Kimbell Royalty Partners, LP Announces $147 Million Permian Basin Mineral and Royalty Acquisition from Mesa Royalties

Rhea-AI Summary

Kimbell Royalty Partners (NYSE: KRP) agreed to acquire Permian Basin mineral and royalty interests from Mesa Royalties in a transaction valued at approximately $147 million, funded 70% with newly issued OpCo units and 30% cash.

The deal adds estimated $23.3 million next-twelve-month cash flow, around 1,390 Boe/d production, over 2,300 producing wells, 600+ undeveloped locations, and is expected to be immediately accretive to distributable cash flow per unit.

Positive

• Acquisition valued at approximately $147 million with defined cash and unit mix
• Estimated $23.3 million next-twelve-month cash flow at strip pricing
• Expected immediate accretion to distributable cash flow per unit
• Adds approximately 1,390 Boe/d of production starting June 1, 2026
• Over 2,300 producing wells and 600+ undeveloped locations added
• Increases oil weighting from 32% to 33% of daily production mix

Negative

• Approximately $44 million cash component required to fund the acquisition
• Issuance of about 6.9 million new OpCo common units as consideration

News Market Reaction – KRP

-1.10%

-1.10% Session close to close

In the May 19 session, KRP declined 1.10%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a $147.0 million Permian Basin mineral and royalty acquisition expected to...

Analysis

This announcement details a $147.0 million Permian Basin mineral and royalty acquisition expected to add about 1,390 Boe/d, 7.67 MMBoe of proved reserves and estimated NTM cash flow of $23.3 million. It follows earlier Midland Basin deals, reinforcing Kimbell’s consolidator role. Investors may focus on how the mix of $44.0 million cash and 6.9 million OpCo units affects leverage and per‑unit metrics, and whether actual production and cash flow track these projections.

Key Figures

Acquisition value: $147.0 million Cash portion: $44.0 million Equity portion: 6.9 million units / $103.0 million +5 more

8 metrics

Acquisition value $147.0 million Mesa Royalties mineral and royalty acquisition consideration

Cash portion $44.0 million Approx. 30% of total purchase price paid in cash

Equity portion 6.9 million units / $103.0 million Newly issued OpCo units to seller as consideration

NTM cash flow $23.3 million Estimated next‑twelve‑months cash flow at strip pricing as of May 15, 2026

Estimated production 1,390 Boe/d Expected output from acquired assets as of June 1, 2026

Proved reserves 7.67 MMBoe Management estimate of total proved reserves acquired

Net royalty acres 711 NRA (5,691 normalized to 1/8th) Permian Basin mineral and royalty footprint acquired

Producing wells Over 2,300 wells Total producing wells associated with the acquired assets

Previous Acquisition Reports

2 past events · Latest: Jan 17 (Positive)

Same Type Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
Jan 17	Acquisition closing	Positive	-0.1%	Closed $230M Midland Basin mineral and royalty acquisition funded with equity and debt.
Jan 07	Acquisition announcement	Positive	-5.3%	Announced $231M Midland Basin mineral and royalty deal with cash and unit mix.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Past acquisition announcements have seen slightly negative to modestly weak price reactions, with an average move of -2.67% despite growth-oriented messaging.

Recent Company History

Recent history shows Kimbell using acquisitions and capital markets to expand its royalty footprint. In January 2025, it announced and then closed a Midland Basin mineral and royalty acquisition of about $231–230 million, funded via equity and credit facility borrowings, adding roughly 1,842 Boe/d. That deal increased acreage, wells and rig exposure. Today’s Permian-focused Mesa Royalties transaction continues this consolidation strategy, again emphasizing liquids-weighted production, proved reserves growth and cash flow accretion.

