Page 13 - NorthAmOil Week 49 2021

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with its regularly scheduled semi-annual 2021. Kimbell estimates that, as of November gas (RSG) certification for the entirety of
redetermination. Additionally, PHX has 1, 2021, the seller’s royalty assets produced 700 their upstream and midstream assets via
entered into purchase and sale agreements to boepd (6:1) (240 bpd of oil, 123 bpd of NGLs a partnership with Project Canary, the
acquire 426 total net royalty acres in Caddo and 2,021 mcf per day of natural gas) across companies announced today.
Parish, La., for $5,787,272 in cash from a diverse property set with over 26,000 gross The partnership builds on Tug Hill’s pilot
two private sellers, subject to customary producing wells across the Permian, Mid- programme with Project Canary initiated
closing adjustments. The acquisition will Continent, Haynesville and other leading US earlier this year, in which the company gained
be funded with a combination of cash on basins. TrustWell™ ‘platinum’ certification, indicating
hand and borrowings under the company’s Concurrent with the closing of the performance in the top ten% of peers, on 45 of
credit facility. Pro forma the Acquisition, the acquisition, Kimbell completed the the company’s wells.
Company’s total debt drawn on the credit redemption of 25,000 Series A cumulative Tug Hill and XcL, which principally
facility will be approximately $20.0mn. The convertible preferred units, representing the operate in West Virginia’s Marshall and
Board of Directors of PHX unanimously entirety of the outstanding preferred units Wetzel counties, will be the first upstream
approved the acquisition, which is expected to originally issued by the company in 2018. and midstream companies to jointly seek
close by Dec. 15, 2021. Davis Ravnaas, president and chief independent certification of 100% of their
Chad Stephens, president and CEO, financial officer of Kimbell’s general partner, operating assets.Tug Hill produces more than
said: “The acquisition assets provide almost said: “We are pleased to announce the 800 mmcf per day of natural gas and delivers
immediate cash flow from the wells being closing of the acquisition as well as the it to market via XcL’s extensive midstream
completed and do a nice job of helping replace full redemption of the Preferred Units gathering system, which includes numerous
the volumes associated with the previously owned by certain affiliates of Apollo Capital interconnects with, and access to, major
announced divestiture of some of our legacy Management. The acquisition is expected interstate pipelines including Rover, Eastern
working interest wellbores. The increase in to be immediately accretive to distributable Gas Transmission, Texas Eastern, TC Energy
the borrowing base of our credit facility is cash flow per unit and is expected to enhance and Rockies Express. Both companies are
a reflection of a much stronger PHX with Kimbell’s already peer-leading PDP decline privately held and partners with Quantum
an improving asset base and high-quality rate while growing overall production. Energy Partners, a leading energy-focused
prospects.” Furthermore, the redemption of all remaining private equity firm with a strong commitment
PHX MINERALS, December 09, 2021 preferred units simplifies Kimbell’s balance to ESG and advancing sustainability.
sheet, reduces the company’s cost of capital “The partnership between Tug Hill and
Kimbell Royalty Partners and is also expected to be immediately XcL means, for the first time, gas purchasers
will have the opportunity to buy RSG that has
accretive to distributable cash flow per unit.
closes $57mn acquisition This final redemption fully closes the loop on been TrustWellTM certified from the wellhead
Kimbell’s acquisition of Haymaker in 2018,
to the receipt point. Tug Hill and XcL jointly
of mineral and royalty which was transformative for the company, believe the integration of independent, high
and we look forward to maintaining our
fidelity upstream and midstream certifications
interests in cash operational momentum as we enter 2022.” will result in a unique and unmatched RSG
offering for the market,” said Michael Radler,
KIMBELL ROYALTY PARTNERS, December 07,
transaction 2021 CEO of Tug Hill and XcL.
“Tug Hill places an extremely high focus
Kimbell Royalty Partners, a leading owner on operational excellence, sustainability
of oil and gas mineral and royalty interests ENERGY TRANSITION and being a good neighbor within the
in over 13mn gross acres in 28 states, today communities where we operate,” said Sean
announced that it has closed the previously Tug Hill and XcL initiate first Willis, president and chief operating officer
announced purchase of mineral and royalty at Tug Hill Operating. “We were pleased with
interests in an all-cash transaction valued at production and midstream the results from our pilot programme with
approximately $57mn. The acquisition was Project Canary earlier this year and look
funded with cash through a combination of partnership with Project forward to expanding our partnership and
an underwritten public offering of common RSG certification. Tug Hill is committed to
units and borrowings under its revolving Canary to independently utilising high fidelity technology and rigorous
credit facility. Kimbell is entitled to the cash operating standards to reduce the methane
flow attributable to the acquisition beginning certify responsibly sourced intensity of our operations and produce
on and after November 1, 2021. Revenues energy responsibly.”
and certain other operating statistics under gas TUG HILL OPERATING AND XCL MIDSTREAM
generally accepted accounting principles OPERATING, December 06, 2021
(GAAP) will be recorded for the Acquisition Tug Hill Operating and XcL Midstream
beginning on the closing date of December 7, Operating will seek responsibly sourced

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