Alliance Resource Partners (NASDAQ: ARLP) reported Q2 EPS of $0.82, $0.04 better than the analyst estimate of $0.78.

Outlook

"ARLP’s Adjusted EBITDA and distributable cash flow performance for the 2017 Quarter was in line with our expectations, as our ongoing efforts to reduce expenses and minimize capital overcame the impact of force majeure events and shipment deferrals,\" said Mr. Craft. \"Looking forward to the second half of 2017, nearly all of our planned production is committed under contract. Total tons produced and sold over the balance of the year will be influenced by the weather and opportunities to ship thermal coal into the international markets. While slow to develop, summer weather has recently been positive for coal consumption in our markets."

Mr. Craft continued, "We expect our customers will make up recent deferred shipments over the next six to nine months. Coal volumes and revenues are expected to be within our most recent guidance ranges for 2017. Strong operating cost control and better than anticipated performance from recent investments are also expected to keep ARLP’s full-year guidance for net income, Adjusted EBITDA and distributable cash flow intact. We continue to believe our sound strategy, low-cost operations and strong market presence will allow ARLP to take advantage of opportunities to increase sustainable cash flows and deliver long-term value to our unitholders."

During the 2017 Quarter, ARLP continued to strengthen its coal sales contract position by adding volume and price commitments for 8.2 million tons for deliveries from 2017 through 2020. ARLP now has secured volume and price commitments for approximately 38.0 million tons in 2017 and 20.1 million tons, 11.0 million tons and 6.9 million tons in 2018, 2019 and 2020, respectively.

Based on results to date and expectations for the remainder of the year, ARLP is confirming its previous estimates for 2017 full-year results within the following ranges: coal production of 38.1 million to 39.1 million tons, coal sales volumes of 38.5 million to 39.5 million tons, revenues (excluding transportation revenues) of $1.78 billion to $1.82 billion, net income of $290.0 million to $330.0 million and Adjusted EBITDA of $605.0 million to $645.0 million. (For a definition of Adjusted EBITDA and a related reconciliation to the most comparable GAAP financial measure, please see the end of this release.)

In addition, ARLP is maintaining its previous 2017 guidance for capital expenditures in a range of $145.0 million to $165.0 million. Total investments are now estimated in a range of $120.0 million and $130.0 million including the $100.0 million investment in Kodiak discussed above and $20.0 million to $30.0 million related to the acquisition of oil and gas mineral interests.

For earnings history and earnings-related data on Alliance Resource Partners (ARLP) click here.