This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Alliance Resource Partners, L.P. Increases Quarterly Distribution By 2.1% To $1.085 Per Unit: Posts Record Coal Sales And Production Volumes And Reports Quarterly Financial Results

Stocks in this article: ARLP

Consolidated Financial Results

Three Months Ended September 30, 2012 Compared to Three Months Ended September 30, 2011

As mentioned above, results for the 2012 Quarter were impacted by an asset impairment charge at our Pontiki mining complex, which was idled on August 29, 2012 following a closure order by the Mine Safety and Health Administration with respect to the Pontiki coal preparation plant and associated surface facilities. Sufficient progress has been made in our efforts to improve the near-term cost structure at Pontiki to justify the capital investment and expense to complete the first phase of repairs necessary to allow the complex to resume operation. Repairs at Pontiki are expected to begin shortly and should be completed by the end of the year. By resuming operations at Pontiki, ARLP expects to recoup the required investment for these initial repairs and preserve potential future option value for the mining complex. Nevertheless, Pontiki continues to face significant uncertainties regarding the long-term viability of its operations once its 2013 coal sales contracts expire. Given these uncertainties, we determined that an impairment of Pontiki's assets was required in the 2012 Quarter. The $19.0 million impairment charge primarily reflects the adjustment of the mine's assets to the fair value of equipment currently in use at Pontiki that could be used at other operations.

On the strength of record sales volumes, coal sales revenues rose to $499.0 million in the 2012 Quarter, an increase of 5.3% compared to the 2011 Quarter. Higher sales volumes, particularly from the new Tunnel Ridge longwall and the recently acquired Onton mine, pushed coal sales volumes to 8.9 million tons in the 2012 Quarter, an increase of 7.0% compared to the 2011 Quarter. Increased sales volumes more than offset reduced metallurgical coal sold into the export markets, which drove total average coal sales prices lower in the 2012 Quarter to $56.00 per ton sold, an $0.89 per ton decrease compared to the 2011 Quarter.

2 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs