EQUITY INVESTMENT

6 Months Ended

Jun. 30, 2017

EQUITY INVESTMENT

EQUITY INVESTMENT

9.           EQUITY INVESTMENT

AllDale Minerals

In November 2014, Cavalier Minerals (see Note 8 – Variable Interest Entities), was created to indirectly purchase, through its equity investments in AllDale Minerals, oil and gas mineral interests in various geographic locations within producing basins in the continental U.S.  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.  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 or AllDale III (collectively, the "AllDale Partnerships") that most significantly impact the economic performance of the AllDale Partnerships.  As such, the ARLP Partnership accounts for its ownership interest in the income or loss of the AllDale Partnerships as equity investments and it is so reflected in our condensed consolidated financial statements.  The ARLP Partnership records equity income or loss based on the AllDale Partnerships' individual distribution structures.  The changes in the ARLP Partnership's aggregate equity investment in the AllDale Partnerships for each of the periods presented were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
	(in thousands)
Beginning balance	$	147,052	$	84,234	$	138,817	$	64,509
Contributions		3,300		13,017		12,587		33,185
Equity in income (loss) of affiliates		2,916		(37)		6,616		(64)
Distributions received		(3,676)		(544)		(8,428)		(960)
Ending balance	$	149,592	$	96,670	$	149,592	$	96,670