Core Insights - Kimbell Royalty Partners (KRP) offers an attractive dividend, appealing to investors due to the nature of royalty companies receiving payments "off the top" without typical upstream risks [1] Company Overview - KRP operates in the oil and gas sector, which is characterized as a boom-bust, cyclical industry, requiring patience and experience for successful investment [1] - The company does not control the pace of development, which is a common trait among royalty companies [1] Investment Strategy - The investing group Oil & Gas Value Research, led by a retired CPA with an MBA and MA, focuses on under-followed oil companies and out-of-favor midstream companies that present compelling investment opportunities [1] - The group facilitates discussions among oil and gas investors through an active chat room, allowing for the exchange of recent information and ideas [1]

Market Outlook - The job market in America is a key factor for stock performance, with expectations that stocks will continue to rise as long as it remains stable [1] Investment Strategy - The investment strategy includes a significant allocation to gold, cash, and high-growth stocks, indicating a diversified approach [2][6] - Gold is viewed as a long-term cyclical asset, with recent macroeconomic factors such as declining Fed rates and geopolitical issues contributing to its value [3][4] Asset Correlation - Bitcoin and cryptocurrencies are not seen as replacements for gold, as they have different market behaviors and correlations, particularly with tech stocks [5][6] Key Holdings - Palantir is highlighted as a major holding, with strong revenue and earnings growth, despite its high valuation [7] - Meta has experienced volatility but remains a long-term investment, with recent stock weakness viewed as an opportunity to buy more shares [8][11] - Texas Pacific Land (TPL) is noted as a smaller but significant holding, operating as a royalty and landowner company primarily benefiting from oil and gas production [12][14]

CORPORATE PRESENTATION OCTOBER 2025 1 PrairieSky Royalty Snapshot TSX PSK $6.4 Billion Enterprise Value(1) Balance Sheet Strength 0.6x D/EBITDA(2) Sustainable Annual Dividend $1.04 Per Common Share Paid Quarterly Oil & Liquids of YTD 2025 Royalty Production Revenue $2.4 Billion Returned to Shareholders since IPO 18.5 Million Acres of Royalty Lands 7% Growth In Royalty Oil Production, YTD 2025 Canada's Largest Portfolio of Fee Simple Mineral Title (1) Based on 232.7 million common shares and the closing shar ...

Financial Data and Key Metrics Changes - The company reported a strong start to 2025, with revenues increasing to approximately $44 million, representing a 20% sequential increase and a 131% year-over-year growth [9] - Adjusted EBITDA for Q1 was $38.8 million, reflecting a sequential increase of 221% year-over-year, with an adjusted EBITDA margin of 88% [10] - Free cash flow was approximately $15.8 million, with a free cash flow margin of 36%, although there was a quarter-over-quarter compression due to higher accounts receivable [11] Business Line Data and Key Metrics Changes - Resource sales and royalties increased by 118%, driven by increased brackish water sales and royalty volumes from newly acquired acreage [9] - Surface use royalties and revenues increased by 3% sequentially, supported by a 72% sequential increase in surface use royalty volumes [10] - Oil and gas royalties declined by 24% sequentially due to a decrease in net royalty production, with volumes falling from 11.99 BOE per day in Q4 2024 to 9.23 BOE per day in Q1 2025 [10] Market Data and Key Metrics Changes - Non-oil and gas royalty revenue streams accounted for approximately 92% of overall revenue during Q1, up from approximately 88% in the previous quarter [5] - The company continues to see strong demand for water handling infrastructure in the Delaware Basin, which is a key driver of business through its affiliate company Waterbridge [6] Company Strategy and Development Direction - The company is focused on advancing its active land management strategy in 2025, with strong growth driven by the acquisition of the Wolfbone Ranch [7] - The Wolfbone Ranch contributed to a greater than 70% quarter-over-quarter increase in produced water royalty volumes, underpinned by a minimal annual revenue commitment of $25 million for each of the next five years [8] - The company aims to maintain a strong balance sheet and pursue value-enhancing land acquisitions as part of its capital allocation priorities for 2025 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model, emphasizing that the majority of revenue streams are insulated from oil and gas price volatility [4] - Despite macroeconomic volatility, management has not observed any changes in production expectations from major customers, indicating a stable demand for services [16] - The company anticipates continued growth in produced water handling, particularly in core areas where demand remains strong [22] Other Important Information - The Board declared a dividend of $0.10 per Class A share, payable on June 19 to shareholders of record as of June 5 [11] - The Speedway pipeline project is expected to provide significant cash flow once operational, with an anticipated capacity of up to 500,000 barrels a day [18] Q&A Session Summary Question: Impact of Permian activity levels on produced water handling growth - Management stated that the majority of the business is insulated from commodity price exposure, with 92% of revenue from non-mineral royalties, indicating a strong position despite potential production slowdowns [15] Question: Demand for the Speedway pipeline and its growth impact - Management indicated that the pipeline could generate approximately $30 million a year in cash flow once operational, with initial payments expected in the fourth quarter [18] Question: Update on data centers in West Texas - Management noted that traction remains strong, with ongoing discussions about power generation needs in West Texas, which could benefit the company [25][27] Question: Growth in produced water volumes across the basin - Management confirmed that water growth is expected to eclipse oil growth in core development areas due to deeper intervals and flatter PDP declines [32] Question: Desalination opportunities and Waterbridge's perspective - Management highlighted ongoing pilot projects with Five Point and the potential for desalination efforts to be economically beneficial, although feasibility at scale is still being evaluated [35][36]