| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 90 | 12.9x | 17.8x | Top tier | |
Growth | 16 | -5.1% | 7.1% | Bottom tier | |
Quality | 69 | 13.0% | 4.5% | Top tier | |
Safety | 83 | 0.8x | 2.6x | Top tier | |
Capital Return | 24 | — | 2.12% | Bottom tier | |
Momentum | 68 | 10.1% | 2.9% | Top tier | |
Sentiment | 76 | 2 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alliance Resource Partners, L.P. engages in the production and sale of coal, particularly from the Illinois Basin and Appalachia, alongside owning coal, oil, and gas royalty interests and equity method investments. In fiscal Q2 2026, the company sold 8.6 million tons of coal, including 6.4 million tons from the Illinois Basin and 2.2 million tons from Appalachia, at an average sales price of $54.87 per ton. The Coal Operations segment generated adjusted EBITDA of $151.7 million, while the Royalties segments recorded revenue of $69.3 million and adjusted EBITDA of $51 million, demonstrating that coal remains the largest operating driver as the contribution from oil and gas royalties expands.
Fiscal Q2 2026 revenue was approximately $551.6 million, and net income attributable to ARLP was approximately $79.6 million, or $0.61 per unit, while adjusted EBITDA reached $185.7 million. These figures represent a net income margin of approximately 14.4% and an adjusted EBITDA margin of approximately 33.7%; revenue also increased 6.9% sequentially, net income rose by $70.5 million, and adjusted EBITDA grew 19.8%. Year over year, net income increased 33.9% and adjusted EBITDA grew 14.7%, supported by higher coal volumes, improved costs, record oil and gas royalty results, and higher equity method investment income, while the comparison was also affected by impairment losses recorded in prior periods.
The Oil & Gas Royalties segment recorded quarterly revenue of $46.5 million in fiscal Q2 2026, up 31.1% year over year, and record adjusted EBITDA of $38 million, up 27.2%. Production volume was 936 thousand barrels of oil equivalent, up 6.4% year over year and down 8.4% sequentially, but the average realized price per barrel of oil equivalent increased 22.7% year over year and 22.1% sequentially. At the annual financial statement level, fiscal 2025 revenue was approximately $2.2 billion and net income was $311.2 million, while the fiscal 2026 trailing twelve-month figures were revenue of $2.2 billion and net income of $246.3 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on ARLP is Neutral, with an average price target of $30 and identical high and low targets of $30; this means the range is based on a single target without dispersion that would provide additional support for the consensus view. This target is only approximately 1.9% above the 52-week range high of $29.45, while the range extends to $22.20, and the data do not provide a price-to-earnings ratio for valuing the units based on earnings. Therefore, the available valuation rests on a Neutral target near the annual high, against strong operating improvement but with coal pricing pressure, financing for the AllDale transaction, and lower trailing-twelve-month net income compared with fiscal 2025.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Revenue was $551.6 million and net income attributable to ARLP was approximately $79.6 million, or $0.61 per unit. Adjusted EBITDA increased 14.7% year over year to $185.7 million. The improvement came from higher coal volumes, lower operating cost per ton, record oil and gas royalty results, and higher income from the Gavin and NGP investments, while comparisons were also affected by impairment losses in prior periods.
ARLP closed the transaction on July 1, 2026, for $206.2 million and now owns approximately 61% of the economic interest in AllDale Minerals III and AllDale Minerals IV. The transaction added scale across several U.S. basins, with a significant position in Permian and entry into Haynesville. Management expects the transaction to be immediately accretive to free cash flow per unit and to increase distributable cash flow per unit by 8% to 9% in the following year. Consolidation of production, revenue, and income in the financial statements will begin in fiscal Q3 2026.
The marketing team booked 21.2 million tons of new commitments during fiscal Q2 2026, including 18.5 million domestic tons over five years and 2.7 million export tons during 2026–2028. This brought committed and priced volume for delivery in 2027 to 29.4 million tons. For fiscal 2026, management said the company is effectively committed and priced at the midpoint of its sales guidance range of 33.75 to 35.25 million tons. This contract book limits the impact of weak spot demand, but it does not eliminate weather and natural gas price risks.
Management expects to sell approximately 18 million tons in the second half to reach the midpoint of guidance, distributed at approximately 9 million tons in each quarter. Hamilton returned to operation in mid-May 2026, and management expects its production to nearly double in Q3 compared with Q2. The longwall mining unit moves planned for 2026 have also been completed, and the company does not expect additional moves until 2027. The midpoint of cost guidance indicates a decline of approximately 10% in the second half compared with the first half, with potentially greater benefits in the Illinois Basin.
As of June 30, 2026, total debt and finance lease obligations were $590.2 million, compared with cash of $111.2 million and total liquidity of $424 million. The total debt-to-trailing-twelve-month adjusted EBITDA ratio was 0.82 times, and net leverage was 0.67 times. Distributable cash flow was $108.2 million, with a distribution coverage ratio of 1.39 times. Following the AllDale transaction, management identified reducing leverage and preserving financial flexibility among its priorities.
The average coal sales price declined 5.3% year over year to $54.87 per ton due to the expiration of higher-priced contracts and a change in the sales mix, although this was partially offset by cost improvement to $38.68 per ton. Management also tied any upside above guidance to summer consumption and utility inventory drawdowns after mild weather and lower gas prices pressured domestic demand in the first half. The $150 million AllDale loan, which matures in 18 months, added to post-transaction financing risks. In addition, the holding of 646 Bitcoin units caused a fair-value loss of $6.3 million in fiscal Q2 2026, adding non-operating volatility to earnings.
