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) has announced an acquisition of mineral and royalty interests from MB Minerals, a subsidiary of Sabalo Holdings, for approximately
Kimbell Royalty Partners (NYSE: KRP) will release its first quarter 2023 financial results on May 3, 2023, before the market opens. The company will also declare its first quarter distribution at that time. Following the earnings announcement, Kimbell has scheduled a conference call on the same day at 10:00 a.m. Central (11:00 a.m. Eastern), which will be broadcast live over the internet. Kimbell holds oil and natural gas mineral and royalty interests across more than 124,000 gross wells in 28 states, with significant ownership in the Permian Basin. Investors can connect via Kimbell's Investor Relations website for the webcast.
Kimbell Royalty Partners (KRP) has filed its Annual Report on Form 10-K for the fiscal year ending December 31, 2022, with the SEC. This report is accessible on Kimbell's website and the SEC's site. As a prominent player in the oil and gas sector, Kimbell owns mineral and royalty interests across 16 million gross acres in 28 states, including over 124,000 gross wells, with a significant presence in the Permian Basin. Investors can request a hard copy of the Annual Report, including audited financial statements, at no cost.
Kimbell Royalty Partners, LP (NYSE: KRP) reported record revenues of $64.4 million in Q4 2022, marking a 12.8% decline from Q3 2022 primarily due to lower commodity prices. The company's net income was approximately $35.2 million, down from $43.8 million in the previous quarter. Q4 run-rate production reached 17,176 Boe/d, supported by the acquisition of mineral interests from Hatch Royalty. The company announced a cash distribution of $0.48 per common unit and increased its credit facility to $350 million, reflecting a conservative balance sheet with a net debt to EBITDA ratio of 0.9x. Kimbell maintains positive growth expectations for 2023, projecting daily production at 17,200 Boe/d.
Kimbell Royalty Partners, LP (NYSE: KRP) announced the release date for its fourth quarter 2022 financial results, scheduled for February 23, 2023, before market opening. In this release, the company will also declare its fourth quarter distribution. A conference call will follow at 10:00 a.m. Central (11:00 a.m. Eastern), offering an opportunity for investors to engage directly with the management. Kimbell, based in Fort Worth, Texas, has significant holdings in oil and gas, owning interests in over 123,000 gross wells across 28 states.
Kimbell Royalty Partners, LP (NYSE: KRP) announced the closing of its acquisition of mineral and royalty interests from Hatch Royalty LLC, valued at approximately $270.7 million. This deal included $150.4 million in cash and 7.3 million common units worth about $120.3 million. As of October 1, 2022, the acquired assets produced about 2,072 Boe/d, with projections for 2023 at 2,522 Boe/d. The assets are primarily located in the Permian Basin, boosting Kimbell's significant mineral holdings across the U.S.
Kimbell Royalty Partners, LP (NYSE: KRP) has announced the pricing of its public offering of 6,000,000 common units at $17.75 each, generating approximately $106.5 million in gross proceeds. The offering is set to close on November 8, 2022. The funds will partially finance the acquisition of oil and natural gas interests from Hatch Royalty LLC and to repay existing revolving credit facility borrowings. Underwriters have the option to purchase an additional 900,000 units. Citigroup and Raymond James are the lead managers for this offering.
Kimbell Royalty Partners, LP (NYSE: KRP) has initiated a public offering of 5,000,000 common units, with an option for underwriters to purchase an additional 750,000 units. The proceeds will mainly fund the acquisition of mineral and royalty interests from Hatch Royalty, LLC, while also addressing outstanding debts under its revolving credit facility. Citigroup and Raymond James are leading the offering, which is conducted under an effective Form S-3 registration statement. This announcement follows a recent filing regarding the Hatch Acquisition.
Kimbell Royalty Partners (NYSE: KRP) announced a $290 million acquisition of mineral and royalty interests from Hatch Royalty, enhancing its portfolio in the Permian Basin. The deal comprises $150 million in cash and approximately 7.3 million units valued at $140 million. The acquisition is projected to boost daily production by 14% and reduce cash G&A per Boe by 12%. With expected average production of 2,522 Boe/d in 2023, Kimbell aims to maintain a conservative leverage ratio of 1.1x post-transaction.
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