ARLP

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance growth was driven by higher coal sales volumes, record Oil & Gas Royalties revenue, and improved coal operating cost performance across key mines. Coal operating expenses improved 6.3% year-over-year, reflecting the realization of significant long-term capital investments aimed at ensuring efficient, low-cost production. The Appalachia segment saw a 29.7% year-over-year improvement in EBITDA expense per ton due to high productivity and improved recovery yields at the Tunnel Ridge mine. Management attributes the record Oil & Gas Royalties performance to a 22.7% year-over-year increase in average realized sales prices per BOE. The partnership utilized its strong contracted sales book to mitigate the impact of lower domestic coal demand caused by mild weather and low natural gas prices in early 2026. Strategic positioning in the Illinois Basin was bolstered by the River View complex, which exceeded internal production targets and offset planned longwall move downtime at Hamilton. Management expects coal production and cash flow to increase meaningfully in the second half of 2026 as no further longwall moves are scheduled until 2027. The AllDale III and IV acquisition is projected to be immediately accretive, estimated to increase distributable cash flow per unit by 8% to 9% in 2027. Guidance for 2026 coal sales remains balanced, with upside potential dependent on summer burn activity and the pace of utility inventory draws. The partnership has secured 29.4 million tons of coal commitments for 2027, reflecting high customer confidence in ARLP's reliability as a dispatchable fuel provider. Future capital allocation will prioritize reducing leverage and maintaining financial flexibility while evaluating disciplined 'ground game' mineral acquisitions. Completed the $206.2 million AllDale III and IV acquisition on July 1, 2026, expanding the partnership's footprint into the Permian and Haynesville basins. The acquisition structure involved Craft-related parties to maintain a disciplined investment level for ARLP while achieving full-scale growth and preserving liquidity. Management highlighted the PJM capacity auction results as evidence of structural tightness in power markets, reinforcing the long-term value of coal-fired generation. A $6.3 million non-cash decrease in the fair value of Bitcoin holdings impacted net income by $0.05 per unit during the quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects a volume pickup in the second half to approximately 9 million tons per quarter to reach the midpoint of guidance. The Hamilton mine is expected to double its production in Q3 compared to Q2, which will drive unit costs lower in the Illinois Basin. Realized prices are expected to remain stable for the remainder of the year, comparable to Q2 levels, despite the roll-off of some legacy contracts. New domestic contracts are being priced in the mid-50s for the Illinois Basin and mid-60s for Northern Appalachia, factoring in inflation. Management anticipates a 1 million to 1.3 million ton volume increase in 2027 as data centers drive a projected 3% annual increase in electric generation. Existing coal fleets are viewed as underutilized resources that can meet immediate data center power needs more cost-effectively than building new infrastructure.

Interested in Alliance Resource Partners, L.P.? Here are five stocks we like better. Strong second-quarter performance: Net income rose 33.9% year over year to $79.6 million, while revenue increased to $551.6 million and adjusted EBITDA grew 14.7% to $185.7 million. Higher coal volumes, lower costs, record oil and gas royalty results, and stronger investment income offset weaker coal pricing. Coal outlook remains intact: ARLP maintained its 2026 guidance and added 21.2 million tons of new sales commitments. Management expects Hamilton’s return to full operations to support higher second-half production and potentially add 1 million to 1.3 million tons of sales in 2027. Royalty expansion boosts future cash flow: Record oil and gas royalty results continued, and the $206.2 million AllDale Minerals acquisition is expected to be immediately accretive, increasing distributable cash flow per unit by an estimated 8% to 9% next year. 3 Stocks Using Bitcoin to Grow Their Treasury Reserves Alliance Resource Partners (NASDAQ:ARLP) reported higher second-quarter results as increased coal sales volumes, lower operating costs, record oil and gas royalty performance and stronger equity-method investment income offset lower average coal pricing. Net income attributable to ARLP rose 33.9% from a year earlier to $79.6 million, or $0.61 per basic and diluted limited partner unit. Revenue increased to $551.6 million, while adjusted EBITDA rose 14.7% to $185.7 million. Compared with the first quarter, revenue increased 6.9%, net income increased by $70.5 million, and adjusted EBITDA climbed 19.8%. → MarketBeat Week in Review – 07/20- 07/24 Peabody Energy is a Double Threat Energy and Steel Play Chief Financial Officer Cary Marshall said comparisons in net income also reflected impairment charges recorded in prior periods. The partnership generated $108.2 million in distributable cash flow during the quarter and reported distribution coverage of 1.39 times, up 39% sequentially. Total coal sales reached 8.6 million tons, up 2.1% from the prior-year quarter and 8.9% from the first quarter. Production totaled 8.2 million tons, an increase of 1.5% year over year and 3% sequentially. Coal operations adjusted EBITDA increased 6.9% from a year earlier to $151.7 million. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 3 High-Yield Energy MLPs: A Stable Way to Invest in Energy Average coal sales price declined 5.3% year over year to $54.87 per ton, reflecting the anticipated expiration of higher-priced legacy contracts at the Tunnel Ridge mine and a lower share of Mettiki sales in Appalachia. However, adjusted EBITDA expense per ton improved 6.3% to $38.68. Marshall attributed the cost performance to investments made across the company’s mines in recent years. “This cost improvement was a key contributor to the quarter’s stronger coal operating results,” he said. Illinois Basin: Sales volumes were 6.4 million tons, down 4.5% year over year but up 4.9% sequentially. Riverview productivity helped offset lower shipments from Hamilton during a planned extended longwall move. Average sales price was $51.87 per ton, while adjusted EBITDA expense was $35.99 per ton. Appalachia: Sales volumes increased 27.6% from a year earlier to 2.2 million tons, led by higher production at Tunnel Ridge. Average sales price declined to $63.57 per ton, but adjusted EBITDA expense per ton fell 29.7% year over year to $46.22 as productivity and recoveries improved at Tunnel Ridge. