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Alliance Resource Partners: Entering A New Era Away From Thermal Coal

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DT Analysis


  • After growing their distributions during 2021, Alliance Resource Partners provided another 40% increase to start 2022 thanks to booming coal prices.
  • Even more excitingly, they have also announced two new investments in non-resource related business ventures, which see them moving away from thermal coal.
  • This sees their partnership entering electric vehicle charging and proprietary lightweight electric motors.
  • Management expects to see "significant" returns in four to seven years whilst investing at least $90m in the short term, which will see a sizeable draw upon their cash inflows.
  • I still believe that maintaining my hold rating is appropriate given the uncertain outlook for these new business ventures and the risks when these booming coal prices likely revert lower.

Life after death, green sprout on the coals after the fire. Rebirth of nature after the fire. Rebirth concept

ANGHI/iStock via Getty Images


Thanks to a surprisingly strong rally in coal prices during 2021, the thermal coal-focused Alliance Resource Partners (NASDAQ:ARLP) was able to reinstate and subsequently grow their distributions during the year whilst also seeing an

Alliance Resource Partners Ratings


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Alliance Resource Partners Capital Structure


Alliance Resource Partners Leverage Ratios


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Alliance Resource Partners Debt Maturities

Alliance Resource Partners 2021 10-K

This article was written by

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I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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