TULSA, Okla. - Alliance Resource (NASDAQ:ARLP) Partners, L.P. (NASDAQ: ARLP) reported a strong start to the year, with first-quarter earnings surpassing analyst expectations.
The company posted an adjusted EPS of $1.21, significantly higher than the consensus estimate of $0.93. Revenue for the quarter also exceeded forecasts, coming in at $651.7 million against an anticipated $620.06 million.
The energy company's stock responded positively to the news, climbing 3.78%. This uptick is attributed to the company's stellar first-quarter results, which have demonstrated its operational efficiency and growth in key segments.
In comparison to the same quarter last year, total revenue saw a slight decrease from $662.9 million to $651.7 million, primarily due to lower average coal sales prices, which were offset by increased oil & gas royalties and other revenues. Despite the decline in revenue, the company's net income stood at $158.1 million, down from last year's $191.2 million, largely due to increased operating expenses.
Chairman, President, and Chief Executive Officer Joseph W. Craft III commented on the quarter's success, attributing it to strong operational performance and the company's contracted coal position, which helped mitigate impacts from mild winter weather and low natural gas prices. He also noted the growth in the Oil & Gas Royalties segment and reiterated full-year guidance based on the current trajectory.
Coal sales volumes rose to 8.7 million tons, marking a 2.4% increase year-over-year (YoY), while record oil & gas royalty volumes surged 18.3% YoY to 898 MBOE, up 11.0% sequentially. The company's liquidity was bolstered, ending the quarter at $551.3 million, including $134.0 million in cash.
The company declared a quarterly cash distribution of $0.70 per unit, consistent with previous quarters, and maintained its full-year guidance, signaling confidence in its future performance.
Craft emphasized the company's commitment to safe operations and reliability for customers, as well as its strategic investments in response to the growing electricity demand and the evolving energy market.
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