NASDAQ Framework: Alliance Resource Partners L.P.
Coal mining and natural resource company 1.
1: Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, it owns and leases oil and gas mineral interests and equity interests; and leases its coal mineral reserves and resources to its mining complexes; and leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software. It also exports its products. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. View Source
Alliance Resource Partners, L.P. (ARLP) is a diversified natural resource company that primarily produces and markets coal to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. ARLP manages seven underground mining complexes across Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia, and also owns and leases oil and gas mineral interests. Additionally, ARLP offers various mining technology products and services, including data network, communication and tracking systems, and mining proximity detection systems. Founded in 1971 and headquartered in Tulsa, Oklahoma, ARLP is recognized as the largest coal producer in the eastern U.S. and has a strong financial profile with significant flexibility in operations 234.
2: Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. It produces a range of thermal and metallurgical coal with sulfur and heat contents. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, it owns and leases oil and gas mineral interests and equity interests; and leases its coal mineral reserves and resources to its mining complexes; and leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software. It also exports its products. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma. View Source3: Alliance Resource Partners LP operates as a coal mining company based in the United States. It has four segments Illinois Basin, Appalachia, Oil & Gas Royalties and Coal Royalties. The Illinois Basin comprises underground mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia. The Appalachia segment comprises the Mettiki mining complex, the Tunnel Ridge mining complex and the MC Mining complex. The Oil & Gas Royalties has oil & gas mineral interests held by AR Midland and AllDale I & II and includes Alliance Minerals' equity interests in both AllDale III and Cavalier Minerals. The Coal Royalties has included coal mineral reserves and resources owned or leased by Alliance Resource Properties. View Source4: Favorable Operating Profile: Fitch believes ARLP is a well-run, mid-sized coal company and the largest coal producer in the eastern U.S. The company's earnings benefit from the high heat quality of its coal, a union free history (no other post-employment benefit liabilities) and the close proximity of operations to its customers and transport hubs. Coal operations are concentrated in underground mining and in ARLP's two largest operations, the River View Complex and the Tunnel Ridge Complex, which accounted for 28% and 22% of 2023 production, respectively. Operations benefit from stable geology, management's strong and lengthy operating track record, and a fair amount of flexibility at most mines, including the River View Complex, given the use of continuous miners.Operating and Financial Flexibility: Fitch expects cash flows to be more than sufficient to support operations and maintain a conservative financial profile. The company has been able and willing to downsize production and dial-back distributions and capex during weak energy prices, thereby allowing debt repayment. The company has also been able to scale-up when markets are strong without deterioration to its capital structure. Modest Financial Leverage: Fitch expects EBITDA leverage to be sustained below 1.0x. EBITDA leverage was 0.4x at Dec. 31, 2023 and has been not been above 1.5x over the past 10 years. Going forward, debt should be $550 million or below and Fitch expects ARLP's annual EBITDA to range between $690 million and $820 million.Coal Vulnerable to Climate Initiatives: Fitch believes steam coal volumes are vulnerable to coal power generation capacity closures but that the company's coal would be favored in remaining dispatch for its high heat and reliability of supply. While we do not expect ARLP's volumes to be constrained in the medium term, the longer-term risk of coal power generation capacity closures is factored into the ratings.Improved Access to Capital: In 2023, Alliance Coal, LLC was able to obtain a four-year $425 million secured revolving credit facility and a $75 million secured term loan albeit with a springing maturity date of January 2025 if the Alliance Resource Operating Partners, L.P. notes are outstanding and Alliance Coal, LLC's liquidity is less than $200 million at that time. In January 2024, the company also upsized its A/R securitization facility to $90 million from $60 million and extended the maturity by one year to January 2025. Fitch notes that there have been few longer-term, fixed rating pubic financings for domestic coal producers over the past five years and that most domestic coal producers have been repaying public debt. Alliance Resource Operating Partners, L.P.'s has about $285 million outstanding under the $400 million senior unsecured note issue due in 2025, and Fitch expects this to be refinanced. Diversifying into Oil: Fitch views ARLP's growing exposure to oil and gas minerals royalties as positive to cash flows. Production of mineral interests aggregated 3.1 million barrels of oil equivalent in 2023. The company has no capital commitments associated with these interests and 2023 segment adjusted EBITDA from oil & gas royalties was $122 million or about 19% of total segment adjusted EBITDA less capex. View Source
UNKNOWN
The provided facts do not contain information about whether the founders of Alliance Resource Partners L.P. are still leading the company or are heavily involved in its operations.
The provided facts do not contain information about whether the founders of Alliance Resource Partners L.P. are still leading the company or are heavily involved in its operations.
