June 24, 2019 - Alliance Resource Partners, L.P. (NASDAQ: ARLP) today announced that it has entered into a definitive agreement to acquire oil and gas mineral interests from Wing Resources LLC and Wing Resources II LLC (collectively, "Wing") for a cash purchase price of $ 145.0 million. Upon closing, the transaction will increase ARLP’s presence in the Permian Basin through the addition of approximately 9,000 net royalty acres in the Midland Basin, with exposure to more than 400,000 gross acres. There are 783 gross horizontal wells currently producing on the acreage to be acquired delivering an estimated 460 BOE per day (70% oil, 14% NGLs) net to the Wing interests. With an additional 441 drilled but uncompleted wells and 279 permits, these assets are under active development by well-capitalized operators bringing visible and near-term growth to current production.

"Today’s announcement reflects ARLP’s commitment to build its oil and gas minerals segment as a growth platform for the future," said Joseph W. Craft III, Chairman, President and Chief Executive Officer. "The Wing acquisition enhances our already significant ownership position in the prolific, liquids-rich Permian Basin and, upon completion, these assets are expected to complement our existing coal and oil and gas businesses, contributing to long-term cash flow growth for ARLP and value creation for our unitholders."

ARLP will fund the purchase with cash on hand and borrowings under its credit facility. The agreement provides for an effective date of May 1, 2019 and the transaction is expected to close in early August 2019.

Following the acquisition of Wing’s assets, ARLP will directly own approximately 51,000 net royalty acres concentrated in the Permian Basin (47.0%), SCOOP/STACK (40.0%), Bakken (8.0%) and Appalachian Basin (5.0%) . ARLP also indirectly owns approximately 3,950 net royalty acres through its limited partner interest in AllDale Minerals III, L.P.