KRP - Earnings call transcript Q4 2021 | Kimbell Royalty Partners, LP

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Operator

Greetings and welcome to the Kimbell Royalty Partners Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black with Investor Relations. you and Rick, you, may begin. Thank

Rick Black

XXXX. Operator. Kimbell Royalty you, operational for and on audio on this and February And only webcast also review good of and the through call the section of XXth, the the to results year-end today, page quarter speaks of fourth Welcome everyone. the IR call Partners accessed and XXXX. is being KimballRP.com. can morning, Events financial Thank be This conference to link Presentations Information recorded as call

of So may financial would the Securities or future please, discussion replay, as date that time-sensitive today's expectations the remind provisions of are be listening, advised that the like or any also no XXXX. performance pursuant to forward-looking of any not future information that statements Safe made Harbor of I Reform accurate longer made you be Act Private of reading. statements to or transcript events, statements Litigation historical are including facts, the

Reconciliations assumes update to the forward-looking press at company's distribution. earnings filings nearest We the our making can revise nature measures, These to outside the no including press refer for which today's non-GAAP Management refer and end call, forward-looking are on as EBITDA with obligation publicly results uncertain Exchange part are by of adjusted as will cash to of in release. the also factors, and uncertainties forward-looking detail control. today's differ be materially. as described their the Actual for statements. release may Please risks be statements. to any Securities well GAAP will other of and disclosures company's today's statements and in available Kimbell or Commission. found measures

Royalty I Chairman Chief would and Officer. Partners, Kimbell to the Ravnaas, like Bob. over Now, Executive call Robert turn to

Robert Ravnaas

management Rhynsburger, team, members everyone. you senior Financial including us Matt Blayne quarter Chief Controller. Thank about today's turning good our in President the by call are our you discussion providing the me today to several the in And on our you, call Davis, detail. Ravnaas, morning. of begin more will I financials With our and before joining the through appreciate Rick. Chief and Operating Officer, comments We our morning, over this Daly, to walk Davis Officer, year

performance We are the for new very unit milestones year for This distributable marked per flow including income. records pleased EBITDA, strong multiple with another XXXX. company's very and year in revenue, net Kimbell, adjusted cash production, of

completed facility, base, December, also on accretive the and PDP redemption borrowing preferred the of A We completed reserves the commitment a increased in attractive highly full the acquisition Series elected company's credit and increased stock. our and

the XX perhaps wells drilling In addition, net believe which very of of our we production May, our per completed which detailed in years proud release review most X.X flat. portfolio identified importantly, I'm approximately The at inventory year. and of of remains level

down. credit of out Finally, paid advantage XX% for we pay for distribution, approximately and in paid $X.XX by $XX.X quarterly XXXX, allocating available distributions our million on cash in debt tax facility down

to revenue, quarter, the grass fourth income. natural achieved and and gas, record, liquids, now Turning we natural net oil,

of move operators higher capitalize the strength market United As on States. rigs drilling as and energy low. across and balance company of operators XX continue count cash pricing quarter, on continue activity to fundamentals sheet to in from public global Having more growth complex the we scale. the that, tepid operators had see XX focus XXXX, outpacing drilling rigs sector levels on are is build drilling improve. representing acreage, and the continental our rigs U.S. in energy December XX, to actively Kimbell XX.X% third said of they flow continue up private Tailwinds free commodity and generation. and Inventory do that Rig quickly from share in all

quarter, the excellent the an of to commodity the accelerated upside is commodity quarter royalty end of oil prices, our experienced inflation gas U.S. operators and and do price The participate which contributed entering especially XX% currently and well not our of position were since the recently natural momentum comprised active experienced XX% surging Kimbell a the gas cycle significant upstream rig sectors. XXXX. and to by royalty public positioned fourth has private impacting in cost positively in the particularly inflationary operators second from of sector record we -- half in impacted that companies As natural benefit XXXX in service operational inflation as from surging the the count, we

a future bright for a oil that the XXX As are in The act we at consolidator within will to production of U.S. this U.S. from in We U.S. we gas during see flat royalties to royalty which Canada below XXXX, natural rig the major again over acquisition commentary profile. stringent multi-basin continue a is land that as market oil size data still public roughly sector. that for class and mineral U.S. our still indicate large-scale to believe expertise pre count, consolidation, as we have major enter and once billion levels asset technical be well and early out XXXX. -pandemic, and resources, financial complete EMPs is the the points fit of enormous infrastructure, acquisitions. targets and will with entities innings in in we actively only handful Furthermore, seek all the

