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Table of Contents f UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38005 Kimbell Royalty Partners, LP (Exact name of registrant as specified in its charter) Delaware (State or other jurisdicti ...

Spring 2025 Investor Presentation Disclaimer Kimbell Mineral and Royalty Assets (1) Cash distribution yield reflects annualized Q4'24 distribution. Unit price calculated as of 2/25/2025. (2) Well count, M&A, and acreage numbers include mineral interests and overriding royalty interests. Includes the Company's $230.4 million acquisition from a private seller (the "Acquired Assets"), which closed on 1/17/2025 (3) Based on estimated major and minor upside net locations of 91.42 divided by estimated 6.5 net wel ...

Financial Data and Key Metrics Changes - Kimbell Royalty Partners reported oil, natural gas, and NGL revenues of $69.1 million for Q4 2024, excluding acquired production, with record run-rate production of 25,946 BOE per day including acquired production [14][15] - Consolidated adjusted EBITDA for Q4 2024 was $59.8 million, excluding acquired production [15] - The company announced a cash distribution of $0.40 per common unit for Q4 2024, with approximately 100% expected to be a return of capital [16] Business Line Data and Key Metrics Changes - The company maintained a strong drilling activity with 91 rigs actively drilling on its acreage, representing a 16% market share of all land rigs drilling in the continental U.S. [10][14] - The five-year annual average PDP decline rate is 14%, requiring only an estimated 6.5% net wells annually to maintain flat production [11] Market Data and Key Metrics Changes - Kimbell Royalty Partners has a conservative balance sheet with net debt to trailing twelve-month consolidated adjusted EBITDA of approximately 0.8 times [17] - The company had approximately $310.8 million in undrawn capacity under its secured revolving credit facility as of December 31, 2024 [17] Company Strategy and Development Direction - Kimbell aims to continue as a major consolidator in the fragmented U.S. oil and gas royalty sector, which is estimated to be over $700 billion in size [20] - The company is focused on larger acquisitions, targeting $100 million-plus deals, while remaining agnostic to commodity price movements [73][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the prospects for continued robust development in 2025, supported by the number of rigs actively drilling on their acreage, especially in the Permian Basin [19] - The company believes it is well-positioned for continued growth and enhancing unitholder value in the future [12] Other Important Information - Kimbell completed a $230 million acquisition last month and introduced 2025 guidance with expected production at a new record guidance level [11][18] - The company plans to redeem about half of its preferred shares in May and will continue to use 25% of cash flow to pay down debt [44][50] Q&A Session Summary Question: Are there any particular basins where you're seeing an abundance of opportunity to add acreage? - Management noted that while the Permian continues to see the most consolidation, they are looking at opportunities across the U.S. without targeting a specific basin [25][26] Question: Has the new administration's regulatory changes affected opportunities? - Management indicated that the new administration has been supportive of increased domestic energy output, which benefits them as mineral owners [30] Question: Can you discuss the 2025 guidance and the quality of acquired assets? - Management stated that the guidance reflects flat growth for the year, with a strong line of sight inventory and confidence in the quality of acquired assets [38][41] Question: What are the plans for redeeming preferred shares? - Management confirmed plans to redeem about half of the preferred shares in May and will consider financing options for future acquisitions [44][50] Question: How does the competitive landscape for M&A look? - Management emphasized that they focus on high-quality properties at reasonable prices and do not plan to shift focus based on commodity price movements [62][63] Question: What is the opportunity set for future acquisitions? - Management indicated a focus on larger acquisitions, with a preference for $100 million-plus deals, as the mineral market continues to consolidate [75][78]