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Coal inventory ended the quarter at 0.8 million tons, down 0.3 million tons from both a year earlier and the first quarter. During the question-and-answer session, Chairman, President and Chief Executive Officer Joe Craft said the partnership generally targets inventories in a range of roughly 0.5 million to 0.75 million tons and does not prefer inventories above 1 million tons. ARLP maintained its 2026 guidance for coal sales of 33.75 million to 35.25 million tons, average sales pricing of $54 to $56 per ton, and adjusted EBITDA expense of $37 to $39 per ton. Management said the outlook remains dependent on summer electricity demand and the pace of utility inventory drawdowns. Craft said the partnership’s contracted sales book limited the impact of mild weather and lower natural gas prices on domestic coal demand during the first half. ARLP is essentially fully committed and priced at the midpoint of its 2026 guidance, according to management. The partnership secured 21.2 million tons of new sales commitments during the quarter, including 18.5 million tons of domestic commitments spread across the next five years and 2.7 million tons of export commitments for delivery from 2026 through 2028. ARLP has 29.4 million tons committed and priced for 2027 delivery. Craft said no additional longwall moves are expected in the second half of 2026, positioning the company for higher production and cash flow. Hamilton resumed longwall operations in mid-May, and management expects its production in the third quarter to approximately double from the second-quarter level. Marshall said the company sold roughly 16.5 million tons in the first half and expects approximately 18 million tons of sales in the second half to reach the midpoint of guidance, with about 9 million tons in each remaining quarter. For 2027, Craft said ARLP could produce and sell roughly 1 million to 1.3 million more tons than in 2026 if operations and markets develop as planned, driven primarily by Hamilton operating at its second-half 2026 run rate for a full year. Total royalty revenue was $69.3 million and royalty-segment adjusted EBITDA was $51 million. The oil and gas royalty business posted record quarterly revenue of $46.5 million, up 31.1% from a year earlier, and record adjusted EBITDA of $38 million, up 27.2%. Oil and gas royalty volumes totaled 936,000 barrels of oil equivalent, up 6.4% year over year but down 8.4% sequentially. Higher realized pricing drove the improvement, with average realized sales price per BOE increasing 22.7% from a year earlier and 22.1% from the first quarter. On July 1, subsequent to quarter-end, ARLP completed its acquisition of interests in AllDale Minerals III and AllDale Minerals IV for $206.2 million, subject to customary post-closing adjustments. The transaction implied a gross valuation of $410 million for the funds. Following the closing, ARLP owns and controls 100% of the noneconomic general partner interest and holds an approximate 61% economic interest across the funds. The acquisition was funded through cash, revolving-credit borrowings and a new $150 million term loan at Alliance Minerals LLC. Craft-related parties separately acquired $100 million of AllDale III limited partner interests, while ARLP said it did not acquire any interests from those parties. The transaction was reviewed and approved by the partnership’s independent conflicts committee. Craft said the transaction raises ARLP’s cumulative investment in oil and gas royalties above $1 billion and is expected to be immediately accretive to free cash flow per unit. Management estimates the acquisition will increase distributable cash flow per unit by 8% to 9% next year. As of June 30, ARLP had $590.2 million in total debt and finance leases and $111.2 million of cash. The partnership had total liquidity of $424 million, including $312.8 million available under revolving credit facilities. Total and net leverage were 0.82 times and 0.67 times trailing-12-month adjusted EBITDA, respectively. ARLP also held 646 Bitcoin valued at $37.8 million as of June 30, based on a price of $58,559 per coin. The value was down 14.1% sequentially, producing a $6.3 million decline in the fair value of digital assets and a $0.05-per-unit impact during the quarter. Management said it plans to prioritize leverage reduction and financial flexibility while continuing to review disciplined minerals acquisitions. Craft said the company also expects to continue investing in its coal operations and evaluate growth opportunities, including additional oil and gas royalty investments and potential investments related to power generation. Alliance Resource Partners, L.P. (NASDAQ: ARLP) is a Tulsa, Oklahoma–based master limited partnership engaged in the production, marketing and transportation of bituminous coal. Through its subsidiaries, the company develops, owns and operates surface and underground coal mines, providing fuel primarily for electric power generation and various industrial applications. Alliance's integrated business model covers the extraction of raw coal, processing at preparation plants and delivery to domestic and export customers. The partnership operates multiple mining complexes across Illinois, Indiana, Kentucky and West Virginia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Alliance Resource Partners Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Total Revenue: $551.6 million, increased year-over-year and sequentially. Net Income: $79.6 million, up 33.9% year-over-year. Adjusted EBITDA: $185.7 million, up 14.7% year-over-year. Coal Sales Volumes: 8.6 million tons, up 2.1% year-over-year. Average Coal Sales Price per Ton: $54.87, down 5.3% year-over-year. Segment Adjusted EBITDA from Coal Operations: $151.7 million, up 6.9% year-over-year. Oil & Gas Royalties Revenue: $46.5 million, up 31.1% year-over-year. Oil & Gas Royalties Segment Adjusted EBITDA: $38 million, up 27.2% year-over-year. Total Debt and Finance Leases: $590.2 million as of June 30, 2026. Cash: $111.2 million as of June 30, 2026. Total Liquidity: $424 million, including $312.8 million available under revolving credit facilities. Distributable Cash Flow: $108.2 million, with a distribution coverage ratio of 1.39 times. Bitcoin Holdings: 646 bitcoins valued at $37.8 million. Warning! GuruFocus has detected 5 Warning Sign with ARLP. Is ARLP fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alliance Resource Partners LP (NASDAQ:ARLP) reported a 33.9% increase in net income year-over-year, reaching $79.6 million. The company achieved record results in its Oil & Gas Royalties segment, with revenues up 31.1% year-over-year. Coal sales volumes increased by 2.1% year-over-year and 8.9% sequentially, indicating strong demand. The company successfully closed the AllDale III & IV acquisition, enhancing its Oil & Gas Royalties segment. ARLP has strong liquidity, ending the quarter with $424 million, including $312.8 million available under revolving credit facilities. The average coal sales price per ton decreased by 5.3% year-over-year, reflecting the roll-off of higher-priced legacy contracts. Coal sales volumes in the Illinois Basin were down 4.5% year-over-year. The fair value of digital assets decreased by $6.3 million due to a decline in bitcoin prices. Total debt and finance leases outstanding increased to $590.2 million. The company faces uncertainties related to future coal demand, influenced by factors such as weather and natural gas prices. Q: How is Alliance Resource Partners approaching capital allocation for the remainder of 2026, especially after the recent Oil & Gas