Kimbell Royalty Partners to Acquire Interests for $231M

Kimbell Royalty Partners is set to acquire mineral and royalty interests worth $231 million. This deal indicates potential revenue from acquired assets, impacting investor sentiment positively.

Date: 08-01-2025

AI Rating: 7

Transaction Overview: Kimbell Royalty Partners, LP (KRP) has announced an acquisition of mineral and royalty interests valued at approximately $231 million from a private seller. This transaction offers flexibility in payment with options including full cash payment or a combination of $207 million in cash and $24 million in common units.

Revenue Potential: Looking ahead to 2025, Kimbell estimates that the acquired assets will yield about 1,842 Barrels of oil equivalent per day (Boe/d), distributing across 1,104 Barrels of oil per day (Bbl/d), 424 Bbl/d of natural gas liquids (NGLs), and 1,881 thousand cubic feet per day (Mcf/d) of natural gas. This projection indicates an increase in revenue potential as these assets generate organic growth.

Impact on Stock Prices: The potential for enhanced revenue growth from the acquisition may positively influence Kimbell's stock prices. Investors often view acquisitions as opportunities for expansion and increased earnings, especially when they expect such transactions to boost production rates significantly.

Stocks: KRP