Tulsa-based Alliance Resource Partners said last week it is acquiring general partner and limited partner interests in AllDale Minerals III and AllDale Minerals IV for $206.2 million. AllDale Minerals III and AllDale Minerals IV hold about 48,500 net royalty acres in multiple basins and resource plays, including Permian Basin. Alliance’s announcement said the transaction implies an aggregate gross valuation for AllDale III and IV of about $410 million.
Permian Basin accounts for 7,300 of the net royalty acres and 52 percent of total royalty revenue in first quarter. Production in the Permian assets in Q1 was 5,940 boed, and 67 percent of Q1 total royalty revenue was generated from oil. Closing is expected in July.
Joseph W. Craft III, chairman, president and CEO of Alliance, said June 8, “This acquisition accelerates the continued growth of our oil and gas royalties segment. The AllDale III and IV portfolio adds scale and development upside across multiple U.S. basins, anchored by a meaningful Permian position.”