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• Revenue: $69.1 million for oil, natural gas, and NGO revenues during the quarter, excluding acquired production.

• Production: Record run rate production of 25,946 BOE per day, including acquired production.

• Adjusted EBITDA: $59.8 million for the fourth quarter, excluding acquired production.

• General and Administrative Expenses: $9.4 million total, with $5.6 million as cash G&A expense or $2.53 per BOE.

• Cash Distribution: $0.40 per common unit for the fourth quarter, with approximately 100% expected to be considered return of capital.

• Debt Outstanding: $239.2 million under the secured revolving credit facility as of December 31, 2024.

• Net Debt to EBITDA Ratio: Approximately 0.8 times.

• Undrawn Credit Facility Capacity: $310.8 million as of December 30, 2024.

• 2025 Production Guidance: Record high daily production guidance of 25,500 BOE per day at the midpoint.

• Rig Activity: 91 rigs actively drilling, representing 16% market share of all land rigs in the continental U.S.

• Warning! GuruFocus has detected 4 Warning Signs with KRP.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kimbell Royalty Partners LP (NYSE:KRP) reported substantial growth in production, revenue, and EBITDA for the year 2024.

• The company successfully closed a $230 million acquisition and completed a primary equity offering, enhancing its financial position.

• KRP's drilling activity remains strong, with 91 rigs actively drilling, representing a 16% market share in the lower 48 states.

• The company announced a cash distribution of $0.40 per common unit for the fourth quarter, with 100% expected to be considered return of capital.

• KRP maintains a conservative balance sheet with a net debt to trailing 12 months consolidated adjusted EBITDA of approximately 0.8 times.

Negative Points

• The company's 2025 guidance implies flat growth, which may not meet some investors' expectations for higher growth.

• KRP's general and administrative expenses were $9.4 million for the fourth quarter, which could be seen as relatively high.

• There is uncertainty regarding the impact of potential regulatory changes under the new administration.

• The company plans to redeem only half of its preferred shares in May, leaving a significant portion still outstanding.

• KRP faces competition in the M&A space, particularly in larger deals, which could impact its ability to acquire new assets.

Q & A Highlights

Q: Are there any particular basins where you're seeing an abundance of opportunity to add acreage? A: We continue to look across the United States without targeting one specific basin. The Permian Basin remains a significant area for consolidation, but we are seeing opportunities across various regions.