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Kimbell Royalty Partners Announces Third Quarter 2024 Results

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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.

Kimbell Royalty Partners ha annunciato i risultati del terzo trimestre 2024. I punti salienti includono:

Produzione giornaliera di 23.846 Boe/d, entrate di 71,1 milioni di dollari derivanti da petrolio, gas naturale e NGL, e un utile netto di 25,8 milioni di dollari. L'azienda ha dichiarato una distribuzione in contante di 0,41 dollari per unità comune, riflettendo un rendimento annualizzato del 10%.

Le principali proprietà di Kimbell avevano 5,13 DUC netti e 2,71 ubicazioni autorizzate, con 90 piattaforme attive che rappresentano il 16% del conteggio delle piattaforme terrestre negli Stati Uniti. L'azienda ha registrato un aumento del 34% dei DUC netti, guidato dal bacino Permiano. I bonus di leasing hanno raggiunto livelli record, indicando un'attività crescente degli operatori. L'EBITDA rettificato è stato di 63,1 milioni di dollari.

Alla data del 30 settembre 2024, Kimbell aveva 252,2 milioni di dollari in debito e un rapporto di debito netto rispetto all'EBITDA rettificato degli ultimi dodici mesi di 0,8x. L'azienda aveva 297,8 milioni di dollari di capacità di credito non utilizzata. Kimbell ha confermato le previsioni per il 2024 e ha notato che circa il 100% della distribuzione del terzo trimestre è previsto venga considerato un ritorno di capitale ai fini fiscali.

Kimbell Royalty Partners anunció sus resultados del tercer trimestre de 2024. Los aspectos destacados incluyen:

Producción diaria de 23,846 Boe/d, ingresos de 71.1 millones de dólares por petróleo, gas natural y NGL, y un ingreso neto de 25.8 millones de dólares. La compañía declaró una distribución en efectivo de 0.41 dólares por unidad común, reflejando un rendimiento anualizado del 10%.

Las principales propiedades de Kimbell tenían 5.13 DUC netos y 2.71 ubicaciones permitidas, con 90 plataformas activas que representan el 16% del conteo de plataformas en tierra de EE.UU. La empresa reportó un aumento del 34% en DUC netos, liderado por la Cuenca Pérmica. Los bonos de arrendamiento alcanzaron niveles récord, indicando una mayor actividad de los operadores. El EBITDA ajustado fue de 63.1 millones de dólares.

Al 30 de septiembre de 2024, Kimbell tenía 252.2 millones de dólares en deuda y un ratio de deuda neta a EBITDA ajustado de los últimos doce meses de 0.8x. La compañía tenía 297.8 millones de dólares en capacidad de crédito no utilizada. Kimbell reafirmó su guía para 2024 y destacó que aproximadamente el 100% de la distribución del tercer trimestre se espera que sea considerada un retorno de capital a efectos fiscales.

킴벨 로열티 파트너스가 2024년 3분기 실적을 발표했습니다. 주요 내용은 다음과 같습니다:

일일 생산량 23,846 Boe/d, 석유, 자연가스 및 NGL 수익 7,110만 달러, 순이익 2,580만 달러. 회사는 일반 주식당 0.41달러의 현금 배당금을 선언하며, 이는 연간 10%의 수익률을 반영합니다.

킴벨의 주요 자산은 5.13 개의 순 DUC와 2.71 개의 허가된 위치를 보유하고 있으며, 90개의 활성 시추 장비가 미국 육상 시추 장비 수의 16%를 차지하고 있습니다. 이 회사는 퍼미안 분지의 주도로 순 DUC가 34% 증가했다고 보고했습니다. 임대 보너스는 기록적인 수준에 도달하여 운영자의 활동이 증가했음을 나타냅니다. 조정 EBITDA는 6,310만 달러였습니다.

2024년 9월 30일 기준으로 킴벨은 2억 5,220만 달러의 부채와 12개월 조정 EBITDA 대비 순부채 비율이 0.8배인 상태였습니다. 회사는 사용되지 않은 신용 한도가 2억 9,780만 달러에 달했습니다. 킴벨은 2024년 목표치를 재확인하고 3분기 배당금의 약 100%가 세금 목적상 자본 회수로 간주될 것으로 예상한다고 언급했습니다.

