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Overview of Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is a master limited partnership that specializes in acquiring and owning oil and gas mineral and royalty interests. With a broad footprint spanning approximately 17 million gross acres across 28 states, the company holds a significant stake in nearly every major onshore basin in the continental United States. This diverse portfolio provides exposure to multiple key regions such as the Permian Basin, Mid-Continent, Appalachian Basin, and others, making Kimbell a prominent player in the sector of oil and gas royalty investments.
Core Business and Revenue Generation
The core of Kimbell's business model is based on the acquisition and management of assets that generate revenue through royalty payments. Operators of oil, natural gas, and natural gas liquids (NGLs) production pay royalties derived from the sale of these commodities, thus providing Kimbell with a steady stream of cash flow. The company also benefits from the sale of NGLs, making its revenue sources quite diverse across different segments of the energy market. This revenue generation approach is underpinned by robust asset consolidation and strategic acquisitions that continuously expand its acreage and well count.
Industry Position and Strategic Operations
Kimbell Royalty Partners, LP is strategically positioned within the U.S. oil and natural gas industry. It operates primarily through its general partner, Kimbell Royalty GP, LLC, which oversees operations across a wide array of producing wells. The company’s extensive asset base, which includes interests in tens of thousands of producing wells in critical regions like the Permian Basin, underscores its role as a consolidator in a fragmented market. While many industry players focus solely on production maximization, Kimbell distinguishes itself by concentrating on the economics of royalty payments and long-term asset quality.
Operational Excellence and Market Footprint
Employing a disciplined approach to both acquisition and debt management, Kimbell maintains a focused strategy that prioritizes the effective realization of cash distributions to its unitholders. Its operations span regions known for high-quality reservoirs and significant drilling activities. This geographic diversification across major U.S. onshore basins makes Kimbell resilient amid market fluctuations and positions the company as a noteworthy entity in the energy royalty space.
Expertise in Asset Consolidation and Risk Management
One of the key strengths of Kimbell Royalty Partners is its ability to identify and acquire high-return assets. The company’s experienced management team leverages deep industry knowledge and advanced analytical capabilities to assess the value of mineral interests and royalty streams. This expertise, coupled with a strategic focus on asset consolidation, minimizes operational risks while ensuring a mix of legacy production and new asset integrations. The firm’s commitment to operational discipline is reinforced by its proactive approach to debt repayment and liquidity management.
Competitive Landscape and Differentiation
In the competitive landscape of oil and gas royalty investments, Kimbell stands out due to its expansive asset portfolio and specialized focus on non-operating mineral interests. Unlike companies primarily involved in active production, Kimbell’s earnings are less directly tied to operational risks and market volatility. This structure not only provides stability to cash flows but also allows investors to tap into the underlying economics of U.S. energy production without the complexities of day-to-day operations.
Commitment to Transparency and Investor Communication
Transparency is a cornerstone of Kimbell’s business philosophy. Detailed reporting, including the use of non-GAAP measures such as Adjusted EBITDA and Cash G&A, illustrates the company’s commitment to an open and clear communication strategy. This approach helps investors and industry analysts understand the underlying fundamentals of the asset base and the operational efficiency of the business, reinforcing Kimbell’s reputation for expertise and trustworthiness in the energy market.
Conclusion
Overall, Kimbell Royalty Partners, LP embodies a sophisticated approach to asset management within the oil and gas sector. By focusing on the acquisition and strategic management of mineral and royalty interests, the company offers a stable investment premise underpinned by diversified geographic exposure and robust cash flow generation. Whether through the evaluation of its operational metrics or its methodical asset consolidation approach, Kimbell provides a comprehensive example of how disciplined financial management and sector-specific expertise can generate enduring value.
Kimbell Royalty Partners (NYSE: KRP), a major player in oil and natural gas mineral and royalty interests, has scheduled its first quarter 2025 financial results release for Thursday, May 8, 2025, before market opening. The company, which owns interests in over 130,000 gross wells across 28 states, will simultaneously announce its Q1 2025 distribution. A conference call is scheduled for the same day at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss the results.
Kimbell Royalty Partners (NYSE: KRP) has announced the filing of its 2024 Annual Report on Form 10-K with the SEC. The company, which owns oil and natural gas mineral and royalty interests across over 17 million gross acres in 28 states, has made the report accessible through its investor relations website and the SEC website. Interested investors can also request a free hard copy of the Annual Report, including complete audited financial statements, through Dennard Lascar Investor Relations.
Kimbell Royalty Partners (NYSE: KRP) reported record Q4 2024 results, with production exceeding 25,000 Boe/d for the first time. The company achieved Q4 2024 run-rate daily production of 24,082 Boe per day, with total revenues of $66.7 million.
Key highlights include:
- Q4 2024 consolidated Adjusted EBITDA of $59.8 million
- Announced Q4 2024 cash distribution of $0.40 per common unit (10.2% annualized yield)
- 91 active rigs representing 16% market share of U.S. land rig count
- Conservative balance sheet with Net Debt to TTM Consolidated Adjusted EBITDA of 0.8x
The company reported a Q4 2024 net loss of $39.3 million, primarily due to a non-cash ceiling test impairment expense of $56.2 million. For 2025, KRP initiated guidance with estimated daily production projected at 25,500 Boe/d (mid-point), with a range of 24,000-27,000 Boe/d.
