#United States #Fort Worth #Common Units #Kimbell Royalty #NYSE KRP

Kimbell Royalty Partners Announces Major Public Offering

Kimbell Royalty Partners, LP (NYSE: KRP) has taken a significant step in its financial strategy by initiating an underwritten public offering of 9,000,000 common units. This move, announced on January 7, 2025, reflects the company's intention to bolster its financial position amid evolving market conditions. The offering is expected to enhance Kimbell’s liquidity and facilitate their ongoing operations.

Purpose of the Offering

The primary goal behind this public offering is the repayment of existing borrowings in its revolving credit facility. By reducing outstanding debts, Kimbell aims to streamline its financial obligations and strengthen its balance sheet. Additionally, the proceeds from the offering will help finance Kimbell's commitment towards the cash portion of an acquisition planned to secure mineral and royalty interests held by Boren Minerals.

Details of the Offering

The company plans to provide the underwriters with an option to purchase up to 1,350,000 additional common units at the public offering price, minus any discounts or commissions. This flexibility allows Kimbell to maximize the offering based on market conditions and investor demand. Citigroup, J.P. Morgan, and RBC Capital Markets are leading this offering as book-running managers.

Financial Context

Kimbell Royalty Partners operates as a prominent oil and gas mineral and royalty company based in Fort Worth, Texas. With ownership of mineral and royalty interests covering approximately 17 million acres across 28 states, including over 129,000 gross wells, Kimbell is well-positioned in the energy sector. Their operations span every major onshore basin in the continental United States, showcasing their expansive reach and significant market presence.

Forward-Looking Statements

In line with industry best practices, the company provided forward-looking statements addressing the associated risks and uncertainties, such as the potential integration challenges of the acquisition assets. Kimbell’s commitment to enhancing shareholder value remains steadfast, although it cautions against relying solely on these forward-looking statements without considering the inherent risks of the energy market.

How to Participate

Those interested in participating in this offering can refer to the preliminary prospectus, accessible through the respective financial institutions involved in the offering or via the SEC's website. Kimbell reminds potential investors that the offering will occur under an effective shelf registration statement on Form S-3 that has been previously filed with the SEC. The release did not constitute an offer to sell or solicit in any jurisdiction where such offerings could be illegal prior to proper registration.

Conclusion

Kimbell Royalty Partners continues to demonstrate its proactive approach towards maintaining and enhancing its financial health. This public offering presents an opportunity for the company to optimize its financial resources and reinforces its strategic plans in the oil and gas sector. With a robust asset base and a targeted approach to managing finances, Kimbell is poised for future growth and opportunities within the energy market.