Kimbell Royalty Partners LP (NYSE:KRP) Q4 2020 Earnings Conference Call February 25, 2021 11:00 AM ET Company Participants Rick Black – Investor Relations Bob Ravnaas – Chairman and Chief Executive Officer Davis Ravnaas – President and Chief Financial Officer Matt Daly – Chief Operating Officer Blayne Rhynsburger – Controller Conference Call Participants John Freeman – Raymond James Chris Baker – Credit Suisse Aaron Bilkoski – TD Securities Derrick Whitfield – Stifel Operator Greetings, and welcome to the K ...

PART I [Item 1. Business](index=16&type=section&id=Item%201.%20Business) Kimbell Royalty Partners, LP owns and acquires mineral and royalty interests in oil and natural gas properties across the United States, generating revenue without bearing operational costs - The company's primary business involves owning mineral and royalty interests, entitling it to revenue from oil and gas production without funding operational costs like drilling, completion, or abandonment[64](index=64&type=chunk) Asset and Reserve Overview (as of Dec 31, 2020) | Metric | Value | | :--- | :--- | | Gross Mineral Interest Acres | ~9.1 million | | Gross Overriding Royalty Acres | ~4.6 million | | Gross Wells | >97,000 | | Proved Reserves (PDP) | 42,418 MBoe | | Liquids Percentage of Reserves | 43.3% | | Average 5-Year PDP Decline Rate | 12.5% | Revenue Breakdown by Commodity (FY 2020) | Commodity | Percentage of Revenue | | :--- | :--- | | Oil Sales | 56% | | Natural Gas Sales | 34% | | NGL Sales | 9% | | Other Sales | 1% | - The company's business strategy focuses on acquiring additional mineral and royalty interests, benefiting from organic development by operators, and maintaining a conservative capital structure[83](index=83&type=chunk)[84](index=84&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks to its business, with the most significant being the volatility of oil and gas prices, dependence on unaffiliated operators, and structural partnership limitations - The COVID-19 pandemic and its impact on oil and gas prices are cited as a primary risk, having already led to a significant impairment charge of **$251.6 million in 2020** and potentially affecting operator activity, borrowing base, and future distributions[210](index=210&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) - A core operational risk is the complete dependence on unaffiliated operators for all exploration, development, and production activities, as their decisions directly affect the company's revenue streams[317](index=317&type=chunk)[318](index=318&type=chunk) - Structural risks include potential conflicts of interest with the General Partner and its affiliates, who may favor their own interests, and the partnership agreement replacing standard fiduciary duties with contractual ones, limiting remedies for unitholders[234](index=234&type=chunk)[249](index=249&type=chunk) - The company's ability to grow and pay distributions is limited by its policy of distributing all available cash, which necessitates reliance on external financing for acquisitions, and failure to make accretive acquisitions would limit growth and could lead to reduced distributions over time as reserves deplete[229](index=229&type=chunk)[333](index=333&type=chunk)[341](index=341&type=chunk) [Item 1B. Unresolved Staff Comments](index=133&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[408](index=408&type=chunk) [Item 2. Properties](index=133&type=section&id=Item%202.%20Properties) Information regarding the company's properties is incorporated by reference from "Item 1. Business" of this report - The information required for this item is contained in "Item 1. Business"[409](index=409&type=chunk) [Item 3. Legal Proceedings](index=133&type=section&id=Item%203.%20Legal%20Proceedings) The company states that while it may be involved in various legal claims in the normal course of business, it does not believe the resolution of these matters will have a material adverse impact on its financial condition or results of operations - The company is not involved in any legal proceedings that are expected to have a material adverse impact[410](index=410&type=chunk) [Item 4. Mine Safety Disclosures](index=133&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[411](index=411&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities](index=134&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Unitholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common units trade on the NYSE under the symbol "KRP", with a cash distribution policy recently adjusted to repay debt, and details on unregistered equity issuances - The company's common units are listed on the NYSE under the symbol **"KRP"** As of February 19, 2021, there were **38,918,689 common units** and **20,779,781 Class B units** outstanding[414](index=414&type=chunk) - The cash distribution policy requires distributing all available cash each quarter, but due to the economic impact of COVID-19, the Board allocated **25% of cash available for distribution for Q4 2020 ($3.9 million)** to repay outstanding debt and intends to continue this practice in future quarters[415](index=415&type=chunk)[416](index=416&type=chunk) - In connection with the Springbok Acquisition on April 17, 2020, the company issued **2,224,358 common units** and **2,497,134 Class B units** in an unregistered sale[432](index=432&type=chunk) [Item 6. Selected Financial Data](index=140&type=section&id=Item%206.