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01/11 03:36
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance, including record revenues and EBITDA, along with an EPS beat. The increase in cash distribution and successful debt management are positives. The Q&A session reveals confidence in guidance and M&A strategy, despite some uncertainties in geopolitical and regulatory risks. The market cap indicates a moderate reaction, leading to a positive stock price movement prediction of 2% to 8%.
EPS $0.20, an increase from expectations of $0.15.
Oil, Natural Gas, and NGL Revenues $90 million, a new record for Kimbell, with contributions from acquired production.
Consolidated Adjusted EBITDA $75.5 million, a new record for Kimbell, including contributions from acquired production.
General and Administrative Expenses $9.6 million, with cash G&A expense of $5.8 million, or $2.52 per BOE.
Cash Distribution per Common Unit $0.47, an increase of 17.5% from Q4 2024.
Net Debt to Trailing Twelve-Month Consolidated Adjusted EBITDA Approximately 0.9 times as of 03/31/2025.
Debt Outstanding under Secured Revolving Credit Facility Approximately $299 million as of 03/31/2025.
Undrawn Capacity under Secured Revolving Credit Facility Approximately $251 million as of 03/31/2025.
Net Debt to First-Quarter 2025 Trailing Twelve-Month Consolidated Adjusted EBITDA Approximately 1.5 times after redemption of Series A preferred units.
Acquisition in Permian Basin: Completed a highly attractive and accretive acquisition in the core of the Permian Basin on 01/17/2025.
Market Share: Maintained 16% market share of all rigs drilling in the Lower 48, with 90 rigs actively drilling on acreage.
Record Revenues: Achieved record oil, natural gas, and NGL revenues totaling $90 million in Q1 2025.
Adjusted EBITDA: Reported record consolidated adjusted EBITDA of $75.5 million for Q1 2025.
Cash Distribution: Declared a cash distribution of $0.47 per common unit for Q1 2025, a 17.5% increase from Q4 2024.
Debt Management: Increased borrowing base from $550 million to $625 million on 05/01/2025 and redeemed 50% of Series A preferred units on 05/07/2025.
Consolidation Strategy: Positioned as a leading consolidator in the US oil and natural gas royalty sector, with ongoing acquisition activity.
Geopolitical Uncertainty: The company acknowledges uncertainty occurring across the broader geopolitical landscape, which may impact operations.
Commodity Price Volatility: There is current volatility and uncertainty in the broader economy that could affect commodity prices.
Debt Levels: As of 03/31/2025, Kimbell had approximately $299 million in debt outstanding, with a net debt to trailing twelve-month consolidated adjusted EBITDA of approximately 0.9 times, which could pose a risk if not managed properly.
Market Competition: Kimbell operates in a highly fragmented US oil and natural gas royalty sector, which may present competitive pressures as they aim to consolidate the market.
Regulatory Risks: The company’s operations are subject to regulatory issues that could impact their business activities.
Production Maintenance: The company requires an estimated 6.5 net wells annually to maintain flat production, which could be a challenge if drilling activity decreases.
Acquisition: Completed a highly attractive and accretive acquisition in the core of the Permian Basin on 01/17/2025.
Credit Facility: Increased the company’s borrowing base and elected commitments on our credit facility from $550 million to $625 million on 05/01/2025.
Redemption of Preferred Units: Redeemed 50% of the Series A cumulative convertible preferred units on 05/07/2025, simplifying capital structure and reducing cost of capital.
Rig Activity: 90 rigs actively drilling on acreage at quarter-end, representing 16% market share of all rigs drilling in the Lower 48.
Production Maintenance: Line of sight wells continue to exceed the number needed to maintain flat production.
Consolidation Role: Expect to continue as a major consolidator in the US oil and natural gas royalty sector.
Revenue Expectations: Oil, natural gas, and NGL revenues totaled $90 million during the quarter, a new record.
Distribution: Declared a first quarter distribution of $0.47 per common unit, a 17.5% increase from Q4 2024.
Debt Management: Expected net debt to trailing twelve-month consolidated adjusted EBITDA of approximately 1.5 times after recent transactions.
2025 Guidance: Affirming financial and guidance ranges for 2025, confident in continued robust development.
Production Decline Rate: Superior five-year annual average PDP decline rate of 14%, requiring only 6.5 net wells annually to maintain flat production.
First Quarter Distribution: $0.47 per common unit, an increase of 17.5% from Q4 2024, reflecting an approximate 16% annualized tax advantage yield. Approximately 70% of this distribution is expected to be considered return of capital and not subject to dividend taxes.
Series A Preferred Units Redemption: Redeemed 50% of the Series A cumulative convertible preferred units on 05/07/2025.
Cash Distribution Payment: The cash distribution payment to common unitholders equates to 75% of cash available for distribution.
The earnings call summary presents a mixed picture. Financial performance is stable but lacks growth indicators. Product development is steady, with some positive outlook in Mid-Con and Haynesville. Market strategy is conservative with no major partnerships or innovations. Expenses are managed well, but there's no significant improvement in financial health. Shareholder returns are stable but not increasing. The Q&A reveals cautious optimism but no major catalysts. Overall, the sentiment is neutral with no strong positive or negative factors to significantly impact the stock price.
The earnings call highlights strong financial performance with record revenues and increased cash distribution, which is positive. However, the Q&A reveals concerns about debt levels, strategic risks, and unclear guidance on future growth, especially regarding Permian-focused acquisitions. The lack of a share repurchase program and conservative M&A market further contribute to a balanced outlook. Given the company's market cap, these mixed signals suggest a neutral stock price movement over the next two weeks.
The earnings call highlights strong financial performance, including record revenues and EBITDA, along with an EPS beat. The increase in cash distribution and successful debt management are positives. The Q&A session reveals confidence in guidance and M&A strategy, despite some uncertainties in geopolitical and regulatory risks. The market cap indicates a moderate reaction, leading to a positive stock price movement prediction of 2% to 8%.
The earnings call highlights strong financial performance with record revenues and EBITDA, increased cash distribution, and strategic debt management. The Q&A session reveals management's commitment to M&A and prudent debt management, though some responses were vague. The company's robust market positioning and production growth, along with a positive shareholder return plan, outweigh concerns about commodity price volatility and competition. Given the company's small-cap status and positive financial indicators, a stock price increase of 2% to 8% is expected over the next two weeks.
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