Key Terms

boe/d, ngls, drill spacing units, dsus, +1 more

5 terms

boe/d technical

"produce approximately 1,390 Boe/d (754 Bbl/d of oil, 315 Bbl/d of NGLs"

A measure of energy production that converts oil and gas output into a single daily figure — barrels of oil equivalent per day — so different fuels can be compared on the same scale. Think of it like converting miles and kilometers into one unit before comparing distances: investors use boe/d to judge how much total hydrocarbon output a company generates, estimate revenue potential, and compare production efficiency across firms or projects.

ngls technical

"754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas"

Natural gas liquids (NGLs) are the heavier, liquid hydrocarbons—like ethane, propane, butane and natural gasoline—removed from raw natural gas during processing. For investors, NGLs matter because they are sold separately from gas and crude oil, can be stored and transported differently, and their prices and demand move with fuel, petrochemical and seasonal heating markets, affecting producers’ revenue and profit margins.

drill spacing units technical

"interests in over 400 Drill Spacing Units ("DSUs") across 15 Permian counties"

A drill spacing unit is the defined area of surface and the corresponding subsurface that is allocated to be drained by a single oil, gas or geothermal well (or a planned set of wells), determining how close wells can be placed and how production rights are shared. It matters to investors because spacing rules set how many wells can be drilled, shape estimates of recoverable resources and per‑well economics, and influence development costs and production timing—similar to how deciding lot sizes affects how many houses can be built on a block and the overall value of the neighborhood.

dsus technical

"interests in over 400 Drill Spacing Units ("DSUs") across 15 Permian counties"

DSUs, or Deferred Share Units, are a form of long-term pay where employees or directors receive a promise of company shares or cash at a later date instead of immediate salary. Think of them as an IOU for future stock that vests over time and converts into actual shares or cash, so they matter to investors because they can increase the number of outstanding shares (dilution) and reveal how management’s pay is tied to company performance.

ducs technical

"near-term development with 364 gross DUCs and Permits across the acreage"

DUCs are oil or gas wells that have been drilled but not yet finished so they can produce; think of the hole and pipe being in place but the final equipment and steps to start flow haven’t been done. For investors, the DUC count is like a company’s inventory of nearly ready products — it signals how quickly production (and revenue) can be brought online, how much near-term capital spending may be needed, and how flexible supply plans are.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HIGHLIGHTS

• Expected to be immediately accretive to distributable cash flow per unit¹
• Transaction expected to be funded with approximately 70% newly issued OpCo units directly to seller and 30% cash
• Targeted oil and natural gas mineral and royalty interests located across the Permian Basin, with over 2,300 gross producing wells and over 600 undeveloped locations
• Estimated $23.3 million of NTM cash flow at strip pricing as of May 15, 2026²

FORT WORTH, Texas, May 19, 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 agreed to acquire mineral and royalty interests ("acquired assets") from Mesa Royalties (portfolio companies of funds managed by NGP), in a cash and unit transaction valued at approximately $147.0 million³, subject to purchase price adjustments and other customary closing adjustments (the "Acquisition").  The purchase price for the Acquisition is comprised of $44.0 million in cash (approximately 30% of the total consideration) and approximately 6.9 million newly issued common units of Kimbell Royalty Operating, LLC ("OpCo") valued at $103.0 million.

For the next twelve months, Kimbell estimates that, as of June 1, 2026, the acquired assets will produce approximately 1,390 Boe/d (754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas) (6:1).  The Acquisition is expected to close in the second quarter of 2026, subject to customary closing conditions, and the effective date is expected to be June 1, 2026.

Asset Highlights: High-quality rock across stacked pay zones in de-risked areas of both the Delaware and Midland basins

• Approximately 711 Net Royalty Acres (5,691 NRA normalized to 1/8^th) across the Permian Basin (70% Delaware / 30% Midland)
  • Broad, diversified footprint with interests in over 400 Drill Spacing Units ("DSUs") across 15 Permian counties
  • Substantial near-term development with 364 gross DUCs and Permits across the acreage and 13 active rigs as of May 1, 2026, including 11 in the Delaware Basin
  • Deep inventory of over 600 undeveloped locations identified across the position
  • Management estimates 7.67 MMBoe in total proved reserves, reflecting a purchase price of approximately $19.17 per total proved Boe
• 93% of estimated first year cash flow from PDP and PDNP wells
  • Established, oil-weighted production from over 2,300 total producing wells
  • Diversified exposure to top operators, including ConocoPhillips, Apache, OXY, and Permian Resources
• Liquids-focused asset base expected to strengthen Kimbell's oil weighting from 32% to 33% of daily production mix

Kimbell Continues Its Role as a Leading Consolidator in the U.S. Oil and Gas Royalty Sector

Assuming the Acquisition is consummated as described in this news release, Kimbell is expected to have over 17 million gross acres, over 135,000 gross wells and a total of 93 active rigs on its properties, which represents approximately 18%⁴ of the total active land rigs drilling in the continental United States.  In addition, over 98% of all rigs in the continental United States are located in counties where Kimbell is expected to hold mineral interest positions following the consummation of the Acquisition.    

