Alliance Resource Partners Posts Record Oil & Gas Royalty Ebitda

The Tip Desk · October 27, 2026 · 4 min read

Coal Operations Segment Adjusted EBITDA reached $186.8 million after Hamilton resumed longwall production, while Oil & Gas Royalties posted a quarterly record $43.6 million.

Alliance Resource Partners, L.P. (ARLP), a diversified natural resource company and the second-largest coal producer in the eastern United States, reported third-quarter 2026 total revenues of $603.0 million, up 5.5% from a year earlier and 9.3% from the June quarter.

Net income attributable to ARLP was $139.6 million, or $1.08 per unit, up 46.8% from a year earlier. Adjusted EBITDA attributable to ARLP was $233.9 million, up 26.3% year-over-year and 26.4% sequentially.

The company said the revenue increase reflected record oil and gas royalty revenues, higher coal sales volumes and higher other revenues, partially offset by a lower coal sales price per ton. Net income also included a $16.5 million increase in the fair value of digital assets and a $6.3 million gain on remeasurement of a previously held equity investment in AllDale III tied to the AllDale III & IV acquisition.

Coal Operations Segment Adjusted EBITDA was $186.8 million, up 18.6% year-over-year and 23.1% sequentially. Total coal tons sold were 9.348 million, up 7.4% year-over-year and 9.2% sequentially. Illinois Basin tons sold were 7.033 million, driven by the resumption of longwall production at Hamilton after an extended longwall move. Appalachia tons sold were 2.315 million on strong sales at Tunnel Ridge.

Total coal sales price per ton was $53.93, down 8.3% year-over-year. Illinois Basin prices were in line with a year earlier. Appalachia prices fell 25.1% year-over-year to $62.35 a ton, which the company attributed to a higher mix of lower-priced Tunnel Ridge volumes and lower prices at Tunnel Ridge and Mettiki.

Segment Adjusted EBITDA Expense per ton in total coal operations was $35.64, down 13.1% year-over-year and 7.9% sequentially. Illinois Basin expense per ton was $31.77, which the company said reflected higher production at Hamilton and improved per-ton costs at River View. Appalachia expense per ton was $46.25. Chairman, President and Chief Executive Officer Joseph W. Craft III said the quarter was led by a strong shipping quarter, Hamilton back on longwall production and River View and Tunnel Ridge operating well.

On July 1, 2026, ARLP completed the AllDale III & IV acquisition for approximately $206.2 million, adding about 48,500 net royalty acres across the Permian, Anadarko, Bakken and Haynesville. Oil and gas royalty volumes of 1.450 million BOE sold were up 61.3% year-over-year and 54.9% sequentially, which the company said was primarily due to the acquisition. Oil & Gas Royalties Segment Adjusted EBITDA attributable to ARLP was a quarterly record $43.6 million, up 61.4% year-over-year and 16.8% sequentially, in the first full quarter including AllDale III & IV. Average sales price per BOE was $41.21.

Coal Royalties Segment Adjusted EBITDA was $18.2 million, up 40.0% sequentially, due to higher royalty tons sold, primarily from Tunnel Ridge and Hamilton. Total royalty revenues were $87.5 million.

Distributable Cash Flow was $136.8 million and the Distribution Coverage Ratio was 1.76x, with both increasing about 26% sequentially from $108.2 million and 1.39x in the prior quarter. The board approved a quarterly cash distribution of $0.60 a unit, or $2.40 annualized, payable November 13, 2026.

As of September 30, 2026, total debt and finance leases were $679.9 million. Total and net leverage were 0.89 times and 0.78 times debt to trailing twelve months Adjusted EBITDA attributable to ARLP. Total liquidity was $430.8 million, including $84.8 million of cash and $346.0 million of available borrowings. ARLP held 673 bitcoins valued at $56.3 million.

ARLP updated full-year 2026 guidance for total coal sales tons of 34.50 million to 35.50 million and total coal sales price of $54.25 to $54.75 a ton. Oil and gas royalty guidance volumes reflect consolidation of AllDale III and IV beginning July 1, 2026. Craft said the company added 4.2 million committed and priced tons through 2028 during the quarter and is essentially fully committed at the midpoint of 2026 sales volume guidance, with 31.7 million tons committed and priced for 2027. He said that if today’s crude oil prices remain elevated, the Oil & Gas Royalties segment could be in a position to have another record quarter to finish the year, and that 2027 results are expected to compare favorably to 2026 due to the full-year contribution of minerals acquired this year as well as anticipated mineral investments next year.