Kimbell Royalty Partners: Closes LongPoint Acquisition And Issues $325 Million In Preferred Units

Summary

  • Kimbell recently closed its acquisition of mineral and royalty interests from LongPoint Minerals II.
  • It ended up issuing $325 million in Series A Preferred Units to help pay for the acquisition.
  • These preferred units may eventually convert into 21.6 million common units.
  • Kimbell had the option to issue up to $400 million in preferred units, which would have increased the potential dilution by 5 million units.
  • Kimbell is now projected to generate $2.58 per unit in distributable cash flow at current 2024 strip.
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Gas Pipeline In Front Of The Oil Pump

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Kimbell Royalty Partners (NYSE:KRP) recently closed on its acquisition of mineral and royalty interests from LongPoint Minerals II. Kimbell chose to issue $325 million in Series A Preferred Units, which is $75 million less than it could have issued.

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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