%20Selected%20Financial%20Data) Selected financial data for the past five years highlights a net loss of $256.1 million in 2020 due to a significant impairment charge and lower revenues Selected Statement of Operations Data (in millions) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Total Revenues | $90.5 | $108.2 | $70.3 | | Impairment of oil and natural gas properties | $251.6 | $169.2 | $67.3 | | Operating (Loss) Income | ($250.7) | ($151.6) | ($48.2) | | Net (Loss) Income | ($256.1) | ($158.2) | ($52.3) | | Adjusted EBITDA (Non-GAAP) | $65.9 | $80.7 | $44.2 | Selected Balance Sheet Data (in millions, as of year-end) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Total Assets | $564.6 | $748.6 | | Long-term Debt | $171.6 | $100.1 | | Total Equity | $335.6 | $565.0 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=146&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant negative impact of the COVID-19 pandemic and commodity price volatility on 2020 results, leading to a major impairment charge and decreased operating cash flow - The business environment in 2020 was dominated by the COVID-19 pandemic and OPEC actions, causing a significant reduction in global oil demand and price volatility, which led to a **57% decrease in active land rigs** in the U.S. and a **52% decrease on the company's acreage** from year-end 2019 to 2020[463](index=463&type=chunk)[477](index=477&type=chunk)[480](index=480&type=chunk) Year-over-Year Results of Operations Comparison (2020 vs. 2019) | Metric | 2020 | 2019 | Change | | :--- | :--- | :--- | :--- | | Oil, Gas & NGL Revenues | $92.6M | $107.5M | ($14.9M) | | Production Volumes (Boe) | 5,072,635 | 4,515,867 | +556,768 | | Impairment Expense | $251.6M | $169.2M | +$82.4M | | Net Loss | ($256.1M) | ($158.2M) | ($97.9M) | | Operating Cash Flow | $62.2M | $80.7M | ($18.5M) | - The company recorded a **$251.6 million impairment** in 2020 due to the decline in the 12-month average SEC prices for oil (down **28.9%**) and natural gas (down **22.9%**), as well as a determination that its Proved Undeveloped (PUD) reserves no longer had reasonable certainty of development[491](index=491&type=chunk)[525](index=525&type=chunk)[873](index=873&type=chunk) - As of December 31, 2020, the company had **$171.6 million** in outstanding borrowings under its secured revolving credit facility, with **$93.4 million** of available capacity, and the borrowing base was **$265.0 million**[558](index=558&type=chunk) - Subsequent to year-end, on January 27, 2021, the company entered into an interest rate swap, fixing the interest rate on **$150.0 million** of notional debt at approximately **3.9%** for three years[460](index=460&type=chunk)[586](index=586&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=177&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are commodity price volatility and interest rate risk, partially mitigated by derivative contracts and an interest rate swap - The main market risk is commodity price volatility, which the company mitigates using derivative contracts (fixed price swaps), though these are not designated as accounting hedges, meaning fair value changes impact current earnings[578](index=578&type=chunk)[581](index=581&type=chunk) - The company has interest rate risk on its **$171.6 million** of debt, where a **1% increase in rates** would increase annual interest expense by approximately **$1.7 million**, a risk partially addressed post-year-end with an interest rate swap fixing the rate on **$150 million** of the debt[585](index=585&type=chunk)[586](index=586&type=chunk) - The company has customer concentration risk, with its top purchaser accounting for **7.1%** of oil, natural gas, and NGL revenues in 2020[583](index=583&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=179&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section indicates that the company's consolidated financial statements are included in the report, beginning on page F-1 - The Partnership's consolidated financial statements are included in the Annual Report beginning on page