Kimbell Royalty Partners, LP
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 26, 2026
KRP$15.15+0.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-27.
0001558370-25-001800
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-26.
0001104659-26-020477
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 148 previous paragraphs and 142 current paragraphs.
80 unchanged; 47 reworded; 6 added; 14 removed; 7 previous and 9 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
The $0.012498 excluded from the OpCo common unit distribution corresponds to a tax refund received by us in the fourth quarter of 2025. Under the limited liability company agreement of the Operating Company, we do not reimburse the Operating Company for federal income tax refunds received by us.
Current report
Government Legislation
Current report
On July 4, 2025, Public Law No. 119-21, commonly referred to as the One Big Beautiful Bill Act (the “Act”), was enacted by the U.S. government. Key provisions of the Act affecting us include: (i) the permanent reduction of the corporate tax rate, (ii) the permanent extension of 100% bonus depreciation for qualified property, and (iii) modifications to the calculation for excess business interest expense limitation under § 163(j) to adjusted taxable income calculation on the business interest expense limitation. In accordance with ASC Topic 740, Income Taxes, we have recognized the effects of the new tax law in the period of enactment. The impact of the Act for the quarter ended September 30, 2025, the reporting period that included the enactment date, resulted in a reduction to current income tax expense, primarily due to the changes to the 163(j) interest limitation.
Current report
For the year ended December 31, 2025, our oil, natural gas and NGL revenues were $317.5 million, an increase of $12.9 million from $304.6 million for the year ended December 31, 2024. The increase in oil, natural gas and NGL revenues was primarily related to an increase in the average prices received for natural gas coupled with an increase in combined production volumes for the year ended December 31, 2025, partially offset by a decrease in the average prices received for oil and NGLs, as discussed below.
Current report
For the year ended December 31, 2025 lease bonus and other income was $4.3 million, a decrease of $1.7 million compared to $6.0 million for the year ended December 31, 2024. The decrease in lease bonus and other income was due to a large lease bonus received during the year ended December 31, 2024.
Current report
Income Tax (Benefit) Expense
Removed paragraphs (14)
Previous report
We are a Delaware limited partnership formed in 2015 to own and acquire mineral and royalty interests in oil and natural gas properties throughout the United States. We have elected to be taxed as a corporation for United States federal income tax purposes. As an owner of mineral and royalty interests, we are entitled to a portion of the revenues received from the production of oil, natural gas and associated NGLs from the acreage underlying our interests, net of post-production expenses and taxes. We are not obligated to fund drilling and completion costs, lease operating expenses or plugging and abandonment costs at the end of a well’s productive life. Our primary business objective is to provide increasing cash distributions to unitholders resulting from acquisitions from third parties, our Sponsors and the Contributing Parties and from organic growth through the continued development by working interest owners of the properties in which we own an interest.
Previous report
Equity Offering
Previous report
On January 9, 2025, we completed an underwritten public offering of 11,500,000 common units for net proceeds of approximately $163.6 million (the “2025 Equity Offering”). We used the net proceeds from the 2025 Equity Offering to purchase OpCo common units. The Operating Company ultimately used the net proceeds of the 2025 Equity Offering to fund the Boren Acquisition (as defined below).
Previous report
Acquisitions
Previous report
On January 17, 2025, we completed the Boren Acquisition in a cash transaction valued at approximately $230.4 million. We funded the cash transaction with borrowings under our secured revolving credit facility and net proceeds from the 2025 Equity Offering. Theoil and gas properties acquired are located under the Mabee Ranch in the Midland Basin in Texas. As of December 31, 2024, the acquired assets would have added 0.86 DUCs and net permitted locations on our acreage (0.64 net DUCs and 0.22 net permitted locations) and daily production of 1,864 Boe/d.
Previous report
Our revenues for the year ended December 31, 2023 decreased by $14.4 million, from $282.0 million for the year ended December 31, 2022. The decrease in oil, natural gas and NGL revenues was primarily related to the decrease in the average prices we received for oil, natural gas and NGL production, partially offset by an increase in production volumes for the year ended December 31, 2023 as discussed below.
Previous report
For the year ended December 31, 2023, production and ad valorem taxes increased by $4.1 million from $16.2 million for the year ended December 31, 2022. The increase in production and ad valorem taxes was primarily attributable to the Hatch Acquisition and the MB Minerals Acquisition, and to a lesser extent, the LongPoint Acquisition. The increase was partially offset by the decrease in the average prices we received for oil, natural gas and NGL production.
Previous report
As of December 31, 2023, the 12-month average prices of oil and natural gas were $78.22 per Bbl of oil and $2.64 per Mcf of natural gas. These prices represent a 16.5% and 58.5% decrease, respectively, from the 12-month average prices of oil and natural gas as of December 31, 2022, which were $93.67 per Bbl of oil and $6.36 per Mcf of natural gas. We did not record an impairment on our oil and natural gas properties for the year ended December 31, 2022.
Previous report
Marketing and other deductions for the year ended December 31, 2023 decreased by $0.8 million from $13.4 million for the year ended December 31, 2022. The decrease in marketing and other deductions was primarily related to the decrease in the average prices we received for oil, natural gas and NGL production for the year ended December 31, 2023, partially offset by marketing and other deductions associated with the Hatch Acquisition and the MB Minerals Acquisition, and to a lesser extent, the LongPoint Acquisition.
Previous report
Income Tax Expense
Previous report
defined below). On July 24, 2023, we entered into the First Amendment (as defined below) to the A&R Credit Agreement that, among other things, (i) decrease the frequency of and increase the threshold for excess cash determinations from $30.0 million to $50.0 million, and (ii) permit us to issue certain preferred equity interests. On December 8, 2023, we entered into the Second Amendment (as defined below) to the A&R Credit Agreement that, among other things, increase each of the borrowing base and aggregate elected commitments from $400.0 million to $550.0 million. See “Indebtedness” below for further discussion of our secured revolving credit facility.