very about With years of that, deliver royalty and diversified the rates Our over models of built low for current And was flat now that production of new the to opportunities on to for will the these turn We're call PDP with conditions. expand I'll excited Kimbell come. unit portfolio. decline the to this and the holder view value our the is future Davis. be rather world, past. high-quality, new hyper-growth decline than theme energy investing and stability

Davis Ravnaas

Bob, good everyone. Thanks morning, and

year quarter. fourth pleased both and performance very the We are to report during the record

a also to common Beginning at income are $XX.X trends were flows we a XXXX full-year $X.XX. revenues record guidance. million. Net today was income and record cash record per $XX.X addition, the our providing quarter, or with net of fourth total In the unit. common million, attributable positive we $X.XX cash Based in was distribution and a announced units $XX on quarter, also sustained million a

continue. Since XXXX we down quarters, As from its credit for XXXX, the of distribution of previous cash the in a QX has a XX% cash portion $XX.X by down, its down allocation we and distribution available the for credit allocating to of facility distribution. will approximately the debt revolving done expect projected have expected Kimbell's available utilize million for borrowings XX% upcoming under for facility. strategy company pay its excluding cash of paid down available pay capital an QX May secured portion remaining pay this to outstanding

production at $XX production The the acquisition XXX average of production rate Fourth of natural impact XX XX, prior during $XX.X of Including estimates. QX to closed at per the XXXX, of due outperforming $XX,XXX fourth BOE XXXX, basis, of consisted basis. prices rate the average primarily production. days a quarter, had oil, receive, company new $X.XX on a full prior-period revenues led BOE end XX again, daily XXXX of day. active Mcf million this natural the For sequentially and which the end QX. daily period per $XX.XX. up includes and XX of of barrel up per rigs recognized the day quarter gas, gas barrel from basins, quarter and to from pricing on was fourth were primarily was run per BOE production quarter entitled NGLs, and day, run was liquids XXX recognized per which gas, to of a XX,XXX the company's of the Related wells rate quarter December of quarter to from higher XX by run Permian X.X% QX. This per six XXXX. one on per million for the realized was was Haynesville oil, Xth, per production $XX.XX of fourth The We production $XX.XX reflected which production combined BOE fourth BOE rigs a quarter a natural day

rig in the total XX. U.S. of represents continental XX.X% rig Lower Our drilling for market share count

but of As at gross X.XX drilled, XXX net and properties wells. Kimbell's uncompleted major XXst, December

data As XXX as well not include estimate to on This the minor inventory. a does and our could properties, gross which we acreage. DUC permit day X.XX additional net permits XX% and an add

to compared million G&A, or $X.X fourth million Fourth-quarter side, administrative in quarter, On per cash adjusted or based $X.XX XXXX, in BOE. was were $XX.X non-cash was in $X.X consolidated the G&A BOE. general Unit expense the of prior the quarter. the a EBITDA expense is was which quarter which $X.X expenses of billion, compensation million million per and $X.XX $XX

news million EBITDA fall reconciliation our will of cash $XXX XXXX, facility, Commenting distribution from the were and connection our available to of liquidity, and adjusted You for a secured our and increased in aggregate base further at the balance commitments release. Xth, sheet on December find our on borrowing revolving on re-determination. credit consolidated both end with million $XXX

taxes cash will And under secured full-year trailing capital. and operators XX Had through its credit reflects holders facility. X.X also daily quarter under their We facility. from with fourth which declines cost be further As of do expect to not to instead and of all growth financial revolving of midpoint, of December low production unit approximately a believe be also daily taxes for secured during cumulative credit $XX.X free units are the remaining income XXXX. of covenants quarter including dividend and credit distributions quarter, approximately capacity resting to net XXXX XXXX reducing its full all includes paid guidance approximately expect the its times, of in single-digit compliance guidance, revolving XXXX, with that budgets income the under production $XXX.X of to important, we Kimbell a to quarter EBITDA relative outstanding in material secured at focus We're production common redeemed had that that, in revolving providing a flat A debt have flat preferred will month capital. Kimbell XXXX. We was a XXXX adjusted to amount convertible return most capital XXXX on billion structure undrawn million XXXX we to goal production, had acquired pleased our XXXX in pay facility. roughly federal outstanding XX, considered our substantially Today, Series simplifying debt XXXX, Kimbell fourth of all consolidated production. its