LOW RISK
Alliance Resource Partners, L.P. (ARLP) demonstrates a strong financial profile with significant operational flexibility. The company has been able to manage its production and financial commitments effectively, scaling operations up or down based on market conditions without deteriorating its capital structure 5. ARLP's EBITDA leverage has been consistently low, below 1.0x, and the company has maintained a conservative financial profile with sufficient cash flows to support operations and debt repayment 6. Additionally, ARLP has solid liquidity, with $134 million in cash on hand as of March 31, 2024, and access to revolving credit facilities 7. Fitch Ratings has assigned ARLP a 'BB' rating with a stable outlook, reflecting expectations of continued strong performance and manageable leverage 8.
Alliance Resource Partners, L.P. (ARLP) demonstrates a strong financial profile with significant operational flexibility. The company has been able to manage its production and financial commitments effectively, scaling operations up or down based on market conditions without deteriorating its capital structure 5. ARLP's EBITDA leverage has been consistently low, below 1.0x, and the company has maintained a conservative financial profile with sufficient cash flows to support operations and debt repayment 6. Additionally, ARLP has solid liquidity, with $134 million in cash on hand as of March 31, 2024, and access to revolving credit facilities 7. Fitch Ratings has assigned ARLP a 'BB' rating with a stable outlook, reflecting expectations of continued strong performance and manageable leverage 8.
5: Favorable Operating Profile: Fitch believes ARLP is a well-run, mid-sized coal company and the largest coal producer in the eastern U.S. The company's earnings benefit from the high heat quality of its coal, a union free history (no other post-employment benefit liabilities) and the close proximity of operations to its customers and transport hubs. Coal operations are concentrated in underground mining and in ARLP's two largest operations, the River View Complex and the Tunnel Ridge Complex, which accounted for 28% and 22% of 2023 production, respectively. Operations benefit from stable geology, management's strong and lengthy operating track record, and a fair amount of flexibility at most mines, including the River View Complex, given the use of continuous miners.Operating and Financial Flexibility: Fitch expects cash flows to be more than sufficient to support operations and maintain a conservative financial profile. The company has been able and willing to downsize production and dial-back distributions and capex during weak energy prices, thereby allowing debt repayment. The company has also been able to scale-up when markets are strong without deterioration to its capital structure. Modest Financial Leverage: Fitch expects EBITDA leverage to be sustained below 1.0x. EBITDA leverage was 0.4x at Dec. 31, 2023 and has been not been above 1.5x over the past 10 years. Going forward, debt should be $550 million or below and Fitch expects ARLP's annual EBITDA to range between $690 million and $820 million.Coal Vulnerable to Climate Initiatives: Fitch believes steam coal volumes are vulnerable to coal power generation capacity closures but that the company's coal would be favored in remaining dispatch for its high heat and reliability of supply. While we do not expect ARLP's volumes to be constrained in the medium term, the longer-term risk of coal power generation capacity closures is factored into the ratings.Improved Access to Capital: In 2023, Alliance Coal, LLC was able to obtain a four-year $425 million secured revolving credit facility and a $75 million secured term loan albeit with a springing maturity date of January 2025 if the Alliance Resource Operating Partners, L.P. notes are outstanding and Alliance Coal, LLC's liquidity is less than $200 million at that time. In January 2024, the company also upsized its A/R securitization facility to $90 million from $60 million and extended the maturity by one year to January 2025. Fitch notes that there have been few longer-term, fixed rating pubic financings for domestic coal producers over the past five years and that most domestic coal producers have been repaying public debt. Alliance Resource Operating Partners, L.P.'s has about $285 million outstanding under the $400 million senior unsecured note issue due in 2025, and Fitch expects this to be refinanced. Diversifying into Oil: Fitch views ARLP's growing exposure to oil and gas minerals royalties as positive to cash flows. Production of mineral interests aggregated 3.1 million barrels of oil equivalent in 2023. The company has no capital commitments associated with these interests and 2023 segment adjusted EBITDA from oil & gas royalties was $122 million or about 19% of total segment adjusted EBITDA less capex. View Source6: Favorable Operating Profile: Fitch believes ARLP is a well-run, mid-sized coal company and the largest coal producer in the eastern U.S. The company's earnings benefit from the high heat quality of its coal, a union free history (no other post-employment benefit liabilities) and the close proximity of operations to its customers and transport hubs. Coal operations are concentrated in underground mining and in ARLP's two largest operations, the River View Complex and the Tunnel Ridge