2023-08-02 19:14:34 ET
Kimbell Royalty Partners ( NYSE: KRP ) -7% post-market Wednesday after saying it has commenced an underwritten public offering of 6M common units, with an underwriters option to purchase up to 900K additional units.
Kimbell ( KRP ) said it intends to use the net proceeds to repay outstanding borrowings under its revolving credit facility.
The partnership also plans to use borrowings from the revolving credit facility to fund part of its ~$455M acquisition of mineral and royalty interests from an unnamed private seller.
Kimbell ( KRP ) said the acreage is in core positions of the Permian and Mid-Continent basins, with more than 4K gross producing wells on more than 1M gross acres; for FY 2024, the total acquired assets are expected to produce more than 5K boe/day.
"The acquisition represents the largest transaction in company history, and is expected to significantly enhance Kimbell's positions in the best-performing, highest-growth oil and gas basins in the Lower 48," Chairman and CEO Bob Ravnaas said.
More on Kimbell Royalty Partners:
- Financial and valuation comparison to sector peers
- Analysis: Kimbell Royalty Partners: Recent Acquisition Adds Nearly 20% To Distributable Cash Flow Per Unit
- Stock price return: Down 2% YTD, down 12% in the past 12 months
For further details see:
Kimbell Royalty launches 6M-unit offering; buys Permian, Mid-Con assets for $455M