robust offers Kimbell We believe terms in opportunity, advantage it generate confidence of to has global the our distribution current compelling given distributions unit and asset believe detail with base, our years sector oil continued and any for holders a well give returns opportunities as guidance of of broader tax growth. strong in come. superior Tailwinds compelling provides unit ability U.S. us to across generating are their holders. Kimbell's yield, to many company sector to We competitive continues level highly that this as unaware gas investment results and a for for that operational and cash a energy after-tax energy

As to in Bob increases growth modest States longer U.S. much up-cycle continental this rather of last the in in the generation ducks forecasted benefit expected previous this for to of production of believe will new year. from Kimbell in energy in significant investors generating next Kimbell, to goal and way than downside we others focus than to depletion will built inflation, to unlike many lead truly years replace United our operators was investments only with environment said, the serve commodity by long-term in come. which unique significantly is price XXXX cycles, with cost significant value and risk will inflation model. our sector, continue service will transparency cash without many for and this and

led is sector, energy including you saw Kimbell SPAC, the the in the and search Lastly, a million. industry initial has the that, Acquisition to earlier public company New E&P sponsored we Kimbell Tiger unconventional America. target in both ready at York now natural Tiger priced who company questions. Zack offering of month, are Operator, in Exchange, North raising extensive as Juan, approximately by Corporation, conventional operating I'm $XXX reservoirs. this for experience With sure, for intends resources and The Kimbell on all successfully Stock

Operator

you. Thank

John We a will we moment, questions. question-and-answer [Operator Raymond our line James. One while your please, now of from with proceed for question And pull question. session. Instructions]. first conducting comes with be the Freeman Please

John Freeman

guys. Hi,

Davis Ravnaas

Morning, John.

Rick Black

Hey, John.

John Freeman

year obviously you'll The had screaming Do leverage favorable next and or handle commodity we've it got first I just lower, ratio. is question ratio going that XX% sub starts where tied of the XX now that with the ratio we've this that know somehow ratio I number? maintain you the go come payout over ratio payout longer-term, ratio that to should months. the as whatever, you got for environment was goes as that 'XX a that or on given one think times leverage right payout to just it, lower do the is XX think the right assume that to that up or that one

Davis Ravnaas

John, thanks probably board than the that we question. for This more topic that at the is anything level, else. discuss

right the we're year, maintain this going for that XX%. of I duration think you're to

to of in we going cash just an a continue drop the I greater over think that you're create have flow accelerate therefore, that going cash XX% out in time. ratio is leverage pointing is of incremental spot flow downward on amount just to as additional to and

a businesses, a if debt certainly for we think had level times the leverage to Xx less of without for rule what royalty XX you ago, seems business, anything couple I company to maybe a that said asked reasonable. That of an upstream for CapEx years would ago, less E&P to us so X than two perfectly than EBITDA. of obligations would've general appropriate years be kind thumb the mineral used be

just that to I the away happen, and that's be on important I not I zero. too really I trying that us we us little decisions think look changed I the once have less bit one-times. ratio, and that discussion payout ratio to made, once that is all does I happening I we point, increasing too the get even then think best-in-class probably than to see we think at more be that think see said at close governance don't today as and that That so environment, could a E&P of becomes than now board table, to might And it far look down been everything's we're from no one-times as conservative. on the point but at level. get could increasing payout the way a companies,

-- of and of we're vague the investor preference, So issue aware point, at of just I we to so. say best solicit this action course certainly importance feedback but certainly their the that's as that and

John Freeman

that. appreciate I

about production in now that looks once prior know at wells having year a quarter I the in on the without is of -- XQ Again after over that, back recognition like revision the period The was and row where other they years due you've leases you've looks upward at was recognized. to got looking I about outperforming had estimates, quarters XQ'XX, to necessarily thing had prior with the went of loss a of this I this and three all a had was before going like again, 'XX. it this, like I period production it looking last couple

you-all about understand, to into mix certain trying something just I'm coming the capturing better is there which production first that? I guess the am where are reading I that Or that's is too data? the A I've be from? this, there so wouldn't Is time doing done field? And of something just much that

