As part of the transaction, ARLP bought the AllDale general partner interests and all of the limited partner interests in the company that are not currently owned by the former’s affiliate, Cavalier Minerals JV.
Through the acquisition, the Oklahoma-based company said that it has gained control of nearly 42,000 net royalty acres in premier oil and gas resource plays.
The acquired acreage is concentrated in the SCOOP/STACK (48.5%), Delaware Basin (19.5%), Midland Basin (16.2%), Bakken (9.7%) and Appalachian Basin (6.1%) regions.
Apart from that, the company also owns about 3,950 net royalty acres via its limited partner stake in AllDale Minerals III.
ARLP president and CEO Joseph Craft III said: “Closing of the AllDale transaction provides ARLP with significant ownership of attractive oil and gas mineral interests.
“This transaction lays the foundation for a new growth platform for ARLP. The royalty income generated by these mineral interests is expected to be immediately accretive to ARLP’s cash flow in 2019 and we anticipate a growing royalty stream that will provide long-term future value to ARLP unitholders.”
ARLP’s acreage is being developed by operators like Continental Resources, Devon Energy, Anadarko Petroleum, Concho Resources and Pioneer Natural Resources. Currently, there are 3,821 gross producing wells generating production net to ARLP’s interest of around 2,611 barrels of oil equivalent per day.
Apart from that, there are currently 495 wells being drilled on the company’s acreage and a further 860 permitted well locations.
In addition to its oil and gas mineral interests, ARLP calls itself as a diversified producer and marketer of coal mainly to major US utilities and industrial users. The company operates eight underground mining complexes located across Illinois, Indiana, Kentucky, Maryland and West Virginia.
It is also engaged in gas compression services in different geographic locations in producing basins in the continental US.
