Kimbell Royalty Partners, LP Closes Mineral and Royalty Acquisition from Buckhorn Resources
Kimbell Royalty Partners, LP (“Kimbell”) announced that it has closed the previously announced purchase of certain oil and natural gas mineral and royalty assets from Buckhorn Resources GP, LLC and certain of its affiliates (collectively, “Buckhorn Resources”) for 2,169,348 newly issued units in Kimbell Royalty Operating, LLC valued at approximately $36.3 million (the “Acquisition”). Kimbell is entitled to the cash flow from production attributable to the Acquisition beginning on and after July 1, 2019, but only cash flow from production attributable to the Acquisition beginning on or after October 1, 2019 will be available for distribution to Kimbell’s unitholders. Revenues and certain other operating statistics under generally accepted accounting principles will be recorded for the Acquisition beginning on the closing date of December 12, 2019.
The Acquisition includes oil and natural gas mineral and royalty interests previously controlled by Buckhorn Resources and is expected to be immediately accretive to distributable cash flow per unit. The Acquisition includes a package of royalty interests located in the Eagle Ford Shale with two rigs actively drilling on the acreage. In addition, the Acquisition is expected to add approximately 270 Boe/d of production (6:1), comprising approximately 83% oil, 11% natural gas and 6% natural gas liquids. The Acquisition also adds approximately 86,000 gross acres (400 net royalty acres), 504 producing wells, 38 drilled but uncompleted wells and 519 additional upside locations. Finally, the Acquisition maintains Kimbell’s superior five-year PDP decline rate of approximately 13%, which is one of the lowest in the mineral and royalty industry.
“With the closing of the Buckhorn acquisition, we have wrapped up a very successful 2019. Combining this $36.3 million acquisition with our other acquisitions in 2019, we have completed a total of $220.7 million in accretive acquisitions this year. As we look towards 2020, we are very excited about the opportunities we see to continue our role as a leading consolidator in the U.S. minerals sector. We expect to spend a considerable amount of time on the road in 2020, including meeting with existing and potential investors and at investor conferences, in order to reinforce the Kimbell story. I want to once again thank our employees, advisors and unitholders for their support as we execute our business plan,” said Bob Ravnaas, Chief Executive Officer of Kimbell’s general partner.