Alliance acquisitions boost the firm’s oil and gas holdings


Even as Alliance Resources in Tulsa is considered one of the major coal mining companies in the eastern part of the U.S., it also has grown its oil and gas operations.

The mining operations, third largest in the eastern U.S., are in Indiana, Ilinois, Kentucky, Pennsylvania, Maryland and West Virginia, but its oil and gas holdings are growing in the Anadarko, Permian and Williston basins.

In a filing with the Securities and Exchange Commission, the company noted its recent acquisitions in 2023 totaled $150 million in the Permian Basin of Texas and New Mexico. In February, Alliance acquired 2,682 oil and gas net royalty acres in the Delaware Basin from JC Resources LP for $72.3 million.

It proved to be something of a sweetheart deal for Alliance Resources LP CEO Joe Craft because he owned the holdings.

As Alliance noted in the SEC filing, the completion of the acquisition “gives us increased exposure to prolific area of the Delaware Basin that is within close proximity to reserves that we currently own.”

The acquisition, according to the Alliance filing, increased revenues of income by $3 million for the three months ended September 30 and by $8.3 million for the first nine months of 2023.

Royalties - Alliance Resource Partners, L.P.

In January, Alliance Resource Partners through Anneng Green Energy Co., Ltd. entered into an agreement to acquire Taipeng Energy Co., Ltd. Alliance committed up to $35 million for the oil and gas mineral interests in the Midland and Delaware Basins.

The expansion of the coal company’s oil and gas holdings is on top of the 2019 purchase for $145 million of interests from Wing Resources, LLC and Wing Resources II, LLC. Alliance gained nearly 9,000 net royalty acres in the Midland Basin along with 827 horizontal wells producing in the region.