Mission Statement, Vision, & Core Values (2024) of Kimbell Royalty Partners, LP (KRP)

An Overview of Kimbell Royalty Partners, LP (KRP)

General Summary of Kimbell Royalty Partners, LP (KRP)

Kimbell Royalty Partners, LP (KRP) was founded in 2013 and is headquartered in Fort Worth, Texas. The company is primarily engaged in the acquisition and management of mineral and royalty interests in oil and natural gas properties across the United States. KRP focuses on generating revenue through royalty payments from the sale of oil, natural gas, and natural gas liquids (NGLs).

As of 2024, Kimbell Royalty Partners has approximately 80.97 million common units and 14.52 million Class B units outstanding. The company has experienced significant growth, driven by strategic acquisitions and an expanding production base. In 2024, KRP's total revenues reached $242.59 million, up from $194.87 million in 2023.

Company's Financial Performance in the Latest Financial Reports

In the latest financial report for the three months ended September 30, 2024, Kimbell Royalty Partners reported total revenues of $83.79 million, an increase from $67.20 million in the same period of 2023. The increase in revenues was primarily driven by a rise in oil, natural gas, and NGL production volumes, which totaled 2,193,876 Boe for the quarter, compared to 1,819,457 Boe in the previous year.

Key financial metrics for the three months ended September 30, 2024, include:

For the nine months ended September 30, 2024, KRP reported a net cash provided by operating activities of $194.34 million, a substantial increase from $114.96 million in the same period of 2023. The company's interest expense for the nine months was $20.74 million, an increase from $18.49 million in 2023.

Introduction to Kimbell Royalty Partners as a Leader in the Industry

Kimbell Royalty Partners, LP is recognized as a leader in the oil and gas royalty sector, leveraging its extensive mineral and royalty interests to generate substantial revenue streams. The company operates a diversified portfolio across various productive basins in the United States, including the Permian Basin, which remains a focal point for oil production.

As of September 30, 2024, KRP has 90 active rigs operating on its acreage, although this is a decrease from 99 rigs in the previous year. Despite fluctuations in the number of active rigs, KRP continues to benefit from its strategic acquisitions, such as the MB Minerals and LongPoint acquisitions, which have bolstered its production capabilities and market presence.

For investors looking to understand Kimbell Royalty Partners’ growth trajectory and operational success in the competitive oil and gas industry, further exploration of their financial strategies and market positioning is recommended.

Mission Statement of Kimbell Royalty Partners, LP (KRP)

Mission Statement of Kimbell Royalty Partners, LP (KRP)

Kimbell Royalty Partners, LP (KRP) is committed to maximizing the value of its mineral and royalty interests through strategic acquisitions, operational excellence, and sustainable practices. The mission statement serves as a guiding framework for the company’s long-term goals and reflects its dedication to stakeholders.

Core Component 1: Maximizing Value

The first core component emphasizes KRP’s commitment to maximizing value for its unitholders. This is evident in the company’s robust financial performance. For the nine months ended September 30, 2024, KRP reported total revenues of $242.6 million, an increase from $194.9 million in the same period in 2023 . The operating income for the same period was $75.7 million, compared to $83.3 million in the prior year . This reflects KRP's strategic focus on enhancing its asset portfolio and optimizing production efficiencies.

Core Component 2: Strategic Acquisitions

KRP's growth strategy involves targeted acquisitions of mineral and royalty interests. The company completed significant acquisitions, including the LongPoint Acquisition in September 2023, valued at approximately $455 million. Additionally, it acquired assets from MB Minerals, L.P. for $48.8 million in cash and equity. These strategic moves aim to expand KRP’s operational footprint and enhance its revenue-generating capabilities.

Core Component 3: Sustainability and Operational Excellence

KRP prioritizes sustainability and operational excellence in its mission. The company is focused on maintaining efficient operations, as evidenced by its Adjusted EBITDA of $167.3 million for the nine months ended September 30, 2024, compared to $111.8 million in the previous year. Furthermore, the company has implemented measures to manage costs effectively, with general and administrative expenses increasing to $29.2 million from $26.6 million year-over-year, indicating a commitment to controlling operational costs while pursuing growth .

