Kimbell Royalty Partners Reaffirms $625 Million Credit Facility and Extends Maturity

Rhea-AI Summary

Kimbell Royalty Partners (NYSE: KRP) completed its Fall 2025 redetermination and amended its secured revolving credit facility on Dec 16, 2025. Lenders unanimously reaffirmed the $625 million borrowing base and total commitments and extended the facility maturity to Dec 16, 2030 (5-year tenor). Key changes: a 25 bp reduction in the pricing grid, removal of a 10 bp credit spread adjustment (total improvement 35 bp), increase of maximum facility size from $750M to $1.5B, and expanded covenant flexibility. The amendment reflects continued support from 16 bank partners and is presented as strengthening Kimbell's capital structure and financial flexibility.

Positive

• Borrowing base reaffirmed at $625 million
• Maturity extended to Dec 16, 2030 (5-year tenor)
• Interest spreads improved by 35 basis points
• Maximum facility size increased to $1.5 billion
• Support from 16 existing bank partners

Negative

• No increase in current committed borrowing beyond $625 million

Key Figures

Borrowing base & commitments $625 million Secured revolving credit facility reaffirmed size

Maturity extension December 16, 2030 Facility maturity extended from June 13, 2027 (5-year tenor)

Pricing grid reduction 25 basis points Reduction in pricing grid on the facility

Credit spread adjustment removed 10 basis points Elimination of prior Credit Spread Adjustment

Spread improvement 35 basis points Combined benefit from pricing grid and CSA changes

Maximum facility size $1.5 billion New maximum size; increased from $750 million

Prior maximum size $750 million Previous maximum facility size before amendment

Gross wells 131,000 wells Oil and natural gas mineral and royalty interests across 28 states

Market Reality Check

$11.50 Last Close

Volume Volume 1,195,527 is 1.85x the 20-day average of 646,975, indicating elevated trading interest ahead of this refinancing news. high

Technical Price at $11.50 is trading below the 200-day MA of $13.48 and about 31% under the 52-week high of $16.59.

Peers on Argus

While KRP was down 3.99%, key peers like DMLP, MNR, BTE, TALO and VET also declined between about 1.0% and 3.48%, suggesting broader weakness in oil & gas E&P, though no synchronized momentum signal was flagged.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	+0.3%	Reported Q3 2025 results with solid net income and distribution declaration.
Sep 25	Earnings call scheduling	Neutral	+1.9%	Announced Q3 2025 earnings release date and investor conference call details.
Aug 07	Q2 2025 earnings	Positive	-2.3%	Released strong Q2 2025 results with robust production and cash distribution.
Jun 17	Earnings call scheduling	Neutral	+1.2%	Set Q2 2025 earnings release date and conference call logistics for investors.

Pattern Detected

Recent earnings releases generally saw modest moves, with one instance of a selloff on positive results, suggesting occasionally muted or contrarian reactions to fundamentally supportive news.

Recent Company History

Over the last few months, Kimbell reported solid Q2 and Q3 2025 results, including Q3 net income of about $22.3M, Q3 revenues of $76.8M–$80.6M, and Q3 consolidated Adjusted EBITDA of $62.3M. The partnership repeatedly emphasized high run‑rate production above 25,000 Boe/d and active rig counts in the mid‑80s. Regular distributions around $0.35–$0.38 per unit and revolver repayments highlighted a focus on capital returns and balance sheet management, which this credit facility amendment further supports.

Market Pulse Summary

This announcement details a strengthened capital structure, with Kimbell’s lenders unanimously reaffirming a $625 million borrowing base, extending facility maturity to December 2030, and improving interest spreads by 35 basis points. The maximum facility size was doubled to $1.5 billion, adding flexibility alongside increased covenant and basket capacity. In context of prior quarters focused on distributions and revolver repayment, investors may watch future borrowings, leverage trends, and any acquisitions funded under this expanded facility.

Key Terms

secured revolving credit facility financial

"amendment and restatement of its secured revolving credit facility."

A secured revolving credit facility is a line of borrowing that a company can draw, repay and redraw up to an agreed limit, similar to a business credit card, with the loan backed by specific assets as collateral. It matters to investors because it provides flexible short-term cash when needed and affects a company’s financial strength and risk: having a secured revolver can lower borrowing costs but gives lenders claims on pledged assets if the company can’t repay.

borrowing base financial

"reaffirmed the borrowing base and total commitments of $625 million"

A borrowing base is the amount a lender will allow a company to borrow based on the value of assets the company offers as security, typically things like accounts receivable and inventory. It matters to investors because it sets a practical ceiling on short-term financing and influences a company’s liquidity and risk: if the borrowing base falls, the company may lose access to cash or be forced to sell assets, which can affect operations and share value.

pricing grid financial

"Reduced pricing grid by 25 basis points and removed 10 basis point Credit"

