Kimbell Royalty Partners LP

Greetings and welcome to the Kimball Royalty Partners third quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Rick Black, Investor Relations for Kimball Royalty Partners. Thank you. You may begin.

Thank you, Operator, and good morning, everyone. Welcome to the Kimball Royalty Partners conference call to review financial and operational results for the third quarter 2023, which ended on September 30th, 2023. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the IR section of KimballRP.com. Information recorded on this call speaks only as of today, November 2nd, 2023, and so please be advised that any time-sensitive information may no longer be accurate as to the date of any replay listening or transcript reading. I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance, are considered forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call which, by their nature, are uncertain and outside of the company's control. Actual results may differ materially. Please refer to today's earnings press release for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management will also refer to non-GAAP measures, including adjusted EBITDA and cash available for distribution. Reconciliations to the nearest gap measures can be found at the end of today's press release. Kimball assumes no obligation to publicly update or revise any forward-looking statements. I would now like to turn the call over to Bob Ravenous, Kimball Realty Partners Chairman and Chief Executive Officer.

Bob? Thank you, Rick, and good morning, everyone. We appreciate you joining us on the call this morning. With me today are several members of our senior management team, including Davis Ravenous, our President and Chief Financial Officer, Matt Daley, our Chief Operating Officer, and Blaine Reinsberger, our Controller. We are very pleased to announce another record quarter that included substantial growth in all key operating metrics. Our total production, including a full quarter from our recent $455 million acquisition from a private seller, exceeded 23,000 BOE per day for the first time in our history. We are excited to have achieved this significant milestone as we continue to execute Our strategic business model aimed at not only consolidating the U.S. oil and natural gas royalty sector, but also, and more importantly, generating long-term value for our unit holders. The third quarter marked new all-time highs set in production, rig count, ducts, and permits. During the quarter, our production mix continued to materially shift towards liquids, with oil and NGLs now representing 49% of our production compared to 46% last quarter. Activity in our acreage remains strong, and we now have a 17% market share of the overall U.S. land rig count, the highest in our history. Even after giving effect to our most recent $455 million acquisition, we still have the best-in-class PDP decline rate of only 14%. At the end of the quarter, we had 9.3 net ducks and permits, reflecting the widest spread we've ever had of line-of-sight wells relative to the number of wells needed to maintain flat production of only 5.8 net wells per year. This gives us confidence in the resilience in our production as we wrap up 2023 and look at 2024. In short, we are extremely pleased with this quarter, as well as our third quarter distribution of 51 cents that we declared today, an increase of 31 percent from last quarter. In September, we closed our largest acquisition in the company's history. As we stated then and still believe today, this acquisition is expected to significantly enhance Kimball's positions in the best-performing, highest-growth oil and gas basins in the lower 48. The targeted portfolio of mineral and royalty interests complements our disciplined approach to M&A, combining excellent reservoir quality, near-term cash flow, and long-term drilling upside. While this acquisition was immediately accretive to distributable cash flow per unit, We believe it will generate accelerated accretion in the future years. We look forward to continuing our role as a major consolidator in the oil and natural gas royalty sector. I'll now turn the call over to Davis to review our financials in more detail before we open the call to questions.