Alliance Resources | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 571.37 M

Revenue: As of FY2025 Q3, the actual value is USD 571.37 M, beating the estimate of USD 567.03 M.

EPS: As of FY2025 Q3, the actual value is USD 0.73, beating the estimate of USD 0.67.

EBIT: As of FY2025 Q3, the actual value is USD 115.32 M.

Illinois Basin Coal Operations

• Tons Sold: 6,611 thousand tons (10.8% increase YoY)
• Coal Sales: $337.4 million (0.1% decrease YoY)
• Segment Adjusted EBITDA: $105.4 million (8.1% decrease YoY)
• Segment Adjusted EBITDA Expense: $233.8 million (3.7% increase YoY)

Appalachia Coal Operations

• Tons Sold: 2,092 thousand tons (13.3% decrease YoY)
• Coal Sales: $174.2 million (10.6% decrease YoY)
• Segment Adjusted EBITDA: $54.1 million (44.2% increase YoY)
• Segment Adjusted EBITDA Expense: $120.8 million (23.4% decrease YoY)

Oil & Gas Royalties

• Volume - BOE: 899 thousand BOE (4.1% increase YoY)
• Oil & Gas Royalties: $32.1 million (6.9% decrease YoY)
• Segment Adjusted EBITDA: $27.7 million (3.4% decrease YoY)
• Segment Adjusted EBITDA Expense: $4.1 million (30.7% decrease YoY)

Coal Royalties

• Volume - Tons Sold: 7,055 thousand tons (38.1% increase YoY)
• Intercompany Coal Royalties: $24.7 million (48.1% increase YoY)
• Segment Adjusted EBITDA: $17.1 million (54.5% increase YoY)
• Segment Adjusted EBITDA Expense: $7.6 million (35.5% increase YoY)

Consolidated Information

• Total Revenues: $571.4 million (6.9% decrease YoY)
• Segment Adjusted EBITDA Expense: $359.3 million (8.8% decrease YoY)
• Net Income of ARLP: $95.1 million (10.2% increase YoY)
• Segment Adjusted EBITDA: $207.2 million (7.8% increase YoY)

Future Outlook and Strategy

• Core Business Focus: The company aims to maximize the value of its existing mineral assets, both in coal production and the leasing and development of coal and oil & gas mineral ownership. The company is also positioning itself as a reliable energy provider for the future by pursuing opportunities that support the growth and development of energy and related infrastructure.
• Non-Core Business: The company is investing in energy and infrastructure opportunities, including investments in Infinitum Electric, Inc., NGP Energy Transition, L.P., and Ascend Elements, Inc. These investments are in the businesses of electric motor manufacturing, private equity investments in renewable energy, and the manufacturing and recycling of sustainable, engineered battery materials for electric vehicles.

Cash Flow

• Operating Cash Flow: $507.3 million for the nine months ended September 30, 2025 (decrease from $634.7 million YoY)
• Net Cash Used in Investing Activities: $251.0 million for the nine months ended September 30, 2025 (decrease from $337.4 million YoY)
• Net Cash Used in Financing Activities: $298.8 million for the nine months ended September 30, 2025 (increase from $161.7 million YoY)

Unique Metrics

• Digital Assets: Fair value of $64.8 million as of September 30, 2025 (increase from $45.0 million as of December 31, 2024)
• Equity Method Investments: $54.6 million as of September 30, 2025 (increase from $35.5 million as of December 31, 2024)

Outlook or Guidance

• The company anticipates having sufficient cash flow to meet 2025 cash requirements, including capital expenditures, acquisitions of oil & gas mineral interests, scheduled payments on long-term debt, lease obligations, asset retirement obligation costs, and workers’ compensation and pneumoconiosis costs. The anticipated total capital expenditures for 2025 are estimated in a range of $285.0 million to $320.0 million.