Alliance Resource Partners reports 3Q results
TULSA — Alliance Resource Partners r eported Monday i ts coal business continued to face challenges during the third quarter.
However, company offi - cials reported Monday better revenues from its oil and gas minerals business helped.
The company reported it earned a third-quarter 2019 net income of $39.1 million, or 30 cents a unit, on total revenues of $464.7 million.
During the same quarter in 2018, it earned a net income of $73.7 million, or 55 cents a unit, on total revenues of $497.8 million.
The company' s 2019 thirdquarter earnings before interest, taxes, depreciation and amortization was $123.1 million, compared to $153.7 million for the same 2018 period.
Excluding the impact of a non-cash asset impairment associated with the closure of one of i ts high- cost coal plants, the company's thirdquarter 2019 adjusted earnings was $138.3 million.
“Challenging coal market conditions continued to impact… financial and operating performance ,” said Joseph W. Craft III, the company's CEO, as part of the earnings release. “Weak power demand, persistently low prices for competing fuels and ongoing transportation issues have reduced coalfired generation in the U.S. and internationally, leading
to an oversupplied coal market and unsustainably low coal prices.”
Still, Craft also noted the company secured new coal sales contracts through 2023 that will require it to deliver 11.2 million tons of product to buyers.
On the oil and gas minerals front, Craft said that segment of Alliance Resource Partners' business continues to perform well, noting it recently completed a deal to buy mineral interests from another company in the Permian Basin, giving it opportunities to earn revenues from rights involving a total of more than 400,000 acres that are being actively developed.
The company also announced its board approved a Nov. 14 distribution of 54 cents per unit to holders as of Nov. 7.
“We believe this decision, along with our l ow- cost, strategically located operations, growing mineral business and conservative balance sheet keeps Alliance Resource Partners well positioned to deliver long-term value for our unitholders,” Craft stated.