Kimbell completes acquisition of Haymaker’s mineral and royalty interests


Kimbell Royalty Partners has closed its previously announced acquisition of Haymaker‘s mineral and royalty interests for $210 million and 10 million common units. The total value of the deal is about $445 million based on Kimbell stock closing at $23.54 as of July 12, 2018. As a result of the closing. Haymaker’s backers KKR and Kayne Anderson Capital Advisors, along with Haymaker’s management, will now collectively own about a 37 percent stake in Kimbell.

PRESS RELEASE

FORT WORTH, Texas, July 13, 2018 /PRNewswire/ — Kimbell Royalty Partners, LP (NYSE: KRP) (“Kimbell”) today announced that it has closed the previously announced acquisition (the “Haymaker Closing”) of mineral and royalty interests held by Houston-based Haymaker Minerals & Royalties, LLC and Haymaker Resources, LP (collectively, “Haymaker”) for $210 million in cash and 10 million common units, resulting in a total valuation of approximately $445 million based on a closing price of $23.54 per unit for Kimbell’s common units as of July 12, 2018.

As a result of the Haymaker Closing, Haymaker’s private equity sponsors, KKR & Co. L.P. (“KKR”) and Kayne Anderson Capital Advisors, L.P. (“Kayne”), along with Haymaker management, now collectively own approximately 37% of the outstanding common units of Kimbell.

Simultaneous with the Haymaker Closing, Kimbell closed the previously announced private placement of 7.0% Series A Cumulative Convertible Preferred Units to certain affiliates of Apollo Capital Management, L.P. (collectively, “Apollo”) for gross proceeds of $110 million, as well as the previously announced fully underwritten $200 million revolving credit facility.

About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. As a result of the Haymaker Closing, Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.

Advisors
Credit Suisse Securities (USA) LLC acted as exclusive financial advisor and sole placement agent on the Series A Cumulative Convertible Preferred Units to Kimbell and Baker Botts L.L.P. acted as legal counsel to Kimbell. RBC Richardson Barr acted as exclusive financial advisor to Haymaker, Kirkland & Ellis LLP acted as legal counsel to KKR and Haymaker and DLA Piper LLP acted as legal counsel to Kayne and Haymaker. Kirkland & Ellis LLP also represented Apollo in connection with the Series A Cumulative Convertible Preferred Units offering.

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