Royalties acquisition? A: Joseph Craft, Chairman, President, and CEO, stated that in addition to the recent acquisition, they invested $16 million in oil and gas reserves during the quarter. They plan to continue similar acquisitions and are also considering small investments in coal reserves. The company is focused on meeting goals and objectives, including potential investments in the Gavin power plant, and is optimistic about opportunities arising from growing energy demand due to data center investments. Q: What is the expected volume cadence for the second half of 2026, considering no major longwall moves are planned? A: Joseph Craft mentioned that with Hamilton starting up mid-May, production is expected to double in the third quarter compared to the second quarter, driving costs lower for the Illinois Basin. Cary Marshall, CFO, added that they expect a pickup in sales to reach the midpoint of guidance, with approximately 9 million tons each in the third and fourth quarters. Q: How should we think about realized price per ton for the Appalachia segment in the second half of 2026? A: Joseph Craft indicated that pricing for both the Illinois Basin and Appalachian Basin is expected to remain stable and consistent with second-quarter revenues on a per ton basis, depending on the timing of shipments. Q: What are utilities indicating about their expected coal burn over the next several years, and what are your expectations for 2027 versus 2026? A: Joseph Craft expects an increase in production by 1 to 1.3 million tons in 2027, with Hamilton running at a higher rate. He believes demand will be available, driven by data centers coming online, and expects coal plants in PJM to be called upon to meet demand. Q: How should investors think about the balance between debt reduction, additional royalty acquisitions, unit distributions, and potential unit repurchases over the next 12 to 24 months? A: Joseph Craft emphasized maintaining growth in the Oil & Gas Royalties segment and investing in coal operations. The company aims to reward unitholders with attractive after-tax returns and sees opportunities for natural gas prices to rise with LNG terminals coming online, benefiting both oil and gas minerals and coal industry positions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Alliance Resource Partners (ARLP) drew fresh investor attention after approving a quarterly cash distribution of $0.60 per unit, released alongside its second quarter 2026 results and updated full year sales guidance. See our latest analysis for Alliance Resource Partners. Against this backdrop, Alliance Resource Partners’ recent 1-day share price return of 3.72% and 7-day share price return of 5.30% suggest short term momentum building around its earnings, guidance and distribution update. A 5-year total shareholder return above 4x shows how long term holders have been rewarded despite periods of weaker recent performance. If this earnings driven move has you scanning for other opportunities, it could be worth seeing what stands out in the 33 elite gold producer stocks After Alliance Resource Partners’ latest jump, the unit price now sits between a quarterly distribution that screens as generous and a recent earnings record that is already in the price. How much upside do you still realistically have from here? On the numbers provided, Alliance Resource Partners looks cheap on earnings, with a P/E of 12.5x while still carrying a 1-year total return of 2.57% and a 5-year total return above 4x. The P/E ratio compares the current unit price of $25.63 to the partnership’s earnings per unit, so it effectively shows how many dollars investors are paying today for each dollar of current profit. For a coal producer with additional royalty and oil and gas exposure, this is a straightforward way to see how the market is pricing its earnings power. In this context, the picture points to compression rather than optimism. Alliance Resource Partners is described as trading at good value compared to peers and the broader US Oil and Gas industry, with its 12.5x P/E sitting below both the industry average of 14.3x and a peer average of 21.8x. It is also below an estimated fair P/E of 16.8x that our fair ratio work suggests the market could reasonably move toward if sentiment and earnings expectations stayed aligned with those comparisons. In other words, the current earnings multiple is materially lower than what similar companies and the fair ratio indicate. This supports the view that investors are paying less per dollar of profit than those benchmarks imply. Explore the SWS fair ratio for Alliance Resource Partners Result: Price-to-Earnings of 12.5x (UNDERVALUED) However, the story around Alliance Resource Partners could shift quickly if coal demand weakens or if commodity price movements pressure its current $2,174.457m revenue and $263.451m net income base. Find out about the key risks to this Alliance Resource Partners narrative. While the P/E of 12.5x makes Alliance Resource Partners look inexpensive next to peers, the SWS DCF model points to a much deeper gap. On these inputs, ARLP at $25.63 is compared with an estimated future cash flow value of $97.96, which screens as significantly undervalued. If earnings based metrics suggest modest mispricing but the cash flow work points to a far larger gap, it raises a practical question for you as an investor: which signal should carry more weight when the market eventually decides what ARLP is worth? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Alliance Resource Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. If this mix of signals around Alliance Resource Partners leaves you unsure, act while the facts are fresh and test the thesis yourself. Weigh both the upside potential and the issues that could hold it back using the 5 key rewards and 1 important warning sign Do not stop with Alliance Resource Partners when there are other stocks that could fit your goals. Put a few minutes into scanning fresh ideas with the Simply Wall St screener. Target potential value opportunities by reviewing companies that look mispriced on quality and fundamentals using the 51 high quality undervalued stocks. Strengthen your income focus by checking out companies with substantial yields and resilient payouts via the 8 dividend fortresses. Prioritise resilience by searching for companies that score well on financial stability through the 84 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ARLP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Alliance Resource Partners, L.P. (NASDAQ:ARLP) reported mixed second-quarter results on Monday, delivering revenue above Wall Street expectations while earnings came in slightly below forecasts. Shares of the coal producer and energy royalty company edged 0.16% higher in pre-market trading following the earnings release. Adjusted earnings per unit came in at $0.61, falling short of analysts’ consensus estimate of $0.63. Revenue, however, increased to $551.6 million, exceeding expectations of $545.89 million and rising 0.7% from $547.5 million in the same quarter last year. Net income attributable to Alliance Resource Partners climbed 33.9% year over year to $79.6 million, supported by higher revenue and increased