Kimbell Royalty Partners completes $230 million Midland basin acquisition
Kimbell Royalty Partners, LP has closed the previously announced purchase of mineral and royalty interests held by a private seller in a cash transaction valued at approximately $230 million, subject to post-closing adjustments. Kimbell owns oil and gas mineral and royalty interests in over 17 million gross acres in 28 states. The purchase price of the acquisition was funded through a combination of an underwritten public offering of common units and borrowings under its revolving credit facility. Kimbell is entitled to all cash flow from production attributable to the Acquired Assets since October 1, 2024. Revenues and certain other operating statistics under generally accepted accounting principles will be recorded for the Acquisition beginning on the closing date of January 17, 2025.
Kimbell estimates that, as of October 1, 2024, the Acquired Assets produced 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)1. 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 Assets are 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%).
1. Shown on 6:1 basis. Based on estimated Q4 2024 run-rate production for the Acquired Assets as of October 1, 2024, which is the effective date of the Acquisition.
