Kimbell Royalty Partners has agreed to acquire a portfolio of oil and gas royalty interests from affiliated sellers for approximately $215.4 million, expanding the company’s mineral and royalty holdings across several major U.S. energy-producing regions.
The transaction is expected to close on or around August 21, 2026, subject to customary closing conditions. Kimbell expects the acquisition to be immediately accretive to distributable cash flow per unit.
The purchase price consists of approximately $74.9 million in cash, representing about 35% of the total consideration, and 9.5 million newly issued common units of Kimbell Royalty Operating valued at approximately $140.5 million. The final consideration remains subject to customary closing and post-closing adjustments.
The acquired portfolio includes approximately 2,568 net royalty acres, or 20,547 net royalty acres when normalized to a one-eighth royalty interest. The assets are concentrated in leading oil and natural gas regions, including the Eagle Ford, Permian Basin, Mid-Continent, and Appalachia.
The portfolio spans more than 3 million gross acres and includes interests associated with more than 29,000 gross producing wells across the Lower 48 states. Kimbell said the acquisition will further strengthen its diversified mineral and royalty position while increasing its exposure to areas with established production and continued development activity.
The acquired assets are expected to generate an average daily production of approximately 2,347 barrels of oil equivalent during the third quarter of 2026. This includes an estimated 841 barrels of oil per day, 569 barrels of natural gas liquids per day, and 5.6 million cubic feet of natural gas per day.
Production growth is expected to be supported by continued drilling and development on the properties. As of March 31, 2026, nine rigs were actively drilling across the acreage, with 177 drilled but uncompleted wells and permits providing additional visibility into future production.
Kimbell said the acquired assets have an estimated production decline rate of approximately 13%. The shallow decline profile is expected to support the company’s five-year proved developed producing decline rate and contribute to more stable production and cash flow.
The acquisition represents Kimbell’s second drop-down transaction since its initial public offering in February 2017. A drop-down transaction generally involves the transfer of assets from a sponsor or affiliated entity to a publicly traded company or partnership.
Kimbell expects the transaction to provide a combination of current production, near-term growth from existing development activity and more than a decade of additional drilling inventory.
The acquisition also broadens Kimbell’s exposure across several basins rather than concentrating its production and cash flow in a single region. This diversification can reduce the company’s dependence on activity levels, commodity pricing and operating conditions in any one basin.
The transaction was approved on July 16, 2026, by the Conflicts and Compensation Committee of the board of directors of Kimbell Royalty Partners’ general partner and by the full board.
Evercore served as financial advisor to the Conflicts Committee, while Potter Anderson & Corroon acted as its legal advisor. White & Case and Kelly Hart & Hallman advised Kimbell.
TenOaks Energy Partners and Stephens served as financial advisors to the sellers, with Mayer Brown acting as their legal advisor.
The sellers will be subject to a 90-day lockup period following the transaction’s closing. The acquisition has an effective date of June 1, 2026, allowing the related cash flow and expected accretion to be fully recognized during the third quarter of 2026.
Based in Fort Worth, Texas, Kimbell owns mineral and royalty interests covering more than 17 million gross acres across 28 states. Its portfolio includes interests in more than 135,000 gross wells across every major onshore basin in the continental United States.
KEY QUOTE:
“We are pleased to announce the second drop-down acquisition since our IPO in February 2017, and we expect the transaction to drive significant production and distributable cash flow growth, both in the near term and for years to come. Located in the premier oil and gas resource plays in the Eagle Ford, Permian, Mid-Con and Appalachia, the drop-down strengthens our existing multi-basin mineral footprint and provides an attractive blend of current production, expected baseline growth from near-term activity and more than a decade of future development inventory. I want to thank our team and our advisors for their diligent work as we continue to scale our proven business model.”
Bob Ravnaas, Chairman and CEO of Kimbell Royalty Partners’ General Partner
