Kimbell Royalty Partners, LP Announces Pricing of Upsized Public Offering of Common Units

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Kimbell Royalty Partners, LP (KRP) announced a public offering of 7,250,000 common units at $14.00 per unit, with expected gross proceeds of approximately $101.5 million. The offering is intended to fund the repayment of outstanding borrowings and the pending acquisition of oil and natural gas mineral and royalty interests. The company plans to use the net proceeds for general partnership purposes and potential redemption of its Series A Cumulative Convertible Preferred Units.

FORT WORTH, Texas, Aug. 2, 2023 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced the pricing of its public offering of 7,250,000 common units representing limited partner interests, at a public offering price of $14.00 per common unit.  The total gross proceeds of the offering, before underwriters' discounts and estimated offering expenses, will be approximately $101.5 million. Kimbell has granted the underwriters an option to purchase up to 1,087,500 additional common units at the public offering price less the underwriting discount and commissions.  The offering is expected to close on August 7, 2023, subject to customary closing conditions.

Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility. At the closing of the pending acquisition of oil and natural gas mineral and royalty interests held by a private seller (the "Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on August 2, 2023, Kimbell intends to use amounts borrowed from its revolving credit facility to fund a portion of the purchase price of the Acquisition and to pay related fees and expenses.  Kimbell may use future amounts borrowed under its revolving credit facility for general partnership purposes, including a potential redemption of a portion of its 6.0% Series A Cumulative Convertible Preferred Units that are expected to be issued in connection with the Acquisition.

Citigroup, BofA Securities, Truist Securities, Mizuho, and RBC Capital Markets are acting as joint-bookrunners managers for the offering.  PNC Capital Markets, J.P. Morgan, Keybanc Capital Markets, Raymond James, Stephens Inc., Stifel, and TD Securities are acting as co-managers for the offering.  When available, a copy of the prospectus for the offering may be obtained from:

Citigroup c/o Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717 Telephone: (800) 831-9146

BofA Securities NC1-022-02-25 Attention: Prospectus Department 201 North Tryon Street Charlotte, NC 28255-0001 dg.prospectus_requests@bofa.com

To obtain a copy of the prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."

The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC.  This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.

About Kimbell Royalty Partners

Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas.  Kimbell owns mineral and royalty interests in over 16 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 125,000 gross wells with over 48,000 wells in the Permian Basin.

Forward-Looking Statements

This news release includes forward-looking statements, including statements related to the proposed public offering, the use of proceeds therefrom, the consummation of the Acquisition and other statements that are not historical facts. These forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized; risks relating to Kimbell's integration of the Acquisition assets; risks relating to the possibility that the Acquisition does not close when expected or at all because any conditions to the closing are not satisfied on a timely basis or at all; and risks relating to Kimbell's business and prospects for growth generally.  Except as required by law, Kimbell undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Kimbell's Annual Report on Form 10-K and other filings with the SEC, available at the SEC's website at www.sec.gov.  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Kimbell may not consummate the Acquisition and the closing of the offering is not conditioned upon the Acquisition.

Contact:

Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600

 

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SOURCE Kimbell Royalty Partners, LP

FAQ

What is the purpose of Kimbell Royalty Partners, LP's (KRP) public offering of common units?

The purpose of the public offering is to fund the repayment of outstanding borrowings under its revolving credit facility and the pending acquisition of oil and natural gas mineral and royalty interests.

What is the expected gross proceeds of the public offering?

The expected gross proceeds of the offering are approximately $101.5 million.

How does Kimbell Royalty Partners, LP (KRP) plan to use the net proceeds from the offering?

Kimbell intends to use the net proceeds for general partnership purposes and potential redemption of a portion of its 6.0% Series A Cumulative Convertible Preferred Units.

Who are the joint-bookrunners managers for the offering?

Citigroup, BofA Securities, Truist Securities, Mizuho, and RBC Capital Markets are acting as joint-bookrunners managers for the offering.

How can a copy of the prospectus for the offering be obtained?

A copy of the prospectus for the offering may be obtained from Citigroup and BofA Securities, as well as from the SEC's website.