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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) 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.
Kimbell Royalty Partners (NYSE: KRP) announced a cash distribution of $0.37 per common unit for Q4 2021, representing 75% of the projected cash available for distribution. This payment is scheduled for February 7, 2022, to unitholders on record as of January 31, 2022. Kimbell will allocate the remaining 25% to reduce borrowings under its credit facility, having already reduced its debt by approximately $44.5 million since May 2020. Kimbell owns interests in over 122,000 wells across 28 states, emphasizing its robust position in the oil and gas sector.
Kimbell Royalty Partners, LP (NYSE: KRP) announced its fourth quarter 2021 financial results will be released on February 24, 2022, before market opening. A conference call is scheduled for the same day at 10:00 a.m. Central to discuss the results, which will be broadcast live online. Kimbell, based in Fort Worth, Texas, owns mineral and royalty interests across over 13 million acres in 28 states, including more than 121,000 gross wells and 46,000 wells in the Permian Basin.
Kimbell Royalty Partners (NYSE: KRP) has completed its acquisition of mineral and royalty interests for approximately $57 million. The transaction was financed through a public offering of common units and borrowings. Kimbell expects the acquisition to start generating cash flow from November 1, 2021, with production rates of 700 Boe/d from over 26,000 wells. Additionally, the company redeemed all 25,000 Series A Preferred Units, enhancing its balance sheet and reducing capital costs. The acquisition is anticipated to boost distributable cash flow per unit.
Kimbell Royalty Partners, LP (NYSE: KRP) announced the pricing of its public offering of 3,750,000 common units at $14.00 each, totaling approximately $52.5 million in gross proceeds. The offering is set to close on November 15, 2021. Proceeds will be used to fund a cash purchase for the acquisition of oil and natural gas mineral interests and to repay borrowings under its revolving credit facility. An option for underwriters to purchase an additional 562,500 units is also included.
Kimbell Royalty Partners, LP (NYSE: KRP) has initiated a public offering of 3,750,000 common units, with a potential overallotment option for an additional 562,500 units. The proceeds will partially fund a pending acquisition of oil and natural gas interests and cover related expenses. Any remaining funds will be used to repay borrowings under its credit facility. The offering is managed by Citigroup and Raymond James. Kimbell holds mineral and royalty interests across 13 million gross acres in the U.S., significantly enhancing its asset portfolio.
Kimbell Royalty Partners, LP (NYSE: KRP) has announced a $57 million cash acquisition of mineral and royalty interests from an undisclosed seller, set to close in Q4 2021. The acquired assets produced 700 Boe/d as of November 1, 2021, and include over 26,000 gross producing wells across major U.S. basins, enhancing Kimbell's production to 14,783 Boe/d. The acquisition is expected to be immediately accretive to cash flow per unit and supports Kimbell's strategy of consolidating its mineral and royalty interests. The transaction financing will involve an underwritten public offering and borrowings from a credit facility.
Kimbell Royalty Partners (NYSE: KRP) reported strong Q3 2021 results, with daily production hitting 14,083 Boe, a 1% increase from Q2 2021. Revenues rose 23% to $47.6 million, while net income surged 101% to approximately $7.5 million. The cash available for distribution reached $0.50 per unit, up 22%. Kimbell's debt stood at approximately $192.7 million, with plans to redeem Series A Preferred Units in Q1 2022. The company affirmed its 2021 guidance, buoyed by rising commodity prices and a 20% increase in drilling rigs.
Kimbell Royalty Partners (NYSE: KRP) announced a cash distribution of $0.37 per common unit for Q3 2021, representing 75% of projected cash available for distribution. The payout date is set for November 8, 2021, for unitholders of record by November 1. The remaining 25% will be used to reduce outstanding credit facility borrowings, totaling $36.9 million paid down since May 2020. Notably, average crude oil and natural gas prices rose by 6.9% and 48.3%, respectively, in Q3 compared to Q2, contributing to Kimbell’s cash yield of 9.7%.
Kimbell Royalty Partners (NYSE: KRP), a major player in oil and natural gas royalty interests, announced its third quarter 2021 financial results will be released on November 4, 2021, before market opens. The company, which has interests in over 97,000 gross wells across 28 states, will host a live conference call at 10:00 a.m. Central to discuss these results. Interested parties can join via phone or webcast from Kimbell's Investor Relations page.
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