Alliance Resource Partners LP EV/EBITDA valuation

Alliance Resource Partners LP (ARLP)
By@hypertonx
Assumptions as of 2026-07-31
USD
Updated Jul 31, 2026 · Revised 2 times
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Alliance Resource Partners LP EV/EBITDA valuation

ARLP valuation using a 2026E EV/EBITDA method refreshed for Q2 2026. Base assumptions anchor to management's updated 2026 coal volume, realized price, cost, royalty, capex, interest, and tax guidance; Q2 2026 balance sheet data; and the July 1, 2026 AllDale III & IV oil and gas royalty acquisition. Fair value is enterprise value less estimated pro forma debt plus estimated pro forma cash and digital assets, divided by period-end common units. The method keeps a discounted coal/royalty multiple for coal terminal and regulatory risk while giving credit for a nearly fully committed 2026 coal book, improving second-half coal operating cadence, and higher oil and gas royalty scale. The bull case is intentionally capped to reflect a narrower expected trading range rather than a broad multiple re-rating.

as of 2026-07-31

Fair value per unit
$28.25
Upside/downside
14.2%
Adjusted EBITDA ($M)
745
Enterprise value ($M)
4,282
Equity value ($M)
3,635
DCF per unit
$2.96
Distribution coverage
1.2

Cash flow

50.50$M
23.00$M
290.00$M

Coal operations

38.00$/ton
55.00$/ton
34.50million tons

Corporate

-75.00$M

Market

24.73$/unit
Latest ARLP quote · updated Aug 11, 2026 2:00 PM MDT

Royalties

1.15$/ton
3.10$/ton
29.85million tons
175.00$M

Valuation

5.75x

Fair value sensitivity

Target EV/EBITDA multiple52.00 $/ton54.00 $/ton55.00 $/ton56.00 $/ton58.00 $/ton
4.50 x$17.40$19.81$21.02$22.22$24.64
5.00 x$19.89$22.57$23.91$25.25$27.93
5.75 x$23.63$26.71$28.25$29.79$32.88
6.00 x$24.87$28.09$29.70$31.31$34.52
6.50 x$27.36$30.85$32.59$34.34$37.82

Sources

  1. Q2 2026 ARLP earnings release, updated 2026 guidance, Q2 balance sheet, distribution coverage, DCF, debt, liquidity, cash, digital assets, unit count, and July 1, 2026 AllDale III & IV acquisition terms. — sec.gov (accessed 2026-07-31)
  2. Q2 2026 earnings call commentary on second-half coal cadence, 2027 commitments, AllDale royalty contribution, leverage priorities, and coal market demand context. (accessed 2026-07-31)
  3. Q1 2026 ARLP results and prior baseline guidance retained where Q2 guidance remained unchanged. — sec.gov (accessed 2026-07-31)

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