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5. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Number of Hedge Fund Holders: 5
Share Price as of August 17: $23.10
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a diversified natural resource company. In early August, Joseph W. Craft, the CEO of the firm, said that Alliance Resource Partners, L.P. (NASDAQ:ARLP) has been able to execute new coal sales commitments for delivery of 24.9 million tons through 2025 at prices above recent expectations. Craft noted that this was due to global superpowers scrambling to bolster low stockpiles in the near term and secure longer term reliable supply. The firm has already sold 8,933 tons of coal in the past 12 months, up from 7,846 tons in the previous 12-month period.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) posted earnings for the second quarter of 2022 on August 1, reporting earnings per share of $1.23, beating market estimates by $0.29. The revenue over the period was $616 million, up 70% year-on-year.
At the end of the first quarter of 2022, 5 hedge funds in the database of Insider Monkey held stakes worth $94 million in Alliance Resource Partners, L.P. (NASDAQ:ARLP), the same as in the previous quarter worth $79 million.
Among the hedge funds being tracked by Insider Monkey, Delaware-based investment firm Magnolia Capital Fund is a leading shareholder in Alliance Resource Partners, L.P. (NASDAQ:ARLP), with 4.9 million shares worth more than $76 million.
In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Alliance Resource Partners, L.P. (NASDAQ:ARLP) was one of them. Here is what the fund said:
“Alliance Resource Partners, L.P. (NASDAQ:ARLP) rose 20.3% in the period. Alliance Resource Partners, L.P. (NASDAQ:ARLP) reported 1Q22 revenue of $460.9 million, +44.7% Y/Y, but down 2.7% from 4Q21, as a result of lower coal sales volume due to previously reported coal shipment delays. The company reported 1Q22 Adjusted EBITDA of $152.3 million, +61.5% Y/Y, and +16.9% from 4Q21, due to higher realized prices for coal and higher oil and gas royalties. The company also raised its 2Q22 cash distribution to $0.35 per unit, implying a 6.7% annualized based on the stock’s 7/13 closing price, and representing a 40% increase from the 1Q22 distribution of $0.25 per unit. Additionally, management now expects to deliver coal for $54-63 per ton in 2022, up 16.7% from January’s estimate of $49.05-51.25 per ton at the midpoint, and to sell as much as 37 million tons this year, compared to previous guidance for as much as 36.7 million tons.”
