EQUITY INVESTMENT

9 Months Ended

Sep. 30, 2016

EQUITY INVESTMENT

EQUITY INVESTMENT

9.           EQUITY INVESTMENT

AllDale Minerals

On November 10, 2014, Cavalier Minerals (see Note 8 – Variable Interest Entities) made an initial contribution of $7.4 million in return for a limited partner interest in AllDale Minerals, which was created to purchase oil and gas mineral interests in various geographic locations within producing basins in the continental U.S.  The ARLP Partnership continually reviews all rights provided to Cavalier Minerals and the ARLP Partnership by various agreements and continues to conclude all such rights do not provide Cavalier Minerals or the ARLP Partnership the ability to unilaterally direct any of the activities of AllDale Minerals that most significantly impact its economic performance.  As such, the ARLP Partnership accounts for Cavalier Minerals' ownership interest in the income or loss of AllDale Minerals as an equity investment and it is so reflected in our condensed consolidated financial statements.  The ARLP Partnership records equity income or loss based on AllDale Minerals' distribution structure.  The changes in the ARLP Partnership's equity investment in AllDale Minerals for each of the periods presented were as follows:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2016		2015		2016		2015
	(in thousands)
Beginning balance		$	96,670	$	31,314	$	64,509	$	11,257
Contributions			32,181		16,866		65,367		37,374
Equity in income (loss) of affiliates, net			1,105		(146)		1,041		(597)
Distributions received			(1,905)		—		(2,866)		—
Ending balance		$	128,051	$	48,034	$	128,051	$	48,034