ARLP - Earnings call transcript Q1 2024 | Alliance Resource Partners, L.P.

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Operator

Greetings, and welcome to the Alliance Resource Partners First Quarter 2024 Earnings Conference Call.

[Operator Instructions]

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cary Marshall, Senior Vice President and Chief Financial Officer. Thank you, sir.

begin. may You

Cary Marshall

well and Partners operator, operating Earlier morning, outlook results this and market on Thank and conditions its welcome, first Resource reiterated as those discuss released will XXXX. and our quarter Alliance perspective we current you, for now everyone. as XXXX results, financial

will remarks, Following call answer our we prepared your to the open questions.

filings our variety Before beginning, contained from to include a of forward-looking the Exchange uncertainties may to Securities in a this reminder also Commission time our press remarks that with time and statements today release. some reflected assumptions risks, of morning's and and subject in are

events While more underlying partnership incorrect, or no actual these new forward-looking whether available expected. or as of currently has a revise by these so. obligation from to future otherwise, information results may risks remarks, assumptions prove vary providing materialize of are we any these forward-looking our update based or materially law projected to or on statement, if one or In to result do us, unless those required if uncertainties the statements or publicly information,

SEC and differences certain these we of on website this of also which reconciliations Form been measures. non-GAAP release, GAAP has on the the measures directly X-K. most and Finally, posted Definitions our at will financial and financial non-GAAP the end comparable discussing be furnished measures financial the contained between are morning's to press

then call Executive his begin to a for first update Chairman, the Officer, the our XXXX of an required of results Chief turn our comments. and over With review quarter, of I the out for Craft, way, guidance, with preliminaries Joe President the give will our

of to the year. delivered start dedicated team start results quarter our me that Let the and a good recognizing entire by first solid efforts

ton price quarter lower per to and by adjusted EBITDA more coal offset sales and royalty expense volumes performance XXXX oil by than was higher ton average factors gas quarter. record first These higher led per segment sales and coal volumes. compared were Our the

X.X declined increased while volumes the X.X sales production XXXX tons million million X.X% coal coal to Specifically, to tons compared quarter. to X.X%

position low for XX.X% winter coal prices. Illinois were the minerals gas the oil for In gas volumes mild and X.X%. Basin, in volumes increase weather year-over-year. a XXX,XXX impact record of down lessening contracted up an contributed our and of natural sales Appalachia, XXXX the oil Our and to And X%, they equivalent, were increased to sales Royalty barrels volumes quarter

down per per as the in the benefited in reflects coal X.X% prices $XX.XX Coal XXXX, XX.X% in of sold X.X% At $XX.XX time, the the XX.X%. same per in decline rose increase average Illinois more strong XXXX sold. which export offset effects than coal residual sales a the Appalachia. Illinois to X.X% sequential sold the to sales Basin price by increased decrease largely sold was was sales in Appalachia ton a ton Appalachia compared price The X.X% Compared and in markets quarter, by by quarter. to ton ton Basin per

average versus segment, X.X% were sales were per per oil down quarter, of barrel royalty of the lower realized Gas & sales barrel realized prices equivalent commodity Oil lower our In oil average Sequentially, reflecting equivalent. prices prices. XXXX X.X%

a expense from year-over-year. royalty $XXX.X portfolio total, well reported were of a across normal adjusted In XXXX X.X%. adverse as inflationary pressures XXXX. sequential tons material increasing in continued our X% segment On $XX.XX, tons royalty royalty coal per on and operations to basis, down coal quarter, ton with primarily X% Segment cost X.X% XX.X% volumes sold period ago year as were of an XXXX operations rising Our result ton during costs. X.X% revenue per labor sequentially. our Sequentially, was coal a revenue higher following lower quarter $XXX.X as to royalty late and was per million increase coal conditions the due royalty and coal return up prices coal EBITDA million, in geological the consolidated and X.X% costs up the versus higher ton maintenance for experienced

our For we one longwall move completed the XXXX quarter, mine. at Hamilton

For the Medtech each with moves to second Tunnel Hamilton, we have Ridge. quarter, expect X [ and at X longwall ]

in relating we XXXX [ XX-K included in recent Form million booked not our this our of the accrual accrual this expense litigation quarter, as as we the SEC. During of with year to ton $XX.X of EBITDA in filed adjusted segment figures. operations, ongoing have we characterize February unrepresentative described a certain our settlement the Because ] per most it

