Kimbell Royalty Partners, LP Announces Pricing of Upsized Public Offering of Common Units

Rhea-AI Summary

Kimbell Royalty Partners (NYSE: KRP) has announced the pricing of its upsized public offering of 10,000,000 common units at $14.90 per unit, expecting to raise approximately $149.0 million in gross proceeds. The offering includes an option for underwriters to purchase up to 1,500,000 additional units.

The offering is scheduled to close on January 9, 2025. Kimbell plans to use the net proceeds to repay outstanding borrowings under its revolving credit facility. The company intends to fund the cash portion of its pending Boren Minerals acquisition and related expenses through future borrowings under the same facility.

The offering is being managed by multiple financial institutions, with Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities, and Mizuho acting as joint-bookrunning managers.

Positive

• Successful upsizing of public offering indicates strong market demand
• Gross proceeds of $149.0 million strengthen financial position
• Strategic debt refinancing through revolving credit facility

Negative

• Significant dilution for existing unitholders with 10 million new units
• Additional potential dilution from 1.5 million unit underwriter option

FORT WORTH, Texas, Jan. 7, 2025 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced the pricing of its upsized public offering of 10,000,000 common units representing limited partner interests, at a public offering price of $14.90 per common unit. The total gross proceeds of the offering, before underwriters' discounts and estimated offering expenses, will be approximately $149.0 million. Kimbell has granted the underwriters an option to purchase up to 1,500,000 additional common units at the public offering price less the underwriting discount and commissions. The offering is expected to close on January 9, 2025, subject to customary closing conditions.

Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility. At the closing of the pending acquisition of oil and natural gas mineral and royalty interests held by Boren Minerals (the "Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on January 7, 2025, Kimbell intends to fund the cash portion of the purchase price of the Acquisition and related fees and expenses from future borrowings under its revolving credit facility. 

Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities and Mizuho are acting as joint-bookrunning managers for the offering. PNC Capital Markets LLC, KeyBanc Capital Markets, Capital One Securities and TCBI Securities, Inc., doing business as Texas Capital Securities are acting as co-managers for the offering. When available, a copy of the prospectus for the offering may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 800-831-9146; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, via email at prospectus-eq_fi@jpmchase.com; or RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, New York, NY 10281, by telephone at 877-822-4089 or by email at equityprospectus@rbccm.com.

To obtain a copy of the prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."

The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.

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 approximately 17 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 129,000 gross wells with over 50,000 wells in the Permian Basin.

Forward-Looking Statements

This news release includes forward-looking statements, including statements related to the proposed public offering, the use of proceeds therefrom, the consummation of the Acquisition and other statements that are not historical facts. These forward-looking statements 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 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 Annual Report on Form 10-K (as amended) 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. Kimbell may not consummate the Acquisition and the closing of the offering is not conditioned upon the Acquisition.

Contact:

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

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SOURCE Kimbell Royalty Partners, LP

FAQ

What is the price per unit for KRP's January 2025 public offering?

Kimbell Royalty Partners priced its public offering at $14.90 per common unit.

How many common units is KRP offering in its January 2025 public offering?

KRP is offering 10,000,000 common units, with an additional option for underwriters to purchase up to 1,500,000 units.

What are the total expected gross proceeds from KRP's 2025 offering?

The total gross proceeds from the offering are expected to be approximately $149.0 million.

How will KRP use the proceeds from its January 2025 public offering?

KRP will use the net proceeds to repay outstanding borrowings under its revolving credit facility and plans to fund the Boren Minerals acquisition through future borrowings.

When is KRP's January 2025 public offering expected to close?

The offering is expected to close on January 9, 2025, subject to customary closing conditions.