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Kimbell Royalty Partners(KRP) - 2024 Q4 - Annual Results
KRPKimbell Royalty Partners(KRP)2025-02-27 12:14

Production and Operational Performance - Q4 2024 average daily production reached 25,946 Boe per day, marking the first time production exceeded 25,000 Boe/d in Kimbell's history[5]. - The company achieved a 23% increase in total production compared to 2023, driven by a 455millionacquisitionthatclosedinQ32023[7].−AsofDecember31,2024,Kimbellhad91activerigsdrilling,representinga16455 million acquisition that closed in Q3 2023[7]. - As of December 31, 2024, Kimbell had 91 active rigs drilling, representing a 16% market share of the U.S. land rig count[10]. - Kimbell initiated 2025 operational guidance with an estimated daily production mid-point of 25,500 Boe/d, projecting a range of 24,000 to 27,000 Boe/d[10]. - Kimbell's 2025 guidance estimates net production between 24.0 Mboe/d and 27.0 Mboe/d, with oil production expected to account for 31% to 35% of net production[27]. Financial Performance - Total revenues for Q4 2024 were 69.1 million, with a net loss of approximately 39.3millionprimarilyduetoanon−cashceilingtestimpairmentexpenseof39.3 million primarily due to a non-cash ceiling test impairment expense of 56.2 million[5][15]. - Kimbell Royalty Partners reported total revenues of 66.715millionforQ42024,adecreaseof32.766.715 million for Q4 2024, a decrease of 32.7% compared to 99.196 million in Q4 2023[36]. - The company experienced a net loss of 39.259millioninQ42024,comparedtoanetincomeof39.259 million in Q4 2024, compared to a net income of 17.828 million in Q4 2023, reflecting a significant decline in profitability[36]. - For the full year 2024, Kimbell's oil, natural gas, and NGL revenues increased to 304.606million,up13.8304.606 million, up 13.8% from 267.585 million in 2023[38]. - Adjusted EBITDA for Q4 2024 was 59,776,000,downfrom59,776,000, down from 68,993,000 in Q4 2023, with Adjusted EBITDA attributable to Kimbell Royalty Partners, LP at 50,684,000[49][47].CashDistributionandDebtManagement−Kimbell′sQ42024cashdistributionwasannouncedat50,684,000[49][47]. Cash Distribution and Debt Management - Kimbell's Q4 2024 cash distribution was announced at 0.40 per common unit, reflecting a payout ratio of 75% of cash available for distribution[10][12]. - The company plans to maintain a payout ratio of 75% of projected cash available for distribution, with 25% allocated to pay down outstanding borrowings[27]. - The cash available for distribution per common unit outstanding decreased to 0.44inQ42024from0.44 in Q4 2024 from 0.57 in Q4 2023[49][47]. - Kimbell's long-term debt as of December 31, 2024, was 239,160,000,withanetdebtof239,160,000, with a net debt of 214,160,000[49]. - The net debt to trailing twelve-month consolidated Adjusted EBITDA ratio was 0.8x as of December 31, 2024[49]. Asset and Reserve Management - Proved developed reserves increased by approximately 3% year-over-year to over 67 MMBoe as of December 31, 2024[24]. - Kimbell's total assets as of December 31, 2024, were reported at 1.119billion,withtotalliabilitiesamountingto1.119 billion, with total liabilities amounting to 256.420 million[34]. - The company reported an impairment of oil and natural gas properties totaling 62.119millionfortheyearendedDecember31,2024[38].PricingandMarketConditions−TheaveragerealizedpriceperbarrelofoilinQ42024was62.119 million for the year ended December 31, 2024[38]. Pricing and Market Conditions - The average realized price per barrel of oil in Q4 2024 was 69.35, while the average price for natural gas was 1.88perMcf[14].−Kimbellhasahedgingstrategyinplace,withfixedpriceswapsforoilaveraging1.88 per Mcf[14]. - Kimbell has a hedging strategy in place, with fixed price swaps for oil averaging 71.55 per barrel in Q1 2025[26]. - Kimbell's production and ad valorem taxes were 7.0% of oil, natural gas, and NGL revenues, indicating a stable tax burden relative to revenue[27].