Previous report
Cash flows used in investing activities for the year ended December 31, 2022 include $236.9 million of investments held in marketable securities related to TGR, $141.3 million used primarily to fund the Hatch Acquisition and $0.2 million used to fund the purchase of equipment, partially offset by $3.6 million in cash distributions received in connection to the joint venture with Springbok SKR Capital Company, LLC and Rivercrest Capital Partners, LP (the “Joint Venture”).
Previous report
On July 24, 2023, we entered into Amendment No. 1 (the “First Amendment”) to the A&R Credit Agreement. The amendment amends the A&R Credit Agreement to, among other things, (i) decrease the frequency of and increase the threshold for excess cash determinations from $30.0 million to $50.0 million, and (ii) permit us to issue certain preferred equity interests.
Previous report
On December 8, 2023, we entered into Amendment No. 2 (the “Second Amendment”) to the A&R Credit Agreement. The amendment amends the A&R Credit Agreement to, among other things, increase each of the borrowing base and aggregate elected commitments from $400.0 million to $550.0 million.
Reworded paragraphs (47)
Previous wording
As of December 31, 2024, we owned mineral and royalty interests in approximately 12.2 million gross acres and overriding royalty interests in approximately 4.7 million gross acres, with approximately 54% of our aggregate acres located in the Permian Basin and Mid-Continent. As of December 31, 2024, over 99% of the acreage subject to our mineral and royalty interests was leased to working interest owners, including approximately 100% of our overriding royalty interests, and substantially all of those leases were held by production. Our mineral and royalty interests are located in 28 states and in every major onshore basin across the continental United States and include ownership in over 129,000 gross wells, including over 50,000 wells in the Permian Basin.
Current wording
As of December 31, 2025, we owned mineral and royalty interests in approximately 12.3 million gross acres and overriding royalty interests in approximately 4.7 million gross acres, with approximately 54% of our aggregate acres located in the Permian Basin and Mid-Continent. As of December 31, 2025, over 99% of the acreage subject to our mineral and royalty interests was leased to working interest owners, including approximately 100% of our overriding royalty interests, and substantially all of those leases were held by production. Our mineral and royalty interests are located in 28
Previous wording
On February 27, 2025, the Board of Directors declared a quarterly cash distribution of $0.40 per common unit and OpCo common unit for the quarter ended December 31, 2024. We intend to pay the distributions on March 25, 2025 to common unitholders and OpCo common unitholders of record as of the close of business on March 18, 2025.
Current wording
On February 26, 2026, the Board of Directors declared a quarterly cash distribution of $0.37 per common unit and $0.357502 per OpCo common unit for the quarter ended December 31, 2025. We intend to pay the distributions on March 25, 2026 to common unitholders and OpCo common unitholders of record as of the close of business on March 18, 2026.
Previous wording
We will pay a quarterly cash distribution on the Series A preferred units of approximately $4.9 million for the quarter ended December 31, 2024. We intend to pay the distribution subsequent to February 27, 2025, and prior to the distribution on the common units and OpCo common units.
Current wording
We will pay a quarterly cash distribution on the Series A preferred units of approximately $2.5 million for the quarter ended December 31, 2025. We intend to pay the distribution subsequent to February 26, 2026, and prior to the distribution on the common units and OpCo common units.
Previous wording
In February 2022, Russia invaded Ukraine and is still engaged in active armed conflict against the country. In October 2023, armed active conflict escalated in the Middle East between Israel and Hamas. In January 2025, Israel and Hamas agreed to a ceasefire deal, however, there is no indication on the extent of the ceasefire. These conflicts and the applicable sanctions imposed in response have led to regional instability and caused dramatic fluctuations in global financial markets and have increased the level of global economic and political uncertainty, including uncertainty about world-wide oil supply and demand, which in turn has increased volatility in commodity prices. To date, we have not experienced a material impact to operations or the consolidated financial statements as a result of these conflicts; however, we will continue to monitor for events that could materially impact us.
Current wording
In February 2022, Russia invaded Ukraine and is still engaged in active armed conflict against the country. In October 2023, armed active conflict escalated in the Middle East between Israel and Hamas. These conflicts, along with the recent U.S. military action in Venezuela, and the applicable sanctions imposed in response have led to regional instability and caused dramatic fluctuations in global financial markets and have increased the level of global economic and political uncertainty, including uncertainty about world-wide oil supply and demand, which in turn has increased volatility in commodity prices. To date, we have not experienced a material impact to operations or the consolidated financial statements as a result of these conflicts; however, we will continue to monitor for events that could materially impact us.
Previous wording
Oil and natural gas prices have been historically volatile and may continue to be volatile in the future. As noted above, the supply and demand imbalance resulting from various OPEC announcements and the current conflict between Russia and Ukraine and in the Middle East, have created increased volatility in oil and natural gas prices. The table below demonstrates such volatility for the periods presented as reported the United States Energy Information Administration (the “EIA”).
Current wording
Oil and natural gas prices have been historically volatile and may continue to be volatile in the future. As noted above, the supply and demand imbalance resulting from various OPEC announcements and the current conflict between Russia and Ukraine and in the Middle East, have created increased volatility in oil and natural gas prices. The table below demonstrates such volatility for the periods presented as reported by the United States Energy Information Administration (the “EIA”).
Previous wording
On February 10, 2025, the WTI posted price for crude oil was $72.73 per Bbl and the Henry Hub spot market price of natural gas was $3.48 per MMBtu.
Current wording
On February 17, 2026, the WTI posted price for crude oil was $62.53 per Bbl and the Henry Hub spot market price of natural gas was $3.13 per MMBtu.
Previous wording
The Baker Hughes United States Rotary Rig count decreased 4.8% to 573 active land rigs at December 31, 2024 compared to 602 active land rigs at December 31, 2023. While the United States Rotary Rig count decreased year over year, overall production is not decreasing, indicating improved efficiencies are allowing sustained production from fewer rigs.
