Core Viewpoint - Kimbell Royalty Partners, LP has announced an upsized public offering of 10,000,000 common units at a price of $14.90 per unit, aiming to raise approximately $149.0 million in gross proceeds before expenses [1][2]. Group 1: Offering Details - The offering includes an option for underwriters to purchase an additional 1,500,000 common units at the public offering price [1]. - The expected closing date for the offering is January 9, 2025, subject to customary closing conditions [1]. Group 2: Use of Proceeds - Kimbell plans to use the net proceeds from the offering to repay outstanding borrowings under its revolving credit facility [2]. - The funds will also be utilized for the cash portion of the purchase price and related expenses for the acquisition of oil and natural gas mineral and royalty interests from Boren Minerals [2]. Group 3: Management and Registration - Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities, and Mizuho are acting as joint-bookrunning managers for the offering, with additional co-managers involved [3]. - The common units will be issued under an effective shelf registration statement previously filed with the SEC [4]. Group 4: Company Overview - Kimbell Royalty Partners is a leading oil and gas mineral and royalty company based in Fort Worth, Texas, owning interests in approximately 17 million gross acres across 28 states [5]. - The company has ownership in over 129,000 gross wells, including more than 50,000 wells in the Permian Basin [5].

Core Viewpoint - Kimbell Royalty Partners, LP has announced an acquisition of mineral and royalty interests valued at approximately $231 million, enhancing its position in the Midland Basin and expected to be immediately accretive to cash flow per unit [2][4][6]. Acquisition Details - The acquisition involves a cash and unit transaction, with Kimbell having the option to pay $207 million in cash and approximately 1.4 million common units valued at $24 million [2]. - The acquired assets are expected to produce approximately 1,842 Boe/d as of October 1, 2024, with a production mix of 60% oil, 17% natural gas, and 23% NGL [3][6]. - The effective date of the acquisition is anticipated to be October 1, 2024, with closing expected in the first quarter of 2025 [3]. Production and Financial Impact - The acquisition is projected to generate an estimated $30.9 million of cash flow at strip pricing as of January 3, 2025, reflecting a transaction multiple of approximately 7.5x [6]. - Kimbell expects to increase daily production by approximately 8% and decrease cash G&A per Boe by approximately 7% following the acquisition [6]. - The acquisition is expected to add 1.22 net DUCs and net permitted locations, increasing Kimbell's current major net well inventory by approximately 16% [6]. Strategic Positioning - The acquired assets are located under the Mabee Ranch in the Midland Basin, with a high interest position and significant production potential from approximately 875 gross producing wells [4][7]. - Kimbell's total acreage will exceed 17 million gross acres, with over 130,000 gross wells and 92 active rigs post-acquisition, representing approximately 16% of the total active land rigs in the continental U.S. [8]. - The acquisition is expected to strengthen Kimbell's liquids weighting from 48% to 51% of the daily production mix [12]. Operational Highlights - The acquired assets are operated by premier E&P operators, including ConocoPhillips, Diamondback Energy, and ExxonMobil, ensuring high-quality reservoir development [4][12]. - Kimbell maintains a conservative balance sheet with expected pro forma net leverage of approximately 1.0x following the transaction [6].

Core Viewpoint - Kimbell Royalty Partners, LP will release its fourth quarter 2024 financial results on February 27, 2025, and will declare its distribution concurrently with the earnings release [1]. Company Overview - Kimbell Royalty Partners is a prominent oil and gas mineral and royalty company based in Fort Worth, Texas, owning interests in approximately 17 million gross acres across 28 states [3]. - The company has ownership in over 129,000 gross wells, with more than 50,000 wells located in the Permian Basin [3]. Financial Communication - A conference call will be held on the same day as the earnings release at 10:00 a.m. Central (11:00 a.m. Eastern), which will be broadcast live over the Internet [1]. - Investors can access the conference call by phone or via the webcast on Kimbell's Investor Relations website [2].

