Q4 2024 Kimbell Royalty Partners LP Earnings Call Transcript
Key Points
- Kimbell Royalty Partners LP (KRP) reported substantial growth in production, revenue, and EBITDA for the year 2024.
- The company successfully closed a $230 million acquisition and completed a primary equity offering, enhancing its financial position.
- KRP's drilling activity remains strong, with 91 rigs actively drilling, representing a 16% market share in the lower 48 states.
- The company announced a cash distribution of $0.40 per common unit for the fourth quarter, with 100% expected to be considered return of capital.
- KRP maintains a conservative balance sheet with a net debt to trailing 12 months consolidated adjusted EBITDA of approximately 0.8 times.
- The company's 2025 guidance implies flat growth, which may not meet some investors' expectations for higher growth.
- KRP's general and administrative expenses were $9.4 million for the fourth quarter, which could be seen as relatively high.
- There is uncertainty regarding the impact of potential regulatory changes under the new administration.
- The company plans to redeem only half of its preferred shares in May, leaving a significant portion still outstanding.
- KRP faces competition in the M&A space, particularly in larger deals, which could impact its ability to acquire new assets.
Greetings and welcome to Kimbell Royalty Partners 4th quarter earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Rick Black Investor Relations.
Thank you, Mr. Black. You may begin.
Thank you, operator, and good morning, everyone. Welcome to the Kimbell Royalty Partners conference call to review financial and operational results for the fourth quarter 2024 that ended on December 31, 2024. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the IR section of kimbellrp.com.
Information recorded on this call speaks only as of today, February 27, 2025. So please be advised that any time sensitive information may no longer be accurate as of the date of any replay listening, or transcript reading. I'd also like to remind you that the statements made in today's discussion. That are not historical facts, including statements of
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