Kimbell Royalty Partners Closes $271 Million Permian Basin Acquisition
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Kimbell Royalty Partners has closed on the purchase of mineral and royalty interests held by Austin-based Hatch Royalty in a cash and unit transaction valued at approximately $270.7 million.
The purchase price for the acquisition was comprised of $150.4 million in cash (approximately 56 percent percent of the total consideration) and approximately 7.3 million common units of Kimbell Royalty Operating which are valued at $120.3 million (approximately 44 percent of the total consideration). Kimbell is entitled to all cash flow from production attributable to the acquired assets since October 1, 2022. Revenues and certain other operating statistics under generally accepted accounting principles will be recorded for the acquisition beginning on the closing date of December 15, 2022.
Kimbell estimates that, as of October 1, 2022, the acquired assets produced approximately 2,072 Boe/d (1,198 Bbl/d of oil, 372 Bbl/d of NGLs, and 3,012 Mcf/d of natural gas) (6:1)(2). For the full year 2023, Kimbell estimates that the acquired assets will produce approximately 2,522 Boe/d (1,439 Bbl/d of oil, 461 Bbl/d of NGLs, and 3,730 Mcf/d of natural gas) (6:1).
The acquired assets are located in the Permian Basin, with high interest locations concentrated in the Texas Delaware Basin (82 percent), New Mexico Delaware Basin (8 percent), and Midland Basin (10 percent).
About Kimbell Royalty Partners
Kimbell 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 123,000 gross wells with over 47,000 wells in the Permian Basin.
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