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Financial Data and Key Metrics Changes - The company reported total revenues of $71.1 million for the third quarter, with a run rate production of 23,846 BOE per day [11] - Net income for the quarter was approximately $25.8 million, with net income attributable to common units at approximately $17.4 million or $0.22 per common unit [12] - Consolidated adjusted EBITDA for the third quarter was $63.1 million [13] - A cash distribution of $0.41 per common unit was declared for the third quarter, representing 75% of cash available for distribution [14] Business Line Data and Key Metrics Changes - The company maintained a strong market share with 90 rigs actively drilling on its acreage, representing approximately 16% of all land rigs in the continental U.S. [11][7] - The number of net DUCs increased by 34% quarter-over-quarter to 5.1 net DUCs, the second highest level in the company's history [8] Market Data and Key Metrics Changes - The company experienced a record number of lease bonuses during the third quarter, indicating increased operator interest in developing its acreage [7] - The drilling activity remained strong, particularly in the Permian Basin, which is a key area for the company [8] Company Strategy and Development Direction - The company aims to redeem at least half of the Apollo Preferred Stock in May 2025 to optimize cost savings while maintaining conservative leverage and liquidity [15] - The management expressed confidence in the prospects for continued robust development, particularly in the Permian Basin, and believes that its diversified portfolio of high-quality royalty assets will drive value for unitholders [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in DUCs is encouraging, particularly in the Delaware Basin, and they expect to see positive results from these wells in the near term [21] - The company is optimistic about the future and its ability to drive unitholder value for years to come [8] Other Important Information - The company maintains a conservative balance sheet with a net debt to trailing 12-month consolidated adjusted EBITDA of approximately 0.8x [15] - Approximately $297.8 million in undrawn capacity under the secured revolving credit facility was reported as of September 30, 2024 [15] Q&A Session Summary Question: Clarification on the preferred stock redemption timing - Management indicated that redeeming the preferred stock in May 2025 is more cost-efficient than redeeming it now, saving the partnership a couple of million dollars [18] Question: Insights on net DUCs and permits - Management confirmed that the increase in net DUCs is encouraging, particularly in the Delaware Basin, and they expect to see production results from these wells soon [21] Question: Opportunities for M&A in various basins - Management stated that the Permian Basin remains attractive for M&A, but they are also seeing opportunities in the Appalachia basin due to increased infrastructure and LNG exports [25] Question: Impact of high NRI wells in Loving County - Management clarified that the high NRI wells are already producing, and they expect to start receiving production and cash flow in Q4 [28]

Core Viewpoint - Kimbell Royalty (KRP) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.19 per share a year ago, indicating a positive earnings surprise of 4.76% [1][2] Financial Performance - The company achieved revenues of $83.79 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.18%, and up from $67.2 million in the same quarter last year [2] - Over the last four quarters, Kimbell Royalty has exceeded consensus revenue estimates three times [2] Stock Performance - Kimbell Royalty shares have increased approximately 8.8% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The stock is currently rated Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $81.34 million, and for the current fiscal year, it is $0.68 on revenues of $322.11 million [7] - The trend of estimate revisions for Kimbell Royalty has been unfavorable leading up to the earnings release [6] Industry Context - The Oil and Gas - Royalty Trust - United States industry is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Kimbell Royalty (KRP) due to higher revenues, with actual results being crucial for stock price movement [1][2] Earnings Expectations - Kimbell Royalty is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year increase of +10.5% [3] - Revenues are projected to be $79.66 million, which is an 18.5% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 29.03% over the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +1.21% suggests recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [10] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a strong Zacks Rank [8] - However, a negative Earnings ESP does not necessarily indicate an earnings miss, making predictions less reliable for stocks with a negative reading [9] Historical Performance - Kimbell Royalty has not surpassed consensus EPS estimates in the last four quarters, with a significant miss of -54.17% in the last reported quarter [11][12] Conclusion - Kimbell Royalty does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making decisions regarding the stock [15]

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Kimbell Royalty (KRP) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sy ...

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Kimbell Royalty (KRP) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Kimbell Royalty is one of 247 companies in the Oils-Energy group. The Oils-Energy group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in te ...