Alliance Resource Partners Issues Initial 2017 Guidance - Quick Facts

(RTTNews) - Alliance Resource Partners, L.P. (ARLP) announced the company is estimating 2017 revenues, excluding transportation revenues, in a range of $1.71 billion to $1.78 billion, net income in a range of $250.0 million to $315.0 million and EBITDA in a range of $550.0 million to $615.0 million. During 2017, coal production is currently estimated in a range of 37.9 million to 38.9 million tons and sales volumes are expected in a range of 37.9 million to 39.2 million tons.

Joseph Craft III, CEO, said: "With expectations of a stronger thermal market, ARLP is planning for increased production and sales volumes, coming primarily from our Illinois Basin operations. Longer term, we are hopeful the new Trump administration will remove the threat of the Clean Power Plan and further reduce the regulatory overreach which has burdened the industry over the last few years, providing clarity for stable, and potentially growing, coal demand over the next decade."

Alliance Resource Partners, L.P. reported that, led by increased coal sales volumes and significantly lower operating expenses, net income for the fourth-quarter increased to $119.6 million, or $1.30 per limited partner unit compared to profit of $21.5 million, or a loss of $0.19 per EPU, for the quarter ended December 31, 2015. EBITDA increased to $208.9 million in the 2016 quarter, a jump of 74.1% compared to $120.0 million in the 2015 quarter. Excluding non-cash items from the 2015 quarter, adjusted net income and adjusted EBITDA for the fourth-quarter exceeded prior year quarter by 35.3% and 11.8%, respectively.

Fourth-quarter revenues decreased 2.7% to $527.4 million, compared to prior year, due to lower coal sales price realizations offset in part by increased coal sales volumes and higher other sales and operating revenues. Strong sales performance at the River View, Gibson South, Hamilton and Tunnel Ridge mines drove total coal sales volumes higher by 5.3% to 10.5 million tons in the quarter. Reflecting operating adjustments made in response to market conditions, coal production decreased 2.3% in the quarter to 9.5 million tons.