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Alliance Resource Partners (ARLP)
Mining coal can be dirty, dangerous, and expensive, but it can also be a growth business. Just look at Alliance Resource Partners, which has strung together six record years and expects to continue the streak. Its profits, in fact, have jumped 4.5 times since 2002 to $160 million on $838.7 million in sales in 2005. The nation's only publicly traded master limited partnership that produces and markets coal, Alliance has been a huge beneficiary of strong demand -- and rising prices -- for its coal, which comes from underground mines in Appalachia and the Midwest. Alliance has also done a good job of replacing production from aging mines. In April, it announced a plan to invest up to $130 million to develop a 24,600-acre reserve called River View in Union County, Ky. With demand moving higher as electric utilities invest in scrubbers enabling them to burn high-sulfur coal, Alliance expects to have ready customers when River View starts producing in 2008.
Company Info |
|
| 2005 Rank | 20 |
| Market Value* ($ Millions) | 1,543.7 |
| Sales* ($ Millions) | 881.4 |
| Sales Growth (3-yr. avg. annual) |
17.7 % |
| Profits* ($ Millions) | 169.1 |
| Profit Growth (3-yr. avg. annual) | 63.6 % |
| Return on Inv. Capital (3-yr.) | 37.8 % |
| Share Price 12-Mo. Hi/Lo | 48/32 |
| Share Price As of 4/28/06 | 42 |
| Return on Equity | 88.9 % |
| P/E Ratio | 14 |
| No. of Employees | 2,300 |
| Industry | Coal & Consumable Fuels |
| CURRENT MARKET INFO | ARLP > |
| COMPANY WEB SITE > | |
| Location | Tulsa |
| Phone | 918 295-7600 |
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Alliance Resource Partners. and its subsidiaries engage in the production and marketing of coal to utilities and industrial users in the U.S. The company offers a diverse range of steam coals from its Illinois Basin mining operations, which are located in western Kentucky, southern Illinois, and southern Indiana; Central Appalachian mining operations that are located in the Central Appalachia coal fields; and Northern Appalachia mining operation, which is located in the Northern Appalachia coal fields. Its other activities include leasing land and operation of a coal-loading terminal on the Ohio River at Mount Vernon, Indiana, as well as offering coal brokerage services, and ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. As of Dec. 31, 2005, Alliance Resource Partners had approximately 549 million tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. Alliance Resource Management and Alliance Resource serve as the general partners of the company. The company transports its coal by rail, truck, and barge. Alliance Resource Partners, formerly known as MAPCO Coal, was founded in 1971 and has its headquarters in Tulsa, Okla.
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