FORT WORTH, Texas, Dec. 12, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today 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.
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 94,000 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 operational data with respect to the Acquisition, involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized and risks relating to Kimbell's integration of the Acquisition assets, 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
[email protected]
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP