Alliance Resource Partners LP
Description
Alliance Resource Partners LP announced that its Series A-1 Preferred Interests in Kodiak Gas Services LLC have been redeemed by Kodiak for an immediate cash payment of $135 million.
On July 19, 2017, Alliance Minerals LLC, a wholly owned subsidiary of ARLP, purchased $100 million of Preferred Interests from Kodiak, a privately-held company providing large-scale, high-utilization gas compression assets to customers operating primarily in the Permian Basin. This structured investment provided ARLP with quarterly distributions of cash or additional Preferred Interests. As of December 31, 2018, ARLP’s investment had increased to $122.1 million due to the distribution by Kodiak of additional paid-in-kind Preferred Interests.