Alliance Resource Partners (NASDAQ: ARLP) reported Q4 EPS of $0.20, in-line with the analyst estimate of $0.20. Revenue for the quarter came in at $453.3 million versus the consensus estimate of $486.5 million.

Commenting on ARLP’s performance for the year, Joseph W. Craft III, Chairman, President and Chief Executive Officer, said, "Following a year where we grew our coal production by 7.1%, delivered record coal sales volumes, improved coal sales price realizations and posted higher year-over-year revenues, net income and EBITDA, we entered 2019 anticipating a continuation of the favorable domestic and international coal market fundamentals that led to our success in 2018. After posting solid results in the first quarter of 2019, recording 15% growth in total revenues over the first quarter of 2018, the international thermal indexes began to move lower. Unfortunately, the price for thermal coal in the international marketplace continued to deteriorate throughout the year, dropping significantly since the beginning of 2019. As a result, export volumes shrank and the industry soon faced a growing oversupply in the domestic market. ARLP proactively responded by modifying our operations to shift production to our lowest-cost mines, reducing total volumes, adjusting our coal sales mix to increase domestic market share in the face of weak export pricing and delivered solid results for the year despite extremely challenging coal market conditions."

Mr. Craft added, "ARLP made tremendous progress in diversifying our business through growth in our oil & gas minerals segment. During 2019, we invested approximately $320.0 million in the segment and transitioned to active participation in the industry with direct ownership of over 55,000 net royalty acres in premier basins. The cash flow generated by these assets has become a meaningful contributor to ARLP’s performance, representing approximately 7.0% of our consolidated Segment Adjusted EBITDA in 2019. With senior leadership recently added, we expect this part of our business will play an even greater role in ARLP’s future performance."

Commenting on the distribution, Mr. Craft continued, "ARLP finished the year with a respectable 1.18 distribution coverage ratio. The partnership remains profitable and continues to generate solid cash flows. As I have advised repeatedly, if our future outlook dictates a change in distributions necessary for ARLP to protect its strong balance sheet to allow us to execute our plans and take advantage of opportunities by preserving liquidity and maintaining access to capital, then our Board will act appropriately. The decision by our Board to reduce ARLP’s unitholder distribution, while difficult, is a significant, proactive step toward achieving these objectives. Assuming ARLP can achieve results this year at the midpoint of our guidance, we would finish 2020 with a 1.27 distribution coverage ratio."

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