FORT WORTH, Texas, Nov. 12,
2019 /PRNewswire/ -- Kimbell Royalty Partners, LP
(NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading
owner of oil and natural gas mineral and royalty interests in more
than 92,000 gross producing wells across 28 states, today
announced that it has agreed to acquire certain mineral and royalty
assets from Buckhorn Resources GP, LLC and certain of its
affiliates (collectively, "Buckhorn Resources") for approximately
$31.8 million (the "Acquisition") in
a 100% equity transaction.
Transaction Highlights1
- Includes oil and natural gas mineral and royalty
interests controlled by Buckhorn Resources
- Expected to add approximately 270 Boe/d of production
(6:1)
- Includes oil-focused production mix on 6:1 basis of
approximately 83% oil, 11% natural gas and 6% natural gas
liquids
- Expected to add approximately 86,000 gross acres and 400
net royalty acres with approximately 90% of the net royalty acres
located in La Salle and
McMullen Counties
- Two rigs actively drilling on the acreage
- Top operator by total proved reserve value (PV-10%) is
EOG Resources, Inc.
- Includes 504 producing wells, 38 drilled but uncompleted
wells, and 519 additional upside drilling locations
- Purchase price is composed of 2,207,880 newly issued
units in Kimbell Royalty Operating, LLC, subject to certain closing
adjustments
- Effective date of July 1,
2019, with Kimbell entitled to revenues from production on
and after such date
- Expected to close in late December 2019 and be immediately accretive to
distributable cash flow per unit
Baker Botts L.L.P. and Kelly Hart
& Hallman LLP acted as legal advisors to Kimbell Royalty
Partners in connection with the Acquisition. The sellers in
the Acquisition will be subject to a 120-day lockup after the
closing, which is expected to occur in late December 2019.
The closing of the Acquisition remains subject to the satisfaction
of certain closing conditions, and there can be no assurance that
it will be completed as planned or at all.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty
company based in Fort Worth,
Texas. Kimbell owns mineral and royalty interests in
approximately 13 million gross acres in 28 states and in every
major onshore basin in the continental United States, including ownership in more
than 92,000 gross producing wells with over 40,000 wells in the
Permian Basin. To learn more, visit http://www.kimbellrp.com.
About Buckhorn Resources
Founded in 2012, Buckhorn Resources is an active acquirer of
mineral and royalty interests on behalf of institutional investors,
family offices and high-net-worth individuals. Headquartered
in Houston, Texas, Buckhorn
Resources invests primarily in the Permian Basin, Eagle Ford Shale
and other liquids-rich basins in the United States. To learn
more, visit www.buckhornresources.com.
Forward-Looking Statements
This news release includes forward-looking statements. These
forward-looking statements, which include statements regarding the
anticipated benefits of the Acquisition and the expected timing of
the closing of the Acquisition, involve risks and uncertainties,
including risks that the anticipated benefits of the Acquisition
are not realized; risks relating to Kimbell's integration of the
Acquisition assets; risks relating to the possibility that the
Acquisition does not close when expected or at all because any
conditions to the closing are not satisfied on a timely basis or at
all; and risks relating to Kimbell's business, prospects for
growth and acquisitions and the securities markets generally.
Except as required by law, Kimbell undertakes no obligation and
does not intend to update these forward-looking statements to
reflect events or circumstances occurring after this news release.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in
Kimbell's filings with the Securities and Exchange Commission
("SEC"). These include risks inherent in oil and natural gas
drilling and production activities, including risks with respect to
low or declining prices for oil and natural gas that could result
in downward revisions to the value of proved reserves or otherwise
cause operators to delay or suspend planned drilling and completion
operations or reduce production levels, which would adversely
impact cash flow; risks relating to the impairment of oil and
natural gas properties; risks relating to the availability of
capital to fund drilling operations that can be adversely affected
by adverse drilling results, production declines and declines in
oil and natural gas prices; risks relating to Kimbell's ability to
meet financial covenants under its credit agreement or its ability
to obtain amendments or waivers to effect such compliance; risks
relating to Kimbell's hedging activities; risks of fire, explosion,
blowouts, pipe failure, casing collapse, unusual or unexpected
formation pressures, environmental hazards, and other operating and
production risks, which may temporarily or permanently reduce
production or cause initial production or test results to not be
indicative of future well performance or delay the timing of sales
or completion of drilling operations; risks relating to delays in
receipt of drilling permits; risks relating to unexpected adverse
developments in the status of properties; risks relating to
borrowing base redeterminations by Kimbell's lenders, risks
relating to the absence or delay in receipt of government approvals
or third-party consents; risks relating to acquisitions,
dispositions and drop downs of assets; risks relating to Kimbell's
ability to realize the anticipated benefits from and to integrate
acquired assets, including the assets acquired in the Acquisition;
and other risks described in Kimbell's Annual Report on Form 10-K
and other filings with the SEC, available at the SEC's website at
www.sec.gov. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this news release.
Contact:
Rick Black
Dennard Lascar Investor
Relations
krp@dennardlascar.com
(713) 529-6600
1 Operating information is based on management's
estimates.
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SOURCE Kimbell Royalty Partners, LP