A pricing grid is a simple table that lays out possible prices and related outcomes for a stock offering, debt issue or product line—think of it as a menu showing different price points and what each one delivers. For investors it matters because the grid makes it easy to compare scenarios—how much cash will be raised, how many shares might be issued, or how revenue could change—so they can judge value, dilution and risk before deciding to buy.

basis points financial

"Reduced pricing grid by 25 basis points and removed 10 basis point"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

Reduction in Pricing Grid Lowers Cost of Capital
Maximum Facility Size Increased from $750 million to $1.5 billion

FORT WORTH, Texas, Dec. 16, 2025 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and natural gas mineral and royalty interests in over 131,000 gross wells across 28 states, today announced the successful completion of its scheduled Fall 2025 redetermination and concurrent amendment and restatement of its secured revolving credit facility. 

Kimbell's existing lenders unanimously reaffirmed the borrowing base and total commitments of $625 million and the maturity date of the secured revolving credit facility was extended from June 13, 2027 to December 16, 2030.

Key terms of the amended and restated credit agreement include:

• Borrowing base and total commitments reaffirmed at $625 million
• Maturity extended to December 2030 (5-year tenor)
• Reduced pricing grid by 25 basis points and removed 10 basis point Credit Spread Adjustment, improving Kimbell's interest rate spreads by a combined 35 basis points
• Maximum facility size increased from $750 million to $1.5 billion
• Increased flexibility under financial covenants and permitted baskets

"This refinancing further strengthens our capital structure by providing lower borrowing costs and enhanced financial flexibility," said Davis Ravnaas, President and Chief Financial Officer of Kimbell Royalty GP, LLC, Kimbell's general partner.  "We appreciate the ongoing confidence shown by our 16 existing bank partners, and their commitment to supporting Kimbell's role as a leading consolidator in the oil and natural gas royalty sector.  The unanimous reaffirmation of our borrowing base validates the quality, scale and sustainability of our diversified asset base, which spans every major oil and natural gas basin in the Lower 48."

About Kimbell Royalty Partners LP

Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in approximately 17 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 131,000 gross wells. To learn more, visit http://www.kimbellrp.com.

Forward-Looking Statements

This news release includes forward-looking statements, in particular statements relating to Kimbell's financial, operating and production results and prospects for growth (including financial and operational guidance), drilling inventory, growth potential, identified locations and all other estimates and predictions resulting from Kimbell's portfolio review, the tax treatment of Kimbell's distributions, changes in Kimbell's capital structure, future natural gas and other commodity prices and changes to supply and demand for oil, natural gas and NGLs. These and other forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of acquisitions are not realized and uncertainties relating to Kimbell's business, prospects for growth and acquisitions and the securities markets generally, as well as risks inherent in oil and natural gas drilling and production activities, including risks with respect to potential declines in prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause operators to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow, risks relating to the impairment of oil and natural gas properties, risk related to changes in U.S. trade policy and the impact of tariffs, risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and natural gas prices, risks relating to Kimbell's ability to meet financial covenants under its credit agreement or its ability to obtain amendments or waivers to effect such compliance, risks relating to Kimbell's hedging activities, risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations, risks relating to delays in receipt of drilling permits, risks relating to unexpected adverse developments in the status of properties, risks relating to borrowing base redeterminations by Kimbell's lenders, risks relating to the absence or delay in receipt of government approvals or third-party consents, risks relating to acquisitions, dispositions and drop downs of assets, risks relating to Kimbell's ability to realize the anticipated benefits from and to integrate acquired assets, including the Acquired Production, risks relating to tax matters and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Except as required by law, Kimbell undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Kimbell's filings with the SEC.

Contact:

Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600

View original content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-reaffirms-625-million-credit-facility-and-extends-maturity-302643886.html

SOURCE Kimbell Royalty Partners, LP

FAQ

What did Kimbell Royalty Partners (KRP) announce on Dec 16, 2025 about its credit facility?

Kimbell announced a redetermination and amendment that reaffirmed a $625 million borrowing base and extended maturity to Dec 16, 2030.

How did KRP's amendment change borrowing costs in the Dec 2025 facility update?

The amendment reduced the pricing grid by 25 basis points and removed a 10 basis point credit spread adjustment, improving spreads by 35 bps.

Did Kimbell increase its available credit capacity in the Dec 2025 amendment (KRP)?

Yes; the amendment raised the maximum facility size from $750 million to $1.5 billion.

How long is the new KRP credit facility tenor after the Dec 16, 2025 amendment?

The amended facility maturity is Dec 16, 2030, representing a five-year tenor from the amendment date.

How many banks supported Kimbell's Dec 2025 credit amendment (KRP)?

The company reported unanimous reaffirmation from 16 existing bank partners.