F-1[588](index=588&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=179&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None reported[589](index=589&type=chunk) [Item 9A. Controls and Procedures](index=179&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective as of December 31, 2020 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[590](index=590&type=chunk) - Based on the COSO framework, management concluded that internal controls over financial reporting were effective as of December 31, 2020[596](index=596&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of 2020 that materially affected, or are reasonably likely to materially affect, internal controls[598](index=598&type=chunk) [Item 9B. Other Information](index=181&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[599](index=599&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=181&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) This section provides information on the General Partner's directors and executive officers, including committee structures and corporate governance exemptions - The executive officers are Robert D. Ravnaas (CEO), R. Davis Ravnaas (President & CFO), and Matthew S. Daly (COO)[602](index=602&type=chunk) - The Board of Directors has an Audit Committee and a Conflicts and Compensation Committee, both composed of three independent directors: William H. Adams III, Craig Stone, and Erik B. Daugbjerg[619](index=619&type=chunk)[622](index=622&type=chunk) - The company has adopted a Code of Business Conduct and Ethics, which is available on its website[626](index=626&type=chunk) [Item 11. Executive Compensation](index=189&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation, determined by the Conflicts and Compensation Committee, includes base salary, long-term incentive restricted units, and short-term cash bonuses - The company does not directly employ its executive officers; they are compensated by Kimbell Operating under a management services agreement, with costs indirectly paid by the Partnership[629](index=629&type=chunk)[631](index=631&type=chunk) 2020 Named Executive Officer Compensation Summary | Name | Position | Salary | Long-Term Incentive | Non-Equity Incentive | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Robert D. Ravnaas | CEO | $575,000 | $2,186,663 | $790,625 | $3,798,178 | | R. Davis Ravnaas | President & CFO | $550,000 | $1,692,900 | $756,250 | $3,184,031 | | Matthew S. Daly | COO | $450,000 | $1,199,138 | $618,750 | $2,392,967 | - The Long-Term Incentive Plan (LTIP) authorizes up to **4,541,600 common units** for awards like restricted units, which generally vest in one-third installments over three years[656](index=656&type=chunk)[662](index=662&type=chunk)[648](index=648&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters](index=204&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Unitholder%20Matters) This section details the beneficial ownership of the company's units, including significant holders and the collective ownership of directors and executive officers - As of February 19, 2021, all directors and executive officers as a group beneficially owned approximately **8.4 million common units** (assuming full exchange of Class B units), representing **14.1%** of the total[687](index=687&type=chunk) - Major beneficial owners (over **5%**) include Kimbell Art Foundation (**8.6%**), PEP III Holdings, LLC (**9.0%**), PEP II Holdings, LLC (**5.6%**), and EIGF Aggregator III LLC (**6.5%**), assuming full conversion of Class B units[687](index=687&type=chunk) - The General Partner is wholly owned by Kimbell GP Holdings, LLC, which is controlled by affiliates of founders Robert D. Ravnaas, Brett G. Taylor, Mitch S. Wynne, and Ben J. Fortson[697](index=697&type=chunk)[698](index=698&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=211&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) The company has numerous relationships and transactions with its General Partner, Sponsors, and their affiliates, including participation rights and management service agreements - The company has a right to participate in up to **50%** of certain acquisitions for which founders Messrs. R. Ravnaas, Taylor, and Wynne provide diligence or other business services[726](index=726&type=chunk) - The company has a management services agreement with Kimbell Operating, which in turn has agreements with entities controlled by Sponsors (Messrs. Fortson and Wynne) to provide management, administrative, and acquisition services[734](index=734&type=chunk)[735](index=735&type=chunk) - Registration rights have been granted to sellers from the Haymaker, Dropdown, Phillips, and Springbok acquisitions, allowing them to sell their common units in the public