Alliance Resource Partners, L.P. (NASDAQ:ARLP) Q4 2022 Earnings Call Transcript

Joe Craft : Again, you were cutting out a little bit. But the way we think about our Minerals segment is we do believe it has — we have a proven track record now that we have been successful in our underwriting approach. We believe that oil and gas is going to be here for decades and decades. And so I think that it can compete with sustainable cash flow and it meets our strategic objectives again, to try to give them some guidance so they have certainty in developing deal flow. We’ve given them the latitude to know how much capital that they know they have available to them. It’s not a cap. I think if they bring other opportunities that come to us that we can evaluate those and look at those, but we do not look at thinking in terms of re-examining on a quarterly basis, whether or not we want to allocate that capital to that segment.

We believe that it needs to grow and so if we can put $100 million to $120 million to whatever their growth is on an annual basis, we will get to a meaningful number. That has proven to be the case so far, since we’ve been in the business since 2014, late 2014. We’re committed to that business. We believe that it’s an attractive business. We believe we have a proven track record of understanding how to value those opportunities and as a long-term investment we continue to have confidence and faith that it’s a good place for us to allocate capital.

Operator: At this time, I would like to turn the floor back over to Mr. Cantrell for closing comments.

Brian Cantrell : Thank you, Donna, and to everyone on the call. We sincerely appreciate your time this morning as well as your continued support and interest in Alliance. Our next call to discuss our first quarter 2023 financial and operating results is currently expected to occur in late April, and we hope everyone will enjoy will join us again at that time. This concludes our call for the day. Thank you very much.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.