Alliance Resource Partners
Market Cap
US$457.9m
Last Updated
2020/03/30 01:40 UTC
Data Sources
Company Financials +
Executive Summary
Alliance Resource Partners, L.P., a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States.
Rewards
Snowflake Analysis
Similar Companies
Share Price & News
How has Alliance Resource Partners's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ARLP's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.0%
ARLP
17.5%
US Oil and Gas
12.5%
US Market
1 Year Return
-82.2%
ARLP
-57.2%
US Oil and Gas
-12.7%
US Market
Return vs Industry: ARLP underperformed the US Oil and Gas industry which returned -57.2% over the past year.
Return vs Market: ARLP underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| ARLP | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.0% | 17.5% | 12.5% |
| 30 Day | -46.6% | -36.4% | -14.7% |
| 90 Day | -66.7% | -52.2% | -21.5% |
| 1 Year | -79.4%-82.2% | -55.5%-57.2% | -10.9%-12.7% |
| 3 Year | -77.4%-84.1% | -52.3%-56.9% | 12.6%5.4% |
| 5 Year | -81.0%-89.3% | -55.6%-62.5% | 31.9%17.5% |
Price Volatility Vs. Market
How volatile is Alliance Resource Partners's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Could Alliance Resource Partners LP's (NASDAQ:ARLP) Investor Composition Impacts Your Returns?1 year ago | Simply Wall St
Can Alliance Resource Partners LP (NASDAQ:ARLP) Save Your Portfolio?1 year ago | Simply Wall St
Should You Expect Alliance Resource Partners LP (NASDAQ:ARLP) To Continue Delivering An ROE Of 28.62%?Valuation
Is Alliance Resource Partners undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ARLP ($3.6) is trading below our estimate of fair value ($24.24)
Significantly Below Fair Value: ARLP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ARLP is good value based on its PE Ratio (1.2x) compared to the Oil and Gas industry average (6.7x).
PE vs Market: ARLP is good value based on its PE Ratio (1.2x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: ARLP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: ARLP is good value based on its PB Ratio (0.4x) compared to the US Oil and Gas industry average (0.5x).
Future Growth
How is Alliance Resource Partners forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
-37.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARLP's earnings are forecast to decline over the next 3 years (-37.3% per year).
Earnings vs Market: ARLP's earnings are forecast to decline over the next 3 years (-37.3% per year).
High Growth Earnings: ARLP's earnings are forecast to decline over the next 3 years.
Revenue vs Market: ARLP's revenue is expected to decline over the next 3 years (-1.7% per year).
High Growth Revenue: ARLP's revenue is forecast to decline over the next 3 years (-1.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ARLP's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Alliance Resource Partners performed over the past 5 years?
13.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARLP has a large one-off gain of $161.9M impacting its December 31 2019 financial results.
Growing Profit Margin: ARLP's current net profit margins (20%) are higher than last year (17.9%).
Past Earnings Growth Analysis
Earnings Trend: ARLP's earnings have grown by 13.7% per year over the past 5 years.
Accelerating Growth: ARLP's earnings growth over the past year (9.7%) is below its 5-year average (13.7% per year).
Earnings vs Industry: ARLP earnings growth over the past year (9.7%) exceeded the Oil and Gas industry -11.4%.
Return on Equity
High ROE: ARLP's Return on Equity (32.2%) is considered high.
Financial Health
How is Alliance Resource Partners's financial position?
Financial Position Analysis
Short Term Liabilities: ARLP's short term assets ($319.6M) exceed its short term liabilities ($195.6M).
Long Term Liabilities: ARLP's short term assets ($319.6M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: ARLP's debt to equity ratio (57%) is considered high.
Reducing Debt: ARLP's debt to equity ratio has reduced from 80.9% to 57% over the past 5 years.
Debt Coverage: ARLP's debt is well covered by operating cash flow (71.4%).
Interest Coverage: ARLP's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Inventory Level: ARLP has a high level of physical assets or inventory.
Debt Coverage by Assets: ARLP's debt is not covered by short term assets (assets are 0.4x debt).
Dividend
What is Alliance Resource Partners's current dividend yield, its reliability and sustainability?
