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 at approximately $175 million, subject to purchase price adjustments.
The purchase price for the acquisition is comprised of $95 million in cash and an aggregate of approximately 2.2 million common units of Kimbell and approximately 2.5 million common units of Kimbell Royalty Operating, LLC, together valued at approximately $80 million based on a closing price of $16.94 per common unit for Kimbell’s common units as of January 8, 2020. The transaction is expected to close in the second quarter of 2020, subject to customary closing conditions.
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.
