Kimbell Royalty Partners ( (KRP) ) has released its Q3 earnings. Here is a breakdown of the information Kimbell Royalty Partners presented to its investors.
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Kimbell Royalty Partners, LP is a leading oil and natural gas mineral and royalty company based in Fort Worth, Texas, holding interests in over 129,000 wells across the U.S. The company operates within the energy sector, focusing on the acquisition and management of mineral and royalty interests.
Kimbell Royalty Partners announced its financial results for the third quarter of 2024, highlighting significant production levels, increased operator activity, and a robust market share of the U.S. land rig count. The company declared a cash distribution of $0.41 per common unit, reflecting a 10% annualized yield based on recent market prices.
In the third quarter, Kimbell reported a run-rate daily production of 23,846 barrels of oil equivalent per day, with total revenues amounting to $83.8 million. The company’s net income reached approximately $25.8 million, with an adjusted EBITDA of $63.1 million. Kimbell also noted a substantial increase in drilled but uncompleted wells, particularly in the Permian Basin, and maintained a conservative balance sheet with a net debt to EBITDA ratio of 0.8x.
The company has been actively drilling with 90 rigs on its acreage, capturing 16% of the U.S. land rig market share. Kimbell continues to repay its outstanding borrowings under its revolving credit facility, utilizing 25% of its cash available for distribution for this purpose. The company also announced that the Q3 2024 distribution is expected to be a return of capital, enhancing the after-tax return for its unitholders.
Looking ahead, Kimbell Royalty Partners remains confident in its production resilience and financial stability as it wraps up the year, with management affirming its operational and financial guidance for 2024. The company’s strategic focus on maintaining a strong operational footprint and financial discipline positions it well for future growth in the energy market.
