Alliance Resource Partners (ARLP) 2 May 232023 Q1 Earnings call transcript

Greetings, and welcome to the Alliance Resource Partners L.P.

First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Senior Vice President and Chief Financial Officer, Cary Marshall, you may begin.

welcome, and operator, you, everyone. Thank as Alliance Earlier for quarter discuss XXXX. released current well first Partners financial this those conditions and outlook as now morning, XXXX will operating its we on Resource results, and perspective our results market and

prepared our your will remarks, the we call Following answer to open questions.

to to Securities that in risks, of uncertainties Exchange assumptions contained reminder some today are in a variety our beginning, also remarks the include release. this a may filings time from Commission and morning's time our Before and of forward-looking with statements subject reflected and press

providing While by to or on these vary those statements, we us, risks any to revise statements incorrect, remarks, information, our these future of otherwise, materialize expected. materially update if from has uncertainties prove events result forward-looking new the may forward-looking if publicly or are to information currently results no of or more law projected in underlying based or one these do or required And assumptions so. available actual obligation or whether a as partnership unless

and we most financial also at Finally, the has been end non-GAAP website furnished of on measures our the comparable and discussing financial directly differences of to will SEC between certain press measures financial non-GAAP X-K. are and release, which definitions GAAP these measures, be contained ARLP's reconciliations the the posted on Form

partnership step the Officer. with I Chairman, how this what for first begin and incredibly served our But our corporate uniquely a understand and over way, XXXX. With XX I've Joe quarter marketing, call finance having years, first, the the we be and I tomorrow. the then, a roles role of value comments. and in predecessor of of the Alliance the turn strong me grateful I creation to opportunity makes joined our as both I've President Officer, required in home foundation out called great. Since share company for preliminaries Financial for variety for for briefly then reliable will to review within past results for and the Executive opportunity his a of partner Alliance's continued upon Chief operational build Craft, Chief energy I am see into to tremendous financial today let

turning to Now the quarter.

million recognizing resulting XX% the XXXX quarter by quarter Let in in coal results XXXX impressive in prices delivered efforts we start year-over-year sales million improvement coal about order The me going by total the to book. talk entire ton that by which rose by led to the team $XXX.X contracted was first record sold, XX.X% our for increasing quarter price dedicated impacts positive The XXXX of are realized today. of our strong the revenues $XXX.X performance per compared the reflects to quarter.

sales $X.XX ton coal was per sold. Sequentially, price per ton up X.X% or

Royalty our up to per segment. Coal ton Turning royalty XX.X%. was revenue

average and per However, coal XX.X% versus lower average oil fall per and quarter. prices sales Sequentially, prices BOE gas BOE. to gas fell per XX% and sales revenue was realized ton commodity oil the XX.X% royalty realized prices caused XXXX up

to tons volumes record inflationary Coal per assets highs, X.X%, for within to XXXX note an is year-over-year. BOE X.X% was Oil interest coal It adjusted XX.X% compared Resources the sold JC acquisition due million JC segment ton that during of our oil $XX.XX, XXXX EBITDA important throughout increased operations respectively, production Segment in had a our LP X.X XXXX the X.X% sold and as minerals to and include pressures that the historical gas million quarter the expense versus the and X.X Resources, new to coal closed than sales the if increase to declined we, basis increased volumes recast royalty gas to tons, royalty quarter. XX.X% we while while periods increased rather quarter, royalty acquired year. coal primarily XXXX. on

On a per were sequential ton slightly cost lower. basis,

the were expenses quarter due expenses also labor-related supplies compared the XXXX increased operating sales and XXXX sales-related expenses, costs by quarter and to impacted increased to realizations price in costs. materials maintenance and Our higher higher

contained During along the which quickly, extremely longwall and our X X challenges some with of the or we that XXXX Ridge operational had X These that including event occurred quarter, longwall preplant mine, us. the moves Tunnel rare an at for fires moves, is were during quarter. extinguished