Complex, which accounted for 28% and 22% of 2023 production, respectively. Operations benefit from stable geology, management's strong and lengthy operating track record, and a fair amount of flexibility at most mines, including the River View Complex, given the use of continuous miners.Operating and Financial Flexibility: Fitch expects cash flows to be more than sufficient to support operations and maintain a conservative financial profile. The company has been able and willing to downsize production and dial-back distributions and capex during weak energy prices, thereby allowing debt repayment. The company has also been able to scale-up when markets are strong without deterioration to its capital structure. Modest Financial Leverage: Fitch expects EBITDA leverage to be sustained below 1.0x. EBITDA leverage was 0.4x at Dec. 31, 2023 and has been not been above 1.5x over the past 10 years. Going forward, debt should be $550 million or below and Fitch expects ARLP's annual EBITDA to range between $690 million and $820 million.Coal Vulnerable to Climate Initiatives: Fitch believes steam coal volumes are vulnerable to coal power generation capacity closures but that the company's coal would be favored in remaining dispatch for its high heat and reliability of supply. While we do not expect ARLP's volumes to be constrained in the medium term, the longer-term risk of coal power generation capacity closures is factored into the ratings.Improved Access to Capital: In 2023, Alliance Coal, LLC was able to obtain a four-year $425 million secured revolving credit facility and a $75 million secured term loan albeit with a springing maturity date of January 2025 if the Alliance Resource Operating Partners, L.P. notes are outstanding and Alliance Coal, LLC's liquidity is less than $200 million at that time. In January 2024, the company also upsized its A/R securitization facility to $90 million from $60 million and extended the maturity by one year to January 2025. Fitch notes that there have been few longer-term, fixed rating pubic financings for domestic coal producers over the past five years and that most domestic coal producers have been repaying public debt. Alliance Resource Operating Partners, L.P.'s has about $285 million outstanding under the $400 million senior unsecured note issue due in 2025, and Fitch expects this to be refinanced. Diversifying into Oil: Fitch views ARLP's growing exposure to oil and gas minerals royalties as positive to cash flows. Production of mineral interests aggregated 3.1 million barrels of oil equivalent in 2023. The company has no capital commitments associated with these interests and 2023 segment adjusted EBITDA from oil & gas royalties was $122 million or about 19% of total segment adjusted EBITDA less capex. View Source7: Solid Liquidity: Cash on hand was $134 million at March 31. 2024. Fitch expects ARLP to generate positive free cash flow on average, but for the $90 million securitization facility (to mature Jan. 10, 2025) and the Alliance Coal, LLC $425 million secured revolving credit facility (to mature March 9, 2027) to be utilized for near-term needs and letters of credit. At March 31, 2024, availability under the revolver was $384 million (LOC $44.1 million) and availability under the A/R securitization was $33 million. If the Alliance Resource Operating Partners, L.P. 2025 notes ($285 million outstanding at March 31, 2024) are still outstanding on Jan. 30, 2025, and Alliance Coal, LLC does not have liquidity of at least $200 million, the revolver and term loan ($56 million outstanding on March 31, 2024) will instead mature on Jan. 30, 2025. Alliance Coal, LLC Credit facility financial covenants include a consolidated debt to consolidated cash flow (substantially debt/EBITDA) maximum of 2.5x, a minimum interest coverage ratio of 3.0x and a CoalCo debt (excludes the Alliance Resource Operating Partners, L.P. notes and any refinancing) to consolidated cash flow maximum of 1.5x. The A/R securitization facility has been annually renewed. View Source8: Fitch Ratings - New York - 15 May 2024: Fitch Ratings has assigned Long-Term Issuer Default Ratings (IDRs) of 'BB' to Alliance Resource Partners, L.P. (ARLP), Alliance Resource Operating Partners, L.P. and Alliance Coal, LLC. The Rating Outlook is Stable. Fitch has also assigned ratings of 'BB+'/'RR2' to Alliance Coal, LLC 's senior secured revolver and term loans and a 'BB'/'RR4' rating' to Alliance Resource Operating Partners, L.P.'s senior unsecured notes due 2025.The ratings and Outlook reflect Fitch's expectation that shipments and pricing will continue to support capex and modest investments in non-coal businesses and that ARLP will manage its EBITDA leverage to be below 1.0x on a sustained basis. Fitch expects cash flows to remain sufficient to allow deleveraging should capital markets access be limited. View Source
NO
The provided facts do not indicate that Alliance Resource Partners L.P. is launching any new product offerings [f44091-f30897]NO
The provided facts do not indicate that Alliance Resource Partners L.P. is launching any new product offerings [f44091-f30897].
The provided facts do not indicate that Alliance Resource Partners L.P. is launching any new product offerings [f44091-f30897]NO
The provided facts do not indicate that Alliance Resource Partners L.P. is launching any new product offerings [f44091-f30897].
