Alliance Resource Partners, L.P. Announces Coal Production Ceasing at Dotiki Mine
August 09 2019 - 8:41AM
Business Wire
Alliance Resource Partners, L.P. (NASDAQ: ARLP) (the
"Partnership") today reported that it will cease coal production
effective August 16, 2019 at the Dotiki Mine operated by its
subsidiary, Webster County Coal, LLC, in order to focus on
maximizing production at its lower-cost mines in the Illinois
Basin. After production ceases, the operation will engage in
reclamation of equipment and infrastructure for an indeterminate
time.
"Unfortunately, weak market conditions made this action
necessary," said Joseph W. Craft III, Chairman, President and Chief
Executive Officer. "We are saddened that production will be ending
at the Dotiki Mine, which was opened in 1969 and is the oldest mine
operated by ARLP."
ARLP does not expect this action to have any impact on its
previously announced earnings guidance provided in its July 26,
2019 Press Release, including 2019 full-year ranges for coal
production of 40.8 to 42.3 million tons and coal sales volumes of
40.8 to 42.4 million tons.
About Alliance Resource Partners, L.P.
ARLP is a diversified natural resource company that generates
income from coal production and oil and gas mineral interests
located in strategic producing regions across the United
States.
ARLP currently produces coal from eight mining complexes it
operates in Illinois, Indiana, Kentucky, Maryland and West
Virginia. ARLP also operates a coal loading terminal on the Ohio
River at Mount Vernon, Indiana. ARLP markets its coal production to
major domestic and international utilities and industrial users and
is currently the second largest coal producer in the eastern United
States.
ARLP generates royalty income from mineral interests it owns in
premier oil and gas producing regions in the United States,
primarily the Anadarko, Permian, Williston and Appalachian
basins.
In addition, ARLP also generates income from a variety of other
sources.
News, unit prices and additional information about ARLP,
including filings with the Securities and Exchange Commission
("SEC"), are available at http://www.arlp.com. For more
information, contact the investor relations department of ARLP at
(918) 295-7674 or via e-mail at investorrelations@arlp.com.
The statements and projections used throughout this release are
based on current expectations. These statements and projections are
forward-looking, and actual results may differ materially. These
projections do not include the potential impact of any mergers,
acquisitions or other business combinations that may occur after
the date of this release. We have included more information below
regarding business risks that could affect our results.
FORWARD-LOOKING STATEMENTS: With the exception of historical
matters, any matters discussed in this press release are
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from projected
results. These risks, uncertainties and contingencies include, but
are not limited to, the following: changes in coal prices, which
could affect our operating results and cash flows; changes in
competition in domestic and international coal markets and our
ability to respond to such changes; legislation, regulations, and
court decisions and interpretations thereof, both domestic and
foreign, including those relating to the environment and the
release of greenhouse gases, mining, miner health and safety and
health care; deregulation of the electric utility industry or the
effects of any adverse change in the coal industry, electric
utility industry, or general economic conditions; risks associated
with the expansion of our operations and properties; our ability to
identify and complete acquisitions; dependence on significant
customer contracts, including renewing existing contracts upon
expiration; adjustments made in price, volume or terms to existing
coal supply agreements; changing global economic conditions or in
industries in which our customers operate; recent action and the
possibility of future action on trade made by United States and
foreign governments; the effect of new tariffs and other trade
measures; liquidity constraints, including those resulting from any
future unavailability of financing; customer bankruptcies,
cancellations or breaches to existing contracts, or other failures
to perform; customer delays, failure to take coal under contracts
or defaults in making payments; fluctuations in coal demand, prices
and availability; changes in oil & gas prices, which could,
among other things, affect our investments in oil & gas mineral
interests; our productivity levels and margins earned on our coal
sales; decline in or change in the coal industry's share of
electricity generation, including as a result of environmental
concerns related to coal mining and combustion and the cost and
perceived benefits of other sources of electricity, such as natural
gas, nuclear energy and renewable fuels; changes in raw material
costs; changes in the availability of skilled labor; our ability to
maintain satisfactory relations with our employees; increases in
labor costs including costs of health insurance and taxes resulting
from the Affordable Care Act, adverse changes in work rules, or
cash payments or projections associated with post-mine reclamation
and workers' compensation claims; increases in transportation costs
and risk of transportation delays or interruptions; operational
interruptions due to geologic, permitting, labor, weather-related
or other factors; risks associated with major mine-related
accidents, mine fires, mine floods or other interruptions; results
of litigation, including claims not yet asserted; foreign currency
fluctuations that could adversely affect the competitiveness of our
coal abroad; difficulty maintaining our surety bonds for mine
reclamation as well as workers' compensation and black lung
benefits; difficulty in making accurate assumptions and projections
regarding post-mine reclamation as well as pension, black lung
benefits and other post-retirement benefit liabilities;
uncertainties in estimating and replacing our coal reserves;
uncertainties in estimating and replacing our oil & gas
reserves; uncertainties in the amount of oil & gas production
due to the level of drilling and completion activity by the
operators of our oil & gas properties; a loss or reduction of
benefits from certain tax deductions and credits; difficulty
obtaining commercial property insurance, and risks associated with
our participation in the commercial insurance property program; and
difficulty in making accurate assumptions and projections regarding
future revenues and costs associated with equity investments in
companies we do not control.
Additional information concerning these and other factors can
be found in ARLP's public periodic filings with the SEC, including
ARLP's Annual Report on Form 10-K for the year ended December 31,
2018, filed on February 22, 2019 and ARLP's Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019,
filed on May 6, 2019 and August 5, 2019, respectively, with the
SEC. Except as required by applicable securities laws, ARLP does
not intend to update its forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20190809005238/en/
Brian L. Cantrell Alliance Resource Partners, L.P. (918)
295-7673
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