#United States #Acquisition #Fort Worth #Kimbell Royalty Partners #mineral interests

Kimbell Royalty Partners Finalizes $221.2 Million Acquisition

Kimbell Royalty Partners, LP, publicly listed as NYSE: KRP, has announced the successful completion of its acquisition of mineral and royalty interests, valued at approximately $221.2 million. This acquisition was made from a group of affiliated sellers and marks a significant expansion of Kimbell’s operations in the oil and gas sector. The deal consisted of both cash and equity components, with $74.9 million paid in cash and the remainder comprising 9.5 million common units of Kimbell Royalty Operating, LLC.

The financial strategy encompassed in this transaction positions Kimbell to significantly enhance its production capabilities. With this Drop Down acquisition, Kimbell is projected to benefit from cash flow generated from these assets, effective from June 1, 2026. The operational data is expected to start being recorded in revenue statements from the closing date, August 21, 2026.

This strategic move allows Kimbell to secure interests across more than 3 million gross acres, with assets that currently yield an estimated production of 2,347 Barrels of Oil Equivalent per day (Boe/d). This includes oil, natural gas liquids (NGLs), and natural gas, showcasing the diversified nature of the acquired assets.

The acquired portfolio includes multiple high-potential formations such as the Eagle Ford, Permian, Mid-Con, and Appalachia. With over 29,000 gross producing wells integrated into Kimbell's framework, the transaction is a hallmark of the company’s growth strategy and its commitment to expanding its mineral interests across vital energy-producing regions in the United States.

About Kimbell Royalty Partners

Kimbell Royalty Partners operates out of Fort Worth, Texas, and has built a significant presence in the oil and gas industry. It manages mineral and royalty interests across more than 17 million gross acres in 28 states, encompassing ownership stakes in over 137,000 wells. This extensive portfolio underscores Kimbell’s strategic positioning and its capabilities in tapping into America’s oil and gas potential.

The company remains optimistic about integrating the newly acquired assets and enhancing its operational efficiencies, which are crucial for reinforcing Kimbell's competitive stance in the market. In light of broader market trends and potential fluctuations in oil and gas prices, Kimbell is focused on navigating the complexities of the energy sector while optimizing the return on its investments.

Looking Ahead

Looking ahead, Kimbell Royalty Partners emphasizes the importance of continuity and resilience in its operations. The expected increases in production and the diversified portfolio from the Drop Down acquisition align with Kimbell’s vision of sustained growth. As the company moves forward, it will remain vigilant about the inherent risks associated with drilling and production in the oil and gas industry, especially considering current market dynamics.

This strategic acquisition is not just about immediate gains; it also reflects Kimbell’s long-term commitment to expanding its footprint in the lucrative U.S. oil and gas markets. By leveraging the strengths of its new assets, Kimbell is poised to deliver value to its shareholders and maintain its status as a key player in the energy sector.