ARLP - Earnings call transcript Q4 2024 | Alliance Resource Partners, L.P.

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Operator

Greetings. Welcome to Alliance Resource Partners Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce Cary Marshall, Senior Vice President and Chief Financial Officer. you. Thank

begin. may You

Cary Marshall

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

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

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

forward-looking actual projected or if if materially materialize available these or we While more results on from underlying those or are to one prove assumptions may uncertainties information our us, vary incorrect, currently of statements expected. based or these risks

of any or to or In whether as providing publicly to do these update result information, remarks, obligation the forward-looking by law statement no unless required has new future revise so. partnership a otherwise, events

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

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

caused prices. volumes in were due million. reduced weather ] than conditions and mild we were XXXX, total $X.X lower lower sulfur $X.XX. tons, Basin volumes pricing delays X.X $XXX XXXX. the was low adjusted full Whole came unit were unattractive and $XX.X earnings million gas region contend XXXX million in the elevated at primarily sales tons million was to [ across year which [ and income Tunnel XX.X The at with billion, highly for shipping mining During by -- was year Net EBITDA volumes Appalachia per revenues XXXX, full natural in ] during production to Operationally, and in Illinois export the customer high Ridge inventories, had caused coal. lower

number and year control, we throughout results us full what year's delivered and short on the capital income, While fell executed safety last we could of outstanding results. mines revenues of year our at a strategic net improvements state

fourth coal as decline quarter Turning year-over-year higher oil and transportation to the fourth prices, quarter. quarter XXXX $XXX.X as The million offset and primarily volume now by we [ other rather royalty to our quarter 'XX lower for which in results. Appalachian coal gas reduced the refer which ] 'XX and higher we lower to driven and $XX.X to million fourth revenues. was gas compared oil sales -- than volumes Total XXXX, quarter -- refer in of of the

the our XXXX of year $XX.XX. of year ton average full XX contracted strength continued order the sales our per the price XXXX ] to Due for book, in [ coal of full

$XX.XX, primarily and domestic and X.X% a Focusing due quarter a ton XXXX in on ] the sales both quarter, international per [ the markets quarter. during basis. shipments XXXX coal spot the to price X% the higher total was of versus on XXXX decrease sequential

the tons tons of As compared ] [ X.X ] to the quarter. lower percent in to was million XXXX million to relates quarter volumes, XXXX production compared total XXXX it the to -- X.X% coal [ X.X

quarters View, as Hamilton Mettiki and compared Ridge achieving to compared year-end increased XXXX quarters X.X% down were by to our to Basin, Illinois and lower to and continued and due of XX.X% Appalachia the which result volumes sales Gibson coal at inventory Total coal X.X% led Wholesales the Tunnel a XXX,XXX in sequential year-end increased particularly sequential In and and our tons River volumes was at the XX.X% recoveries. from goal. volumes challenging mines, South mining additions XXXX

sequential XXXX in acquisition in I Illinois the million drivers noncash Turning per primary the Hamilton Segment price $XX.XX impact Mine to the related deferred ton an and adjusted to X.X% increase operations an $XX sold coal XXXX of EBITDA just the of of for Basin the cost. Appalachian volumes lower discussed expense our was versus and were XX.X% The purchase adjustment and the quarters. of increase. the

our mining regards reduced Ridge XXX,XXX shipments with Missed advance impacted below carried quarter. XXXX. over XXXX be into longwall tons be Tunnel production expectations to will conditions had for Specifically unfavorable Appalachia, shipments causing the repeatedly to as

units market in at XXXX of lower by Additionally, tons to MC reduce all a XXX,XXX production at for due operating MC to uncertainty production dropping X we Mining an decided run costs. unit. Mining approximately to by We now to annual effort plan production

