Kimbell Royalty Partners Acquires Mesa Royalties for $147 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Kimbell Royalty Partners (KRP) has agreed to acquire mineral and royalty interests from Mesa Royalties (MTR), in a cash and unit transaction valued at approximately $147.0M, subject to purchase price adjustments and other customary closing adjustments. The purchase price for the acquisition is comprised of $44.0M in cash - approximately 30% of the total consideration - and approximately 6.9 million newly issued common units of Kimbell Royalty Operating valued at $103.0M. 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 -. The acquisition is expected to close in Q2, subject to customary closing conditions, and the effective date is expected to be June 1. Management estimates 7.67 MMBoe in total proved reserves, reflecting a purchase price of approximately $19.17 per total proved Boe. The assets are expected to provide 93% of estimated first year cash flow from PDP and PDNP wells. 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 U.S. are located in counties where Kimbell is expected to hold mineral interest positions following the consummation of the acquisition.
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Analyst Views on KRP
Wall Street analysts forecast KRP stock price to rise
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 14.510
Low
12.00
Averages
17.00
High
24.00
Current: 14.510
Low
12.00
Averages
17.00
High
24.00
About KRP
Kimbell Royalty Partners, LP is an oil and gas mineral and royalty company. It owns mineral and royalty interests in over 17 million gross acres in 28 states and in onshore basins in the continental United States, including ownership in more than 130,000 gross wells with over 51,000 wells in the Permian Basin. Its properties include the Permian Basin, Mid-Continent, Appalachian, Eagle Ford, Bakken, Terryville/Cotton Valley/Haynesville, and DJ Basin/Rockies/Niobrara. The Permian Basin extends from southeastern New Mexico into West Texas. The Mid-Continent is an area containing fields in Arkansas, Kansas, Louisiana, New Mexico, Oklahoma, Nebraska and Texas and including the Granite Wash, Cleveland, and Mississippi Lime formations. The Appalachian Basin covers most of Pennsylvania, eastern Ohio, West Virginia, western Maryland, eastern Kentucky, central Tennessee, Western Virginia, northwestern Georgia, and northern Alabama. The Eagle Ford shale formation stretches across south Texas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Kimbell Royalty Partners Completes Acquisition of Mineral Interests
- Acquisition Completed: Kimbell Royalty Partners has finalized the acquisition of mineral and royalty interests from Mesa Royalties in a cash and unit transaction valued at approximately $145.9 million, with $44 million in cash representing about 30% of the total consideration.
- Production Capacity: The acquired assets are expected to produce approximately 1,390 Boe/d over the next twelve months, including 754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas, indicating strong cash flow potential.
- Diversified Asset Footprint: The acquisition spans 16 Permian counties, with 711 Net Royalty Acres, of which 70% are concentrated in the Delaware Basin and 30% in the Midland Basin, enhancing the company's market position in key oil and gas basins.
- Future Growth Outlook: Kimbell anticipates that the acquired assets will generate ongoing cash flow starting from June 1, 2026, further driving its expansion strategy across the continental U.S. and improving overall business performance.
See More
Kimbell Completes Acquisition of Mesa Royalties
- Acquisition Completed: Kimbell Royalty Partners has finalized the acquisition of Mesa Royalties' mineral and royalty interests in a cash and unit transaction valued at approximately $145.9 million, with $44 million in cash representing about 30% of the total consideration.
- Production Capacity: The acquired assets are expected to produce around 1,390 Boe/d (754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas) over the next twelve months, significantly enhancing the company's cash flow and profitability.
- Diversified Asset Footprint: The acquisition spans 16 Permian counties, with 711 Net Royalty Acres, where 70% is concentrated in the Delaware Basin and 30% in the Midland Basin, further solidifying Kimbell's market position in key oil and gas basins.
- Future Growth Potential: Kimbell will benefit from all cash flows from the acquired assets starting June 1, 2026, providing robust support for the company's future growth and expansion, particularly against a backdrop of rising oil and gas prices.
See More
Kimbell Royalty Partners to Release Q2 2026 Financial Results
- Earnings Release Schedule: Kimbell Royalty Partners plans to announce its Q2 2026 financial results on August 7, 2026, before market open, which is expected to positively influence investor confidence.
- Conference Call Details: The company will hold a conference call on the same day at 10:00 a.m. Central (11:00 a.m. Eastern), providing a live webcast to enhance communication with investors and improve transparency.
- Replay Availability: A replay of the conference call will be accessible by dialing 201-612-7415 with the conference ID until August 14, ensuring that investors who cannot attend live can still access critical information.