Kimbell Royalty Partners a annoncé ses résultats du troisième trimestre 2024. Les points importants incluent :

Une production quotidienne de 23 846 Boe/j, des revenus de 71,1 millions de dollars provenant du pétrole, du gaz naturel et des NGL, et un revenu net de 25,8 millions de dollars. La société a déclaré une distribution en espèces de 0,41 dollar par unité commune, ce qui reflète un rendement annualisé de 10 %.

Les principales propriétés de Kimbell avaient 5,13 DUC nets et 2,71 emplacements autorisés, avec 90 plateformes actives représentant 16 % du nombre total de plateformes terrestres aux États-Unis. La société a rapporté une augmentation de 34 % des DUC nets, menée par le bassin permien. Les primes de location ont atteint des niveaux record, indiquant une activité accrue des opérateurs. L'EBITDA ajusté s'élevait à 63,1 millions de dollars.

Au 30 septembre 2024, Kimbell avait 252,2 millions de dollars de dettes et un ratio de dette nette par rapport à l'EBITDA ajusté des douze derniers mois de 0,8x. La société disposait d'une capacité de crédit non utilisée de 297,8 millions de dollars. Kimbell a confirmé ses prévisions pour 2024 et a noté qu'environ 100 % de la distribution du troisième trimestre devrait être considérée comme un retour de capital à des fins fiscales.

Kimbell Royalty Partners hat die Ergebnisse für das dritte Quartal 2024 bekannt gegeben. Die wichtigsten Highlights umfassen:

Tägliche Produktion von 23.846 Boe/d, Einnahmen aus Öl, Erdgas und NGL in Höhe von 71,1 Millionen Dollar sowie einen Nettogewinn von 25,8 Millionen Dollar. Das Unternehmen erklärte eine Barausschüttung von 0,41 Dollar pro Stammaktie, was einer annualisierten Rendite von 10% entspricht.

Kimbells Hauptimmobilien wiesen 5,13 Nettodrillinge und 2,71 genehmigte Standorte auf, mit 90 aktiven Bohrgeräten, die 16% der US-amerikanischen Landbohrgeräte ausmachen. Das Unternehmen berichtete über einen Anstieg von 34% bei den Nettodrillings, angeführt vom Permian Basin. Die Pachtboni erreichten Rekordhöhen, was auf eine zunehmende Aktivität der Betreiber hinweist. Das bereinigte EBITDA betrug 63,1 Millionen Dollar.

Am 30. September 2024 hatte Kimbell 252,2 Millionen Dollar Schulden und ein Verhältnis von Nettoverschuldung zu bereinigtem EBITDA der letzten zwölf Monate von 0,8x. Das Unternehmen hatte eine ungenutzte Kreditlinie von 297,8 Millionen Dollar. Kimbell bestätigte die Prognosen für 2024 und stellte fest, dass etwa 100% der Ausschüttung im dritten Quartal als Kapitalrückzahlung für steuerliche Zwecke gewertet werden erwartet.

Positive
  • Q3 2024 net income of $25.8 million.
  • Declared cash distribution of $0.41 per common unit.
  • Record lease bonuses indicating increased operator activity.
  • 34% increase in net DUCs led by the Permian Basin.
  • Adjusted EBITDA of $63.1 million.
  • Net debt to trailing twelve month Adjusted EBITDA ratio of 0.8x.
  • Undrawn credit capacity of $297.8 million.
Negative
  • Average realized price per Mcf of natural gas was $1.71.

Insights

The Q3 2024 results demonstrate strong operational performance with several positive indicators. $71.1 million in oil, natural gas and NGL revenues and $63.1 million in consolidated Adjusted EBITDA showcase robust financial health. The $0.41 per unit distribution, yielding 10.0% annually, remains attractive for income-focused investors.

Key strengths include:

  • Conservative leverage with 0.8x Net Debt to TTM EBITDA
  • Strong drilling activity with 16% market share of U.S. land rigs
  • 34% increase in net DUCs quarter-over-quarter
  • Record lease bonuses indicating increased operator interest

The 100% return of capital treatment for distributions provides tax advantages for unitholders. With $297.8 million in available credit facility capacity and continued debt reduction focus, KRP maintains financial flexibility for future opportunities.

