Published On: Sat, Aug 3rd, 2019

Alliance Resource Partners buys Midland Basin assets from Wing Resources

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Energy acquisition news : Alliance Resource Partners (ARLP), an Oklahoma-based natural resource company, has completed a previously announced $145 million acquisition of oil and gas mineral interests from Wing Resources and Wing Resources II (collectively, Wing Resources) in the US Midland Basin.

The acquisition expands the footprint of Alliance Resource Partners in the Permian Basin courtesy of the addition of nearly 9,000 net royalty acres in the Midland Basin with exposure to over 400,000 gross acres.

The acquired acreage from Wing Resources has 827 horizontal wells in total that are currently producing more than 500 BOE per day, of which 71% is oil and 14% are NGLs.

Alliance Resource Partners said that with an additional 405 drilled but uncompleted wells and 298 permits, the acquired assets are being actively developed by well-funded operators which indicates visible and near-term growth to current production.

Alliance Resource Partners acquires Midland Basin assets from Wing Resources.

Alliance Resource Partners acquires Midland Basin assets from Wing Resources. Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Joseph W. Craft III – Chairman, President and CEO of Alliance Resource Partners said: “Today’s announcement reflects ARLP’s commitment to build its oil and gas minerals segment as a strategic growth platform.

“The Wing acquisition enhances our already significant ownership position in the prolific, liquids-rich Permian Basin. Combined with our other minerals assets, we expect the organic growth of our minerals segment to provide meaningful EBITDA and cash flow contributions within the next two years.

“Continued disciplined acquisitions will further enhance the long-term cash flow growth for ARLP and create value for our unitholders.”

Alliance Resource Partners now directly holds nearly 51,000 net royalty acres concentrated in the Permian Basin (47.0%), SCOOP/STACK play (40.0%), Bakken Basin (8.0%) and Appalachian Basin (5.0%). The natural resource company also owns indirectly about 4,000 net royalty acres through its limited partner interest in AllDale Minerals III.

Evercore was the financial advisor to Alliance Resource Partners for the Wing Resources transaction. For Wing, TenOaks Energy Advisors was the financial advisor, as per the latest oil and gas industry news.

For more energy acquisition news and oil and gas news, keep following Business News Today.

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