Kimbell Royalty Partners, LP Announces Pricing Of $101.5M Upsized Public Offering Of 7.25M Common Units At A Price Of $14/Unit
Portfolio Pulse from Happy Mohamed
Kimbell Royalty Partners, LP (NYSE:KRP) has announced the pricing of its public offering of 7.25 million common units at $14.00 per unit, with total gross proceeds expected to be around $101.5 million. The proceeds will be used to repay outstanding borrowings under its revolving credit facility and potentially fund a portion of the purchase price of an acquisition of oil and natural gas mineral and royalty interests.
August 04, 2023 | 12:34 pm
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NEUTRAL IMPACT
The public offering could potentially dilute the value of existing shares, but the proceeds will be used to repay debt and fund an acquisition, which could strengthen the company's financial position.
The public offering increases the number of shares in circulation, which could dilute the value of existing shares. However, the proceeds will be used to repay debt, which could improve the company's balance sheet, and fund an acquisition, which could potentially increase future revenues. The net impact on the stock price is uncertain.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100