Financial Data and Key Metrics Changes - In Q4 2025, oil, natural gas, and NGL revenues totaled $76 million, with run rate production at 25,627 BOE per day, exceeding guidance [9] - The Q4 distribution was declared at $0.37 per common unit, a 6% increase from Q3 2025, with total distributions for the year amounting to $1.60 per common unit [5][10] - Adjusted EBITDA for Q4 was reported at $64.8 billion, with cash G&A expenses at $2.63 per BOE [9][10] - Proved developed reserves increased approximately 8% in 2025 to nearly 73 million BOE [5] Business Line Data and Key Metrics Changes - The company reported strong organic production growth in Q4, with an active rig count of 85, representing a 16% market share of U.S. land rigs [5] - The line of sight wells exceeded the number needed to maintain flat production, indicating resilience in production levels [5] Market Data and Key Metrics Changes - The company maintains a conservative balance sheet with approximately $441.5 million in debt outstanding and a net debt to trailing twelve-month Adjusted EBITDA ratio of about 1.5 times [11] - The company has approximately $183.5 million in undrawn capacity under its secured revolving credit facility as of December 31, 2025 [11] Company Strategy and Development Direction - Kimbell Royalty Partners aims to be a leading consolidator in the fragmented U.S. oil and natural gas royalty sector, which is estimated to exceed $650 billion [12] - The company is focused on diversifying its portfolio of high-quality royalty assets across leading U.S. basins, with a particular emphasis on the Permian Basin [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing development and stability of production, with guidance for 2026 production remaining unchanged at 25,500 BOE per day [12] - The company anticipates significant growth opportunities from the development of the Woodford Barnett area, which is expected to drive production growth without additional costs [39][42] Other Important Information - The company redeemed 50% of the Series A Cumulative Convertible Preferred Units in 2025, simplifying its capital structure and lowering the cost of capital [4] - The company has seen a favorable dynamic in the MidCon area, with recent consolidation and improvements in gas and NGL prices [20] Q&A Session Summary Question: Regarding 2026 guidance and expected production cadence - Management indicated a relatively stable production cadence for 2026, acknowledging the unpredictability of development [18] Question: Competitive landscape for M&A post-industry consolidation - Management highlighted their ability to target meaningful deals in the $100 million-$500 million range across various basins, positioning them competitively [19] Question: Increase in net line-of-sight maintenance well assumption - Management explained that the increase was due to the acquisition of high upside properties, leading to a modest increase in maintenance levels [26] Question: Addressing net debt and mezzanine equity - Management anticipates redeeming some mezzanine equity in the latter half of the year while balancing cash interest expenses [30] Question: Natural gas and NGL realizations - Management provided insights on seasonal differentials, noting that natural gas realizations increased from 18% to 24% in Q4 [35] Question: Impact of Waha price inflection in 2027 - Management expects significant improvements in differentials and production growth from the continued development of the Woodford Barnett area [39]

Financial Data and Key Metrics Changes - Kimbell Royalty Partners reported total revenues of $76.8 million for Q3 2025, with adjusted EBITDA of $62.3 million [8][9] - Production averaged 25,574 BOE per day, reflecting a 1% organic increase over Q2 2025 [4][5] - Cash G&A expenses were $5.9 million, equating to $2.51 per BOE, which was below the midpoint of guidance [8][9] Business Line Data and Key Metrics Changes - The company’s production base is diversified and low-decline, with a strong performance despite a general slowdown in the U.S. oil and natural gas sector [4][5] - The active rig count remains strong at 86 rigs, representing a 16% market share of U.S. land rigs [5] Market Data and Key Metrics Changes - The company noted a favorable environment for natural gas, with prices above $4, which is expected to contribute positively to production growth [16][42] - The Mid-Continent and Haynesville areas have shown acceleration in activity, benefiting from a higher gas cut [16][42] Company Strategy and Development Direction - Kimbell aims to be a leading consolidator in the oil and natural gas royalty sector, focusing on long-term unit holder value [6] - The company maintains a conservative balance sheet with a net debt to trailing 12 months consolidated adjusted EBITDA of approximately 1.6 times [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining flat or slightly increasing production despite industry challenges, citing strong rig activity and a diversified portfolio [10][32] - The company is optimistic about the long-term demand for U.S. energy and its position to benefit from this trend [10] Other Important Information - A cash distribution of $0.35 per common unit was declared for Q3 2025, with approximately 100% expected to be a return of capital [8][9] - The company reaffirmed its financial and operational guidance ranges for 2025 [9] Q&A Session Summary Question: Insights on macro conditions and production stability - Management highlighted steady production from their portfolio and noted that rig activity has remained relatively flat, providing confidence in maintaining production levels [12][13] Question: Activity in Mid-Continent and Haynesville - Management reported strong activity in the Mid-Continent, benefiting from higher gas prices, and emphasized the importance of a diversified portfolio [16] Question: Marketing and other deductions expense fluctuations - Management indicated that the recent increase in marketing costs was due to production growth in the Mid-Continent and suggested a return to historical averages in a normalized environment [17] Question: Maintenance level for production stability - Management confirmed that the maintenance level of 6.5 wells is due for an update and is expected to decrease, enhancing confidence in production maintenance [21][24] Question: M&A landscape and opportunities - Management noted that the removal of competitors from the market could create opportunities, but emphasized a disciplined approach to M&A, focusing on larger, more impactful acquisitions [25][26] Question: Growth potential in gas demand - Management expressed caution about making multi-year projections but acknowledged the potential for significant growth in natural gas production if favorable market conditions materialize [41][42] Question: Organic mineral acquisition opportunities - Management stated that they prefer larger, more mature acquisitions rather than small ground game acquisitions, focusing on building relationships for future opportunities [46][47]