Business
Alliance Resource Partners, L.P. Reports Second Quarter 2020 Financial and Operating Results
Strong execution of plans to optimize cash flow and control costs led to total debt reduction of $49.6 million TULSA, Okla.--(BUSINESS WIRE)-- Alliance
About this update from Alliance Resource Partners, L.p.
[{"type":"text","content":"\nStrong execution of plans to optimize cash flow and control costs led to total debt reduction of $49.6 million \n\n TULSA, Okla.--(BUSINESS WIRE)--\nAlliance Resource Partners, L.P. (NASDAQ: ARLP) today reported a net loss attributable to ARLP of $46.7 million, or $(0.37) per basic and diluted limited partner unit for the quarter ended June 30, 2020 (the \"2020 Quarter\") compared to net income attributable to ARLP of $58.1 million, or $0.44 per basic and diluted limited partner unit for the quarter ended June 30, 2019 (the \"2019 Quarter\"). The decrease in net income attributable to ARLP in the 2020 Quarter was primarily due to our decision to temporarily cease coal production at five of our seven mining complexes at the beginning of the 2020 Quarter in response to the impacts of the COVID-19 pandemic and coal market deterioration. Production days were cut in half compared to the quarter ended March 31, 2020 (the \"Sequential Quarter\") as we gradually resumed production during the 2020 Quarter. (Unless otherwise noted, all references in this release to \"net income (loss)\" refer to \"net income (loss) attributable to ARLP.\")\n\n\n\"As we cautioned in ARLP’s last earnings release, we expected the energy demand destruction caused by the COVID-19 pandemic to negatively impact our results for the 2020 Quarter,\" said Joseph W. Craft III, Chairman, President and Chief Executive Officer. \"For the first half of 2020 coal-fired generation in the eastern U.S. declined 33% compared to the same time period in 2019. Demand for oil and natural gas also fell precipitously, driving commodity prices lower and leading operators to curtail production. As a result, Consolidated Segment Adjusted EBITDA for the 2020 Quarter was $62.1 million compared to $165.3 million in the 2019 Quarter and $111.7 million in the Sequential Quarter. While the pandemic continues to create uncertainty in the global economy and suppress energy demand, our customers have indicated their intention to take all tons contracted for this year.\"\n\n\nOperations Update \n\n\nIn response to the impacts of the COVID-19 pandemic and coal market deterioration, ARLP announced earlier this year that it would temporarily halt production operations at all of its mining complexes in the Illinois Basin and its MC Mining complex in East Kentucky (see March 30, 2020 and April 9, ...