Kimbell Royalty Partners, a US-based oil and gas mineral and royalty company, has brokered a deal to buy mineral and royalty interests from MB Minerals in a deal valued at $143.1m.
The cash and stock transaction comprised $48.8m in cash and around 5.4 million freshly issued common units of Kimbell Royalty Operating valued at $85.4m and roughly 0.6 million freshly issued common units of Kimbell Royalty Partners worth $8.9m.
The majority of the acquired assets are located in southern Borden County and northern Howard County in Texas.
In the next 12 months, Kimbell expects the acquired assets to produce about 1,901 barrels of oil equivalent per day (boed). This includes 1,459 barrels per day (bopd) of oil, 219 bopd of NGLs, and 1,338 million cubic feet per day (mcfd) of natural gas.
If the deal materialises, Kimbell is anticipated to have over 16 million gross acres, over 125,000 gross wells, and a total of 97 operational rigs, which accounts for over 13% of all active land rigs drilling in the continental US.
In terms of production, active rig count, drilled but uncompleted wells (DUCs), permits, and undrilled inventory, it solidifies the Permian basin’s position as Kimbell’s top basin.
Furthermore, approximately 97% of all drilling rigs in the contiguous US are situated in areas where Kimbell anticipates holding mineral interest holdings after the completion of the deal.
Subject to customary closing conditions, the deal is anticipated to close in the second quarter of this year.
In December 2022, Kimbell bought mineral and royalty interests in Permian Basin from Hatch Royalty in a deal valued at $270.7m.