Alliance Resource Partners sets company bests for coal sales, production in 2012
BY ROD WALTON World Staff Writer
Tuesday, January 29, 2013
1/29/13 at 12:56 PM
Rising fourth-quarter revenues helped drive Alliance Resource Partners LP to record production and $335.6 million in net income for 2012, the Tulsa-based coal firm announced Tuesday.
Alliance’s annual profit was actually down from the $389.4 million reported for 2011, but fourth-quarter revenues increased 15.8 percent to $549.4 million. The full-year revenues topped $2 billion.
The company’s amount of coal sold rose 10 percent to 35.2 million tons, while production was up 13 percent to 34.8 million tons for the year. Alliance credited both record totals on the start-up of longwall production at the Tunnel Ridge mine in West Virginia and the acquisition of the Onton mine in western Kentucky. The Tulsa firm has set company-best marks for financial results in 12 straight years.
“In addition to once again delivering record results, the Alliance team also made significant progress in building for our future,” Alliance CEO Joseph Craft III said in a statement. “During 2012, we enhanced our Illinois Basin asset portfolio with the acquisition of the Onton mine in April and completed our Northern Appalachian mine development at Tunnel Ridge with the commencement of longwall production in May.”
The Pontiki mine in Kentucky, which was idled in August after an equipment failure resulted in a federal closure order, resumed production in November after repairs were completed, Alliance reported. The temporary closing cost about $26.6 million in losses for the year, according to the earnings report.
The partnership’s general partner board of directors approved a cash distribution of $1.1075 per unit for the fourth quarter. The payout will be made Feb. 14 to unitholders of record on Feb. 7.
Alliance Resource Partners owns and operates coal mines in Illinois, Illinois, Indiana, Maryland, Kentucky and West Virginia.