Kimbell Royalty Partners purchase of Permian Basin and Midcontinent assets for $455 million cash is the largest transaction in the company’s history. (Source: Shutterstock)
Kimbell Royalty Partners LP closed a $455 million cash deal adding royalty interests in the Permian Basin and Midcontinent assets from a private, undisclosed seller.
The acreage is concentrated in the Delaware Basin (49%), Midland Basin (10%) and the Midcontinent (41%).
Kimbell, based in Fort Worth, Texas, estimated that as of June 1, 2023, the acquired assets produced approximately 4,840 boe/d (1,619 bbl/d of oil, 1,227 bbl/d of NGLs and 11,964 Mcf/d of natural gas).
For the full year 2024, Kimbell estimates the acquired assets will produce approximately 5,049 boe/d (1,682 bbl/d of oil, 1,312 bbl/d of NGLs and 12,327 Mcf/d of natural gas).
The acquisition, which was announced in early August, was funded through a $325 million private placement of 6% Series A Cumulative Convertible Preferred Units to funds managed by affiliates of Apollo and borrowings under the company's $400 million revolving credit facility.
The seller’s Permian acreage has 11 rigs actively drilling as of June 30, offering exposure to operators including EOG Resources, Occidental Petroleum and ConocoPhillips in the Delaware Basin and Pioneer Natural Resources, Endeavor Energy Resources and SM Energy in the Midland Basin.
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