The operational metrics reveal strong positioning in key U.S. basins. Production mix of 52% natural gas and 48% liquids provides balanced commodity exposure. The Permian Basin leads DUC inventory growth, indicating strong future production potential.

The 23,846 Boe/d production rate and 7.84 net DUCs/permits significantly exceed the 5.8 net wells needed for flat production, suggesting organic growth potential. The hedging strategy through 2026 provides price protection while maintaining upside exposure, with reasonable strike prices averaging $70.50/bbl for oil and $3.78/MMBtu for natural gas.

Q3 2024 Run-Rate Daily Production of 23,846 Boe/d (6:1)

Activity on Acreage Remains Robust with 90 Active Rigs Drilling Representing 16%1 Market Share of U.S. Land Rig Count

Net Drilled But Uncompleted Wells ("DUCs") Increased by 34% Quarter Over Quarter Led by the Permian Basin

Record Lease Bonuses Confirming Increased Operator Activity

Announces Q3 2024 Cash Distribution of $0.41 per Common Unit

FORT WORTH, Texas, Nov. 7, 2024 /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 129,000 gross wells across 28 states, today announced financial and operating results for the quarter ended September 30, 2024. 

Third Quarter 2024 Highlights

  • Q3 2024 run-rate daily production of 23,846 barrels of oil equivalent ("Boe") per day (6:1)
  • Q3 2024 oil, natural gas and NGL revenues of $71.1 million
  • Q3 2024 net income of approximately $25.8 million and net income attributable to common units of approximately $17.4 million
  • Q3 2024 consolidated Adjusted EBITDA of $63.1 million
  • As of September 30, 2024, Kimbell's major properties2 had 7.84 net DUCs and net permitted locations on its acreage (5.13 net DUCs and 2.71 net permitted locations) compared to an estimated 5.8 net wells needed to maintain flat production
  • As of September 30, 2024, Kimbell had 90 rigs actively drilling on its acreage, representing 16% market share of all land rigs drilling in the continental United States as of such time
  • Announced a Q3 2024 cash distribution of $0.41 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 10.0% annualized yield based on the November 6, 2024 closing price of $16.38 per common unit; Kimbell intends to utilize the remaining 25% of its cash available for distribution to repay a portion of the outstanding borrowings under Kimbell's revolving credit facility
  • Conservative Balance Sheet with Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA of 0.8x
  • Kimbell affirms its financial and operational guidance ranges for 2024 previously disclosed in its Q4 2023 earnings release

Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty GP, LLC, Kimbell's general partner (the "General Partner"), commented, "Activity on Kimbell's acreage remained strong with 90 rigs actively drilling on our acreage, which represents 16% market share of all rigs drilling in the lower 48. In addition, lease bonuses during the quarter were the highest in Kimbell's history and reflect increased operator interest in developing Kimbell's acreage. Line-of-site wells continue to be well above the number of wells needed to maintain flat production, giving us confidence in the resilience of our production as we wrap-up 2024. More specifically, the number of net DUCs increased by 34% quarter over quarter to 5.1 net DUCs, the second highest level in Kimbell's history, led by the Permian Basin.

"We are pleased to declare the Q3 2024 distribution of 41 cents per common unit. We estimate that approximately 100% percent of this distribution is expected to be considered return of capital and not subject to dividend taxes, further enhancing the after-tax return to our common unitholders."

Third Quarter 2024 Distribution and Debt Repayment

Today, the Board of Directors of the General Partner (the "Board of Directors") approved a cash distribution payment to common unitholders of 75% of cash available for distribution for the third quarter of 2024, or $0.41 per common unit. The distribution will be payable on November 25, 2024 to common unitholders of record at the close of business on November 18, 2024. Kimbell plans to utilize the remaining 25% of cash available for distribution for the third quarter of 2024 to pay down a portion of the outstanding borrowings under its secured revolving credit facility. Since May 2020 (excluding the expected upcoming pay-down from the remaining 25% of Q3 2024 projected cash available for distribution), Kimbell has paid down approximately $179.0 million of outstanding borrowings under its secured revolving credit facility by allocating a portion of its cash available for distribution for debt pay-down.

