Stock Monitor: Alliance Holdings GP Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 26, 2018 / Active-Investors.com has just released a free research report on Alliance Resource Partners, L.P. (NASDAQ: ARLP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ARLP as the Company's latest news hit the wire. On February 23, 2018, Alliance Resource Partners ("ARLP") announced that it has entered into an agreement with Alliance Holdings GP, L.P. (NASDAQ: AHGP) wherein AHGP would become a wholly owned subsidiary of ARLP. AHGP is a limited partnership which was formed to own and control Alliance Resource Management GP, LLC, the managing general partner of ARLP. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Alliance Resource Partners and Alliance Holdings GP most recent news are on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Details of the transaction
As per the agreement between ARPL and AHGP, both Companies have agreed to execute a series of transactions (Simplification Transactions). As a result of these Simplification Transactions, all units of ARPL owned by AHGP and its subsidiaries will be distributed to the unitholders of AHGP in exchange for their AHGP's common units.
Additionally, under the Simplification Transactions, ARPL plans to issue fresh ARLP's units to acquire 1.0001% general partner interest in Alliance Resource Operating Partners, L.P. and the 0.001% managing membership interest in Alliance Coal, LLC. The total number of ARPL units to be issued will be calculated based on ARPL's last quarter's cash distributions before the close of the Simplification Transactions. These new ARPL's units will provide the equivalent value of cash which would have been paid to the unit-holders if the transaction had not taken place. Given that ARPL paid $0.51 per ARLP's common unit as quarterly distributions (announced in January 2018 for the quarter ended on December 31, 2017), ARPL would have to issue approximately 1,320,377 ARLP's common units at the close of the Simplification Transaction.
Once the Simplification Transactions are complete, all AHGP's units will be void and the Company and its units will be delisted from the exchange. The agreement has received the approval of the Boards of Directors of both ARPL and AHGP's general partners and is expected to be completed in Q2 2018 or Q3 2018. The deal is subject to receiving regulatory approval, approval from AHGP's unit-holders and other closing conditions. ARPL has confirmed that key unit-holders of AHGP who have majority holding have agreed to the Simplification Transactions and have given their written consent supporting the deal. ARPL has filed necessary documents with the Securities and Exchange Commission (SEC) regarding the transaction and exchange of units.
Rationale behind the decision
ARPL had explained that the entire agreement and the Simplification Transactions are being executed with the aim of simplifying the organizational structure of the Alliance Partnerships. The transaction will also allow for increased investor transparency and attract a broader investor base to a single, larger entity with increased public float and greater liquidity. The transaction will also lead to synergies by eliminating duplicative costs of maintaining two separate public companies.
About Alliance Resource Partners, L.P.
Tulsa, Oklahoma-based ARPL is a diversified producer and marketer of steam coal to major utilities and industrial users in the US. It is the nation's first publicly traded master limited partnership involved in the production and marketing of coal. ARPL started mining operations in 1971 and is currently the second largest coal producer in the eastern US with mining operations in the Illinois Basin and Appalachian coal producing regions. The Company operates eight mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia as well as a coal-loading terminal on the Ohio River at Mount Vernon, Indiana. ARPL's other revenue sources include investments in oil and gas royalty interests and gas compression services.
Stock Performance Snapshot
February 23, 2018 - At Friday's closing bell, Alliance Resource Partners' stock marginally fell 0.28%, ending the trading session at $17.80.
Volume traded for the day: 298.76 thousand shares.
After last Friday's close, Alliance Resource Partners' market cap was at $2.33 billion.
Price to Earnings (P/E) ratio was at 5.09.
The stock has a dividend yield of 10.96%.
The stock is part of the Basic Materials sector, categorized under the Industrial Metals & Minerals industry. This sector was up 1.7% at the end of the session.
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