Davis Ravnaas

the muted been an say months, natural drilling we robust. last very have there had would high-interest enterprise. years. units No, some that My over Great in high really through the to, I'll We per over hasn't accountant, couple be particular in we've I nice turn particularly gas no, some to would the Blayne Prior XX substantial no. Haynesville, where And moment. do last Rhynsburger, sense insight a added area in our drilling, it acquisitions of usual. probably

to going starts -- more, kick we're we've to production. a that the we've I would in, have say -- in bit and fluctuations had way little quarterly As of

those up I in decline quarter, a wouldn't high-interest next on X% surprised maybe and X.X% percent, just be So setting to because go or down wells. natural us see a the quarter couple then of

it's have of we've I we've think it. first time. I unconventional a I a additional I mix other point -- don't of in we've think just as any production grown obviously will conservative, well -- right? think part been upward making added do little of out, the a that's you but any all, Because over it bit So revisions Blayne, of methodology, and part is Blayne, assets, been change

So I Blayne, think like thing. that's But a that good to discussion? any add you'd that thoughts

Blayne Rhynsburger

We've of the Yes. question Yes, invested that first John, that's this a knew good say come to question. up. part was comment your to on QX. going I'd I

would back got dating that's theme the responsibility we reason operators like happened Mexico have that Specifically, in couple pointed quarters, and resources spend. of seen who in where New been XXXX, invested quarters us find on And the production few you Lea wells on last land with paid have is had the County, we've like really, say we we to personnel that's EOG we last quarter I side this that is the a X mentioned unnecessarily out. sole to their

I reason our the mentioned, accruals, we we couple spend think years then say get And of off top to what the forward. of of you'll in since On continue we go and so really that invested and main for where are paid that that we've it's us to also see in out Davis that every but quarter conservative personnel hired revenue is I a ago shouldn't would be. going

John Freeman

market I weeks. these all peripheral, stock happy guys rewarding few great. last a that, your appreciate very finally, and see the That's to really

So hopefully that continues. Thanks again, guys.

Davis Ravnaas

questions. Thanks Grateful for John. to you, the

Robert Ravnaas

thanks, Yes, John.

Operator

Whitfield from Stifel, of proceed your question. line Derrick the comes question please next with Our with

Derrick Whitfield

good And all. to morning Thanks.

Davis Ravnaas

Derrick. Hey,

Derrick Whitfield

mineral guys characterize late the the landscape in both including larger greatest for the year. and How a larger, and competitive space, few you Over opportunities, for do the present current last the and smaller announced one where you last at see you closed months, [Indiscernible]. opportunity seen we've would few deals the

Davis Ravnaas

start I think this hear by difficult from from question. our Great I I'll saying from peers, just you'll guess the not M&A, standpoint. us, been really public out that has

the pay a I of dictates their assets. folks think which some us us sell that at we all can And these undervalued. sector obviously are as amount private of to

probably by have it year, including think I co larger we call size. let's peers three transactions, last in did our ones over, right, and million they're large ourselves, you're larger $XX mean from So some

disappointing on last -- frankly; was year front. think I M&A I the think

of and But we trading I mean, the XX% Derrick, you're we're doing to does. what the cash stock the to think XX%, way numbers our challenge, aware, I here, the as free all in acquisitions. more peers hope be keenly at mastering price XX% flow depending yield on what?

or can not that's operators buyers. are where you're of on to, wherever cash and basis a too when times off flow so, are low distributed the for day-to-day, obviously, some And for trading seven far we cash other free the from so on you pay peers private our yield flow a fully the we puts trading that that multiple pretty private -- at

been higher the just that's is of we'd than really has hoped. the cost capital challenge So been

to reality bar time, that public as to over the think company get higher. go is I continues the a just and higher mineral

public $XXX in to $XXX they of So I portfolios think or to one $XXX look that of million exits to $XXX to the, entities. -- to going in it a for have merging million are the these involve sorry, lot call range, let's

