Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum Alliance Resource Partners LP ARLP

Alliance Resource Partners, L.P. is a diversified natural resource company. It is engaged in production and marketing of coal to domestic utilities, industrial users and international customers, as well as royalty income from oil & gas mineral interests. It operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties and Coal Royalties. The... see more

NDAQ:ARLP - Post Discussion

Alliance Resource Partners LP > Alliance Resource Partners $ARLP
View:
Post by GUNSS on Jan 29, 2023 3:08pm

Alliance Resource Partners $ARLP

Alliance Resource Partners $ARLP is a Master Limited Partnership (MLP) that's heavily focused on thermal (energy) coal used to generate electricity and also coking (metallugrical) coal used in steelmaking. I estimate that 80%+ of the Company's business is coal and the remainging amount Oil & Gas.

On Friday after the market closed, the Company announced a large (+40%) increase in its quarterly distribution payout to $0.70/unit or $2.80 (annual). That's a distribution yield of 13.52% on the closing price of Friday. However, the price will likely open at something like $24 on Monday morning, which would still be a yield of 11.67%. 

As 2023 unfolds, I think the yields of high-yielding MLPs, REITS, etc. will decline along with interest rates. If true, a yield of say 9% or 8%on 12/31/23 might be quite appealing for safe companies like Alliance Resource Partners $ARLP. That implies a unit price of or $31.11 or $35 vs. the unit price on Monday Jan. 30th of say $24. The total return from $24 to $31.11 would be ~39% (incl. the $2.8/unit distribution).

A 39% total return in 2023 could prove to be very attractive as many market sectors could be down or have modest gains. I'm not saying 39% is a sure thing, but $ARLP is worth a closer look at current levels in the low-to-mid $20s...
Be the first to comment on this post
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities