AcquisitionsMay 19, 2026, 08:42 AM
Kimbell Royalty Partners Acquires Permian Basin Assets for $147M
AI Summary
Kimbell Royalty Partners, LP announced an agreement to acquire mineral and royalty interests in the Permian Basin from Mesa Royalties for approximately $147.0 million. The consideration comprises $44.0 million in cash and 6.9 million newly issued OpCo units. The acquisition is expected to be immediately accretive to distributable cash flow per unit, with an estimated $23.3 million in next twelve months (NTM) cash flow and 1,390 Boe/d of NTM production. The transaction is anticipated to close in the second quarter of 2026, with an effective date of June 1, 2026.
Key Highlights
- Kimbell Royalty Partners to acquire Permian Basin mineral and royalty interests for $147.0 million.
- Consideration includes $44.0 million in cash (30%) and 6.9 million newly issued OpCo units (70%).
- Acquired assets expected to generate $23.3 million in NTM cash flow at strip pricing.
- Estimated NTM production of 1,390 Boe/d (754 Bbl/d oil, 315 Bbl/d NGLs, 1,928 Mcf/d natural gas).
- Acquisition includes 711 Net Royalty Acres (5,691 NRA normalized to 1/8th) across 15 Permian counties.
- Management estimates 7.67 MMBoe in total proved reserves, at $19.17 per total proved Boe.
- Expected to strengthen Kimbell's oil weighting from 32% to 33% of daily production mix.
- Transaction is expected to close in Q2 2026, with an effective date of June 1, 2026.
Price Impact
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