Current wording
The Baker Hughes United States rotary rig count decreased 8.0% to 527 active land rigs at December 31, 2025 compared to 573 active land rigs at December 31, 2024. The decrease in rig count is primarily related to a decrease in the average prices received for oil, partially offset by an increase in the average price received for natural gas, coupled with domestic and international uncertainties, as noted above.
Previous wording
The 602 active rig count at December 31, 2023 decreased 21% compared to 762 active land rigs at December 31, 2022. The overall decrease in rig count at December 31, 2023 compared December 31, 2022 is primarily attributable to the volatility and decrease in the average daily prices for oil and natural gas.
Current wording
The 573 active rig count at December 31, 2024 decreased 4.8% compared to 602 active land rigs at December 31, 2023. The overall decrease in rig count at December 31, 2024 compared December 31, 2023 was primarily attributable to the volatility and decrease in the average daily prices for oil and natural gas.
Previous wording
Acquisitions are an important part of our growth strategy, and we expect to pursue acquisitions of mineral and royalty interests from third parties, affiliates of our Sponsors and the Contributing Parties. As a part of these efforts, we often engage in discussions with potential sellers or other parties regarding the possible purchase of or investment in mineral and royalty interests, including in connection with a dropdown of assets from affiliates of our Sponsors and the Contributing Parties. Such efforts may involve participation by us in processes that have been made public and involve a number of potential buyers or investors, commonly referred to as “auction” processes, as well as situations in which we believe we are the only party or one of a limited number of parties who are in negotiations with the potential seller or other party. These acquisition and investment efforts often involve assets which, if acquired or constructed, could have a material effect on our financial condition and results of operations. Material acquisitions that would impact the comparability of our results for the years ended December 31, 2024, 2023 and 2022 include the acquisition of certain mineral and royalty assets held by MB Minerals, L.P. and certain of its affiliates (the “MB Minerals Acquisition”), the acquisition of all issued and outstanding membership interests of Cherry Creek Minerals LLC pursuant to a securities purchase agreement with LongPoint Minerals II, LLC (the “LongPoint Acquisition”) and the acquisition of certain mineral and royalty assets held by Hatch Royalty LLC (the “Hatch Acquisition”).
Current wording
Acquisitions are an important part of our growth strategy, and we expect to pursue acquisitions of mineral and royalty interests from third parties, affiliates of our Sponsors and the Contributing Parties. As a part of these efforts, we often engage in discussions with potential sellers or other parties regarding the possible purchase of or investment in mineral and royalty interests, including in connection with a dropdown of assets from affiliates of our Sponsors and the Contributing Parties. Such efforts may involve participation by us in processes that have been made public and involve a number of potential buyers or investors, commonly referred to as “auction” processes, as well as situations in which we believe we are the only party or one of a limited number of parties who are in negotiations with the potential seller or other party. These acquisition and investment efforts often involve assets which, if acquired or constructed, could have a material effect on our financial condition and results of operations. Material acquisitions that would impact the comparability of our results for the years ended December 31, 2025, 2024 and 2023 include the acquisition of mineral and royalty interests from Boren Minerals (the “Boren Acquisition”), the acquisition of certain mineral and royalty assets held by MB Minerals, L.P. and certain of its affiliates (the “MB Minerals Acquisition”) and the acquisition of all issued and outstanding membership interests of Cherry Creek Minerals LLC pursuant to a securities purchase agreement with LongPoint Minerals II, LLC (the “LongPoint Acquisition”).
Previous wording
We typically do not announce a transaction until after we have executed a definitive agreement. Past experience has demonstrated that discussions and negotiations regarding a potential transaction can advance or terminate in a short period of time. Moreover, the closing of any transaction for which we have entered into a definitive agreement may be subject to customary and other closing conditions, which may not ultimately be satisfied or waived. Accordingly, we can give no assurance that our current or future acquisition or investment efforts will be successful or that our strategic asset divestitures will be completed. Although we expect the acquisitions and investments we make to be accretive in the long term, we can provide no assurance that our expectations will ultimately be realized. We will not know the immediate
Current wording
We typically do not announce a transaction until after we have executed a definitive agreement. Past experience has demonstrated that discussions and negotiations regarding a potential transaction can advance or terminate in a short period of time. Moreover, the closing of any transaction for which we have entered into a definitive agreement may be subject to customary and other closing conditions, which may not ultimately be satisfied or waived. Accordingly, we can give no assurance that our current or future acquisition or investment efforts will be successful or that our strategic asset divestitures will be completed. Although we expect the acquisitions and investments we make to be accretive in the long term, we can provide no assurance that our expectations will ultimately be realized. We will not know the immediate results of any acquisition until after the acquisition closes, and we will not know the long term results for some time thereafter.
Previous wording
We recorded an impairment on our oil and natural gas properties of $62.1 million and $18.2 million during the years ended December 31, 2024 and 2023, respectively, primarily attributable to the decline in the 12-month average price of oil and natural gas. As of December 31, 2024, the 12-month average prices of oil and natural gas were $75.48 per Bbl of oil and $2.13 per Mcf of natural gas. These prices represent a 3.5% and 19.3% decrease, respectively, from the 12-month average prices of oil and natural gas as of December 31, 2023.
Current wording
We did not record an impairment on our oil and natural gas properties for the year ended December 31, 2025. We recorded an impairment on our oil and natural gas properties of $62.1 million and $18.2 million during the years ended December 31, 2024 and 2023, respectively, primarily attributable to the decline in the 12-month average price of oil and natural gas.
Previous wording
General and administrative expenses are costs not directly associated with the production of oil, natural gas and NGLs and include the cost of executives and employees and related benefits, office expenses and fees for professional services. We have entered into a management services agreement with Kimbell Operating, which in turn has entered into separate services agreements with entities controlled by affiliates of certain of our Sponsors and certain Contributing Parties, pursuant to which they and Kimbell Operating provide management, administrative and operational services to us. In addition, under each of their respective services agreements, affiliates of our Sponsors will identify, evaluate and recommend to us acquisition opportunities and negotiate the terms of such acquisitions.