at the end during XXXX at balance of $X.X partially of approximately by accrual we and mining of have $XX.X Since our our a accounting own offset the The of in fair increase the million. to at electricity quarter change property, pilot book mined increase of value value digital partnership's the litigation at $XX was the million plant expense new the underutilized end net valued reflects the digital load the second started assets fair the In then, an value crypto mine. paid our to for half XXXX we Bitcoin quarter. million. mark-to-market adoption the equipment in yet guidance quarter. of already of was Riverview and project The mining as in now XXXX, reflect Bitcoin monetize assets the

ago in $X.XX in revenue and quarter quarter attributable compares or $XXX.X period. unit lower Sequentially, was income million which total higher year ARLP Our per net to the million was for reflect XXXX income and decreases EBITDA to up net These operating million $XXX.X ago EBITDA the $XXX was the XX.X%. up $X.XX or $XXX.X to XX.X% costs. per period. which the was unit, XXXX in million, compares year

turning cash cash. quarter. generated Alliance flows and of from million the balance our sheet in activities to Now XXXX $XXX.X operating uses of

$X.XX paid of $X.XX as million XXXX. our quarter $XXX.X Subsequent to is per underway, unit. a for invested of expenditures end, quarter we X, distribution quarterly to our in unit, capital and distribution program capital of quarter, payable of unitholders record XXXX the we announced the May quarterly During per as we current well

we implied appropriate including quarter-by-quarter previously, distribution and opportunities, service discussed Board yield wide distribution factors, a a costs. current the the levels range needs, on of after basis As investment on have considers the capital considering our coverage, units, debt

of XX% February to successfully to replace entered million our as pleased senior million are increased into our $XX prior facility We ratios XX maturing leverage million, term and total a and equipment financing to group X.XXx X-year our that debt new report XXXX X.XX support increased on balance receivable were approximately lender matured $XXX $XXX net to in continued trailing total November to XXXX. by At and included accounts sheet. adjusted the by end, loan EBITDA, months securitization and liquidity $XX.X we amortizing cash million which quarter our

on believe to million execution various financing outstanding to senior the of expect currently are $XXX.X us retire throughout the flows We balance and and a options, operating using attractive our today. of stages XXXX that notes at available we of cash combination are

release. this detailed Now turning to guidance morning's in our

We reflect volumes, our net modest quarter. make during sold, guidance that are sold, We full adjusted segment expenses. and did to per year contracting priced royalties occurred per slight activity royalties price ton unit ton our for the expense coal coal updates tons sales sales to XXXX committed and EBITDA volumes, reiterating sales

anticipated typically was light our million a of approximately the quarter, quarter, of QX no tonnage or XX% committed reminder, at midpoint At our As a the range. XX.X for seasonally XXXX different. and XXXX the is tons sales of end contracting guidance this year our was tons

currently tons tons the market markets. million are to XX.X X.X while Of that domestic committed the total, are to committed export million

to the be for half in the back anticipate to unsold of in year sold continue for most our export occur sales the We activity and the markets. of coal XXXX

our strong results relates oil Finally, and start the segment, quarter a gas as it year. to our first to signaled

early still X.X some year, XXX,XXX and X.X we are XXX,XXX the remain to gas million oil volumes as today. X barrels. million of of is to it There upside reiterating that if guidance for million volumes to to of conditions our be liquids could barrels, natural Given these are X.X Mcf, they market million in

And the his call for comments previously the and guidance outlook our The discussed. turn I'll remainder market that, ranges to the on Joe? for of remain ARLP. Joe with over same as

Joseph Craft

XX% good their resilience, results full morning, over into at for deliver during equally to our want Alliance to to hard start XXXX year. relative be and Thank expect our to continued an order updating our the and as everyone. levels full sales you, quarter revenue I months the to and my and X year. entered with begin We priced that XXXX in as organization we will book modest first committed our entire strong sales the contracted and delivering comments did coal guidance XXXX. year last dedication And excellent thanking and to that book. summarizing made be work XXXX,we continue safe XXXX. Almost solid another by job anchor coal volumes for quarter, Cary similar solid the updates of a

guidance are suppressing year natural our demand, coal us will for we low the to confidence have this domestic to sales export year. demand While gas prices supporting available remain continue the market

year. predictable several that We belief also areas that due adverse have to the expect this our geologic moved more year last beyond faced be production our we to we

