Alliance Resource Partners (NASDAQ:ARLP) reported a massive surge in fourth-quarter profitability on Monday, as record oil and gas royalty volumes and improved coal operational efficiency drove a triple-digit increase in net income.
The Tulsa-based energy partnership delivered a net income of $82.7 million for the quarter ended December 31, 2025—a 406.2% jump compared to the same period in 2024.
The performance was bolstered by a 20.2% year-over-year increase in oil and gas royalty volumes, hitting new record highs.
On the coal side, ARLP ramped up production to 8.2 million tons in the fourth quarter, an 18.7% increase, as it successfully capitalized on robust domestic demand for baseload power.
For the full year 2025, the partnership generated $2.2 billion in total revenue and $311.2 million in net income, while maintaining a conservative balance sheet with a net leverage ratio of just 0.56 times.
Accompanying the results, ARLP issued an optimistic 2026 outlook, projecting coal sales volumes to rise by approximately 0.8 million to 2.3 million tons over 2025 levels.
Management noted that more than 93% of its 2026 sales guidance is already committed and priced.