FORT
WORTH, Texas, Sept. 13,
2023 /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 $455 million
(the "Acquisition"). The purchase price of the Acquisition
was funded through a $325 million
private placement of 6.00% Series A Cumulative Convertible
Preferred Units ("Preferred Units") to funds managed by affiliates
of Apollo (NYSE: APO) and
borrowings under the Company's $400
million revolving credit facility. Kimbell is entitled
to all cash flow from production attributable to the Acquired
Assets since June 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 September
13, 2023.
Kimbell estimates 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) (6:1)1. For the full year 2024,
Kimbell estimates that 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) (6:1). The Acquired Assets
are concentrated in the Permian Basin (64% of reserve value) and
Mid-Continent (36% of reserve value)2.
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 129,000 gross wells with over
50,000 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 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
1 Shown on 6:1 basis. Based on estimated Q3
2023 run-rate production for the Acquired Assets as of June 1, 2023, which is the effective date of the
Acquisition.
2 Reflects total proved reserves as of June 1, 2023.
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SOURCE Kimbell Royalty Partners, LP