Kimbell Royalty Partners’ $123.1 Million Mineral and Royalty Acquisition of Springbok

Baker Botts L.L.P. represented Kimbell in the acquisition. Willkie Farr & Gallagher advised Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC in the transaction.

Kimbell Royalty Partners, LP (“Kimbell”) has agreed to acquire the mineral and royalty interests held by Dallas-based Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC (collectively, “Springbok”) in a transaction valued approximately $123.1 million funded by a combination of approximately $95 million in cash and approximately 2.2 million common units of Kimbell and approximately 2.5 million common units of Kimbell Royalty Operating, LLC.

Kimbell is entitled to the cash flow from production attributable to the Acquisition beginning on and after October 1, 2019.  Revenues and certain other operating statistics under generally accepted accounting principles  will be recorded for the Acquisition beginning on the closing date of April 17, 2020.  As of March 31, 2020, the acreage acquired in the Acquisition had over 90 operators on 2,160 net royalty acres across core areas of the Delaware Basin, DJ Basin, Haynesville, STACK, Eagle Ford and other leading basins.  In addition, for Q1 2020, Kimbell estimates that the Springbok assets produced 2,586 Boe/d (56% natural gas, 34% oil and 10% natural gas liquids) (6:1), an organic production growth increase of 2% from October 1, 2019.

Upon the acquisition’s closing, 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, which represents approximately 12% of the total active land rigs drilling in the continental United States. The Delaware Basin is the largest contributor to current and expected production from the Springbok assets and represents 29% of the rig activity included in the acquisition. The acquisition is expected to further solidify Kimbell’s position in the Permian Basin by adding mineral interests in the Delaware Basin and further bolster its Eagle Ford Shale, Bakken Shale, Haynesville, STACK and DJ Basin positions.

Kimbell (NYSE: KRP) is a leading oil and natural gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in approximately 13 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 94,000 gross producing wells with over 40,000 wells in the Permian Basin.

Based in Dallas, Springbok is an active acquirer and aggregator of mineral and royalty interests across all major producing basins. Over the past ten years, Springbok and its affiliated predecessor entities have invested over $200 million of investors’ capital through the acquisition of over 13,000 mineral interests across 15 unconventional resource plays in 10 states.

The Baker Botts team was led by Jason Rocha (Picture), along with Eileen Boyce, Jennifer Gasser, Steven Lackey, Nathaniel Richards, Mike Bresson and Chuck Campbell.

The Willkie deal team was led by partner Michael De Voe Piazza and associate Will Thanheiser and included partner Adam Turteltaub and associates Adam Whitehouse, Ransel Potter and Chris Truman.

Involved fees earner: Eileen Boyce – Baker Botts; Michael Bresson – Baker Botts; Chuck Campbell – Baker Botts; Jennifer Gasser – Baker Botts; Steven Lackey – Baker Botts; Nathaniel Richards – Baker Botts; Jason Rocha – Baker Botts; Michael De Voe Piazza – Willkie Farr & Gallagher; Ransel Potter – Willkie Farr & Gallagher; Will Thanheiser – Willkie Farr & Gallagher; Christian Truman – Willkie Farr & Gallagher; Adam Turteltaub – Willkie Farr & Gallagher; Adam Whitehouse – Willkie Farr & Gallagher;

Law Firms: Baker Botts; Willkie Farr & Gallagher;

Clients: Kimbell Royalty Partners LP; Springbok Energy Partners LLC;


Author: Ambrogio Visconti