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Released October 29, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. steam coal marketer and producer Alliance Resource Partners LP (NASDAQ:ARLP) (ARLP) (Tulsa, Oklahoma) reported a third-quarter increase across all segments in a webcast on October 28, 2013. Overall revenues increased by 5% from the same period in 2012 to $537.2 million.
Industrial Info is tracking more than $450 million in projects for ARLP throughout the U.S., including the $210 million Princeton Gibson County South Coal mine expansion in southern Indiana. The project includes a 3 million- to 3.5 million-ton-per-year underground room and pillar coal mine, with a 1,800-ton-per-hour coal-processing plant. Expected for completion in October 2014, the mine will contribute to the already-profitable Illinois Basin operations.
In a press release, ARLP reported a 9.8% increase in third-quarter sales for the basin, when compared with 2012. The River View, Dotiki, and Gibson North mines experienced high productivity, offsetting the troubles at Onton, which had an unfortunate geological issue in late July. The safety mandates forced Onton to close. Operations resumed in August; however, in the webcast Joseph W. Craft III, president and chief executive officer of ARLP, said that without the mishap at Onton, production was on course to meet expected outcomes. The geological issue affected EBITDA by approximately $13.3 million.
"The high performance of our teams and continued focus on expanding ARLP's presence in the Illinois Basin and Northern Appalachian markets has allowed us to succeed in the current challenging market environment," Craft said. "Our solid contract portfolio and ongoing growth projects also leave ARLP well-positioned for the future."
Northern and Central Appalachia saw a decline in coal sales volumes, likely from timing differences in customer shipments compared with 2012. However, Tunnel Ridge's continued ramp-up in production partially offset the decline in Northern Appalachia.
ARLP saw an expected negative impact from the White Oak Mine No. 1, which took a $6 million hit on net equity for the quarter. The mine has about 204.9 million tons in reserves that ARLP will develop and fund.
Craft credited slower sales to unfavorable market conditions that affect demand; however, the outlook was quite positive. He said that of the $9.4 million in new coal sale commitments this year, $3.3 million were from the third quarter. He also expects a meaningful recovery in 2014.
"ARLP remains on track to deliver its 13th consecutive year of record financial and operating results in 2013," Craft said. "As we look forward, ARLP is poised for more growth in 2014. Our production will increase next year, as Tunnel Ridge is currently expected to produce approximately 5.5 million tons in 2014. In addition, our new Gibson South Mine is scheduled to being initial production in the third quarter of 2014, and longwall production at the White Oak mine development project is anticipated to begin in the second half of next year. We also continue to enhance ARLP's already-strong contract portfolio."
For more information, visit Industrial Info's Metals & Minerals Database.
View Plant Profile - 1029084 1056672
View Project Report - 11002652
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking more than $450 million in projects for ARLP throughout the U.S., including the $210 million Princeton Gibson County South Coal mine expansion in southern Indiana. The project includes a 3 million- to 3.5 million-ton-per-year underground room and pillar coal mine, with a 1,800-ton-per-hour coal-processing plant. Expected for completion in October 2014, the mine will contribute to the already-profitable Illinois Basin operations.
In a press release, ARLP reported a 9.8% increase in third-quarter sales for the basin, when compared with 2012. The River View, Dotiki, and Gibson North mines experienced high productivity, offsetting the troubles at Onton, which had an unfortunate geological issue in late July. The safety mandates forced Onton to close. Operations resumed in August; however, in the webcast Joseph W. Craft III, president and chief executive officer of ARLP, said that without the mishap at Onton, production was on course to meet expected outcomes. The geological issue affected EBITDA by approximately $13.3 million.
"The high performance of our teams and continued focus on expanding ARLP's presence in the Illinois Basin and Northern Appalachian markets has allowed us to succeed in the current challenging market environment," Craft said. "Our solid contract portfolio and ongoing growth projects also leave ARLP well-positioned for the future."
Northern and Central Appalachia saw a decline in coal sales volumes, likely from timing differences in customer shipments compared with 2012. However, Tunnel Ridge's continued ramp-up in production partially offset the decline in Northern Appalachia.
ARLP saw an expected negative impact from the White Oak Mine No. 1, which took a $6 million hit on net equity for the quarter. The mine has about 204.9 million tons in reserves that ARLP will develop and fund.
Craft credited slower sales to unfavorable market conditions that affect demand; however, the outlook was quite positive. He said that of the $9.4 million in new coal sale commitments this year, $3.3 million were from the third quarter. He also expects a meaningful recovery in 2014.
"ARLP remains on track to deliver its 13th consecutive year of record financial and operating results in 2013," Craft said. "As we look forward, ARLP is poised for more growth in 2014. Our production will increase next year, as Tunnel Ridge is currently expected to produce approximately 5.5 million tons in 2014. In addition, our new Gibson South Mine is scheduled to being initial production in the third quarter of 2014, and longwall production at the White Oak mine development project is anticipated to begin in the second half of next year. We also continue to enhance ARLP's already-strong contract portfolio."
For more information, visit Industrial Info's Metals & Minerals Database.
View Plant Profile - 1029084 1056672
View Project Report - 11002652
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