XX.X%, gas in in both higher and respectively, net royalties offset increasing lower oil realizations and realized more other royalties, in XXXX coal price over the cost as sharply quarter. quarter, and that Our increases XXXX described. and and EBITDA the than I well XX% inflationary oil in pressures These reflect previously coal, which impacts income rose volumes prices and sales as gas higher

to shipments quarter of million sequential being investments slight delay a Now and before due sequential sheet the primarily a which Alliance our growth in decrease uses of quarter, X% our in turning during the XXXX cash but quarter. to XX.X% lower tons for The contract versus cash. XXXX part of the $XXX.X sequential in attributable year-over-year. quarter balance represented increase flow generated an was XXX.X% the scheduled and decrease sold shipments to strong

XX $XXX increased ratios X.XX liquidity leverage our to debt and cash million, sheet. EBITDA, $XXX.X of total balance million the trailing to adjusted on and including were net months total X.XXx Our approximately

cash the allocation ARLP the the to of XXXX us have eventful for both was The capital highlighting many deploy options we on front, and generating power quarter attractively it.

an per unit we the year. distribution maintain per throughout to unit, quarterly expect our that $X.XX paid $X.XX we quarter, to equating of the annualized rate During of

quarter. be oil we gas the during interest Permian & Alliance growth $X.X the call completed continues last vehicle royalty the of million mineral Our the separately a oil Oil Gas $XX.X mineral on additional acquisition for interest discussed for and gas as purchased valuable then and to segment Basin million in and

million had we that the January, unit $XXX announced program. In authorized a Board buyback

leaving million units million remaining XXX,XXX $XX.X date. $XX.X program, on of quarter, which During expiration us purchase no unit to authorization our has we repurchase with the XXXX deployed

in of below prioritize now yesterday, our consider. million par. and this purchases we May X, of outstanding flows the year of Finally, call we we senior all opportunistically at next. options additional to notes slightly cash senior our XXXX notes $XX.X as will any one And of with intend We par, can available market in purchased part open or March, several

the in continued natural prices busy domestic said, natural States sequentially significantly, quarter. XXXX the economy for during I quarter allocation. both slowing United to quarter. So the dropped gas coal relative like production, year reduced and the to The overall in gas of winter natural the gas capital start mild and for a growth both Coupled ago with demand and

to oil due minerals near-term natural Despite gas-fired customers coal of for the in business. for and remain prices and of be more contracted based solid segment. Lower competitive affected pricing year our strength gas to these a ARLP challenges, lesser gas our some will realized coal our dispatch of options XXXX record optimistic extent, sales burns upon we reduced another book

natural mix X.X detailed the deliveries prices At Now resulted markets. in turning to and timing movement our between contracted have the some XXXX are anticipated guidance midpoint sales updated range. in committed a in quarter, tons total, domestic of this markets. our gas tons the tons of export our to million morning's end release. shift for and our of XX.X of committed the in export at that guidance Of domestic Lower million or the tonnage XX% the XXXX currently was approximately

now of activity the for sales year, due quarter, as opportunities remains and the to do during that call we most As anticipated our in to current the expect more case last we limited inventory for of coal We will of that our occur this supplied back available mild discussed today. winter that be half XXXX export the the utility appear and would the levels. most markets unsold domestic tonnage weather

season we the coal As adjust we lower expect normal to peak of thought year, Sales pricing the our beginning at chosen plays realizations the outlook price buying out, to return. to XXXX. be modestly is patterns average have for where we demand for anticipated so than summer

expected We per are coal XXXX coal anticipate to volumes range in million sold of in XX sales now to realizations continue total XXXX to uncontracted tonnage a our $XX ton a previous ton, per of tons. million our $X ARLP's price range ton expectations decrease overall pricing a in be XX from per to for be lower position. of $XX range, to driven by

back pressures, laser supplies higher to on On maintenance, expenses side, XXXX, labor and execution the we throughout focus factors in experienced is compared of but XXXX half call, during segment inflationary outlook materials higher cost per XXXX expense On the anticipate XXXX still still levels to moderating XXXX. stated our the sales-related in the before and costs a offset helping the ton half compared And expect that EBITDA year. last holds. we adjusted to that higher of be we first

full acquisition segment now to decrease us royalty Recent exceeded gas gas expectations, of $X.XX XXXX per guidance finally, oil guidance be for in $XX year purchase which the acreage ton, mineral adjusted interest expense the it range. volumes of price closed has per oil a acres performance per gas approximately and $XX cash the midpoint Permian a For guidance to of ton all XXXX our at by oil the the EBITDA $XX.X And increase net on to prior X%. BOE XXXX initial ton X,XXX full midpoint initial for royalty on of of of reflected quarter. the is anticipated year from a basis and during leading million, the as in range relates to segment, and our and our Basin a our

for essentially adjustments I categories. our of comments call Joe guidance only remainder ARLP. The Joe? to With with previously over minor the on his same for outlook turn the will the certain that, discussed, ranges as and in market remain

and good morning, you, Thank Cary, everyone.

