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2025 Overview
−Removed: Our results during 2024 were mainly driven by increases in Royalty Properties sales volumes from continued drilling activity in the Permian Basin and Bakken region and incremental production from 2023 and 2024 acquisitions, offset by decreases in NPI sales volumes, leasing activity, and lower industrywide realized natural gas sales prices versus 2023.
+Added: Our results during 2025 were mainly driven by lower industrywide realized oil prices versus 2024, decreases in NPI properties oil and natural gas sales volumes due to lower drilling activity in the Bakken region, and increased capital expenditures deducted under the NPI calculation, offset by increases in Royalty Properties oil and natural gas sales volumes from incremental production from 2024 and 2025 acquisitions and continued drilling activity in the Rockies, increased leasing activity, and higher industrywide realized natural gas sales prices versus 2024.
Significant results include the following:
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Distributions of $132.0 million to our limited partners;
−Removed: Acquisition of mineral, royalty, and overriding royalty interests in producing and non-producing oil and natural gas properties representing approximately 14,225 net mineral acres located in 14 counties across New Mexico and Texas in exchange for 6,721,144 common units representing limited partnership interests in the Partnership valued at $202.6 million and issued pursuant to the Partnership's registration statements on Form S-4;
−Removed: Acquisition of overriding royalty interests representing approximately 1,204 net royalty acres located in Weld County, Colorado in exchange for 530,000 common units representing limited partnership interests in the Partnership valued at $16.0 million and issued pursuant to the Partnership's registration statement on Form S-4;
−Removed: Acquisition of mineral interests representing approximately 1,485 net royalty acres located in two counties in Colorado in exchange for 505,369 common units representing limited partnership interests in the Partnership valued at $17.0 million and issued pursuant to the Partnership's registration statement on Form S-4;
−Removed: First payments on 1,943 gross and 12 net new wells on our Royalty Properties, of which 1,240 gross and eight net wells were attributable to our 2023 and 2024 acquisitions, and 146 gross and two net new wells on our NPI properties.
−Removed: The wells were located in 53 counties and parishes in eight states with the majority of the activity concentrated in the Permian Basin, Bakken region, South Texas, and the Rockies.
+Added: Acquisition of mineral interests representing approximately 3,050 net royalty acres located in Adams County, Colorado in exchange for 915,694 common units representing limited partnership interests in the Partnership valued at $23.0 million and issued pursuant to the Partnership's registration statement on Form S-4;
+Added: First payments on 761 gross and 5 net new wells on our Royalty Properties, of which 250 gross and three net wells were attributable to our 2024 and 2025 acquisitions, and on 108 gross and one net new wells on our NPI properties.
+Added: The wells were located in 43 counties and parishes in seven states with the majority of the activity concentrated in the Permian Basin, the Rockies, and the Bakken region.
Included in these totals are wells in which we own both a royalty interest and a net profits overriding royalty interest.
Wells with such overlapping interests are counted in both categories;
+Added: Assignment of leasehold interest in Upton County, Texas, with proceeds totaling $5.4 million;
+Added: Lease bonus of $4.0 million includes consummation of leases or extension of existing leases of our mineral interests in undeveloped properties located in 13 counties in five states.
+Added: Of the $4.0 million, $3.6 million was attributable to an extension of an existing lease on 243 net acres in two tracts of land in Reagan County, Texas for $15,000 per acre and a 25% royalty.
Critical Accounting Estimates
−Removed: The Partnership’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United State (“U.S.
+Added: The Partnership’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S.
GAAP”), which requires us to make certain estimates and apply judgments that affect our financial position and results of operations as reflected in our consolidated financial statements.
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Comparison of the years ended December 31, 2025 and 2024
−Removed: The increase in oil sales volumes attributable to our Royalty Properties during 2024 versus 2023 is primarily a result of higher suspense releases on new wells in the Permian Basin and Bakken region, suspense releases on first payments in the Permian Basin from wells acquired in the third quarter of 2024, higher suspense releases on first payments in the Rockies from wells acquired in the third quarter of 2024 and first quarters of 2024 and 2022, and increased baseline production in South Texas from wells acquired in 2023 and 2022, partially offset by lower suspense releases from first payments on acquired wells in South Texas and decreased baseline production in the Permian Basin, Bakken region, and the Rockies, particularly in the fourth quarter of 2024 compared to the same period of 2023.