Kimbell expects that approximately 100% of its third quarter 2024 distribution should not constitute dividends for U.S. federal income tax purposes, but instead are estimated to constitute non-taxable reductions to the basis of each distribution recipient's ownership interest in Kimbell common units. The reduced tax basis will increase unitholders' capital gain (or decrease unitholders' capital loss) when unitholders sell their common units. The Form 8937 containing additional information may be found at www.kimbellrp.com under "Investor Relations" section of the site. Kimbell currently believes that the portion that constitute dividends for U.S. federal income tax purposes will be considered qualified dividends, subject to holding period and certain other conditions, which are subject to a tax rate of 0%, 15% or 20% depending on the income level and tax filing status of a unitholder for 2024. Kimbell believes these estimates are reasonable based on currently available information, but they are subject to change.

Financial Highlights

Kimbell's third quarter 2024 average realized price per Bbl of oil was $74.19, per Mcf of natural gas was $1.71, per Bbl of NGLs was $21.46 and per Boe combined was $31.57.

During the third quarter of 2024, the Company's total revenues were $83.8 million, net income was approximately $25.8 million and net income attributable to common units was approximately $17.4 million, or $0.22 per common unit.

Total third quarter 2024 consolidated Adjusted EBITDA was $63.1 million (consolidated Adjusted EBITDA is a non-GAAP financial measure. Please see a reconciliation to the nearest GAAP financial measures at the end of this news release). 

In the third quarter of 2024, G&A expense was $9.5 million, $5.6 million of which was Cash G&A expense, or $2.57 per BOE (Cash G&A and Cash G&A per Boe are non-GAAP financial measures. Please see definition under Non-GAAP Financial Measures in the Supplemental Schedules included in this news release). Unit-based compensation in the third quarter of 2024, which is a non-cash G&A expense, was $3.8 million or $1.75 per Boe.

As of September 30, 2024, Kimbell had approximately $252.2 million in debt outstanding under its secured revolving credit facility, had net debt to third quarter 2024 trailing twelve month consolidated Adjusted EBITDA of approximately 0.8x and was in compliance with all financial covenants under its secured revolving credit facility. Kimbell had approximately $297.8 million in undrawn capacity under its secured revolving credit facility as of September 30, 2024.

As of September 30, 2024, Kimbell had outstanding 80,969,651 common units and 14,524,120 Class B units. As of November 7, 2024, Kimbell had outstanding 80,969,651 common units and 14,524,120 Class B units.

Production

Third quarter 2024 run-rate average daily production was 23,846 Boe per day (6:1), which was composed of approximately 52% from natural gas (6:1) and approximately 48% from liquids (30% from oil and 18% from NGLs).

Operational Update

As of September 30, 2024, Kimbell's major properties had 831 gross (5.13 net) DUCs and 527 gross (2.71 net) permitted locations on its acreage. In addition, as of September 30, 2024, Kimbell had 90 rigs actively drilling on its acreage, which represents an approximate 15.9% market share of all land rigs drilling in the continental United States as of such time.

Basin

Gross DUCs as of
September 30, 2024
(1)

Gross Permits as of
September 30, 2024
(1)

Net DUCs as of
September 30, 2024(1)

Net Permits as of
September 30, 2024
(1)

Permian

457

349

2.62

1.71

Eagle Ford

100

32

0.63

0.13

Haynesville

50

10

0.54

0.13

Mid-Continent

131

54

1.04

0.43

Bakken

79

75

0.20

0.28

Appalachia

5

3

0.02

0.01

Rockies

9

4

0.08

0.02

Total

831

527

5.13

2.71


(1)  These figures pertain only to Kimbell's major properties and do not include possible additional DUCs and permits from Kimbell's minor properties, which generally have a net revenue interest of 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell's net inventory.

