Kimbell Royalty Partners, LP Announces $147 Million Permian Basin Mineral and Royalty Acquisition from Mesa Royalties

Kimbell Royalty Partners, LP (NYSE: KRP) has announced its agreement to acquire mineral and royalty interests from Mesa Royalties in a transaction valued at approximately $147 million. The deal, which is expected to close in the second quarter of 2026, comprises $44 million in cash and about 6.9 million newly issued common units of Kimbell Royalty Operating, LLC (OpCo). The acquisition is anticipated to be immediately accretive to Kimbell's distributable cash flow per unit.

Kimbell Royalty Partners, based in Fort Worth, Texas, is a prominent player in the oil and gas sector, owning mineral and royalty interests across more than 17 million gross acres in 28 states. This acquisition will enhance Kimbell's existing portfolio, which already includes interests in over 133,000 gross wells. The assets being acquired from Mesa Royalties are strategically located across the Permian Basin, a key area for oil production in the United States, and are expected to produce approximately 1,390 barrels of oil equivalent per day (Boe/d). This includes a significant contribution from oil and natural gas liquids, which will further bolster Kimbell's production profile.

The mineral and royalty interests being acquired are characterized by high-quality rock across stacked pay zones in both the Delaware and Midland basins. The acquisition includes approximately 711 net royalty acres and a diversified footprint with interests in over 400 drill spacing units across 15 counties in the Permian Basin. Notably, Kimbell anticipates that the acquired assets will generate an estimated $23.3 million in cash flow over the next twelve months at current strip pricing. This positions Kimbell to capitalize on the ongoing development opportunities in the region, with a substantial number of undrilled locations and active rigs present in the area.

This transaction underscores the continued consolidation trend within the U.S. oil and gas royalty sector, as companies seek to enhance their operational scale and resource base. Kimbell's acquisition of Mesa Royalties reflects a strategic move to strengthen its position in a highly competitive market, where access to quality assets can significantly impact long-term profitability. With the acquisition, Kimbell is expected to hold interests in over 135,000 gross wells and maintain a substantial presence in counties where a majority of U.S. drilling activity is concentrated.

Overall, this acquisition is indicative of the broader market dynamics in the oil and gas sector, where companies are increasingly focused on acquiring high-quality assets to drive growth and cash flow. As Kimbell Royalty Partners integrates these new interests, the transaction may serve as a catalyst for further consolidation in the industry, particularly as firms look to optimize their portfolios in response to evolving market conditions and energy demands.