Kimbell Royalty Partners Delivers Robust Q3 2024 Performance

Kimbell Royalty Partners (NYSE: KRP) reported a strong third quarter in 2024, demonstrating resilience and growth in the face of a dynamic energy market. The company's robust performance was driven by increased operator activity, a surge in Drilled But Uncompleted Wells (DUCs), and a high rig count, all of which contributed to solid production growth and cash flow generation.

Kimbell's acreage remained active, with 90 rigs drilling, representing a 16% market share of U.S. land rigs. This high activity level, coupled with record lease bonuses and increased permitting, signals strong operator interest in Kimbell's properties. The company's net DUCs increased by 34% quarter-over-quarter, led by the Permian Basin, further bolstering its production outlook.



The surge in DUCs, particularly in the Permian Basin, indicates increased operator interest in developing Kimbell's acreage. With a significant number of DUCs ready to be completed, Kimbell is well-positioned to maintain and potentially boost its production levels. This, in turn, supports the company's strong financial performance, as evidenced by its Q3 2024 consolidated Adjusted EBITDA of $63.1 million.



Kimbell's 16% market share of U.S. land rig count compares favorably to its peers, such as Pioneer Natural Resources (PXD) with 12% and Devon Energy (DVN) with 10%. This robust activity indicates strong operator interest in Kimbell's acreage and solidifies the company's competitive position. Kimbell's financial discipline, including allocating a portion of its cash available for distribution to repay borrowings under its revolving credit facility, ensures it has the capital to complete DUCs and maintain production levels.

In conclusion, Kimbell Royalty Partners' Q3 2024 performance demonstrates the company's resilience and growth potential. With a strong balance sheet, increased operator activity, and a robust pipeline of DUCs, Kimbell is well-positioned to continue delivering solid financial results and generating value for its unitholders. As the energy market evolves, Kimbell's strategic positioning and commitment to financial discipline make it an attractive investment opportunity for those seeking exposure to the oil and gas sector.