Adobe Stock
Fort Worth-based Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and gas mineral and royalty interests in 28 states, last week announced that it had agreed to acquire mineral and royalty interests from MB Minerals, LP, in a cash and unit transaction valued at approximately $143.1 million.
The purchase price for the acquisition is comprised of $48.8 million in cash (approximately 34% of the total consideration), approximately 5.4 million newly issued common units of Kimbell Royalty Operating, LLC, valued at $85.4 million, and newly issued common units of Kimbell Royalty Partners, LP, valued at $8.9 million.
MB Minerals is a subsidiary of Sabalo Holdings, LLC, a portfolio company of EnCap Investments.
The acquired assets are concentrated in northern Howard County and southern Borden County. The acquisition is expected to close in the second quarter of 2023.
When the acquisition is consummated, Kimbell is expected to have more than 16 million gross acres, over 125,000 gross wells and a total of 97 active rigs on its properties, which represents approximately 13% of the total active land rigs drilling in the continental United States.
In addition, more than 97% of all rigs in the continental United States are located in counties where Kimbell is expected to hold mineral interest positions after the consummation of the acquisition.
White & Case LLP and Kelly Hart & Hallman LLP acted as legal counsel to Kimbell. TenOaks Energy Advisors served as exclusive financial advisor and Bracewell LLP served as legal advisor to MB Minerals, L.P.