−Removed: The increase in natural gas sales volumes attributable to our Royalty Properties during 2024 compared to 2023 is primarily attributable to higher baseline production and higher suspense releases on new wells in the Permian Basin, suspense releases on first payments in the Permian Basin from wells acquired in the third quarter of 2024, higher suspense releases on first payments in the Rockies from wells acquired in the first and third quarters of 2024, higher suspense releases on first payments and increased baseline production in East Texas from wells acquired in 2022, and increased baseline production in the Mid-Continent, partially offset by decreased baseline production and lower suspense releases from first payments on acquired wells in South Texas and decreased production from legacy wells in the Rockies, Fayetteville Shale, Barnett Shale, and Southeast.
−Removed: The decrease in oil sales volumes attributable to our NPI properties during 2024 versus 2023 is primarily the result of lower suspense releases on new wells in the Permian Basin, partially offset by increased baseline production in the Permian Basin and Bakken region and higher suspense releases on new wells in the Bakken region.
−Removed: The decrease in natural gas sales volumes attributable to our NPI properties during 2024 compared to 2023 is primarily the result of lower suspense releases on new wells in the Permian Basin and Mid-Continent, partially offset by higher suspense releases on new wells in the Bakken region and increased baseline production in the Permian Basin, Bakken region, and Mid-Continent.
−Removed: The decrease in lease bonus revenue from 2023 to 2024 is primarily attributable to receipt of $11.8 million from a lease and lease amendment transaction executed in 2023, wherein the Partnership leased 243 net acres in two tracts of land in Reagan County, Texas for $30,000 per acre and a 25% royalty and amended an existing lease on two separate tracts of land also totaling 243 net acres in Reagan County, Texas for $18,750 per acre.
−Removed: Production taxes and operating expenses increased a combined 19% from 2023 to 2024.
−Removed: The increase is primarily a result of higher proportionate oil production taxes due to higher oil sales revenue attributable to our Royalty Properties and higher proportionate post-production costs, such as compression, transportation, processing, and marketing, due to higher oil and natural gas sales volumes attributable to our Royalty Properties.
+Added: The increase in oil sales volumes attributable to our Royalty Properties during 2025 versus 2024 is primarily a result of incremental increases in baseline production in the Permian Basin and Rockies from wells acquired in 2024 and 2025 and higher suspense releases on new wells on legacy acreage in the Rockies, partially offset by lower suspense releases on new wells on legacy acreage in the Permian Basin and Bakken region and decreased baseline production from legacy wells in the Permian Basin.
+Added: The increase in natural gas sales volumes attributable to our Royalty Properties during 2025 versus 2024 is primarily a result of incremental increases in baseline production in the Permian Basin and Rockies from wells acquired in 2024 and 2025 and higher suspense releases on new wells on legacy acreage in the Rockies, partially offset by lower suspense releases on new wells on legacy acreage in the Permian Basin and lower suspense releases on new wells on legacy acreage and decreased baseline production from legacy wells in the Mid-Continent and East Texas.
+Added: The decrease in oil and natural gas sales volumes attributable to our NPI properties during 2025 versus 2024 is primarily the result of decreased baseline production and lower suspense releases on new wells in the Permian Basin and Bakken region, partially offset by increased suspense releases on existing wells in the Permian Basin in the second and third quarters of 2025 versus 2024.
+Added: The increase in lease bonus revenue from 2024 to 2025 is primarily attributable to receipt of $3.6 million in 2025 from an extension of an existing lease, wherein the Partnership leased 243 net acres in two tracts of land in Reagan County, Texas for $15,000 per acre, and receipt of $5.4 million from an assignment of leasehold interests.
+Added: Production taxes and operating expenses attributable to our Royalty Properties increased a combined 9% from 2024 to 2025.
+Added: The increase is primarily a result of higher proportionate natural gas production taxes and post-production costs, such as compression, transportation, processing, and marketing, due to higher natural gas sales revenue and volumes and higher ad valorem taxes, partially offset by lower proportionate oil production taxes due to lower oil sales revenue.
Depreciation, depletion and amortization increased 56% from 2024 to 2025.
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General and administrative expenses increased 12% from 2024 to 2025.
