Kimbell Royalty Partners, LP announced an agreement to acquire mineral and royalty interests in the Midland Basin for approximately $231 million. The acquired assets are located under the historic Mabee Ranch, primarily in Martin County (63%) and Andrews County (37%), and are expected to close in the first quarter of 2025 with an effective date of October 1, 2024.
The company estimates the acquired assets produced approximately 1,842 Boe/d as of October 1, 2024, and are projected to maintain this production for the full year 2025. This acquisition is expected to be immediately accretive to distributable cash flow per unit, enhancing Kimbell's Permian footprint with strong reservoir quality and long-term production growth.
To help fund the acquisition, Kimbell priced an upsized public offering of 10,000,000 common units at $14.90 per unit, generating approximately $149.0 million in gross proceeds. The net proceeds from this offering are intended for the repayment of outstanding borrowings under its revolving credit facility, which will then be used to fund the cash portion of the acquisition.
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