Alliance Resource Partners LP : ARLP-US: Dividend Analysis : February 07th, 2017 (record date) : By the numbers : March 21, 2017

Our analysis is based on comparing Alliance Resource Partners LP with the following peers – Peabody Energy Corporation, Alliance Holdings GP, L.P., CONSOL Energy Inc., Natural Resource Partners L.P., Rhino Resource Partners LP, Westmoreland Resource Partners LP and Hallador Energy Co (BTUUQ-US, AHGP-US, CNX-US, NRP-US, RHNO-US, WMLP-US and HNRG-US).

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to December 31, 2016), ARLP-US paid a high quality dividend, which represents a yield of 8.97% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were high quality, 1 was medium quality and 2 were low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to December 31, 2016), ARLP-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.84x), investing cash flow (coverage of -0.76x), issuance cash flow (coverage of -1.06x) and twelve-month prior cash (coverage of 0.13x), for a total dividend coverage of 1.16x.

ARLP-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.05x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 12.05 10.13 9.96 34.65 14.85 7.9
Dividend Payout (%) 68.01 62.88 51.83 126.18 58.63 58.63

A complete list of metrics and analysis is available on the company page.

Company Profile

Alliance Resource Partners LP produces and markets coal to United States utilities and industrial users. It operates through the following segments: Illinois Basin, Appalachia, and Other and Corporate. The Illinois Basin segment is comprised of Webster County coal’s Dotiki mining complex, Gibson mining complex, which includes the Gibson north mine and the Gibson south project, Hopkins County coal’s Elk Creek mining complex, White County coal’s Pattiki mining complex, Warrior’s mining complex, River View’s mining complex, the Sebree property and certain properties of Alliance Resource Properties and ARP Sebree LLC. The Appalachian segment is composed of Pontiki and MC Mining complexes. The Other and Corporate segment includes marketing and administrative expenses, Mt. Vernon dock activities, coal brokerage activity, its equity investment in Mid-America Carbonates LLC and certain activities of Alliance Resource Properties. The company was founded in May 1999 and is headquartered in Tulsa, OK.

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