Alliance Resource Partners (NASDAQ: ARLP) reported Q4 EPS of $0.38, $0.39 worse than the analyst estimate of $0.77. Revenue for the quarter came in at $531.84 million versus the consensus estimate of $540.75 million.

Market Update and Outlook

"ARLP anticipates its strong operating and financial performance will continue in 2019," said Mr. Craft. "Current domestic coal market fundamentals are favorable as cold weather across much of the eastern U.S. has increased coal burn and reduced utility stockpiles in ARLP’s markets. Customers in our markets have been actively securing tons and our strategically located, low-cost operations have allowed ARLP to expand its domestic coal contract book. With positive international coal market fundamentals intact, ARLP has already secured commitments to export approximately 8.0 million tons this year. Realizing the full year benefits of the production units added in 2018, ARLP is expecting 2019 coal production and sales volumes to increase by approximately 10.0% each at the midpoint of our 2019 guidance. Increased volumes along with continued strong cost performance by our mines and a stable price environment are expected to drive solid results from ARLP’s coal operations in 2019."

Mr. Craft continued, "We also expect ARLP’s financial results from our oil and gas activities will increase meaningfully in 2019 and the years ahead. With ARLP’s recent mineral interests acquisition, the EBITDA contribution in 2019 from oil and gas royalties is currently estimated in a range of $37.0 to $47.0 million. Strong performance from our coal operations and increasing contributions from ARLP’s oil and gas royalty platform are expected to generate healthy distributable cash flow to support our continuing goal of increasing quarterly distributions for the foreseeable future."

GUIDANCE:

Alliance Resource Partners sees FY2019 revenue of $2.04-2.14 billion, versus the consensus of $2.01 billion.

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