the themes are and the think anticipated significant we electric we Data and center demand emerging. by for growth years. intelligence growth in domestic As electricity industry the about vehicles artificial over load are the and markets key coal manufacturing, driven several battery led several by serve, industrial driving next outlook

increasing baseload the The few of need the shown affordable for about months its grid and nation's rapidly This reliably have rising fuel to expectations. outlook generation. no serve critical ability underscores for reliable, shortage electric past load concerns

talk those examples, let in could I me highlight While X particular. hours for about

the over. the investment to ago grid X-year for power $XXX projection grid the peak XX-month a window. clean the in filings, flat a the -- billion a near-term of demand of of just to grid large report, load outlook is driven That's growth FERC from according demand has First, in gigawatts X-year XXXX XXX era year in report. to X.X% just X.X% strategies doubling initiatives the nationwide gigawatts XXX from to According

continues electricity all new data not that other but ramp center motivated This to as the expect is up sources. power fossil premature set closures XX/X. affordable types politically just reliable, hamstrung of This highly is coal-fired demand attributable fuel regulatory driven industrial portfolio the be of customers to loads require forced rather investments even unexpected nation's to new in manufacturing, generating by facilities, supply and and

even round Beyond making less possible. ability the of clock to not the The cases, transmission renewable investment in come far regions sources resources, to expectations, supply renewable needed shift utilize availability. obvious -- or high-voltage has the those for to limitations actual in close practical many across

battery forecast Hampshire a is for it, combined, to op-ed become power example Street annual data in a in March "The that winter by PJM's coming demand climate and from point". breaking could are In chip rules York increase power new XX, published what other growth demand the the they growth in Wall XX-year crisis, to New Micron New Another more EV on power facilities. entitled and recent electricity plant Georgia forecast pushing draw of among in is recent and cited Power's examples. XX-fold XXXX AI a Journal Vermont doubled expected grid centers than and states the and

essential being how of centers these how equivalent large U.S. already in data know, the on decade as vast we running Post warnings Northern clean planned capability is Texas, serve transmission coal and reactors the of Washington entitled America power the the of interruptions power record said. to heavily existing and United Finally, States to baseload out energy-consuming without facing Environmental Agency, an in is Georgia's levels. finalized tech practical grid that expects "Mid public power" described running frequent of X, designed is demand end risk the explosive several they providing article industrial be of realities shorter are investment. Thursday, at Virginia all nuclear due works, regulations several demand, to to saving at the and the of grid facilities. it, In to pre administration was materially are Notwithstanding centers Biden of states. before last shortages of service plants March needs through the growth close they Protection the data the the major out of published Arizona

new and EPA EPA's warnings that Power in that needed Plan to adequate Power and followed overreach out the In evidence first the no to there coal last Association basic kind as electricity." also clean saying, the and refusing electricity statement to dispatchable ignoring account They providing. Supreme to U.S. for related rules, America's the response the sorely closures; describe replace endangers experts is in is rule plant supply generating capacity the replacement to X.X these is new same National called the to fact Mining three, for from week ready that dependable a Two, clean by soaring. grid that demand affordable disregarding irrefutable one, validated of power is caused response Court "The of issued unlawful extreme reject "an plant that power plan, XXXX." Clean EPA's America overreach coal

meet. the of physics impossible is we believe that trump the will day, it bad At view policy our is end to always that

sufficient for final neither of capture are finance says CCS permit, that demonstrated adequately U.S. For a there "best "Section the time CCS investor-owned example, is for Act can we demonstrated. the responded the electric XXX storage. Air "adequate yet pollutants address ready not by plants EPA compliance all is the sources by nor the Editorial Edison rules emission in "We did the -- Electric of association and The regulate to Wall the the is about capture the best Journal weighed from XXXX. substationary representing concerns and interest of Street companies build raised full-scale also reduction agency writing carbon infrastructure Board " Carbon needed disappointed Clean to not nor that economy-wide of for system Institute through the package power deployment, EPA trade

to commercial emissions plan in from no capture " co did. They one fire and went world only by plans scale another say to unveil existing on the year, rule plants last plants. to gas-fired reduce carbon "EPA of use As way, gas COX the soon

much fossil is So fuel global about powered to will at Meantime, demand. to shut slot supply coal some of the effect renewables realities designed XXX fleet. electricity dependence added on gigawatts temperatures." The X have and China as on coal last transmitted them generated support on as entire of the look expected years change no directives fundamental greater the we how may and U.S. as Government has and also down. over have about cannot of Biden

to in plants co it we is markets of know reliably delays see we Our will to premature the and for keep to closure many come. affordably customers, lights job committed whose to years believe these why That this. extensions on is and are the the why U.S. critical serving continue and