Vision Statement of Kimbell Royalty Partners, LP (KRP)

Vision Statement of Kimbell Royalty Partners, LP (KRP)

The vision statement of Kimbell Royalty Partners, LP (KRP) articulates the company's commitment to being a leading player in the mineral and royalty acquisition space, focusing on sustainable growth, strategic partnerships, and maximizing value for its unitholders. The vision emphasizes innovation and operational excellence in the oil and gas sector.

Kimbell Royalty Partners aims to expand its portfolio through strategic acquisitions of mineral and royalty interests. In 2024, the company completed significant acquisitions, including:

• Acquisition of Cherry Creek Minerals LLC for approximately $455 million.
• Acquisition of mineral assets from MB Minerals, L.P. valued at $48.8 million in cash and additional equity.

These acquisitions are pivotal in enhancing KRP's operational footprint and increasing its production volumes. As of September 30, 2024, KRP reported oil production of 660,789 barrels and natural gas production of 6,793,748 Mcf.

KRP recognizes the importance of sustainable practices in the oil and gas industry. The company is focused on minimizing environmental impact while maximizing resource extraction efficiency. In 2024, KRP's operational strategies were guided by:

• Investment in technology for enhanced oil recovery.
• Implementation of best practices in environmental management.

These initiatives not only contribute to operational efficiency but also align with investor expectations regarding corporate responsibility and sustainability.

Kimbell Royalty Partners is dedicated to maximizing returns for its unitholders. The company has consistently maintained a robust cash distribution policy, distributing all available cash each quarter. For the third quarter of 2024, KRP allocated 25% of its cash available for distribution towards debt repayment, enhancing long-term financial stability.

Financial highlights for the third quarter of 2024 include:

KRP is committed to leveraging innovation and technology to enhance operational efficiencies and optimize resource management. The company has invested in advanced data analytics and monitoring systems to track production metrics and manage assets effectively. These technologies are expected to drive efficiencies and reduce costs in the long run.

Kimbell Royalty Partners positions itself as a competitive player in the oil and gas market, with a focus on quality asset acquisition and management. As of September 30, 2024, KRP's total assets amounted to $1.21 billion, demonstrating its substantial market presence.

KRP’s vision for 2024 encapsulates its strategic focus on growth, sustainability, and maximizing unitholder value, while leveraging technology and maintaining a strong market position in the oil and gas sector.

Core Values of Kimbell Royalty Partners, LP (KRP)

Integrity

Kimbell Royalty Partners, LP (KRP) emphasizes integrity as a fundamental core value, ensuring that all business dealings are conducted ethically and transparently. This commitment to integrity is reflected in their adherence to regulatory standards and proactive communication with stakeholders.

In 2024, KRP demonstrated its integrity through its financial disclosures, providing comprehensive earnings reports that highlighted a net income of $50.3 million for the nine months ended September 30, 2024. This transparency reinforces trust with investors and stakeholders.

Excellence

KRP strives for excellence in all operational aspects, from asset management to customer service. This core value drives the company to optimize its mineral and royalty interests efficiently.

In 2024, the company reported a 23% increase in production volumes, achieving a total of 6,886,189 Boe for the nine months ended September 30, 2024. This operational efficiency underscores KRP's commitment to excellence and its ability to maximize returns for its unitholders.

Innovation

Innovation is central to KRP's strategy, enabling the company to adapt to market changes and enhance its operational capabilities. KRP invests in technology and processes that enhance productivity and reduce costs.

In 2024, KRP's acquisition of Cherry Creek Minerals LLC for approximately $455 million exemplifies its innovative approach to expanding its asset base. This acquisition strategy is aimed at enhancing resource efficiency and positioning KRP for future growth.

Collaboration

KRP values collaboration, both internally among its teams and externally with partners and stakeholders. This value fosters a culture of teamwork and shared success.

In 2024, KRP engaged in strategic partnerships, including the collaboration with LongPoint Minerals, which facilitated the LongPoint Acquisition, allowing KRP to expand its operational footprint. Such collaborative efforts are crucial for achieving long-term sustainability and growth.

Responsibility

Responsibility is a core value that KRP embraces, emphasizing its duty to operate sustainably and ethically. This commitment is reflected in the company's environmental stewardship and community engagement initiatives.

As of 2024, KRP reported total revenues of $242.6 million, indicating its robust financial performance while maintaining responsible practices. The company's focus on responsible resource management aligns with its commitment to minimizing environmental impact and supporting community development.

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.