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    Alliance Resource Partners (ARLP) Could Be 19% Undervalued Following Royalty Growth Narrative

    Simply Wall St·10/25/2026 23:32:00
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    Alliance Resource Partners (ARLP) has been drawing attention after a recent stretch of positive returns, with the stock up over the past week, month and past 3 months. Investors are reassessing the partnership’s coal and royalties exposure.

    Across a longer window, the recent lift in Alliance Resource Partners’ share price sits on top of a 12.24% year to date share price return and a 24.93% total shareholder return over 12 months. This suggests momentum has been building rather than fading.

    Scan beyond Alliance Resource Partners and compare its recent momentum with a curated set of 29 high quality undervalued stocks that also pair solid balance sheets with active share price moves.

    After that run, Alliance Resource Partners now trades at $26.14 compared with analyst targets around $31 and a much higher intrinsic value estimate. So where does fair value really sit in that spread?

    Most Popular Narrative: 16% Undervalued

    Against that $26.14 last close, the most followed narrative on Alliance Resource Partners lines up around a fair value near $31.17, using a 7.24% discount rate and explicit assumptions about future earnings and margins.

    Expanding oil and gas royalties, including over US$1b invested in minerals interests and the increased economic interest in AllDale III and IV to about 61%, positions Alliance Resource Partners for higher royalty volumes and a growing contribution to revenue and EBITDA from a business that has recently reported record quarterly royalty results.

    See why 27 investors see Alliance Resource Partners as 16% undervalued.

    Result: Fair Value of $31.17 (UNDERVALUED)

    Still, the narrative around Alliance Resource Partners could be knocked off course if coal pricing keeps shifting toward lower priced index linked contracts or if further mine level impairments and Bitcoin related fair value losses weigh on reported earnings.

    Find out about the key risks to this Alliance Resource Partners narrative.

    Next Steps

    Mixed messages in the Alliance Resource Partners story so far. If you want to move quickly and decide for yourself, consider the trade off between its upside potential and risk profile by checking the 3 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Alliance Resource Partners?

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