−Removed: The increase is primarily attributable to higher compensation expenses due to market adjustments, increased bonuses and an expanded Equity Incentive Program designed for employee retention, and increased legal and other professional services fees, partially offset by a decrease resulting from one-time, non-recurring professional services expenses of $1.2 million related to an unsuccessful acquisition in the first nine months of 2023.
−Removed: Net cash provided by operating activities decreased 5% from 2023 to 2024.
−Removed: The decrease is primarily due to lower NPI payment receipts and lower lease bonus receipts, partially offset by higher revenue receipts attributable to our Royalty Properties, net of production and operating expenses.
+Added: The increase is primarily attributable to increased legal and other professional services fees, higher regulatory filing fees due to the Partnership’s S-4 registration statement filing in the first quarter of 2025, increased data service and technology costs, and higher compensation expense, including an expanded Operating Partnership equity program designed for employee retention.
+Added: Net cash provided by operating activities remained consistent from 2024 to 2025.
+Added: The lack of change is primarily due to lower NPI payment receipts, lower revenue receipts attributable to our Royalty Properties, net of production taxes and operating expenses, and higher general and administrative expenses being offset by higher lease bonus and other income.
Acquisitions for Units
−Removed: On September 30, 2024, pursuant to a non-taxable contribution and exchange agreement with West Texas Minerals LLC, a Delaware limited liability company, Carrollton Mineral Partners, LP, a Texas limited partnership, Carrollton Mineral Partners Fund II, LP, a Texas limited partnership, Carrollton Mineral Partners III, LP, a Texas limited partnership, Carrollton Mineral Partners III-B, LP, a Texas limited partnership, Carrollton Mineral Partners IV, LP, a Texas limited partnership, CMP Permian, LP, a Texas limited partnership, CMP Glasscock, LP, a Texas limited partnership, and Carrollton Royalty, LP, a Texas limited partnership, the Partnership acquired mineral, royalty, and overriding royalty interests in producing and non-producing oil and natural gas properties representing approximately 14,225 net mineral acres located in 14 counties across New Mexico and Texas in exchange for 6,721,144 common units representing limited partnership interests in the Partnership valued at $202.6 million and issued pursuant to the Partnership’s registration statements on Form S-4.
−Removed: We believe that the acquisition is considered complementary to our business.
−Removed: The transaction was accounted for as an acquisition of assets under U.S.
−Removed: Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired.
−Removed: Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $8.8 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024.
−Removed: On September 30, 2024, pursuant to a non-taxable contribution and exchange agreement with an unrelated third party, the Partnership acquired overriding royalty interests totaling approximately 1,204 net royalty acres located in Weld County, Colorado in exchange for 530,000 common units representing limited partnership interests in the Partnership valued at $16.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.
−Removed: We believe that the acquisition is considered complementary to our business.
−Removed: The transaction was accounted for as an acquisition of assets under U.S.
−Removed: Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired.
−Removed: Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $1.4 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024.
−Removed: On March 28, 2024, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral interests totaling approximately 1,485 net royalty acres located in two counties in Colorado in exchange for 505,369 common units representing limited partnership interests in the Partnership valued at $17.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.
−Removed: We believe that the acquisition is considered complementary to our business.
−Removed: The transaction was accounted for as an acquisition of assets under U.S.
−Removed: Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired.
−Removed: Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $4.4 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024.
−Removed: On September 29, 2023, pursuant to a non-taxable contribution and exchange agreement with an unrelated third party, the Partnership acquired mineral and royalty interests totaling approximately 716 net royalty acres located in three counties in Texas in exchange for 494,000 common units representing limited partnership interests in the Partnership valued at $14.4 million and issued pursuant to the Partnership’s registration statement on Form S-4.
+Added: On August 29, 2025, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral interests totaling approximately 3,050 net royalty acres located in Adams County, Colorado in exchange for 915,694 common units representing limited partnership interests in the Partnership valued at $23.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.
We believe that the acquisition is considered complementary to our business.
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Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $1.8 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2025.
−Removed: On August 31, 2023, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral and royalty interests totaling approximately 568 net royalty acres located in three counties in Texas in exchange for 374,000 common units representing limited partnership interests in the Partnership valued at $10.4 million and issued pursuant to the Partnership’s registration statement on Form S-4.
