Kimbell Royalty Partners, LP has recently released its 10-Q report, revealing key insights into its financial condition and operations. The company, incorporated in 2015 and based in Fort Worth, Texas, specializes in acquiring and owning mineral and royalty interests in oil and natural gas properties in the United States. As of September 30, 2024, Kimbell Royalty owned mineral and royalty interests in approximately 12.2 million gross acres and overriding royalty interests in approximately 4.7 million gross acres, with over 99% of the acreage subject to the company's interests being leased to working interest owners.
In the 10-Q report, under "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations," Kimbell Royalty highlighted its primary business objective of providing increasing cash distributions to unitholders resulting from acquisitions and organic growth. The report also discussed the company's quarterly distributions, with a declared cash distribution of $0.41 per common unit and common unit of the Operating Company for the quarter ended September 30, 2024.
The report also touched on the business environment, specifically addressing global conflicts and commodity prices and demand. It noted that the ongoing conflicts in Ukraine, the Middle East, and Iran have led to regional instability and dramatic fluctuations in global financial markets, impacting the level of global economic and political uncertainty. Additionally, the report highlighted the historical volatility of oil and natural gas prices and the impact of supply and demand imbalances resulting from various geopolitical events.
Furthermore, the 10-Q report provided insights into the company's sources of revenue, outlining the breakdown of oil, natural gas, and NGL revenues for the periods indicated. It also mentioned the company's oil and natural gas commodity derivative agreements extending through September 2026 to establish prices for the sale of a portion of the oil and natural gas produced from its mineral and royalty interests.
Lastly, the report discussed non-GAAP financial measures, including Adjusted EBITDA and Cash Available for Distribution on Common Units, which are used as supplemental non-GAAP financial measures by management and external users.
Today the company's shares have moved -0.4% to a price of $16.76. For the full picture, make sure to review Kimbell Royalty's 10-Q report.
