Kimbell Royalty Partners reports Q3 EPS 20c, consensus 31c

Reports Q3 revenue $67.2M, consensus $69.41M. Record Q3 2023 run-rate daily production of 19,777 barrels of oil equivalent per day. CEO Robert Ravnaas commented, “We are very pleased to announce another record quarter with new all-time highs set in production, rig count, DUCs and permits. The company’s production mix continued to materially shift towards liquids in the third quarter, with oil and NGLs now representing 49% of our production mix on a 6:1 basis as compared to 46% in Q2. Activity on our acreage remains strong and we now have the highest market share ever recorded by Kimbell of the overall U.S. land rig count at 17%. Even after giving effect to our most recent $455M acquisition, we still have the best-in-class PDP decline rate of only 14%. At the end of Q3 2023, we had 9.3 net DUCs and permits, reflecting the widest spread ever of line-of-site wells relative to the number of wells needed to maintain flat production of 5.8 net wells per year. This gives us confidence in the resilience in our production as we wrap up 2023 and look at 2024. In short, we are extremely pleased with this quarter as well as our Q3 2023 distribution of 51c that we declared today, an increase of 31% from Q2 2023.”