Core Viewpoint - Kimbell Royalty (KRP) reported a quarterly loss of $0.10 per share, missing the Zacks Consensus Estimate of $0.19, and showing a significant decline from earnings of $0.14 per share a year ago, resulting in an earnings surprise of -152.63% [1] Financial Performance - The company posted revenues of $66.72 million for the quarter ended December 2024, which was 16.93% below the Zacks Consensus Estimate and a decrease from $99.2 million in the same quarter last year [2] - Over the last four quarters, Kimbell Royalty has surpassed consensus EPS estimates only once [2] Stock Performance - Kimbell Royalty shares have declined approximately 3.8% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.23 for the coming quarter and $1.01 for the current fiscal year, alongside expected revenues of $86.41 million and $364.26 million respectively [7] - The estimate revisions trend for Kimbell Royalty is currently favorable, leading to a Zacks Rank 1 (Strong Buy), indicating expected outperformance in the near future [6] Industry Context - The Oil and Gas - Royalty Trust - United States industry is currently ranked in the top 1% of over 250 Zacks industries, suggesting a strong performance potential compared to lower-ranked industries [8]

Production and Operational Performance - Q4 2024 average daily production reached 25,946 Boe per day, marking the first time production exceeded 25,000 Boe/d in Kimbell's history[5]. - The company achieved a 23% increase in total production compared to 2023, driven by a $455 million acquisition that closed in Q3 2023[7]. - As of December 31, 2024, Kimbell had 91 active rigs drilling, representing a 16% market share of the U.S. land rig count[10]. - Kimbell initiated 2025 operational guidance with an estimated daily production mid-point of 25,500 Boe/d, projecting a range of 24,000 to 27,000 Boe/d[10]. - Kimbell's 2025 guidance estimates net production between 24.0 Mboe/d and 27.0 Mboe/d, with oil production expected to account for 31% to 35% of net production[27]. Financial Performance - Total revenues for Q4 2024 were $69.1 million, with a net loss of approximately $39.3 million primarily due to a non-cash ceiling test impairment expense of $56.2 million[5][15]. - Kimbell Royalty Partners reported total revenues of $66.715 million for Q4 2024, a decrease of 32.7% compared to $99.196 million in Q4 2023[36]. - The company experienced a net loss of $39.259 million in Q4 2024, compared to a net income of $17.828 million in Q4 2023, reflecting a significant decline in profitability[36]. - For the full year 2024, Kimbell's oil, natural gas, and NGL revenues increased to $304.606 million, up 13.8% from $267.585 million in 2023[38]. - Adjusted EBITDA for Q4 2024 was $59,776,000, down from $68,993,000 in Q4 2023, with Adjusted EBITDA attributable to Kimbell Royalty Partners, LP at $50,684,000[49][47]. Cash Distribution and Debt Management - Kimbell's Q4 2024 cash distribution was announced at $0.40 per common unit, reflecting a payout ratio of 75% of cash available for distribution[10][12]. - The company plans to maintain a payout ratio of 75% of projected cash available for distribution, with 25% allocated to pay down outstanding borrowings[27]. - The cash available for distribution per common unit outstanding decreased to $0.44 in Q4 2024 from $0.57 in Q4 2023[49][47]. - Kimbell's long-term debt as of December 31, 2024, was $239,160,000, with a net debt of $214,160,000[49]. - The net debt to trailing twelve-month consolidated Adjusted EBITDA ratio was 0.8x as of December 31, 2024[49]. Asset and Reserve Management - Proved developed reserves increased by approximately 3% year-over-year to over 67 MMBoe as of December 31, 2024[24]. - Kimbell's total assets as of December 31, 2024, were reported at $1.119 billion, with total liabilities amounting to $256.420 million[34]. - The company reported an impairment of oil and natural gas properties totaling $62.119 million for the year ended December 31, 2024[38]. Pricing and Market Conditions - The average realized price per barrel of oil in Q4 2024 was $69.35, while the average price for natural gas was $1.88 per Mcf[14]. - Kimbell has a hedging strategy in place, with fixed price swaps for oil averaging $71.55 per barrel in Q1 2025[26]. - Kimbell's production and ad valorem taxes were 7.0% of oil, natural gas, and NGL revenues, indicating a stable tax burden relative to revenue[27].

