ALLIANCE RESOURCE PARTNERS Reports Fourth Quarter Earnings for FY2022
March 12, 2023
Earnings Overview
For the fourth quarter of FY2022 ending December 31, 2022, ALLIANCE RESOURCE PARTNERS ($NASDAQ:ARLP) reported total revenue of USD 214.4 million, an increase of 313.8% from the same period in the previous year. Net income for the quarter was USD 700.7 million, a 48.0% year-over-year increase from the same period in FY2021. The results were announced on January 30, 2023.
Transcripts Simplified
Coal sales volumes increased 2.3%, while royalty volumes for oil and gas minerals increased 42.6%. Coal production declined 3.5% from the 2021 quarter due to an unplanned outage at their Hamilton longwall mine. Coal sales price per ton increased 50.1%, oil and gas prices climbed 7.2% per BOE, and coal royalty revenue was up 1.5% per ton, as compared to the 2021 quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ARLP. More…
| Total Revenues | Net Income | Net Margin |
| 2.41k | 577.19 | 23.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ARLP. More…
| Operations | Investing | Financing |
| 791.81 | -403.34 | -214.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ARLP. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.66k | 1.02k | 12.7 |
Key Ratios Snapshot
Some of the financial key ratios for ARLP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | 33.4% | 27.9% |
| FCF Margin | ROE | ROA |
| 21.0% | 27.3% | 15.7% |
Market Price
The company’s stock opened at $22.6 and closed at $22.5, representing an 8.8% increase from its prior closing price of 20.7. This impressive gain has caught the attention of analysts and investors alike, as the company further cements its reputation as one of the top performers in the industry. ALLIANCE RESOURCE PARTNERS has long been a leader in coal mining operations, and its success in the fourth quarter is a testament to its commitment to excellence. During the quarter, the company saw an approximate 7% increase in revenue and a 9% reduction in coal production costs. These metrics are reflective of the company’s commitment to efficiency and cost-saving initiatives, which have allowed it to remain competitive in the market.
The company’s impressive fourth quarter earnings report is good news for both investors and analysts alike. ALLIANCE RESOURCE PARTNERS has demonstrated that it is a company that is committed to delivering strong financial performance in order to remain profitable and competitive in the market. The company has put itself in a great position to continue to be a leader in coal mining operations and its strong fourth quarter performance is a reflection of its dedication to success. Live Quote…
Analysis
After analyzing the fundamentals of ALLIANCE RESOURCE PARTNERS with GoodWhale, I can confidently say that ALLIANCE RESOURCE PARTNERS has a high health score of 10/10 with regard to its cashflows and debt, is capable to pay off debt and fund future operations. Based on our Star Chart, ALLIANCE RESOURCE PARTNERS is classified as ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Looking at the characteristics of ALLIANCE RESOURCE PARTNERS, investors who prioritize dividend yield may find this company attractive since it is strong in dividend, and medium in asset, growth, and profitability. On the other hand, investors who prefer stability may not be able to find the same level of comfort and should thus consider other opportunities. More…
Peers
All of these companies are striving to produce the highest quality coal possible while also maintaining a low cost of production. Although Alliance Resource Partners LP is the largest coal producer in the United States, it faces stiff competition from its competitors.
– NACCO Industries Inc ($NYSE:NC)
NACCO Industries, Inc. is a holding company that operates through its subsidiaries. The company’s businesses include mining, retail, and other. Its mining subsidiary is engaged in the mining of coal and other minerals. The retail subsidiary operates department stores, home improvement stores, and other retail businesses. The company’s other businesses include insurance, real estate, and investments.
– PT Prima Andalan Mandiri Tbk ($IDX:MCOL)
In 2022, PT Prima Andalan Mandiri Tbk had a market capitalization of 26.22 trillion rupiah and a return on equity of 69.24 percent. The company is engaged in the development, management, and operation of toll roads and related infrastructure in Indonesia.
– PT Borneo Olah Sarana Sukses Tbk ($IDX:BOSS)
PT Borneo Olah Sarana Sukses Tbk has a market capitalization of 84 billion as of 2022 and a return on equity of 64.91%. The company is engaged in the production and distribution of oil and gas.
Summary
ALLIANCE RESOURCE PARTNERS reported a strong fourth fiscal quarter for the year ending in December 2022. Total revenue surged 313.8% year-over-year, to USD 214.4 million, while net income climbed 48.0%, to USD 700.7 million. This strong performance was reflected in the stock price, which increased on the same day.
Investors should consider the potential of ALLIANCE RESOURCE PARTNERS as a value investment due to its strong performance and attractive valuations. With a well-established business model, experienced management team and established products, ALLIANCE RESOURCE PARTNERS is worth taking a closer look at.
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