Kimbell Royalty Partners (KRP) Q3 2024 earnings summary

Executive summary

• Q3 2024 run-rate daily production reached 23,846 Boe/d, with 90 active rigs representing 16% of the U.S. land rig count.

• Net income for Q3 2024 was $25.8 million, with $17.4 million attributable to common units.

• Announced a Q3 2024 cash distribution of $0.41 per common unit, reflecting a 10% annualized yield and bringing total cash returned to $11.45 per unit since IPO in 2017.

• Lease bonuses hit record levels, indicating heightened operator activity and robust development outlook.

• Kimbell Royalty Partners is a pure-play mineral company with interests in over 129,000 gross wells across 17 million acres, offering a 10.3% annualized cash distribution yield as of Q3 2024.

Financial highlights

• Q3 2024 oil, natural gas, and NGL revenues were $71.1 million, with total revenues of $83.8 million.

• Adjusted EBITDA for Q3 2024 was $63.1 million; net income per common unit was $0.22.

• Cash distribution of $0.41 per unit, with 100% expected to be return of capital for tax purposes.

• Net debt to trailing twelve month Adjusted EBITDA was 0.8x as of September 30, 2024.

• Run-rate average daily production for Q3 2024 was 23,846 Boe/d.

Outlook and guidance

• Affirmed 2024 guidance with daily production midpoint at 24,000 BOE per day and net production expected at 22.5–25.5 Mboe/d.

• Management expects to maintain attractive risk-adjusted cash distribution yields and organic growth, supported by robust drilling inventory and active rig count.

• Board intends to continue allocating a portion of cash available for distribution to debt repayment in future quarters.

• No material impact from global conflicts to date, but management continues to monitor for potential effects on operations and commodity prices.

• Line-of-sight wells and high DUC levels support resilient production outlook.