What Factors Could Drive Alliance Resource Partners in 2H17?
The ETF (exchange-traded fund) market has outperformed coal stocks, as represented by the VanEck Vectors Coal ETF (KOL), so far in 1H17.
As of June 30, 2017, ARLP’s long-term contracts totaled ~38.0 million tons for 2017, 20.1 million tons for 2018, and 11.0 million tons for 2019.
As of June 30, the book value of ARLP’s long-term debt was about $1.0 billion, of which ~$145 million is due for payment over the next year.
In 2016, Alliance Resource Partners (ARLP) reported adjusted EBITDA of $765.2 million, which was 6.1% lower than its $814.7 million in 2015.
Alliance Resource Partners (ARLP) reported shipments of 36.7 million tons in 2016, which represents an 8.9% fall from 40.2 million tons in 2015.
ARLP supplies coal to its customers by rail, barge, and truck. Its mines are in favorable geographic locations that minimize transportation costs for customers.
Alliance Resource Partners operates three underground mining complexes in the Appalachia region in eastern Kentucky, Maryland, and West Virginia.
ARLP’s Illinois Basin segment consists of five operating mining complexes. The Dotiki mine is in Webster County, Kentucky, and produces high-sulfur coal.
Alliance Resource Partners (ARLP) operates eight underground mining complexes in two regions: Illinois and Appalachia.
As of December 31, 2016, Alliance Resource Partners was being managed by its MGP, which is 100% owned, directly and indirectly, by AGHP.
In this series, we’ll explore how Alliance Resource Partners has expanded its business and evaluate its key operational metrics and financial position.
Sage Therapeutics (SAGE) is focused on the development of the products for the treatment of life-threatening central nervous system (or CNS) disorders.
The products under development for the treatment of life-threatening central nervous system (or CNS) disorders in Sage Therapeutics’ (SAGE) portfolio are either based on GABA or NMDA receptor systems.
Sage Therapeutics (SAGE) is a clinical-stage biopharmaceutical company focused on the development and commercialization of drugs for the treatment of central nervous system disorders.
Cabot’s forward EV-to-EBITDA multiple of ~10.0x is higher than its peers’ multiples.
Cabot Oil & Gas (COG) traded at an average EV-to-EBITDA ratio of 20.1x between 2Q15 and 2Q17. EV is the sum of a company’s market capitalization and net debt.
Cabot Oil & Gas (COG) believes that if it maintains 3.7 Bcf (billion cubic feet) per day production for 25 years, it would need to spend an annual maintenance capital of $500.0 million.
In 2Q17, Cabot Oil & Gas (COG) reported cash flows from operations (or CFO) of ~$260.6 million. That compares to $85.0 million in 2Q16.
Cabot Oil & Gas’s (COG) presentation in August 2017 noted that it had no debt maturing until 2018.
Since 2Q15, Cabot Oil & Gas’s (COG) total debt has fallen ~31.0%. In 2Q17, its total debt was ~$1.52 billion compared to ~$2.0 billion in 2Q15 and $1.54 billion in 2Q16.