Over of quarters, the extended past have we for gigawatts few result utilities and generation see a of and demand as XX coal-generating approximately the to life increasing increase. delays construction capacity planned that of replacement number room electricity of the operating in

structure their in to productive, extending mine related lives. and These from year, turning infrastructure Ridge, well-capitalized projects, Tunnel benefit expect This mines strategic updates more our making major Riverview overall Now cost segment, will at these and coal them complex. our Hamilton, projects to business. to improving payout our Warrior complete we already their

reliable, a to as expect for producer our most we to come. operating in the low-cost many years result, regions our As position maintain

Turning royalties and we in the record segment, the cash which to exposure growing the prices to Royalty XXXX organic first our to oil business, and quarter gas of year. remain growth. again delivered offers, potential committed commodity segment this volumes hedge-free We in like flow the our and

segment meet that opportunities for a are our grow market. standards we We investment as in looking current to seek this underwriting tight

we gas align opportunities our in pursuing we our Outside core and such, other coal royalties As and opportunities core active disciplined that as of highly with competencies. mineral additional remain will operations acquisition remain business, oil emerge.

significant to over XX public a soon of company established segments many experience as us years spectrum. value across add to energy position the and relationships strategic be Our

and number believe set initial strong You for the of have investments, line thought future year. were another potential. of growth business be cash with seen as be a tone which quarter flow our closing, we lines expectations and these In our platforms for first in generation what should of results with will potential long-term

in forward now us grow That of call Our of our in that front flows I and what cash encouraged comments, I'll be year positions look remains questions. a generator another ask the open the operator concludes and XXXX. the us should by unitholder opportunities partnership successful for to am strong delivering to value. to prepared

Operator

conducting session. now a We will be question-and-answer

[Operator Instructions]

Martin the the Our of first question comes Benchmark Nathan from with line Company.

Nathan Martin

Congrats on year. to with I lead the strong start off the the market-related wanted question. to

of how a downward usually electing For perspective. to domestic high is customers only looks low the exports minimums. you the know tons to stockpiles first mentioned bit the with you maybe I domestic do increased of Kerry, a guys added shift from commitments some assuming about there seasonality But was in that and a quarter the XXX,XXX take has like.

would Would to further your the domestic It talked stockpiles get what's with to any great are mild be that customers be going? given shift? and on about. How expect conversations there we've low already prices, you that gas thoughts driving just pressure winter commitments,

Unknown Executive

Yes.

result minor specific that into some production to pressured is, into back to that curtailed a market be do as more little the in to negotiation gas We some where bit to natural market see years to being that tons think try that one of prices. out did low balance. continues to by bring I change gas extend a natural the

bit finish current year strong the strip end as of We're it and seeing going we the moving a projecting suggesting. that natural is price we to of the gas towards think speak, similar up little and what will

the have is as to contracted will have the are we weather obviously. believe a summer tons will impact, we But lot guiding to. this do year is your what today, based a will we -- what that answer that on case because delivered we on be believe those that an depend lot this the depend So question will

year, beyond We've solicitations that or for in different are looking all or RFPs are multiyear them currently multiyear, negotiations or are expect we several seeing we're this As got bidding solicitations. for bidding we X of contracts.

So we are the position to great to markets, current maintain the that over said X next this And we'll at comments, X feel confident in feel be levels. we're opening us. years, we our in believe as I volumes we're year open projecting export a complete as to to my we able

Nathan Martin

like commentary XXX,XXX Appreciate you to look the more, alluded just 'XX? those some marketplace same on those along the seeing that then a comments, reports little 'XX, on maybe you It could we so kind tonnage can or tons. And looks from kind maybe tons, view? rollover out you in maybe did give any there of us any Joe. maybe Just add And export? prices of then lines, what compare bit that, on what it's like we're whether to we domestic of First,

Unknown Executive

Yes.

than that of enter prices. pricing contracts that we the So what would higher a the bit levels as in into market were the spot you current were quarter at did quite the see

believe we forward recognizing do going of that the to grow because years to we're our we LNG as will So out that in and are what natural constructive more be is gas move compared pricing currently. demand customers experiencing