Advisors

Greenhill, a Mizuho affiliate, served as exclusive financial advisor. White & Case LLP and Kelly Hart & Hallman LLP acted as legal counsel to Kimbell.  Moelis served as exclusive financial advisor and Latham & Watkins LLP served as legal advisor to Mesa Royalties.   

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 133,000 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 Acquisition, the expected timing of the closing of the Acquisition, operational data with respect to the Acquisition, involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized; risks relating to Kimbell's integration of the Acquisition assets; risks relating to the possibility that the Acquisition does not close when expected or at all because any conditions to the closing are not satisfied on a timely basis or at all; and risks relating to Kimbell's business and prospects for growth and acquisitions. 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 Acquisition; 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:

Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600 

___________________________

1 Since the Acquisition has an effective date of June 1, 2026, the cash flows from the acquired assets and related accretion will be recognized partially in Q2 2026 and fully thereafter beginning in Q3 2026.

2 Illustrative cash flow based on NTM acquired assets production and average realized cash margin of $45.91 / Boe.  Net realized crude oil, natural gas and NGL prices to calculate cash margin $79.52, $0.61 and $23.64, respectively.

3 Purchase price and related valuation metrics reflect Kimbell's 30-Day Volume Weighted Average Price of $14.86 per unit as of 05/15/2026.

4 Based on Kimbell rig count of 85, acquired assets rig count of 13 (5 rigs on targeted acreage overlap with existing KRP rig count) and Baker Hughes U.S. land rig count of 530 as of March 27, 2026.

 

View original content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-announces-147-million-permian-basin-mineral-and-royalty-acquisition-from-mesa-royalties-302775848.html

SOURCE Kimbell Royalty Partners, LP

FAQ

What did Kimbell Royalty Partners (KRP) announce on May 19, 2026?

Kimbell Royalty Partners announced a roughly $147 million acquisition of Permian Basin mineral and royalty interests from Mesa Royalties. According to Kimbell, the deal adds production, reserves, and undeveloped locations and is expected to be immediately accretive to distributable cash flow per unit.

How is the Mesa Royalties acquisition funded by Kimbell Royalty Partners (KRP)?

The acquisition is funded with about 30% cash and 70% newly issued OpCo units. According to Kimbell, the purchase price includes $44 million in cash and approximately 6.9 million new Kimbell Royalty Operating common units valued at $103 million.

What production and cash flow will Kimbell (KRP) gain from the Mesa Royalties assets?

Kimbell estimates the acquired assets will produce about 1,390 Boe/d and generate roughly $23.3 million in next-twelve-month cash flow. According to Kimbell, the mix includes oil, NGLs, and natural gas, effective June 1, 2026.

When is the Kimbell (KRP) acquisition of Mesa Royalties expected to close?

The transaction is expected to close in the second quarter of 2026, subject to customary conditions. According to Kimbell, the effective date of the acquired assets is targeted for June 1, 2026, guiding investor expectations on timing of added cash flow.

How does the Mesa Royalties deal affect Kimbell’s (KRP) acreage and rig exposure?

After closing, Kimbell expects to control over 17 million gross acres, more than 135,000 gross wells and 93 active rigs. According to Kimbell, this would represent about 18% of active U.S. land rigs and broad exposure across Permian counties.

What are the key asset characteristics in Kimbell’s (KRP) Mesa Royalties acquisition?

The assets span roughly 711 net royalty acres in the Permian, with over 400 drill spacing units and 364 gross DUCs and permits. According to Kimbell, the portfolio is oil-weighted, liquids-focused, and diversified across operators like ConocoPhillips, Apache, OXY, and Permian Resources.