FORT WORTH, Texas, Jan. 17, 2025 – Kimbell Royalty Partners, LP (NYSE: KRP), a leading entity in the ownership of oil and gas mineral and royalty interests, has announced the successful completion of a significant acquisition. The company, known for its extensive holdings across over 17 million gross acres in 28 states, finalized the purchase of mineral and royalty interests from a private seller for approximately $230 million in cash, subject to customary post-closing adjustments. This strategic move, referred to as the “Acquisition,” further solidifies Kimbell Royalty Partners’ position in the energy sector.
The acquisition was financed through a combination of a well-received public offering of common units and strategic utilization of borrowings under Kimbell’s revolving credit facility. Significantly, Kimbell Royalty Partners is set to benefit from all cash flow generated from the production of the Acquired Assets dating back to October 1, 2024. While revenues and other pertinent operating statistics will be officially recorded under generally accepted accounting principles starting from the acquisition’s closing date on January 17, 2025, the retroactive cash flow entitlement underscores the immediate financial benefits of this transaction for Kimbell Royalty Partners.
Production estimates associated with the Acquired Assets are robust, further enhancing the value proposition for Kimbell Royalty Partners. As of October 1, 2024, these assets were estimated to be producing approximately 1,842 Boe/d, broken down into 1,125 Bbl/d of oil, 410 Bbl/d of NGLs, and 1,842 Mcf/d of natural gas (at a 6:1 conversion ratio). Looking ahead to the full year of 2025, Kimbell Royalty Partners anticipates consistent production levels from these assets, projecting approximately 1,842 Boe/d, including 1,104 Bbl/d of oil, 424 Bbl/d of NGLs, and 1,881 Mcf/d of natural gas (6:1).
Geographically, the Acquired Assets are strategically located within the prolific Midland Basin, specifically beneath the historically significant Mabee Ranch. The concentration of oil and gas mineral and royalty interests is heavily weighted in Martin County (63%) and Andrews County (37%), positioning Kimbell Royalty Partners at the heart of one of the most productive energy regions in the United States. This focused geographic footprint is expected to streamline operations and maximize returns for Kimbell Royalty Partners.
About Kimbell Royalty Partners
Kimbell Royalty Partners (NYSE: KRP) stands as a prominent oil and gas mineral and royalty company, headquartered in Fort Worth, Texas. The company boasts an impressive portfolio of mineral and royalty interests spanning over 17 million gross acres across 28 states. Crucially, Kimbell Royalty Partners maintains a presence in every major onshore basin within the continental United States, including a substantial footprint in the Permian Basin with ownership in over 51,000 wells out of more than 130,000 gross wells company-wide. For investors and stakeholders seeking detailed information, Kimbell Royalty Partners encourages visits to its website at http://www.kimbellrp.com.
Forward-Looking Statements and Considerations
It is important to note that this announcement contains forward-looking statements regarding the Acquisition’s anticipated benefits and operational data. These statements are inherently subject to risks and uncertainties. Factors that could influence actual outcomes include, but are not limited to, the realization of anticipated benefits from the Acquisition, successful integration of acquired assets, and broader market risks affecting Kimbell Royalty Partners’ business and the energy sector. Kimbell Royalty Partners undertakes no obligation to revise these forward-looking statements in light of future events or circumstances, unless required by law. Investors are urged to consult Kimbell’s filings with the Securities and Exchange Commission (SEC), available at www.sec.gov, for a comprehensive understanding of potential risk factors. These risks include those associated with oil and natural gas operations, price volatility, drilling and production risks, financial covenants, hedging activities, environmental hazards, acquisition integration, and other factors detailed in Kimbell’s SEC filings, including their Annual Report on Form 10-K. Readers are cautioned against placing undue reliance on these forward-looking statements, which are relevant only as of the current date.
Investor Relations Contact:
Rick Black
Dennard Lascar Investor Relations
[email protected]
(713) 529-6600
