Alliance Resource Partners Records $233.9 Million in Adjusted Earnings, Up 26.3%

Key Facts

Alliance Resource Partners reported attributable adjusted EBITDA of $233.9 million in the third quarter of 2026, up 26.3% year over year, according to a company statement published via Business Wire. Management attributed the improvement to strong coal operations, a contribution from the “Aldel” acquisition and higher equity-method investment income. The results came as coal sales volumes rose while the average selling price per ton fell. The company said its oil and gas royalties business also posted record performance during the quarter. The company declared a quarterly cash distribution to unitholders, alongside announcing committed and priced coal sales for coming years.

Coal sales volumes increased 7.4% from the same quarter a year earlier to 9.348 million tons, compared with 8.703 million tons. But the average selling price per ton fell 8.3% to $53.93, from $58.78 a year earlier. Meanwhile, adjusted EBITDA expenses for coal operations per ton sold declined 13.1% to $35.64, compared with $40.99. These metrics show that higher sales volumes coincided with lower prices per ton, while operating expenses per ton also declined. Management said strong coal operations were among the factors supporting the increase in attributable adjusted earnings.

In the oil and gas royalties business, attributable adjusted EBITDA was $43.6 million, a record level, according to the statement. The figure rose 61.4% year over year and 16.8% from the previous quarter. The company linked the business’s expansion to the “Aldel 3 and 4” acquisition. Management said the contribution from the “Aldel” acquisition also supported total adjusted earnings during the quarter. Growth in this business came alongside improved coal operations and higher investment income, the factors the company cited to explain the increase in adjusted earnings.

Chief Executive Joseph W. Craft III said rising electricity demand and constraints that slow the addition of new generation capacity could extend the operating life of the existing coal fleet as data-center-related demand takes shape. He added: “We believe this dynamic will extend the operating horizon of the existing coal fleet, with its impact on our customers’ coal consumption becoming clearer as data-center-driven demand materializes.” During the quarter, the company added 4.2 million tons of committed and priced coal sales through 2028, and said it entered next year with 31.7 million tons committed and priced for 2027. The board approved a cash distribution of $0.60 per unit, payable on November 13 to unitholders of record on November 6, 2026. The company had scheduled a call to discuss the results and update its 2026 outlook for October 26 at 10:00 a.m. U.S. Eastern time.