12. EQUITY INVESTMENTS

AllDale Minerals

On November 10, 2014, Cavalier Minerals (see Note 10 – Variable Interest Entities) 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 continue 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 the 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:


	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Beginning balance	$	64,509	$	11,257	$	—
Contributions		76,797		54,290		11,626
Equity in income (loss) of affiliates		3,543		(594)		(369)
Distributions received		(6,032)		(444)		—
Ending balance	$	138,817	$	64,509	$	11,257

In accordance with AllDale Minerals' partnership agreements, limited partners, such as Cavalier Minerals, will initially receive all distributions of proceeds from certain producing basins based upon the greater of the limited partner's cumulative contributions plus 25.0% or an amount sufficient to cause the limited partner to receive an effective internal rate of return of 10.0%. Afterwards, 20.0% of all distributions will be allocated to AllDale Minerals Management, as an incentive distribution to the general partner, with the remaining 80.0% allocated to limited partners based upon ownership percentages. In addition, upon an event of liquidation, any proceeds will be distributed using the same methodology.

In February 2017, Alliance Minerals committed to directly (rather than through Cavalier Minerals) invest $30.0 million in AllDale Minerals III, LP ("AllDale III") which was created for similar investment purposes as AllDale Minerals.

White Oak

On September 22, 2011, the ARLP Partnership entered into a series of transactions ("Initial Transactions") with White Oak to support development of a longwall mining operation, which the ARLP Partnership assumed control of in July 2015 through the ARLP Partnership's acquisition of the remaining equity interests in White Oak (see Note 3 - Acquisitions). The Initial Transactions featured several components, including an equity investment in White Oak, the acquisition and lease-back of certain coal reserves and surface rights, a loan and a coal handling and preparation agreement, pursuant to which the ARLP Partnership constructed and operated Hamilton's preparation plant and other surface facilities. Prior to the Hamilton Acquisition, the ARLP Partnership recorded its previous equity in income or losses of affiliates from White Oak under the hypothetical liquidation at book value method of accounting due to the preferences to which the ARLP Partnership were entitled with respect to distributions. See Note 10 – Variable Interest Entities regarding our determination to account for White Oak as an equity investment prior to the Hamilton Acquisition.

White Oak's results prior to the Hamilton Acquisition for the period from January 1, 2015 to July 31, 2015 and for the year ended December 31, 2014 are summarized as follows:


	January 1, 2015		December 31,
	to July 31, 2015		2014
	(in thousands)

Total revenues	$	108,256		$	42,748
Gross loss		(2,919)			(1,134)
Loss from operations		(38,148)			(21,018)
Net loss		(69,075)			(46,324)

See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for equity investments.