Kimbell Royalty Partners To Acquire Mineral and Royalty Interests from Springbok in $175 Million Transaction

January 10, 2020

Willkie is representing its clients Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC in the transaction.

On January 9, Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and gas mineral and royalty interests in approximately 13 million gross acres in 28 states, announced that it has agreed to acquire the mineral and royalty interests held by Dallas-based Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC in a transaction valued at approximately $175 million. The purchase price for the acquisition is comprised of $95 million in cash (approximately 54% of the total consideration) and an aggregate of approximately 2.2 million common units of Kimbell and approximately 2.5 million common units of Kimbell Royalty Operating, LLC, which are together valued at $80 million (approximately 46% of the total consideration).

Upon the acquisition’s closing, Kimbell is expected to have over 13 million gross acres, 145,917 net royalty acres and a total of 93 active rigs on its properties, which represents approximately 12% of the total active land rigs drilling in the continental United States. The Delaware Basin is the largest contributor to current and expected production from the Springbok assets and represents 29% of the rig activity included in the acquisition. The acquisition is expected to further solidify Kimbell's position in the Permian Basin by adding mineral interests in the Delaware Basin and further bolster its Eagle Ford Shale, Bakken Shale, Haynesville, STACK and DJ Basin positions.

Kimbell (NYSE: KRP) is a leading oil and natural gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in approximately 13 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 94,000 gross producing wells with over 40,000 wells in the Permian Basin.

Based in Dallas, Springbok is an active acquirer and aggregator of mineral and royalty interests across all major producing basins. Over the past ten years, Springbok and its affiliated predecessor entities have invested over $200 million of investors’ capital through the acquisition of over 13,000 mineral interests across 15 unconventional resource plays in 10 states. Willkie serves as outside general counsel to Springbok and represented the Springbok management team in the formation and capitalization of both SEP I and SEP II.

The Willkie deal team was led by partner Michael De Voe Piazza and associate Will Thanheiser and included partner Adam Turteltaub and associates Adam Whitehouse, Ransel Potter and Chris Truman.