Company Overview - Kimbell Royalty (KRP) is expected to report earnings for the quarter ended December 2024, with a consensus estimate of $0.19 per share, reflecting a year-over-year increase of +35.7% despite a revenue decline of 19% to $80.31 million [3][12]. Earnings Expectations - The stock price may increase if the actual earnings exceed expectations in the upcoming report scheduled for February 27 [2]. - The consensus EPS estimate has been revised 9.52% higher in the last 30 days, indicating a more optimistic outlook from analysts [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP for Kimbell Royalty is +24.32%, suggesting a strong likelihood of beating the consensus EPS estimate [11]. - A positive Earnings ESP combined with a Zacks Rank of 1 (Strong Buy) enhances the predictive power for an earnings beat, with historical data showing a nearly 70% success rate for such combinations [8]. Historical Performance - In the last reported quarter, Kimbell Royalty had an earnings surprise of +4.76%, reporting $0.22 per share against an expectation of $0.21 [12]. - Over the past four quarters, the company has only surpassed consensus EPS estimates once [13]. Industry Context - Sitio Royalties (STR), another player in the oil and gas royalty trust sector, is expected to report a significant year-over-year decline in EPS of -88.4%, with revenues projected to increase by 1.6% to $151.67 million [17]. - Sitio Royalties has an Earnings ESP of 7.69% and a Zacks Rank of 2 (Buy), indicating a likelihood of beating the consensus EPS estimate [18].

Acquisition Details - Kimbell Royalty Partners LP (KRP) has acquired mineral and royalty interests in the Midland Basin for approximately $230 million, with the final purchase amount subject to post-closing adjustments [1] - The acquired assets produced approximately 1,842 barrels of oil equivalent per day (Boe/d) as of October 1, 2024, including 1,125 barrels of oil per day (Bbls/d), 410 Bbls/d of NGLs, and 1,842 thousand cubic feet per day of natural gas (Mcf/d) [2] - The assets are located under the Mabee Ranch in the Midland Basin, primarily in Martin County (63% of interests) and Andrews County (37% of interests) [3] Future Production Estimates - For full-year 2025, Kimbell expects production from the acquired assets to remain at approximately 1,842 Boe/d, with a mix of 1,104 Bbls/d of oil, 424 Bbls/d of NGLs, and 1,881 Mcf/d of natural gas [4] Financing Structure - Kimbell financed the acquisition through a combination of an underwritten public offering of common units and borrowed funds under its revolving credit facility [2] Company Overview - Kimbell Royalty Partners LP holds mineral and royalty interests across 28 states in the United States [4] Market Position - KRP currently holds a Zacks Rank 3 (Hold), while other energy sector stocks like Sunoco LP and Equinor ASA have higher rankings, indicating stronger market positions [5]

Core Viewpoint - Kimbell Royalty Partners has successfully completed the acquisition of mineral and royalty interests valued at approximately $230 million, enhancing its asset portfolio and expected production capacity [1][2]. Group 1: Acquisition Details - The acquisition involves mineral and royalty interests from a private seller, with a purchase price of around $230 million, funded through a public offering and borrowings [1]. - The acquisition was finalized on January 17, 2025, and Kimbell will receive cash flow from production attributable to the acquired assets starting from October 1, 2024 [1]. - The acquired assets are located under the historic Mabee Ranch in the Midland Basin, primarily in Martin County (63%) and Andrews County (37%) [2]. Group 2: Production Estimates - As of October 1, 2024, the acquired assets produced approximately 1,842 Boe/d, consisting of 1,125 Bbl/d of oil, 410 Bbl/d of NGLs, and 1,842 Mcf/d of natural gas [2]. - For the full year 2025, Kimbell estimates production from the acquired assets to be approximately 1,842 Boe/d, with a slight adjustment in oil and NGL production [2]. Group 3: Company Overview - Kimbell Royalty Partners is a prominent oil and gas mineral and royalty company based in Fort Worth, Texas, owning interests in over 17 million gross acres across 28 states [3]. - The company has ownership in more than 130,000 gross wells, with over 51,000 wells located in the Permian Basin [3].