Current wording
services. We have entered into a management services agreement with Kimbell Operating, which in turn has entered into separate services agreements with entities controlled by affiliates of certain of our Sponsors and certain Contributing Parties, pursuant to which they and Kimbell Operating provide management, administrative and operational services to us. In addition, under each of their respective services agreements, affiliates of our Sponsors will identify, evaluate and recommend to us acquisition opportunities and negotiate the terms of such acquisitions.
Previous wording
For the year ended December 31, 2024, our oil, natural gas and NGL revenues were $304.6 million, an increase of $37.0 million from $267.6 million for the year ended December 31, 2023. The increase in oil, natural gas and NGL revenues was primarily related to an increase in production volumes for the year ended December 31, 2024 as discussed below.
Current wording
Our revenues for the year ended December 31, 2024 increased by $37.0 million, from $267.6 million for the year ended December 31, 2023. The increase in oil, natural gas and NGL revenues was primarily related to an increase in production volumes for the year ended December 31, 2024 as discussed below.
Previous wording
Our revenues are a function of oil, natural gas, and NGL production volumes sold and average prices received for those volumes. The production volumes were 9,101,745 Boe or 24,868 Boe/d, for the year ended December 31, 2024, an increase of 1,729,123 Boe or 4,603 Boe/d, from 7,372,622 Boe or 20,265 Boe/d, for the year ended December 31, 2023. The increase in production for the year ended December 31, 2024 was primarily attributable to production associated with the MB Minerals Acquisition and the LongPoint Acquisition, which included a full year of production for the year ended December 31, 2024, compared to a partial year of production for the year ended December 31, 2023.
Current wording
Our revenues are a function of oil, natural gas, and NGL production volumes sold and average prices received for those volumes. The production volumes were 9,402,348 Boe or 25,760 Boe/d, for the year ended December 31, 2025, an increase of 300,603 Boe or 892 Boe/d, from 9,101,745 Boe or 24,868 Boe/d, for the year ended December 31, 2024. The increase in production volumes for the year ended December 31, 2025 was primarily attributable to production associated with the Boren Acquisition.
Previous wording
Our production volumes for the year ended December 31, 2023 increased by 1,814,750 Boe or 5,240 Boe/d, from 5,557,872 Boe or 15,025, for the year ended December 31, 2022. The increase in production for the year ended December 31, 2023 was primarily attributable to production associated with the Hatch Acquisition, which included a full year of production for the year ended December 31, 2023, compared to approximately three months of production for the year ended December 31, 2022, the MB Minerals Acquisition, and to a lesser extent, production associated with the LongPoint Acquisition.
Current wording
Our production volumes for the year ended December 31, 2024 increased by 1,729,123 Boe or 4,603 Boe/d, from 7,372,622 Boe or 20,265 Boe/d, for the year ended December 31, 2023. The increase in production for the year ended December 31, 2024 was primarily attributable to production associated with the MB Minerals Acquisition and the LongPoint Acquisition, which included a full year of production for the year ended December 31, 2024, compared to a partial year of production for the year ended December 31, 2023.
Previous wording
Our operators received an average of $75.98 per Bbl of oil, $1.82 per Mcf of natural gas and $23.34 per Bbl of NGL for the volumes sold during the year ended December 31, 2024 and $76.55 per Bbl of oil, $2.55 per Mcf of natural gas and $23.01 per Bbl of NGL for the volumes sold during the year ended December 31, 2023. The year ended December 31, 2024 decreased 0.7% or $0.57 per Bbl of oil and 28.6% or $0.73 per Mcf of natural gas compared to the year ended December 31, 2023. This change is consistent with prices experienced in the market, specifically when compared to the EIA average price decrease of 1.2% or $0.95 per Bbl of oil and 13.4% or $0.34 per Mcf of natural gas for the comparable periods.
Current wording
Our operators received an average of $63.84 per Bbl of oil, $2.93 per Mcf of natural gas and $23.15 per Bbl of NGL for the volumes sold during the year ended December 31, 2025 and $75.98 per Bbl of oil, $1.82 per Mcf of natural gas and $23.34 per Bbl of NGL for the volumes sold during the year ended December 31, 2024. The year ended December 31, 2025 decreased 16.0% or $12.14 per Bbl of oil and increased 61.0% or $1.11 per Mcf of natural gas compared to the year ended December 31, 2024. This change is consistent with prices experienced in the market, specifically when compared to the EIA average price decrease of 14.7% or $11.24 per Bbl of oil and increase of 60.7% or $1.33 per Mcf of natural gas for the comparable periods.
Previous wording
Average prices received by our operators during the year ended December 31, 2023 decreased 16.6% or $15.19 per Bbl of oil and 57.8% or $3.49 per Mcf of natural gas compared to the year ended December 31, 2022, which our operators received an average of $91.74 per Bbl of oil, $6.04 per Mcf of natural gas and $38.19 per Bbl of NGL. This change is consistent with prices experienced in the market, specifically when compared to the EIA average price decrease of 18.3% or $17.32 per Bbl of oil and 60.8% or $3.92 per Mcf of natural gas for the comparable periods.
Current wording
Average prices received by our operators during the year ended December 31, 2024 decreased 0.7% or $0.57 per Bbl of oil and 28.6% or $0.73 per Mcf of natural gas compared to the year ended December 31, 2023, which our operators received an average of $76.55 per Bbl of oil, $2.55 per Mcf of natural gas and $23.01 per Bbl of NGL. This change is consistent with prices experienced in the market, specifically when compared to the EIA average price decrease of 1.2% or $0.95 per Bbl of oil and 13.4% or $0.34 per Mcf of natural gas for the comparable periods.
Previous wording
For the year ended December 31, 2024 lease bonus and other income was $6.0 million, an increase of $0.4 million compared to $5.6 million for the year ended December 31, 2023. The increase in lease bonus and other income is primarily due to a large number lease bonuses received during the year ended December 31, 2024.
Current wording
Our lease bonus and other income for the year ended December 31, 2024 increased by $0.4 million compared to $5.6 million for the year ended December 31, 2023. The increase in lease bonus and other income is primarily due to a large number of lease bonuses received during the year ended December 31, 2024.
