Efforts of the Trump administration to promote coal and other fossil fuel energy in the United States apparently have paid off for Tulsa-based Alliance Resource Partners.
The company, considered one of the largest eastern coal-mining firms, reported third quarter total revenues decreased 6.9% to $571.4 million in the 2025 Quarter, compared to $613.6 million for the 2024 Quarter.
The decline was primarily due to a lower coal sales price per ton, which dropped 7.5%, and reduced transportation revenues.
However, the company’s net income increased by 60.1%, totaling $95.1 million. Adjusted EBITDA reached $185.8 million, an increase of 14.8% compared to last year’s period.
Coal sales increased to 8.7 million tons, while coal production reached 8.4 million tons. For the 2025 Quarter, net income increased 10.2%, to $95.1 million, or 73 cents per basic and diluted limited partner unit, compared to $86.3 million, or 66 cents per basic and diluted limited partner unit for the 2024 Quarter. The increase resulted from lower operating expenses and higher investment income, partially offset by lower revenues.
“Alliance delivered strong operational and financial performance in the third quarter, with results tracking in line with our expectations,” said Joseph W. Craft III, chairman, president and CEO.
“Coal production of 8.4 million tons increased 8.5% year-over-year and 3.8% sequentially, while sales volumes of 8.7 million tons grew approximately 3.9% year-over-year and sequentially,” Craft said. “The significant infrastructure investments we have made over the past three years are beginning to pay off.”
The company moved to take advantage of the PJM grid problems by investing $22.1 million as part of a $25 million commitment in a limited partnership that indirectly acquired a coalfired plant in the grid’s service area.
The PJM electric grid system is the complex machine that makes modern life possible for 65 million people and more than 20% of the nation’s economy. PJM acts as a kind of air traffic control for electricity across 13 states and the District of Columbia. On a moment-by-moment basis, it looks at how much electricity is needed, where it can be produced, and ensures there are enough electrons on the right wires to get where they need to go so the local utility can deliver it to your door.
Craft said the decision positioned Alliance Resource Partners to directly benefit from tightening power markets and growing demand for reliable baseload generation. “This is a near-term, income-producing investment expected to generate attractive cash-on-cash returns in 2026 and beyond,” he said.
“Market signals are validating the need to keep base-load power plants, including coal-fired power plants previously planned for decommissioning, on line to meet anticipated energy demand,” Craft said.
“We expect the operating and financial results for the fourth quarter to equal our outstanding 2025 Quarter results,” he continued. “Therefore, we are tightening our guidance ranges for coal sales volumes and per ton expenses, reflecting steady operational execution and continued cost improvements across our mines.”
In the company’s Oil & Gas Royalties segment, Craft indicated that declining oil prices might affect volumes and oil and gas royalty revenue in the short term, but improved natural gas forward curves will offset the decline.