On November 2, 2023, Kimbell Royalty Partners LP (KRP, Financial), a leading owner of oil and natural gas mineral and royalty interests, announced its financial and operating results for the quarter ended September 30, 2023. The company reported record Q3 2023 results with net income of approximately $18.5 million and net income attributable to common units of approximately $13.6 million, or $0.20 per common unit.
Financial Highlights
During the third quarter of 2023, KRP's total revenues were $67.2 million. The company's third quarter 2023 average realized price per Bbl of oil was $81.53, per Mcf of natural gas was $2.21, per Bbl of NGLs was $23.10 and per Boe combined was $38.05. Total third quarter 2023 consolidated Adjusted EBITDA was $55.8 million.
Operational Performance
The company's production mix continued to shift towards liquids in the third quarter, with oil and NGLs now representing 49% of its production mix. KRP had 99 rigs actively drilling on its acreage, which represents an approximate 16.5% market share of all land rigs drilling in the continental United States as of September 30, 2023.
Debt Repayment and Distribution
The Board of Directors approved a cash distribution payment to common unitholders of 75% of cash available for distribution for the third quarter of 2023, or $0.51 per common unit. The distribution will be payable on November 20, 2023 to common unitholders of record at the close of business on November 13, 2023. KRP plans to utilize the remaining 25% of cash available for distribution for the third quarter of 2023 to pay down a portion of the outstanding borrowings under its secured revolving credit facility.
Outlook
KRP boosted its Q4 2023 production guidance and expects record low Q4 2023 Cash G&A per BOE. The company's updated guidance for Q4 2023 reflects a full quarter of production and operating statistics from the Acquired Production.
Explore the complete 8-K earnings release (here) from Kimbell Royalty Partners LP for further details.
