Fort Worth-based Kimbell Royalty Partners LP, a master limited partnership (MLP) that owns oil and gas mineral and royalty interests across 20 states, began trading on the New York Stock Exchange on Friday, Feb. 3, under the ticker symbol “KRP.”
The company priced its initial public offering of 5 million shares at $18 a share, to raise $90 million. According to an interview with The Street, Kimbell CEO and Chairman Robert Ravnaas, the funds will give the company access to additional capital. “We see a lot of acquisitions,” he told The Street.
Raymond James is the lead book-running manager, and RBC Capital Markets and Stifel are joint book-running managers. The company has a market-cap of $326.6 million
Kimbell Royalty Partners owns mineral and royalty interests in approximately 4.5 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
When the offering closes, the public will own about 30.6 percent limited partner interest, and certain parties contributing mineral and royalty interests will collectively own the remaining limited partner interests, the press release said. The company said it has granted the underwriters of the IPO a 30-day option to buy up to an additional 750,000 shares.
Baker Botts is representing Kimbell Royalty Partners, LP in the IPO.
.On the company’s board of directors are several longtime Fort Worth energy leaders, including Ben Fortson and Ted Collins Jr.