Alliance Resource Partners (NASDAQ: ARLP) reported Q1 EPS of $1.16, versus $0.56 reported last year. Revenue for the quarter came in at $457.12 million versus the consensus estimate of $458.23 million.

Market Update and Outlook

"During the 2018 Quarter, ARLP reached agreement to deliver up to 19.7 million tons in 2018 through 2022, including an additional 4.8 million tons for delivery this year," said Mr. Craft. "As expected, ARLP continued to increase its participation in the international coal markets having now booked commitments to export 6.8 million tons of thermal coal and 490,000 tons of metallurgical coal in 2018. Fundamentals in the international markets remain constructive for U.S. producers and should present ARLP with additional export opportunities through 2019. Domestic utility stockpiles in our markets are currently below five-year averages, which we believe will lead to increased buying activity for the balance of 2018. With these expectations supporting improved distributable cash flow and strong distribution coverage, our targeted distribution growth of 4.0% in 2018 remains intact. Longer term, we believe the strength of ARLP’s market presence, strategically-located, low-cost coal operations and increasing contributions from investments outside of coal should allow us to deliver strong results and value to our unitholders in the future."

ARLP has secured volume and price commitments for approximately 38.0 million tons in 2018 and for approximately 17.5 million tons, 11.7 million tons and 4.8 million tons in 2019, 2020 and 2021, respectively, some of which is subject to customer requirements.

Based on results to date and expectations for the balance of the year, ARLP is increasing its guidance for 2018 full-year results to the following ranges: coal production of 40.0 million to 41.0 million tons, coal sales volumes of 40.3 million to 41.3 million tons, revenues (excluding transportation revenues) of $1.87 billion to $1.91 billion, net income of $405.0 million to $425.0 million and EBITDA of $710.0 million to $730.0 million. These 2018 estimates for net income and EBITDA include the settlement gain recorded in the 2018 Quarter and reflect an expected full year contribution of approximately $25.0 million to $35.0 million related to our investments in oil and gas minerals and gas compression services.

ARLP is also updating per ton estimates for 2018 compared to 2017. For the full-year 2018, excluding the settlement gain recorded in the 2018 Quarter, we currently anticipate coal sales price per ton to be slightly higher, Segment Adjusted EBITDA Expense per ton to be 1.0% to 2.0% higher and Segment Adjusted EBITDA per ton to be 3.0% to 4.0% lower, each compared to our full-year results in 2017.

ARLP is maintaining its previous 2018 guidance for capital expenditures in a range of $220.0 million to $240.0 million and investments related to the acquisition of oil and gas mineral interests of approximately $30.0 million.

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