Kimbell Royalty Partners Closes $221.2 Million Drop Down Acquisition

Rhea-AI Summary

Kimbell Royalty Partners (NYSE: KRP) closed its previously announced “Drop Down” acquisition of mineral and royalty interests from affiliated sellers in a cash-and-unit deal valued at approximately $221.2 million. The consideration includes $74.9 million in cash (about 34%) and 9.5 million OpCo common units valued at roughly $146.3 million.

Kimbell is entitled to all cash flow from production attributable to the Drop Down effective June 1, 2026, while GAAP revenues and operating statistics will be recorded starting the closing date of August 21, 2026. As of June 1, 2026, the acquired assets are estimated to produce about 2,347 Boe/d and cover over 3 million gross acres with more than 29,000 gross producing wells across the Eagle Ford, Permian, Mid-Con and Appalachia.

Positive

• $221.2 million Drop Down acquisition closed with mixed cash and unit consideration
• Kimbell entitled to Drop Down cash flow effective June 1, 2026
• Acquired assets estimated to produce 2,347 Boe/d as of June 1, 2026
• Portfolio expansion to over 3 million gross acres and 29,000 producing wells in key basins

Negative

• Cash portion of Drop Down consideration totals $74.9 million
• Transaction consideration includes issuance of 9.5 million OpCo common units

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FORT WORTH, Texas, Aug. 21, 2026 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and gas mineral and royalty interests in over 17 million gross acres in 28 states, today announced that it has closed the previously announced purchase of mineral and royalty interests from certain affiliated sellers in a cash and unit transaction valued at approximately $221.2 million¹ (the "Drop Down").  The purchase price for the Drop Down was comprised of $74.9 million in cash (approximately 34% of the total consideration), and 9.5 million common units of Kimbell Royalty Operating, LLC ("OpCo") valued at approximately $146.3 million.  Kimbell is entitled to all cash flow from production attributable to the Drop Down since the effective date of June 1, 2026.  Revenues and certain other operating statistics under generally accepted accounting principles will be recorded for the Drop Down beginning on the closing date of August 21, 2026. 

Kimbell estimates that, as of June 1, 2026, the Drop Down currently produces approximately 2,347 Boe/d (841 Bbl/d of oil, 569 Bbl/d of NGLs, and 5,624 Mcf/d of natural gas) (6:1).  The Drop Down portfolio spans over 3 million gross acres with over 29,000 gross producing wells in premier areas of the Eagle Ford, Permian, Mid-Con and Appalachia, further expanding Kimbell's scaled and diversified mineral and royalty position.

About Kimbell Royalty Partners

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 over 17 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 137,000 gross wells.  To learn more, visit http://www.kimbellrp.com.  

Forward-Looking Statements

This news release includes forward-looking statements. These forward-looking statements, which include statements regarding the anticipated benefits of the Drop Down and operational data with respect to the Drop Down, involve risks and uncertainties, including risks that the anticipated benefits of the Drop Down are not realized; risks relating to Kimbell's integration of the Drop Down assets; and risks relating to Kimbell's business, 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 Drop Down; 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:

Zach Vaughan
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600

¹ Purchase price reflects Kimbell's $15.40 per unit closing price as of 8/21/2026.

View original content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-closes-221-2-million-drop-down-acquisition-302857569.html

SOURCE Kimbell Royalty Partners, LP

FAQ

What did Kimbell Royalty Partners (NYSE: KRP) acquire in the $221.2 million Drop Down deal?

Kimbell acquired mineral and royalty interests from affiliated sellers valued at about $221.2 million. According to Kimbell, the assets span over 3 million gross acres and more than 29,000 producing wells in the Eagle Ford, Permian, Mid-Con and Appalachia regions.

How was the $221.2 million KRP Drop Down acquisition structured between cash and units?

The Drop Down consideration included $74.9 million in cash and 9.5 million OpCo common units valued at about $146.3 million. According to Kimbell, cash represented approximately 34% of the total purchase price, with the remainder paid in units.

When will Kimbell Royalty Partners start recognizing revenues from the Drop Down acquisition?

Kimbell will record GAAP revenues and operating statistics for the Drop Down starting on August 21, 2026. According to Kimbell, it is entitled to all cash flow from production attributable to the Drop Down effective June 1, 2026, despite later accounting recognition.

What production levels are associated with KRP’s Drop Down acquisition as of June 1, 2026?

The Drop Down assets are estimated to produce about 2,347 Boe/d as of June 1, 2026. According to Kimbell, this includes roughly 841 Bbl/d of oil, 569 Bbl/d of NGLs and 5,624 Mcf/d of natural gas on a 6:1 basis.

How does the Drop Down acquisition affect Kimbell Royalty Partners’ acreage and well count?

The Drop Down adds over 3 million gross acres and more than 29,000 gross producing wells to Kimbell’s portfolio. According to Kimbell, these interests are located in premier areas of the Eagle Ford, Permian, Mid-Con and Appalachia, further diversifying its mineral position.

What is the effective date for cash flow entitlement from KRP’s Drop Down assets?

Kimbell is entitled to all cash flow from production attributable to the Drop Down effective June 1, 2026. According to Kimbell, this economic effective date precedes the GAAP revenue recognition date of August 21, 2026, when the transaction closed.