Kimbell Overview Kimbell is a pure play mineral company offering a unique 9.7% annualized cash distribution yield, which is expected to be non-taxable and treated as return of capital(1)(2) Company Overview Investment Highlights…
Q3 2021 Highlights Record Performance Kimbell generated record Cash Available for Distribution in Q3 2021 (a record 0.50 / common unit), yielding total unitholders 22.9mm in cash distributions and 7.6mm in expected debt paydown Q321…
Superior Value Proposition Kimbell compares favorably on key traditional investment metrics to publicly traded companies across various industries Offers superior combination of tax advantaged dividend yield with a strong balance…
Portfolio Overview by Basin Kimbells portfolio consists of high-quality oil and gas assets across almost every major basin the U.S. We believe the portfolio represents a balanced mix of liquids vs. gas with high levels of activity from…
Portfolio Transparency & Defining Upside Potential Kimbells acreage position contains an estimated 15 years(1) of drilling inventory across its major(2) properties alone based on 2019 drilling pace We believe that Kimbell is known for…
Organic Growth and 5-Year PDP Decline Forecast Prior to the pandemic-related slowdown in 2020, KRP had demonstrated a strong organic compounded annual growth rate of 8% over a 10-year timeframe through 2019 along with a superior PDP…
Drilling Maintenance to Achieve Flat Production KRP had approximately 670 Major / 1,030 Minor (over 1,700 total) gross horizontal wells drilled on its acreage in 2019. Based on our inventory, this implies an estimated 15 years of…
DUC and Permit Inventory As of September 30, 2021, Kimbell had 770 gross (1.69 net) DUCs and 674 gross (3.02 net) permitted locations on its acreage, in excess of estimated 4.5 net wells to maintain flat production(1) Gross Total…
Kimbells Rig Count Growth Over Time Active Rigs on Acreage by Basin(1) Rig Count Change since Q1 2017 Eagle Ford 8% 60 Bakken 5 8% 5 Permian 40% 16 Mid-Continent 17% 60 Rigs 24 10 2 1 3 1 4 24 15 Haynesville 1Q'17…
Active Rigs Drilling on Kimbells Acreage (as of 9/30/2021) Kimbell has 60 active rigs (97% horizontal) drilling on our acreage at no cost to us; 57% of rigs are operated by public companies and 43% by private operators Permian…
Kimbells Track Record Since IPO Kimbell has returned 34% of 18.00/unit IPO price via cash dividends in fewer than five years Production Growth (Boe/d)(1)(2) Net Royalty Acres(2)(3) 14.1 14.2 14.1 13.7 14.0 14.1 143.2 143.2 143.2…
Expected Favorable Tax Treatment of Earnings and Distributions(1) Kimbell believes the expected favorable federal income tax treatment will enhance the after-tax returns to Kimbell common unitholders Kimbell expects that: o The…
Kimbell has an Optimal Balance of Unconventional and Conventional Assets Kimbell has approximately 24% of its overall production from conventional assets including certain Enhanced Oil Recovery (EOR) projects. This conventional…
Investment Highlights - Shallow Decline, High Growth Potential Deep Inventory with Strong Upside 24% of production is from EOR units and conventional fields with shallow declines(1) Superior PDP decline rate of approximately 12%(2)…
2. Detailed Asset Overview
Permian Basin Acreage Map Permian Eagle Ford Haynesville Other Basins Our acreage is in the sweet spot of the Permian, with production achieving the best of both worlds: Stable PDP base production from our long-life,…
Permian Basin EOR / Waterflood Conventional Production Permian Eagle Ford Haynesville Other Basins LEVELLAND UNITS OWNBY UNIT ROBERTS COGDELL UNIT CANYON REEF SEMINOLE SAN ANDRES MEANS SAN ANDRES SACROC FULLERTON…
Permian Conventional Overview (EOR / Waterflood) Permian Eagle Ford Haynesville Other Basins Historically, KRPs Permian EOR/Waterflood properties have demonstrated a very low decline production profile. Through various production…
Permian Unconventional Upside Overview Permian Eagle Ford Haynesville Other Basins Delaware Core Area(s) Defining Basin Potential and Inventory Permian development spacing defined by geology and development trends by surrounding…