44.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ARLP's dividend (44.44%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: ARLP's dividend (44.44%) is in the top 25% of dividend payers in the US market (5.49%)
Stability and Growth of Payments
Stable Dividend: ARLP's dividend payments have been volatile in the past 10 years.
Growing Dividend: ARLP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (65.7%), ARLP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ARLP's dividends in 3 years are not forecast to be well covered by earnings (121.7% payout ratio).
Management
How experienced are the management team and are they aligned to shareholders interests?
11.0yrs
Average management tenure
CEO
Joe Craft (68yo)
20.58s
Tenure
US$12,963
Compensation
Mr. Joseph W. Craft, III, also known as Joe has the been the President and Chief Executive Officer of Alliance Resource Management GP LLC, Managing General Partner at Alliance Resource Partners L.P. since ...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD12.96K) is below average for companies of similar size in the US market ($USD2.17M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 20.58yrs | US$12.96k | 15.31% $70.1m | |
| Senior VP & CFO of Alliance Resource Management GP | 16.42yrs | US$1.11m | 0.15% $681.6k | |
| Senior VP & COO of Alliance Resource Management GP | 11yrs | US$1.53m | 0.89% $4.1m | |
| Senior VP | 13yrs | US$1.38m | 0.11% $504.5k | |
| Senior VP & Chief Strategic Officer of Alliance Resource Management GP | 0.25yr | US$1.67m | no data | |
| VP, Controller & Chief Accounting Officer of Alliance Resource Management GP | 1yr | no data | 0.046% $212.7k | |
| VP of Corporate Finance & Treasurer | no data | no data | no data | |
| Vice President of Public Affairs - Alliance Resource Management GP LLC | 2.75yrs | no data | no data | |
| Executive VP & Director of Alliance Resource Management GP | 11.17yrs | US$25.00k | 1.88% $8.6m | |
| Executive Vice President of Alliance Resource Management GP | 19.58yrs | US$1.22m | 0.16% $733.5k |
11.0yrs
Average Tenure
61.5yo
Average Age
Experienced Management: ARLP's management team is seasoned and experienced (11 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 20.58yrs | US$12.96k | 15.31% $70.1m | |
| Executive VP & Director of Alliance Resource Management GP | 11.17yrs | US$25.00k | 1.88% $8.6m | |
| Independent Director of Alliance Resource Management GP | 1.17yrs | US$187.58k | 0.020% $92.3k | |
| Independent Director of Alliance Resource Management GP | 20.25yrs | US$176.00k | 0.015% $66.4k | |
| Independent Director of Alliance Resource Management GP | 4.92yrs | US$166.00k | 0.016% $72.0k | |
| Independent Director of Alliance Resource Management GP | 13.17yrs | US$213.03k | 0.032% $145.4k |
8.0yrs
Average Tenure
69.5yo
Average Age
Experienced Board: ARLP's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Alliance Resource Partners, L.P.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Alliance Resource Partners, L.P.
- Ticker: ARLP
- Exchange: NasdaqGS
- Founded: 1971
- Industry: Coal and Consumable Fuels
- Sector: Energy
- Market Cap: US$457.903m
- Shares outstanding: 127.20m
- Website: https://www.arlp.com
Number of Employees
Location
- Alliance Resource Partners, L.P.
- 1717 South Boulder Avenue
- Suite 400
- Tulsa
- Oklahoma
- 74119
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ARLP | NasdaqGS (Nasdaq Global Select) | Yes | Common Units | US | USD | Aug 1999 |
| AR6 | DB (Deutsche Boerse AG) | Yes | Common Units | DE | EUR | Aug 1999 |
Biography
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 three segments: Illinois Basin, Appalachia, and Minerals. 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, and West Virginia. It also leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns interests in various oil and gas mineral interests located within producing basins in the continental United States. In addition, the company offers various industrial and mining technology products and services, such as miner and equipment tracking systems, and proximity detection systems. As of December 31, 2019, it had approximately 1.69 billion tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC serves as the general partner of the company. The company was founded in 1971 and is headquartered in Tulsa, Oklahoma.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 01:40 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.