Previous wording
Loss on commodity derivative instruments for the year ended December 31, 2024 included $12.2 million of mark-to-market losses and $10.9 million of gains on the settlement of commodity derivative instruments compared to $26.4 million of mark-to-market gains and $5.5 million of losses on the settlement of commodity derivative instruments for the year ended December 31, 2023. We recorded a mark-to-market loss for the year ended December 31, 2024 as a result of the increase in oil and natural gas strip pricing from the year ended December 31, 2023, offset by realized gains on the settlement of commodity derivative instruments. We recorded a mark-to-market gain for the year ended December 31, 2023 as a result of the maturity of derivative contracts with lower strike pricing. This gain was partially offset by the realized losses on the settlement of commodity derivative instruments.
Current wording
Gain on commodity derivative instruments for the year ended December 31, 2025 included $7.2 million of mark-to-market gains and $4.9 million of gains on the settlement of commodity derivative instruments compared to $12.2 million of mark-to-market losses and $10.9 million of gains on the settlement of commodity derivative instruments for the year ended December 31, 2024. We recorded a mark-to-market gain for the year ended December 31, 2025 as a result of the maturity of derivative contracts with lower strike pricing. We recorded a mark-to-market loss for the year ended December 31, 2024 as a result of the increase in oil and natural gas strip pricing from the year ended December 31, 2023, offset by realized gains on the settlement of commodity derivative instruments.
Previous wording
Loss on commodity derivative instruments for the year ended December 31, 2022 included $16.0 million of mark-to-market gains and $53.0 million of losses on the settlement of commodity derivative instruments. We recorded a mark-to-market gain for the year ended December 31, 2022 as a result of the maturity of derivative contracts with lower strike pricing. This gain was offset by the losses on the settlement of commodity derivative instruments.
Current wording
Gain on commodity derivative instruments for the year ended December 31, 2023 included $26.4 million of mark-to-market gains and $5.5 million of losses on the settlement of commodity derivative instruments. We recorded a mark-to-market gain for the year ended December 31, 2023 as a result of the maturity of derivative contracts with lower strike pricing. This gain was partially offset by the realized losses on the settlement of commodity derivative instruments.
Previous wording
Production and ad valorem taxes for the year ended December 31, 2024 remained flat at $20.4 million, compared to $20.3 million for the year ended December 31, 2023.
Current wording
For the year ended December 31, 2024, production and ad valorem taxes remained relatively flat compared to $20.3 million for the year ended December 31, 2023.
Previous wording
Depreciation and depletion expense for the year ended December 31, 2024 was $135.1 million, an increase of $38.6 million from $96.5 million for the year ended December 31, 2023. The increase in depreciation and depletion expense was due to the MB Minerals Acquisition and the LongPoint Acquisition, which significantly increased our net capitalized oil and natural gas properties.
Current wording
Depreciation and depletion expense for the year ended December 31, 2025 was $124.6 million, a decrease of $10.5 million from $135.1 million for the year ended December 31, 2024. The decrease in depreciation and depletion expense was due to the impairment that was recorded during the year ended December 31, 2024, which significantly reduced our net capitalized oil and natural gas properties, partially offset by the Boren Acquisition, which increased our net capitalized oil and natural gas properties.
Previous wording
For the year ended December 31, 2023, depreciation and depletion expense increased by $46.4 million from $50.1 million for the year ended December 31, 2022. The increase in depreciation and depletion expense was due to the MB Minerals Acquisition and the LongPoint Acquisition, which significantly increased our net capitalized oil and natural gas properties.
Current wording
For the year ended December 31, 2024, depreciation and depletion expense increased by $38.6 million from $96.5 million for the year ended December 31, 2023. The increase in depreciation and depletion expense was due to the MB Minerals Acquisition and the LongPoint Acquisition, which significantly increased our net capitalized oil and natural gas properties.
Previous wording
Depletion is the amount of cost basis of oil and natural gas properties at the beginning of a period attributable to the volume of hydrocarbons extracted during such period, calculated on a unit-of-production basis. Estimates of proved developed reserves are a major component in the calculation of depletion. Our average depletion rate per barrel was $14.80 for the year ended December 31, 2024, an increase of $1.77 per barrel from the $13.03 average depletion rate per barrel for the year ended December 31, 2023. The increase in the depletion rate was due to the MB Minerals Acquisition and the LongPoint Acquisition, which significantly increased our net capitalized oil and natural gas properties.
Current wording
Our average depletion rate per barrel was $13.22 for the year ended December 31, 2025, a decrease of $1.58 per barrel from the $14.80 average depletion rate per barrel for the year ended December 31, 2024. The decrease in the depletion rate was due to the impairment that was recorded during the year ended December 31, 2024, which significantly reduced our net capitalized oil and natural gas properties, partially offset by the Boren Acquisition, which increased our net capitalized oil and natural gas properties.
Previous wording
For the year ended December 31, 2023, our average depletion rate per barrel increased by $4.19 per barrel from the $8.84 average depletion rate per barrel for the year ended December 31, 2022. The increase in the depletion rate was due to the MB Minerals Acquisition and the LongPoint Acquisition, which significantly increased our net capitalized oil and natural gas properties.
Current wording
For the year ended December 31, 2024, our average depletion rate per barrel increased by $1.77 per barrel from the $13.03 average depletion rate per barrel for the year ended December 31, 2023. The increase in the depletion rate was due to the MB Minerals Acquisition and the LongPoint Acquisition, which significantly increased our net capitalized oil and natural gas properties.
