Alliance Resource Partners: The 9% Yield Does The Heavy Lifting

Impact · against what's priced in

ARLP is a Buy driven by an 8-9% projected increase in distributable cash flow from the AllDale acquisition and a healthy 1.39x coverage ratio. These fundamentals, combined with lower operational coal costs, provide strong support for the current 9.3% yield.

ARLP+0.60

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In context

The AllDale royalty acquisition is expected to boost distributable cash flow per unit by 8-9% next year, while current coverage has improved to 1.39x.

Read from the article alone

• cash flow
• energy
• oil
• ARLP
• coal
• dividend yield
• gas
• royalties

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