The following is a summary of the Kimbell Royalty Partners, LP (KRP) Q3 2024 Earnings Call Transcript:
Financial Performance:
Kimbell Royalty Partners reported Q3 2024 oil, natural gas, and NGL revenues of $71.1 million.
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.
Third quarter cash distribution was declared at $0.41 per common unit, with total cash distributed to common unitholders equating to 75% of cash available for distribution.
Business Progress:
Drilling activity in Q3 was robust with 90 rigs actively drilling on Kimbell's acreage, indicating a substantial 16% market share.
Record number of lease bonuses were received, reflecting increased operator interest in developing Kimbell's acreage.
The number of net Drilled but Uncompleted wells (DUCs) increased by 34% quarter-over-quarter to 5.1 net DUCs, especially led by activity in the Permian Basin.
Plans are in place to redeem at least half of the Apollo Preferred Stock in May 2025 to optimize cost savings.
Opportunities:
Continued robust development is anticipated due to the high number of rigs actively drilling, particularly in the Permian Basin.
Risks:
Discussed the possibility of readdressing the timing of redeeming the preferred stock depending on future oil and gas market conditions.
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