Kimbell Royalty Partners, LP (NYSE: KRP) extended and reaffirmed its secured revolving credit facility, keeping the borrowing base and total commitments at $625 million while pushing the maturity date to December 16, 2030. The extension adds nearly three years of liquidity beyond the previous June 13, 2027 maturity, giving the company a longer‑term source of capital to support its disciplined acquisition strategy.
The revised agreement also increases the maximum facility size from $750 million to $1.5 billion, reduces the pricing grid by 25 basis points, removes a 10‑basis‑point credit‑spread adjustment, and improves the overall interest spread by 35 basis points. Sixteen bank partners remain on the facility, underscoring strong lender confidence in Kimbell’s diversified asset base.
The extended credit line provides Kimbell with the flexibility to make counter‑cyclical royalty purchases and pursue new acquisitions without raising leverage. By maintaining a net debt/EBITDA ratio near 1.6×, the company preserves a healthy balance‑sheet profile while positioning itself to capitalize on opportunities in the fragmented U.S. mineral market. The lower borrowing costs and expanded facility size also reduce refinancing risk as the company navigates volatile commodity prices.
Kimbell’s financial position remains robust: as of June 30, 2025, the company had $462.1 million of debt under the facility and a current ratio of 5.39. Its portfolio includes more than 131,000 gross wells spread across 28 states, providing diversified cash‑flow streams that support the firm’s asset‑light model.
CFO Davis Ravnaas said the refinancing “further strengthens our capital structure by providing lower borrowing costs and enhanced financial flexibility,” and highlighted the confidence shown by the 16 existing bank partners. The reaffirmation validates the quality, scale, and sustainability of Kimbell’s diversified asset base, reinforcing management’s focus on disciplined growth and prudent financial stewardship.
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