Feb. 08–Houston private equity firm EnCap Investments is unloading more than 12,000 acres of oil and gas royalties to Kimbell Royalty Partners in an all-stock deal worth more than $150 million.
EnCap is acquiring a stake in Fort Worth-based Kimbell, which went public two years ago, by boosting Kimbell’s total net royalty acreage position by almost 10 percent.
Kimbell said the oil and gas royalty acreage acquired in the deal is primarily in South Texas’Eagle Ford shale, West Texas’ booming Permian Basin, the Haynesville shale in Texas and Louisiana, and in the emerging Powder River Basin in Wyoming.
Rapidly-growing Kimbell said the deal includes about 1,600 barrels of oil equivalent of daily production that will keep rising because 17 rigs are actively drilling on the combined acreage.
“This acquisition kicks off what we believe will be another year of consolidation within the oil and gas mineral and royalty space in the U.S.,” said Kimbell Chief Executive Bob Ravnaas.
Kimball has nearly quadrupled its oil and gas production since going public, he said, with royalty interests in about 95,000 wells nationwide.
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