I like days. think we these people recognize that inflation in experienced the customers most our that also have world

as adequate to to for far them in be there want keep their to that there to conversations long so in term, to term are invest we well. plants they continue have as been they be open make for for And understanding the industry so our the margins long the to need

so based on experience, encouraged got X other to. we've solicitations there So -- out far talking but others we're our that we're

tuned. stay So

Nathan Martin

guys currently is we're from one. any then port a maybe it. seeing that -- Baltimore Got Okay. experiencing? ARLP impacts final the the And you Are just outage

Unknown Executive

not. are We

for like one We -- that vessel little have we year. had very just the nothing

not our through of do shipments most Baltimore. So go

And any impact have not impact we indirect us. any really direct haven't time. this So moment at we to seen seen in

nonevent a for been it's So us.

Nathan Martin

Okay. Yes. specific. I should it. guess I been Got have more

it impact you like outage, any if in. guys Just no material sounds to because the of pick wondering up business but were able

leave I'll helpful. appreciate Very I time. Okay. there, it Joe. your

Operator

line from comes of Capital Reichman the Our Mark Noble next Markets. with question

Mark La Reichman

end for Thank the you. Appalachia guidance ranges. the of Prices were high volumes and above Illinois Basin

to if -- for the you're And the the was that that low to balance your imply year? if of just are Just that I was so pricing we from export volume more does to closer volumes. about be export market, curious in thinking do export the more kind just end? end maybe of the of for And balance expecting guidance might you within versus the the how XXXX, for range kind high be of XXXX

Unknown Executive

quarter the reflects I book. think the pricing contract for our

and based we quarter, the year. for both So the into contracts going first second our had most off are sales our of quarter

lower $XXX go will down the given end back API that of to So successful in the will upper we've expect those achieving us be prices million we're if that we're ranges that would the of in million X the at as the trend year, we levels, that export at looking our end $XXX guidance we in pricing the to to range.

So for we've we're what us that's we complete XXXX. is year, the for finish our book export the for back that targeted the shipments in to to expect going believe to reasonable need half sort of to of that

Mark La Reichman

then potential could share just light mean, the I on risks? mining some additional bitcoin any activities, including rationale the and you And

Unknown Executive

Yes.

I due monetize operations. potentially just just particular at to an I be we've my And think, that were remarks, we saw as was XXXX, it for looking excess back to had. a we asset mining that to mining Bitcoin just we got relates prepared to that mentioned opportunity it in the our fact that in able Mark, as way activity, power the

there in we Bitcoin into at enter mining that miners been XXXX have particular late so purchase and into mining time, some And XXXX. and area the ever point to chose

up with we anything ended what terms at XXX actually at miners the these end associated -- We're quarter, of And about that you we buying of bitcoin of if We're nature. own. with quarter end that the there or not mining look in the bitcoin have. we bitcoin out

Unknown Executive

to need cover our selling we what And we expenses. are

other of extra center capacity for the take to out data built exposure Bitcoin our that miners energy to we we've So some advantage have renting Bitcoin And mining that the we're we this limited. have. cost low effectively within do is

Mark La Reichman

Oh, I see.

one that. appreciate I just final Well, question. Okay. And

I a I you're done gas oil do weighted -- more you mean, I was it's really you really what's the how that going about and oil. there continuing? wondering guess Do of And in driven to just kind terms You've great right business. you're now, acquisition job thinking by Or see the out opportunities. growing forward. of

you do kind thinking continue in will But to -- preference LNG gas? anticipated you a your oil is exposure of maintain change this in natural to growth or for any way with respect

Unknown Executive

today Our X the has focus and Basin. really the years in Permian been last for

focused So liquids of been space. we that. do more continue we'll And oil the I have the on side and gas to think

little move As time. a the more the into of gas as exposure Midland in at far our bit strategy gas have it as than changing not what the have moment royalty for our in we in Delaware, looking we're the more we liquid this business but side do does and oil sector

Operator

Dave comes next with of the from line question Stonegate Our Storms Capital.

