Alliance Resource Q3 net income jumps 46.8% to $139.6 million

• Alliance Resource Partners reported third-quarter 2026 revenue of $603 million, up 5.5% year over year, while net income attributable to the partnership increased 46.8% to $139.6 million.
• Adjusted EBITDA attributable to the partnership rose 26.3% to $233.9 million, supported by improved coal operating costs, record oil and gas royalty revenue and contributions from recent acquisitions.
• Distributable cash flow reached $136.8 million, with distribution coverage improving to 1.76 times, as Alliance declared a quarterly cash distribution of $0.60 per unit.

Alliance Resource Partners (NASDAQ:ARLP) reported third-quarter 2026 revenue of $603 million, an increase of 5.5% year over year, while net income attributable to the partnership climbed 46.8% to $139.6 million.

Adjusted EBITDA attributable to ARLP rose 26.3% from a year earlier to $233.9 million, supported by stronger coal operations, record oil and gas royalties and higher equity-method investment income.

Total revenue increased 9.3% sequentially, benefiting from higher coal sales volumes and other revenues despite lower average coal selling prices.

Segment adjusted EBITDA Expense per ton sold at the company's coal operations improved 13.1% year over year and 7.9% from the preceding quarter, reflecting reduced operating costs per ton.

Alliance declared a quarterly cash distribution of $0.60 per unit, equivalent to $2.40 annually, after reporting distributable cash flow of $136.8 million and a distribution coverage ratio of 1.76 times.

The company completed $223.5 million in oil and gas royalty acquisitions during the quarter, contributing to record royalty revenues and production volumes and expanding its mineral interests portfolio.

Net income also benefited from a $16.5 million increase in the fair value of digital assets and a $6.3 million investment remeasurement gain, partially offset by higher income taxes and a $7.3 million loss on acquired derivative instruments.