In our $XX.X compared gas gas revenues in year-over-year and and commodity that more oil pricing the quarter. down revenues XXXX offset quarter, XXXX realized to total volumes decrease X.X% increased million than oil royalty The and in and segment, were coal the reflects salt. lower

year from volumes sold sales oil and and XXXX increased and properties gas resulted basis and a gas quarter. while gas Sequentially, oil BOE our X.X% completion drilling royalties quarter, oil volumes XXXX per royalty of oil additional and volumes average and on gas pricing declined. mineral XXXX, interest. royalty basis. from acquisitions improved X.X% year BOE The increased full increased on and achieved the a activities to volumes on BOE record compared gas of the In coal and oil For another tons

gas ton and compared royalties oil X.X% XXXX sales per ton prices down by consistent, coal the XXXX to XX.X% quarter down versus price the lower quarter realized oil BOE average per Sequentially, X% revenue the XXXX while royalty relatively per reduced for was royalty Coal average quarter. gas were prices BOE. the was and per and revenue

prices, as million oil XXXX the mining. million a at digital the impairment $XX.X in $XX.X prices to $XX.X reduce liabilities decreases charge the and certain production sales lower realized were our million. the gas partially the for net million compared was increase uncertainties royalties, was These long-term fair $XXX and previously Our accruals MC decision coal led to by million due EBITDA $XXX.X $XX lower quarter. to noncash for our in in realized that discussed XXXX market of decrease in reflects The quarter volumes value noncash to of and income million assets. Adjusted offset quarter a

and balance cash. Now sheet our turning uses of to

X.XX net debt adjusted total ratios and total and year to XX months respectively, trailing leverage Our finished X.Xx, EBITDA. at the

issued May of reminder, June at our outstanding balance we sheet. million a Total on was which $XXX.X that seniors notes $XXX As due in redeem us the of to $XXX were included million cash liquidity XXXX. senior million year-end, in XXXX, of allowing X.X%

balance held on point valued million the the XXX approximately $XX Additionally, bit at the we of sheet end at quarter. XXXX

investing generated of coal For million free in year after flow cash million $XXX.X the operations. our full Alliance $XXX.X XXXX,

net acquisitions the acquired mineral XXXX in royalty ] successfully fourth we $X.X million approximately Additionally, XXX Basin. completed in $XX.X for we totaling gas quarter, [ million mineral acres. Permian interest of X oil interests to Specific and all

is quarter, to for Finally, quarter. the the we unchanged annualized per and distribution per XXXX rate quarterly XXXX an to $X.XX unit declared sequentially equating a distribution $X.XX unit. of of compared level This

service on a factors yield not coverage determining levels, operating cash costs. distribution generated including, appropriate our reminder, needed limited our each operations, current debt possible and business capital expected by considers As investment when cash implied multiple levels, to Board and the -- the flows distribution quarter, maintain our but to units, opportunities

to our detailed Turning this in guidance morning's release. initial

ARLP, As additional the order export to we conditions to opportunity filling move. to flex book improving see -- domestic begin is or and as up contracted XXXX should we gradually market a for customers fundamentals, market usual, want that

in administration. and of future. million of are of guidance encouraged reliability range and XXXX help plants sales years over particular, at critical many to XX% the strategic midpoint overall focused for early committed priced the of with need growing million their the of XX.XX our grid We ARLP's of XX.XX on the volumes to range. into Trump volumes in need to tons meet by anticipate coal coal electricity the also for these affordability be it's We the In demand and moves for many understanding the

in volumes once Ridge roughly Tunnel market. million tons, are and flat drove million to our new from The committed moved frigid the and this domestically consumption including at is at prices anticipated volumes sales U.S., higher export with inventories. helping higher weather district winter XXXX reduce Whole start with in year XX Eastern XXXX tonnage in the customer longwall XX gas the XXXX. increased the natural to coal of XX.X X.X the Currently, midpoint. million for of May

be both domestic customer will compared domestic and belief in supporting our seeing are We supply solicitations higher for long-term last to near-term XXXX that contracts, year. sales

by to in sold XXXX range $XX.XX which ton in to per region a ton compares $XX.XX the and which ton We compares Basin, of XXXX. to in are to to Appalachia, guiding $XX sales per in $XX $XX pricing ton $XX per Illinois sold per

is a for contracting, expectations and order full for our book both realized expected Our additional and domestic of based year the XXXX position. export on open price combination contracted our

