Kimbell Royalty Partners LP

Greetings and welcome to the Kimball Royalty Partners second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A 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. I'd now like to turn the call over to your host, Zach Vaughn, with Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning, everyone. Welcome to the Kimbell Royalty Partners conference call to review financial and operational results for the second quarter, which ended June 30th, 2026. This call is also being webcast and could be accessed through the audio link on the events and presentations page of the IR section of KimbellRP.com. Information recorded on this call speaks only as of today, August 7th, 2026, So please be advised that any time sensitive information may no longer be accurate as of the date of any replay listing 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 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 earnings release. Kimball assumes no obligation to publicly update or revise any foreign-looking statements. I would now like to turn the call over to Bob Ravnaas, Kimball Royalty Partners Chairman and Chief Executive Officer. Bob?

Thank you, Zach, and good morning, everyone. We appreciate you joining us this morning. With me today are several members of our senior management team, including Davis Ravnaas, our President and Chief Financial Officer, Matt Daly, our chief operating officer, and Blayne Rhynsburger, our controller. To start off, we are pleased to report an outstanding quarter for Kimball, which includes records for oil, natural gas and NGL revenues, net income, consolidated adjusted EBITDA, lease bonuses, average daily production, and cash available for distribution. We also closed on our previously announced Mesa Royalty's acquisition in June. which has begun to contribute nicely to our overall results, and last month we announced the second drop-down acquisition since our IPO. Both of these transactions are expected to add meaningful production and drive cash flow growth for years to come. Production during the quarter grew both organically and through acquisitions, resulting in oil, natural gas, and NGL revenues exceeding $100 million for the first time, while cash G&A per BOE remained below the midpoint of guidance generating positive operating leverage and distribution growth. Even with the uncertainty occurring across the broader geopolitical landscape in recent months, activity on our acreage remains robust with 91 rigs actively drilling at quarter end representing a market share of US land rigs at 16%. This record second quarter performance allowed us to declare a Q2 2026 Distribution of 47 cents per common unit, up 15% from Q1, 2026. As we continue to focus on returning value to unit holders, this distribution reflects an annualized tax advantage yield of approximately 13% based on yesterday's closing price. Looking ahead, we're excited to layer in production from our drop-down acquisition, which is slated to close later this month, and are confident in the potential of the Caban Company on a go-forward basis. We expect both transactions to expand our scale and enhance our cash flow generation for years to come. We also continue to expect higher oil prices to support a modest uptick in activity across our oil-weighted basins. While oil prices have been especially volatile in recent weeks due to the stops and starts of the Middle East conflict, they remain elevated relative to historical levels, and we believe the current Robert Dean Ravnaas, Brett Taylor, Robert Davis Ravnaas remains in the beginning stages, and we are encouraged by the opportunities in front of us. We intend to build on this recent activity as we strive to expand our industry-leading portfolio of assets. I'd like to thank all of our employees for their hard work and dedication in driving Kimball forward and for their role in helping to generate long-term unit holder value. And now I'll turn the call over to Davis.