+Added: On September 30, 2024, pursuant to a non-taxable contribution and exchange agreement with West Texas Minerals LLC, a Delaware limited liability company, Carrollton Mineral Partners, LP, a Texas limited partnership, Carrollton Mineral Partners Fund II, LP, a Texas limited partnership, Carrollton Mineral Partners III, LP, a Texas limited partnership, Carrollton Mineral Partners III-B, LP, a Texas limited partnership, Carrollton Mineral Partners IV, LP, a Texas limited partnership, CMP Permian, LP, a Texas limited partnership, CMP Glasscock, LP, a Texas limited partnership, and Carrollton Royalty, LP, a Texas limited partnership, the Partnership acquired mineral, royalty, and overriding royalty interests in producing and non-producing oil and natural gas properties representing approximately 14,225 net mineral acres located in 14 counties across New Mexico and Texas in exchange for 6,721,144 common units representing limited partnership interests in the Partnership valued at $202.6 million and issued pursuant to the Partnership’s registration statements on Form S-4.
We believe that the acquisition is considered complementary to our business.
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Final settlement net cash received, net of capitalized transaction costs paid, of $1.9 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2025.
−Removed: On July 12, 2023, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral and royalty interests totaling approximately 900 net royalty acres located in 13 counties and parishes across Louisiana, New Mexico, and Texas in exchange for 343,750 common units representing limited partnership interests in the Partnership valued at $11.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.
+Added: On September 30, 2024, pursuant to a non-taxable contribution and exchange agreement with an unrelated third party, the Partnership acquired overriding royalty interests totaling approximately 1,204 net royalty acres located in Weld County, Colorado in exchange for 530,000 common units representing limited partnership interests in the Partnership valued at $16.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.
We believe that the acquisition is considered complementary to our business.
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Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $1.4 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024.
−Removed: On September 30, 2022, pursuant to a non-taxable contribution and exchange agreement with Excess Energy, LLC, a Texas limited liability company, the Partnership acquired mineral, royalty and overriding royalty interests totaling approximately 2,100 net royalty acres located in 12 counties across Texas and New Mexico in exchange for 816,719 common units representing limited partnership interests in the Partnership valued at $20.4 million and issued pursuant to the Partnership's registration statement on Form S-4.
+Added: On March 28, 2024, pursuant to a non-taxable contribution and exchange agreement with multiple unrelated third parties, the Partnership acquired mineral interests totaling approximately 1,485 net royalty acres located in two counties in Colorado in exchange for 505,369 common units representing limited partnership interests in the Partnership valued at $17.0 million and issued pursuant to the Partnership’s registration statement on Form S-4.
We believe that the acquisition is considered complementary to our business.
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Accordingly, the cost of the acquisition was allocated on a relative fair value basis and transaction costs were capitalized as a component of the cost of the assets acquired.
+Added: Contributed cash delivered at closing and final settlement net cash received, net of capitalized transaction costs paid, of $4.4 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2024.
Final settlement net cash received, net of capitalized transaction costs paid, of $0.2 million is included in net cash contributed in acquisitions on the consolidated statement of cash flows for the year ended December 31, 2025.
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Our primary sources of capital, on both a short-term and long-term basis, are our cash flows from the Royalty Properties and the NPI.
−Removed: Our partnership agreement requires that we distribute quarterly an amount equal to all funds that we receive from the Royalty Properties and NPIs (other than cash proceeds received by the Partnership from a public or private offering of securities of the Partnership) less certain expenses and reasonable reserves.
+Added: Our partnership agreement requires that we distribute quarterly an amount equal to all funds that we receive from the Royalty Properties and NPI (other than cash proceeds received by the Partnership from a public or private offering of securities of the Partnership) less certain expenses and reasonable reserves.
Additional cash requirements include the payment of oil and natural gas production and property taxes not otherwise deducted from gross production revenues and general and administrative expenses incurred on our behalf and allocated to the Partnership in accordance with the partnership agreement.
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To the extent necessary to avoid unrelated business taxable income, our partnership agreement prohibits us from incurring indebtedness, excluding trade payables, in excess of $50,000 in the aggregate at any given time or which would constitute “acquisition indebtedness” (as defined in Section 514 of the Code).
