Alliance Resource Partners to Acquire AllDale Minerals for $206.2M
Alliance Resource Partners, L.P. (ARLP) announced a definitive agreement to acquire interests in AllDale Minerals III, LP and AllDale Minerals IV, LP for approximately $206.2 million. This acquisition is expected to significantly expand ARLP's oil and gas royalties platform, increasing its economic interest in the acquired assets from approximately 5% to 61%. The deal, which includes approximately 48,500 net royalty acres across premier basins, is expected to be immediately accretive to free cash flow and maintain leverage below 1.0x. Notably, related parties of CEO Joseph W. Craft III will acquire $100.0 million of limited partner interests on similar terms, with the transaction approved by an independent conflicts committee.
Key Highlights
- Alliance Resource Partners (ARLP) to acquire AllDale III & IV interests for $206.2M.
- Transaction implies an aggregate gross valuation for AllDale III & IV of $410.0M.
- ARLP's economic interest in AllDale III & IV to increase from ~5% to 61% post-closing.
- Acquisition includes ~48,500 net royalty acres across Permian, Anadarko, Bakken, Haynesville.
- Implied acquisition multiple of ~5.0x projected NTM Adjusted EBITDA for ARLP's portion.
- Expected to be immediately accretive to ARLP's free cash flow per unit.
- Pro forma total leverage expected to remain below 1.0x.
- Transaction approved by the conflicts committee of ARLP's general partner.
Price Impact
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