RJFS NATIONAL CONFERENCE APRIL 2017 CONFIDENTIAL NOT FOR DISTRIBUTION
Initial Public Offering 2/3/17 RJ Lead 3
Overview Kimbell Royalty Partners, L.P. (Kimbell or KRP) is one of the largest owners of oil and natural gas mineral and royalty interests across the United States Approximately 4.5 million gross acres across twenty states and in…
Geographically Diverse Assets Approximately 4.5 million gross acres in every major basin (1) 44% of acreage in Permian basin, with a premier footprint in the Wolfcamp / Bone Spring (1) Over 48,000 wells, including over…
Existing Portfolio Average Daily Production by Basin BOE 6:1 (1) Acreage (2) Other TX/LA/MS Salt Illinois Basin KRP has a demonstrated ability to assemble a portfolio of royalty Basin Onshore California Other interests across every…
KRP Net Organic Production Net Organic Production Growth (July 2001 June 2016) (1) 1,000,000 100,000,000 100,000 10,000,000 Gas (MCF)/Year Oil (BBL)/Year 10,000 1,000,000 Oil Gas 1,000 100,000 2001 2003 2005…
Premier Permian Acreage Position Permian position is 1,997,667 gross acres and 18,555 net royalty acres (1) Currently 15 active rigs on KRPs Permian acreage (24 active rigs total) KRPs acreage position blankets the core of…
Permian Active Rig Count (1) Permian Rig Count December 2016 Permian Rig Count March 2017 KRPs active rig count in the Permian Basin has increased 88% since year-end 2016 (1) Source: Drillinginfo. 9
KRP Business Strategy Drop-downs of mineral and royalty interests Grow reserves and production in order to held by our Sponsors and Contributing Parties drive increased cash flow over time The Sponsors and Contributing Parties of…
Maxus Energy ORRI Acquisition KRP recently announced the acquisition of overriding royalty interests covering 1.1 million gross acres (6,700 net royalty acres) from Maxus Energy in the Anadarko Basin Maxus Energy ORRI Acquisition…
Post-Acquisition Management An active approach to portfolio management Ongoing Accountability Disciplined Monitoring KRP Acquisition Post-investment, Kimbells entire team is Immediately following an acquisition, the involved in…
Benefits of Royalty Interests 13
Generally Senior to All Claims in Capital Structure In many states, mineral and royalty interests are considered by law to be real property interests and are thus afford additional protections under bankruptcy law Mineral…
Kimbell vs. Midstream/Service MLPs Kimbell believes that mineral and royalty ownership is attractive in that it provides an attractive risk-return profile, especially when compared to ownership of midstream/service MLPs 1 2 3 4…
Higher Margin, Lower Risk Given the same revenue per barrel, a royalty barrel realizes a significantly higher operating margin. No direct operating or capital expenses. Illustrative KRP Royalty Interest (1) Illustrative Working…
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