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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, 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.
Kimbell Royalty Partners (KRP) will release its fourth quarter 2020 financial results on February 25, 2021, before the market opens, with a live conference call scheduled for 10:00 a.m. Central (11:00 a.m. Eastern). The company, based in Fort Worth, Texas, owns interests in over 96,000 gross wells across 28 states, including significant holdings in the Permian Basin. Investors can access the conference call via phone or webcast through Kimbell's Investor Relations website.
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