What changed in this filing

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Item 2. Properties

2026-02-24 compared with 2025-02-20 · 27 added, 16 removed, 85 unchanged (34% of the section changed)

11 unchanged sentences

Consequently, the exact number of wells producing from or drilling on the Royalty Properties at a given point in time is not easily determinable.

The primary manner by which we will become aware of activity on the Royalty Properties is the receipt of division orders or other correspondence from operators or purchasers.

The primary manner by which we will become aware of activity on the Royalty Properties is receipt of division orders or other correspondence from operators or purchasers.

Acreage Summary

13 unchanged sentences

Leasing Activity

We received $0.3 million during 2024 attributable to lease bonus on 19 leases or extension of existing leases in lands located in nine counties in four states.

We received $4.0 million during 2025 attributable to lease bonuses from new leases, extensions of existing leases, and pooling elections.

These leases reflected bonus payments ranging up to $15,000/acre and initial royalty terms ranging up to 25%.

The following table sets forth a summary of leases and pooling elections consummated during 2022, 2023 and 2024.

The following table sets forth a summary of new leases, lease extensions, and pooling elections consummated during 2023, 2024 and 2025.

Number of States

4 unchanged sentences

Based on net acreage weighted average.

Lease Bonus excludes proceeds of $5.4 million from assignment of leasehold in 2025.

Payments received for shut-in and delay rental payments, coal royalty, surface use agreements, litigation judgments and settlement proceeds are reflected in our accompanying consolidated financial statements in other operating revenues.

2 unchanged sentences

We receive monthly payments from the NPI equaling 96.97% of the net profits realized by the Operating Partnership from these properties in the preceding month.

In the event costs, including budgeted capital expenditures, exceed revenues on a cash basis in a given month for properties subject to the NPI, no payment is made, and any deficit is accumulated and reflected in the following month's calculation of net profit.

In the event the NPI has a deficit of cumulative revenue versus cumulative costs, the deficit will be borne solely by the Operating Partnership.

From a cash perspective, as of December 31, 2024, the Minerals NPI was in a surplus position and had outstanding capital commitments, primarily in the Bakken region, equaling cash on hand of $3.5 million.

In the event that costs, including budgeted capital expenditures, exceed revenues on a cash basis in a given month for properties subject to the NPI, no payment is made, and any deficit is accumulated and reflected in the following month's calculation of net profit.

In the event that the NPI has a deficit of cumulative revenue versus cumulative costs, the deficit will be borne solely by the Operating Partnership.

From a cash perspective, as of December 31, 2025, the Minerals NPI had outstanding capital commitments, primarily in the Bakken region, of $8.5 million.

Acreage Summary

19 unchanged sentences

The following table sets forth first payments received for new wells on our Royalty Properties and NPI properties during 2025.

The majority of the activity was concentrated in the Permian Basin, Bakken region, South Texas, and the Rockies.

The majority of the activity was concentrated in the Permian Basin, the Rockies, the Bakken region, and South Texas.

Included in the table below are wells in which we own both a royalty interest and a net profits interest.

3 unchanged sentences

Number of Counties/Parishes

130 gross and less than one net well additions were attributable to acquisitions closed during 2023.

These well additions were in nine counties and parishes and three states.

1,110 gross and eight net well additions were attributable to acquisitions closed during 2024.

These well additions were in 15 counties in three states.

We anticipate receiving more first payments for new wells attributable to acquisitions closed during 2024 in the first half of 2025.

224 gross and 1.5 net well additions were attributable to acquisitions closed during 2024.

These well additions were in 13 counties and three states.

26 gross and 1.4 net well additions were attributable to the acquisition closed during the third quarter of 2025.

These well additions were in Adams County, Colorado.

We anticipate receiving more first payments for new wells attributable to the acquisition closed during the third quarter of 2025 in the first half of 2026.

We have and will continue to consider a range of transaction structures for our unleased mineral interests including leasing to third parties, working interest participation through the Operating Partnership, electing non-consent under State laws, or a combination thereof.

Oil and Natural Gas Reserves

The below table reflects the Partnership's proved developed producing reserves at December 31, 2024.

The below table reflects the Partnership's proved developed producing reserves as of December 31, 2025, 2024, and 2023.

The reserves are based on the reports of independent petroleum engineering consulting firm LaRoche Petroleum Consultants, Ltd.

2 unchanged sentences

Copies of the reports prepared by LPC are attached hereto as Exhibits 99.1 and 99.2.

The Partnership’s petroleum engineer and CEO work closely with our third party reserve engineers to ensure integrity, accuracy, and timeliness of the data used to calculate our estimated proved developed producing reserves.

Our petroleum engineer met with our third party engineers periodically during the reserve report process to discuss the assumptions and methods used in the proved reserve estimation process.

The Partnership does not have information that would be available to a company with oil and natural gas operations because detailed information is not generally available to owners of royalty interests.

The Partnership’s petroleum engineer provides production and accounting information to our independent petroleum engineering consulting firm who extrapolates from such information estimates of the reserves attributable to the Royalty Properties and NPI based on their expertise in the oil and natural gas fields where the Royalty Properties and NPI are situated, as well as publicly available information.

Ensuring compliance with generally accepted petroleum engineering and evaluation methods and procedures is the responsibility of the Partnership's Chief Executive Officer (“CEO”).

We provide historical information to the third party reserve engineers for our properties such as ownership interest, oil and natural gas production, realized commodity pricing, and production and operating costs.

The third party reserve engineers extrapolate from this information estimates of the proved reserves attributable to the Royalty Properties and NPI based on their expertise in the oil and natural gas fields where the Royalty Properties and NPI are situated, as well as publicly available information.

Ensuring compliance with generally accepted petroleum engineering and evaluation methods and procedures is the responsibility of the Partnership’s CEO.

Our CEO has a bachelor’s degree in Petroleum Engineering from the University of Alberta and has worked in the upstream oil and natural gas business in various capacities since 1996.

Our proved reserve estimates were prepared in accordance with our internal control procedures.

During the period covered by the reserve report, our petroleum engineer met with LPC to review properties and discuss evaluation methods and assumptions used in the proved reserves estimates, in accordance with our prescribed internal control procedures.

Our internal controls over the reserves estimation process include verification of input data used in LPC’s reserves evaluation software as well as reviews by our petroleum engineer and CEO, which include the following:

Review of ownership interests in the reserves database against our internal ownership data;

Review of historical realized commodity prices and differentials from index prices compared to the differentials used in the reserves database;

Review of actual historical production volumes compared to projections in the reserve report;

Review of preliminary reserve estimates by our CEO with our petroleum engineer

Summary of Oil and Natural Gas Reserves as of Fiscal Year-End

8 unchanged sentences

Title to Properties

We believe we have satisfactory title to all of our assets.

We believe that we have satisfactory title to all of our assets.

Record title to essentially all of our assets has undergone the appropriate filings in the jurisdictions in which such assets are located.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties