Alliance Resource Partners, L.P. Announces Issuance of WARN Act Notice at Gibson Complex
TULSA, Okla.--(BUSINESS WIRE)--Nov 15, 2019--
Alliance Resource Partners, L.P. (NASDAQ: ARLP) announced today that its subsidiary, Gibson County Coal, LLC, has issued Workers Adjustment and Retraining Notification (WARN) Act notices to approximately 185 of its employees as a result of idling production at the Gibson North mine.
“A substantial portion of production from the Gibson Complex has been dedicated to supplying the international coal markets,” said Joseph W. Craft III, Chairman, President and Chief Executive Officer. “The export markets have deteriorated over the last seven months and have contributed to an over-supplied domestic market. Although we anticipate coal markets will improve, predicting when a rebound may occur is difficult and led to our actions today. Until conditions improve, this production response at the Gibson North mine allows ARLP to adjust volumes from the Gibson Complex to meet current demand expectations at the lowest cost possible. While market conditions made this decision necessary, we deeply regret the impact of this action on our employees, their families and their communities.”
The Gibson North mine produced this year approximately 1.7 million tons of coal through October 31, 2019. ARLP does not expect the idling of Gibson North to have any impact on its previously announced earnings guidance provided in its October 28, 2019 Press Release, including 2019 full-year ranges for coal production of 40.1 to 40.4 million tons and coal sales volumes of 39.1 to 39.5 million tons.
About Alliance Resource Partners, L.P.
ARLP is a diversified natural resource company that generates income from coal production and oil & gas mineral interests located in strategic producing regions across the United States.
ARLP currently produces coal from seven mining complexes it operates in Illinois, Indiana, Kentucky, Maryland and West Virginia. ARLP also operates a coal loading terminal on the Ohio River at Mount Vernon, Indiana. ARLP markets its coal production to major domestic and international utilities and industrial users and is currently the second largest coal producer in the eastern United States.
ARLP generates royalty income from mineral interests it owns in premier oil & gas producing regions in the United States, primarily the Permian, Anadarko, Williston and Appalachian basins.
In addition, ARLP also generates income from a variety of other sources.
News, unit prices and additional information about ARLP, including filings with the Securities and Exchange Commission (“SEC”), are available at http://www.arlp.com. For more information, contact the investor relations department of ARLP at (918) 295-7674 or via e-mail at firstname.lastname@example.org.
The statements and projections used throughout this release are based on current expectations. These statements and projections are forward-looking, and actual results may differ materially. These projections do not include the potential impact of any mergers, acquisitions or other business combinations that may occur after the date of this release. We have included more information below regarding business risks that could affect our results.
FORWARD-LOOKING STATEMENTS: With the exception of historical matters, any matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. These risks, uncertainties and contingencies include, but are not limited to, the following: changes in coal prices, which could affect our operating results and cash flows; changes in competition in domestic and international coal markets and our ability to respond to such changes; legislation, regulations, and court decisions and interpretations thereof, both domestic and foreign, including those relating to the environment and the release of greenhouse gases, mining, miner health and safety and health care; deregulation of the electric utility industry or the effects of any adverse change in the coal industry, electric utility industry, or general economic conditions; risks associated with the expansion of our operations and properties; our ability to identify and complete acquisitions; dependence on significant customer contracts, including renewing existing contracts upon expiration; adjustments made in price, volume or terms to existing coal supply agreements; changing global economic conditions or in industries in which our customers operate; recent action and the possibility of future action on trade made by United States and foreign governments; the effect of new tariffs and other trade measures; liquidity constraints, including those resulting from any future unavailability of financing; customer bankruptcies, cancellations or breaches to existing contracts, or other failures to perform; customer delays, failure to take coal under contracts or defaults in making payments; fluctuations in coal demand, prices and availability; changes in oil & gas prices, which could, among other things, affect our investments in oil & gas mineral interests; our productivity levels and margins earned on our coal sales; decline in or change in the coal industry’s share of electricity generation, including as a result of environmental concerns related to coal mining and combustion and the cost and perceived benefits of other sources of electricity, such as natural gas, nuclear energy and renewable fuels; changes in raw material costs; changes in the availability of skilled labor; our ability to maintain satisfactory relations with our employees; increases in labor costs including costs of health insurance and taxes resulting from the Affordable Care Act, adverse changes in work rules, or cash payments or projections associated with post-mine reclamation and workers’ compensation claims; increases in transportation costs and risk of transportation delays or interruptions; operational interruptions due to geologic, permitting, labor, weather-related or other factors; risks associated with major mine-related accidents, mine fires, mine floods or other interruptions; results of litigation, including claims not yet asserted; foreign currency fluctuations that could adversely affect the competitiveness of our coal abroad; difficulty maintaining our surety bonds for mine reclamation as well as workers’ compensation and black lung benefits; difficulty in making accurate assumptions and projections regarding post-mine reclamation as well as pension, black lung benefits and other post-retirement benefit liabilities; uncertainties in estimating and replacing our coal reserves; uncertainties in estimating and replacing our oil & gas reserves; uncertainties in the amount of oil & gas production due to the level of drilling and completion activity by the operators of our oil & gas properties; a loss or reduction of benefits from certain tax deductions and credits; difficulty obtaining commercial property insurance, and risks associated with our participation in the commercial insurance property program; and difficulty in making accurate assumptions and projections regarding future revenues and costs associated with equity investments in companies we do not control.
Additional information concerning these and other factors can be found in ARLP’s public periodic filings with the SEC, including ARLP’s Annual Report on Form 10-K for the year ended December 31, 2018, filed on February 22, 2019 and ARLP’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019, filed on May 6, 2019, August 5, 2019 and November 5, 2019, respectively, with the SEC. Except as required by applicable securities laws, ARLP does not intend to update its forward-looking statements.
View source version on businesswire.com:https://www.businesswire.com/news/home/20191115005452/en/
CONTACT: Brian L. Cantrell
Alliance Resource Partners, L.P.
KEYWORD: OKLAHOMA UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: OIL/GAS COAL NATURAL RESOURCES ENERGY MINING/MINERALS
SOURCE: Alliance Resource Partners, L.P.
Copyright Business Wire 2019.
PUB: 11/15/2019 02:15 PM/DISC: 11/15/2019 02:15 PM