market[707](index=707&type=chunk)[710](index=710&type=chunk)[714](index=714&type=chunk)[717](index=717&type=chunk) [Item 14. Principal Accounting Fees and Services](index=227&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) The company engaged Grant Thornton LLP as its independent registered public accounting firm, with all services pre-approved by the Audit Committee Fees Paid to Grant Thornton LLP (in thousands) | Fee Type | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Audit Fees | $691.6 | $543.4 | $514.2 | | Audit-Related Fees | $0.0 | $0.0 | $69.8 | | Tax Fees | $0.0 | $0.0 | $0.0 | | All Other Fees | $0.0 | $0.0 | $0.0 | | **Total** | **$691.6** | **$543.4** | **$583.9** | PART IV [Item 15. Exhibits, Financial Statement Schedules](index=229&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Annual Report, including key corporate documents and required certifications - This item lists all financial statements and exhibits filed with the report, including consents from auditors Grant Thornton LLP and reserve engineers Ryder Scott Company, L.P[766](index=766&type=chunk)[775](index=775&type=chunk) [Item 16. Form 10-K Summary](index=236&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to include a summary for this item - The Partnership has elected not to include summary information[777](index=777&type=chunk) Financial Statements and Supplementary Data [Consolidated Financial Statements](index=239&type=section&id=Consolidated%20Financial%20Statements) The audited consolidated financial statements for the years ended December 31, 2020, 2019, and 2018 are presented, showing a net loss of $256.1 million for 2020 Consolidated Balance Sheet Highlights (as of Dec 31, 2020) | Account | Value (in millions) | | :--- | :--- | | Total Current Assets | $28.3 | | Total Oil and Natural Gas Properties, net | $521.0 | | **Total Assets** | **$564.6** | | Total Current Liabilities | $8.8 | | Long-term Debt | $171.6 | | **Total Liabilities** | **$186.3** | | **Total Equity** | **$335.6** | Consolidated Statement of Operations Highlights (Year ended Dec 31, 2020) | Account | Value (in millions) | | :--- | :--- | | Total Revenues | $90.5 | | Impairment of oil and natural gas properties | $251.6 | | Operating Loss | ($250.7) | | **Net Loss** | **($256.1)** | | Net Loss attributable to common units | ($167.4) | [Notes to Consolidated Financial Statements](index=247&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies and financial results, including the 2020 impairment charge, derivative instruments, debt, equity, and related-party transactions - The company follows the full-cost method of accounting for its oil and gas properties, capitalizing all acquisition, exploration, and development costs[826](index=826&type=chunk) - The 2020 impairment of **$251.6 million** was driven by a decline in the 12-month average commodity prices and the reclassification of all PUD reserves due to drilling uncertainty[873](index=873&type=chunk)[874](index=874&type=chunk) Change in Proved Reserves (MBOE) | Period | Beginning Balance | Revisions | Purchases | Production | Ending Balance | | :--- | :--- | :--- | :--- | :--- | :--- | | **2020** | 43,563 | (359) | 4,286 | (5,072) | **42,418** | | **2019** | 37,651 | 5,766 | 4,661 | (4,515) | **43,563** | - The standardized measure of discounted future net cash flows from proved reserves decreased from **$400.0 million** at year-end 2019 to **$285.0 million** at year-end 2020, primarily due to lower commodity prices[944](index=944&type=chunk)

Kimbell Royalty Partners LP (NYSE:KRP) Q3 2020 Earnings Conference Call November 5, 2020 11:00 AM ET Company Participants Rick Black - IR Bob Ravnaas - CEO & Chairman Davis Ravnaas - President, CFO and VP, Business Development Matthew Daly - COO and Secretary Conference Call Participants Chris Baker - Credit Suisse Harry Halbach - Raymond James Operator Greetings and welcome to the Kimbell Royalty Partners Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A br ...

CONFIDENTIAL | NOT FOR DISTRIBUTION KIM B E L L R O Y A L T Y P A R T N E R S WINTER 2020 INVESTOR PRESENTATION Disclaimer This presentation includes forward-looking statements relating to the business, financial performance, results, plans, objectives and expectations of Kimbell Royalty Partners, LP ("KRP" or "Kimbell"). Statements that do not describe historical or current facts, including statements about beliefs and expectations and statements about the federal income tax treatment of future earnings an ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Kimbell Royalty Partners, LP (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 1311 (Primary Standard Industrial Classification Code Number) 47-5505475 (I.R.S. Employer Identification No.) 777 Taylor Street, Suite 810 Fort Worth, Texas 76102 (81 ...

