Business
Alliance Resource Partners, L.P. Reports First Quarter 2020 Financial and Operating Results
Decisive actions taken amid the COVID-19 outbreak and market deterioration to safeguard employee health and safety, support communities and customers as an
About this update from Alliance Resource Partners, L.p.
[{"type":"text","content":"\nDecisive actions taken amid the COVID-19 outbreak and market deterioration to safeguard employee health and safety, support communities and customers as an essential supplier to critical infrastructure, protect strong balance sheet and enhance liquidity \n\n TULSA, Okla.--(BUSINESS WIRE)--\nAlliance Resource Partners, L.P. (NASDAQ: ARLP) today reported a net loss attributable to ARLP of $144.8 million, or $(1.14) per basic and diluted limited partner unit for the quarter ended March 31, 2020 (the \"2020 Quarter\"), which included non-cash impairment charges of $157.0 million. This compares to net income attributable to ARLP of $276.4 million, or $2.12 per basic and diluted limited partner unit for the quarter ended March 31, 2019 (the \"2019 Quarter\"), which included a non-cash net gain of $170.0 million related to the AllDale Acquisition. Excluding the impact of non-cash items (each described in more detail below), for the 2020 Quarter Adjusted net income attributable to ARLP and Adjusted EBITDA decreased to $12.2 million and $98.3 million, respectively, compared to $106.5 million and $188.8 million for the 2019 Quarter. (Unless otherwise noted, all references in this release to \"net income\" refer to \"net income attributable to ARLP.\" For a definition of EBITDA, Adjusted net income attributable to ARLP, Adjusted EBITDA and related reconciliations to comparable GAAP financial measures, please see the end of this release.)\n\n\n\"ARLP entered the year anticipating challenging coal market conditions due primarily to low natural gas prices and the overhang of coal supply caused by the collapse of thermal export prices during the back half of 2019,\" said Joseph W. Craft III, Chairman, President and Chief Executive Officer. \"Mid-way through the 2020 Quarter, it became evident that mild winter weather and natural gas prices falling to twenty-year lows, well below $2.00/mmbtu, were adding to the pressures on coal demand. The unanticipated disruptions created by the COVID-19 pandemic caused global energy demand to plummet, further negatively impacting our results for the 2020 Quarter as well.\"\n\n\nMr. Craft added, \"All of our coal mines continued to operate during the 2020 Quarter given the essential, life-sustaining need for coal to be available to supply and ensure the reliability of the electric grid. As our coal inventor...