A Tulsa coal company recently disclosed it has been buying minerals interests in the Permian Basin in the third and fourth quarters as it expands on earlier acquisitions made in 2019.
Alliance Resource Partners LP reported in November it had closed two transactions totaling $94.5 million to acquire an additional 4,322 net oil and gas royalty acres in the Permian Basin, according to Securities and Exchange Commission (SEC) regulatory filings.
On Oct. 26, Alliance Resource acquired approximately 3,928 oil and gas net royalty acres in the Midland and Delaware basins from Jase Minerals LP for $81.2 million. The transaction was funded with cash on hand.
Alliance Resource said that it accounted for the transaction as a business combination because the acquisition included developed and undeveloped properties.
And on Sept. 2, subsidiary Alliance Royalty LLC acquired approximately 394 net oil and gas royalty acres in the Delaware Basin from Belvedere Operating LLC for $11.4 million cash, which was funded with cash on hand. The transaction was also accounted for as a business combination.
Alliance Resource said the acquisition gives the company exposure to a prolific area of the Delaware Basin that is close to reserves it already owns.
Belvedere Acquisition Highlights
Interest type |
Value ($MM) |
Mineral interests in proved properties |
$7.72 |
Mineral interests in unproved properties |
$3.67 |
Total |
$11.39 |
Alliance Resource previously closed two deals in 2019, including a $175.96 deal to acquire interests in the Bakken, SCOOP/ STACK, Delaware, Midland and Appalachian basins. In a separate deal, Alliance Resource purchases assets in the Permian from private-equity backed Wing Resources LLC for $145 million.
Despite being the largest coal producer in the eastern U.S., the company has diversified into several areas including minerals and royalty ownership.
In October, Alliance chairman, president and CEO Joseph W. Craft III said the company owned interests in approximately 57,000 net royalty acres in a portfolio that includes the Permian, Anadarko and Williston basins.
“We market our oil & gas mineral interests for lease to operators in those regions and generate royalty income from the leasing and development of those mineral interests,” Craft said.
Recommended Reading
Summit Sees Drop-off in Gas Traffic Following Utica Midstream Sale
2024-08-09 - Summit Midstream spent the second quarter reorganizing and raising cash for the future, the company's CEO said.
Permian Resources Announces Financing Moves Following Oxy Deal
2024-07-29 - Permian Resources’ will offer cash for its senior notes Due 2026, among other financing moves, following a July 29 agreement to buy Delaware Basin assets from Occidental Petroleum for $817.5 million.
Oxy Nears $4.5B Debt Reduction Target Post Barilla Draw Sale
2024-08-19 - Occidental Petroleum, which paid $12 billion to acquire CrownRock LP, looks to achieve 85% of its near-term debt reduction target of $4.5 billion by the end of the third quarter 2024, says Oxy CEO Vicki Hollub.
Solaris to Acquire Mobile Energy Rentals, Rename to Solaris Energy Infrastructure
2024-07-10 - Following the closing of its deal to acquire Mobile Energy Rentals, Solaris Oilfield Infrastructure will also be rebranding to Solaris Energy Infrastructure to more closely represent its expanded solutions offerings.
SM Energy Offers Senior Notes to Help Fund $2B XCL Resources’ Deal
2024-07-18 - SM Energy said it intends to use the net proceeds from the notes to fund its pending $2.04 billion purchase of XCL Resources.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.