#United States #Fort Worth #Oil and Gas #Credit Facility #Kimbell Royalty

Kimbell Royalty Partners Enhances Financial Stability with Reaffirmation of Credit Facility

Kimbell Royalty Partners, LP (NYSE: KRP), a prominent entity in the oil and gas sector, recently announced an important step in enhancing its financial structure. On December 16, 2025, the company confirmed the reaffirmation of its $625 million secured revolving credit facility. This news comes as part of their scheduled Fall 2025 redetermination and signals a commitment to maintaining a strong financial foundation amidst fluctuating market conditions.

Kimbell’s decision to extend the maturity date of its credit facility from June 13, 2027, to December 16, 2030, marks a significant five-year commitment from its existing lenders. This move not only provides Kimbell with additional time but also establishes a stable financial framework that will support its ongoing operations and future investment strategies.

Key Terms of the Credit Facility

The recent modifications to the credit agreement reflect favorable adjustments that enhance Kimbell's financial flexibility. Key highlights of the amended and restated credit agreement include:

• - Reaffirmation of borrowing base and total commitments at $625 million: This reassurance from Kimbell’s lenders signifies their confidence in the company’s asset quality and sustainability.
• - Maturity extension to December 2030: This extension allows Kimbell to strategize its financial planning over a longer horizon.
• - Reduced pricing grid: By lowering the pricing grid by 25 basis points and removing the 10 basis point Credit Spread Adjustment, Kimbell has improved its interest rate spreads by a combined total of 35 basis points, a noteworthy move to reduce capital costs.
• - Increased maximum facility size: The maximum facility size has been raised from $750 million to an impressive $1.5 billion, affording Kimbell greater flexibility for future investments and acquisitions.
• - Enhanced financial covenants: With increased flexibility under its financial covenants, Kimbell is well-equipped to adapt to market changes and capitalize on new opportunities.

Implications for Kimbell Royalty Partners

Davis Ravnaas, President and Chief Financial Officer of Kimbell Royalty GP, LLC, expressed his optimism regarding the refinancing. He noted that it fortifies their capital structure, helping to lower borrowing costs while simultaneously providing enhanced financial flexibility. He acknowledged the unwavering support from their 16 existing banking partners, highlighting the collaborative relationship that is fundamental to Kimbell's success.

The unanimous reaffirmation of the borrowing base reflects the sustained quality and scale of Kimbell's diversified asset base, which spans every major oil and natural gas basin across the lower 48 states. This measure validates the company's strategic decisions and the robustness of its operations in the oil and gas sector.

Kimbell Royalty Partners, headquartered in Fort Worth, Texas, is recognized within the industry for its extensive range of mineral and royalty interests over approximately 17 million gross acres in 28 states. The company operates in a sector characterized by its cyclic nature and external pressures, making strategic financial planning essential for long-term success.

Looking Ahead

As Kimbell enters a new chapter with its renewed credit facility, the company is strategically positioned to continue its role as a leading consolidator in the oil and natural gas royalty industry. The extended maturity and decreased cost of capital offer Kimbell opportunities to enhance growth, improve operational efficiency, and potentially increase its asset base through prudent investments. As the market continues to evolve, Kimbell Royalty Partners remains committed to maintaining a solid financial footing and leveraging its expansive resource portfolio for sustainable success.

For more information about Kimbell Royalty Partners and their exciting developments, visit www.kimbellrp.com.