Kimbell Royalty Partners Acquires Permian Basin Assets for $147M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: seekingalpha
- 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.
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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: 14.610
Low
12.00
Averages
17.00
High
24.00
Current: 14.610
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 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 Acquires Mesa Royalties for Approximately $147 Million
- Acquisition Overview: Kimbell Royalty Partners announced the acquisition of Mesa Royalties' mineral interests for approximately $147 million, structured as 30% cash and 70% newly issued OpCo units, which is expected to immediately enhance distributable cash flow.
- Asset Production Capacity: The acquired assets are projected to yield approximately 1,390 Boe/d in daily production, including 754 Bbl/d of oil and 1,928 Mcf/d of natural gas, indicating strong cash flow potential following the effective date of June 1, 2026.
- Resource Reserve Details: The acquisition includes over 600 undeveloped locations and 2,300 producing wells, with management estimating total proved reserves at 7.67 MMBoe, reflecting an acquisition price of approximately $19.17 per Boe, showcasing solid investment value.
- Industry Consolidation Role: Kimbell continues to play a leading consolidator role in the U.S. oil and gas royalty sector, post-acquisition, it will control over 17 million acres and 135,000 wells, further solidifying its market position.
See More
Kimbell Royalty Partners Increases Quarterly Dividend by 10.8%
- Dividend Increase: Kimbell Royalty Partners has declared a quarterly dividend of $0.41 per share, representing a 10.8% increase from the previous $0.37, indicating ongoing improvements in profitability and cash flow, which enhances investor confidence.
- Yield Advantage: The forward yield of 11.3% not only attracts income-seeking investors but also has the potential to enhance the company's appeal in the capital markets, possibly driving up the stock price.
- Dividend Payment Schedule: The dividend will be payable on May 27, with a record date of May 19 and an ex-dividend date also on May 19, ensuring shareholders receive their returns promptly, thereby strengthening shareholder loyalty.
- Future Growth Signal: Kimbell Royalty Partners reiterated its 75% payout policy while signaling an uptick in activities for 2026, reflecting the company's confidence in future growth and potentially attracting more long-term investors' interest.
See More
Kimbell Royalty Partners Reports Strong Q1 2026 Earnings and Operational Insights
- Strong Q1 Performance: Kimbell Royalty Partners reported first-quarter revenues of $82.9 million and a run rate production of 25,522 BOE per day, exceeding guidance midpoint, demonstrating the resilience of its high-quality, low-decline production base.
- Dividend Increase: The company declared a Q1 2026 distribution of $0.41 per unit, an 11% increase from Q4 2025, reflecting its strategic focus on returning value to unitholders.
- Active Rig Count: With 85 active rigs across its acreage, representing a 16% market share, the company is well-positioned for future development and production growth, particularly in the Permian Basin.
- Share Repurchase Program: During the first quarter, the company repurchased and canceled 500,000 units of common stock for approximately $7.3 million at an average price of $14.60 per unit, showcasing its flexibility in capital allocation and commitment to shareholder returns.
See More
Kimbell (KRP) Q1 2026 Earnings Transcript
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 Acquires Mesa Royalties for Approximately $147 Million
- Acquisition Overview: Kimbell Royalty Partners announced the acquisition of Mesa Royalties' mineral interests for approximately $147 million, structured as 30% cash and 70% newly issued OpCo units, which is expected to immediately enhance distributable cash flow.
- Asset Production Capacity: The acquired assets are projected to yield approximately 1,390 Boe/d in daily production, including 754 Bbl/d of oil and 1,928 Mcf/d of natural gas, indicating strong cash flow potential following the effective date of June 1, 2026.
- Resource Reserve Details: The acquisition includes over 600 undeveloped locations and 2,300 producing wells, with management estimating total proved reserves at 7.67 MMBoe, reflecting an acquisition price of approximately $19.17 per Boe, showcasing solid investment value.
- Industry Consolidation Role: Kimbell continues to play a leading consolidator role in the U.S. oil and gas royalty sector, post-acquisition, it will control over 17 million acres and 135,000 wells, further solidifying its market position.
See More
Kimbell Royalty Partners Increases Quarterly Dividend by 10.8%
- Dividend Increase: Kimbell Royalty Partners has declared a quarterly dividend of $0.41 per share, representing a 10.8% increase from the previous $0.37, indicating ongoing improvements in profitability and cash flow, which enhances investor confidence.
- Yield Advantage: The forward yield of 11.3% not only attracts income-seeking investors but also has the potential to enhance the company's appeal in the capital markets, possibly driving up the stock price.
- Dividend Payment Schedule: The dividend will be payable on May 27, with a record date of May 19 and an ex-dividend date also on May 19, ensuring shareholders receive their returns promptly, thereby strengthening shareholder loyalty.
- Future Growth Signal: Kimbell Royalty Partners reiterated its 75% payout policy while signaling an uptick in activities for 2026, reflecting the company's confidence in future growth and potentially attracting more long-term investors' interest.
See More
Kimbell Royalty Partners Reports Strong Q1 2026 Earnings and Operational Insights
- Strong Q1 Performance: Kimbell Royalty Partners reported first-quarter revenues of $82.9 million and a run rate production of 25,522 BOE per day, exceeding guidance midpoint, demonstrating the resilience of its high-quality, low-decline production base.
- Dividend Increase: The company declared a Q1 2026 distribution of $0.41 per unit, an 11% increase from Q4 2025, reflecting its strategic focus on returning value to unitholders.
- Active Rig Count: With 85 active rigs across its acreage, representing a 16% market share, the company is well-positioned for future development and production growth, particularly in the Permian Basin.
- Share Repurchase Program: During the first quarter, the company repurchased and canceled 500,000 units of common stock for approximately $7.3 million at an average price of $14.60 per unit, showcasing its flexibility in capital allocation and commitment to shareholder returns.
See More
Kimbell (KRP) Q1 2026 Earnings Transcript
See More