income from equity method investments. Adjusted EBITDA rose 14.7% to $185.7 million, compared with $161.9 million in the second quarter of 2025, reflecting improved operational performance across the business. The partnership also reported stronger coal demand during the quarter, with coal sales volumes increasing 2.1% year over year to 8.6 million tons. Meanwhile, its Oil & Gas Royalties business delivered record quarterly revenue of $46.3 million, representing a 30.5% increase from the prior-year period. “Our coal operations performed well during the quarter, highlighted by strong productivity and disciplined cost control,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer. “River View and Tunnel Ridge generated superior operating results, driving Segment Adjusted EBITDA expense per ton sold lower by 6.3% YoY and 6.6% sequentially.” Alliance Resource Partners declared a quarterly cash distribution of $0.60 per unit, equivalent to an annualized payout of $2.40 per unit. The distribution will be paid on August 14, 2026. The partnership’s Distribution Coverage Ratio improved to 1.39x during the quarter, increasing 39% from the previous quarter. Looking ahead, the company updated its full-year 2026 outlook following the completion of its $206.2 million acquisition of oil and gas mineral interests on July 1. Alliance Resource Partners now expects annual coal sales of between 33.75 million and 35.25 million tons, with an average realized coal sales price of $54.00 to $56.00 per ton. The company also forecast Oil & Gas Royalties production of 1.95 million to 2.05 million barrels of oil, 10.0 billion to 10.5 billion cubic feet of natural gas, and 1.1 million to 1.2 million barrels of natural gas liquids for the full year. Alliance Resource Partners stock price

2026 Quarter Highlights Total revenue of $551.6 million, net income of $79.6 million, and Adjusted EBITDA of $185.7 million, up year-over-year 0.7%, 33.9% and 14.7%, respectively Record oil & gas royalty revenues of $46.3 million, up 30.5% year-over-year Secured 21.2 million additional committed and priced sales tons over the 2026 – 2031 time period Distributable Cash Flow of $108.2 million and Distribution Coverage Ratio of 1.39x both improved by 39.0% sequentially Declares quarterly cash distribution of $0.60 per unit, or $2.40 per unit annualized On July 1, 2026, completed our $206.2 million acquisition of oil & gas mineral interests, adding 48,500 net royalty acres to the Oil & Gas Royalties segment TULSA, Okla., July 27, 2026--(BUSINESS WIRE)--Alliance Resource Partners, L.P. (NASDAQ: ARLP) ("we," "us," "our," "ARLP" or the "Partnership") today reported financial and operating results for the three and six months ended June 30, 2026 (the "2026 Quarter" and "2026 Period," respectively). This release includes comparisons of results to the three and six months ended June 30, 2025 (the "2025 Quarter" and "2025 Period," respectively) and to the quarter ended March 31, 2026 (the "Sequential Quarter"). All references in the text of this release to "net income" refer to "net income attributable to ARLP." For a definition of Distributable Cash Flow, Distribution Coverage Ratio, EBITDA, Adjusted EBITDA and Segment Adjusted EBITDA Expense and related reconciliations to comparable GAAP financial measures, please see the end of this release. For the 2026 Quarter, net income increased 33.9% to $79.6 million, or $0.61 per basic and diluted limited partner unit, compared to $59.4 million, or $0.46 per basic and diluted limited partner unit for the 2025 Quarter primarily as a result of higher total revenues and equity method investment income, and the impact of an impairment loss taken in the 2025 Quarter on a preferred equity investment. Total revenues increased to $551.6 million in the 2026 Quarter compared to $547.5 million for the 2025 Quarter as a result of record oil & gas royalty revenues, increased coal sales volumes and higher other revenues, partially offset by lower coal sales price per ton. Adjusted EBITDA increased 14.7% to $185.7 million in the 2026 Quarter compared to $161.9 million in the 2025 Quarter. Compared to the Sequential Quarter, total revenues increased 6.9% due to higher coal sales volumes, which rose 8.9% to 8.6 million tons sold in the 2026 Quarter compared to 7.9 million tons sold in the Sequential Quarter, partially offset by 2.7% lower coal sales prices per ton. Net income increased by $70.5 million compared to the Sequential Quarter driven by higher revenues, increased investment income, a smaller decline in the fair value of our digital assets, and a $37.8 million non-cash asset impairment charge in the Sequential Quarter at our Mettiki mine. Adjusted EBITDA for the 2026 Quarter increased by 19.8% compared to the Sequential Quarter. Total revenues decreased slightly to $1.07 billion for the 2026 Period compared to $1.09 billion for the 2025 Period primarily due to lower coal sales, partially offset by record oil & gas royalty revenues. Net income for the 2026 Period was $88.7 million, or $0.68 per basic and diluted limited partner unit, compared to $133.4 million, or $1.03 per basic and diluted limited partner unit, for the 2025 Period. Adjusted EBITDA for the 2026 Period increased 5.8% to $340.7 million compared to $321.9 million for the 2025 Period. CEO Commentary "Our coal operations performed well during the quarter, highlighted by strong productivity and disciplined cost control," said Joseph W. Craft III, Chairman, President and Chief Executive Officer. "River View and Tunnel Ridge generated superior operating results, driving Segment Adjusted EBITDA expense per ton sold lower by 6.3% year-over-year and 6.6% sequentially. With Hamilton recently returning to longwall production and no additional longwall moves expected until 2027, we believe our operations are well-positioned to meaningfully increase production and cash flow generation during the second half of this year." Mr. Craft added, "Our Oil & Gas Royalties segment delivered record quarterly revenue of $46.3 million and Segment Adjusted EBITDA of $38.0 million, driven by stronger realized commodity pricing. Subsequent to quarter end, we successfully closed the $206.2 million AllDale III & IV acquisition. With this transaction, our cumulative investment in oil & gas royalties now exceeds $1.0 billion, marking a significant milestone in the evolution of ARLP's diversified natural resource platform." Mr. Craft continued, "Repeating my comments when we announced our agreement to buy these reserves, this acquisition accelerates the continued growth of our Oil & Gas Royalties segment, adding scale and development upside across multiple U.S. basins, anchored by a meaningful Permian position. It also expands our natural gas footprint with entry into the Haynesville, a resource play well-positioned to benefit from long-term LNG export demand growth. We believe this acquisition will be immediately accretive to ARLP’s free cash flow per unit and strengthens ARLP’s long-term royalty platform, broadens our exposure to high-quality operators and advances our long-term strategy of building a durable, cash-generating royalties business that complements our existing coal operations." Segment Results and Analysis (Unaudited) Coal