Kimbell Royalty Partners, LP (KRP) Bundle
A Brief History of Kimbell Royalty Partners, LP
Company Overview
Kimbell Royalty Partners, LP is a publicly traded limited partnership that focuses on the acquisition and management of mineral and royalty interests in oil and natural gas properties. The company is listed on the New York Stock Exchange under the ticker symbol "KRP."
Recent Financial Performance
As of September 30, 2024, Kimbell Royalty Partners reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Oil, Natural Gas and NGL Revenues | $71,069,593 | $69,237,603 | $235,528,275 | $183,635,976 |
| Total Revenues | $83,785,439 | $67,204,273 | $242,592,275 | $194,873,007 |
| Net Income | $25,805,447 | $18,481,038 | $50,328,915 | $65,177,607 |
| Adjusted EBITDA | $63,122,605 | $55,773,677 | $203,056,573 | $143,065,989 |
Production Data
For the three months ended September 30, 2024, the production data was as follows:
| Production Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Oil (Bbls) | 660,789 | 622,831 |
| Natural Gas (Mcf) | 6,793,748 | 5,589,952 |
| NGL (Bbls) | 400,796 | 264,967 |
| Combined Volumes (Boe) | 2,193,876 | 1,819,457 |
Recent Acquisitions
Kimbell Royalty Partners has made significant acquisitions that have bolstered its asset base:
- In 2023, the company completed the LongPoint Acquisition, which significantly increased its net capitalized oil and natural gas properties.
- The MB Minerals Acquisition also contributed to the increase in production and revenues.
Market Trends and Pricing
The average market prices for oil and natural gas for the nine months ended September 30, 2024, were reported as:
| Commodity | Average Price | Comparison to 2023 |
|---|---|---|
| Oil (per Bbl) | $77.24 | Increase of 1.4% from $76.17 |
| Natural Gas (per Mcf) | $1.89 | Decrease of 28.9% from $2.66 |
Debt and Liquidity
As of September 30, 2024, Kimbell Royalty Partners had an outstanding balance of $252.2 million under its secured revolving credit facility. The company was compliant with all covenants associated with its debt agreements.
Conclusion on Financial Health
Despite fluctuations in commodity prices, Kimbell Royalty Partners has demonstrated resilience through strategic acquisitions and solid revenue growth. The company’s operational metrics and financial health reflect its position in the competitive landscape of the oil and gas industry.
A Who Owns Kimbell Royalty Partners, LP (KRP)
Ownership Structure
Kimbell Royalty Partners, LP (KRP) has a complex ownership structure comprising common units, Class B units, and Series A preferred units. As of September 30, 2024, the ownership details are as follows:
| Unit Type | Units Issued | Value (in USD) |
|---|---|---|
| Common Units | 80,969,651 | 531,293,639 |
| Class B Units | 14,524,120 | 726,206 |
| Series A Preferred Units | 325,000 | 315,607,500 |
Major Shareholders
The major shareholders of Kimbell Royalty Partners, LP include both institutional investors and individual stakeholders. The following table summarizes the significant shareholders and their ownership stakes:
| Shareholder | Ownership Percentage | Units Held |
|---|---|---|
| Ben J. Fortson | 8.5% | 6,897,000 |
| Robert D. Ravnaas | 7.2% | 5,800,000 |
| Brett G. Taylor | 6.0% | 4,800,000 |
| Mitch S. Wynne | 5.3% | 4,240,000 |
Financial Performance Indicators
Kimbell Royalty Partners, LP reported the following financial performance metrics for the nine months ended September 30, 2024:
| Metric | Value (in USD) |
|---|---|
| Total Revenues | 242,592,275 |
| Net Income | 50,328,915 |
| Cash Available for Distribution | 139,163,747 |
| Adjusted EBITDA | 167,265,259 |
Equity and Debt Structure
The total equity and debt structure of Kimbell Royalty Partners, LP is detailed below:
| Category | Amount (in USD) |
|---|---|
| Total Liabilities | 271,611,428 |
| Total Unitholders' Equity | 532,019,845 |
| Non-controlling Interest in OpCo | 95,432,301 |
| Total Equity | 627,452,146 |
Recent Developments
As of 2024, Kimbell Royalty Partners, LP has engaged in notable acquisition activities, including:
- MB Minerals Acquisition completed in May 2023.
- LongPoint Acquisition finalized in September 2023.
These acquisitions have significantly influenced the company's mineral and royalty interests, enhancing its position in the market.
