Kimbell Royalty Partners, LP Completes Upsized Public Offering

Kimbell Royalty Partners, LP Completes Upsized Public Offering

Kimbell Royalty Partners, LP (NYSE: KRP) has recently announced the pricing of its upsized public offering of 10 million common units. These common units are being sold at a price of $14.90 per unit, contributing to total gross proceeds of approximately $149 million, prior to any expenses associated with underwriting and offering. This development highlights Kimbell's robust market presence and commitment to strengthening its financial structure.

Key Details of the Offering

The offering has been structured to include an option for underwriters to purchase an additional 1.5 million units at the same public offering price. This feature showcases the confidence underwriters have in Kimbell's market performance. The completion of this offering is anticipated to occur within the stipulated customary closing conditions.

Utilization of Proceeds

Kimbell plans to utilize the net proceeds from this offering primarily for settling any outstanding debt under its revolving credit facility. Furthermore, the funds are intended to support the cash component of the acquisition of significant oil and natural gas mineral and royalty interests held by Boren Minerals. This transaction aligns with Kimbell's growth strategy, leveraging financial resources to enhance its asset portfolio.

Management of the Offering

The public offering is being managed by a consortium of financial institutions, including Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities, and Mizuho. Additional support is provided by co-managers such as PNC Capital Markets LLC and KeyBanc Capital Markets. As experts in the finance sector, these institutions play a crucial role in making this offering a success.

How to Access the Prospectus

For interested parties, a copy of the prospectus related to the offering will be available through the aforementioned joint bookrunners. This comprehensive document will provide detailed information about the conditions and specifics of the offering.

About Kimbell Royalty Partners, LP

Kimbell Royalty Partners (NYSE: KRP) stands out as a leading company in the oil and gas mineral and royalty sector. With ownership of mineral and royalty interests spanning approximately 17 million gross acres across 28 states, Kimbell has established itself across every key onshore basin in the continental United States. Notably, the company holds stakes in over 129,000 gross wells, including more than 50,000 in the prolific Permian Basin.

Future Outlook and Strategic Acquisitions

Kimbell's strategic acquisitions reflect its adaptive approach in a dynamic energy market. As the company progresses with the acquisition of Boren Minerals, it underscores its commitment to solidifying its operational capacity and expanding its resource base. Discussions about anticipated benefits emphasize the company's focus on long-term value creation for shareholders.

Risks and Considerations

While forward-looking statements are integral to business strategy, potential investors are encouraged to consider various risks involved, including the integration of acquired assets and the general market conditions surrounding energy resources. Kimbell remains vigilant regarding these factors as it navigates through growth opportunities.

Frequently Asked Questions

What is the price of the common units being offered by Kimbell?

The common units are being offered at a public price of $14.90 each.

How many units is Kimbell offering?

Kimbell is offering a total of 10 million common units in this upsize offering.

What is Kimbell going to do with the proceeds from the offering?

The proceeds will primarily be used to repay outstanding borrowings under its revolving credit facility and to fund an upcoming acquisition.

Who is managing the public offering?

The offering is managed by Citigroup, J.P. Morgan, RBC Capital Markets, among others.

What does Kimbell Royalty Partners specialize in?

Kimbell specializes in oil and gas mineral and royalty interests, holding vast acreage across major U.S. basins.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.