LPL Financial LLC Sells Shares of Alliance Resource Partners, L.P.
November 22, 2023
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LPL Financial LLC has recently sold off its shares in Alliance Resource Partners ($NASDAQ:ARLP), L.P. (ARLP), a publicly traded master limited partnership that is engaged in the production of coal and related transportation services. ARLP produces low-sulfur coal, which is mined from reserves that are among the most geologically advantaged in the country. Its coal is used by utilities for electricity generation and by industrial customers to produce steel, as well as for other uses.
Additionally, ARLP provides transportation services on the Illinois Central Railroad Company and other railroads serving its mines, as well as freight loading and unloading services. The company sells the majority of its coal from its underground and surface mines to electric utilities and industrial users under long-term or spot-market contracts. ARLP also engages in marketing activities to optimize sales and is involved in transportation business activities, including rail-car leasing and repair services. ARLP’s stock has grown significantly in recent years, providing investors with attractive returns. With this in mind, LPL Financial LLC has decided to divest its stake in the company and capitalize on the gains made thus far. The sale of its shares will provide LPL Financial LLC with increased liquidity that can be used to further expand its business.
Share Price
On Monday, LPL Financial LLC sold shares of Alliance Resource Partners, L.P. (ARLP), a major producer of coal in the United States. Trading opened at $21.7 and closed at $21.5, representing a 0.8% decrease in share price from the previous day’s closing of 21.6. Alliance Resource Partners, L.P. is a diversified energy holding company with focus in coal mining, production and marketing of coal primarily for use in power generation.
The company has coal mining operations across Appalachia, the Illinois Basin, and the Powder River Basin. The company also owns interests in transportation related assets including railroad and river terminals. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ARLP. More…
| Total Revenues | Net Income | Net Margin |
| 2.64k | 739.7 | 27.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ARLP. More…
| Operations | Investing | Financing |
| 978.67 | -600.33 | -459.57 |
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 |
| 2.81k | 961.11 | 14.38 |
Key Ratios Snapshot
Some of the financial key ratios for ARLP are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.1% | 128.2% | 29.7% |
| FCF Margin | ROE | ROA |
| 22.9% | 27.3% | 17.4% |
Analysis
GoodWhale has analyzed the fundamentals of ALLIANCE RESOURCE PARTNERS and our Star Chart showed that it is strong in dividend, growth, and medium in asset, profitability. Furthermore, ALLIANCE RESOURCE PARTNERS has a high health score of 10/10 with regard to its cashflows and debt, indicating that it is capable to sustain future operations in times of crisis. After further analysis, we concluded that ALLIANCE RESOURCE PARTNERS is classified as ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these positives fundamentals, we believe that long-term investors who are seeking steady income from dividends and capital appreciation from growth can benefit from investing in ALLIANCE RESOURCE PARTNERS. In addition, those investors who are looking for stability during times of economic crisis can also look to invest in ALLIANCE RESOURCE PARTNERS due to its high health score. 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, L.P. (ALL) is an attractive investment for those seeking consistent and reliable income. The company’s strong balance sheet and low cost of production makes it an attractive option for investors looking to capitalize on its position in the coal industry. Its diverse portfolio of coal mines across the U.S. gives investors exposure to different regions of the market, while its long-term partnerships with customers provide stability.
Additionally, ALL has a solid history of dividend payments, providing shareholders with a reliable income stream. While the coal market has experienced some volatility in recent years, ALL has remained resilient and is well-positioned to benefit from the potential rebound in demand. As such, investors should consider ALL as a potential opportunity for long-term capital appreciation and income generation.
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