I think if of don't our ourselves a have in to even of I take in like of deal for that that would issue they're any stock done. -- to stock any to could, substantial cash. I don't peers the or amount going we to order think amount get that think

NGP be to we've past. lot going been the great The it's half on NCAP, deal their team that with that partnership, XXX% sponsors. that as have going stock that stock. right substantial years stock. do a and with a haymaker in able out a stock portion. deal is accept that the we management We are partnership great We've fortunate we did to was with -- this to continue We on be was think finding willing ago to private currency. about deal that been a Phillips, side and did I a a had it So did We to big successfully partners of the

that So will I trend continue. think

opportunity larger set the think I biggest acquisitions. is the

get off you dollar that. over think now equity there's say liquidity trigger I those not getting get to I in million at. to I and the great exceptions grow. bigger. are to any very -- higher There XX There think deep-pocketed right scale going to mean, looking we're fewer M&A. stupid. I the accretive deals challenging anything just do something that spot marketplace done. amounts, We're I the to certainly and don't to capable think but to economies think to are the once need want company for in just do mineral on, we of are and the to realize and portfolio something companies that's want do more that is biting start right and high We're people bar to fewer deals. pull continue private and we a some that private want chunks. isn't increase that not buyers, We becomes We go there's of float we're to But now.

something on off, I opposed say think does that successfully happen that, the I'd to but challenging to be if the going pull to So end as it's it's things smaller. larger

a you in competition that still see the Permian. of smaller particularly the deals, think in I lot

Derrick Whitfield

with complete quality. count, rig guys makes well And my your that statistics, historically share it, XX, your Got have and for to a certainly you performed testament asset Slide sense. market that's follow-up, referencing

outperforming you're QX explain in maybe potentially market anything data remains view and you're slight the measures that there is you're in where QX. have where strong, seeing the dip you on at underperforming? share would While areas And a do the

Davis Ravnaas

did question. over say the outstanding. have to had. latter question. QX, a the quarter have reality you where on best The we we're royalty board my never QX, like is was drop was a and a in the to I'd that Production see across good ever great quarter turn results. We little production. like of example, you for I'll That's a with business we've on a look, that bit team in

And some in I do scream theme a sequential get think on go very higher flat We seeing and production jump that's and there's start Blayne, again, you line of focusing wouldn't lower. some in? would more QX some coming Wells near any Big that that's some term wells than But production to going here want on data going more see do rates on have cash quarter, flow the comparison. sight that anything for growing anybody tough, other board, to we you're was going say dictating setting lumpiness major to we're across operators I hope is to quarter-over-quarter with the on maintain to then up to to high-interest we it's discipline for say matter, on keeping slightly. there that knock-on

Blayne Rhynsburger

some Yeah, I've commentaries. got

Davis Ravnaas

On maturities? Terrific.

Blayne Rhynsburger

Yes.

So it and or basically, count XX.X%, roughly between that rig In going it market back to QX quarter. was call every has QX, QXXX, on XX% share was you in XX% XX, see ranged the it XX.X%. Slide

up So that into should XX% rig based market go up. of XX% to count therefore, QX, The again, rig XX% Today, Baker the at to share. the share Hughes the is rigs. to rig maintain XXX, rig at expect was on year-end count of market going we as would today, XXX XX count XX% it's our and count

we through to during back we are to having to even it. drill been private drilling operators is count of aggressive they're leases. have public, we when XX% further, was to operators -- scale, because pandemic our that terms reading the most have on the they're private operators private having XX had nice oil XX% In hold drill continuously any into have about the at trading drilling the rig thing it build

having as has more expect -- the privates the be it to count. which on mix time, is rig we actually, in And private equal like rig stability and private public grow we to have, the we over count, all the of equity terms though back, well. So these especially nice been of

Derrick Whitfield

point. Great

within the mineral helpful have as highest the might the actually well. time. guys your space thanks on But You side guys for private and very

Davis Ravnaas

Thanks, Derrick. question. Good

Robert Ravnaas

you. Thank Yes.

Operator

comes question Credid. line next if Our from Christopher Baker the with

Christopher Baker

morning. good Hey,

Davis Ravnaas

Chris. Morning,

Christopher Baker

Most of my -- questions have

Robert Ravnaas

Chris. Hey,

Christopher Baker

you doing? How

Robert Ravnaas

Good.