Haynesville Acreage Map Permian Eagle Ford Haynesville Other Basins 94% natural gas which makes Haynesville production resilient through down-swings in oil prices High NRI exposure in what is considered the core of the…
Haynesville Upside Overview Permian Eagle Ford Haynesville Other Basins Haynesville Core Area(s) Defining Basin Potential and Inventory Haynesville development spacing defined by geology and development trends by surrounding…
Eagle Ford Acreage Map Permian Eagle Ford Haynesville Other Basins Significant exposure to the core Eagle Ford oil window Premium pricing differentials due to proximity to vast pipeline infrastructure Gross Acreage Net…
Eagle Ford Upside Overview Permian Eagle Ford Haynesville Other Basins Eagle Ford Core Area(s) Defining Basin Potential and Inventory Eagle Ford development spacing defined by geology and development trends by surrounding operators…
Other Basins Acreage Map Permian Eagle Ford Haynesville Other Basins Expansive footprint across 28 states in the US Balanced mix of unconventional assets and low-decline conventional properties Bakken Other basins represent 25% of…
3. Supplemental Information
Historical Production Mix (6:1 BOE) by Basin Production in mboepd Other Rockies 14.1 14.2 14.1 14.0 14.1 Appalachia 13.7 1.3 1.3 1.3 1.3 12.8 1.6 1.2 Bakken 12.8 12.6 0.8 0.8 1.0 Mid-Continent 12.0 0.6 0.7 1.0 11.8 2.7…
Consistent Organic Growth over the Last 20 Years Kimbells assets have proven resilient through multiple commodity price cycles and geopolitical events KRP Organic Net Production Growth (2001-2020)(1) 2,300,000 U.S. production…
Minerals are Subsurface Real Estate Kimbells PDP reserves have grown by approximately 175% since 2017 through a combination of acquisitions and organic PDP reserve growth, akin to adding additional floors to a subsurface building…
Sustainable PDP Reserves Kimbell has one of the best historical reserve-to-production ratios in the minerals industry (and overall energy sector) at 8.3 years 2020 Year-End PDP Reserves/Q4 2020 Annualized Daily Production(1) 8.3…
History Kimbell has a strong track record of success as a natural consolidator in the mineral and royalty industry With a Closed Closed drop Entered Closed 36 Closed on credit 1998 February 2017 July 2018 December…
Production and Net Royalty Acreage Overview Q321 Production from Some of the Most Net Royalty Acres(2) Economic Areas (Boe/d)(1) Bakken Rockies 5% Other 7% 25% Mid-Continent Haynesville 28% Other 26% 9%…
Defining a Net Royalty Acre The calculation of a Net Royalty Acre differs across industry participants Kimbell calculates its Net Royalty Acres(1) as follows: Net Mineral Acres x Royalty Interest(2) This methodology provides a clear…
Mineral Interests 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 afforded additional protections under bankruptcy…
Overview of Mineral & Royalty Interests Minerals NPRIs ORRIs Perpetual real-property interests that Nonparticipating royalty interests Overriding royalty interests grant oil and natural gas ownership under a tract of land Royalty…
Positioned for Growth Through Acquisitions Acquisitions from Current Sponsors Sizing the Minerals Market Existing Kimbell Sponsors remaining assets have Total Minerals Market Size(1): 625 billion production and reserve characteristics…
Highest Cash Flow Yield Across Multiple Sectors Kimbell offers an attractive 10% yield versus the rest of the public space, including integrated companies and large cap E&Ps. In addition, royalty companies offer far superior cash yields…
Process and Methodology Kimbell did not book any upside reserves in its year-end 2020 reserve report included in its Form 10-K filed with the SEC For purposes of this exercise, Kimbells upside analysis was reviewed by Ryder Scott, a…
Historical Selected Financial Data Non-GAAP Reconciliation (in thousands) Three Months Ended September 30, 2021 Net income 7,466 Depreciation and depletion expense 8,829 Interest expense 2,495 Cash distribution from affiliate…
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