Operations Coal sales volumes decreased by 4.5% in the Illinois Basin compared to the 2025 Quarter due primarily to decreased tons sold from our Hamilton mine as a result of a planned extended longwall move during the 2026 Quarter, partially offset by a strong sales performance and productivity at our River View complex. Compared to the Sequential Quarter, tons sold increased by 4.9% driven primarily by River View's strong performance during the 2026 Quarter. In Appalachia, tons sold increased by 27.6% and 22.3% compared to the 2025 Quarter and Sequential Quarter, respectively, primarily as a result of increased production at our Tunnel Ridge longwall operation due to improved recoveries and higher productivity. Coal sales price per ton decreased by 22.9% and 14.7% in Appalachia compared to the 2025 Quarter and Sequential Quarter, respectively, primarily due to an increased sales mix of lower priced Tunnel Ridge sales volumes in the 2026 Quarter and reduced sales price per ton at Mettiki. ARLP ended the 2026 Quarter with total coal inventory of 0.8 million tons, representing a decrease of 0.3 million tons compared to the end of both the 2025 Quarter and Sequential Quarter. Segment Adjusted EBITDA Expense per ton in the Illinois Basin increased 3.7% and 2.2% compared to the 2025 Quarter and Sequential Quarter, respectively, due primarily to the planned extended longwall move at our Hamilton mine during the 2026 Quarter. In Appalachia, Segment Adjusted EBITDA Expense per ton for the 2026 Quarter decreased by 29.7% and 25.7% compared to the 2025 Quarter and Sequential Quarter, respectively, as a result of increased production at our Tunnel Ridge operation. Royalties Segment Adjusted EBITDA for the Oil & Gas Royalties segment increased to a record $38.0 million in the 2026 Quarter compared to $29.9 million and $34.6 million in the 2025 Quarter and Sequential Quarter, respectively, primarily due to higher average sales prices per MBOE, which increased 22.7% and 22.1%, respectively, partially offset by higher expenses. Oil & gas royalty volumes increased 6.4% compared to the 2025 Quarter as a result of increased drilling and completion activities on our acreage combined with additional oil & gas mineral interests acquired. Volumes decreased 8.4% sequentially due to natural decline from high-ownership pads completed in the Sequential Quarter. Segment Adjusted EBITDA for the Coal Royalties segment increased to $13.0 million in the 2026 Quarter compared to $11.8 million and $12.3 million in the 2025 Quarter and Sequential Quarter, respectively, due to higher royalty tons sold, primarily from Tunnel Ridge and River View, partially offset by higher expenses. Balance Sheet and Liquidity As of June 30, 2026, total debt and finance leases were outstanding in the amount of $590.2 million. The Partnership’s total and net leverage ratios were 0.82 times and 0.67 times debt to trailing twelve months Adjusted EBITDA, respectively, as of June 30, 2026. ARLP ended the 2026 Quarter with total liquidity of $424.0 million, which included $111.2 million of cash and cash equivalents and $312.8 million of borrowings available under its revolving credit and accounts receivable securitization facilities. In addition, ARLP held 646 bitcoins valued at $37.9 million as of June 30, 2026. Distributions ARLP announced today that the Board of Directors of ARLP’s general partner approved a cash distribution to unitholders for the 2026 Quarter of $0.60 per unit (an annualized rate of $2.40 per unit), payable on August 14, 2026, to all unitholders of record as of the close of trading on August 7, 2026. The Distribution Coverage Ratio for the 2026 Quarter was 1.39x. Concurrent with this announcement, we are providing qualified notice to brokers and nominees that hold ARLP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of ARLP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, ARLP’s distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the highest applicable effective tax rate plus ten percent (10%). Nominees, and not ARLP, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of non-U.S. investors. July 2026 Acquisition of Oil & Gas Royalties On July 1, 2026, we completed the previously announced acquisition of certain general partner and limited partner interests in AllDale Minerals III, LP and AllDale Minerals IV, LP (collectively "AllDale III & IV") for approximately $206.2 million, subject to customary post-closing adjustments. The AllDale III & IV acquisition expands and diversifies our portfolio of mineral and royalty interests through the added control of approximately 48,500 net royalty acres across premier basins and resource plays including the Permian, Anadarko, Bakken and Haynesville. ARLP funded the acquisition using a combination of cash on hand, borrowings under its revolving credit facility, and a new $150.0 million term loan at its wholly owned subsidiary Alliance Minerals, LLC. Outlook "Due to our strong contracted sales book, we were minimally impacted this quarter by lower domestic coal demand in the first half of this year due to mild weather and lower natural gas prices," Mr. Craft continued. "During the quarter, we continued to add to our sales book by securing an additional 21.2 million committed and priced coal sales tons over the 2026 to 2031 time period. Our expected 2026 coal sales tons are essentially fully committed at the midpoint of guidance, and we now have 29.4 million tons committed and priced for 2027 delivery. We believe this level of forward commitment reflects both the strategic importance of our coal supply and the confidence customers place in ARLP’s ability to deliver." Mr. Craft concluded, "We are increasing our full-year oil & gas royalties volume guidance to reflect the contribution of the AllDale III & IV acquisition beginning in the third quarter of 2026. Similar to our coal segment, we believe our Oil & Gas Royalties segment is well-positioned to meaningfully increase production and cash flow generation during the second half of this year. Looking ahead, our strategy within this segment is focused on reducing leverage, maintaining financial flexibility, and pursuing disciplined acquisition opportunities that enhance long-term unitholder value." Guidance ARLP is updating the following guidance for the full year ending December 31, 2026: Derivatives As of the date of this press release, ARLP had the following outstanding derivative contracts assumed in connection with the AllDale III & IV acquisition. When aggregating multiple contracts, the weighted average contract price is disclosed. Conference Call A conference call regarding ARLP’s 2026 Quarter financial results and updated 2026 guidance is scheduled for today at 10:00 a.m. Eastern. To participate in the conference call, dial (877) 407-0784 and request to be connected to the Alliance Resource Partners, L.P. earnings conference call. International callers should dial (201) 689-8560 and request to be connected to the same call. Investors may also listen to the call via the "Investors" section of ARLP’s website at www.arlp.com. An audio replay of the conference call will be available for approximately one week. To access the audio replay, dial U.S. Toll Free (844) 