Kimbell acquires Cherry Creek Minerals for $455M; raises $325M from Apollo preferred units

Kimbell Royalty Partners, LP

Purchase price $455M cash for Cherry Creek Minerals; expected close Q3 2023 with effective date June 1, 2023.
Acquired assets produce ~4,840 Boe/d (28% increase to Kimbell production); 49,658 net royalty acres in Permian and SCOOP/STACK.
Apollo funds commit $325M firm for 6% Series A Cumulative Convertible Preferred Units; Kimbell may sell additional $75M.
Preferred units convertible after 2 years at $15.07 conversion price; distribution rate 6% per annum, step-up on default.
Acquisition expected to reduce G&A per Boe by ~22% and add 24 active rigs on acreage.

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Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Kimbell Royalty Partners, LP entered into Purchase Agreement with LongPoint.

Action: entry
Agreement: asset purchase
Counterparty: LongPoint

Exact text from the filing

the Kimbell has agreed to acquire all of the issued and outstanding membership interests in the Acquired Company owned by LongPoint pursuant to the Purchase Agreement.

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Kimbell Royalty Partners, LP filing history →

Source: SEC EDGAR

accession 0001104659-23-086790

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