Why Units of Alliance Resource Partners Jumped 12% at the Open Today
Units of coal-focused master limited partnership (MLP) Alliance Resource Partners (NASDAQ: ARLP) rose just shy of 12% in the first half hour of trading on Oct. 26. From there, however, Alliance started to trend lower, with the units up just 1% or so at roughly 2 p.m. EDT. There's good reasons for both of these moves.
Leading off Alliance Resource's third-quarter earnings release were the facts that revenue increased 39.4%, EBITDA jumped 146.4%, and net income was higher by 158.3%. Those are incredible numbers for a business that mines coal, which is a largely out-of-favor energy source these days. The fly in the ointment here is that these increases are sequential from the second quarter. That quarter was impacted by the global economic shutdowns used to slow the spread of COVID-19. In other words, the third quarter showed that Alliance's business was recovering from the worst of the pandemic hit. To be fair, that is good news.
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Source Fool.com