Basin year Appalachia $XX XXXX On the $XX EBITDA to as per in compared as ton to side, to ton segment $XX of and full in $XX.XX the to XXXX XXXX. $XX we per in adjusted Illinois range the in be cost to expect expense compared $XX.XX in

XXXX Ridge at the of During quarter in another in of the longwall February XXXX, scheduled Tunnel X the XXXX. Mettiki, longwall quarter X full moves year Tunnel Ridge in at and at we have second third Hamilton move and

X projects XXXX. major a discussed expected realized offset as anticipated basis, coal On we On our volumes ] for are in be XXXX we that as longwall sales net-net quarter reasonable that the a to have years. cost assume quarter business the cost full the result coal we a is in lower a the XXXX, improvement the X over per X% and is it forecast material as pricing quarterly first roughly lower [ year be highest are finish than approximately infrastructure past in for to ton to of our moves to basis X anticipating

cost gas barrels throughout is this In coal be well million as natural The Second Mcf million expect the would barrels line of sequentially as moves of million gas X.X fluids. gas represent year. X.XX expense Segment basis, gas and XXX,XXX for million of to to XX% EBITDA expected On to X.X another be approximately of of volumes. revenues expect record the the sales and royalties ton the quarter. XXX,XXX oil added adjusted to royalties we and means to volumes BOE of sales to oil, decline natural quarter a XXXX of our volumes year we are of XXXX more business, XXXX. with balance oil anticipated longwall per X.XX cadence in

XXXX, to oil a and $XXX Tunnel are In strategic Hamilton the million our $XXX capital X-year many significantly total elevated spend million guiding million end from for to expenditures capital which This and gas growth Ridge we in low-cost mines to their excludes of period of is investments reliable River come. $XXX near as operation to of we XXXX in expenditures make down ensure years Warrior, capital long-term capital. View, roughly minerals that

Weeks remaining these projects in be work early completed from XXXX. to

XXXX. compared purposes, distribution produced has produced $X.XX. and And in ton per coverage $X.XX estimated ton per to reduced been maintenance For capital to updated

and of Additionally, with number our amount growth and ability gas we we quality the in and pursue remain will minerals in XXXX actively committed their meet upon our available business, oil the and standards. of and opportunities dependent segment this to the investment ultimate to in underwriting investing

Joe with Joe? to outlook over that, will the comments turn his for for call the I and ARLP. market on And

Joseph Craft

good and Cary, morning, you, Thank everyone.

domestic year levels. As enough elevated theme our many to prices commitments the for reduced and consistent was both concentrated throughout going the on limit XXXX sales opportunities. inventories in booking Unfortunately, control. fourth as weather quarter gas customers were than below in We and XXXX export production. natural Cary targeted resulting volumes knowing year, more low by Thus, mentioned, our held mild of we that XX% the challenges spot a entered full lower-than-expected XXXX were presented not that prices,

headwinds, mining solid operations for Appalachian Difficult the also these entire resilience Alliance results results. must team for in I Notwithstanding conditions dedication thank our and impacted adversely their our the at delivering year. full

entered full strong. completed is substantially Warrior proud year Tunnel with XX% results View, expectations. and the high infrastructure quarter particularly the of safety at statistics company-wide Hamilton, below finishing Ridge, sheet was that We balance with one River periods XXXX I'm safest the average. our and and XXXX projects below fourth ever major national Our XXXX We

prices, the market drove lower levels. and increased of counterbalance The the to costs higher at natural gas XXXX full coal production keeping start coal segment improved expect We our contracted prices solicitations year long-term winter approximate across reduce more near coal contracted and year and cold margins We're inventories. contracts book both consumption helping customer supply coming customers' closely to the levels near-term in seeing significant for facilities, typical weeks. anticipate our weather

