Q1 2024 Kimbell Royalty Partners LP Earnings Call Transcript
Key Points
- Kimbell Royalty Partners LP achieved new quarterly records in daily production, revenue, and EBITDA, indicating strong operational performance.
- The company announced a $0.49 distribution per common unit, marking a 14% increase compared to the previous quarter, demonstrating commitment to returning value to unitholders.
- Approximately 79% of the distribution will be considered return of capital, enhancing the after-tax return for unitholders.
- Kimbell Royalty Partners LP maintains a conservative balance sheet with net debt to trailing 12 months consolidated adjusted EBITDA of one times, ensuring financial stability.
- The company has a diversified model with activities in multiple basins, providing resilience against localized downturns in any single region.
- The M&A market had a relatively muted start to the year, with fewer opportunities for significant acquisitions, particularly outside the Permian basin.
- General and administrative expenses remain a significant portion of costs, with $9.4 million reported this quarter.
- Despite high activity levels, there is an acknowledgment of potential slowdowns in certain areas like the Haynesville region due to reduced capital expenditure by operators.
- The company faces challenges in acquiring high-quality, large mineral packages outside of the Permian, particularly in the Appalachian Basin.
- There is a noted disparity in bid-ask spreads for acquisitions, particularly on oil assets, which could affect future M&A activities.
Greetings and welcome to Kimbell Royalty Partners first 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. 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 first quarter 2024 ended March 31, 2024. For 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 kimballrp.com. Information recorded on this call speaks only as of today, which May 2, 2024. So please be advised that any time-sensitive information may no longer be accurate as of the date of any rate replay listening or transcript reading.
I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations for future events
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