White & Case advises Kimbell Royalty Partners, LP on US$231 million purchase of mineral and royalty assets

Global law firm White & Case LLP has advised Kimbell Royalty Partners, LP, a leading owner of oil and gas mineral and royalty interests in approximately 17 million gross acres in 28 states, on its acquisition of mineral and royalty interests held by a private seller in a cash and unit transaction valued at approximately US$231 million. The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions.

Under the purchase agreement, Kimbell has the option to pay the consideration entirely in cash or through a combination of US$207 million in cash and approximately 1.4 million common units of Kimbell Royalty Partners, LP, which are valued at US$24 million. The final mix of funding will be determined at closing, and the effective date of the acquisition is expected to be October 1, 2024.

Kimbell estimates that, for the full year 2025, the acquired assets will produce approximately 1,842 barrels of oil equivalent per day (Boe/d). The acquired acreage is located under the historic Mabee Ranch in the Midland Basin in Texas, with oil and gas minerals and royalty interests concentrated in Martin County and Andrews County.

Assuming the acquisition is consummated, Kimbell is expected to have more than 17 million gross acres, more than 130,000 gross wells and a total of 92 active rigs on its properties, which represents approximately 16 percent of the total active land rigs drilling in the continental United States.

The White & Case team was led by partners Jason Rocha and Charlie Ofner (both in Houston), and included M&A associates Muhammad Hasan and Gabriele Josephs (both in Houston); Tax partners Chad McCormick and Neil Clausen, and associate Thor Fielland (all in Houston); and Antitrust partner Rebecca Farrington (Washington, DC).

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