decades. it's for his call well the can and time step start, like which the appreciation of after earnings the over by Cary, agreeing release, our on him this me decades. I to his So think me posted X I for so today." morning been e-mail partnership of my express Brian I quarter, call, our he Brian is get appreciative enthusiastically know past retirement enjoying carrying role Yes. to to dedication assume as and we do already an CEO. first nearly to "Outstanding many ready. X Cantrell you up Before would tell side you'll I to sent And said, Cary, and who of sure welcome he has my to the congratulations. you I'm I'm

ready You're go. to

I'm Alliance said events deliver our value in unwavering I winter teams and their a Their like entire So for my this long-term comments can our by earlier, efforts thanking energy the mix. We start which record our that that of winter United energy extremely the the proud having volumes, the and for a of coal States ultimately, impact to security well organization Europe, reliable, Overall, coal of coal for it our importance forget continued toward to sales all gas Cary stakeholders. net on storm for begin thankful to posting severe the and mild and easy nation's us and have realized improvements creating record volumes production, focus markets weather and one like in season as affordable XXXX. Elliott, on outstanding makes results year-over-year December's as diverse was accomplished prices both EBITDA. hard dedication all higher also been of royalty work has want income helped oil

And frequently as the well are is are security respond It these resources in most natural as weather Deserve energy during margins country renewable they the to needed. from magnified the fossil fuel grid all There as and at to decades of gas critical they going stakeholders extreme many in have energy is advance security will a and a that we times to is unable recover again, demand events speed energy and to fossil transition trying of to regions tight. are stress economies even likely lead as be moving already And practical if of advanced away fuels not more power for fast, and initiatives prematurely that in increase plants. and by on for Europe come. diverse electrification, the time and continue adequately will way sources keep too forward. the mix administration to time the remind is need shutter Biden to

was coal a views how outlining lower current adjusted natural outlook. in did on guidance gas to job our domestic the by prices a good result. weakness Turning our current demand caused and as our Cary

that weather financial year. optimistic soften expect gas be he the to compared results rising and As allow economy, stated, levels. we last the sufficient uncertainty natural to markets, sales prices rates lower us remain impacting demand recent utility to Even mild will increase at be XXXX and we caused though near-term the record U.S. interest to export by domestic

Relative gas market natural the to is in weakness pricing, condition. views domestically, prices temporary the

per current prices curve investments. the support prices thermal the by a rise must pricing ton capital thermal XXXX attractive option coal our November to in to tonnage. rising to of for that range steadily are that key evidenced gas per perspective new in Europe, will forward emphasize MMBtu into APIX that of As in peaked XXXX. delivered mild to near view in this pricing as ton per our range. $XXX $XXX the the still I and over by decline, for markets prices seaborne end We $X.XX today an $XXX caused even a From face weather natural incentivize

flow our cash our needs sheet evolving and us generation attractive investments meet to We balance intended the robust are of to energy pursue continue that improving fortunate positions tomorrow. that are

coal are just a We company. not

Our last the commitment energy and transition with grow additional and in years, successful diversify growth markets cash in our demonstrate we investments the in the and to gas activities minerals serve. with earnings ARLP in new several interest ventures our underway oil parallel within the flows our along opportunities

regulators long-standing for from additional and the electric has power and energy reliable customers benefit ARLP any creating avenues U.S. to be utilities, grid, relationships a changes position of partner that us tomorrow growth. to with other

rather I've a said many and an solution. energy before, times but needs solution, future as view not we an do as either/or As country our

impressive of and front opportunities proud quarter us. in excited am results ARLP's first I the closing, about In of

running Our operations well. are

is book committed position contract financial coal attractive and our heavily Our never stronger. been at levels, has

cash comments, call operator will the and Looking the in ask ARLP attractive our for growth XXXX open forward, I well unitholders is prepared to and we our to believe solid positioned beyond. That returns and deliver to now questions. concludes

Instructions]. [Operator

comes line of question from Company. Nathan Benchmark the Our first Martin

Joe, the call, Cary, on Cary. quarter, on hear congrats you and the great to

Thank you, Nate.

Thank you.

speak of bit back had both the first little I next the draw and signaled those inventories any the cadence X maybe quarter. could to and were down? a built And -- side when guys production export shipments know Or guess, then we seen back in of? over that domestically the about sales there quarters, previously and I guys You was first, inventory should in higher you half. think challenges in expected? how that logistical

from of Gibson. part think I that was a bump

So I'm would case. still be just the color But helpful. assuming any additional that's

Yes.

On within the inventory, it plan. our was

the as to for store So able we we export the in. capacity more be move ready tonnage, to when at towards come to our coal have secured they the be have infrastructure, ports vessels

require to on we build of that inventory larger, towards to these to based are railcars size shipments an have export of the than end vessels, shipping obviously, the a our of So does when meet which schedules the movements. the quarter have

early -- that And so ship of shipped that we a was going quarter in we're and that's to just vessels logistical had first issue. the second the timing couple in a there planned quarter,

our as inventory delays the But think to were or consistent we shipping plan our it far as vessels as of X-day be. pretty with going So export planned. was, thinking far was those in what as as was those be for to what continues production, I X-

effective export see quarter, we fifth from the develops I anticipate internal exactly to the those second ability planned, the we second getting on going where customers, that delayed we and then and the to wait market domestic Gibson the in and market to in tons wait the at weekends County. April inbound back after shift half, be have produce probably see we'll of quarter do the we We're market rather and had like miners calls unit vacation for X, the demand. that think based both to the meet hiring the than we're second will where there we delayed hire do to that people if originally but opportunities in on have

our So lot outlook one the will that determined be unit based midyear. of our specific just production to a on demand at

quarter. and And export gas targeted is. that the to are weather the this that the mean and be committed. range continuing our as I able to sales of we'll is at the our be The guidance mentioned are in very we the range targets we demand see prices those are prior comfortable time, in that in year. what our the moment what we At we're midpoint where the at hit have sales for same

like really as Joe. Great. But already expected, but there, had vessel shipped. it's sounds I it appreciate a color slip, just that's timing-wise, that

and are and get domestic lower I Maybe by bit potential tonnage Could like hear. that's additional driven look 'XX versus last 'XX. that of were assumption committed tonnage deferrals? ahead some priced around your a lower totals If It to change? there. we So thoughts color quarter. for more they little good where appears actually Looks domestic updated any on

Yes.

So in it they have their utility forward. our or do some tonnage. carries our flexibility committed to either that, up down basically flex do contracts, When flex customers

from those So period. really a it doesn't tons deferral release subsequent a contract. into It's the just

prices they in the in total under for ship with under were where to tons domestic were, the their of that down taken the opened they the therefore, the export us gotten just more utilities had gas is would have flex door the So the utilities than being projecting actually higher price has market, contracts. That several they more did the natural issue tons a contracts. -- a which we and demand did quarter, first in of

XXXX. the price the some netback in quarter higher than times this is that parts the elected utilities in down to flex these So words, other for of export

the for year was XXXX. mix change there tons in the contracted of calendar a why that's So the

margin. along flex to those able netbacks $XXX? are your I better that export today guess actually with lines, Got around to hear it. up to API X where that's a great And

can When think in to average the as market, in and our total you we look year I that few range. have times as the a the still for at what that be guided we the price will $XX we've what that met somewhere $XX in sales add same sell range netback in to

helpful. be we shipments? mean, do then Very look ahead demand it we about XXXX, And like domestic potential to could Great. pressure. coal think as under how seems I

asked pivot know domestic sales highlighted have this but past, guys you bit. And offset And ramp -- coal the export market could potential to a desire then up on lower the the potential and to to offset I've with segment? in any the EBITDA You little side? export how pressure your growth royalty what's much operations I oil the gas to possible in continued

So are of for and customers still long-term our have contracts Most at that we the as look customers ours. market, at been our look we book. contract with

X.X a us attractive to a will levels to contract compared to have able would margins not that's one that's reached XX our utility continue place agreement customers. million level we prices goes profit that months contracts that historic So for into that rates. beyond that of profit that we those tons that give do the to will the quarter, we to very the at to flexing with of those at be maintain months, how that X or under depending expect end an the years be on over comfort roll able expire if contracts yet XXXX be those term for and that on to option another those would least that with on $X.X term extend committed year a level $X.X of contracts our we the to million, a our Since run

contract, and that that customers to -- addition to export are X think that have then the specific I X RFPs. there in announced far other as as

start minimum the a be to have market this placing for tonnage. of at been to X going Most they're years. solicitations So quarter of those in least

of to basically period ask One them up for for bids years. a X

years, stable product customers. to is So conversations for with the the continuing on X confident going are domestic based for that to our in very the be we our demand domestic market our next for sure, be

to X.X in planning On or ship side, the so million we're export XXXX.

XX.X around Our highest or level was I believe. something, historically

Correct.

that show if So if necessary we volume domestic doesn't market could double the up.

cetera, moving believe et one to the that with well Russia, impacting what be that situation not they shipments of need Ukraine that their on XXXX. any will demand because right now, could continue if the economy. The price what happens it We back the have, levels, money floor at there's in shipments that sanctions are their Russian in throughout of that change making they there's strength think international we for export and is issue with based Russia the the these and their how is comparable strong markets reducing because sanctions, and to product a the product export to a XXXX, is today the change flow cash be on

of Our comes Reichman line Capital Markets. the next question NOBLE with from Mark

could the just XXXX we're was you in on went bit. for price a the I wondering on kind know, little provide Nathan that XXXX commitments the several to, comment of a coal alluded in little down deliveries and if more XXXX, seeking as committed actually I sizable the because visibility domestic customers

in of X-year up? what those contracts. of of are kind the right when said do kind you would expect just you the think to do I that some be market when really you customers step And now? those So dynamics

the that Like for talking. that will capacity meet third third know indicated has be seeking and what there will is X in load. price we're our that will quarter. the come have are run coal mentioned X periods operate plants those They There no sure, Yes. in those, out this Again, I due be to plants or may be coal will current states. a running in to continue in on constraints that the those have I that where customer be they for will others quarter coal their of continue out time to one the based X the there conversations, to they gas needed to states sufficient matter

to factories We the other growth these these are anticipate void anticipated the from to a as EVs matter. ramp they're are continuing as fill states that of the due well growing either also coal the growing that going remain lot benefit that factors to Act. result, with electric and a chipset, Inflation in for Reduction the some that battery to closed the decade bill, economy. as in And plants electrification will these for trying will the in to that capacities. need running at And those over next generation grow that a keep have higher infrastructure and/or

even least there plants at that reliable level should So we be as little capacity producer at go market. the with if not producer be sales we will that that a can export the X said, plants and our may currently, current levels we maybe some production though XXXX, that years next a tick see up anticipate, I be demand low-cost on be depending where offline, open and are we a at believe for the through higher the anticipate a that there's that we sufficient us will set that as

prematurely. put administration regulations to Biden So on our -- close to convince do there the are plants attempts by to try to to them different customers

you which the circuit fifth One overnight, on stringent. is that some rules. producers went of a be coal they in stay know, And state put perspective with the an inadequate federal where would more and Yesterday, from good a to got air news transport plan comply perspective saying nation's rule, we and requiring that denied those them denied therefore, plans almost and basically EPA, numerous in as being those rules the states as their probably

that violation rules And or judgment and believe are to are We stay or passed last West plants pursuing the open. believe the change the coal fundamentally Virginia are that year. going administration to of the Court law that the we rendered try Supreme industry industry electric these coal a Biden generation direct the to

picture. So demand even demand the for to our a boost the that be. will that's see we higher consideration forward But would way be what the

a Weather is unpredictable. that factor always is

comment economy. So I can't and what the is as really to weather that on the

me. You help

growth. to production there hand, trying an On incentivize And got the on hand, give and of up lot administration the got away growth. you've to other to you've incentives trying restrict a one

as not and the next we're their of their is going to to and timing production levels plants fortunate will I'm we to favorable going decade. for for energy this a an that but period sure maintain continue keep the So have our as our are customers that. us consumption, far be open where play current choice and And with solid economy relationship maintain relationship to that out a sales with allow I'm we've got of to at confident extended that supplier time. of

just expense line? I actually how see expenses with kind our guidance, in segment price had biggest -- EBITDA also on of Kind line operating ton revenues per the the the much And sales pretty sold, the came in And And think question are pieces trimmed trimmed do second you for Operating while year? the remainder to watch adjusted expense was sold. you've tons that the that were of per you expectations. looking lower. just at of your what are evolving what do you coal

to inflation. back Everything ties

have key area that we is So continuing is The start firm one sort our have in finding and declining to We're of holding cost labor. difficulty several seen areas. peak supply people.

infrastructure and some talked earlier. see bill I from growth because these of about also occurring We of competition some the that the subsidies is of that

That's to going would and hard area one down. to of to a workers. solid So have be in that to I what workforce we're to we're shortage continue areas for we're that or jobs at our those predict, have going the to so that's say or there whether that people get the in we employees there continues work whether not can -- to looking meet of opportunities seeing workers operation

the side, numbers. different -- our another oil do. We're a projecting supply $XX? to price diesel But for are going hedged going And the see or on you be $XXX analysts variable go that this what factor other That's they issue on is is to year. to could

So on year year, should prices but into for we an that remainder diesel not be go. issue by be of costs the where depending going would next the impacted the diesel

thing. main the be would those So

in to those because chain. last. to at storage some year We're items et costs positioned that of When a more items, your cetera, Supply cost you supply have the your tends need for this chain, then than look and increase buy lot somewhat better cost. that increase potentially

need seeing supplies run we're business. chain be for materials normalized So and our supply we to the

So our prices, and they've say, cost. factor But prices down. I'd ones that the wages impacts oil are come steel another material and that's but

So down. other come have -- and consumables

question from Stonegate. of Dave next Our line comes Storms with the

bit. talk bit you and Appalachia With and that the in about Illinois average tabulation of just going kind a little up Basin there? a dislocation drove little a Can what selling down little bit prices going

serve think -- I market steam got sales Mettiki that markets. well point for our and stable different at us. they mine the the as market as the higher metallurgical being and serves both met that from benefits Well, you've a One, market,

market or demands and Our really product basically attractive also MC Ridge And is a prices. natural the is of gas Mining market premium in sold and for our Appalachia not is very export priced out. -- product Tunnel the operation

it in the had to compared had sell that having periods tonnage Williston some only some product guess into market into supply is the or I relative to reduce open to excess prices really any year, where haven't we prior they natural the impact have did, prices. fact, prior So on gas we any basin was.

to during look the longwall think X at most other quarter, Ridge recent alluding point a Tunnel you important did in the the I quarter. is mix moves issue Joe if that have is there

my a little there. operations and Mettiki And perspective, higher at a percentage have in when did our from going our mining so look you volume

skewed ton, when from so little the X at And as per in cost ton well look factors. those per because quarter both get it bit existing of as revenue you a does that

look you going December. X is I move not next Tunnel had If longwall longwall like moves. forward, until Their mentioned, Ridge,

think I forward what so going And more Tunnel a in a and of you'll relationship normal see overall. is mix mix to Ridge bigger

to forward, And in the both on cost we've ranges on the and so both cost side guidance for tried and forward total our sales you'll of side the it see kind price well. as that revenues and account going going

ground anticipated acquisition? million of Is for on $XX I also helpful. very acquisitions. your any that on increased gas game That's sense royalty that your Understood. you pacing the noticed acquisition of about there guidance based

year, sort that we dependent of present on themselves. to opportunities planned it totally be but sort over Well, of will proratable be it the the

what was a do it's planning basis in it's So year. it we for to it predict the to the be. on But exactly going our planned to hard ratable way

quarter, And as look the first first quarter. you million I the at was at ground the think $X.X see you for can game

