Kimbell Royalty Partners (KRP) 8-K Kimbell Royalty Partners, LP Announces $231 Million Midland Basin Acquisition in Cash and Unit Transaction1

Exhibit 99.2

Pro Forma Statement of Operations

	Year Ended December 31, 2023
							Transaction
				Historical			Accounting				Pro Forma
	Historical			LongPoint			Adjustments				(excluding TGR			TGR			Pro Forma
	Kimbell			1/1/23 - 6/30/23			LongPoint				Redemption)			Redemption			Combined
								Note 1							Note 2
Revenue:
Oil, natural gas and NGL revenues	$	267,584,785		$	32,745,000		$	13,716,633		1a	$	314,046,418		$	-		$	314,046,418
Lease bonus and other income		5,594,855			16,862,000			-				22,456,855			-			22,456,855
Loss on commodity derivative instruments, net		20,888,972			-			-				20,888,972			-			20,888,972
Total revenues		294,068,612			49,607,000			13,716,633				357,392,245			-			357,392,245
																		-
Costs and expenses																		-
Production and ad valorem taxes		20,326,477			3,105,000			-				23,431,477			-			23,431,477
Depreciation and depletion expense		96,477,003			5,277,000			10,643,660		1b		112,397,663			-			112,397,663
Impairment of oil and natural gas properties		18,220,173			-			-				18,220,173			-			18,220,173
Marketing and other deductions		12,564,619			2,207,000			(703,262	)	1c		14,068,357			-			14,068,357
General and administrative expense		35,677,851			-			-				35,677,851			-			35,677,851
Consolidated variable interest entities related:																		-
General and administrative expense		927,699			-			-				927,699			(927,699	)		-
Total costs and expenses		184,193,822			10,589,000			9,940,398				204,723,220			(927,699	)		203,795,521
Operating Income		109,874,790			39,018,000			3,776,235				152,669,025			927,699			153,596,724
Other income (expense)																		-
Interest expense		(25,950,600	)		(466,000	)		(8,363,022	)	1d		(34,779,622	)		-			(34,779,622	)
Loss on extinguishment of debt		(480,244	)		-			-				(480,244	)		-			(480,244	)
Other Income		(180,765	)		284,000			-				103,235			-			103,235
Consolidated variable interest entities related:																		-
Interest earned on marketable securities in trust account		3,508,691			-			-				3,508,691			(3,508,691	)		-
Net income before income taxes		86,771,872			38,836,000			(4,586,787	)			121,021,085			(2,580,992	)		118,440,093
Income tax (benefit) expense		3,766,302			170,000			(199,088	)	1e		3,737,214			(112,027	)		3,625,187
Net Income		83,005,570			38,666,000			(4,387,699	)			117,283,871			(2,468,965	)		114,814,906
Distribution and accretion on Series A preferred units		(6,310,215	)		-			-				(6,310,215	)		-			(6,310,215	)
Net income and distributions and accretion on Series A preferred units attributable to noncontrolling interests in OpCo		(16,464,890	)		-			-				(16,464,890	)		-			(16,464,890	)
Distribution on Class B units		(88,786	)		-			-				(88,786	)		-			(88,786	)
Net income attributable to common units of Kimbell Royalty Partners, LP	$	60,141,679		$	38,666,000		$	(4,387,699	)		$	94,419,980		$	(2,468,965	)	$	91,951,015
Net Income per unit attributable to common units of Kimbell Royalty Partners LP
Basic	$	0.93															$	1.50
Diluted	$	0.91															$	1.34
Weighted average number of common units outstanding
Basic		66,595,273																66,595,273
Diluted		93,057,731																93,057,731

NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

Note 1 - LongPoint Transaction Accounting Adjustments – Statement of Operations

The unaudited pro forma statement of operations has been adjusted to reflect the assets acquired from the Acquisition and has been prepared for informational purposes only. The results of operations and financial position of LongPoint are included in the consolidated financial statements of Kimbell after September 13, 2023, the Closing Date of the LongPoint Acquisition (the "Acquisition").

a) Represents historical royalty income derived from the acquired mineral and royalty interests for the period July 1, 2023, through September 13, 2022, totaling $13.7 million.

b) Represents the increase in depletion expense computed on a unit of production basis following the preliminary purchase price allocation to proved oil and natural gas properties, as if the Acquisition was consummated on January 1, 2023. Of the $455.8 million estimated fair value of proved oil and natural gas properties acquired, only $198.2 million were subject to depletion in the period presented.

c) Reflects the removal of $0.7 million of historical direct marketing expense activity related to LongPoint that is unrelated to the acquired oil and gas properties.

d) Represents the increase to interest expense resulting from the interest on the additional borrowings under the Partnership’s existing credit facility that were used to finance the Acquisition. The Partnership’s credit facility bears interest at SOFR plus a margin of 3.5% or the ABR plus a margin of 2.50%. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2023 used the weighted average interest of 8.52% on the net outstanding borrowings of $140.5 million. A 1/8 of a percent point increase or decrease in the benchmark rate would not have a material impact on the pro forma interest expense in the period presented.

e) For the year ended December 31, 2023, reflects estimated incremental income tax benefit associated with the Partnership’s historical statement of operations, using an effective tax rate of approximately 4.34% on net earnings from the Acquisition.

Note 2 - Redemption of Kimbell Tiger Acquisition Corporation

On May 22, 2023, as a result of TGR’s inability to consummate an initial business combination, TGR redeemed all of its outstanding shares of Class A common stock included as part of the units issued in its initial public offering. Following such redemption, TGR (along with TGR’s Sponsor, Kimbell Tiger Acquisition Sponsor, LLC) was dissolved in accordance with the terms of its organizational documents. The unaudited pro forma condensed combined statement of operations reflects the TGR redemption as if it occurred on January 1, 2023. The pro forma adjustments include:

· The derecognition of general and administrative expense of approximately $0.9 million for the twelve months ended December 31, 2023;

· The derecognition of interest expense on marketable securities of approximately $3.5 million for the twelve months ended December 31, 2023; and

· The derecognition of income tax benefit of approximately $0.1 million for the twelve months ended December 31, 2023.