Kimbell Royalty Partners LP

And welcome to the Kimbell Royalty Partners fourth quarter earnings conference call. At this time, all participants are in a listen-only mode. The answer session will follow the formal presentation. For operator assistance during the conference, please press star zero on your telephone keypad. The conference is being recorded. I'd like to introduce your host, Rick Black with Investor Relations. Thank you, sir. 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 fourth quarter of 2023, ended on December 31, 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, February 21st, 2024, so please be advised that any time-sensitive information may no longer be accurate as of 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 Harbors Provision of the Private Securities Litigation Reform Act of 1995. We will be making statements that are forward-looking 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 release for our disclosure on forward-looking statements. These factors and other uncertainties and risks are detailed 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 earnings release. Kimball assumes no obligation to publicly update or revise any forward-looking statements. And with that, 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 Ravnis, our president and chief financial officer, Matt Daly, our chief operating officer, and Blaine Reinsberger, our controller. We are very pleased to announce another record year for Kimball. In 2023, we completed our largest acquisition to date, which was immediately accretive to distributable cash flow per common unit, and the acquisition substantially bolstered the Permian as our leading basin in terms of production, active rig count, ducts, permits, and undrilled inventory. In addition, we increased the borrowing base and elected commitments on our revolving credit facility to $550 million, further enhancing our liquidity and conservative capital structure. We were also very pleased to report that we paid out $1.73 per common unit in tax advantage quarterly distributions during 2023 and paid down approximately $49.9 million on our credit facility. We ended the year with a strong fourth quarter that reflected significant sequential organic growth over the third quarter due to a number of high interest wells coming online in the Permian and Haynesville. We expect to continue this operational momentum as we progress through 2024, given that our rig count remains near record highs with 98 rigs actively drilling in the U.S. Turning now to production growth. It is remarkable to reflect on our growth since our IPO. as we have now grown production from 3,116 BOE per day to 24,332 BOE per day, an increase of 681%. As evidenced by our significant acquisition activity in 2023, we expect to continue our role as a major consolidator in the highly fragmented U.S. oil and natural gas royalty sector, and we estimate the total size of the market to be nearly a trillion dollars. As I've stated in the past, there are only a handful of public entities in the US and Canada that have the financial resources, infrastructure, network, and technical expertise to complete large-scale multi-basin acquisitions. We believe that we are still in the early stages of this consolidation and will actively seek out targets that fit within our acquisition profile. We are very excited about the opportunities to expand in the future and deliver unit holder value for years to come. I'll now turn the call over to Davis and Matt.