Alliance Resource Partners (NASDAQ: ARLP) reported Q3 EPS of $0.55, $0.20 worse than the analyst estimate of $0.75. Revenue for the quarter came in at $497.76 million versus the consensus estimate of $504.98 million.

Market Update and Outlook

"Favorable seaborne thermal coal markets continue to create significant opportunities for ARLP," said Mr. Craft. "Around the world, increased coal-fired power generation, strong power demand and lack of supply response point to sustained global demand for U.S. thermal coal producers. Positive fundamentals in the international metallurgical coal markets also support continued participation by U.S. producers. As mentioned earlier, ARLP has significantly increased its international presence and now expects to export 10.4 million tons of thermal coal in 2018 and has current commitments for 7.7 million tons of thermal coal in 2019. In addition, we currently plan to export approximately 930,000 tons of metallurgical coal in 2018 and have commitments to deliver 100,000 tons of metallurgical coal in 2019. In the U.S. markets served by ARLP, higher natural gas prices, expected weather-related load increases and significantly lower utility inventories continue to support constructive market dynamics. Domestic utilities are actively looking to fill open positions, with several seeking longer-term supply commitments into 2021."

Mr. Craft continued, "ARLP is continuing to respond to strong coal demand in our markets. By bringing Gibson North back into production, increasing mining units at River View and making infrastructure investments to improve productivity at several operations, ARLP expects to increase 2018 coal production by approximately 8.0% over 2017 levels. Production in 2019 will benefit from the full-year impact of these 2018 capital projects leading to increased production in 2019 by 6% to 10% over 2018 levels. ARLP has also secured volume and price commitments for approximately 32.9 million tons, 17.7 million tons and 7.9 million tons in 2019, 2020 and 2021, respectively, some of which is subject to customer requirements."

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