Certain mineral and royalty assets will be acquired by Kimbell Royalty Partners from Buckhorn Resource

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Image: Kimbell announces acquisition of mineral and royalty assets from Buckhorn Resources. Photo: courtesy of rawpixel from Pixabay.

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.