Kimbell Royalty Partners, LP Announces $455M Accretive Acquisition
Portfolio Pulse from Happy Mohamed
Kimbell Royalty Partners, LP (NYSE:KRP) has announced a $455 million acquisition of mineral and royalty interests from a private seller. The acquisition is expected to be immediately accretive to distributable cash flow per unit, with estimated acceleration of accretion in 2024 and 2025. The assets are located in the Permian and Mid-Con basins. The acquisition will be funded through a private placement of 6.00% Series A Cumulative Convertible Preferred Units to fund managed by affiliates of Apollo (NYSE:APO) and borrowings under the company's $400 million revolving credit facility.
August 04, 2023 | 12:29 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Apollo is involved in the funding of Kimbell's acquisition through a private placement. This could potentially lead to a positive impact on its stock price.
Apollo's involvement in the funding of Kimbell's acquisition through a private placement indicates that it is actively participating in significant transactions in the oil and gas sector. This could potentially enhance its reputation and credibility in the market, thereby positively impacting its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Kimbell's acquisition is expected to boost its cash flow and enhance its positions in the oil and gas basins. This could potentially lead to a positive impact on its stock price.
The acquisition is expected to be immediately accretive to Kimbell's cash flow, which is a positive sign for investors. Additionally, the acquired assets are located in core positions of the Permian and Mid-Con basins, which are high-growth oil and gas basins. This could potentially lead to increased revenues and profits for the company, thereby positively impacting its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100