Alliance Resource Partners said it will pay about $206.2 million to acquire additional general partner and limited partner interests in Alldale Minerals III and IV, a move that lifts its economic stake in the royalty portfolio from roughly 5% to 61%.
The transaction implies a gross valuation of about $410.0 million for Alldale III & IV. Of the interests being sold by third parties, about $306.2 million are changing hands in total, with $206.2 million going to Alliance Resource Partners and another $100.0 million going to related parties of Chairman, President and CEO Joseph W. Craft III.
The deal is set to close in July 2026, with an effective date of April 1, 2026.
Alldale III & IV bring about 48,500 net royalty acres across the Permian, Anadarko, Bakken and Haynesville basins. In the first quarter of 2026, the assets produced about 5,940 barrels of oil equivalent per day in total, or 3,665 boe per day net to Alliance’s economic interests. The production mix was 27% oil, 18% natural gas liquids and 55% natural gas. Oil accounted for about 67% of total royalty revenue in the quarter.
The Permian represented about 7,300 of the net royalty acres and 52% of first-quarter 2026 royalty revenue. The acquisition also increases trailing-twelve-month new wells placed on production by 59% in the Northern Delaware, 78% in Anadarko and 91% in the Bakken.
Alliance said the purchase price works out to about 5.0 times projected next-twelve-month adjusted EBITDA, based on June 5, 2026 strip pricing and including existing hedges to be assumed at closing.
On a pro forma basis, the oil and gas royalties segment is expected to control about 115,680 net royalty acres, including more than 44,770 in the Permian. First-quarter 2026 production on the pro forma portfolio is expected to total about 17,295 boe per day, or 14,285 boe per day net to Alliance’s economic interests. The combined portfolio would have exposure to 59 gross active rigs, including 47 on Permian acreage.
Alliance said the deal will be funded with cash on hand, borrowings under its revolving credit facility and a new debt facility at Alliance Minerals, a wholly owned subsidiary. Pro forma leverage is expected to remain below 1.0x after closing. Following these announcements, the company's shares moved 1.01%, and are now trading at a price of $25.88. If you want to know more, read the company's complete 8-K report here.
