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Alliance Resource Partners, L.P. Increases Quarterly Cash Distribution 40% to $0.35 Per Unit; Provides Preliminary View of Results for the Quarter Ended March 31, 2022; and Increases Guidance
TULSA, Okla.--(BUSINESS WIRE)-- Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced that the Board of Directors of ARLP’s general partner
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 that the Board of Directors of ARLP’s general partner approved an increased cash distribution to its unitholders for the quarter ended March 31, 2022 (the \"2022 Quarter\").\n\nARLP unitholders will receive a cash distribution for the 2022 Quarter of $0.35 per unit (an annualized rate of $1.40 per unit), payable on May 13, 2022, to all unitholders of record as of the close of trading on May 6, 2022. The announced distribution represents a 250.0% increase over the cash distribution of $0.10 per unit for the quarter ended March 31, 2021 (the \"2021 Quarter\") and a 40.0% increase over the cash distribution of $0.25 per unit for the quarter ended December 31, 2021.\n\nPreliminary Results for 2022 Quarter\n\nARLP is providing a preliminary view of the current quarter, which includes the impact of coal shipment delays and oil & gas royalty income tax elections on operating and financial results for the 2022 Quarter.\n\nShipment delays due to seasonal barge lock maintenance, high river levels and ongoing rail transportation challenges impacted ARLP’s ability to ship approximately 1.1 million tons of contracted tonnage during the 2022 Quarter. These delayed coal shipments are expected to be delivered throughout the balance of the year. The financial impact in the 2022 Quarter reduced ARLP’s previously anticipated coal revenues, net income and EBITDA by approximately $72.0 million, $27.0 million, or $0.21 per basic and diluted limited partner unit, and $31.0 million, respectively. (Unless otherwise noted in this release, \"net income\" refers to \"net income attributable to ARLP.\" EBITDA is defined as net income attributable to ARLP before net interest expense, income taxes and depreciation, depletion and amortization.)\n\nConsolidated financial results for the 2022 Quarter will also reflect ARLP’s recent election to convert Alliance Minerals, LLC, the holding company for ARLP’s oil & gas royalty activities, from a partnership pass-through entity taxable at the individual unitholder level to that of a corporate taxable entity for federal and state income tax purposes. This election effectively reduces the total income tax burden on our oil & gas royalties, as ARLP will pay entity level taxes at corporate tax rates that are well below the i...