Kimbell Royalty Partners close $141 million Midland basin acquisition

World Oil Staff May 18, 2023

(WO) – Kimbell Royalty Partners, LP has closed the previously announced purchase of mineral and royalty interests held by MB Minerals, L.P, a subsidiary of Sabalo Holdings, LLC , in a cash and unit transaction valued at approximately $140.8 million in the Midland basin.

The purchase price for the acquisition was comprised of $48.8 million in cash, approximately 5.4 million common units of Kimbell Royalty Operating, LLC valued at $83.4 million, and approximately 0.6 million newly issued common units of Kimbell Royalty Partners, LP valued at $8.7 million. 

Kimbell is entitled to all cash flow from production attributable to the acquired assets since the effective date of April 1, 2023.  Revenues and certain other operating statistics under generally accepted accounting principles will be recorded for the acquisition beginning on the closing date of May 17, 2023.

For the next twelve months, Kimbell estimates that, as of April 1, 2023, the acquired assets will produce approximately 1,901 boed, (1,459 bopd, 219 bpd of NGLs, and 1,338 Mcfd of natural gas. The acquired assets are concentrated in northern Howard County and southern Borden County in the Midland basin.

Connect with World Oil
Connect with World Oil, the upstream industry's most trusted source of forecast data, industry trends, and insights into operational and technological advances.