Breaking News

Kimbell Royalty Partners announced that it has agreed to acquire certain oil and gas royalty assets from EnCap Investments for approximately $151.3M in a 100% equity transaction.Transaction Highlights: Includes oil and natural gas mineral and royalty interests controlled by EnCap through Phillips Energy Partners, Phillips Energy Partners II and Phillips Energy Partners III; Expected to close in late March 2019 and be immediately accretive to distributable cash flow per unit; Includes diversified package of royalty interests with over 64% of production (6:1) from the Eagle Ford Shale, Permian Basin, Haynesville Shale and Powder River Basin; Purchase price is composed of 9.4 million newly issued units in Kimbell Royalty Operating, LLC; further reduces Kimbell's leverage ratio due to 100% equity used to fund the purchase price; Adds approximately 1,600 Boe/d of production (6:1); Seventeen rigs actively drilling on the acreage; Liquids-focused asset base with approximately 77% of revenue from oil and natural gas liquids; Production mix on a 6:1 basis of approximately 38% oil, 48% natural gas and 14% natural gas liquids; Adds approximately 12,200 net royalty acres, increasing Kimbell's total net royalty acre position by 9% to approximately 144,100 net royalty acres across the continental U.S;Maintains Kimbell's five-year PDP decline rate - pro forma approximately 12% Provides support for a further increase in the borrowing base under Kimbell's revolving credit facility, adding to already strong liquidity position; Effective date of January 1, 2019, with Kimbell entitled to revenues from production on and after such date.