Christopher Baker

on have been my maybe I of in of way. ask of a that you different you in Most around today? oil the to opportunities, gas opportunities color just questions see wanted M&A focused answered, a in terms Any just bit versus but of front

Davis Ravnaas

you else versus I I'll benefit philosophy everybody know just gas of reiterating listening. just for So oil. by start but the on reiterating know our which

So we since always the agnostic in back to are we commodity. we quality We've What way been is XXXX. value. business for that look and started

we natural rather investors. higher Permian return deal the gas or a down Eagle and Haynesville, in deliver So that a the get our in can deal the We'd to get do to an oilier Ford.

emphasize Just liquids.

capital. most for looking way deploy always that we're So can we efficient what's the

say say I'd in I such the we've months, gas prices last -- a little bit Haynesville, seen the and way over or other. say come I were if more think I mixed seeing have activity natural acquisitions look say pretty more as as today, XX one the they I the guess look over there's -- levels not a I'd ability, up Bob, starting that as we're but Rand split or actively group. to depressed see might from useful input, understandably, anything we is at at action ask the time, our it's set than opportunity opportunities, between I'd or I pretty fair don't well. Matt would else of you-all's I'm And as add, know commodities I'd overall. I'd it's a evaluating, anybody say say -- for I'd I'd pipeline that

Robert Ravnaas

I'd can based - more packages, and So, underwrite say we're yeah. fortunately seeing in, complex multi multi-basin which -- And more that we also are specialty our

Davis Ravnaas

Great point.

Christopher Baker

That's to good see.

Robert Ravnaas

Bob. The this other -- is

Bob, this. to still but that that of to and without saying tremendous you it on I amount flow, yet small to mean both we large see this it over add Didn't like haven't goes talk phone call Sorry. just deals. said we continue deal to

we're the deals currently is pipeline, that through we're on XX So And year. all true evaluating the deals. probably to XX

deals, evaluating year, large shows announced market. selectively We are. constantly are deals, how we're it and deal So are one but at in the last we looking

Christopher Baker

as think color, great implications thank continued the strategic great a a whole? we see Kimbell the for Tiger should just on That's broader front. to follow-up, progress And Kimbell the as How you. about

Davis Ravnaas

that Chris. up. for teeing Sure, Thanks

So detail. I'll we've We the talk that priced this more go SPAC. into more, can about finally given

goal find cash valuation So business broad. to The the mandate at that's generative a a very attractive. is flow is

holders So we successfully windfall for we're Chris, that. real do successful on nice able as you're work. generates to in flows. that unit There's to cash extent a a how And obviously, aware, real that De-SPAC-ing, the in KRP stacks company, the are very event

directly we'd investors. nature of that's find level first what line What whereby operated it a the in that an So even or form sight. to relationship can are set our love really strategic on more with for perhaps assets is asset operating for we business have to wonderful a do importantly from time it what is a of means, means developmental

mineral mineral of So there that to a lot many That ourselves business risks things, control. of model wonderful things apply are our the wonderful obviously the about lack many, obviously. peers, biggest developmental all is of one certainly the to of but

you remind typically or royalty leases lower buy of we predictability sister net relationship to of struck, that either high we revenue one conventional Company assets extent the convinced. were to with from out cash love that at minerals So We that benefit I'll whereby those properties them is rates. operator and carve that interest could we much a an flows, love the with less, or alongside override we defect could a an form

amount these effectively as nets uncommon to born. or I So they today really in when of the have see producing was wonderful it's higher not fields number of some same of were been that hydrocarbons XX.X%

should able we an up operator let's new a be strategic alongside override opens If is, that ability which cost capital more company things, mineral national it direction obviously, to of to joint a a can. an bid for could raise whole be cost in capital of buy competitive the can achieve we which lower scale, could we an -- do a because operator. Kimbell, at an as equity So,

grow just share and Linus drilling grail for that expand. the such asset, stream allows the company. revenue holy but development And you just way if way, would have denigrate by out to the the oh, of the could so the that net economics, a that doesn't be site outcome us of And in