 

Hedging Update

The following provides information concerning Kimbell's hedge book as of September 30, 2024:

 Fixed Price Swaps as of September 30, 2024 




Weighted Average


Volumes

Fixed Price


Oil

Nat Gas

Oil 

Nat Gas


BBL

MMBTU

$/BBL

$/MMBTU

4Q 2024

141,588

1,332,712

$        74.60

$          4.19

1Q 2025

140,400

1,289,520

$        71.55

$          4.32

2Q 2025

140,686

1,310,127

$        67.64

$          3.52

3Q 2025

136,068

1,261,964

$        74.20

$          3.74

4Q 2025

146,372

1,291,680

$        68.26

$          3.68

1Q 2026

146,880

1,296,000

$        70.38

$          4.07

2Q 2026

148,512

1,310,400

$        70.78

$          3.33

3Q 2026

150,144

1,324,800

$        66.60

$          3.42






Conference Call

Kimbell Royalty Partners will host a conference call and webcast today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss third quarter 2024 results. To access the call live by phone, dial 201-389-0869 and ask for the Kimbell Royalty Partners call at least 10 minutes prior to the start time. A telephonic replay will be available through November 14, 2024 by dialing 201-612-7415 and using the conference ID 13748350#. A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under the Events and Presentations tab. 

Presentation

On November 7, 2024, Kimbell posted an updated investor presentation on its website. The presentation may be found at http://kimbellrp.investorroom.com under the Events and Presentations tab. Information on Kimbell's website does not constitute a portion of this news release.

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 129,000 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, 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

 

– Financial statements follow –

 

Kimbell Royalty Partners, LP

Condensed Consolidated Balance Sheet

(Unaudited, in thousands)



September 30,


2024

Assets:



Current assets



Cash and cash equivalents

$

34,706

Oil, natural gas and NGL receivables


48,975

Derivative assets


6,818

Accounts receivable and other current assets


1,671

Total current assets


92,170

Property and equipment, net


361

Oil and natural gas properties



Oil and natural gas properties (full cost method)


2,048,712

Less: accumulated depreciation, depletion and impairment


(936,054)

Total oil and natural gas properties, net


1,112,658

Right-of-use assets, net


1,929

Derivative assets


1,763

Loan origination costs, net


5,790

Total assets

$

1,214,671

Liabilities and unitholders' equity:



Current liabilities



Accounts payable

$

6,865

Other current liabilities 


10,875

Total current liabilities 


17,740

Operating lease liabilities, excluding current portion


1,605

Derivative liabilities


2

Long-term debt


252,160

Other liabilities


104

Total liabilities


271,611

Commitments and contingencies



Mezzanine equity: 



Series A preferred units


315,608

Kimbell Royalty Partners, LP unitholders' equity: 



Common units


531,294

Class B units


726

Total Kimbell Royalty Partners, LP unitholders' equity


532,020

Non-controlling interest in OpCo


95,432

Total unitholders' equity


627,452

Total liabilities, mezzanine equity and unitholders' equity

$

1,214,671

 

Kimbell Royalty Partners, LP

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per-unit data and unit counts)



Three Months Ended


Three Months Ended


September 30, 2024


September 30, 2023

Revenue






Oil, natural gas and NGL revenues

$

71,069


$

69,238

Lease bonus and other income


3,163



2,543

Gain (loss) on commodity derivative instruments, net


9,553



(4,577)

Total revenues


83,785



67,204

Costs and expenses 






Production and ad valorem taxes


4,347



4,986

Depreciation and depletion expense


32,155



23,060

Marketing and other deductions


3,607



3,509

General and administrative expense


9,472



10,359

Total costs and expenses


49,581



41,914

Operating income


34,204



25,290

Other expense






Interest expense


(6,492)



(6,681)

Net income before income taxes


27,712



18,609

Income tax expense


1,907



128

Net income


25,805



18,481

Distribution and accretion on Series A preferred units


(5,296)



(1,041)

Net income attributable to non-controlling interests


(3,119)



(3,839)

Distributions on Class B units


(15)



(21)

Net income attributable to common units of Kimbell Royalty Partners, LP

$

17,375


$

13,580







Basic

$

0.22


$

0.20

Diluted

$

0.22


$

0.19

Weighted average number of common units outstanding






Basic


78,977,450



68,540,786

Diluted


116,414,205



94,969,077

 