512-2921; International Toll (412) 317-6671 and request to be connected to replay using access code 13761715. About Alliance Resource Partners, L.P. ARLP is a diversified natural resource company that is currently the second largest coal producer in the eastern United States, supplying reliable, affordable energy domestically and internationally to major utilities, metallurgical and industrial users. ARLP also generates operating and royalty income from mineral interests it owns in strategic coal and oil & gas producing regions in the United States. In addition, ARLP is positioning itself as a reliable energy partner for the future by pursuing opportunities that support the growth and development of energy-related technologies and infrastructure. News, unit prices and additional information about ARLP, including filings with the Securities and Exchange Commission ("SEC"), are available at www.arlp.com. For more information, contact the investor relations department of ARLP at (918) 295-7673 or via e-mail at [email protected]. The statements and projections used throughout this release are based on current expectations. These statements and projections are forward-looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions or other business combinations that may occur after the date of this release. We have included more information below regarding business risks that could affect our results. FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. Those forward-looking statements include expectations with respect to our future financial and operational performance, coal and oil & gas consumption and expected future prices, our ability to increase or maintain unitholder distributions in future quarters, business plans and potential growth with respect to our energy and infrastructure investments, optimizing cash flows, reducing operating and capital expenditures, infrastructure projects at our existing properties, growth in domestic electricity demand, preserving liquidity and maintaining financial flexibility, and our future repurchases of units. These risks to our ability to achieve these outcomes include, but are not limited to, the following: decline in the coal industry’s share of electricity generation, including as a result of environmental concerns related to coal mining and combustion, the cost and perceived benefits of other sources of electricity and fuels, such as oil & gas, nuclear energy, and renewable fuels and the retirement of coal-fired power plants in the U.S.; our ability to provide fuel for growth in domestic energy demand, should it materialize; changes in macroeconomic and market conditions and market volatility, and the impact of such changes and volatility on our financial position; changes in global economic and geo-political conditions or changes in industries in which our customers operate; changes in commodity prices, demand and availability which could affect our operating results and cash flows; impacts of geopolitical events, including the conflicts in Ukraine and in the Middle East, including Iran and disruption of maritime traffic through the Strait of Hormuz; actions of the major oil-producing countries with respect to oil production volumes and prices and the direct and indirect impacts over the near and long term on oil & gas exploration and production operations at the properties in which we hold mineral interests; changes in competition in domestic and international coal markets and our ability to respond to such changes; potential shut-ins of production by the operators of the properties in which we hold oil & gas mineral interests due to low commodity prices or the lack of downstream demand or storage capacity; risks associated with the expansion of and investments into the infrastructure of our operations and properties, including the timing of such investments coming online; our ability to identify and complete acquisitions and to successfully integrate such acquisitions into our business and achieve the anticipated benefits therefrom; our ability to identify and invest in new energy and infrastructure ventures; the success of our development and growth plans for our wholly owned subsidiary, Matrix Design Group, LLC, and our investments in emerging and other infrastructure and technology companies; dependence on significant customer contracts, and failure of customers to renew existing contracts upon expiration; adjustments made in price, volume, or terms to existing coal supply agreements; the effects of and changes in trade, monetary and fiscal policies and laws, and the results of central bank policy actions including interest rates, bank failures, and associated liquidity risks; the effects of and changes in taxes or tariffs and other trade measures adopted or threatened by the United States and foreign governments, including the imposition of or increase in tariffs on steel and/or other raw materials; legislation, regulations, and court decisions and interpretations thereof, both domestic and foreign, including those relating to the environment and the release of greenhouse gases, such as state legislation seeking to impose liability on a wide range of energy companies under greenhouse gas "superfund" laws, mining, miner health and safety, hydraulic fracturing, and health care; deregulation of the electric utility industry or the effects of any adverse change in the coal industry, electric utility industry, or general economic conditions; investors’ and other stakeholders’ attention to sustainability matters; liquidity constraints, including those resulting from any future unavailability of financing; customer bankruptcies, cancellations or breaches to existing contracts, or other failures to perform; customer delays, failure to take coal under contracts or defaults in making payments; our productivity levels and margins earned on our coal sales; disruptions to oil & gas exploration and production operations at the properties in which we hold mineral interests; changes in equipment, raw material, service or labor costs or availability, including due to inflationary pressures or tariffs; changes in our ability to recruit, hire and maintain labor; our ability to maintain satisfactory relations with our employees; increases in labor costs, including increases in the costs of health insurance, adverse changes in work rules, or cash payments or projections associated with workers’ compensation claims; increases in transportation costs and risk of transportation delays or interruptions; operational interruptions due to geologic, permitting, labor, weather, supply chain shortage of equipment or mine supplies, or other factors; risks associated with major mine-related accidents, mine fires, mine floods or other interruptions; results of litigation, including claims not yet asserted; foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad; difficulty maintaining our surety bonds for mine reclamation as well as workers’ compensation and black lung benefits; difficulty in making accurate assumptions and projections regarding post-mine reclamation as well as pension, black lung benefits, and other post-retirement benefit liabilities; uncertainties in estimating and replacing our coal mineral reserves and