Key Highlights

  • Alliance Resource Partners (NASDAQ:ARLP) reported third-quarter 2026 earnings of USD 1.08 per unit on October 26, 2026, against USD 0.73 a year earlier, with net income up 46.8% to USD 139.6 million.
  • Revenue rose 5.5% to USD 603.0 million, and adjusted EBITDA attributable to the partnership rose 26.3% to USD 233.9 million, even though the average coal price fell 8.3% to USD 53.93 a ton.
  • Coal sales volume rose 7.4% to 9.348 million tons, while oil and gas royalty volumes hit a record 1.450 million barrels of oil equivalent after the USD 206.2 million AllDale acquisition.
  • The quarterly distribution was held at USD 0.60 per unit, USD 2.40 annualized, with coverage of 1.76 times, and 31.7 million tons are committed and priced for 2027.

Volume and Royalties Offset Lower Prices

Alliance sells thermal coal from the Illinois Basin and Appalachia and owns oil and gas mineral royalties. Third-quarter tons sold were 9.348 million, up 7.4%, with the Illinois Basin at 7.033 million tons at USD 51.16 a ton and Appalachia at 2.315 million tons at USD 62.35. The average price fell 8.3%, so higher volume and lower costs drove the profit gain: coal segment adjusted EBITDA rose 18.6% to USD 186.8 million. Royalty segment adjusted EBITDA rose 61.4% to USD 43.6 million, helped by the AllDale III and IV acquisition that closed on July 1, 2026. Consensus EPS was USD 0.82 in published market data.

What Management Said

CEO Joseph Craft III credited a strong shipping quarter, the return of the Hamilton mine to longwall production, and solid results at River View and Tunnel Ridge. He said capital investments created a lower-cost, more reliable platform, and argued that fundamentals are strengthening as electricity load grows while new generation is slowed by permitting, interconnection and supply chain limits, which should extend the life of the coal fleet. Alliance Resource Partners (NASDAQ:ARLP) is essentially fully committed for 2026 at the guidance midpoint and expects 2027 results to improve on 2026. Export volumes are a growing share of sales, and the royalty business adds exposure to natural gas.

Guidance, Risks and Catalysts

Updated 2026 guidance calls for 34.50 to 35.50 million tons at an average USD 54.25 to 54.75 a ton, and capital spending of USD 270 million to USD 290 million. Risks include coal price pressure, mine operating problems such as longwall interruptions, power-plant retirements, and commodity price swings in the royalty business. A distribution of USD 0.60 per unit is payable on November 13, 2026 to holders of record on November 6, 2026, and coverage of 1.76 times gives it a cushion. Investors will watch 2027 pricing as contracts are signed, export demand and the integration of the royalty acquisition at Alliance Resource Partners (NASDAQ:ARLP).

Where Things Stand

The answer is that Alliance earned USD 1.08 a unit because it sold 7.4% more coal at lower unit costs and added record oil and gas royalty volume, even as the average coal price fell 8.3%. That beat consensus of USD 0.82 by a wide margin. Alliance Resource Partners (NASDAQ:ARLP) guides for 34.50 to 35.50 million tons and says 2027 should improve on 2026, but price and operating risks remain. The next catalyst is the November 13, 2026 distribution date. This is not investment advice.