US-based oil and gas mineral and royalty company Kimbell Royalty Partners (Kimbell) has reached an agreement to buy mineral and royalty assets from an undisclosed seller in a deal valued at $455m.

The assets being acquired have approximately 4,000 producing wells on more than 1 million gross acres, and they are located in key areas of the Permian and Mid-Continent basins.

Approximately 36% of the reserve value is in the Mid-Continent and 64% is in the Permian basins.

As of 1 June 2023, according to Kimbell's estimates, the acquired assets produced roughly 4,840 barrels of oil equivalent per day, comprising 1,619 barrels per day (bpd) of oil, 1,227bpd of natural gas liquids, and 11,964 million cubic feet of natural gas.

The selling party’s governing body and Kimbell's general partner's board of directors have both given their approval for the deal.

Upon completion, which is expected to happen in the third quarter of 2023, Kimbell expects to have over 17 million gross acres, 129,000 gross wells, and 100 active rigs spread across its assets.

Kimbell intends to finance the purchase using a $400m revolving credit line as well as a private placement of 6% Series A cumulative convertible preferred units to funds controlled by affiliates of Apollo.

Kimbell Royalty Partners CEO Bob Ravnaas said: "The acquisition represents the largest transaction in company history, and is expected to significantly enhance Kimbell's positions in the best-performing, highest-growth oil and gas basins in the Lower 48.  

“We expect the acquisition to be immediately accretive to distributable cash flow per unit, with accelerated accretion anticipated in future years, and look forward to continuing our role as a major consolidator in the oil and natural gas royalty sector."

In April this year, Kimbell signed a deal to buy MB Minerals’ oil and gas mineral and royalty interests for $143.1m.