Alliance Resource Partners (NASDAQ: ARLP) reported Q4 EPS of $0.55, $0.03 worse than the analyst estimate of $0.58. Revenue for the quarter came in at $483.23 million versus the consensus estimate of $478.35 million.

Market Update and Outlook

"ARLP enters 2018 poised for continued strong operating and financial performance," said Mr. Craft. "We expect improved demand from our domestic customers in the first half of 2018 as recent cold weather across much of the U.S. has resulted in increased coal burn and reduced utility stockpiles. The international thermal and metallurgical coal markets continue to support participation by U.S. producers and we anticipate ARLP’s sales to these markets will increase in 2018, having already booked commitments to export approximately 5.9 million tons this year. As a result, ARLP is planning to increase production and sales volumes by 5.0% to 6.0% in 2018, which along with continued strong cost performance by our mines and an improving price environment are expected to drive solid results from ARLP’s coal operations. During the 2017 Quarter, we booked close to 10.0 million tons for delivery in 2018 and currently have price and volume commitments for approximately 85.0% of ARLP’s estimated 2018 production at the midpoint of our guidance. Longer term, we expect the strength of our market presence and strategically-located, low-cost mines will continue to support strong results from our coal operations for many years in the future."

Mr. Craft continued, "The contribution from ARLP’s current investments in oil and gas minerals and compression services are expected to increase meaningfully in 2018, adding an estimated $25.0 to $35.0 million to ARLP’s net income and EBITDA this year. As ARLP continues to receive preferred returns on its investment in compression services and drilling activity on our mineral acreage continues to grow, we expect similar annual increases in earnings from these investments over the next 24 to 36 months. With expectations for strong distributable cash flow and healthy distribution coverage for the foreseeable future, ARLP remains focused on delivering value to our unitholders and is currently targeting annual distribution growth of approximately 4.0% in 2018."

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