Financial Data and Key Metrics Changes - The company reported a net loss of $76.8 million for Q2 2020, with a net loss attributable to common units of $48 million or $1.39 per common unit, primarily due to a $65.5 million non-cash impairment expense related to commodity price weakness [16][17] - The payout ratio was increased from 50% to 75% of cash available for distribution, resulting in a distribution of $0.13 per common unit [17][18] - Consolidated adjusted EBITDA for Q2 was $12.1 million, with a slight adjustment for a one-time transition services agreement related to the Springbok acquisition [17] Business Line Data and Key Metrics Changes - The average daily run rate production for Q2 2020 was 14,069 barrels of oil equivalent (Boe) per day, down 7% from Q1 2020's record production of 15,188 Boe per day [7][15] - The production mix for Q2 consisted of approximately 41% from liquids (28% oil and 13% NGLs) and 59% from natural gas [15] Market Data and Key Metrics Changes - The company maintained a market share of 11.6% of all drilling rig activity in the Lower 48 states as of June 30, 2020, with 29 active rigs [15][19] - The average realized prices for Q2 were $24.89 per barrel of oil, $1.44 per Mcf of natural gas, and $7.87 per barrel of natural gas liquids, leading to a total combined Boe price of $13.09 [16] Company Strategy and Development Direction - The company aims to continue its strategy as a consolidator of diversified and low PDP decline minerals, generating substantial free cash flow for distribution to unit holders [10] - The Springbok acquisition is viewed as a strategic move to enhance cash flow and growth opportunities [11] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of commodity prices and the U.S. economy, believing that the worst of production curtailments is behind them [6][8] - The company anticipates that most curtailments experienced in Q2 will reverse in the coming quarters, supported by a strong inventory of permits and drilled but uncompleted wells [14][13] Other Important Information - The company expects that substantially all distributions for the remainder of 2020 through 2023 will be non-taxable, considered a return of capital [18] - As of June 30, 2020, the company had approximately $171.7 million in debt outstanding, with a pro forma total debt to trailing 12-month consolidated adjusted EBITDA ratio of approximately 2.3 times [19] Q&A Session Summary Question: Details on curtailments or shut-ins during Q2 - Management indicated that approximately 6% of the 7% production drop was due to temporary curtailments, which are expected to reverse [27][29] Question: Discussion on payout ratio increase - Management explained the decision to increase the payout ratio to 75% was based on improved market conditions and investor feedback, with a focus on maintaining leverage levels [35][38] Question: Insights on micro investment deals and M&A outlook - Management noted that while it is challenging to transact in the current environment, there are opportunities for distressed sales, and they are focusing on both micro and larger M&A strategies [44][47] Question: Outlook for the second half of the year - Management expressed optimism that Q3 production would be higher than Q2 due to the reversal of curtailments, while also acknowledging natural decline and fewer rigs running [56][58]

Financial Performance - The Partnership reported a loss of approximately $4.0 million on commodity derivative instruments for the three months ended June 30, 2020[41]. - The company reported a net loss of $76,790,050 for the three months ended June 30, 2020, compared to a net loss of $25,710,850 for the same period in 2019[131]. - Adjusted EBITDA for the three months ended June 30, 2020, was $12,098,785, a decrease from $21,551,058 in the same period of 2019[131]. - Total revenues for Q2 2020 were $12.8 million, down from $31.9 million in Q2 2019, reflecting a significant decline in oil and gas prices[146]. - Oil, natural gas, and NGL revenues for Q2 2020 were $16.8 million, a decrease of $11.1 million (39.8%) from $27.9 million in Q2 2019[147]. - Cash available for distribution on common units was $5,930,243 for the three months ended June 30, 2020, compared to $9,055,722 for the same period in 2019[131]. Asset and Property Valuation - The Partnership's oil and natural gas properties as of June 30, 2020, totaled $658.4 million, a decrease from $704.4 million as of December 31, 2019[49]. - The Partnership's proved properties increased to $906.3 million as of June 30, 2020, compared to $758.3 million as of December 31, 2019[49]. - The Partnership recorded an impairment of $65.5 million and $136.5 million on its oil and natural gas properties for the three and six months ended June 30, 2020, respectively, due to a significant decline in oil and natural gas prices related to COVID-19 and OPEC production increases[52]. - The company expects to record an impairment to its oil and natural gas properties in Q3 2020 due to the full-cost ceiling limitation[114]. - The company experienced significant impairments of oil and natural gas properties, totaling $65,535,973 for the three months ended June 30, 2020[131]. Production and Revenue Sources - The company reported a total average daily production of 14,254 Boe/d (6:1) across all basins as of June 30, 2020, with the Permian Basin contributing 2,573 Boe/d[99]. - Production volumes increased to 1,260,619 Boe (14,254 Boe/d) in Q2 2020, up by 186,214 Boe (17.3%) from 1,074,405 Boe (11,807 Boe/d) in Q2 2019, primarily due to the Springbok Acquisition[148][149]. - Approximately 37% of the company's revenues and 58% of its production for Q2 2020 were derived from natural gas, providing some downside protection against low oil prices[113]. - Royalty income from oil sales increased to 55% of total revenue for the three months ended June 30, 2020, compared to 53% for the same period in 2019[125]. Debt and Financing - The Partnership's total commitments under the secured revolving credit facility are $225.0 million, with a borrowing base reaffirmed at $300.0 million[59]. - The Partnership borrowed an additional $85.5 million and $156.6 million under the secured revolving credit facility during the three and six months ended June 30, 2020, with an outstanding balance of $171.7 million as of June 30, 2020[61]. - The weighted average interest rate on the Partnership's outstanding borrowings was 3.69% for the six months ended June 30, 2020[62]. - A 1% increase in interest rates on the $171.7 million debt would result in an additional annual interest expense of approximately $1.7 million[203]. - The company currently does not have any interest rate hedges in place[203]. Acquisitions and Joint Ventures - The Partnership's acquisition of Springbok Energy Partners, LLC involved approximately $95.0 million in cash and the issuance of 2,224,358 common units[35]. - The Partnership's joint venture with Springbok SKR Capital Company, LLC and Rivercrest Capital Partners, LP holds a 49.3% ownership stake[36]. - The borrowing base under the secured revolving credit facility was reaffirmed at $300.0 million, supported by the assets acquired in the Springbok Acquisition[103]. - The company is actively pursuing acquisitions of mineral and royalty interests to support its growth strategy, including discussions with potential sellers[135][137]. Market Conditions and Price Volatility - Oil prices experienced significant volatility, with a low of $36.98 per barrel and a high of $63.27 per barrel for the six months ended June 30, 2020[117]. - Natural gas prices ranged from a low of $1.42 per MMBtu to a high of $4.25 per MMBtu during the same period[117]. - The ongoing COVID-19 pandemic has led to a significant reduction in global demand for oil and natural gas, impacting the company's operations and market outlook[108]. - The Baker Hughes United States Rotary Rig count decreased by 72.8% from 967 active rigs as of June 30, 2019, to 263 active rigs as of June 30, 2020[120]. Cash Distributions and Unit Information - The Partnership declared a quarterly cash distribution of $0.13 per common unit for Q2 2020, to be paid on August 10, 2020[90]. - The Partnership paid approximately $1.0 million in cash distributions on the Series A preferred units for Q2 2020[87]. - The balance of Class B units decreased from 25,557,606 at December 31, 2019, to 23,141,181 at June 30, 2020, after accounting for conversions and issuances[73]. - The total quarterly distribution to Class B unitholders for Q2 2020 was $23,141, representing 2.0% of their respective Class B Contributions[89]. - As of June 30, 2020, the Partnership had a total of 36,588,023 common units issued and outstanding[70].

CONFIDENTIAL | NOT FOR DISTRIBUTION KIMBELL ROYALTY PARTNERS FALL 2020 INVESTOR PRESENTATION Disclaimer This presentation includes forward-looking statements relating to the business, financial performance, results, plans, objectives and expectations of Kimbell Royalty Partners, LP ("KRP" or "Kimbell"). Statements that do not describe historical or current facts, including statements about beliefs and expectations and statements about the federal income tax treatment of future earnings and distributions, fu ...

Kimbell Royalty Partners LP (NYSE:KRP) Q1 2020 Earnings Conference Call May 7, 2020 11:00 AM ET Company Participants Rick Black - EVP, Dennard Lascar Associates Robert Ravnaas - CEO & Chairman Davis Ravnaas - President & CFO Matthew Daly - COO & Secretary Conference Call Participants John Freeman - Raymond James & Associates Derrick Whitfield - Stifel, Nicolaus & Company Jason Wangler - Wunderlich Securities Operator Greetings, and welcome to the Kimbell Royalty Partners First Quarter Earnings Conference Ca ...

CONFIDENTIAL | NOT FOR DISTRIBUTION KIM B E L L R O Y A L T Y P A R T N E R S SUMMER 2020 INVESTOR PRESENTATION Disclaimer This presentation includes forward-looking statements relating to the business, financial performance, results, plans, objectives and expectations of Kimbell Royalty Partners, LP ("KRP" or "Kimbell"). Statements that do not describe historical or current facts, including statements about beliefs and expectations and statements about the federal income tax treatment of future earnings an ...