Alliance Resource Partners, L.P. (ARLP) is focusing on a strategic expansion and diversification plan for 2024 through 2026. The company aims to sustain its strong financial profile by leveraging its robust coal operations while expanding its presence in the oil and gas sector. ARLP has been diversifying into oil and gas minerals royalties, which is expected to positively impact cash flows. The company has no capital commitments associated with these interests, and the oil and gas segment contributed significantly to the 2023 segment adjusted EBITDA 9. Additionally, ARLP has secured a $425 million revolving credit facility and a $75 million term loan to support its operations and strategic initiatives 10. This financial flexibility will allow ARLP to manage its production levels, debt repayment, and potential new investments effectively, ensuring sustained growth and stability in the coming years.
9: Favorable Operating Profile: Fitch believes ARLP is a well-run, mid-sized coal company and the largest coal producer in the eastern U.S. The company's earnings benefit from the high heat quality of its coal, a union free history (no other post-employment benefit liabilities) and the close proximity of operations to its customers and transport hubs. Coal operations are concentrated in underground mining and in ARLP's two largest operations, the River View Complex and the Tunnel Ridge Complex, which accounted for 28% and 22% of 2023 production, respectively. Operations benefit from stable geology, management's strong and lengthy operating track record, and a fair amount of flexibility at most mines, including the River View Complex, given the use of continuous miners.Operating and Financial Flexibility: Fitch expects cash flows to be more than sufficient to support operations and maintain a conservative financial profile. The company has been able and willing to downsize production and dial-back distributions and capex during weak energy prices, thereby allowing debt repayment. The company has also been able to scale-up when markets are strong without deterioration to its capital structure. Modest Financial Leverage: Fitch expects EBITDA leverage to be sustained below 1.0x. EBITDA leverage was 0.4x at Dec. 31, 2023 and has been not been above 1.5x over the past 10 years. Going forward, debt should be $550 million or below and Fitch expects ARLP's annual EBITDA to range between $690 million and $820 million.Coal Vulnerable to Climate Initiatives: Fitch believes steam coal volumes are vulnerable to coal power generation capacity closures but that the company's coal would be favored in remaining dispatch for its high heat and reliability of supply. While we do not expect ARLP's volumes to be constrained in the medium term, the longer-term risk of coal power generation capacity closures is factored into the ratings.Improved Access to Capital: In 2023, Alliance Coal, LLC was able to obtain a four-year $425 million secured revolving credit facility and a $75 million secured term loan albeit with a springing maturity date of January 2025 if the Alliance Resource Operating Partners, L.P. notes are outstanding and Alliance Coal, LLC's liquidity is less than $200 million at that time. In January 2024, the company also upsized its A/R securitization facility to $90 million from $60 million and extended the maturity by one year to January 2025. Fitch notes that there have been few longer-term, fixed rating pubic financings for domestic coal producers over the past five years and that most domestic coal producers have been repaying public debt. Alliance Resource Operating Partners, L.P.'s has about $285 million outstanding under the $400 million senior unsecured note issue due in 2025, and Fitch expects this to be refinanced. Diversifying into Oil: Fitch views ARLP's growing exposure to oil and gas minerals royalties as positive to cash flows. Production of mineral interests aggregated 3.1 million barrels of oil equivalent in 2023. The company has no capital commitments associated with these interests and 2023 segment adjusted EBITDA from oil & gas royalties was $122 million or about 19% of total segment adjusted EBITDA less capex. View Source10: Solid Liquidity: Cash on hand was $134 million at March 31. 2024. Fitch expects ARLP to generate positive free cash flow on average, but for the $90 million securitization facility (to mature Jan. 10, 2025) and the Alliance Coal, LLC $425 million secured revolving credit facility (to mature March 9, 2027) to be utilized for near-term needs and letters of credit. At March 31, 2024, availability under the revolver was $384 million (LOC $44.1 million) and availability under the A/R securitization was $33 million. If the Alliance Resource Operating Partners, L.P. 2025 notes ($285 million outstanding at March 31, 2024) are still outstanding on Jan. 30, 2025, and Alliance Coal, LLC does not have liquidity of at least $200 million, the revolver and term loan ($56 million outstanding on March 31, 2024) will instead mature on Jan. 30, 2025. Alliance Coal, LLC Credit facility financial covenants include a consolidated debt to consolidated cash flow (substantially debt/EBITDA) maximum of 2.5x, a minimum interest coverage ratio of 3.0x and a CoalCo debt (excludes the Alliance Resource Operating Partners, L.P. notes and any refinancing) to consolidated cash flow maximum of 1.5x. The A/R securitization facility has been annually renewed. View Source