- Company Overview: Kimbell Royalty Partners owns mineral and royalty interests in over 133,000 gross wells across 28 states, covering more than 17 million gross acres, demonstrating its strong market position and resource base in the oil and gas industry.
See More
Valuation Analysis of U.S. Mid-Cap Stocks
- Valuation Overview: Seeking Alpha's valuation grades indicate that CrossAmerica Partners (CAPL) and Diversified Energy (DEC) have grades of A and A+, respectively, highlighting their relative attractiveness in the sector and potentially drawing investor interest.
- Market Appeal: Among stocks with market caps between $300M and $2B, Presidio Production (FTW) also received an A+ rating, indicating its competitive position in the energy sector, which could drive its stock price higher.
- Valuation Metrics Analysis: The valuation grades are based on multiple metrics, including P/E, PEG, EV/Sales, and EV/EBITDA, reflecting that these companies are considered relatively cheap investment options based on current and forward market expectations.
- Industry Outlook: Amid increasing uncertainty in the energy market, Kimbell Royalty Partners' $147M acquisition of Permian Basin assets demonstrates an aggressive strategy in industry consolidation, potentially enhancing its market position.
See More
Kimbell Royalty Partners Acquires Permian Basin Assets for $147M
- Acquisition Overview: Kimbell Royalty Partners announced an agreement to acquire mineral and royalty interests in the Permian Basin from Mesa Royalties for approximately $147 million, consisting of $44 million in cash and about 6.9 million newly issued common units valued at $103 million, reflecting the company's strong interest in high-quality assets.
- Asset Quality and Cash Flow: Kimbell describes these assets as 'high-quality rock in de-risked areas of the Delaware and Midland basins,' with an estimated 93% of first-year cash flow expected from PDP and PDNP wells, indicating the robustness and sustainability of its investment.
- Production Expectations: The company estimates that the acquired assets will produce 1,390 boe/day over the next 12 months starting June 1, which will significantly enhance its production capacity and market competitiveness.
- Operational Scale Expansion: Upon closing the deal, Kimbell will hold over 17 million gross acres, more than 135,000 gross wells, and a total of 93 active rigs, representing approximately 18% of the total active land rigs drilling in the continental U.S., further solidifying its leadership position in the industry.
See More
Kimbell Royalty Partners Acquires Mesa Royalties for $147 Million
- Acquisition Overview: Kimbell Royalty Partners announced the acquisition of mineral and royalty interests from Mesa Royalties for approximately $147 million, with $44 million in cash representing about 30% of the total consideration, and the remainder in 6.9 million newly issued common units, expected to close in Q2 2026.
- Asset Production Capacity: The acquired assets are projected to produce approximately 1,390 Boe/d as of June 1, 2026, including 754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas, significantly enhancing Kimbell's cash flow and market position.
- Industry Consolidation Role: This acquisition will expand Kimbell's holdings to over 17 million gross acres and more than 135,000 gross wells, further solidifying its leading position in the U.S. oil and gas royalty sector, expected to account for about 18% of active land rigs in the continental U.S.
- Future Growth Potential: Following the acquisition, over 98% of all rigs in the continental U.S. will be located in counties where Kimbell holds mineral interests, which not only enhances the company's market coverage but also provides a strong foundation for future expansion and investment.
See More
Kimbell Royalty Partners Completes Acquisition of Mineral Interests
- Acquisition Completed: Kimbell Royalty Partners has finalized the acquisition of mineral and royalty interests from Mesa Royalties in a cash and unit transaction valued at approximately $145.9 million, with $44 million in cash representing about 30% of the total consideration.
- Production Capacity: The acquired assets are expected to produce approximately 1,390 Boe/d over the next twelve months, including 754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas, indicating strong cash flow potential.
- Diversified Asset Footprint: The acquisition spans 16 Permian counties, with 711 Net Royalty Acres, of which 70% are concentrated in the Delaware Basin and 30% in the Midland Basin, enhancing the company's market position in key oil and gas basins.
- Future Growth Outlook: Kimbell anticipates that the acquired assets will generate ongoing cash flow starting from June 1, 2026, further driving its expansion strategy across the continental U.S. and improving overall business performance.
See More
Kimbell Completes Acquisition of Mesa Royalties
- Acquisition Completed: Kimbell Royalty Partners has finalized the acquisition of Mesa Royalties' mineral and royalty interests in a cash and unit transaction valued at approximately $145.9 million, with $44 million in cash representing about 30% of the total consideration.
