12. INVESTMENTS

AllDale Minerals

In November 2014, Cavalier Minerals (see Note 10 – 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, which is included in our Other and Corporate category (see Note 21 – Segment Information), committed to directly (rather than through Cavalier Minerals) invest $30.0 million in AllDale III which was created for similar investment purposes. The ARLP Partnership accounts for their ownership interest in the income or loss of the AllDale Partnerships as equity method investments. The ARLP Partnership record equity income or loss based on the AllDale Partnerships' individual distribution structures. The changes in the ARLP Partnership's aggregate equity method investment in the AllDale Partnerships for each of the periods presented were as follows:


	Year Ended December 31,
	2017		2016		2015
	(in thousands)
Beginning balance	$	138,817	$	64,509	$	11,257
Contributions		20,688		76,797		54,290
Equity investment income (loss)		13,860		3,543		(594)
Distributions received		(25,401)		(6,032)		(444)
Ending balance	$	147,964	$	138,817	$	64,509

Kodiak

On July 19, 2017, Alliance Minerals purchased $100 million of Series A-1 Preferred Interests from Kodiak, a privately-held company providing large-scale, high-utilization gas compression assets to customers operating primarily in the Permian Basin. This structured investment provides the ARLP Partnership with a quarterly cash or payment-in-kind return. The ARLP Partnership's ownership interests in Kodiak are senior to all other Kodiak equity interests and subordinate only to Kodiak's senior secured debt facility. The ARLP Partnership account for their ownership interests in Kodiak as a cost method investment. It is not practicable to estimate the fair value of the ALRP Partnership's investment in Kodiak because of the lack of a quoted market price for our ownership interests. The changes in the ARLP Partnership's investment in Kodiak for the year ended December 31, 2017 were as follows:


	Year Ended December 31,
	2017
	(in thousands)
Beginning balance	$	—
Contributions		100,000
Payment-in-kind distributions received		6,398
Ending balance	$	106,398

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 investment income or loss from White Oak is reflected in the Illinois Basin reportable segment 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 are summarized as follows:


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

Total revenues	$	108,256
Gross loss		(2,919)
Loss from operations		(38,148)
Net loss		(69,075)

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