Kimbell Royalty Partners, LP Announces Public Offering of Common Units
Kimbell Royalty Partners (NYSE: KRP) has announced a public offering of 9,000,000 common units representing partner interests, with an additional option for underwriters to purchase up to 1,350,000 units. The net proceeds will be used to repay outstanding borrowings under its revolving credit facility. The company plans to fund the cash portion of its pending Boren Minerals acquisition through future borrowings under the same facility.
The offering is being managed by Citigroup, J.P. Morgan, and RBC Capital Markets as lead book-running managers. The common units will be issued under an effective shelf registration statement on Form S-3 previously filed with the SEC.
Kimbell Royalty Partners (NYSE: KRP) ha annunciato un'offerta pubblica di 9.000.000 unità comuni rappresentanti gli interessi dei partner, con un'opzione aggiuntiva per gli underwriter di acquistare fino a 1.350.000 unità. I proventi netti saranno utilizzati per ripagare i prestiti in essere sotto la sua linea di credito rotativa. L'azienda prevede di finanziare la parte in contante della sua imminente acquisizione di Boren Minerals attraverso futuri prestiti sotto la stessa linea di credito.
L'offerta è gestita da Citigroup, J.P. Morgan e RBC Capital Markets in qualità di lead book-running managers. Le unità comuni saranno emesse ai sensi di una dichiarazione di registrazione shelf efficace in forma S-3 precedentemente depositata presso la SEC.
Kimbell Royalty Partners (NYSE: KRP) ha anunciado una oferta pública de 9,000,000 unidades comunes que representan intereses de socios, con una opción adicional para que los suscriptores compren hasta 1,350,000 unidades. Los ingresos netos se utilizarán para pagar préstamos pendientes bajo su línea de crédito revolving. La empresa planea financiar la porción en efectivo de su próxima adquisición de Boren Minerals a través de futuros préstamos bajo la misma línea de crédito.
La oferta está siendo gestionada por Citigroup, J.P. Morgan y RBC Capital Markets como administradores principales. Las unidades comunes se emitirán bajo una declaración de registro en estante efectiva en el formulario S-3 previamente presentada ante la SEC.
킨벨 로열티 파트너스 (NYSE: KRP)는 9,000,000개의 일반 단위를 대중에게 공개하겠다고 발표했습니다. 이는 파트너 이익을 나타내며, 언더라이터가 최대 1,350,000개 단위를 추가로 구매할 수 있는 옵션이 있습니다. 순 수익은 자사의 회전 신용 시설 하에서 미상환 차입금을 상환하는 데 사용될 것입니다. 이 회사는 동일한 시설 하에서 향후 차입을 통해 진행 중인 보렌 미네랄스 인수의 현금 부분을 자금 조달할 계획입니다.
이 제안은 시티그룹, J.P.모건, RBC 캐피탈 마켓이 주관하고 있습니다. 일반 단위는 SEC에 이전에 제출된 S-3 양식에 따라 유효한 선반 등록 명세서에 따라 발행될 것입니다.
Kimbell Royalty Partners (NYSE: KRP) a annoncé une offre publique de 9 000 000 d'unités ordinaires représentant des intérêts partenaires, avec une option supplémentaire pour les souscripteurs d'acheter jusqu'à 1 350 000 unités. Le produit net sera utilisé pour rembourser les emprunts en cours au titre de son crédit renouvelable. L'entreprise prévoit de financer la partie en espèces de son imminente acquisition de Boren Minerals par de futurs emprunts au sein de la même facilité.
L'offre est gérée par Citigroup, J.P. Morgan et RBC Capital Markets en tant que responsables principaux de la gestion des livres. Les unités ordinaires seront émises en vertu d'une déclaration d'enregistrement en étagère effective sur le formulaire S-3 préalablement déposée auprès de la SEC.
Kimbell Royalty Partners (NYSE: KRP) hat eine öffentliche Angebotsanleihe von 9.000.000 Stammaktien angekündigt, die Partnerinteressen repräsentieren, mit einer zusätzlichen Option für Underwriter, bis zu 1.350.000 Einheiten zu erwerben. Die Nettomittel werden verwendet, um ausstehende Kredite unter seiner revolvierenden Kreditfazilität zurückzuzahlen. Das Unternehmen plant, den Bargeldanteil seiner bevorstehenden Boren Minerals Übernahme durch zukünftige Darlehen unter derselben Fazilität zu finanzieren.
Das Angebot wird von Citigroup, J.P. Morgan und RBC Capital Markets als führende Book-Running-Manager geleitet. Die Stammaktien werden unter einem effektiven Shelf-Registrierungsdokument auf dem Formular S-3 ausgegeben, das zuvor bei der SEC eingereicht wurde.
- Strategic acquisition of Boren Minerals' oil and natural gas mineral and royalty interests
- Debt restructuring through revolving credit facility
- Potential dilution of existing unitholders through 9,000,000 new common units
- Additional debt burden through future credit facility borrowings for acquisition
- Possible further dilution if underwriters exercise 1,350,000 unit option
Insights
This equity offering of 9,000,000 common units with an additional 1,350,000 unit overallotment option represents a significant capital raising event for Kimbell Royalty Partners. The primary purpose is debt refinancing, with proceeds earmarked for the repayment of their revolving credit facility. This facility will subsequently be used to fund the recently announced Boren Minerals acquisition.
The engagement of tier-1 investment banks (Citigroup, J.P. Morgan and RBC Capital Markets) as lead book-runners suggests strong institutional support. However, this offering will likely result in dilution for existing unitholders. With KRP's current market cap at
For retail investors: Think of this like a homeowner refinancing their mortgage while simultaneously taking out additional funds for a home addition. While it may increase the total debt, it's being done to fund growth through acquisition. The key question is whether the Boren Minerals acquisition will generate sufficient returns to offset the dilution impact.
The timing of this equity raise aligns with broader industry consolidation trends in the oil and natural gas royalty sector. By using equity to effectively refinance the Boren Minerals acquisition, KRP is maintaining financial flexibility while expanding its mineral rights portfolio. This strategy helps preserve balance sheet strength in a commodity-driven business.
The structure as a public offering, rather than a private placement, suggests management's confidence in market receptivity and potentially indicates strong institutional interest in the royalty space. The involvement of three major underwriters provides additional validation of the offering's strategic rationale.
For everyday investors: Mineral rights companies like KRP are essentially toll collectors in the energy sector - they get paid when others produce oil and gas from their properties. This offering allows them to buy more 'toll booths' (mineral rights) while maintaining financial health.
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 Boren Minerals (the "Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on January 7, 2025, Kimbell intends to fund the cash portion of the purchase price of the Acquisition and related fees and expenses from future borrowings under its revolving credit facility.
Citigroup, J.P. Morgan, and RBC Capital Markets are acting as lead book-running managers for the offering. When available, a copy of the preliminary prospectus for the offering may be obtained from Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
To obtain a copy of the preliminary 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
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 (as amended) 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
How many common units is KRP offering in its January 2024 public offering?
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How is KRP planning to finance the Boren Minerals acquisition?
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