Miller Value Partners, an investment management firm, published its “Miller Value Partners Income Strategy” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy lost 17.7% in the second quarter of 2022, underperforming the 10.0% decline for the ICE BofA US High Yield Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Miller Value Partners Income Strategy mentioned Alliance Resource Partners, L.P. (NASDAQ:ARLP) and explained its insights for the company. Founded in 1971, Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a Tulsa, Oklahoma-based diversified natural resource company with a $2.9 billion market capitalization. Alliance Resource Partners, L.P. (NASDAQ:ARLP) delivered a 81.41% return since the beginning of the year, while its 12-month returns are up by 194.73%. The stock closed at $22.93 per share on August 01, 2022.
Here is what Miller Value Partners Income Strategy has to say about Alliance Resource Partners, L.P. (NASDAQ:ARLP) in its Q2 2022 investor letter:
“Alliance Resource Partners (NASDAQ:ARLP) rose 20.3% in the period. Alliance Resource Partners 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.”
Our calculations show that Alliance Resource Partners, L.P. (NASDAQ:ARLP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Alliance Resource Partners, L.P. (NASDAQ:ARLP) was in 5 hedge fund portfolios at the end of the second quarter of 2022, compared to 5 funds in the previous quarter. Alliance Resource Partners, L.P. (NASDAQ:ARLP) delivered a 29.33% return in the past 3 months.
In June 2022, we published an article that includes Alliance Resource Partners, L.P. (NASDAQ:ARLP) in 10 Best Coal Stocks To Invest In. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.