FORT
WORTH, Texas, Jan. 17,
2025 /PRNewswire/ -- Kimbell Royalty Partners, LP
(NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil
and gas mineral and royalty interests in over 17 million gross
acres in 28 states, today announced that it has closed the
previously announced purchase of mineral and royalty interests (the
"Acquired Assets") held by a private seller in a cash transaction
valued at approximately $230 million,
subject to post-closing adjustments (the "Acquisition"). 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%).
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty
company based in Fort Worth,
Texas. Kimbell owns mineral and royalty interests in over 17
million gross acres in 28 states and in every major onshore basin
in the continental United States,
including ownership in more than 130,000 gross wells with over
51,000 wells in the Permian Basin. To learn more, visit
http://www.kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements. These
forward-looking statements, which include statements regarding the
anticipated benefits of the Acquisition and operational data with
respect to the Acquisition, involve risks and uncertainties,
including risks that the anticipated benefits of the Acquisition
are not realized; risks relating to Kimbell's integration of the
Acquisition assets; and risks relating to Kimbell's business,
prospects for growth and acquisitions and the securities markets
generally. Except as required by law, Kimbell undertakes no
obligation and does not intend to update these forward-looking
statements to reflect events or circumstances occurring after this
news release. When considering these forward-looking statements,
you should keep in mind the risk factors and other cautionary
statements in Kimbell's filings with the Securities and Exchange
Commission ("SEC"). These include risks inherent in oil and
natural gas drilling and production activities, including risks
with respect to low or declining prices for oil and natural gas
that could result in downward revisions to the value of proved
reserves or otherwise cause operators to delay or suspend planned
drilling and completion operations or reduce production levels,
which would adversely impact cash flow; risks relating to the
impairment of oil and natural gas properties; risks relating to the
availability of capital to fund drilling operations that can be
adversely affected by adverse drilling results, production declines
and declines in oil and natural gas prices; risks relating to
Kimbell's ability to meet financial covenants under its credit
agreement or its ability to obtain amendments or waivers to effect
such compliance; risks relating to Kimbell's hedging activities;
risks of fire, explosion, blowouts, pipe failure, casing collapse,
unusual or unexpected formation pressures, environmental hazards,
and other operating and production risks, which may temporarily or
permanently reduce production or cause initial production or test
results to not be indicative of future well performance or delay
the timing of sales or completion of drilling operations; risks
relating to delays in receipt of drilling permits; risks relating
to unexpected adverse developments in the status of properties;
risks relating to borrowing base redeterminations by Kimbell's
lenders; risks relating to the absence or delay in receipt of
government approvals or third-party consents; risks relating to
acquisitions, dispositions and drop downs of assets; risks relating
to Kimbell's ability to realize the anticipated benefits from and
to integrate acquired assets, including the assets acquired in the
Acquisition; and other risks described in Kimbell's Annual Report
on Form 10-K, as amended, and other filings with the SEC, available
at the SEC's website at www.sec.gov. You are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this news release.
Contact:
Rick Black
Dennard Lascar Investor
Relations
krp@dennardlascar.com
(713) 529-6600
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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.
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content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-closes-230-million-acquisition-of-midland-basin-mineral-and-royalty-interests-in-cash-transaction-302354599.html
SOURCE Kimbell Royalty Partners, LP