longer-term on capital maintaining And driven utility growing infrastructure unprecedented The expansion developments, data combined recognition strengthen, Energy, several centers Leach, grid transpired The one coming to by don't online, towards ] align their considering us outlook resources, fleets. this to growing energy rapid executive the by mentioned amid including physical now an explicitly focus our of shift already suspending plants. X under the of heard from new you've extending particular support baseload for demand and limited generation of MISO and including their the emergency on-demand renewables highlighted withdrawing in reliability the their beyond of in has keep our of and increase that value. and reliable operations framework signal markets with baseload accords Recent an should markets, capacity a nuclear in XXXX This fundamentally Glenn clearer. burn PJM expected baseload as for gas that time administration's the is across [ some co-plant environment capacity regulatory continues growth increasing note to and utilities continued no construction the energy with nuclear and and is only Today, to is sense coal that and Driven of in coal regulatory The are need subfund Paris forecast AI tenfold PJM's generation payments expensive we or common coal an demand. operation produce declaring actions administration. natural have power particularly reliability. and power, these realities discuss a has reshaping can the across our generations now call, increasing mix regions. assets planning A never strategic this approach early previous order new cycle last American on grid been gas policy. reality, factors: reflect where either coal

with acreage. achieved modest On record the additions volumes oil and our once we in gas XXXX, even to royalties again front, overall only

remain minerals makes portfolio volatility price commodity While we our investment growing maintaining to our acquisition underwriting gas oil timing and while unpredictable, committed standards.

long-term flow favor royalties We over and continue gas to the oil overall cash becoming the part generation profile in and are unchanged. an large the of portfolio our it expectations increasingly business of

digital million during mines. to which $XX.X in has monetize capacity as Another year again electricity net previously mark-to-market been mining underutilized operation, positive positively with highlight project operation of assets. Bitcoin our XXXX in full notable at a value disclosed our the during as This a pilot our impacted load income our XXXX change XXXX

million digital our of value fair bitcoin on assets $XX,XXX. the at mentioned, price based of was Cary roughly year-end As approximately $XX

of Alliance, we XXXX million to by affordable needs, which mining business. replace creating $X.X sustainable across invested existing remain X/X reliable, while focused total approximately efficiency royalties our we and on value energy quarter, XX%. fleet operations baseload both improve coal the our Bitcoin will providing In During

and improvement capital costs capabilities grow positions We which significantly With complete capital our positioned for have largely market cash at return projected levels, capital generation minerals improving to us inventories are and our execute to a units. programs improve, sheet balance business XXXX. strong assets our strategic investments normal conditions across well cycles, and our industry-leading to we at business

questions. comments, open the ask Operator? to and prepared the operator our I'll concludes for now call That

Operator

[Operator Instructions].

Nathan from is Benchmark question with first Martin the Company. Our

Nathan Martin

Cary. Good Good morning, Joe. operator. Thanks, morning,

start around coal Given those general? markets as I thoughts ARLP's weekend all could of retaliatory the Joe, your the discussions potential want over you in on today, how just tariffs to the really out recent and some as any impact well for asking tariffs business announcements believe

Joseph Craft

It's knowing President hard on totally focused achieving. is question, exactly to not that what Trump answer

beta deal most clear Mexico, think border. focus the the I in with on try on Canada to is to one it's message recent and that

think so Canada of efforts tariffs like don't I any to speak, is to to. the So maybe are create type war, tariff intended that reacted for

me So his it that largely utilizing to tariffs negotiating. think appears efforts I is

hard really exactly impact to perspective, my that know us. from it's may So how

Mexico, limited. it energy the I today think I from be actually specific back benefited I'm there's had to that saw Canada would believe. has not products price any us. We impact it on and sure that energy. it mean announcement, I they've that that would dialed

As we're that, do we China that any of tariffs impact. We that see us there much. domestic that beyond that are products Europe don't impact as have based. our far will should that now not right Most the buying be products

anticipating at not this But we're Washington, anything D.C. fast moment. things in are moving So

what's hard with to tomorrow. So to really any it's happen going predict certainty