Joe time. of quite like opportunities a looking is so themselves there the in play terms mentioned, they're I at. bit And what over out of I activity know will think

different ground we guidance, we said, way as in we of lumpier And at on so But very originally had than feel planned year still able to quarters. terms the come in full it's be likely the game. the little comfortable throughout transact it, being spurts to we'll that a look like going and Joe

There was segment. growth an we on earlier anticipated our be question what would that in

I question. So answered think I don't that

prior EBITDA -- year to we redeploying invest is. what continuing segment, their committed are So but to effectively that in

the into into next to expect then we look going year, that continue of balance to into we sizable be investing this year would dollars So segment. as and

if I And could. one more, very That's helpful.

dollar the with you have keep U.S. sales? impact potential does outlook the for any to weakening, Just how on export that

obviously our is. and what It on competition effects opportunities our improves

of are does most the benefit. give if So a priced dollars, us that in contracts

comes with Research. Our the next David of question from Marsh Singular line

Congrats on the quarter, guys.

just quick side, I a that down bit and discuss price oil the start sequentially. just question was a out forward looked $XX quarter? the just And curious given it royalty kind the what on number Just that for going oil might most the with a the on gas in that part. hung look reduced like what per little BOE range second that -- good little Could dollar drove bit just has number wanted that the was and surprised a like by for to you of

Yes, I hedge we at it, side as our of think and royalty gas look it. just you oil don't

and quarter-over-quarter it's in so the gas if our of time. the measures it realizations, of product just XX% of And on the terms dependent side lower that pricing upon it on for just X.X% during sequentially where the And you was period lower are it. look side oil of

move As where gas for had And realizations on you fourth $X. of the where our in for you quarter actual But in the kind netbacks were ends those into as pricing gas last excess were, year back at being of look example, us under side first quarter look netback on of over $X of and into the side. the it. up you the

so related And it's flows commodity what to those index particular that's price price different just doing a the point the time. And the result commodity that indexes. matter of is -- of at in are

that still it's oil, even percentage smaller it's impact just price. of natural percent though than the gas, more of component a and does total a It's

Right.

-- said XX% appreciate just reading I it. was I Yes, little the and a realization was just was oil, but so I I Understood. low, surprised through Okay. it

our mean is right. I you that's though. when realization sequentially, XX%, look about price down oil No,

just it regard great in looking below the I sheet, as at that's for that the and unitholders, was looking congrats higher. the debt was Got repurchases sequentially, win acquisition? open a the Is I market result for sheet, And it. then your the believe. par, at side though But a -- to company balance just of Got balance debt with of the on the

that No, that of and it's it our of a $XXX redid It was January. credit it. million million a not facility acquisition. $XX a that as had And was that of was term a credit loan. the part we in We new just credit closed $XXX in to X revolver facility facility of really million components result a total.

got new the needs We that needs that And loan reserve some expenditure matched capital were we And of in term capital facility, basically, just like River extensions term loan into part. feel up within that. by into announced areas. we've was component, that with coal our related entered to into the important when And it to some component sense terms component. what associated some entering it have be term loan operations View going made a we credit to an

elected associated with to So loan that. enter term we a facility into

to just quarter-over-quarter. term component. it's So why that higher related loan It's that's

that repurchases The senior we XXXX. did, due as in our notes you are on mentioned, that were

Right.

sense. And question, assets presented on can to acquisition some I last or primarily the the in and And of locking out last around of borrowing piggyback mostly if you're what caller. about else? Permian Okay. banks the just I'm the then anything sure that? opposed it, That of talk kind environment Are appreciated back amount being into could seeing have circle search mean, just the of With right you side, terms you and you? to regard I makes the expanded oil opportunities is -- and see like beyond kind you to the places in again, opportunities you of still as continuing gas to the gate.

the the basins to on us are the evaluate. presented both the all has opportunities that our But and basins. been in Yes, there focus primary Delaware we Permian, Midland

So our that's focus will be. where

willing we're again, look basins, the But as we other those. attractive things are Permian. most of to us the in Now at to we being prioritize and evaluate currently

might of was really as might weakness the weather opportunity. folks given positions I create curious, gas, or on the not interested which a the the Haynesville, in just exiting be kind interesting in in that

we're mentioned, opportunities evaluating I As basins. all in

one. to we're So not exclusive

that the trying advantage We're when of new ones to sell not prices we can gas in opportunities to expectations price have the look return their that look to doesn't we've the today. lock feel long-term and be presented more to right, many in prioritize could that now, And then try people best and that right in investment so like can there -- be finding capital at opportunities we we they're looking won't that we price too to some lower low take we at mean try the we us, to met got ones assess at the that the that where where come and available we're they're these at want . the being Permian-based

Right.