Kimbell Royalty Partners (NYSE: KRP) has completed the previously announced $230 million acquisition of mineral and royalty interests in the Midland Basin. The transaction, funded through a combination of public offering of common units and credit facility borrowings, includes assets producing approximately 1,842 Boe/d as of October 1, 2024.
The Acquired Assets are located under the historic Mabee Ranch, with interests concentrated in Martin County (63%) and Andrews County (37%). The production mix includes 1,125 Bbl/d of oil, 410 Bbl/d of NGLs, and 1,842 Mcf/d of natural gas. Kimbell will receive all cash flow from production since October 1, 2024, while accounting recognition begins January 17, 2025.
Kimbell Royalty Partners (NYSE: KRP) has announced the pricing of its upsized public offering of 10,000,000 common units at $14.90 per unit, expecting to raise approximately $149.0 million in gross proceeds. The offering includes an option for underwriters to purchase up to 1,500,000 additional units.
The offering is scheduled to close on January 9, 2025. Kimbell plans to use the net proceeds to repay outstanding borrowings under its revolving credit facility. The company intends to fund the cash portion of its pending Boren Minerals acquisition and related expenses through future borrowings under the same facility.
The offering is being managed by multiple financial institutions, with Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities, and Mizuho acting as joint-bookrunning managers.
Kimbell Royalty Partners (NYSE: KRP) has announced a public offering of 9,000,000 common units representing partner interests, with an additional option for underwriters to purchase up to 1,350,000 units. The net proceeds will be used to repay outstanding borrowings under its revolving credit facility. The company plans to fund the cash portion of its pending Boren Minerals acquisition through future borrowings under the same facility.
The offering is being managed by Citigroup, J.P. Morgan, and RBC Capital Markets as lead book-running managers. The common units will be issued under an effective shelf registration statement on Form S-3 previously filed with the SEC.
Kimbell Royalty Partners (KRP) has agreed to acquire mineral and royalty interests in the Midland Basin for approximately $231 million. The acquisition includes assets under the Mabee Ranch, spanning over 68,000 gross acres with approximately 875 gross producing wells operated by major companies including ConocoPhillips, Diamondback Energy, and ExxonMobil.
The transaction can be funded through either all cash or a combination of $207 million in cash and 1.4 million KRP common units valued at $24 million. The acquired assets are expected to produce approximately 1,842 Boe per day (60% oil, 17% natural gas, 23% NGL) in 2025, generating an estimated $30.9 million in cash flow. The deal is expected to increase daily production by 8% and decrease cash G&A per Boe by 7%.
The acquisition is expected to close in Q1 2025, with an effective date of October 1, 2024. Post-acquisition, KRP will have over 17 million gross acres, 130,000 gross wells, and 92 active rigs, representing approximately 16% of total active land rigs in the continental United States.
Kimbell Royalty Partners (NYSE: KRP), which owns oil and natural gas mineral and royalty interests across more than 129,000 gross wells in 28 states, has scheduled its fourth quarter 2024 earnings release for Thursday, February 27, 2025, before market opening. The company will simultaneously announce its Q4 2024 distribution.
A conference call is scheduled for the same day at 10:00 a.m. Central Time, accessible via phone (201-389-0869) or webcast through Kimbell's Investor Relations website. A replay will be available until March 6th using conference ID 13750582#.
Kimbell Royalty Partners (NYSE: KRP), which owns oil and natural gas mineral and royalty interests in over 129,000 gross wells across 28 states, has announced its participation in four upcoming investor conferences. The company's management will attend the Bank of America Global Energy Conference in Houston (Nov 12-13), TD Securities Energy Conference in New York City (Nov 19-20), Wolfe Inaugural Global Energy Conference virtually (Nov 21), and Mizuho Power, Energy & Infrastructure Conference in New York City (Dec 9-10).
Kimbell Royalty Partners announced its Q3 2024 results. Key highlights include:
Daily production of 23,846 Boe/d, $71.1 million in oil, natural gas, and NGL revenues, and a net income of $25.8 million. The company declared a cash distribution of $0.41 per common unit, reflecting a 10% annualized yield.
Kimbell's major properties had 5.13 net DUCs and 2.71 net permitted locations, with 90 active rigs representing 16% of the U.S. land rig count. The company reported a 34% increase in net DUCs, led by the Permian Basin. Lease bonuses hit record highs, indicating increased operator activity. Adjusted EBITDA was $63.1 million.
As of September 30, 2024, Kimbell had $252.2 million in debt and a net debt to trailing twelve month Adjusted EBITDA ratio of 0.8x. The company had $297.8 million in undrawn credit capacity. Kimbell affirmed its 2024 guidance and noted that approximately 100% of the Q3 distribution is expected to be considered a return of capital for tax purposes.
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