resources; uncertainties in estimating and replacing our oil & gas reserves; uncertainties in the amount of oil & gas production due to the level of drilling and completion activity by the operators of our oil & gas properties; the impact of current and potential changes to federal or state tax rules and regulations, including a loss or reduction of benefits from certain tax deductions and credits; difficulty obtaining commercial property insurance, and risks associated with our participation in the commercial insurance property program; evolving cybersecurity risks, such as those involving unauthorized access, denial-of-service attacks, malicious software, data privacy breaches by employees, insiders or others with authorized access, cyber or phishing attacks, ransomware, malware, social engineering, physical breaches, or other actions; and difficulty in making accurate assumptions and projections regarding future revenues and costs associated with equity investments in companies we do not control. Additional information concerning these, and other factors can be found in ARLP’s public periodic filings with the SEC, including ARLP’s Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 26, 2026, and ARLP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed on May 8, 2026. Except as required by applicable securities laws, ARLP does not intend to update its forward-looking statements. Reconciliation of Non-GAAP Financial Measures (Unaudited) Reconciliation of GAAP "net income attributable to ARLP" to non-GAAP "EBITDA," "Adjusted EBITDA," "Distribution Coverage Ratio" and "Distributable Cash Flow" (in thousands). EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes and depreciation, depletion and amortization and Adjusted EBITDA is EBITDA adjusted for certain items that we characterize as unrepresentative of our ongoing operations. Distributable cash flow ("DCF") is defined as Adjusted EBITDA excluding equity method investment earnings, interest expense (before capitalized interest), interest income, income taxes and estimated maintenance capital expenditures and adding distributions from equity method investments. Distribution coverage ratio ("DCR") is defined as DCF divided by distributions paid to partners. Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions and (iii) present measurements that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. EBITDA, Adjusted EBITDA, DCF and DCR should not be considered as alternatives to net income attributable to ARLP, net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. EBITDA and DCF are not intended to represent cash flow and do not represent the measure of cash available for distribution. Our method of computing EBITDA, Adjusted EBITDA, DCF and DCR may not be the same method used to compute similar measures reported by other companies, or EBITDA, Adjusted EBITDA, DCF and DCR may be computed differently by us in different contexts (i.e., public reporting versus computation under financing agreements). Reconciliation of GAAP "Cash flows from operating activities" to non-GAAP "Free cash flow" (in thousands). Free cash flow is defined as cash flows from operating activities less capital expenditures and the change in accounts payable and accrued liabilities from purchases of property, plant and equipment. Free cash flow should not be considered as an alternative to cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP. Our method of computing free cash flow may not be the same method used by other companies. Free cash flow is a supplemental liquidity measure used by our management to assess our ability to generate excess cash flow from our operations. Reconciliation of GAAP "Operating Expenses" to non-GAAP "Segment Adjusted EBITDA Expense" and Reconciliation of non-GAAP "Adjusted EBITDA" to non-GAAP "Segment Adjusted EBITDA" (in thousands). Segment Adjusted EBITDA Expense is defined as operating expenses, coal purchases, if applicable, and other income or expense as adjusted to remove certain items from operating expenses that we characterize as unrepresentative of our ongoing operations. Transportation expenses are excluded as these expenses are passed on to our customers and, consequently, we do not realize any margin on transportation revenues. Segment Adjusted EBITDA Expense is used as a supplemental financial measure by our management to assess the operating performance of our segments. Segment Adjusted EBITDA Expense is a key component of EBITDA in addition to coal sales, royalty revenues and other revenues. The exclusion of corporate general and administrative expenses from Segment Adjusted EBITDA Expense allows management to focus solely on the evaluation of segment operating performance as it primarily relates to our operating expenses. Segment Adjusted EBITDA Expense – Coal Operations represents Segment Adjusted EBITDA Expense from our wholly-owned subsidiary, Alliance Coal, LLC ("Alliance Coal"), which holds our coal mining operations and related support activities. Segment Adjusted EBITDA is defined as Adjusted EBITDA adjusted for general and administrative expenses. Segment Adjusted EBITDA – Coal Operations represents Segment Adjusted EBITDA from our wholly-owned subsidiary, Alliance Coal, which holds our coal mining operations and related support activities and allows management to focus primarily on the operating performance of our Illinois Basin and Appalachia segments. View source version on businesswire.com: https://www.businesswire.com/news/home/20260727818814/en/ Contacts Investor Relations Contact Cary P. MarshallSenior Vice President and Chief Financial [email protected]

Performance was driven by record oil and gas royalty volumes and higher commodity pricing, which offset lower coal sales revenue and weather-related shipment delays. Coal pricing is currently normalizing as high-priced legacy contracts from the 2022 energy crisis roll off and are replaced by current market-rate contracts. The $37.8 million noncash impairment at the Mettiki mine reflects a strategic decision to cease longwall production due to operational uncertainty and a focus on cost reduction. Management attributes coal's continued relevance to its critical role in grid reliability, noting coal-fired generation capacity factors approached 80% during peak winter storm periods. Strategic investments in the River View and Gibson South mines successfully offset production declines caused by a planned extended longwall move at the Hamilton mine. The partnership is capitalizing on data center demand growth, particularly in the Eastern U.S., which management believes justifies extending the life of existing coal fleets. Guidance for 2026 coal sales is more than 95% committed and priced, with the remaining open position dependent on summer cooling demand and spot market activity. Management increased 2026 oil and gas royalty volume guidance by approximately 5% based on year-to-date outperformance and increased drilling activity by partners. Operational visibility is expected to improve in the second half of 2026 as all major planned longwall moves for the year are completed by the first half of May. The partnership assumes a constructive domestic market for coal, prioritizing local utility solicitations over the export market unless API 2 prices reach approximately 120. Capital allocation strategy remains focused on reinvesting after-tax cash flow from royalties into expanding the minerals position and evaluating potential coal plant acquisitions. A $37.8 million noncash asset impairment was recorded for the Mettiki mine; management expects greater clarity on the mine's future path later this year. Digital assets saw an $11.6 million decrease in fair value, though management intends to hold its 618 Bitcoin due to perceived long-term regulatory and price upside. Weather-related river disruptions delayed approximately 200,000 tons of scheduled coal shipments, which are expected to be recovered over the balance of the year. The distribution coverage ratio reached 1x this quarter; management indicated a preference for 1.2x to 1.4x coverage before considering distribution increases or unit buybacks. