(ARLP) Alliance Resource Partners - Ratings and Ratios

Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a diversified natural resource company specializing in coal production and marketing to utilities and industrial users across the United States. The company operates through four distinct business segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. Its primary product is bituminous coal, extracted from underground mines and sold to electric power generation and steel production customers. ARLP manages seven underground mining complexes strategically located in key coal-producing regions, including Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia.

Beyond coal mining, ARLP holds and leases oil and gas mineral interests, equity stakes in energy projects, and coal mineral reserves. The company also operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana, facilitating efficient transportation and export of coal. Additionally, ARLP offers advanced mining technology products and services, including data networks, communication systems, proximity detection systems, collision avoidance solutions, and data analytics software. These technologies enhance operational safety and efficiency for mining operations. The company exports its products to international markets, further diversifying its revenue streams.

Founded in 1971, Alliance Resource Partners is headquartered in Tulsa, Oklahoma. With a market capitalization of $3.346 billion, ARLP is a significant player in the coal and consumable fuels industry. Its financial health is reflected in a P/E ratio of 9.41, forward P/E of 8.95, and return on equity (RoE) of 17.29%, indicating strong profitability relative to its equity. The company’s stock is traded on the NASDAQ exchange under the ticker symbol ARLP.

3-Month Forecast: Based on the intersection of technical and fundamental data, ARLP is expected to maintain a stable price range of $25.50 to $28.50 over the next three months. The stock’s short-term momentum, indicated by the SMA20 ($26.58) moving above the SMA50 ($26.21), suggests modest upward potential. However, the SMA200 ($24.96) remains below current prices, signaling cautious long-term sentiment. The ATR (1.02) indicates manageable volatility, supporting a sideways to slightly bullish outlook. Fundamentally, the company’s strong return on equity (17.29%) and reasonable forward P/E (8.95) position it favorably for income-focused investors.