Nathan Martin

the total commitments. Makes sense, Joe. to Shifting

You guys committed since quarter. looks market domestic like an additional X.X for million last tons 'XX the

levels cold sit should goal weeks. you tons, you I you million-ton book get mention that Do retirements the in domestic normal the XX.X But at have to plant How you we've clearly, point, seen believe, As shipments. the trailing that this should million-ton guys you coming delayed. XX continue in or get contract confident and number? historical XX levels match closely at the million did are more to for of weather kind need can Joe,

in domestic years. any think finalizing just tons last of back Additionally, commitments million get said we the nearly process Can over you you next thinking on were few to guys there? quarter, the XX I update

Joseph Craft

Yes.

to have continue think to goal XX. a that to get So I we

that Our doesn't have going us level. guidance to

think as are. where far as we that I

now in are right -- will to on As or I X we that have conclude mentioned comments, volume. some area next X we prepared that add the that in conversations weeks going my hope

the quarter. customers that essentially our occur to will and again end believe additional to we will And we're a conservative. will as this strong type X-year we're We the continue -- it's towards very contracts to indicated But there good in it burn say quarter targets. hard over are know discussed they opportunities be X- a are to that this be like have there the in second also or to of year in I'd sales for conversations and as position. that the conversations production all tons. confident whether that actual well We

been we demand been think I have the participate there, market. felt levels pricing that for one know the we in. the is but has And to we the export area wanted high -- in we disappointed that at 'XX not that

there about high place sell our tons there, can XXX,XXX into then it's domestic that the that market. like is it So sulfur in if export feel for we XXXX like But production. in market we would to not we

So of hit we've we were this different domestic But commitments. a with of a ago. starting where -- guidance commitments year Last to we believe put ago. got disappointed base was in are inventories lower to I where didn't our our to weren't and than the which we've customers situation I to production we're year, sort a year than did our not year therefore, our we're a something XXXX, upside and we able comparable sales from we because this year more think

Nathan Martin

year tons guidance just about that at if are the a Would that price. you speak for you And just your to in on XXXX? general basically higher right the don't Clearly, for like I tons in But know having maybe say would market guys level those are conversations range pricing on fall full think you then now. now. I maybe

Joseph Craft

ranges. It's definitely our guidance been in included

we've comfortable conversations we numbers. So we're feel in that definitely those pretty advanced guidance enough to that good. And include we I the think -- our sufficient

Nathan Martin

of levels? you ton. $XXX price, and X think, I of into metric the again, a of kind to the to API these discounts around are just guys think tonnes And on incentivize something seeing you pointed And recent the you X move still guys the briefly what netbacks need kind kind actual do touched market? What extra lows, so API to earlier, I you sulfur or more high markets then at prices, off but or

Joseph Craft

Yes.

think on the able I markets, from low-sulfur count again, to So we're those.

from a think coal product. as since be we lower our was could we or I either Mining as most So from export that levels an standpoint, sulfur ship met well gibson of to at MC 'XX comparable what

lower domestic and So I for and XXX,XXX price here is levels only are. it's are our that sulfur alternatives trying that our real target market, to the vulnerability below significantly for high mentioned that still the at what

changes the see So will we if towards the end year. of that

it's So give I'm meaningful. to because an cost going not actual

what half the in So gotten, depends of based I What summer. is is balance spot end export year weather market And selling the tons or we've issue on think the real up the in we would demand now, those on in think feedback domestic the whether in market. year, back that normal the the I for right domestic the be the the of for the market. shipments specifically everything

basically think side difference. I the I make more our that But we've mines other could coal opportunities that that XXX,XXX got domestic up issue are at may have that on do we So believe tons that an there.

