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.

• Declared a Q3 2024 cash distribution of $0.41 per common unit, reflecting a 10.3% annualized yield and bringing total distributions since IPO to $11.45 per unit.

• Record lease bonuses and increased operator activity, especially in the Permian and Mid-Continent, supported by recent major acquisitions.

• Kimbell maintains a diversified, high-margin, shallow-decline asset base with interests in over 129,000 gross wells across 17 million acres.

Financial highlights

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

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

• Cash available for distribution per common unit was $0.55, with $0.41 declared as distribution.

• Net debt as of September 30, 2024, was $252.2 million, with a net leverage ratio of 0.8x.

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

Outlook and guidance

• 2024 guidance reaffirmed: daily production midpoint at 24,000 Boe/d, with oil comprising 32–36% and natural gas 48–52% of production.

• 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.