Kimbell Royalty Partners LP : Summer 2025 Investor Presentation
KRP
Published on 05/08/2025 at 07:23
Summer 2025 Investor Presentation
1. Company Overview and History
Kimbell Overview
Kimbell is a pure play mineral company offering a unique 15.2% annualized cash distribution yield(1)
Company Overview
Investment Highlights
High Quality, Diversified Asset Base
14+ years of drilling inventory remaining(3)
Shallow PDP decline rate of approximately 14%(4)
Net Royalty Acre position of approximately 158,350 acres(2) across multiple producing basins provides diversified scale
Attractive Tax Structure
Approximately 70% of the distribution to be paid on May 28, 2025 is estimated to constitute non-taxable reductions to the tax basis of each distribution recipient's ownership interest in Kimbell, and should not constitute dividends for U.S. federal income tax purposes(5)
Prudent Financial Philosophy
Net Debt / TTM Adjusted EBITDA of 0.9x as of 3/31/2025
Actively hedging for two years representing approximately 15% of current production
Significant insider ownership with approximately 9% of the company owned by management, board and affiliates ensures shareholder alignment(6)
Positioned as Natural Consolidator
Kimbell will continue to opportunistically target high quality positions in the highly fragmented minerals arena
Significant consolidation opportunity in the minerals industry with approximately $719 billion(7) in market size and limited public participants of scale
Provides ownership in diversified, high margin, shallow decline assets with zero capital requirements needed to support resilient free cash flow
Interests in over 131,000 gross wells across over 17 million gross acres in the US, including highest growth shale basins and stable conventional fields(2)
~98% of all onshore rigs in the Lower 48 are in counties where Kimbell holds mineral interest positions(2)
Since IPO in 2017, Kimbell has completed over $2.0 billion in M&A transactions, grown run-rate average daily production by over 8x, and returned 68% of $18.00/unit IPO price via quarterly cash distributions
Kimbell Mineral and Royalty Assets
Cash distribution yield reflects annualized Q1'25 distribution. Unit price calculated as of 4/29/2025.
Well count, M&A, and acreage numbers include mineral interests and overriding royalty interests.
Based on estimated major and minor upside net locations of 91.42 divided by estimated 6.5 net wells completed
per year to maintain flat production. See pages 8-10 and 36 for additional detail.
Estimated 5-Year PDP average decline rate on a 6:1 basis.
Kimbell believes these estimates are reasonable based on currently available information, but they are subject to change, including with respect to prior quarters.
As of 3/31/25. Does not include Kimbell's Series A preferred units on an as-converted basis.
Midpoint of market size estimate range. Based on production data from EIA and spot price as of 4/10/2025. Assumes 20% of royalties are on Federal lands and there is an average royalty burden of 18.75%. Assumes a 10x multiple on cash flows to derive total market size. Excludes natural gas liquids ("NGLs") value and overriding royalty interests.
Q1 2025 Highlights - Record Performance
In Q1'25, Kimbell generated record Oil, Natural Gas and NGL Revenues, record Consolidated Adjusted EBITDA, and record Cash Available for Distribution
Q1'25 Snapshot
Q1'25 Run-Rate Revenue by Basin(1)
Q1 2025 run-rate average daily production of 25,501 Boe/d(1)
Including a full Q1 2025 impact of production from Kimbell's $230 million acquisition from a private seller (the "Acquired Assets"), which closed on January 17, 2025 with an effective date of October 1, 2024, run-rate production was 25,841 Boe/d, exceeding the mid-point of guidance
Record Q1 2025 run-rate oil, natural gas and NGL revenues of $88.6 million(1)
Q1 2025 net income of approximately $25.9 million and net income attributable to common units of approximately $17.9 million
Record Q1 2025 consolidated Adjusted EBITDA of $75.5 million
Cash distribution of $0.47 per common unit, up 17.5% from Q4 2024
On May 1, 2025, the borrowing base and aggregate commitments on Kimbell's secured revolving credit facility were increased from $550 million to $625 million
On May 7, 2025, Kimbell redeemed 50% of its Series A Cumulative Convertible Preferred Units funded by a draw on the upsized credit facility
$88.6 mm
Q1'25 Run-Rate Production by Basin(1)
Capitalization Table(2)
Common Units Outstanding
93,396,488
Class B Units Outstanding(3)
14,491,540
Total Units Outstanding
107,888,028
Unit Price
$12.34
Market Capitalization
$1,331,338,266
Total Debt
$298,996,274
Cash and Cash Equivalents(4)
(25,000,000)
Net Debt
$273,996,274
Series A Cumulative Convertible Preferred Units
$325,000,000
Enterprise Value
$1,930,334,540
Q1 2025 Consolidated Adjusted EBITDA
$75,533,036
TTM Consolidated Adjusted EBITDA(5)
$290,566,705
Net Leverage Ratio
0.9x
Tax Status:
1099-DIV/ No K-1
Annualized Cash Distribution Yield(6)
15.2%
BakkenRockies
Shown on a 6:1 basis. Q1'25 run-rate revenue excludes approximately $1.3 million of prior period revenue and related production recognized in Q1'25.
Unit price and yield calculated as of 4/29/2025. All other financial and operational information are as of
3/31/2025.
A Class B unit is exchangeable together with a common unit of Kimbell's operating company for a KRP common unit.
In accordance with Kimbell's secured revolving credit facility, the maximum deduction of cash and cash equivalents to be included in the net debt calculation for compliance purposes is $25 million.
Please reference page 37 for consolidated adjusted EBITDA non-GAAP reconciliation.
Reflects the annualized Q1'25 distribution.
Disclaimer
Kimbell Royalty Partners LP published this content on May 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2025 at 11:22 UTC.