What Will Happen to Alliance Resource Partners, L.P. Midstream and Oil and Gas Businesses?

Alliance Resource Partners, L.P. (NASDAQ: ARLP) is perhaps the best run thermal coal company in the United States. But coal is slowly losing its place in the electric grid. There's no immediate danger to Alliance's business, but that doesn't mean it's sitting still. Which is why you'll want to keep an eye on its efforts to push into new areas, like midstream and oil and gas.

There's no point in ignoring the obvious: coal is being displaced by cleaner burning natural gas and renewable power options like solar and wind. Gas has been the real winner here because low gas prices have made it cost competitive with coal. At this point too much has changed for coal to gain back a significant share of the power market. But the transition away from coal is a relatively slow one.

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Source: Fool.com