Alliance Resource Partners Q2 Profit Declines; Raises Cash Distribution

(RTTNews) - Alliance Resource Partners, L.P. (ARLP) reported second-quarter net income to company of $94.86 million or $0.76 per unit, compared to $137.65 million or $1.37 per unit in the prior-year quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report profit per unit of $0.89 for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter increased to $604.72 million from $598.56 million in the same period last year. Analysts expected revenue of $603.78 million for the quarter.

Alliance Resource Partners said it currently anticipates closing the acquisition of the remaining equity interests in White Oak within the week.

The company continues to expect full year EBITDA and net income will be within the range of prior guidance and, once closing has occurred, will provide a full update to 2015 guidance to reflect consolidation of the White Oak Mine No. 1 and termination of the current coal royalty and surface facilities services agreements and the preferred equity interests related to White Oak.

The company had earlier forecast 2015 revenues to increase to a range of $2.39 billion to $2.48 billion, excluding transportation revenues, and net income in a range of $395.0 million to $455.0 million.

The Street expects the company to earn $3.82 per share for the year on revenues of $2.37 billion.

Alliance Resource Partners said its board of directors of its managing general partner increased the cash distribution to unitholders for the second quarter to $0.675 per unit, or an annualized rate of $2.70 per unit.

The cash distribution is payable on August 14, 2015 to all unitholders of record as of the close of trading on August 7, 2015.

The announced distribution represents an 8 percent increase over the cash distribution of $0.625 per unit for the year-ago quarter and a 1.9 percent increase over the cash distribution of $0.6625 per unit for the preceding first quarter.