Previous wording
We recorded an impairment on our oil and natural gas properties of $62.1 million and $18.2 million during the years ended December 31, 2024 and 2023, respectively, primarily attributable to the decline in the 12-month average price of oil and natural. As of December 31, 2024, the 12-month average prices of oil and natural gas were $75.48 per Bbl of oil and $2.13 per Mcf of natural gas. These prices represent a 3.5% and 19.3% decrease, respectively, from the 12-month average prices of oil and natural gas as of December 31, 2023. As of December 31, 2023, the 12-month average prices of oil and natural gas were $78.22 per Bbl of oil and $2.64 per Mcf of natural gas. These prices represent a 16.5% and 58.5% decrease, respectively, from the 12-month average prices of oil and natural gas as of December 31, 2022, which were $93.67 per Bbl of oil and $6.36 per Mcf of natural gas. We did not record an impairment on our oil and natural gas properties for the year ended December 31, 2022.
Current wording
We did not record an impairment on our oil and natural gas properties for the year ended December 31, 2025.
Previous wording
Our marketing and other deductions include product marketing expense, which is a post-production expense. Marketing and other deductions for the year ended December 31, 2024 were $16.1 million, an increase of $3.5 million from $12.6 million for the year ended December 31, 2023. The increase in marketing and other deductions was primarily related to marketing and other deductions associated with the MB Minerals Acquisition and the LongPoint Acquisition, which included a full year of marketing and other deductions for the year ended December 31, 2024, compared to a partial year of marketing and other deductions for the year ended December 31, 2023.
Current wording
Marketing and other deductions for the year ended December 31, 2024 increased by $3.5 million from $12.6 million for the year ended December 31, 2023. The increase in marketing and other deductions was primarily related to marketing and other deductions associated with the MB Minerals Acquisition and the LongPoint Acquisition, which included a full year of marketing and other deductions for the year ended December 31, 2024, compared to a partial year of marketing and other deductions for the year ended December 31, 2023.
Previous wording
General and administrative expenses for the year ended December 31, 2023 increased by $6.6 million from $29.1 million for the year ended December 31, 2022. The increase in general and administrative expenses was attributable to a $2.0 million increase in unit-based compensation expense, expenses related to a one-time cash bonus paid to employees and cash general and administrative expenses resulting from an increase in our costs associated with company growth.
Current wording
General and administrative expenses for the year ended December 31, 2025 were $39.7 million, an increase of $1.2 million from $38.5 million for the year ended December 31, 2024. The increase in general and administrative expenses was attributable to an increase in costs associated with Partnership growth.
Previous wording
General and administrative expenses for the year ended December 31, 2024 were $38.5 million, an increase of $2.8 million from $35.7 million for the year ended December 31, 2023. Included within general and administrative expenses are non-cash expenses for unit-based compensation as a result of the amortization of restricted units that have been issued by us over various periods. The increase in general and administrative expenses was attributable to a $3.3 million increase in unit-based compensation expense, partially offset by a $0.4 million decrease in cash expenses.
Current wording
General and administrative expenses for the year ended December 31, 2024 increased by $2.8 million from $35.7 million for the year ended December 31, 2023. The increase in general and administrative expenses was attributable to a $3.3 million increase in unit-based compensation expense, partially offset by a $0.4 million decrease in cash expenses.
Previous wording
Interest expense for the year ended December 31, 2023 increased by $12.2 million compared to interest expense of $13.8 million for the year ended December 31, 2022. The increase in interest expense was primarily due to an increase in the weighted average interest rate on our outstanding borrowings from 5.28% at December 31, 2022 to 8.62% at December 31, 2023. Also contributing to the increase in interest expense was an increase in the overall long-term debt balance as a result of borrowings associated with the Hatch Acquisition, the MB Minerals Acquisition and the LongPoint Acquisition.
Current wording
Interest expense for the year ended December 31, 2025 was $34.5 million as compared to interest expense of $26.7 million for the year ended December 31, 2024. The increase in interest expense was primarily due to an increase in the overall debt balance as a result of additional borrowings to complete the partial redemption of the Series A preferred units and the Boren Acquisition.
Previous wording
Interest expense for the year ended December 31, 2024 was $26.7 million as compared to interest expense of $26.0 million for the year ended December 31, 2023. The increase in interest expense was attributable to an increase in the overall long-term debt balance as a result of borrowings associated with the MB Minerals Acquisition and the LongPoint Acquisition in May 2023 and September 2023, respectively. This increase was partially offset by a decrease in the weighted average interest rate on our outstanding borrowings from 8.62% at December 31, 2023 to 8.42% at December 31, 2024, coupled with the repayment of $60.0 million on our secured revolving credit facility for the year ended December 31, 2024.
Current wording
Interest expense for the year ended December 31, 2024 increased by $0.7 million compared to interest expense of $26.0 million for the year ended December 31, 2023. The increase in interest expense was attributable to an increase in the overall long-term debt balance as a result of borrowings associated with the MB Minerals Acquisition and the LongPoint Acquisition in May 2023 and September 2023, respectively. This increase was partially offset by a decrease in the weighted average interest rate on our outstanding borrowings from 8.62% at December 31, 2023 to 8.42% at December 31, 2024, coupled with the repayment of $60.0 million on our secured revolving credit facility for the year ended December 31, 2024.
Previous wording
For the year ended December 31, 2024, we recognized an income tax benefit of $0.8 million, resulting in an effective tax benefit of 7.49%, compared to income tax expense of $3.8 million for the year ended December 31, 2023, resulting in an effective tax rate of 4.34%. We recognized an income tax expense of $2.7 million for the year ended December 31, 2022, resulting in an effective tax rate of 2.05%.
Current wording
For the year ended December 31, 2025 we recognized an income tax benefit of $1.3 million, resulting in an effective tax benefit of 1.33%, compared to an income tax benefit of $0.8 million for the year ended December 31, 2024, resulting in an effective tax rate of 7.49%. We recognized an income tax expense of $3.8 million for the year ended December 31, 2023, resulting in an effective tax rate of 4.34%.
Previous wording
Our primary sources of liquidity are cash flows from operations and equity and debt financings, and our primary uses of cash are distributions to our unitholders and for growth capital expenditures, including the acquisition of mineral and royalty interests in oil and natural gas properties. On June 13, 2023, we entered into the A&R Credit Agreement (as
Current wording
Our primary sources of liquidity are cash flows from operations and equity and debt financings, and our primary uses of cash are distributions to our unitholders and for growth capital expenditures, including the acquisition of mineral and royalty interests in oil and natural gas properties. On December 16, 2025, we entered into a Second Amended and Restated Credit Agreement (the “Second A&R Credit Agreement”). See “Indebtedness” below for further discussion of our secured revolving credit facility.
