Kimbell Royalty Partners, LP (NYSE: KRP) has reported its record fourth quarter and full-year 2023 results, showcasing robust operational and financial performance. The company achieved a record Q4 2023 run-rate daily production of 24,332 barrels of oil equivalent per day (6:1), surpassing the high end of its guidance. This represents organic growth of 3.4% between Q3 2023 and Q4 2023.
Robert Ravnaas, Chairman and CEO of Kimbell Royalty GP, LLC, commented on the company's performance, stating, "2023 was another record year for Kimbell. We completed our largest acquisition to date during 2023, which was not only immediately accretive to distributable cash flow per common unit, but also bolstered the Permian as the leading basin for the company in terms of production, active rig count, ducs, permits, and undrilled inventory."
Additionally, Kimbell announced an increase in its borrowing base on its secured revolving credit facility to $550 million, highlighting a conservative balance sheet with net debt to trailing twelve-month consolidated adjusted EBITDA of 1.0x.
Ravnaas also expressed optimism about the company's future, stating, "We expect to continue our role as a major consolidator in the highly fragmented U.S. oil and natural gas royalty sector, which we estimate to be over $700 billion in size."
Financially, Kimbell reported record Q4 2023 oil, natural gas, and NGL revenues of $83.9 million, representing a 21.2% increase from Q3 2023. The company's Q4 2023 net income was approximately $17.8 million, and net income attributable to common units was approximately $9.8 million.
The company also announced a Q4 2023 cash distribution of $0.43 per common unit, reflecting a payout ratio of 75% of cash available for distribution.
Kimbell's shares have seen a 0.5% movement and are currently trading at a price of $15.45.
The company's full 8-K submission is available here.
