Welcome to our dedicated page for Kimbell Royalty news (Ticker: KRP), a resource for investors and traders seeking the latest updates and insights on Kimbell Royalty stock.
Overview of Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is a Fort Worth, Texas-based company specializing in the ownership and management of mineral and royalty interests in oil and natural gas properties. Operating as a variable rate master limited partnership (MLP), Kimbell's business model is centered on acquiring and holding rights to oil and gas production across the United States, allowing it to collect royalty payments from operators extracting resources from its acreage. This asset-light approach enables Kimbell to benefit from production revenues without bearing the operational risks and capital expenditures associated with drilling and extraction.
Extensive Geographic Footprint
Kimbell's portfolio comprises mineral and royalty interests in over 17 million gross acres across 28 states, making it one of the largest owners of such assets in the U.S. The company has a presence in every major onshore basin, including the Permian Basin, Mid-Continent, Appalachian Basin, Eagle Ford, Bakken/Williston Basin, DJ Basin/Rockies/Niobrara, and Terryville/Cotton Valley/Haynesville. This broad geographic diversification mitigates risks associated with localized market fluctuations and enhances exposure to a variety of resource types, including oil, natural gas, and natural gas liquids (NGLs).
Revenue Streams and Business Model
Kimbell generates revenue primarily through royalty payments tied to the sale of oil, natural gas, and NGL production. These payments are made by operators who extract resources from Kimbell's acreage. The company's interests span over 130,000 gross wells, with approximately 51,000 wells located in the prolific Permian Basin. This diversified portfolio ensures a steady stream of income while reducing dependency on any single operator or basin. Additionally, Kimbell benefits from lease bonuses, which are payments received when operators secure drilling rights on its acreage.
Strategic Positioning and Competitive Advantages
Kimbell is uniquely positioned within the highly fragmented U.S. mineral and royalty sector, which is estimated to represent a market opportunity exceeding $700 billion. The company has established itself as a leading consolidator, leveraging its financial resources, technical expertise, and industry relationships to acquire high-quality assets. Its focus on acquiring properties with existing production, undeveloped drilling inventory, and active rig counts ensures both immediate cash flow and long-term growth potential.
Operational Highlights
As of the most recent data, Kimbell's acreage hosts approximately 87 rigs actively drilling, representing about 15% of all land rigs in the continental United States. The company also maintains a robust inventory of drilled but uncompleted wells (DUCs) and permitted locations, providing visibility into future production. This operational activity underscores the resilience and productivity of Kimbell's asset base.
Risk Management and Financial Discipline
Kimbell employs a disciplined financial strategy, allocating a portion of its cash flow to reduce debt while maintaining consistent distributions to unitholders. This approach enhances financial stability and positions the company to capitalize on acquisition opportunities. Additionally, its reliance on external operators for production introduces a degree of risk, which Kimbell mitigates through diversification across multiple operators and basins.
Industry Significance
Kimbell plays a vital role in the energy sector by providing operators with access to mineral and royalty interests, thereby facilitating resource extraction and energy production. Its asset-light model and focus on high-quality basins make it a compelling entity within the oil and gas industry.
Conclusion
In summary, Kimbell Royalty Partners, LP stands out as a leading owner of mineral and royalty interests, offering investors exposure to the oil and gas sector's revenue streams without the operational risks of direct production. Its expansive geographic footprint, diversified portfolio, and disciplined financial management underscore its position as a key player in the U.S. energy landscape.
Kimbell Royalty Partners (NYSE: KRP) reported strong Q2 2024 results, with run-rate daily production of 24,110 Boe/d, exceeding guidance midpoint. The company announced a cash distribution of $0.42 per common unit, representing a 10.2% annualized yield. Key highlights include:
- Q2 2024 oil, natural gas, and NGL revenues of $77.0 million
- Net income of $15.2 million
- Consolidated Adjusted EBITDA of $65.8 million
- Record low cash G&A per BOE of $2.34
- 91 active rigs drilling on Kimbell's acreage, representing 16.3% market share of U.S. land rigs
- Conservative balance sheet with Net Debt to TTM Consolidated Adjusted EBITDA of 0.9x
Kimbell maintains a strong operational position with 7.96 net DUCs and permitted locations, well above the 5.8 net wells needed to maintain flat production.
Kimbell Royalty Partners (NYSE: KRP) announced that it will release its second quarter 2024 financial results on August 1, 2024, before market open. Concurrently, Kimbell will declare its second quarter 2024 distribution.
The company, which holds oil and natural gas mineral and royalty interests in over 129,000 wells across 28 states, will host a conference call at 10:00 a.m. Central (11:00 a.m. Eastern) on the same day. Interested parties can join the call by dialing 201-389-0869 or accessing the webcast via Kimbell's Investor Relations website. Replay of the call will be available until August 9, 2024.
Kimbell Royalty Partners (NYSE: KRP) announced the passing of Ben J. Fortson, a board member with nearly 60 years of experience in the oil and gas industry.
Fortson was President and CEO of Fortson Oil Company since 1986 and served as Chief Investment Officer and Executive Vice President of the Kimbell Art Foundation since 1975. He began investing in oil and natural gas minerals and royalties in the late 1990s on behalf of the Kimbell Art Foundation, which was a significant sponsor of Kimbell Royalty Partners.
Fortson played a important role in the creation of Kimbell Royalty Partners, from its initial public offering in February 2017 to his tenure as a board member until 2024. His contributions, including his investing skills and vision, were key to the company's success.
Chairman and CEO Robert Ravnaas expressed deep sadness at Fortson's passing, highlighting his wise counsel, sense of humor, and friendship.
Kimbell Royalty Partners (NYSE: KRP) announced record first-quarter 2024 results with impressive daily production, revenue, and EBITDA figures. The company achieved a 1.4% increase in production and a 4.2% increase in revenue from Q4 2023. Kimbell also reported a Q1 2024 cash distribution of $0.49 per common unit and a conservative balance sheet with low debt levels. The company affirms its financial and operational guidance for 2024, reflecting confidence in the industry and long-term shareholder value.
FAQ
What is the current stock price of Kimbell Royalty (KRP)?
What is the market cap of Kimbell Royalty (KRP)?
What does Kimbell Royalty Partners, LP do?
Where does Kimbell Royalty Partners operate?
How does Kimbell Royalty Partners generate revenue?
What makes Kimbell Royalty Partners unique in the energy sector?
What are the risks associated with Kimbell Royalty Partners' business model?
What is Kimbell's presence in the Permian Basin?
How does Kimbell Royalty Partners manage financial risk?
What role does Kimbell play in the U.S. energy sector?
How does Kimbell approach acquisitions?
What is Kimbell's market share in active U.S. land rigs?
