Kimbell Royalty Partners announces $231M Midland Basin acquisition

Kimbell Royalty Partners (KRP) announced that it has agreed to acquire mineral and royalty interests held by a private seller in a cash and unit transaction valued at approximately $231M, subject to purchase price adjustments and other customary closing adjustments. Under the purchase agreement, Kimbell has the option to pay the consideration entirely in cash or through a combination of $207M in cash and approximately 1.4M common units of Kimbell Royalty Partners, LP, which are valued at $24M. The final mix of funding will be determined at closing. Kimbell estimates that, as of October 1, 2024, the acquired assets produce approximately 1,842 Boe/d (1,125 Bbl/d of oil, 410 Bbl/d of NGLs, and 1,842 Mcf/d of natural gas) (6:1).5 For the full year 2025, Kimbell estimates that the acquired assets will produce approximately 1,842 Boe/d (1,104 Bbl/d of oil, 424 Bbl/d of NGLs, and 1,881 Mcf/d of natural gas) (6:1). The acquired acreage is located under the historic Mabee Ranch in the Midland Basin, with oil and gas minerals and royalty interests concentrated in Martin County (63%) and Andrews County (37%). The Board of Directors of Kimbell’s general partner and the governing body of Seller have each approved the Acquisition, which is expected to close in the first quarter of 2025, subject to customary closing conditions. The effective date of the acquisition is expected to be October 1, 2024.