
FORT WORTH, Texas, January 17, 2025 — Kimbell Royalty Partners, LP (NYSE: KRP) (“Kimbell” or the “Company”), a major holder of oil and gas mineral and royalty interests across over 17 million gross acres in 28 states, today announced the completion of its previously announced acquisition of mineral and royalty interests (the “Acquired Assets”) from a private seller. This cash transaction is valued at roughly $230 million, subject to post-closing adjustments (the “Acquisition”). The acquisition cost was covered by a combination of a public common unit offering and borrowings from its revolving credit facility. Kimbell is entitled to all production cash flow from the Acquired Assets since October 1, 2024. Accounting for the Acquisition under generally accepted accounting principles will begin on the closing date of January 17, 2025.
Kimbell estimates that, as of October 1, 2024, the Acquired Assets yielded 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. Kimbell projects that for the entire year 2025, 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). These assets are situated beneath the historical Mabee Ranch in the Midland Basin, with oil and gas mineral 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 headquartered in Fort Worth, Texas. Kimbell holds mineral and royalty interests in over 17 million gross acres across 28 states, encompassing every major onshore basin in the continental United States. This includes ownership in over 130,000 gross wells, with more than 51,000 in the Permian Basin. For more information, please visit .
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements, which include statements about the expected benefits of the Acquisition and operational data related to the Acquisition, involve risks and uncertainties. These include the possibility that the anticipated benefits of the Acquisition may not be realized; risks related to Kimbell’s integration of the acquired assets; and risks related to Kimbell’s business, growth prospects, acquisitions, and the securities markets in general. Unless legally required, Kimbell does not intend to, and undertakes no obligation to, update these forward-looking statements to reflect events or circumstances after this release. When considering these forward-looking statements, you should review 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, including risks associated with low or falling oil and natural gas prices. Low prices could lead to lower proved reserve valuations or cause operators to delay or halt drilling and completion activities or reduce production levels, negatively impacting cash flow; risks related to impairment of oil and natural gas properties; risks related to securing capital for drilling operations, which can be negatively affected by poor drilling results, production declines, and falling oil and natural gas prices; risks related to Kimbell’s ability to meet financial covenants under its credit agreement or to obtain amendments or waivers for compliance; risks related 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. These risks could temporarily or permanently reduce production, cause initial production or test results to not reflect future well performance, or delay sales or completion of drilling operations; risks related to delays in obtaining drilling permits; risks related to unforeseen negative developments in the status of properties; risks related to borrowing base redeterminations by Kimbell’s lenders; risks related to the absence or delay of government approvals or third-party consents; risks related to acquisitions, dispositions, and dropdowns of assets; risks related to Kimbell’s ability to realize the expected benefits from and integrate acquired assets, including those acquired in this 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 . You should not place undue reliance on these forward-looking statements, which are only current as of the date of this release.
Contact:
Rick Black
Dennard Lascar Investor Relations
(713) 529-6600
1 Presented on a 6:1 basis. Based on estimated Q4 2024 run-rate production for the Acquired Assets as of October 1, 2024, which is the Acquisition’s effective date. |
SOURCE Kimbell Royalty Partners, LP