So year, increase conservative, again, this we're to midpoint very and guiding I'm that. at to we'll on of believe that's sales like the able be I'd and where comfortable

Nathan Martin

maybe versus last remind tons ship last tons how shipping domestically hope Joe, just many us you just one or And this XXXX? And in then year? export then year to ended likely said ship thing. earlier, Could you tons Great. more Okay. you up versus domestic to

Joseph Craft

So Nate, past I this tons million domestic year. our shade XXXX, under think XX for a just for were tons

And was balance the export. so

So we the million side. domestic X.X about on export, XX.X did million

this year So actually export up were previous versus year. volume

Nathan Martin

in luck Very you I Best helpful, 'XX. Thank Okay. appreciate your time. that. of for guys.

Operator

with from is Markets. Capital Mark question next Noble Our Reichman

Mark La Reichman

Yes.

away. into question you and quarter, Mettiki go would in those you some new that would Last geologic a Tunnel had problems Appalachia. Just a both mentioned as on of district quick be Ridge

or spill that at point? to mirror So issues? quarter is are of in you expect there the the the Is rearview yet? mean, over I this first that XXXX operational into of do any you

Joseph Craft

Ridge, got at moves, Tunnel we've both is Cary ones February. -- X one mentioned, in at at Mettiki As longwall

next are going be be if we therefore, So the Mettiki. next things starting the to are our panel with improved, in costs hopeful, with will and Mettiki panel, improved

As district. same moving will to May small next move is May Tunnel be panel by we far It's when new as the be Ridge, district. the still early will that another the completed in --

And so going significant should start starting that's panels. those May where into when we for improvement seeing Tunnel we get forward Ridge longer

that, Having panel. expected a in end said January this better the came right of at bit than little

So are standpoint. definitely panel next this experienced hopefully, mining short content one be we've toughest better from what Tunnel panel This be between of -- February will than at and honest, May, Ridge. be a was will we hopeful last to our

better the we're move 'XX into that to be used new will see last we and there. completing, very back we historically than one will confident we district So to Tunnel that this we're the Ridge are getting hopeful panel like levels in once that we've production

drilling and predict. our felt with we're program, be correlating the Mettiki to think that program confidence just We I have. to hard results we the level to not drilling just -- typically we continues seeing So it's development,

all predict. So region. our mine operations, that's than other experienced that year, feel Appalachia is hard in to really the XXXX a what in over about geology I lot we the last the one But better think we our

Mark La Reichman

third in fourth in the it EBITDA the $XX.XX. adjusted elevated I mean, total think think on quarter, the per to then That's $XX the costs were the helpful. quarter coal as I I And ton operations. obviously, for was guidance segment the well. was $XX expense

$XX So high so delta you be versus end $X the your to is there? What of ton. the a new of of a low guidance to cause what, end kind would kind $XX, at

Joseph Craft

it's the guidance the when range that. a you Mark, be in us, end when end, you for you versus high low look think that have at to I the look going at take

you we a think at guidance something like as midpoint, the the about or our that, I So if quarter talking $XX ] is when you're guidance were range, range. mid [ at look in

think what is have market better you're say, about we're upper what that I little if export get So the implying probably the to to talking end for can going that's like market there. we for a marketability,

the Illinois would So be being that into ship Basin the region have of lot would a there particular and out that you of benefit able coming market. to

first And look cost benefit would add that is average range. you upper what quarter not of be at end the going into at that weighted Cary in Ridge longer can know we're overall the Appalachia, at when fact costs are back until that and just our the higher we side to the to get May. so we to the said I panels that Tunnel

until of range of to the to those get it's hard be going to So the out get end we panels, the lower side. on app

that. And so there little a after is sequential higher quarter the be is going we first in to a timing quarters issue where what the than expect

Cary Marshall

basis improving quarter as over better throughout on anticipate these like do, first to volumes But as into be And we let prepared Yes. XX% it in look to to quarter we overall. were trying conditions, you think do will we costs probably know that I as get tried previous Joe mentioned, that address does down gradually this some of quarterly we the X% year. the remarks where conditions we a

Joseph Craft

dropping MC is So unit moves X to in was longwall that the back -- volume Mining.

