2023-04-12 08:18:26 ET
Kimbell Royalty Partners ( NYSE: KRP ) said Wednesday it agreed to acquire mineral and royalty interests from Sabalo Holdings, a portfolio company of EnCap Investments, in a cash and unit deal valued at $143.1M.
The deal is comprised of $48.8M in cash, ~5.4M newly issued common units of Kimbell Royalty Operating valued at $85.4M, and ~600K newly issued common units of Kimbell Royalty Partners ( KRP ) valued at $8.9M.
Kimbell ( KRP ) estimates the acquired assets, concentrated in Texas' Howard and Borden counties, will produce 1,901 boe/day during the next 12 months.
If the deal closes, Kimbell ( KRP ) expects to have more than 16M gross acres, more than 125K gross wells and a total of 97 active rigs on its properties, which represents 13% of the total active land rigs drilling in the continental U.S.
Kimbell Royalty Partners ( KRP ) is projected to generate $1.68/unit in distributable cash flow in 2023 at the current strip, Elephant Analytics writes in a report published recently on Seeking Alpha .
For further details see:
Kimbell Royalty Partners buys Midland Basin interests in $143M deal