Kimbell Royalty Partners, LP announced that it has agreed to acquire (the Acquisition) mineral and royalty interests from an undisclosed seller (the Seller) in an all-cash transaction valued at approximately $57 million, subject to purchase price adjustments and other customary closing adjustments. Kimbell intends to raise the proceeds for the purchase price through a combination of an underwritten public offering of common units (announced substantially concurrently with this release) and borrowings under its revolving credit facility. Kimbell estimates that, as of November 1, 2021, the Seller's royalty assets produced 700 Boe/d (6:1) (240 Bbl/d of oil, 123 Bbl/d of NGLs and 2,021 Mcf/d of natural gas) across a diverse property set with over 26,000 gross producing wells concentrated in the Permian (39%), Mid-Continent (31%) and Haynesville (14%) basins. The Board of Directors of Kimbell's general partner and the governing bodies of the Seller have each unanimously approved the Acquisition, which is expected to close in the fourth quarter of 2021, subject to customary closing conditions. The effective date of the Acquisition is expected to be November 1, 2021. Acquisition Highlights: Acquisition is expected to be immediately accretive to distributable cash flow per unit; Acquisition estimated to include 700 Boe/d of production (6:1),3 comprising approximately 34% oil, 48% natural gas and 18% NGLs, which is expected to increase Kimbell's average daily net production to 14,783 Boe/d; Estimated gross well count of over 26,000 gross producing locations and 5.9 MBoe in total proved reserves, reflecting a purchase price of approximately $9.66 per total proved Boe; Extremely shallow decline assets (9%) enhance KRP's already peer-leading five-year PDP decline rate (12%) and provides for stable cash flow visibility; Highly complementary acquired asset base expected to enhance Kimbell's cash flow stability, while also providing upside for Lower 48 activity increases; Ideal mix of conventional (62% of PDP reserves) and unconventional (38% of PDP reserves) resources across premier basins in the U.S.; Attractive purchase price at 6.1x cash flow and high-teens cash flow yield; Leverage neutral transaction maintains conservative balance sheet metrics with 1.7x net leverage and an expected $90 million of liquidity following transaction close; 3 rigs currently drilling on major acreage; Largest concentration of acreage acquired (39% of total proved reserves) located in the Permian Basin. Permian Basin highlights: Denver Unit in Gaines County: Premier conventional oilfield in the Lower 48, which has already produced over 1 billion barrels of oil; Represents 33% of total asset value on a PDP PV-10 basis, largely driven by Occidental EOR development; High margin asset base is resilient to commodity price fluctuations and has a 20+ year track record of steady development and stability; Acreage is also concentrated in the Mid-Continent, Haynesville, and Bakken, among others; Expected to further reduce Kimbell's general and administrative expense, net of non-cash unit-based compensation per Boe from $3.09/Boe to $2.95/Boe; Expected to provide additional tax basis bolstering Kimbell's advantageous tax position.