Coal company Alliance Resource Partners LP is upping its oil and gas mineral acreage in the Permian Basin with recently closed and pending acquisitions totaling $150 million.

Alliance said in a Jan. 30 regulatory filing that its board approved the acquisition of 2,682 net oil and gas royalty acres in the Permian Basin from JC Resources LP.

JC Resources is owned by Joseph W. Craft III, chairman, president and CEO of Alliance Resources, the company said.

Upon closing, Alliance said the acquisition is expected to be immediately accretive to cash flow.

The purchase price will be funded with available cash and is expected to close within the next 30 days based on an effective date of Jan. 1, 2023.

“Since the acquisition involves a related party, terms of the transaction were approved by the [Alliance] board’s conflicts committee, which is comprised entirely of independent directors,” the company said in a press release.

The company also reported that it had completed an $81.2 million acquisition of oil and gas mineral interest that was announced in October 2022. The assets acquired included approximately 3,928 oil and gas net royalty acres in the Midland and Delaware basins from Jase Minerals LP. The transaction was funded with cash on hand.

Brian Cantrell, Alliance senior vice president and CFO, said the new acquisition not only further enhances “our existing high-quality Permian royalty portfolio, but is expected to add approximately 250,000 total barrel of oil equivalent in 2023, weighted 67% towards oil and NGL and will be immediately accretive to cash flow,” according to an Insider Monkey Transcript of the company’s earnings call.

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 regulatory filings.

Alliance, a Tulsa, Okla.-based diversified energy company, is one of the largest coal producers in the eastern U.S. The company generates operating and royalty income from mineral interests it owns in strategic coal and oil & gas producing regions.

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