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Alliance Resource Partners (ARLP): Q3 EPS of $0.89 misses by $0.87. Revenue of $511.4M misses by...

Alliance Resource Partners (ARLP): Q3 EPS of $0.89 misses by $0.87. Revenue of $511.4M misses by $44M. (PR)
Comments (4)
  • I don't understand, if earnings are down why the stock is up?
    26 Oct 2012, 10:19 AM Reply Like
  • They increased their dividend by a good amount. But this report is wrong. They did not miss by 89 cents. They missed by 34 cents. They earned $1.41 per share.
    26 Oct 2012, 01:26 PM Reply Like
  • Good looking out! I was going to say - wow, miss by 50% and the stock is STILL up 2.5%?! This is an amazing stock though. You get the best of both worlds - the high div. of an MLP, but with the growth potential of a standard non-div paying equity
    26 Oct 2012, 02:37 PM Reply Like
  • The transcript is available now and I suggest you read it if you missed the cc - tons more info there. But this news came out a while back and this is in the transcript (search on this site and it will come up).

     

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    <<Alliance Resource Partners, L.P. Updates Production Status of Pontiki Mine in Central Appalachia; Complex Remains Idled

     

    TULSA, Okla.--(BUSINESS WIRE)--

     

    Alliance Resource Partners, L.P. (ARLP) today updated the status of production operations at the Pontiki mining complex in Martin County, Kentucky, which has been idled since August 29, 2012.

     

    The Mine Safety and Health Administration ("MSHA") ordered the closure of the coal preparation plant and associated surface facilities at the Pontiki complex due to the failure on August 23, 2012 of a belt line between two clean coal stacking tubes. In issuing its closure order, MSHA required a comprehensive structural inspection of all surface facilities by an independent bridge engineering firm before the surface facilities could be reopened. >>
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    <<Our 2012 quarter was however negatively impacted by the unplanned idling of our Pontiki mining complex, On August 29, Pontiki was idled following a closure order issued by the Mine Safety and Health Administration with respect to the coal preparation plant and associated surface facilities at the complex.

     

    After a review of all surface structures by an external ridge construction engineer, we were advised that significant repairs needed be made before the mine could return to production. We have made sufficient progress in our efforts to improve the near-term cost structure at Pontiki to justify the capital investment and expense required to complete the first phase of repairs necessary to allow the complex to resume operation. At Pontiki, we expect that the repairs will begin shortly and it should be completed by the end of the year to resume production.

     

    By resuming we expect Pontiki will generate sufficient cash flow to recoup his investment over the next year. By taking this step, ARLP is hopeful that we can preserve potential option value for Pontiki, should market conditions improve, once the existing 2013 coal sales contracts are completed. Nevertheless, the market outlook for Pontiki beyond 2013 is uncertain and there are significant risks to the long-term viability of the mine.

     

    In light of these risks and uncertainties, ARLP determined that an impairment of Pontiki's assets was required in the 2012 quarter. Brian will walk-through the numbers on impairment during his comments.>>
    27 Oct 2012, 09:28 PM Reply Like
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