Added to YB: 2026-09-10
Pitch date: 2026-09-08
ARLP [bullish]
Alliance Resource Partners, L.P.
-0.63%
current return
Author Info
Fides Capital is commodity & emerging market focused with interest in sector investing strategies. Sign up for the newsletter.
Company Info
Alliance Resource Partners, L.P., a diversified natural resource company, engages in the production and marketing of coal to utilities and industrial users in the United States.
Market Cap
$3.4B
Pitch Price
$26.94
Price Target
N/A
Dividend
9.06%
EV/EBITDA
5.40
P/E
12.91
EV/Sales
1.80
Sector
Oil, Gas and Consumable Fuels
Category
value
I am buying this Coal Company - Alliance Resource Partners, L.P.
ARLP: Alliance Resource Partners offers cheap cash flow and low leverage: 5.4x trailing adjusted EBITDA, a 10.4% free-cash-flow yield, a 9% dividend yield and 0.59x net debt/EBITDA. Contracted pricing muted coal-price volatility, while mostly committed 2026-27 volumes defer potential repricing upside until 2028. The key risk is that borrowing for royalty investments becomes structural if coal cash flow does not recover. Start small and add on weakness.
Read full article (6 min)