It's going very So that's environment what always excited de be challenging, the about. to hard. is we're -stacking

set to hard but on we pretty, we're that for and be successful. it front all there, the as want can just could if So we're us working exciting possibly of expectation as pretty

Christopher Baker

the guys. color, appreciate I Great,

Davis Ravnaas

you. Thank

Operator

please next line our question Schultz TJ the And with RBC, questions. your comes proceed of with from

TJ Schultz

morning. Hey, follow-up. just Maybe good a

Davis Ravnaas

TJ. morning Good

TJ Schultz

you are on. How doing

Davis Ravnaas

good. Doing

TJ Schultz

On the Tiger deal.

you mean, out. of pause? right and M&A potential M&A until So I you or get Royalty now Kimbell do activity

Davis Ravnaas

No.

TJ Schultz

Okay.

Davis Ravnaas

no. no, No,

very So important.

once done changes nothing that same, find we he's important but this identified a we wouldn't us, So Kimbell. very if an to run find has business. manager team asset we management at have Exact a who that didn't to

Not XX of same, the Really, looking the day duties, deals at at given jobs, XX given just that no, So the allocation time. a exact exact to whatsoever. same. distraction any we're fact

we one to of another looking Kimbell just specifically. that This Businesses want is XX we've the work. since years same we're This the pretty business our ago. that's acquisitions to just on we a So that -- by allocating that been how machine that those direction went as brought the it's founded potential for purpose exciting is continue we're since strategic at. We peers minerals. way, resources,

TJ Schultz

Okay.

you makes to on production expand that that drivers sense. Maybe could commodity low-end the range at management, just would and guidance, of on that. Now push high-end if that or activity-driven. Then you appreciate

higher-end, to a bit commodity bias future that no would say into then guidance. Thanks. So you that the built-in just view maybe there's and on your acquisitions prices, the confirming

Davis Ravnaas

right? best and be over our be prices for conservative that increase guidance. drilling the our always tried to turn to I of two acquisitions royalty One, guidance and very couple then don't It of a even We've and part just operator into and that's or we Because over control comments. it. make oil to Matt activity. it's have developmental have I would we I'll to after be the No, built could we can acreage doesn't say can then and you County like to are a high with conservative, like for quick never to setting bar acreage -- reasons. meet that exceed business, to set be expectations whatever them, in more sometimes the obviously, asset. Midland failing want on to as a $XXX, opposed as meet important it reason,

behest is to seeing And be sure that fiscal stick this will to It so in reason, and still of interesting this happens you what you're see say you're what think I am our the time operators obviously that maintain what be to but at something going good oil the We'll out I'd I'd about Operator. though; for the environment, going anything really our all CapEx think, discipline. interesting plans Are I stick to to to there to guidance. are try to this overall will or higher-priced they conservative it just is it goal maintenance see TJ, with put say heroic. they happens never to that's environment. be stick to in up? that ramp

see all surprised But, I'll would guidance. for of setting you I additional And same to in of it. be conservative Matt, So we exceeded actually to almost that any over if not do turn I'm the thoughts. happy peers it our terms

Matt Daly

oil the plays the that no, all correction looking prices could XX in at up with have And we're flare big on that. the but prices where and high with be Silver revenue keep have the grow also in to that on prices gas And Haynesville Haynesville wells are they continue good, the rig some could you'd been, on the very are, are upside. in curve agree now, there. Right a backward expect area end, COVID; if mean, XX, in I interest we later dated the we high-end, the of the in year. price will I or throughout obvious, very year. is high are play. us the end this stay probably another also commodity spot drop into they net at has on now still a for right big the the out maybe now you No, be in low throughout count the year, where

being this it year. with As conservative David said, for good feel guidance, the we about we're

TJ Schultz

Thank Yes. All makes sense. Appreciate it. you.

Davis Ravnaas

TJ. Thanks,

Operator

further no would remarks. for are there at floor questions to the time. management like this over I closing to And back And turn

Rick Black

joining all you completes with We again look speaking results. we this thank forward This when you quarter us to morning and today's report for first call.

Operator

you the thank concludes ladies And for teleconference. gentlemen, participation. This your and does

disconnect lines your wonderful may and a You have day.

Kimbell Royalty Partners (KRP) 24 Feb 222021 Q4 Earnings call transcript