Okay. for Cary. Last me, X

your nicely the in talk just noticed are? doing with interest increased and income I to liquid you're incremental cash the how Could generate about investments order you quickly, some in quarter. what income Just interest those

today on interest invested the we accounts. matter rates have Sure. Interest have up income going. been sheet money It's Most cash the the Yes. market that quarter. of a is in balance just on was where of

with increasing with market So it's And as amount been do that increase that's short-term of a the in relationships. sheets on over in short-term, to roughly time. We liquid. have markets total, accounts others may a bit other our you today. than existing overall cash of balance all have more of on interest our balances accounts the availability money money you bank very what XX% very modest money But our at rate rates very cash XX% earn know, period banking in get out little lower liquid our of market

Martin with Nathan from Company. comes question next Our Benchmark

any is regulations just point number? customer over see to like And you your out do years, of that maybe domestic with the your this domestic you that? if few guys what percentage on related I big horizon, base, look business If the at changes recurring next anything maybe have

capacity secured mentioned the ports And then the there. at you look as export side, we some you've at additional

over Joe, demand if XX XX to number maxed million have million export there close get are you the think that to expect tons there? out million-ton said around but to would now had items Or is capacity have year, this first? you I to historically. other address you the X.X Do you guys

that the couple don't have Obviously, for we have We only unsold our tons, year. of have so capacity. production the a don't million is -- this position we because

a So standpoint ship that so. we to rate be from logistics to would we to at elected able have the capacity if do

various mix see among as time with their XXXX earlier, our coal the some are coal looking taking far going plants capacity at volumes that need IRPs think in that said remaining they other to plants what period the changes is could that customers. been on higher keep we customers I that the what base, they retirements factors. at in And they've looking open, utilizing horizon. really consistent as There are any they the don't are still tweak even , substantial the they But of our at some customer to remain as be to those much with they closures I that pretty because us sure would are

in really the shifts next see our for customer we So X mix. years, don't any

repurchases $X.XX current fit you this X.Xx. to then maintain thoughts And I the that previously X.X hold the a where per into Does quarterly looking you But mentioned potential kind that think to then know distribution mentioned coverage on unit capital Great. could expectation Joe, any year. Appreciate I go of do that. where equation? And the of distribution throughout ratio still unit true? target forward? return Cary,

Yes.

would the into forward. think terms terms in you to which distribution for to distribution that coverage in that's the in focus. is tend provided beyond year. that's going gives X.Xx we'll that of we view forward. But that we as guidance where range look that And to coverage, closer levels haven't still we Typically, we I our of of as to XXXX, just where X distribution talked pretty what about a sense you good do of XXXX. detailed would get end on any Obviously, going

makes our the agreement covenants credit stock given do for anyway, will back And agreement to sense replace We doing to of at would our believe what the an buyback, as time mentioned us the market those a which bonds or par notes, right focus continue trying -- redeem them There we buying period, senior certain be look May those on underlying we we've flexibility either that as have that think we primary under agreement. to and cost in to and bonds. the credit I bonds. think now Yes. our retire I within our buying at really current under And is agreement. we the back and X, those expectation are under what that we've been I reborrowing can go do ability credit to our it

of back Marshall for remarks. question-and-answer over to reached the now And end we Cary have the closing call I'll the And turn session.

this to continued your time morning the support everyone as your and Alliance. also and operator. appreciate we on Thank And in interest well you, call,

expected again and late in call is to results Our our XXXX hope to occur operating financial currently will that and everyone next we us quarter at July, join discuss time. second

This for concludes the day. you. our call Thank

And you at participation. Thank for lines concludes may your you time. today's and disconnect conference, your this this