Kimbell Royalty Partners, a Fort Worth-based company specializing in oil and gas mineral and royalty interests, has announced plans to acquire new assets in the heart of the Midland Basin.
The $231 million deal, involving a mix of cash and equity, marks a significant expansion of Kimbell's footprint in the Permian Basin.
The acquired acreage is under the historic and prolific Mabee Ranch in Martin and Andrews counties. The resources include about 875 active wells with opportunities for future drilling over its 68,000 gross acres, according to a press release.
"This deal enhances our presence in the Midland Basin with high-quality reservoirs and significant untapped potential,” said Bob Ravnaas, chairman and CEO of Kimbell’s general partner, in a statement. “We’re confident it will provide immediate and long-term value for our investors.”
Kimbell (NYSE: KRP) owns mineral and royalty interests in approximately 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. Kimbell Royalty Partners also announced that it is selling 10 million shares of its stock to the public at $14.90 per share. The sale is expected to raise around $149 million before accounting for fees and expenses. The company is also giving the underwriters the option to buy an additional 1.5 million shares at the same price to meet extra demand. The sale is expected to be finalized on Jan. 9, pending standard approvals and conditions.
The transaction has already been approved by both Kimbell’s board and the seller, with closing expected in the first quarter of 2025. The deal represents a strategic move for Kimbell to strengthen its position in one of the most productive oil and gas regions in the U.S.
The newly acquired assets are expected to produce around 1,842 barrels of oil equivalent per day (Boe/d) throughout 2025. This includes 1,104 barrels of oil, 424 barrels of natural gas liquids (NGLs), and 1,881 thousand cubic feet of natural gas per day.
The Mabee Ranch was owned by farmer-turned-oilman John Mabee, who bought it in 1932. It has been managed by his heirs and a foundation since his death in 1961.
Mabee was born in Cedar County, Missouri, in 1879. At 20, he married Lottie Boren.
Early in their marriage, they moved to Fort Worth. He worked for the Swift & Co. packing plant for 15 cents an hour. They both eventually found jobs waiting tables at a hotel here. The couple moved to Oklahoma in the early 1900s during its drive for statehood. He delivered the mail and started “buying mules, cattle, and hogs.”
Mabee returned to Fort Worth in the teens, if only briefly. Here he became known as the best livestock auctioneer in the country, according to newspaper reports.
It was in Walters, Oklahoma, in 1920 that he discovered the oil business. Three years later, he and his brother-in-law went into the cattle business in West Texas.
Like Amon Carter, Mabee had a friend in Will Rogers, who wrote of him: "I came in from the West Coast to Wichita, Kansas, got a little sleep that night and then on down to Tulsa in Oilman Mabee's plane, a fast Lockheed. He used to trade and sell mules. Now he has more holes in the ground than a gopher, and the funny part of it, the things got oil spouting out of ‘em. They got one field called ‘Mabee Field,' but it’s not just maybe, it’s really there."