Alliance Resource Partners Acquires $206.2 Million Oil and Gas Mineral Interests

By Ahmed Jamerson • Thursday, July 02 10:53 • Permanent Link

Alliance Resource Partners completed a $206.2 million acquisition of oil and gas mineral interests, adding to its royalty acreage in a deal funded with cash, revolving credit borrowings and a new term loan.

The company said it bought certain general partner and limited partner interests in Alldale Minerals III, LP and Alldale Minerals IV, LP. The purchase price was about $206.2 million, subject to customary post-closing adjustments.

After the transaction, Alliance Resource Partners said it now controls about 115,680 net royalty acres in its oil and gas royalties segment, including more than 44,770 net royalty acres in the Permian Basin.

The acquisition was financed with cash on hand, borrowings under its revolving credit facility, and a new $150.0 million term loan at its wholly owned subsidiary, Alliance Minerals, LLC.

The company said it expects to discuss the acquisition further on its next quarterly earnings call. The market has reacted to these announcements by moving the company's shares 0.46% to a price of $23.85. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.