David Joseph Storms

moves that X the you're Just infrastructure you mentioned you And in hoping have many I logistical should challenges because know of moves Do expect a around longwall projects the longwall any the of how sense expecting half you in second that quarter. additional we year? mentioned? second the

Unknown Executive

Yes.

in longwall upcoming to the we longwall the actually quarter. moves, it As X moves relates have Dave,

our of one operations each X at one So Illinois Basin, in in which Northern the would be Appalachia. longwall

quarter in X the anticipating quarter. quarter, move moves longwall in third you we're If third fourth the of longwall the X the the in look and half year in back

David Joseph Storms

coming little helpful. quarter. outside the of quarter whole if about and the bit outside the coal very then And should in sequentially. that in we have it's purchases you year That's had Understood. throughout -- foresight. also you down like a the It thinking maybe looks next balance be then purchases of How

Unknown Executive

Yes.

at the they when the -- in to basis, of of continue through I the those so. it $X look a think was as the balance year, a level, came in balance I We quarter the of I on more that the $X or we you coal right or for neighborhood anticipate going-forward not year. million to do for purchases million about think throughout on look year, but quarter, think the

David Joseph Storms

for is then if and XXXX And the spot order are how quantify how market? to one is and missed me. more contracted -- I just helpful. your much this, much you Very apologies Understood. you book Are exposed of to able

Unknown Executive

particular So at we've when you million in XX.X time. this committed got order point book, look at tons our XXXX

Our from XX.X million million is, to overall guidance sales. XX tons are of anywhere range

take of if guidance about midpoint the you range, So that it's XX% committed.

Operator

question of from Marsh next Singular Our comes Research. David with line the

David Marsh

some very on echo Just got previous the comments quarter, good. you

Unknown Executive

Thank you, David.

David Marsh

quarter. the of the just better the little more need us I up coal? because than like It volumes give did or -- bit Could positioning sequentially there was sold on a produce outside previous bit what regard with understanding question in to follow the inventory just just a wanted of the purchases. you purchases and to the you looked outside up your ticked a is for bit incremental outside

Unknown Executive

associated outside sales throughout benefit us the coal metallurgical operation, a this most for part year. with purchases to year Really, that our nice Yes. blend and we allows tons our in it's metallurgical met for that really our just related this is put

David Marsh

follow-up how you just of potential the the taking timing, throughout alternatives? Could those. course then mentioned And some guys the alternatives comments, bit terms on and those in of talk those about out. about And feel you just what some of notes take talk those your Cary, about notes Okay. you your timing financing more? out a You to a year. plan Can little around

Unknown Executive

that. to glad do And Sure.

do do. in different have options like prepared go in I some in are We point this my to those as senior are those looking -- that senior remarks, are the of what time. would There avenues refinancing markets down couple could think, terms that open particular at at we notes. we of a we I refinance the mentioned is notes. We --

much But going get as I that but different particular down this don't point time. specifics of at into want we're point it at it too this relates in avenues time, to couple to a in there's

here done a we look As the get so. we that, that over months are or at take to next X looking

a X taken the So care hopefully, months get throughout of position be to we'll completely all or next so. that in

David Marsh

Bitcoin repay as risk. of not Well, guess, Well, just or sounds like It that's going produce a very a a low information. sounds inventory stuff. mining helps maybe you there. insight to interesting, new are you're That like interesting -- information guys some little that -- was of the is bit, kind to to I playing little more inventory that really

Unknown Executive

now, of our generally we're costs. be basis terms Yes, a and to monthly to on that, clear we're right we're doing selling operating the and what in on mining bitcoin, cover

we are over time. So accumulating actually Bitcoin

So bitcoin And quarter we million. mentioned, valued hold right I now. that do $XX at as was about at end, XXX

So to do that. continue we'll

Our is today. costs where the pricing lower than are bitcoin

So to we a basis. monthly coins anticipate on accumulate would continuing

David Marsh

about you costs Could operation? your talk that rates production to relative production and your

Unknown Executive

month. little kind if mine of first it -- as expense a just a Yes. was per of kind was first our take our here at look over we these coins. past We the and having event operating it underwent $XX,XXX a per was coin quarter at over of bit just you look the quarter, cost on coin just basis look kind -- in average the if what this But you you if average at

first in look quarter. at we when mined bitcoin XX retained first overall, of first XX we the in quarter. bitcoin quarter the those So We the

about XX%. sold we So

of to particular to on bitcoin in our you gives least a turns there's that. out the got basis, time. that we terms we've factors at was were how our event sense into amount the see a as mined in the we'll what how so the quarterly go having costs a mining that of to in that number kind going-forward here But having were, where event, have and as we Now point first at quarter of of

