Q2 2024 Kimbell Royalty Partners LP Earnings Call Transcript
Key Points
- Kimbell Royalty Partners LP (KRP) reported strong cash flow and continued debt paydown for the second quarter of 2024.
- The company maintained a robust rig count with 91 rigs actively drilling, representing a 16% market share of all land rigs in the continental United States.
- KRP achieved a record low cash G&A expense per BOE, reflecting operational discipline and positive operating leverage.
- The company announced a $0.42 distribution per common unit, focusing on returning value to unitholders.
- KRP maintained a conservative balance sheet with a net debt to trailing 12-month consolidated adjusted EBITDA of 0.9 times, ensuring financial flexibility.
- Despite strong production, KRP did not revise its guidance for 2024, which some analysts viewed as overly conservative.
- The company faces challenges in acquiring gas assets, as there is limited availability in the market despite depressed gas prices.
- KRP's M&A activity has been relatively quiet, with fewer transactions of interest from an asset quality standpoint.
- The common units outstanding increased significantly, partly due to the conversion of private equity funds, which may dilute existing shareholders.
- The weak gas environment presents challenges, although KRP's Haynesville production remained stable.
Greetings and welcome to Kimbell Royalty Partners second quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black. Thank you. 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 second quarter of 2024, which ended June 30, 2024. This call is also being webcast and can be accessed through the audio link on the events and presentations page of kimbellroyaltyrp.com.
Information recorded on this call speaks only as of today, which is August 1, 2024. 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 would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or
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