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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 (KRP) reported strong Q2 2021 financial results, achieving a run-rate production of 14,011 Boe/day, a 2% increase from Q1 2021. Revenues rose 7% to $38.8 million, with net income of $3.7 million, up from $0.5 million in Q1. Record Adjusted EBITDA reached $28.1 million. The company redeemed 55% of its Series A preferred units, simplifying its capital structure. Tax benefits are expected, with no federal income tax from 2021 to 2027 for common unitholders. A cash distribution of $0.31 per unit was announced, reflecting a 15% increase.
Kimbell Royalty Partners, LP (NYSE: KRP), a major oil and gas mineral owner, declared a cash distribution of $0.31 per common unit for Q2 2021. This payment represents 75% of the projected cash available for distribution and will be distributed on August 9, 2021. Kimbell plans to allocate the remaining 25% to reduce outstanding borrowings, totaling about $30.6 million since May 2020. The average WTI crude oil price increased by 14.4% to $66.09, while natural gas prices decreased by 17.4% to $2.94.
Kimbell Royalty Partners, LP (NYSE: KRP) will release its second quarter 2021 financial results on August 5, 2021, before market opening. A live conference call will follow at 10:00 a.m. Central that same day. Investors can access the call by dialing 201-389-0869 or via webcast on Kimbell's Investor Relations website. Kimbell is known for its extensive mineral and royalty interests across more than 97,000 gross wells in 28 states, including over 41,000 wells in the Permian Basin.
Kimbell Royalty Partners (NYSE: KRP) announced its participation in the Stifel 2021 Virtual Cross Sector Insight Conference, scheduled for June 9, 2021. The company, known for its extensive ownership of oil and natural gas mineral and royalty interests, operates over 97,000 gross wells across 28 states. Based in Fort Worth, Texas, Kimbell holds mineral rights in over 13 million acres and has a significant presence in the Permian Basin with over 41,000 wells. For more information, visit kimbellrp.com.
Kimbell Royalty Partners, LP (NYSE: KRP) reported its Q1 2021 financial results, highlighting a daily production of 13,721 Boe and a revenue increase of 40% from Q4 2020, totaling $36.4 million. Net income was approximately $537,000, improving from a significant loss in the previous quarter. The company announced a cash distribution of $0.27 per unit, a 42% increase, reflecting a 9.4% annualized yield. A detailed portfolio review revealed 10,160 gross drilling locations, projecting 15 years of inventory and an active rig count increase of 26%.
Kimbell Royalty Partners (NYSE: KRP) announced a cash distribution of $0.27 per common unit for Q1 2021, amounting to 75% of projected cash available for distribution. This payment is scheduled for May 10, 2021, to unitholders on record by May 3, 2021. The company aims to allocate the remaining 25% to reduce its credit facility borrowings, totaling approximately $25 million paid down since May 2020. The average crude oil price rose 36.1% to $57.79 per barrel, while natural gas prices increased 40.7% to $3.56 per MMBtu.
Kimbell Royalty Partners, LP (NYSE: KRP) will release its first quarter 2021 financial results on May 6, 2021, before market open. A conference call is scheduled for 10:00 a.m. Central on the same day, available via phone and webcast. Kimbell also announced participation in the UBS Global Oil and Gas Virtual Conference on March 26, 2021 and the World Oilman's Mineral and Royalty Conference on April 19-20, 2021. Kimbell owns interests in over 97,000 gross wells across the U.S.
Kimbell Royalty Partners (NYSE: KRP) announced the filing of its Annual Report on Form 10-K for the fiscal year ending December 31, 2020, with the U.S. SEC. The report details Kimbell's ownership of mineral and royalty interests across over 13 million acres and more than 97,000 wells in 28 states, including over 41,000 in the Permian Basin. The Annual Report, containing audited financial statements, is accessible on Kimbell's website and the SEC's site. Investors may obtain a hard copy by contacting Kimbell's investor relations.
Kimbell Royalty Partners (NYSE: KRP) reported its Q4 2020 results, posting a daily production of 14,062 Boe, with revenues of $25.9 million, a 6% increase from Q3 2020. The net loss for Q4 was $93.8 million due to a non-cash impairment expense of $92.9 million. The company actively drilled 39 rigs, achieving a 30% increase in drilling activity compared to Q3. Kimbell amended its credit facility, raising commitments by 18%. A Q4 cash distribution of $0.19 per common unit reflects a 75% payout ratio. The company anticipates stable production for 2021 and focuses on strategically consolidating in the oil and gas royalty sector.
On January 22, 2021, Kimbell Royalty Partners (NYSE: KRP) announced a fourth-quarter 2020 cash distribution of $0.19 per common unit, representing 75% of projected cash available for distribution. The payment will be issued on February 8, 2021, to unitholders of record by February 1, 2021. Additionally, Kimbell plans to allocate 25% of the cash for distribution to reduce outstanding borrowings, having previously paid down $21.2 million in 2020. The average crude oil price was reported at $42.45, a 3.8% increase, while natural gas prices rose 26.5% to $2.53.
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