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management secured 2 million tons of export commitments during a brief window of market dislocation but currently prefers domestic opportunities. An API 2 price of approximately 120 is the threshold required to make export sales more attractive than current domestic options. Costs in Appalachia are expected to decline by 15% to 20% quarter-over-quarter as Tunnel Ridge returns to steady production following its longwall move. The second quarter serves as a transition period, with the second half of 2026 expected to be significantly stronger due to higher volumes and lower unit costs. Management believes the massive scale of data center demand will force utilities to keep coal plants online much longer than previously anticipated, potentially until 2034. Reliability concerns are expected to support high capacity payments for the next several years as new generation construction lags behind demand growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Adjusted EBITDA: $155 million, 3.1% lower than Q1 2025 and down 18.9% from Q4 2025. Net Income: $9.1 million or $0.07 per unit, compared to $74 million or $0.57 per unit in Q1 2025. Total Revenues: $516 million, down 4.5% from Q1 2025 and down 3.6% from Q4 2025. Coal Sales Volumes: 7.9 million tons, up from 7.8 million tons in Q1 2025, down from 8.1 million tons in Q4 2025. Average Coal Sales Price per Ton: $56.40, a 6.5% decrease from Q1 2025 and a 2% decrease sequentially. Illinois Basin Coal Sales Volumes: 6.1 million tons, up 0.4% from Q1 2025, down 5.9% from Q4 2025. Appalachia Coal Sales Volumes: 1.8 million tons, up 3.6% from Q1 2025. Total Coal Inventory: 1.2 million tons, down 0.2 million tons year-over-year, up 0.1 million tons sequentially. Total Royalty Revenues: $61.2 million, up 16.1% year-over-year, up 7.7% sequentially. Oil and Gas Royalty Revenues: $41.3 million, up 14.6% year-over-year. Record BOE Volumes: 1 million, up 16.1% year-over-year, up 3.3% sequentially. Total Debt and Finance Leases: $507.7 million. Total Liquidity: $431.2 million, including $28.9 million in cash and cash equivalents. Bitcoin Holdings: 618 Bitcoin valued at $42.2 million. Capital Expenditures: $95.7 million. Distributable Cash Flow: $77.8 million. Distribution Coverage Ratio: 1x. Warning! GuruFocus has detected 3 Warning Sign with ARLP. Is ARLP fairly valued? Test your thesis with our free DCF calculator. Release Date: April 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Alliance Resource Partners LP (NASDAQ:ARLP) reported higher-than-expected adjusted EBITDA of $155 million for the first quarter of 2026, driven by record BOE volumes and higher commodity prices. The Oil & Gas Royalty segment achieved another record quarter with revenues of $41.3 million, up 14.6% year-over-year. Total royalty revenues increased by 16.1% year-over-year, reflecting strong performance in the royalties segment. The company successfully completed the final phase of the River View to Henderson County minor unit transition, enhancing production capacity. ARLP's balance sheet remains strong with total liquidity of $431.2 million, including $28.9 million in cash and cash equivalents. Net income attributable to ARLP in the first quarter of 2026 was significantly lower at $9.1 million compared to $74 million in the same quarter of 2025. The company faced temporary weather-related disruptions, delaying approximately 200,000 tons of scheduled coal shipments. A $37.8 million noncash asset impairment charge was recorded at the Mettiki mine due to uncertainty regarding future operations. Coal sales revenue decreased, and there was an $11.6 million decrease in the fair value of digital assets. Coal sales volumes and pricing were down, with a 6.5% decrease in average coal sales price per ton compared to the first quarter of 2025. Q: Joe, you noted the Iran conflict briefly opened the US export thermal valve ARLP contracted nearly 2 million tons. Should we assume now that, that valve is closed? Or could there be more opportunity? And what API 2 price range does ARLP need to incentivize sales to that export market? A: Joseph Craft, Chairman, President, and CEO: Currently, domestic opportunities are preferred over the export market. When we contracted for these volumes, API 2 was in the range of 130 to 140. The preferred option for export would be around 120. There could still be possibilities of increased export opportunities, especially during the summer when demand is higher. However, our current focus is on domestic market opportunities for 2026 and 2027. Q: What are you hearing from your customers regarding potential demand as we head into the summer? Could utilities flex down if the summer isn't very hot? A: Joseph Craft, Chairman, President, and CEO: We are seeing customers looking to add to their position for 2026 and beyond. We believe there is demand for our unsold position, and most forecasts suggest a warmer than normal summer, which would be constructive for demand in the second half of the year. Q: How should we think about costs in Appalachia, especially with the longwall move at Tunnel Ridge? A: Cary Marshall, CFO: The longwall move at Tunnel Ridge is completed, and we expect operations to run well for the rest of the year. Costs will be higher in Q2 than in Q3 and Q4, but we anticipate a meaningful reduction in costs, with volumes expected to increase by about 15% in Appalachia for the rest of the year. Q: What are your major capital allocation priorities in 2026, especially regarding potential acquisitions on the power side? A: Joseph Craft, Chairman, President, and CEO: We are committed to reinvesting after-tax cash generation from our oil and gas royalties into expanding our minerals position. We are interested in participating in opportunities to acquire coal plants if owners are interested in divesting. We would allocate capital to both oil and gas and power opportunities as they arise. Q: How are you thinking about the Bitcoin operations strategically? A: Joseph Craft, Chairman, President, and CEO: We believe the upside on Bitcoin pricing is significant enough to hold on to what we have. We see more upside than downside, especially with potential regulatory support and market trends indicating increased inflow into Bitcoin markets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.