- Production Capacity: The acquired assets are expected to produce around 1,390 Boe/d (754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas) over the next twelve months, significantly enhancing the company's cash flow and profitability.
- Diversified Asset Footprint: The acquisition spans 16 Permian counties, with 711 Net Royalty Acres, where 70% is concentrated in the Delaware Basin and 30% in the Midland Basin, further solidifying Kimbell's market position in key oil and gas basins.
- Future Growth Potential: Kimbell will benefit from all cash flows from the acquired assets starting June 1, 2026, providing robust support for the company's future growth and expansion, particularly against a backdrop of rising oil and gas prices.
See More
Kimbell Royalty Partners to Release Q2 2026 Financial Results
- Earnings Release Schedule: Kimbell Royalty Partners plans to announce its Q2 2026 financial results on August 7, 2026, before market open, which is expected to positively influence investor confidence.
- Conference Call Details: The company will hold a conference call on the same day at 10:00 a.m. Central (11:00 a.m. Eastern), providing a live webcast to enhance communication with investors and improve transparency.
- Replay Availability: A replay of the conference call will be accessible by dialing 201-612-7415 with the conference ID until August 14, ensuring that investors who cannot attend live can still access critical information.
- Company Overview: Kimbell Royalty Partners owns mineral and royalty interests in over 133,000 gross wells across 28 states, covering more than 17 million gross acres, demonstrating its strong market position and resource base in the oil and gas industry.
See More
Valuation Analysis of U.S. Mid-Cap Stocks
- Valuation Overview: Seeking Alpha's valuation grades indicate that CrossAmerica Partners (CAPL) and Diversified Energy (DEC) have grades of A and A+, respectively, highlighting their relative attractiveness in the sector and potentially drawing investor interest.
- Market Appeal: Among stocks with market caps between $300M and $2B, Presidio Production (FTW) also received an A+ rating, indicating its competitive position in the energy sector, which could drive its stock price higher.
- Valuation Metrics Analysis: The valuation grades are based on multiple metrics, including P/E, PEG, EV/Sales, and EV/EBITDA, reflecting that these companies are considered relatively cheap investment options based on current and forward market expectations.
- Industry Outlook: Amid increasing uncertainty in the energy market, Kimbell Royalty Partners' $147M acquisition of Permian Basin assets demonstrates an aggressive strategy in industry consolidation, potentially enhancing its market position.
See More
Kimbell Royalty Partners Acquires Permian Basin Assets for $147M
- Acquisition Overview: Kimbell Royalty Partners announced an agreement to acquire mineral and royalty interests in the Permian Basin from Mesa Royalties for approximately $147 million, consisting of $44 million in cash and about 6.9 million newly issued common units valued at $103 million, reflecting the company's strong interest in high-quality assets.
- Asset Quality and Cash Flow: Kimbell describes these assets as 'high-quality rock in de-risked areas of the Delaware and Midland basins,' with an estimated 93% of first-year cash flow expected from PDP and PDNP wells, indicating the robustness and sustainability of its investment.
- Production Expectations: The company estimates that the acquired assets will produce 1,390 boe/day over the next 12 months starting June 1, which will significantly enhance its production capacity and market competitiveness.
- Operational Scale Expansion: Upon closing the deal, Kimbell will hold over 17 million gross acres, more than 135,000 gross wells, and a total of 93 active rigs, representing approximately 18% of the total active land rigs drilling in the continental U.S., further solidifying its leadership position in the industry.
See More
Kimbell Royalty Partners Acquires Mesa Royalties for $147 Million
- Acquisition Overview: Kimbell Royalty Partners announced the acquisition of mineral and royalty interests from Mesa Royalties for approximately $147 million, with $44 million in cash representing about 30% of the total consideration, and the remainder in 6.9 million newly issued common units, expected to close in Q2 2026.
- Asset Production Capacity: The acquired assets are projected to produce approximately 1,390 Boe/d as of June 1, 2026, including 754 Bbl/d of oil, 315 Bbl/d of NGLs, and 1,928 Mcf/d of natural gas, significantly enhancing Kimbell's cash flow and market position.
- Industry Consolidation Role: This acquisition will expand Kimbell's holdings to over 17 million gross acres and more than 135,000 gross wells, further solidifying its leading position in the U.S. oil and gas royalty sector, expected to account for about 18% of active land rigs in the continental U.S.
- Future Growth Potential: Following the acquisition, over 98% of all rigs in the continental U.S. will be located in counties where Kimbell holds mineral interests, which not only enhances the company's market coverage but also provides a strong foundation for future expansion and investment.
See More
