Kimbell Royalty Partners Boosts Midland Basin Position with $143 Million Acquisition
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Kimbell Royalty Partners has agreed to acquire mineral and royalty interests from MB Minerals, a subsidiary of Sabalo Holdings (a portfolio company of EnCap Investments), in a cash and unit transaction valued at approximately $143.1 million, subject to purchase price adjustments and other customary closing adjustments.
ASSET HIGHLIGHTS
• Approximately 806 Net Royalty Acres (6,445 NRA normalized to 1/8th) on approximately 60,000 gross unit acres located in Northern Midland Basin
• High-interest contiguous footprint with 1.55 percent average unit
net revenue interest
• High confidence in established operator spacing and well performance
in de-risked zones in the Spraberry and Wolfcamp
• Management estimates 5.3 MMBoe in total proved reserves, reflecting
a purchase price of approximately $26.97 per total proved Boe
• 97 percent of estimated first year cash flow from PDP and PDNP wells
• 3 active rigs on the acreage as of March 31, 2023
• Mineral and overriding royalty ownership in over 100 horizontal DSUs, 100 percent held-by-production
• More than 300 total producing wells
Kimbell Royalty Partners is a leading oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in more than 16 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 124,000 gross wells with over 48,000 wells in the Permian Basin.
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Assuming the Acquisition is consummated as described in this news release, Kimbell is expected to have over 16 million gross acres, over 125,000 gross wells and a total of 97 active rigs on its properties, which represents approximately 13%6 of the total active land rigs drilling in the continental United States. In addition, over 97% of all rigs in the continental United States are located in counties where Kimbell is expected to hold mineral interest positions following the consummation of the Acquisition.
