Is it Still Worthy to Invest in Alliance Resource Partners (ARLP)?

Miller Value Partners, an investment management firm, published its “Miller Value Partners Income Strategy” second-quarter 2022 investor letter – a copy of which can be downloaded here. The Miller Income Strategy lost 17.7% in the second quarter of 2022, underperforming the 10.0% decline for the ICE BofA US High Yield Index. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Miller Value Partners Income Strategy mentioned Alliance Resource Partners, L.P. (NASDAQ:ARLP) and explained its insights for the company. Founded in 1971, Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a Tulsa, Oklahoma-based diversified natural resource company with a $2.9 billion market capitalization. Alliance Resource Partners, L.P. (NASDAQ:ARLP) delivered a 81.41% return since the beginning of the year, while its 12-month returns are up by 194.73%. The stock closed at $22.93 per share on August 01, 2022.

Here is what Miller Value Partners Income Strategy has to say about Alliance Resource Partners, L.P. (NASDAQ:ARLP) in its Q2 2022 investor letter:

“Alliance Resource Partners (NASDAQ:ARLP) rose 20.3% in the period. Alliance Resource Partners reported 1Q22 revenue of $460.9 million, +44.7% Y/Y, but down 2.7% from 4Q21, as a result of lower coal sales volume due to previously reported coal shipment delays. The company reported 1Q22 Adjusted EBITDA of $152.3 million, +61.5% Y/Y, and +16.9% from 4Q21, due to higher realized prices for coal and higher oil and gas royalties. The company also raised its 2Q22 cash distribution to $0.35 per unit, implying a 6.7% annualized based on the stock’s 7/13 closing price, and representing a 40% increase from the 1Q22 distribution of $0.25 per unit. Additionally, management now expects to deliver coal for $54-63 per ton in 2022, up 16.7% from January’s estimate of $49.05-51.25 per ton at the midpoint, and to sell as much as 37 million tons this year, compared to previous guidance for as much as 36.7 million tons.”

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Our calculations show that Alliance Resource Partners, L.P. (NASDAQ:ARLP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Alliance Resource Partners, L.P. (NASDAQ:ARLP) was in 5 hedge fund portfolios at the end of the second quarter of 2022, compared to 5 funds in the previous quarter. Alliance Resource Partners, L.P. (NASDAQ:ARLP) delivered a 29.33% return in the past 3 months.

In June 2022, we published an article that includes Alliance Resource Partners, L.P. (NASDAQ:ARLP) in 10 Best Coal Stocks To Invest In. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page. 

Disclosure: None. This article is originally published at Insider Monkey.