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Asset and Reserve Information - As of December 31, 2024, the company owned mineral and royalty interests in approximately 12.2 million gross acres, with 54% located in the Permian Basin and Mid-Continent[87] - The estimated proved oil, natural gas, and NGL reserves attributable to the company's interests were 67,541 MBoe, with 49.6% classified as liquids (29.6% oil and 20.0% NGLs)[88] - The company holds a total of 12,220,516 gross acres and 101,340 net acres across various basins, with an average leasing percentage of 99.0%[108] - The company has significant mineral interests in the Permian Basin (3,003,486 gross acres), Mid-Continent (3,663,657 gross acres), and Terryville/Cotton Valley/Haynesville (1,301,662 gross acres) with high leasing percentages[108] - The Bakken/Williston Basin is noted as one of the largest oil developments in the U.S., with the company holding 1,214,446 gross acres[108] - The Appalachian Basin, which includes the Marcellus and Utica plays, has 434,116 gross acres under the company's interest[108] - The company has a well count of 129,363 across various basins, with the Permian Basin having the highest count at 50,604 wells[113] - The company’s overriding royalty interests (ORRIs) total 4,726,337 gross acres, with a producing percentage of 99.6%[111] - The Eagle Ford shale formation is highlighted for its economic productivity, with the company holding 476,193 gross acres[108] - The company’s mineral interests in the Illinois Basin are fully leased at 100%[108] Production and Revenue - For the year ended December 31, 2024, revenues were generated 71% from oil sales, 16% from natural gas sales, and 13% from NGL sales[92] - Oil and condensate production increased to 2,836,913 Bbls in 2024, up 18.6% from 2,392,622 Bbls in 2023[126] - Natural gas production rose to 27,586,460 Mcf in 2024, a 17.5% increase from 23,384,021 Mcf in 2023[126] - Average daily production reached 24,868 Boe/d in 2024, compared to 20,265 Boe/d in 2023, reflecting a 22.5% growth[126] - The average price for oil was $75.48 per Bbl and for natural gas was $2.13 per MMBtu as of December 31, 2024[123] - The top purchaser accounted for approximately 9.1%, 6.7%, and 11.3% of the company's oil, natural gas, and NGL revenues for the years ended December 31, 2024, 2023, and 2022, respectively[531] Financial Performance - Net income for 2024 was $11,069,736, a significant decrease from $83,005,570 in 2023 and $130,794,286 in 2022[541] - Adjusted EBITDA for 2024 reached $262,832,363, up from $212,059,364 in 2023, indicating a growth of approximately 23.9% year-over-year[541] - Cash available for distribution on common units was $180,665,429 in 2024, compared to $140,781,292 in 2023, reflecting an increase of about 28.4%[541] - Depreciation and depletion expense increased to $135,123,177 in 2024 from $96,477,003 in 2023, marking a rise of approximately 40.1%[541] - Interest expense for 2024 was $26,696,018, slightly higher than $25,950,600 in 2023[541] - Impairment of oil and natural gas properties significantly rose to $62,118,433 in 2024 from $18,220,173 in 2023[541] - Unit-based compensation increased to $16,384,668 in 2024, compared to $13,111,522 in 2023, representing a growth of about 24.5%[541] - Net cash provided by operating activities for 2024 was $250,916,075, up from $174,267,667 in 2023, indicating a growth of approximately 43.8%[542] - Cash distribution on Series A preferred units increased to $16,223,494 in 2024 from $4,551,746 in 2023[542] - The company reported a loss (gain) on derivative instruments of $12,211,660 in 2024, compared to a gain of $(26,371,058) in 2023[542] Capital Structure and Financing - The company has a $550.0 million secured revolving credit facility and repaid $56.5 million in outstanding borrowings during the year, impacting cash available for distribution[96] - The company has total borrowings of $239.2 million under its secured revolving credit facility as of December 31, 2024[532] - A 1% increase in interest rates would result in an additional $2.4 million in annual interest expense[532] - The company has entered into commodity derivative contracts to mitigate price volatility, with counterparties being unrelated third parties[525] Regulatory and Compliance Challenges - The company faces intense competition in the oil and natural gas industry, impacting its ability to acquire additional properties[133] - Regulatory and environmental compliance costs are increasing, which may adversely affect the company's operations and financial condition[138] - The EPA and Army Corps of Engineers issued a final rule in December 2022 that restored many elements of the 2015 WOTUS definition, which may lead to increased compliance costs and monitoring for facilities[143] - The Supreme Court's decision in Sackett v. EPA in May 2023 clarified federal jurisdiction under the Clean Water Act, potentially impacting compliance costs for the company[145] - The implementation of the final methane rule in May 2024 may increase compliance costs for oil and natural gas producers, affecting production from the company's mineral interests[148] - The Inflation Reduction Act, signed in August 2022, includes hundreds of billions of dollars in incentives for renewable energy and imposes a federal fee on GHG emissions, which could accelerate the transition away from fossil fuels[152] - The company faces potential financial challenges as certain financial institutions restrict investments in oil and natural gas activities due to climate change concerns[153] - Increased regulatory scrutiny on hydraulic fracturing could lead to additional permitting requirements and increased operational costs for the company[161] - The company is subject to extensive regulations from federal, state, and local authorities, which may increase operational costs and delay projects[162] - The availability and cost of transportation significantly affect the sales of oil and natural gas, with federal regulations governing interstate transportation impacting the company's operations[164] Workforce and Management - The company has approximately 28 employees, with women representing 36% of the workforce[181] - The company recognizes the importance of attracting and retaining qualified employees in a competitive marketplace[180] - The company has a management services agreement with Kimbell Operating for operational services, with compensation indirectly paid by the company[179] Capital Efficiency - The average unit cost per Boe decreased to $2.24 in 2024 from $2.76 in 2023, indicating improved cost efficiency[126] - The average estimated yearly decline rate for proved developed producing (PDP) reserves is 13.2% during the initial five years[89] - The company benefits from continued development of its properties without the need for additional capital investment, leveraging technological advances and third-party producer interest[99] - The company maintains a conservative capital structure, requiring a supermajority vote for certain actions, ensuring long-term financial flexibility[98]

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]

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 [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, equating to 75% of cash available for distribution [16] Business Line Data and Key Metrics Changes - The company maintained a strong drilling activity with 91 rigs actively drilling on its acreage, representing approximately 16% market share of all land rigs 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 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, to avoid increasing leverage from smaller transactions [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 new administration's support for increased domestic energy output is seen as beneficial for the company as a mineral owner [30] Other Important Information - Kimbell has grown production from 3,116 BOE per day to 25,946 BOE per day since its IPO eight years ago, an increase of 733% [20] - The company plans to redeem about half of its preferred shares in May 2025, while continuing 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, opportunities are being explored 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 administration has been supportive of increased domestic energy output, which benefits the company [30] Question: Can you discuss the 2025 guidance and the quality of acquired assets? - Management stated that the guidance reflects flat growth, 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 a focus on high-quality properties regardless of commodity price movements, and noted that consolidation tends to be a net positive for mineral owners [62][67]

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].