Kimbell Royalty to Acquire Springbok's Mineral and Royalty Interests

Updated 1 year 6 months ago

Kimbell Royalty has agreed to acquired the mineral and royalty interests of Springbok Energy Partners and Springbok II in a transaction valued at $175 million, subject to purchase price adjustments. This includes $95 million in cash and 2.2 million units of Kimbell and 2.5 million units of Kimbell Royalty Operating with the cash portion raised through a public offering of units and an existing credit facility. These assets produced 823 bbl/d of oil, 279 bbl/d of NGLs, and 8,584 Mcf/d of natural gas with an average realized cash margin of $21.92 per boe and included 2,160 net royalty acres. The Delaware Basin represents 29% of the rig activity included in the acquisition with four active rigs drilling on this acreage and 14 rigs drilling across all of the acreage. The deal is expected to close in 2Q 2020. TenOaks Energy Advisors acted as a financial advisor to Springbok.