Kimbell Royalty Partners, LP (KRP) Mission Statement
Kimbell Royalty Partners, LP (KRP) focuses on acquiring and managing mineral and royalty interests in oil and natural gas properties. The company aims to deliver stable cash flows and strong returns to its unitholders through strategic investments and a disciplined approach to capital allocation.
Strategic Objectives
The strategic objectives of Kimbell Royalty Partners include:
- Maximizing cash flow through the acquisition of high-quality mineral and royalty interests.
- Maintaining a strong balance sheet to support growth and manage risk effectively.
- Delivering consistent cash distributions to unitholders.
- Implementing sustainable practices in the management of its resources.
Financial Performance Metrics
As of September 30, 2024, Kimbell Royalty Partners reported a range of financial metrics that reflect its operational effectiveness and financial health:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $83,785,439 | $67,204,273 | $242,592,275 | $194,873,007 |
| Net Income | $25,805,447 | $18,481,038 | $50,328,915 | $65,177,607 |
| Operating Income | $34,204,320 | $25,290,058 | $75,657,548 | $83,255,507 |
| Adjusted EBITDA | $63,122,605 | $55,773,677 | $203,056,573 | $143,065,989 |
| Cash Available for Distribution | $44,228,532 | $38,078,933 | $139,163,747 | $98,388,557 |
| Debt | $252,159,776 | $294,200,000 | $252,159,776 | $294,200,000 |
Recent Acquisitions
Kimbell Royalty Partners has made significant acquisitions to enhance its asset base:
- The LongPoint Acquisition on September 13, 2023, valued at approximately $455 million.
- The MB Minerals Acquisition on May 17, 2023, for a total consideration of approximately $48.8 million in cash and equity.
Cash Distribution Policy
The company’s cash distribution policy requires it to distribute all cash on hand at the end of each quarter equal to its available cash. As of Q3 2024, the Board allocated 25% of cash available for distribution for debt repayment.
Production Data
For the three months ended September 30, 2024, the production data is as follows:
| Type of Production | Q3 2024 | Q3 2023 |
|---|---|---|
| Oil (Bbls) | 660,789 | 622,831 |
| Natural Gas (Mcf) | 6,793,748 | 5,589,952 |
| Natural Gas Liquids (Bbls) | 400,796 | 264,967 |
| Combined Volumes (Boe) | 2,193,876 | 1,819,457 |
Market Conditions
The average prices of oil and natural gas as of March 31, 2024, were:
- Oil: $77.48 per Bbl
- Natural Gas: $2.45 per Mcf
These prices reflect a decrease of 14.8% and 58.8% from the previous year, respectively, which has impacted the financial performance and valuation of Kimbell's assets.
Equity Structure
As of September 30, 2024, the equity structure of Kimbell Royalty Partners is as follows:
| Type of Units | Units Issued | Equity Value |
|---|---|---|
| Common Units | 80,969,651 | $531,293,639 |
| Class B Units | 14,524,120 | $726,206 |
| Non-controlling Interest in OpCo | N/A | $95,432,301 |
| Total Unitholders' Equity | N/A | $627,452,146 |
How Kimbell Royalty Partners, LP (KRP) Works
Business Model
Kimbell Royalty Partners, LP (KRP) operates primarily as a mineral and royalty acquisition company in the oil and gas sector. The company acquires and manages mineral and royalty interests, generating revenue from the production of oil, natural gas, and natural gas liquids (NGLs).
Financial Performance
As of September 30, 2024, KRP reported total revenues of $83.8 million for the third quarter, an increase from $67.2 million in the same period of 2023. This increase is driven by higher production volumes.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $83,785,439 | $67,204,273 | $242,592,275 | $194,873,007 |
| Operating Income | $34,204,320 | $25,290,058 | $75,657,548 | $83,255,507 |
| Net Income | $25,805,447 | $18,481,038 | $50,328,915 | $65,177,607 |
| Net Income per Unit (Basic) | $0.22 | $0.20 | $0.38 | $0.80 |
Production Volumes
For the nine months ended September 30, 2024, KRP produced the following volumes:
| Production Type | Volume (Units) |
|---|---|
| Oil (Bbls) | 2,157,197 |
| Natural Gas (Mcf) | 20,921,140 |
| NGL (Bbls) | 1,242,135 |
Acquisitions
KRP's growth strategy includes significant acquisitions. Key acquisitions include:
- MB Minerals Acquisition (May 17, 2023): Total consideration of approximately $48.8 million in cash and 5,369,218 common units.
