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Alliance Resource Partners sees FY18 revenue ex-transport $1.78B-$1.82B.

For 2018, ARLP is providing the following full-year guidance for its operating and investment activities: Capital Expenditures and Investments:Total 2018 capital expenditures for ARLP's operating activities are currently estimated in a range of $220M to $240M. 2018 Capital expenditures are primarily related to maintenance capital expenditures as well as $16.5M of growth capital to re-open the Gibson North mine by bringing two mining units back into production. Considering its current five-year planning horizon, ARLP is estimating total average maintenance capital expenditures of approximately $4.72 per ton produced for long-term distribution planning purposes. Depreciation, depletion and amortization in 2018 is estimated in a range of $275M to $285M.In addition, ARLP currently expects 2018 investments of approximately $30M for existing commitments related to compression services and the acquisition of oil and gas mineral interests. Coal Production and Sales Volumes: During 2018, coal production is currently estimated in a range of 39.0 million to 40.0 million tons and sales volumes are expected in a range of 39.5 million to 40.5 million tons. To date, ARLP has secured price and volume commitments for approximately 33.7 million tons in 2018 and has also secured coal sales and price commitments for approximately 11.6 million tons, 7.6 million tons and 1.3 million tons in 2019, 2020 and 2021, respectively. Revenue, Net Income and EBITDA: Based on current expectations, ARLP is estimating 2018 revenues, excluding transportation revenues, in a range of $1.78B to $1.82B, net income in a range of $290M to $310M and EBITDA in a range of $610M to $630M. These 2018 estimates for net income and EBITDA include a contribution of approximately $25M to $35M related to our investments in oil and gas mineral interests and compression services. Per Ton Estimates: ARLP currently anticipates its average coal sales price per ton at the midpoint of its 2018 guidance ranges will be 2.0% to 3.0% lower than 2017 realizations, primarily reflecting soft coal market conditions during the first half of last year. ARLP also expects its ongoing efforts to enhance operational efficiency and control costs will result in a modest improvement to total Segment Adjusted EBITDA Expense per ton in 2018 compared to 2017. Based on these price and cost estimates, total Segment Adjusted EBITDA per ton sold in 2018 is currently expected to be approximately 2.0% to 6.0% below the prior year.

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Publication:The Fly
Date:Jan 29, 2018
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