Bloomberg reported that KKR & Co. (NYSE:KKR) and Chesapeake Energy Corp. (NYSE:CHK) in a $250 million joint partnership plans to buy mineral rights and royalties from oil and gas properties owners.

As quoted in the market news:

KKR, the private equity firm run by Henry Kravis and George Roberts, will commit an initial $225 million and Chesapeake will provide $25 million toward the partnership, which will invest in mineral and royalty interests in oil and gas basins, the firms said in a statement today. Owners of oil and gas royalties typically receive a share of production revenue without incurring any of the production cost. In the U.S., owners of mineral rights to a specific piece of property usually negotiate for royalty payments.

Click here to read the full Bloomberg report.