Thu, Feb 27, 9:05 PM (59 days ago)
Kimbell Royalty Partners, LP (KRP) reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenues of approximately $309.3 million, an increase from $294.1 million in 2023. The revenue growth was primarily driven by higher production volumes from recent acquisitions, including the MB Minerals and LongPoint acquisitions. Net income was reported at $11.1 million, down from $83.0 million the previous year, largely due to increased impairment charges totaling $62.1 million. Operating expenses rose to $272.3 million, reflecting higher depreciation and depletion expenses linked to the expanded asset base. KRP's strategic focus includes acquiring additional mineral and royalty interests to enhance cash distributions to unitholders. The company intends to maintain a conservative capital structure while leveraging its relationships for growth. Future outlook remains cautious due to potential risks such as commodity price volatility, operational challenges, and regulatory changes impacting the oil and gas sector. As of December 31, 2024, KRP held approximately 12.2 million gross acres in mineral and royalty interests, with a significant portion in the Permian Basin. The firm also reported a strong liquidity position, supported by a $550 million revolving credit facility. However, the company noted the need for ongoing capital management to support growth and distribution objectives amidst a fluctuating economic environment.