Kimbell Royalty Partners, LP
Supplemental Schedules

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA, Cash G&A and Cash G&A per Boe are used as supplemental non-GAAP financial measures by management and external users of Kimbell's financial statements, such as industry analysts, investors, lenders and rating agencies. Kimbell believes Adjusted EBITDA is useful because it allows us to more effectively evaluate Kimbell's operating performance and compare the results of Kimbell's operations period to period without regard to its financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to Kimbell's unitholders. Kimbell defines Adjusted EBITDA as net income (loss), net of depreciation and depletion expense, interest expense, income taxes, impairment of oil and natural gas properties, non-cash unit-based compensation, loss on extinguishment of debt, unrealized gains and losses on derivative instruments and operational impacts of variable interest entities, which include general and administrative expense and interest income. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP. Kimbell excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within Kimbell's industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Adjusted EBITDA should not be considered an alternative to net income, oil, natural gas and natural gas liquids revenues, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Kimbell's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Kimbell expects that cash available for distribution for each quarter will generally equal its Adjusted EBITDA for the quarter, less cash needed for debt service and other contractual obligations, tax obligations, and fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate.

Kimbell believes Cash G&A and Cash G&A per Boe are useful metrics because they isolate cash costs within overall G&A expense and measure cash costs relative to overall production, which is a widely utilized metric to evaluate operational performance within the energy sector. Cash G&A is defined as general and administrative expenses less unit-based compensation expense. Cash G&A per Boe is defined as Cash G&A divided by total production for a period. Cash G&A should not be considered an alternative to G&A expense presented in accordance with GAAP. Kimbell's computations of Cash G&A and Cash G&A per Boe may not be comparable to other similarly titled measures of other companies.

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands) 



Three Months Ended


Three Months Ended


September 30, 2024


September 30, 2023

Reconciliation of net cash provided by operating activities






to Adjusted EBITDA and cash available for distribution






Net cash provided by operating activities

$

62,417


$

36,387

Interest expense


6,492



6,681

Income tax expense


1,907



128

Amortization of right-of-use assets


(87)



(84)

Amortization of loan origination costs


(532)



(405)

Unit-based compensation


(3,830)



(3,326)

Gain (loss) on derivative instruments, net of settlements


7,066



(4,098)

Changes in operating assets and liabilities:






  Oil, natural gas and NGL revenues receivable


(4,243)



16,314

  Accounts receivable and other current assets


(719)



(280)

  Accounts payable


(310)



(855)

  Other current liabilities


(1,899)



(2,200)

  Operating lease liabilities


97



88

Consolidated EBITDA

$

66,359


$

48,350

Add:






Unit-based compensation


3,830



3,326

(Gain) loss on derivative instruments, net of settlements


(7,066)



4,098

Consolidated Adjusted EBITDA

$

63,123


$

55,774

Adjusted EBITDA attributable to non-controlling interest


(9,601)



(12,279)

Adjusted EBITDA attributable to Kimbell Royalty Partners, LP

$

53,522


$

43,495







Adjustments to reconcile Adjusted EBITDA to cash available 






for distribution






Less:






Cash interest expense


5,123



4,645

Cash distributions on Series A preferred units


4,156



750

Distributions on Class B units


15



21

Cash available for distribution on common units

$

44,228


$

38,079

 

Kimbell Royalty Partners, LP

Supplemental Schedules

(Unaudited, in thousands, except for per-unit data and unit counts)



Three Months Ended


September 30, 2024




Net income

$

25,805

Depreciation and depletion expense


32,155

Interest expense


6,492

Income tax expense


1,907

Consolidated EBITDA

$

66,359

Unit-based compensation


3,830

Gain on derivative instruments, net of settlements


(7,066)

Consolidated Adjusted EBITDA

$

63,123

Adjusted EBITDA attributable to non-controlling interest


(9,601)

Adjusted EBITDA attributable to Kimbell Royalty Partners, LP

$

53,522




Adjustments to reconcile Adjusted EBITDA to cash available 



for distribution



Less:



Cash interest expense


5,123

Cash distributions on Series A preferred units


4,156

Distributions on Class B units


15

Cash available for distribution on common units

$

44,228




Common units outstanding on September 30, 2024


80,969,651




Common units outstanding on November 18, 2024 Record Date


80,969,651




Cash available for distribution per common unit outstanding

$

0.55




Third quarter 2024 distribution declared (1)

$

0.41


(1)  The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility.

