ALLIANCE RESOURCE PARTNERS LP

JC Resources

On February 22, 2023, we completed the JC Resources Acquisition, which gave us increased exposure to a prolific area of the Delaware Basin that was within close proximity to reserves that we already owned. This acquisition was approved by the conflicts committee of MGP’s board of directors, which is comprised entirely of independent directors. Because JC Resources was under common control with us, we recorded the acquisition at JC Resources’ carrying value for each period presented. The carrying value of the mineral interests as well as related receivables and payables at February 22, 2023 was $65.0 million inclusive of $25.4 million and $37.8 million of mineral interests in proved and unproved properties, respectively.

Acquisition Agreement

During 2023 and 2024, we were party to a collaborative agreement with a third party for the acquisition of oil & gas mineral interests in the Midland and Delaware Basins. Under the agreement, the third party assisted us in the identification, evaluation, and acquisition of target oil & gas mineral interests. In exchange for these services, the third party received a participation share, partially funded by the third party, and was paid a periodic management fee. Pursuant to this agreement, we purchased $5.8 million and $10.7 million of oil & gas mineral interests in proved and unproved properties, respectively, during the year ended December 31, 2024 and $6.5 million and $6.7 million in proved and unproved properties, respectively, during the year ended December 31, 2023. Management fees paid under this agreement were immaterial.

Skyland Acquisition

On December 7, 2023 (the “Skyland Acquisition Date”), we acquired 2,372 oil & gas net royalty acres in the Anadarko, Williston and Delaware Basins from Skyland and Haymaker for a cash purchase price of $14.5 million which was funded with cash on hand. This acquisition further enhanced our ownership position in these basins. Because the mineral interests acquired in the Skyland Acquisition include royalty interests in both developed properties and undeveloped properties with different risk profiles, we have determined that the acquisition should be accounted for as a business combination and the underlying assets should be recorded at fair value as of the Skyland Acquisition Date on our consolidated balance sheet.

The following table summarizes the fair value allocation of assets acquired as of the Skyland Acquisition Date:

The fair value of the mineral interests was determined using an income approach consisting of a discounted cash flow model. The assumptions used in the discounted cash flow model included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates. Certain assumptions used are not observable in active markets; therefore, the fair value measurements represent Level 3 fair value measurements.

The amounts of revenue and earnings from the mineral interests acquired in the Skyland Acquisition included in our consolidated statements of income from the Skyland Acquisition Date through December 31, 2023 are immaterial.

The following represents our supplemental pro forma consolidated revenues and net income for the year ended December 31, 2023 as if the mineral interests acquired in the Skyland Acquisition had been included in our consolidated results since January 1, 2023. These amounts have been calculated after applying our accounting policies.

Elk Range Acquisition

On October 31, 2025 (the “Elk Range Acquisition Date”), we acquired 190 oil & gas net royalty acres in the Midland and Delaware Basins from 89 Energy for a cash purchase price of $10.0 million which was funded with cash on hand. This acquisition further enhanced our ownership position in Permian Basin. Because the mineral interests acquired in the Elk Range Acquisition include royalty interests in both developed properties and undeveloped properties with different risk profiles, we have determined that the acquisition should be accounted for as a business combination and the underlying assets should be recorded at fair value as of the Elk Range Acquisition Date on our consolidated balance sheet.

The following table summarizes the fair value allocation of assets acquired as of the Elk Range Acquisition Date:

The fair value of the mineral interests was determined using an income approach consisting of a discounted cash flow model. The assumptions used in the discounted cash flow model included estimated production, projected cash flows, forward oil & gas prices and risk adjusted discount rates. Certain assumptions used are not observable in active markets; therefore, the fair value measurements represent Level 3 fair value measurements.

The amounts of revenue and earnings from the mineral interests acquired in the Elk Range Acquisition included in our consolidated statements of income from the Elk Range Acquisition Date through December 31, 2025 are immaterial.

The following represents our supplemental pro forma consolidated revenues and net income for the years ended December 31, 2025 and 2024 as if the mineral interests acquired in the Elk Range Acquisition had been included in our consolidated results since January 1, 2024. These amounts have been calculated after applying our accounting policies.