate of $527 million. However, the reported revenues reflect year-over-year growth of 15.2%.

The year-over-year improvement in the top line was on account of overall higher coal sales volume and increased coal sales price per ton. Further, increased revenues from transportation aided its top-line growth.

Operational Update

In the reported quarter, Alliance Resource sold 10.321 million tons of coal at an average sales price of $46.12 per ton.

Total operating expenses in the quarter under review were $421.9 million, increasing 42.1% year over year.

However, interest expenses were $11.4 million, declining 4.6% year over year.

Alliance Resource Partners, L.P. Price, Consensus and EPS Surprise

Financial Highlights

Cash and cash equivalents as of Mar 31, 2019 were $30.2 million compared with $244.1 million at the end of 2018.

Long-term debt as of the same date was $414.8 million compared with $564 million at 2018-end.

Cash used in operating activities during first-quarter 2019 was $115.9 million compared with $62.2 million in the year-ago period.

Guidance

Alliance Resource expects total 2019 production in the range of 43.5-45 million short tons. Net income in 2019 is expected in the range of $525.5-$5665.5 million and EBITDA is projected within $720-$760 million.

The company expects 2019 capital expenditure in the range of $360-$400 million.

Zacks Rank

Alliance Resource currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Warrior Met Coal Inc. (HCC - Free Report) is slated to report first-quarter earnings on May 1. The Zacks Consensus Estimate for earnings for the to-be-reported quarter is currently pegged at $1.75 per share.

Peabody Energy Corporation (BTU - Free Report) is expected to report first-quarter earnings on May 1. The Zacks Consensus Estimate for earnings is currently pegged at 50 cents per share.

CONSOL Coal Resources LP is expected to report first-quarter earnings on May 8. The Zacks Consensus Estimate for the partnership’s earnings is currently pegged at 45 cents per unit.

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