Previous wording
The limited liability company agreement of the Operating Company requires it to distribute all of its cash on hand at the end of each quarter in an amount equal to its available cash for such quarter. In turn, our partnership agreement requires us to distribute all of our cash on hand at the end of each quarter in an amount equal to our available cash for such quarter. Available cash for each quarter will be determined by the Board of Directors following the end of such quarter. “Available cash,” as used in this context, is defined in our partnership agreement and in the limited liability company agreement of the Operating Company, and in “Item 5. Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities—Definition of Available Cash.” We expect that the Operating Company’s available cash for each quarter will generally equal its Adjusted EBITDA for the quarter, less cash needed for debt service and other contractual obligations and fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate, and we expect that our available cash for each quarter will generally equal our Adjusted EBITDA for the quarter (and will be our proportional share of the available cash distributed by the Operating Company for that quarter), less cash needs for debt service and other contractual obligations, tax obligations, fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate.
Current wording
The limited liability company agreement of the Operating Company requires it to distribute all of its cash on hand at the end of each quarter in an amount equal to its available cash for such quarter. In turn, our partnership agreement requires us to distribute all of our cash on hand at the end of each quarter in an amount equal to our available cash for such quarter. Available cash for each quarter will be determined by the Board of Directors following the end of such quarter. “Available cash,” as used in this context, is defined in our partnership agreement and in the limited liability company agreement of the Operating Company, and in “Item 5. Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities—Definition of Available Cash.” We expect that the Operating Company’s available cash for each quarter will generally equal its Adjusted EBITDA for the quarter, less cash needed for debt service and other contractual obligations and fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate, and we expect that our available cash for each quarter will generally equal our Adjusted EBITDA for the quarter (and will be our proportional share of the available cash distributed by the
Previous wording
The Board of Directors approved the allocation of 25% of our cash available for distribution on common units for the fourth quarter of 2024 for the repayment of $14.3 million in outstanding borrowings under our secured revolving credit facility during its determination of “available cash” for the fourth quarter of 2024. With respect to future quarters, the Board of Directors intends to continue to allocate a portion of our cash available for distribution on common units to the repayment of outstanding borrowings under our secured revolving credit facility and may allocate such cash in other manners in which the Board of Directors determines to be appropriate at the time. The Board of Directors may further change its policy with respect to cash distributions in the future.
Current wording
The Board of Directors approved the allocation of 25% of our cash available for distribution on common units for the fourth quarter of 2025 for the repayment of $13.4 million in outstanding borrowings under our secured revolving credit facility during its determination of “available cash” for the fourth quarter of 2025. With respect to future quarters, the Board of Directors intends to continue to allocate a portion of our cash available for distribution on common units to the repayment of outstanding borrowings under our secured revolving credit facility and may allocate such cash in other manners in which the Board of Directors determines to be appropriate at the time. The Board of Directors may further change its policy with respect to cash distributions in the future.
Previous wording
It is our intent, subject to market conditions, to finance acquisitions of mineral and royalty interests that increase our asset base largely through external sources, such as borrowings under our secured revolving credit facility and the issuance of equity and debt securities. For example, we issued 5,369,218 OpCo common units and an equal number of Class B units and 557,302 common units as partial consideration in connection with the MB Minerals Acquisition and we completed the LongPoint Acquisition partially with net proceeds from the Preferred Unit Transaction. The Board of Directors may choose to reserve a portion of cash generated from operations to finance such acquisitions as well. We do not currently intend to (i) maintain excess distribution coverage for the purpose of maintaining stability or growth in our quarterly distribution, (ii) otherwise reserve cash for distributions or (iii) incur debt to pay quarterly distributions, although the Board of Directors may do so if they believe it is warranted. See “Recent Developments—Fourth Quarter Distributions” above for discussion of our fourth quarter 2024 distributions.
Current wording
It is our intent, subject to market conditions, to finance acquisitions of mineral and royalty interests that increase our asset base largely through external sources, such as borrowings under our secured revolving credit facility and the issuance of equity and debt securities. For example, the purchase price paid in the Boren Acquisition was partially funded by the proceeds from the underwritten public offering of 11,500,000 common units which resulted in net proceeds of approximately $163.6 million (the “2025 Equity Offering”), we issued 5,369,218 OpCo common units and an equal number of Class B units and 557,302 common units as partial consideration in connection with the MB Minerals Acquisition and the purchase price paid in the LongPoint Acquisition was partially funded by the net proceeds from the Preferred Unit Transaction. The Board of Directors may choose to reserve a portion of cash generated from operations to finance such acquisitions as well. We do not currently intend to (i) maintain excess distribution coverage for the purpose of maintaining stability or growth in our quarterly distribution, (ii) otherwise reserve cash for distributions or (iii) incur debt to pay quarterly distributions, although the Board of Directors may do so if they believe it is warranted. See “Recent Developments—Fourth Quarter Distributions” above for discussion of our fourth quarter 2025 distributions.
Previous wording
Operating cash flow is impacted by many variables, the most significant of which are the changes in oil, natural gas and NGL production volumes due to acquisitions or other external factors and changes in prices for oil, natural gas and NGLs we receive from our operators on those volumes. Prices for these commodities are determined primarily by prevailing market conditions. Regional and worldwide economic activity, weather and other substantially variable factors influence market conditions for these products. These factors are beyond our control and are difficult to predict. Cash flows provided by operating activities for the year ended December 31, 2024 were $250.9 million, an increase of $76.6 million compared to $174.3 million for the year ended December 31, 2023.
