Kimbell Royalty Partners LP agreed to acquire the mineral and royalty interests held by Dallas-based Springbok Energy Partners LLC and Springbok Energy Partners II LLC for approximately $175 million, subject to purchase price adjustments.
The purchase price comprised $95 million in cash and approximately 2.2 million common units of Kimbell and 2.5 million common units of Kimbell Royalty Operating LLC, which together are valued at $80 million. Kimbell plans to raise the cash portion through a combination of an underwritten public offering of common units and borrowings under its revolving credit facility.
The transaction includes a core position in the Delaware Basin comprising 20% of total net royalty acres, with four active rigs drilling on acreage and 61 drilled but uncompleted wells. After the acquisition, Kimbell is expected to have over 13 million gross acres, 145,917 net royalty acres and a total of 93 active rigs on its properties.
The acquisition, unanimously approved by Kimbell's board of directors and the Springbok entities' governing bodies, is expected to close in the second quarter, subject to customary closing conditions.
Baker Botts LLP and Kelly Hart & Hallman LLP acted as legal counsel to Kimbell. Willkie Farr & Gallagher LLP acted as legal counsel to the Springbok entities. TenOaks Energy Advisors LLC acted as financial adviser to the Springbok entities.