- LongPoint Acquisition (September 13, 2023): Cash transaction valued at approximately $455 million.
Expenses and Costs
For the nine months ended September 30, 2024, KRP reported the following costs:
| Cost Type | Amount |
|---|---|
| Production and Ad Valorem Taxes | $16,455,621 |
| Depreciation and Depletion Expense | $103,345,780 |
| General and Administrative Expense | $29,172,121 |
Cash Flow and Liquidity
KRP's cash flow for the nine months ended September 30, 2024, was as follows:
| Cash Flow Type | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $194,344,819 |
| Net Cash Used in Investing Activities | ($175,808) |
| Net Cash Used in Financing Activities | ($190,455,505) |
Debt and Interest Expense
KRP's interest expense for the nine months ended September 30, 2024, was $20.7 million, compared to $18.5 million in the prior year. The company had an outstanding long-term debt balance of $252.2 million as of September 30, 2024.
Equity and Distributions
KRP's equity structure as of September 30, 2024, included:
| Equity Type | Units Issued and Outstanding | Value |
|---|---|---|
| Common Units | 80,969,651 | $531,293,639 |
| Class B Units | 14,524,120 | $726,206 |
| Series A Preferred Units | 325,000 | $315,607,500 |
Cash Distribution Policy
KRP has a policy to distribute all cash on hand at the end of each quarter, which is expected to equal its Adjusted EBITDA for the quarter, less cash needed for debt service and other obligations.
How Kimbell Royalty Partners, LP (KRP) Makes Money
Revenue Streams
Kimbell Royalty Partners, LP generates revenue primarily through royalty payments from the sale of oil, natural gas, and natural gas liquids (NGL). The company benefits from ownership of mineral and royalty interests across various properties.
Production Data
For the three months ended September 30, 2024, Kimbell reported the following production volumes:
- Oil: 660,789 Bbls
- Natural Gas: 6,793,748 Mcf
- NGL: 400,796 Bbls
Revenue Breakdown
The revenue for the three months ended September 30, 2024, was as follows:
| Type | Revenue ($) | Percentage of Total Revenue (%) |
|---|---|---|
| Oil Revenue | 51,599,632 | 73 |
| Natural Gas Revenue | 10,857,225 | 15 |
| NGL Revenue | 8,612,736 | 12 |
| Total Revenue | 71,069,593 | 100 |
Overall Financial Performance
Kimbell Royalty Partners reported total revenues of $83,785,439 for the three months ended September 30, 2024, compared to $67,204,273 for the same period in 2023. This reflects a significant increase driven by higher production volumes and favorable market conditions.
Operating Costs
The company’s operating costs for the three months ended September 30, 2024, were detailed as follows:
| Cost Type | Cost ($) |
|---|---|
| Production and Ad Valorem Taxes | 4,346,922 |
| Depreciation and Depletion Expense | 32,155,040 |
| General and Administrative Expense | 9,472,117 |
| Total Costs | 49,581,119 |
Net Income
For the three months ended September 30, 2024, Kimbell Royalty Partners reported net income attributable to common units of:
- Net Income: $17,375,301
- Net Income per Unit (Basic): $0.22
- Weighted Average Common Units Outstanding: 78,977,450
Cash Flow Data
For the nine months ended September 30, 2024, the cash flow data was as follows:
| Cash Flow Type | Amount ($) |
|---|---|
| Net Cash Provided by Operating Activities | 194,344,819 |
| Net Cash Used in Investing Activities | (175,808) |
| Net Cash Used in Financing Activities | (190,455,505) |
| Net Increase in Cash and Cash Equivalents | 3,713,506 |
Acquisition Strategy
Kimbell has actively pursued acquisitions to enhance its asset base. Key acquisitions include:
- LongPoint Acquisition (September 2023): Approximately $455 million
- MB Minerals Acquisition (May 2023): Approximately $48.8 million in cash and issuance of units
Debt and Equity Structure
As of September 30, 2024, Kimbell's financial structure included:
- Total liabilities: $271,611,428
- Total unitholders' equity: $627,452,146
- Preferred Units: 325,000 issued and outstanding, valued at $315,607,500
Market Prices
As of September 30, 2024, the average market prices for commodities were:
| Commodity | Price ($) |
|---|---|
| Oil (per Bbl) | 76.43 |
| Natural Gas (per MMBtu) | 2.11 |
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Resources:
- Kimbell Royalty Partners, LP (KRP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kimbell Royalty Partners, LP (KRP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kimbell Royalty Partners, LP (KRP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.