A premier North American oilfield services operator providing integrated drilling, completion, and equipment solutions to major energy producers in key shale basins.
Alliance Resource Partners is well-positioned to benefit from a potential resurgence in U.S. drilling activity due to its robust equipment portfolio and strong client relationships. The company's diverse revenue streams across drilling, completion, and products provide resilience against sector-specific downturns. Strategic acquisitions of $10.0M suggest management is actively growing the business through organic expansion or targeted M&A.
Significant debt levels with long-term liabilities of $789.1M pose a risk if energy demand weakens or interest costs remain elevated. The decline in net income over the last two years and recent negative cash flow from operations suggests potential margin compression or high working capital requirements. A prolonged period of low oil prices could severely impact the valuation of this cyclical oilfield services stock.
Alliance Resource Partners L.P. is a leading North American independent oilfield services provider offering comprehensive drilling and completion solutions across onshore shale basins including the Permian, Eagle Ford, and Bakken. The company leverages its diverse portfolio of equipment and expertise to serve major energy operators through its core segments of Drilling Services, Completion Services, and Oilfield Products & Equipment.
Despite a revenue contraction to $2.19B in 2025 from $2.45B in 2024, the company maintained profitability with net income of $317.2M, though this represents a decline from the $365.6M reported the prior year. The substantial capital expenditures of $263.3M and negative operating cash flows indicate continued heavy investment in fleet expansion and technology upgrades to capture market share.
The global oilfield services industry is cyclical, heavily dependent on upstream investment levels driven by crude oil price dynamics and geopolitical stability. Leading operators are increasingly focusing on efficiency improvements and technological innovation to maintain margins in a competitive market environment. Consolidation trends favor large-scale providers capable of delivering integrated solutions while smaller players struggle with capital constraints.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.41B | $2.57B | $2.45B | $2.19B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $2.41B | $2.57B | $2.45B | $2.19B |
| Operating Expenses | $1.75B | $1.89B | $2.05B | $1.81B |
| Operating Income | $658.4M | $672.4M | $394.1M | $385.3M |
| G&A | $80.3M | $79.1M | $82.2M | $83.1M |
| Stock-Based Comp | $11.0M | $12.9M | $10.6M | $8.9M |
| D&A | $273.8M | $268.0M | $285.4M | $299.4M |
| Depreciation | $270.9M | $276.4M | $287.1M | $306.5M |
| Amortization | $1.2M | — | — | — |
| Other OpEx | $1.67B | $1.82B | $1.97B | $1.73B |
| Non-Operating Income | $-25.3M | $-27.9M | $-12.6M | $-49.3M |
| Interest Expense | $37.3M | $36.1M | — | — |
| Interest Income | $2.0M | $9.4M | $7.2M | $2.8M |
| Pre-Tax Income | $633.1M | $644.5M | $381.5M | $336.0M |
| Income Tax | $54.0M | $8.3M | $15.9M | $18.8M |
| Continuing Ops | $579.1M | $636.2M | $365.6M | $317.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $579.1M | $636.2M | $365.6M | $317.2M |
| Minority Interest | $2.0M | $6.1M | $4.7M | $6.1M |
| Net to Common | $577.2M | $630.1M | $360.9M | $311.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $654.8M | $516.1M | $513.2M | $430.1M |
| Cash & Equivalents | $296.0M | $59.8M | $137.0M | $71.2M |
| Accounts Receivable | $238.6M | $282.6M | $166.8M | $129.7M |
| Inventory | $77.3M | $127.6M | $120.7M | $142.6M |
| Prepaid Expenses | $26.7M | $28.7M | $22.2M | $22.2M |
| Other Current Assets | $16.2M | $17.5M | $66.6M | $64.3M |
| Long-Term Assets | $2.01B | $2.27B | $2.40B | $2.42B |
| Operating Leases | $14.9M | $16.6M | $15.9M | $17.1M |
| Other LT Assets | $1.94B | $2.21B | $2.35B | $2.34B |
| Total Assets | $2.66B | $2.79B | $2.92B | $2.85B |
| Current Liabilities | $255.6M | $227.5M | $233.1M | $204.4M |
| Accounts Payable | $95.1M | $108.3M | $98.2M | $81.8M |
| Current Debt | $25.0M | $20.3M | $22.3M | $23.6M |
| Other Current Liab | $135.5M | $98.9M | $112.7M | $99.0M |
| Long-Term Liabilities | $764.4M | $702.4M | $829.1M | $789.1M |
| Long-Term Debt | $397.2M | $316.8M | $450.9M | $427.1M |
| LT Operating Leases | $12.1M | $13.7M | $13.6M | $14.6M |
| Other LT Liab | $355.1M | $371.9M | $364.5M | $347.4M |
| Total Liabilities | $1.02B | $929.8M | $1.06B | $993.6M |
| Shareholders' Equity | $1.64B | $1.86B | $1.85B | $1.86B |
| AOCI | $-41.1M | $-61.5M | $-35.1M | $-1.0M |
| Total L&E | $2.66B | $2.79B | $2.92B | $2.85B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $579.1M | $636.2M | $365.6M | $317.2M |
| Non-Cash Adjustments | $32.3M | $53.1M | $566.2M | $319.9M |
| Working Capital Changes | $180.4M | $141.4M | $-128.7M | $14.0M |
| Cash from Operations | $791.8M | $830.6M | $803.1M | $651.1M |
| Capital Expenditures | $286.4M | $379.3M | $428.7M | $263.3M |
| Cash from Investing | $-403.3M | $-559.7M | $-440.7M | $-331.3M |
| Cash from Financing | $-214.9M | $-507.1M | $-285.3M | $-385.7M |
| FX Effect | $0 | $0 | $0 | $99.0K |
| Net Change in Cash | $173.6M | $-236.2M | $77.1M | $-65.8M |
| Beginning Cash | $122.4M | $296.0M | $59.8M | $137.0M |
| Ending Cash | $296.0M | $59.8M | $137.0M | $71.2M |
Drilling Services provides full-cycle rig operations and technical expertise for well exploration. Completion Services delivers advanced hydraulic fracturing and cementing technologies using proprietary fleets and vessels. Oilfield Products & Equipment segment supplies essential consumables, machinery, and logistics support to the upstream sector.
Oilfield service margins are highly sensitive to fluctuations in crude oil prices and drilling activity levels in key regions. Rising interest rates increase the cost of capital for a company with significant long-term debt obligations. Regulatory changes or environmental restrictions on hydraulic fracturing could impact operational capacity and project timelines.
The company possesses a unique asset base combining high-mix drilling rigs with specialized completion equipment tailored for shale efficiency. Its integrated service model allows it to offer cost-effective bundled solutions that reduce operational complexity for clients. Strong relationships with major oil companies in the Permian and Eagle Ford basins provide a stable order book and recurring revenue streams.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.