Kimbell Royalty Partners LP

Greetings and welcome to Kimball 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. 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 is now my pleasure to introduce your host, Mr. Rick Black, Investor Relations. Thank you, Mr. Black. 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 2024 that ended on December 31, 2024. 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 27th, 2025, 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 for future events or future financial performance, are considered forward-looking statements made pursuant to the Safe Harbor's provisions of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's discussion, 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 disclosures 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 also will be referring to non-GAAP measures, including adjusted EBITDA and cash available for distribution. Reconciliations to the nearest GAAP 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. 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 call this morning. With me today are several members of our senior management team, including Davis Ravenous, our president and chief financial officer, Matt Daly, our chief operating officer, and Blaine Reinsberger, our controller. We are pleased to report another outstanding year at Kimball, marked by substantial growth in production, revenue, and EBITDA. This year yielded success from the significant acquisition we made in the prior year, which you might recall was a record $455 million increase acquisition that closed in Q3 2023. This portfolio has and continues to perform extremely well. As a result of this very productive year, Kimball paid out $1.75 per common unit in tax advantage quarterly distributions during 2024, in addition to paying down on our credit facility. During the fourth quarter, drilling activity remained strong, with 91 rigs actively drilling on our acreage. including the rigs added from the Midland Basin acquisition, which closed last month. This rig count represents 16 percent market share of all rigs drilling in the lower 48. Line of side wells continue to be well above the number of wells needed to maintain flat production, giving us confidence in the resilience of our production for 2025. Our superior five-year annual average PDP decline rate of 14 percent, including the acquired production, requires only an estimated 6.5 net wells annually to maintain flat production. 2025 is off to a strong start as we closed a $230 million acquisition last month, completed a highly successful primary equity offering, and today we introduced 2025 guidance that has expected production at its midpoint, a new record guidance level for Kimball. Finally, we believe Kimball is well positioned for continued growth as we continue to enhance unit holder value into the future. I'll now turn the call over to Davis.