Current wording
Operating cash flow is impacted by many variables, the most significant of which are the changes in oil, natural gas and NGL production volumes due to acquisitions or other external factors and changes in prices for oil, natural gas and NGLs we receive from our operators on those volumes. Prices for these commodities are determined primarily by prevailing market conditions. Regional and worldwide economic activity, weather and other substantially variable factors influence market conditions for these products. These factors are beyond our control and are difficult to predict. Cash flows provided by operating activities for the year ended December 31, 2025 were $246.5 million, a decrease of $4.4 million compared to $250.9 million for the year ended December 31, 2024.
Previous wording
Cash flows provided by operating activities for the year ended December 31, 2023 increased by $7.7 million compared to $166.6 million for the year ended December 31, 2022.
Current wording
Cash flows provided by operating activities for the year ended December 31, 2024 increased by $76.6 million compared to $174.3 million for the year ended December 31, 2023.
Previous wording
Cash flows used in investing activities for the year ended December 31, 2024 were $0.2 million compared to $246.7 million for the year ended December 31, 2023. For the year ended December 31, 2024, cash flows used in investing activities included the purchase of equipment.
Current wording
Cash flows used in investing activities for the year ended December 31, 2025 were $223.5 million compared to $0.2 million for the year ended December 31, 2024. For the year ended December 31, 2025, cash flows used in investing activities primarily related to the Boren Acquisition. For the year ended December 31, 2024, cash flows used in investing activities included the purchase of equipment.
Previous wording
Cash flows used in financing activities were $247.5 million for the year ended December 31, 2024 compared to $78.4 million of cash flows provided by financing activities for the year ended December 31, 2023. Cash flows used in financing activities for the year ended December 31, 2024 consists primarily of $187.2 million of distributions paid to holders of common units, OpCo common units, Series A preferred units and Class B units, $60.0 million used to repay borrowings under our secured revolving credit facility, $4.9 millionof restricted units repurchased for tax withholding and $0.3 million paid in connection with the redemption of Class B units, partially offset by$5.0 million of additional borrowings under our secured revolving credit facility.
Current wording
Cash flows used in financing activities were $13.2 million for the year ended December 31, 2025 compared to $247.5 million of cash flows provided by financing activities for the year ended December 31, 2024. Cash flows used in financing activities for the year ended December 31, 2025 consists primarily of$179.9 million used to redeem a portion of the Series A preferred units,$187.3 million of distributions paid to holders of common units, OpCo common units, Series A preferred units and Class B units, $493.3 million used to repay borrowings under our secured revolving credit facility and $5.1 millionof restricted units repurchased for tax withholding, partially offset by $163.6 million in proceeds from the 2025 Equity Offering and$695.6 million of additional borrowings under our secured revolving credit facility.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
states and in every major onshore basin across the continental United States and include ownership in over 133,000 gross wells, including over 53,000 wells in the Permian Basin.
Current report — wording carried from elsewhere
General and administrative expenses are costs not directly associated with the production of oil, natural gas and NGLs and include the cost of executives and employees and related benefits, office expenses and fees for professional
Current report — wording carried from elsewhere
Gain (Loss) on Commodity Derivative Instruments
Current report — wording carried from elsewhere
Production and ad valorem taxes for the years ended December 31, 2025 and 2024 remained flat at $20.4 million.
Current report — wording carried from elsewhere
We recorded an impairment on our oil and natural gas properties of $62.1 million and $18.2 million during the years ended December 31, 2024 and 2023, respectively, primarily attributable to the decline in the 12-month average price of oil and natural gas.
Current report — wording carried from elsewhere
Our marketing and other deductions include product marketing expense, which is a post-production expense. Marketing and other deductions for the year ended December 31, 2025 remained relatively flat at $16.4 million compared to $16.1 million for the year ended December 31, 2024.
Current report — wording carried from elsewhere
Operating Company for that quarter), less cash needs for debt service and other contractual obligations, tax obligations, fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate.
Current report — wording carried from elsewhere
Even though we are organized as a limited partnership under state law, we are treated as a corporation for United States federal income tax purposes. Accordingly, we are subject to United States federal income tax at regular corporate
Current report — wording carried from elsewhere
under changing economic conditions. As a result, material revisions to existing reserve estimates occur from time to time, and reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. Although every reasonable effort is made to ensure that reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various properties increase the likelihood of significant changes in these estimates. If such changes are material, they could significantly affect future amortization of capitalized costs and result in impairment of assets that may be material. Revisions of previous quantity estimates accounted for the change in the total standardized measure of our reserves from December 31, 2024 to December 31, 2025, and were primarily related to technical revisions due to changes in commodity prices, historical and projected performance and other factors. Additionally, we continue to not intend to book PUD reserves.
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
results of any acquisition until after the acquisition closes, and we will not know the long term results for some time thereafter.
Previous report — wording carried elsewhere
Our lease bonus and other income for the year ended December 31, 2023 increased by $2.5 million compared to $3.1 million for the year ended December 31, 2022. The increase in lease bonus and other income is primarily related to legal settlements received during the year ended December 31, 2023.
Previous report — wording carried elsewhere
(Loss) Gain on Commodity Derivative Instruments
Previous report — wording carried elsewhere
We do not currently maintain a material reserve of cash for the purpose of maintaining stability or growth in our quarterly distribution, nor do we intend to incur debt to pay quarterly distributions, although the Board of Directors may change this policy.
Previous report — wording carried elsewhere
Cash flows provided by financing activities for the year ended December 31, 2023 consists of $314.0 million in net proceeds from the issuance of Series A preferred units, $201.1 million of additional borrowings under our secured revolving credit facility, $110.7 million in proceeds from the 2023 Equity Offering, and $0.3 million in Class B
Previous report — wording carried elsewhere
filing status of a unitholder for 2024. Our estimates regarding treatment of our distributions are based on currently available information only and are subject to change, including with respect to prior quarters.
Previous report — wording carried elsewhere
the total standardized measure of our reserves from December 31, 2023 to December 31, 2024, and were primarily related to technical revisions due to changes in commodity prices, historical and projected performance and other factors. Additionally, we continue to not intend to book PUD reserves.