Mark La Reichman

guidance lot looks a on the oil the we question. front, on royalties And then commentary, the hear of in modest acquisitions and to It just acquisitions. factor of last Kinder gas business, doesn't the growth. me kind it like Or you your driven weighted maintain Morgan bullish weighting? you at you heavy think on point you'll might Do gas acquisitions? kind by entertain oil more electricity and do gas others natural LNG think some demand. and of in growth But pretty

Joseph Craft

is Delaware a had. previously, than little I bit Basin, our which Midland what active has gas think, more in as I've mentioned exposure

well they still the look we -- still It's that say the focused think I I So curve a like business. There's side would will each of we're going more be at -- we to present be as themselves, opportunity but liquid mentioned. be just on predictable that better more is ago, prices little still do prices. year today expectations than good. The We gas as a as you which gas was see pricing. will bit higher, is it

it's are that So from in we product it's investing still valuable byproduct -- and will not investing a or gas in. away we shy still

gas So that like don't get minerals percent we when buy higher the we oil.

to as think is and benefit be in Marcellus, Permian. the we trying still to go from more to that's far Haynesville or So our the or the as both. But up Utica focus going it's to something I

Mark La Reichman

you thank helpful much. and I appreciate it, clarity. appreciate I Well, really the very

Operator

is Marsh question with Research. Singular next Our from David

David Marsh

there's the to down, 'XX. we're I Illinois on to What wanted a certainly potential pricing swing going for Is your on obviously, back of Basin looks side prevailing that guiding that come actually particularly -- you're have what there some forecast guys year. start it Just there? to the help up? upside to pricing mean, factors like for are you kind a in this thought that might

Joseph Craft

it's because power -- demand, a mean the right? we're a at to not about good had I supply think the that not be deliveries they So look that year. were seeing down. And demand, elevated will level stable I I mean production we're inventories. factor. weather all was just It's and at when you seeing being last demand

bit. some to it's that demand it supply-demand push of is just imbalance, to prices that's a So weather the type going strong we matter I be going whether little that a do can determine up have believe could and really of then

support to to you contract think prices incentivize I to difference price prices that believe indexes higher there. I still the to have price. what supply a be the and between will that contract prices some than have longer-term see to spot in there's And are support a going contract

to point the prices benefit also customers So our have, that talking the our guidance driven contracts that we but the about. anticipated is with price from really we're

be really the guidance is the spot that end to going how to back the can prices could range. the already than increase are happen right that we're whether I higher on price of year as negotiating So those in. this mean built what the of contract on now.

spot is I the in half cooperates built in weather could some -- if we're back that like got higher we of see you where into there year. the summer, the the the So price normal than upside the tons said, to or

David Marsh

Got it.

more whether hold, talk holding I nice it asset. there about I that have planning this meaningful then just Could mean talk to favorable Okay. helpful. whether in of kind how guys -- you this digital Obviously, is sell become at the about mean, you you at point. think That's spot it's side, prices? just to And terms your your what point? at of on a about just more amassed asset

Joseph Craft

approach that Historically, balance. And monthly the based go up. of on continue we've the taken an model do covering a to by prices we will on and selling believe expenses holding sufficient our then basis

supportive a think but I bit administration going generally. crypto is in the very, very of particular,

we will January, think there's So to closely decided have to administration going expenses. cover that to determine the continue year not continue upside in -- to should that monitor we policies We whether or whether just we're adding we investment more the we to Trump for of revert putting what the our expenses. last back -- cover into or of so selling been should -- the the not in hold to we've going doing more by any

of impact or on the what think will occurring end our we the based we'll still that -- policies -- quarter, decision our not I that or by may judgment we'll see whole may monetization. make how So a

expenses So beyond but sold have any needed not our to bitcoin to cover we just doing date, basis. monthly to do what on we a just

David Marsh

Right, right.

