Business
Alliance Resource Partners, L.P. Announces Actions In Response to Effects of COVID-19 Pandemic
TULSA, Okla.--(BUSINESS WIRE)-- Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced a series of actions in response to the rapidly evolving
About this update from Alliance Resource Partners, L.p.
[{"type":"text","content":" TULSA, Okla.--(BUSINESS WIRE)--\nAlliance Resource Partners, L.P. (NASDAQ: ARLP) today announced a series of actions in response to the rapidly evolving impact of the COVID-19 pandemic. The unprecedented decision by world leaders to lockdown the global economy to combat the deadly virus has crushed demand for energy. The price war initiated by Saudi Arabia and Russia has lowered oil prices even more. All Americans are having to adjust to a way of life none of us could have imagined two months ago.\n\n\nGiven the essential, life-sustaining nature of its business, ARLP continued to operate during the 2020 first quarter. For the past six weeks, however, we have been working at reduced levels while evaluating the needs of our customers amid the disruptions caused by the pandemic. It appears these disruptions will continue for the immediate near future and in light of the ongoing uncertainty surrounding the COVID-19 pandemic, ARLP is taking the following actions:\n\n\n\nARLP is temporarily ceasing coal production at all of its Illinois Basin mines. While this temporary idling is currently scheduled to last through April 15, 2020, the actual return to production may be accelerated or extended based upon the business needs of our customers. As the year progresses, coal production at all of our operations will be further modified to match existing sales commitments of approximately 28 million tons for 2020.\n\n\n\n\nTo mitigate the reduced revenues from lower coal sales volumes and the impact of depressed commodity prices on our Minerals segment, ARLP will optimize cash flows through numerous initiatives to reduce costs, expenses, working capital and capital expenditures.\n\n\n\n\nThe Board of Directors of ARLP's general partner (the \"Board\") has suspended the cash distribution to unitholders for the quarter ending March 31, 2020 (the \"Quarter\"). The Board intends to revisit this decision following the second quarter.\n\n\n\n\nARLP is withdrawing its initial 2020 operating and financial guidance provided on January 27, 2020, which of course did not reflect the impact of the COVID-19 pandemic. We currently plan to release financial and operating results for the Quarter on or about May 8, 2020, in conjunction with filing our Form 10-Q.\n\n\n\n\"It is important to note that approximately 75% of our domestic sales are targeted to state...