 

Kimbell Royalty Partners, LP

Supplemental Schedules

(Unaudited, in thousands, except for per-unit data and unit counts)



Three Months Ended


September 30, 2023




Net income

$

18,481

Depreciation and depletion expense


23,060

Interest expense


6,681

Income tax expense


128

Consolidated EBITDA

$

48,350

Unit-based compensation


3,326

Loss on derivative instruments, net of settlements


4,098

Consolidated Adjusted EBITDA

$

55,774

Adjusted EBITDA attributable to non-controlling interest


(12,279)

Adjusted EBITDA attributable to Kimbell Royalty Partners, LP

$

43,495




Adjustments to reconcile Adjusted EBITDA to cash available 



for distribution



Less:



Cash interest expense


4,645

Cash distributions on Series A preferred units


750

Distributions on Class B units


21

Cash available for distribution on common units

$

38,079




Common units outstanding on September 30, 2023


73,851,458




Common units outstanding on November 13, 2023 Record Date


73,851,458




Cash available for distribution per common unit outstanding

$

0.52




Third quarter 2023 distribution declared (1)

$

0.51


(1)  The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility. Additionally, Kimbell utilized approximately $12.4 million of cash flows received from the Q3 2023 Acquired Production after the effective date of June 1, 2023, but prior to the closing date of September 13, 2023, to pay outstanding borrowings under its credit facility and to distribute the additional cash flows to common unitholders. Revenues, production and other financial and operating results from the Q3 2023 acquisition are reflected in Kimbell's condensed consolidated financial statements from September 13, 2023 onward.

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands)



Three Months Ended


September 30, 2024




Net income

$

25,805

Depreciation and depletion expense


32,155

Interest expense


6,492

Income tax expense


1,907

Consolidated EBITDA

$

66,359

Unit-based compensation


3,830

Gain on derivative instruments, net of settlements


(7,066)

Consolidated Adjusted EBITDA

$

63,123




Q4 2023 - Q2 2024 Consolidated Adjusted EBITDA (1)


208,927

Trailing Twelve Month Consolidated Adjusted EBITDA

$

272,050




Long-term debt (as of 9/30/24)


252,160

Cash and cash equivalents (as of 9/30/24) (2)


(25,000)

Net debt (as of 9/30/24)

$

227,160




Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA


0.8x


(1)  Consolidated Adjusted EBITDA for each of the quarters ended December 31, 2023, March 31, 2024 and June 30, 2024 was previously reported in a news release relating to the applicable quarter, and the reconciliation of net income to consolidated Adjusted EBITDA for each quarter is included in the applicable news release.

(2)  In accordance with Kimbell's secured revolving credit facility, the maximum deduction of cash and cash equivalents to be included in the net debt calculation for compliance purposes is $25 million

 

_______________________________

1 Based on Kimbell rig count of 90 and Baker Hughes U.S. land rig count of 567 as of September 30, 2024.
2 These figures pertain only to Kimbell's major properties and do not include possible additional DUCs and permits from Kimbell's minor properties, which generally have a net revenue interest of 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell's net inventory.

Cision View original content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-third-quarter-2024-results-302298264.html

SOURCE Kimbell Royalty Partners, LP

FAQ

What was Kimbell Royalty Partners' Q3 2024 daily production?

Kimbell Royalty Partners' Q3 2024 daily production was 23,846 Boe/d.

What was Kimbell Royalty Partners' Q3 2024 net income?

Kimbell Royalty Partners' Q3 2024 net income was $25.8 million.

What was the cash distribution announced by Kimbell Royalty Partners for Q3 2024?

Kimbell Royalty Partners announced a Q3 2024 cash distribution of $0.41 per common unit.

How many active rigs did Kimbell Royalty Partners have in Q3 2024?

Kimbell Royalty Partners had 90 active rigs in Q3 2024, representing 16% of the U.S. land rig count.

What was Kimbell Royalty Partners' Q3 2024 Adjusted EBITDA?

Kimbell Royalty Partners' Q3 2024 Adjusted EBITDA was $63.1 million.

How much debt did Kimbell Royalty Partners have as of September 30, 2024?

As of September 30, 2024, Kimbell Royalty Partners had $252.2 million in debt.

What was the average realized price per Mcf of natural gas for Kimbell Royalty Partners in Q3 2024?

The average realized price per Mcf of natural gas for Kimbell Royalty Partners in Q3 2024 was $1.71.

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