See Graham's ranking
4.0
Alliance Resource Partners, L.P. is a United States–based company operating in the energy sector within the coal mining and mineral royalties industry. The company produces and markets thermal and, to a lesser extent, metallurgical coal, serving electric utilities and industrial customers.
It also generates income through oil and natural-gas mineral royalties across multiple U.S. basins. Alliance Resource Partners, in its current form, traces its origins to 1971, when regional coal-mining operations were consolidated into a unified structure.
Its creation was driven by growing national reliance on coal-fired electricity and the need for integrated, efficient mining operations under a limited partnership model. The company’s portfolio includes underground and surface mines located in Indiana, Kentucky, Illinois, Maryland and West Virginia.
Its operations supply thermal coal to domestic utilities and participate selectively in international markets when export economics are favorable. The royalty segment provides recurring revenue through third-party oil and gas production, allowing the partnership to diversify its earnings.
Alliance Resource Partners operates primarily within the United States, with strong presence in the Illinois Basin and the Northern Appalachian Basin.
Its operational structure includes underground mine systems, ventilation infrastructure, continuous-mining equipment, preparation plants, rail and barge logistics, geological analysis units, engineering divisions and safety-management programs.
Market dynamics affecting the company include thermal and metallurgical coal pricing, environmental regulations, demand from power-generation utilities, competition from natural gas, transportation availability, long-term supply contracts, operational-cost pressures, economic cycles and regulatory changes affecting fossil-fuel production.
The oil and gas royalty business is influenced by commodity prices, drilling activity and productivity of wells within its mineral portfolio.
Alliance Resource Partners, L.P.’s units trade on the Nasdaq under the ticker ARLP.
History and when Alliance Resource Partners, L.P. was founded
Alliance Resource Partners was established in 1971 as a coal-mining enterprise serving regional utility markets. Its early strategy centered on developing underground mines and securing long-term supply agreements with power producers, at a time when coal was the dominant fuel for U.S. electricity generation.
Consolidation of operations provided economies of scale and improved operational reliability. Throughout the 1980s and 1990s, the company expanded through acquisitions and investments in mine modernization, including mechanized mining equipment, enhanced ventilation systems and upgraded preparation plants.
These improvements increased productivity and workforce safety, positioning the company competitively within the thermal coal market.
In 1999, the company completed a major reorganization and became a publicly traded Master Limited Partnership under the name Alliance Resource Partners, L.P.
The transition to an MLP structure facilitated broader access to capital and accelerated investment in new mining operations and logistical infrastructure. Subsequently, the company expanded significantly within the Illinois Basin while strengthening its presence in the Northern Appalachians.
During the 2010s, as natural gas and renewable energy altered the U.S. power-generation landscape, the company adapted by optimizing costs, reinforcing long-term utility contracts and enhancing operational efficiency. The necessity to diversify revenue sources began to shape long-term strategic decisions.
From 2020 to 2024, the company expanded its oil and gas mineral royalties business, acquiring additional acreage and increasing exposure to production-driven revenue streams.
Investments in automation, safety systems and environmental performance strengthened operational resilience. Meanwhile, improvements in transportation logistics supported consistent delivery to utility customers despite market fluctuations.
By 2024, Alliance Resource Partners, L.P. had established itself as one of the leading producers of thermal coal in the United States, while simultaneously building a meaningful presence in the energy-royalty sector, resulting in a more diversified and strategically balanced business model.
Additional Information
The Company Alliance Resource Partners L.P. (United States), is listed on Nasdaq with a market value of $ 3.12 Billions, having an equity of $ 1.83 Billion.
With a total of 3.602 employees, the company is listed in the sector of Energy and categorized in industry of Oil, Gas and Consumable Fuels.
In the last 12 months the Company had a revenue of $ 2.25 Billions, which generated a profit in the amount of $ 244.82 Millions.
As for its main indicators, the Company has a P/E ratio of 12.74, a P/BV ratio of 1.70 and in the last 12 months the dividend yield of ARLP was at 10.67%.
The Company is traded internationally through the ticker ARLP.