Operator

[Operator Instructions]

from of comes question next Segal Our Siegel Yves the Assets. with line

Unknown Analyst

I'm Cary, I'm sorry. up What a just does not date. means? event that having to

Unknown Executive

of Well, period absolute number amount. beginning the you essentially, into from of the the get when end, is that finite bitcoin the going a expected Bitcoin over basically, and time of exist -- an to there's to protocol so bit there's

produced finite to bitcoin try trying to do. the forward at ending that effectively, the number actually And to to bitcoin meter that points various the the able the it essentially be of goes they're so along or have be reduce number, they numbers as to can approach way, in

X-year So It's participate a otherwise between in Bitcoin and universe the about in. producing bitcoin these of X- half or was that effectively of people almost the the protocol your the double, previous that result, up. set period. of cost way you're produced normal each having you're part events. goes that is as the just

Joseph Craft

years. the occurs once every event about X having Generally,

Unknown Analyst

right. All

the ask question, So do I how guess many full mine think you other your big the for year? way to a coins

Unknown Executive

event. -- course, I quarter, the benefit we first of of think the had having well, the

monetize I at bitcoin in would we think somewhere we so show the our when look the total for expenses. our year. to now mine XXX or year would would in to total, operating that some between XXX of that full projections we cover

net our be, around be it of know, the the or of ultimately So XX% number that would probably may day. end so at I don't

Unknown Analyst

Yes.

material becomes that So

Unknown Executive

now. right what it looks like know don't I

Unknown Analyst

game to your moving strategy your a changing with terms Well, has right. Just it in like evolved All of something the -- environment? changer -- remarks else, consumption earlier, Joe, the just forward. going electricity I seems Yes. guess,

grow, they that, -- continue will growing renewables So only recognition that like not but the there's electricity solve needs. and just to can't it sounds

at has the to that informed So maybe you -- tweak strategy all?

Unknown Executive

No.

it's that than will operations this coal looking some think given our -- more we probably optimism in started us I continue at some we of diversification. fact, when I longer guess

what is we thought strategy to time of we we our ago. years the entered than So at that this longer demand going extended type into believe be several

some as the at data you at -- in if and of the various of at you some components we're the and chain centers that far areas because some and located, in as the that way. there where of of data land data look are looking centers Now look growth centers some the of these be and aspect in in participating see some opportunities us for could we value things

that. So we're exploring

very relationships very, think have been by looking experience. we core different we're only those invest and/or things have and So on have in, we that that competencies focused we at skills either where as about we our things demonstrated past can

be Matrix service advances and/or consider invest with the our to opened technology those in we've various companies and And world sale on, some work going the and so to companies other we we occurring. of utilize suppliers be subsidiary manufacture then to feel to on center relate growing either in trying and what's some able technology that of may in I the and things about of things demand to that are has already significant that's areas the the for beyond opportunities can mentioned, data us as talked that previously, that going definitely like

as in in just center in billion investment The week announced announced example, $X back centers, a an of investment Google Indiana. an billion data and data Amazon Indiana, $XX Indiana. last

will those artificial national of implications United year the to China relative a the adds. are other being we course over expect continues relative several that So first as a view want first example. to mover new intelligence to mover in And this announcements as of the be be to States that made the of security in world, an significant

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Unknown Analyst

the grow you for export? last take opportunity oil To growth the an that question. of Is to advantage there coal in And you demand.

Unknown Executive

from see we export United be well, flat. thermal States -- the position don't We for relatively to

actual planning the in up markets And as be the growing on a to share, not So we're don't pick able market we coal. may we that of not see decade. some opportunity over for increase part international for absolute demand next Thermal do we that but the more see that

Operator

We have Marshall, I to floor turn no comments. over Mr. like to closing this the you would time. further back questions for at

Cary Marshall

your continued and your as to well also as Thank we well everyone And Alliance. this appreciate you, morning time on the call, operator. support and in interest

This in to time. results you. quarter Our the for call again and currently everyone call next Thank that occur day. is XXXX our join concludes and will operating we second to discuss our July hope at us expected financial

Operator

today's does Ladies conclude teleconference. this and gentlemen,

your and participation, for You disconnect this a your lines time. may you at day. wonderful Thank have

Alliance Resource Partners (ARLP) 29 Apr 242024 Q1 Earnings call transcript