Kimbell Royalty Partners Sets New Records as 2024 Q4 Results Exceed Expectations
Kimbell Royalty Partners has reported another outstanding year in 2024, marked by significant growth in production, revenue, and EBITDA. The company's fourth-quarter earnings conference call revealed a strong finish to the year, with substantial success from its $455 million acquisition made in Q3 2023.
According to Chairman and Chief Executive Officer Bob Ravnaas, "This portfolio has and continues to perform extremely well." As a result of this productive year, Kimbell paid out $1.75 per common unit in tax-advantage quarterly distributions during 2024, in addition to paying down on its credit facility.
The fourth quarter saw drilling activity remain strong, with 91 rigs actively drilling on the company's acreage, including those added from the Midland Basin acquisition that closed last month. This represents a 16% market share of all rigs drilling in the Lower 48. The number of Line-of-Site Wells continues to be well above what is needed to maintain flat production, giving confidence in the resilience of production for 2025.
Kimbell's superior 5-year annual average PDP decline rate of 14%, including acquired production, requires only an estimated 6.5 net wells annually to maintain flat production. The company closed a $230 million acquisition last month and completed a highly successful primary equity offering, setting it up for continued growth in the future.
President and Chief Financial Officer Davis Ravnaas highlighted the company's financial results for the fourth quarter, noting that oil, natural gas, and NGL revenues totaled $69.1 million during the quarter, excluding acquired production. Including acquired production, Kimbell reported record run-rate production of 25,946 BOE per day.
On the expense side, general and administrative expenses were $9.4 million for the fourth quarter, with cash G&A expense totaling $5.6 million or $2.53 per BOE. Total consolidated adjusted EBITDA was $59.8 million, excluding acquired production. The company announced a cash distribution of $0.00 today.
The strong performance in 2024 has set the stage for Kimbell to continue its growth trajectory in 2025, with expected production at its midpoint representing a new record guidance level for the company.
