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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 (KRP) reported a record daily production run-rate of 14,985 Boe/d in Q3 2022, marking an 8% growth in oil production from Q2 2022. Total revenues fell by 6% to $73.9 million, attributed to declining oil prices. Net income was approximately $43.8 million. The company declared a cash distribution of $0.49 per common unit, representing a 75% payout ratio of cash available for distribution. With 79 rigs actively drilling, Kimbell holds a significant market share and anticipates strong long-term demand for oil and gas due to underinvestment in the sector.
Kimbell Royalty Partners (NYSE: KRP) will release its third quarter 2022 financial results on November 3, 2022, before market opening. The company will also declare its third quarter distribution during this announcement. To discuss these results, Kimbell has scheduled a live conference call at 10:00 a.m. Central the same day. The call will be accessible via phone and online, with a replay available until November 10.
Kimbell operates in over 122,000 wells across 28 states, highlighting its extensive presence in the oil and gas sector.
Kimbell Royalty Partners (NYSE: KRP) reported a record run-rate production of 14,948 Boe/d, a 4% increase from Q1 2022, alongside record revenues of $78.6 million for Q2 2022, marking a 21% rise. Net income reached $43.3 million, with cash available for distribution at $0.74 per unit, leading to a declared cash distribution of $0.55, a 17% increase. The company also recorded a solid financial position, with a 1.2x net debt to EBITDA ratio. Despite recessionary fears, Kimbell remains bullish about the oil and gas industry.
Kimbell Royalty Partners (NYSE: KRP) will release its second quarter 2022 financial results on August 4, 2022, before market opening. The release will be accompanied by a distribution declaration. A conference call is scheduled for 10:00 a.m. Central to discuss the results, accessible by phone or webcast. Kimbell operates over 16 million gross acres across 28 states, owning interests in more than 122,000 gross wells, including 46,000 in the Permian Basin. For further details, visit kimbellrp.com.
Kimbell Royalty Partners (NYSE: KRP) reported strong Q1 2022 results, highlighting a 25% increase in oil, natural gas, and NGL revenues to $65.1 million. The net income reached $8.4 million, with a cash distribution of $0.47 per common unit, marking a 27% increase from Q4 2021. The company recorded an average daily production of 14,388 Boe and a significant 20% growth in rig count, totaling 73 rigs. Kimbell maintains a strong balance sheet, with approximately $226.5 million in debt and an undrawn capacity of $48.5 million.
Kimbell Royalty Partners, LP (NYSE: KRP) announced a cash distribution of $0.47 per common unit for Q1 2022, representing 75% of projected cash available for distribution. This payment is set for May 9, 2022, to unitholders recorded by May 2, 2022. Kimbell will allocate 25% of the available cash to reduce outstanding borrowings, contributing to a total of approximately $52.5 million paid down since May 2020. The distribution is expected to be free of dividend income taxes, categorized as a return of capital.
Kimbell Royalty Partners, LP (NYSE: KRP) announced it will report its first quarter 2022 financial results on May 5, 2022, prior to market opening. A live conference call will be held on that same day at 10:00 a.m. Central. Kimbell holds mineral and royalty interests across 16 million gross acres in 28 states, including over 122,000 gross wells and a significant presence in the Permian Basin. Investors can access the call via phone or webcast through the company's Investor Relations page.
Kimbell Royalty Partners (NYSE: KRP) filed its Annual Report on Form 10-K for the fiscal year ending December 31, 2021, with the SEC. The report is accessible via Kimbell's website and the SEC's platform. Kimbell owns mineral and royalty interests in over 16 million gross acres across 28 states, with significant holdings in the Permian Basin, comprising more than 46,000 wells. Investors can request a hard copy of the Annual Report, including audited financial statements, for free by contacting Kimbell Investor Relations.
Kimbell Royalty Partners (NYSE: KRP) reported strong Q4 2021 results, achieving a record net income of approximately $30.7 million and revenue of $55.7 million, largely driven by improved commodity prices. The company's daily production reached 14,023 Boe, with a full impact of the recent acquisition raising this to 14,521 Boe. Kimbell announced a cash distribution of $0.37 per common unit and redeemed remaining preferred units, enhancing its capital structure. Additionally, it has a strong operational position with 61 rigs active, a debt-to-EBITDA ratio of 1.7x, and plans for strategic growth in 2022.
Kimbell Royalty Partners (NYSE: KRP) announced a cash distribution of $0.37 per common unit for Q4 2021, representing 75% of projected cash available for distribution. This payout will be made on February 7, 2022 to unitholders of record as of January 31, 2022. The remaining 25% will be used to pay down debt, contributing to a total pay down of approximately $44.5 million since May 2020. Kimbell's mineral and royalty interests cover over 13 million acres across 28 states with ownership in more than 122,000 wells.
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