Okay.

company wanted that. favorable. and just or to plans about Could the can for terms help any provide administration talk open to in appreciate and... that. longer the to just of the just desire general. very industry to engage terms And keep -- color in energy satisfy obviously, in by the anything you administration from outreach talk of change, And you just the that the I terms get of about to me, better update then anyone company administration lastly Just that in

Joseph Craft

active the government to and for an the with proper more administration. several example. fronts trying determine very the trying We're are Trump policies as to make got dose to how determine that They've efficient

years, of because So for been things the it for relevant. XX years XX have to redundancy, that there are done on where ago, been being are always was done reasons But it's not. areas regulations date, books they've that way,

to administration. can educate doing what we're the So we Trump

example. technology slew an to regulations are any regulations day that have in with and don't real every the as ability costs economy no just difference a remove live that increasing we of certain today's with the that benefit Here's with today we that make

to You've from administration just or production plants try coal discourage reduce that open. primarily Biden got as the as All last X to customers staying minute, at X addressed. the regulations to put coal for well in our being are those

both we, able concerns grid are the production with the make resilience again, Trump to that for. having the but sure So the and they're volume they to administration is working address of be looking communication with the to want, our to customers consistent that trying

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November So like positive we company. in is victory our feel for definitely

David Marsh

Great. Thank it. much. so you Appreciate guys

Operator

is question Dave from next Our Stonegate. with Storms

David Joseph Storms

domestic levels would of pricing? just to that and than you boost much with start lower? inventory they if would there's And to maybe to those think anything want maybe further think weather sense how Just inventory get levels other fall a you need

Joseph Craft

your question. missed I first your part of

David Joseph Storms

Just little domestic fall how need a to you to pricing they around bit? and inventory further increase believe levels much maybe

Joseph Craft

Yes.

is have again, balance customer the we're where that definitely by we proper but most moved think in customer, in right that everyone I seeing, different, to don't that think I overhang. cases, to nearing So we're where direction we've

but us. that see demand, that what bit there more be build they be the going in We So be same will likely, but to deliveries that better, going to in opportunity plan. if little a will there's more is 'XX than for have the that not it's did we and

we where said, As were. we of stay sort we

upside some there. is there So

competitors there's As doing. are we market of export their could domestic, pricing, the that side. we're don't to doing. that I competitors the exactly tell, to just the visibility market export be to any be not really bring it's -- high on are the in the what sulfur -- on far it's going back there's producers increase other from And know. hard to and privy some as supply more into only expect to I exporting, don't going have We they're what the you're know can what where for tonnage that it's don't our

back any to on. that believe our it's right to a And are don't supply now, competitors there's just and I So what increase situation, really it going reason gets have a doing.

second So answer I I projected do could I we question. and plan. the half of higher position what later had more But than year that demand believe in the the year could our that be we're a to in prices in wish see definite we -- visibility

David Joseph Storms

And then me. just one Understood. more for

and the demand secure in you properties. maybe for segment, competition regulatory the seeing more oil With environment, gas are notable any changes increased for

Joseph Craft

could you just question one repeat if more time. Maybe the Yes.

be think terms Just to of demand, Basin out Permian, continues in in terms good coming increased us. I I Permian think of volumes the the for for demand of

good terms minerals very in with we're feel at. in we where portfolio our So going for locations properties of increased our the demands forward.

David Joseph Storms

new acquiring Is more that a around becoming demand just then And competitive maybe? assets? market

Joseph Craft

in for competitive. do to try it believe -- actively competitive. is successful engage of going there be some say to I'd a Yes, with to be properties. us It's opportunity We always is acquiring there's to XXXX lot been that

be be of whether adequate demand, off there's participate So see, we're being successful do but and you we several we'll afraid to be that packages competition. plan those and we'll we that to or believe going we're we believe going auctioned if will. not There's in to not,

Operator

like of for back would turn end to the Cary conference remarks. our reached closing session. over have question-and-answer to I We the

Joseph Craft

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

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

Operator

you. Thank

your thank disconnect for participation. You your lines, now may you and

Alliance Resource Partners (ARLP) 3 Feb 252024 Q4 Earnings call transcript