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Kimbell Royalty Partners LP KRP has acquired certain mineral and royalty interests in the Midland Basin from a private seller. The partnership mentioned that the transaction was concluded in cash at a valuation of approximately $230 million. The final purchase amount is subject to post-closing adjustments.
Per the estimates provided by KRP, the acquired assets produced approximately 1,842 barrels of oil equivalent per day (Boe/d) as of Oct. 1, 2024. The production included 1,125 barrels of oil per day (Bbls/d), 410 Bbls/d of NGLs and 1,842 thousand cubic feet per day of natural gas (Mcf/d). Kimbell financed this transaction through a mix of an underwritten public offering of common units and borrowed funds under its revolving credit facility.
The newly acquired assets are located under the Mabee Ranch in the Midland Basin. The mineral and royalty interests are focused on Martin County and Andrews County. Martin County holds nearly 63% of the interests, while Andrews County owns the remaining 37%.
For full-year 2025, Kimbell expects the production from the acquired assets to be approximately 1,842 Boe/d. The production mix consists of 1,104 Bbls/d of oil, 424 Bbls/d of NGLs and 1,881 Mcf/d of natural gas. Kimbell owns mineral and royalty interest across 28 states in the United States.
KRP’s Zacks Rank and Key Picks
KRP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Sunoco LP SUN,Equinor ASA EQNR and Cheniere Energy, Inc. LNG. Sunoco and Equinor currently sport a Zacks Rank #1 (Strong Buy) each, while Cheniere Energy carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.
Equinor ASA is one of the leading integrated energy companies globally and the second-largest supplier of natural gas in Europe. The company’s expansion in the renewable energy space positions it for long-term growth as more and more countries transition toward cleaner energy solutions to meet their climate goals. Its strategic pivot toward low-carbon energy solutions unlocks new revenue streams in the growing market for clean energy and carbon management solutions.
Cheniere Energy is involved in LNG-related businesses, which include LNG terminals and natural gas marketing. The company has achieved a milestone with the first production of liquefied natural gas from the first LNG train of its Corpus Christi Stage 3 Liquefaction Project. The project, which includes seven midscale LNG trains, aims to expand the production capacity of the Corpus Christi Liquefaction facility. This expansion is expected to enhance Cheniere's position in the rapidly growing global LNG market, enabling the company to meet the rising demand for LNG, both in the United States and internationally.