Kimbell Royalty Partners, LP reported a total revenue of $309.3 million for the fiscal year ending December 31, 2024, marking an increase of 5.2% from $294.1 million in 2023. The rise in revenue was primarily driven by a 23.4% increase in production volumes, which reached 9.1 million barrels of oil equivalent (Boe) compared to 7.4 million Boe in the previous year. However, the company experienced a net loss of $8.8 million, a significant decline from a net income of $60.1 million in 2023, largely due to a $62.1 million impairment charge on oil and natural gas properties, reflecting the impact of declining commodity prices.
In terms of operational metrics, Kimbell's production for 2024 included 2.8 million barrels of oil, 27.6 million cubic feet of natural gas, and 1.7 million barrels of natural gas liquids (NGLs). The average realized prices for oil and natural gas were $75.98 per barrel and $1.82 per Mcf, respectively, indicating a slight decrease in oil prices and a more significant drop in natural gas prices compared to the previous year. The company’s revenue composition shifted, with oil sales accounting for 71% of total revenues, up from 69% in 2023, while natural gas sales decreased to 16% from 22%.
Strategically, Kimbell completed the Boren Acquisition on January 17, 2025, acquiring oil and gas properties valued at approximately $230.4 million, funded through borrowings and proceeds from a recent equity offering. This acquisition is expected to enhance Kimbell's production capacity and reserve base. The company also declared a quarterly cash distribution of $0.40 per common unit for the fourth quarter of 2024, reflecting its ongoing commitment to return capital to unitholders despite the recent net loss.
As of December 31, 2024, Kimbell owned mineral and royalty interests across approximately 12.2 million gross acres, with over 99% of this acreage leased to working interest owners. The company reported a total of 1,400 active operators on its acreage, with the top ten operators contributing approximately 41.2% of its revenues. The operational landscape remains competitive, with Kimbell's operators facing challenges related to fluctuating commodity prices and regulatory pressures, particularly concerning environmental regulations and hydraulic fracturing practices.
Looking ahead, Kimbell anticipates continued volatility in oil and natural gas prices, which could impact its cash flows and ability to pay distributions. The company remains focused on strategic acquisitions and organic growth through the development of its existing properties. However, it acknowledges the risks associated with market conditions, including geopolitical tensions and economic uncertainties, which could affect its operational performance and financial stability in the future.
About Kimbell Royalty Partners, LP
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