Alliance Resource Partners (NASDAQ:ARLP) reported its financial and operating results for the first quarter of 2026 on Monday, characterized by record-breaking performance in its royalty segments despite pricing challenges in the coal market.
The Partnership posted total revenues of $516 million and adjusted EBITDA of $155 million for the quarter ended March 31, 2026.
While revenues remained substantial, net income fell to $9.1 million.
The bottom line was significantly impacted by non-cash items, including a $37.8 million impairment charge related to the cessation of longwall production at the Mettiki mine and an $11.6 million reduction in the fair value of digital assets.
Revenue was also pressured by lower year-over-year coal sales pricing, though this was partially mitigated by higher coal volumes and a standout performance in the energy royalty space.
The Partnership’s oil and gas royalty segment achieved record results, with revenues and volumes climbing 14.6% and 16.1%, respectively, compared to the same period last year.
ARLP continued its expansion in this sector by completing $16.2 million in new oil and gas mineral interest acquisitions during the quarter.
Regarding the coal outlook, management noted that over 95% of expected 2026 coal sales volumes are already committed and priced at the midpoint of current guidance, providing a degree of revenue visibility amid market volatility.
Meanwhile, ARLP’s balance sheet remains lean, with total and net leverage ratios of 0.73 and 0.69 times, respectively.
Following the results, the Partnership declared a quarterly cash distribution of $0.60 per unit ($2.40 annualized), payable to unitholders in May.