Kimbell Royalty Partners, LP Q2 FY2025 earnings call

• Reported solid second - quarter results with strong cash flow, continued debt paydown, and lower cash G&A cost per BOE. • Rig count remained robust, with market share of overall U.S. land rigs actively drilling increasing to 17%. Despite the overall U.S. land rig count dropping 7% quarter - over - quarter, Kimbell's rig count only dropped 2% to 88 rigs actively drilling on its acreage; Permian Basin rig count increased by 4 rigs, Haynesville increased by 5 rigs, while Mid - Con had a decline in drilling activity. • Net DUCs increased by 9% quarter - over - quarter, led by the Permian Basin. • Announced a $0.38 distribution per common unit and remain encouraged by opportunities to grow and expand the industry - leading portfolio of assets for long - term unitholder value.

Oil, natural gas, and NGL revenues totaled $75 million in the second quarter, with run rate production at 25,355 BOE per day. Second quarter general and administrative expenses were $9.6 million, with $5.4 million being cash G&A expense, equivalent to $2.36 per BOE. Total second quarter consolidated adjusted EBITDA was $63.8 million.

• Affirmed financial and operational guidance ranges for 2025, maintaining the previously stated outlook.

Q: Tim Rezvan inquired about the priority of creating a partnership like a SPAC.

A: Robert Davis Ravnaas stated that they continue to explore operator partnerships but it is not at the front of the priority list; they have a dozen - plus years of inventory for organic growth and continue to see opportunities in M&A.

Q: John Annis asked about the resilience of rig activity across Kimbell's acreage.

A: Robert Davis Ravnaas attributed it to having a higher - quality and diversified asset base and an active acquisition program that has been ongoing for 25 years.

Q: John Annis followed up on natural gas growth.

A: Robert Davis Ravnaas said natural gas production is lumpy; if natural gas as a commodity continues to outperform oil, they would expect a slightly gassier mix in the production profile going forward, but nothing substantial yet.

Q: Noah Hungness asked about changes in the M&A market in terms of valuations.

A: Robert Davis Ravnaas said that Permian M&A packages are less due to expecting lower cash flow multiples in a less - growth environment.

Q: Noah Hungness asked about the low G&A.

A: Matthew Daly said it was mainly due to lower professional fees this quarter and that for the rest of the year, the lower end of the guidance should be targeted for modeling purposes.