−Removed: We currently expect to have sufficient liquidity to fund our distributions to unitholders and operations despite potential material uncertainties that may impact us as a result of increased oil and natural gas market volatility caused by ongoing global military conflicts, global supply chain disruptions and the recent rise in inflation and interest rates.
−Removed: Although demand and market prices for oil and natural gas have remained strong due to the rising energy use and worldwide shortage of oil due to sanctions implemented on Russia, we cannot predict events that may lead to future price volatility.
−Removed: Our ability to fund future distributions to unitholders may be affected by the prevailing economic conditions in the oil and natural gas market and other financial and business factors, including the evolution of COVID-19 and any ongoing variants, along with the military conflict between Russia and Ukraine and the conflict between Israel and Hamas which are beyond our control.
−Removed: If market conditions were to change due to declines in oil prices or uncertainty created by COVID-19 or any ongoing variants and our revenues were reduced significantly or our operating costs were to increase significantly, our cash flows and liquidity could be reduced.
−Removed: Despite recent improvements, the current economic environment is volatile, and therefore, we cannot predict the ultimate impact that COVID-19, the ongoing military conflict between Russia and Ukraine or the ongoing conflict between Israel and Hamas will have on our liquidity or cash flows.
+Added: We currently expect to have sufficient liquidity to fund our distributions to unitholders and operations.
+Added: However, our liquidity and ability to fund future distributions may be affected by material uncertainties arising from factors beyond our control, including:
+Added: ongoing global military conflicts such as those in Ukraine and the Middle East;
+Added: current inflation and interest rates;
+Added: political uncertainty in Venezuela;
+Added: changes to tariff and import/export regulations by the United States or other countries;
+Added: and prevailing economic conditions in the oil and natural gas market and other financial and business factors.
+Added: We cannot predict events that may lead to future oil and natural gas price volatility.
+Added: If market conditions were to change due to declines in oil prices, uncertainty created by military conflicts, or changes in trade policy, and our revenues were reduced significantly or our operating costs were to increase significantly, our cash flows and liquidity could be reduced.
+Added: The current economic environment is volatile, and we cannot predict the ultimate long-term impact on our liquidity or cash flows from these factors.
Liquidity and Working Capital
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Distributions to limited partners and the General Partner related to cash receipts were as follows:
−Removed: January 29, 2024
February 3, 2025
−Removed: April 29, 2024
−Removed: July 29, 2024
+Added: February 13, 2025
August 4, 2025
−Removed: October 28, 2024
+Added: August 14, 2025
November 3, 2025
+Added: November 13, 2025
Total distributions paid in 2025
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After deduction of the costs described above, including cash reserves, our net cash receipts from the Royalty Properties during October 2024 through September 2025 were $118.6 million, of which $113.9 million (96%) was distributed to the limited partners and $4.7 million (4%) was distributed to the General Partner.
−Removed: Proceeds received by us from the Royalty Properties during October through December 2024 became part of the fourth quarter distribution paid in early 2025, which is excluded from this 2024 analysis.
+Added: Proceeds received by us from the Royalty Properties during October through December 2025 became part of the fourth quarter distribution paid on February 12, 2026, and are excluded from this 2025 analysis.
Distribution Determinations
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While the relationship between the Partnership's cash receipts and the timing of the production of oil and natural gas may be described generally, actual cash receipts may be materially impacted by purchasers’ release of suspended funds and by prior period adjustments.
−Removed: Cash receipts attributable to the Partnership's Royalty Properties during the 2024 fourth quarter totaled $34.9 million.
+Added: Cash receipts attributable to the Partnership's Royalty Properties during the fourth quarter of 2025 totaled $32.2 million.
Approximately 62% of these receipts reflect oil sales during September 2025 through November 2025 and natural gas sales during August 2025 through October 2025, and approximately 38% from prior sales periods.
The average indicated prices for oil and natural gas sales attributable to the Royalty Properties during the 2025 fourth quarter were $54.98/bbl and $1.91/mcf, respectively.
−Removed: Cash receipts attributable to the Partnership's NPI during the 2024 fourth quarter totaled $5.4 million.
+Added: Cash receipts attributable to the Partnership's NPI during the fourth quarter of 2025 totaled $4.0 million.
Approximately 66% of these receipts reflect oil and natural gas sales during August 2025 through October 2025, and approximately 34% from prior sales periods.
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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.