Kimbell Royalty Partners, LP Q4 FY2024 earnings call

• Kimbell had a strong year with growth in production, revenue, and EBITDA, including from a prior year acquisition.
• Fourth quarter drilling activity was strong with 91 rigs (16% market share in Lower 48).
• Line of sight wells were well above maintenance needs.
• 2025 saw a $230 million acquisition, a successful equity offering, and 2025 guidance with midpoint production at 25,500 BOE per day.
• Balance sheet was conservative with net debt to trailing twelve-month consolidated adjusted EBITDA of ~0.8 times.
• Recognized 8-year anniversary of IPO and thanked team, board, and advisers.

In the fourth quarter, oil, natural gas, and NGL revenues totaled $69.1 million (excluding acquired production). Including acquired production, record run-rate production was 25,946 BOE per day. Fourth quarter consolidated adjusted EBITDA was $59.8 million (excluding acquired production). The company announced a cash distribution of $0.40 per common unit for the fourth quarter, with approximately 100% expected to be considered a return of capital. At December 31, 2024, debt outstanding under the secured revolving credit facility was approximately $239.2 million, with undrawn capacity of $310.8 million.

• 2025 guidance includes incremental production from latest acquisition, with midpoint daily production at 25,500 BOE per day (record high).
• Confident in robust development due to rig activity on acreage, especially in Permian Basin, and line of sight wells exceeding maintenance well count.

Q: Are there particular basins where you're seeing an abundance of opportunity to add acreage?

A: Look across US, Permian has most consolidation, but opportunities across US; no specific basin singled out.

Q: How are regulatory changes affecting you?

A: New administration supportive of domestic energy output, which benefits as mineral owner.

Q: What led to 2025 guide below pro forma fourth quarter run rate?

A: Guidance is conservative, reflects flat growth, inventory and rig activity strong.

Q: Thoughts on quality of acquired assets?

A: Acquired assets are wonderful, have continuous drilling clause with Conoco.

Q: Plans to redeem preferreds?

A: Plan to take out about half of Apollo pref in May, on track; acquisitions considered for financing.

Q: Impact of M&A on business?

A: Competition rare in certain ranges, consolidation generally net positive for mineral owners.

Q: Opportunity set for M&A?

A: Focus on $100 million+ deals, opportunity set grows as mineral space consolidates.