Kimbell Royalty Partners, LP reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the third quarter of 2024, total revenues increased to $83.8 million, up from $67.2 million in Q3 2023. This growth was driven by oil, natural gas, and NGL revenues, which rose to $71.1 million from $69.2 million year-over-year. The increase in revenues was attributed to higher production volumes, which averaged 23,846 Btu-equivalent barrels per day, despite a decrease in average prices received for oil and natural gas.

Operating income for the third quarter was $34.2 million, compared to $25.3 million in the same quarter of 2023. Net income also saw a significant rise, reaching $25.8 million, up from $18.5 million a year earlier. Net income attributable to common units increased to $17.4 million from $13.6 million, resulting in a basic net income per unit of $0.22, compared to $0.20 in Q3 2023.

For the nine months ended September 30, 2024, total revenues amounted to $235.5 million, a substantial increase from $183.6 million in the prior year. However, net income for this period decreased to $50.3 million from $65.2 million in 2023, primarily due to increased costs and an impairment of $6.0 million on oil and natural gas properties, linked to declining average prices.

The company completed significant acquisitions, including Cherry Creek Minerals LLC for approximately $455 million in September 2023 and mineral and royalty assets from MB Minerals, L.P. for about $48.8 million in May 2023. These acquisitions contributed to increased production volumes but also led to higher depreciation and depletion expenses, which rose to $103.3 million for the nine months ended September 30, 2024, compared to $60.3 million in the same period of 2023.

Kimbell Royalty Partners reported total assets of $1.2 billion as of September 30, 2024, down from $1.3 billion at the end of 2023. Long-term debt decreased to $252.2 million from $294.2 million, reflecting repayments made during the period. The company also issued additional common units, increasing the total from 73.9 million at the end of 2023 to 80.9 million by September 30, 2024.

The partnership's cash and cash equivalents increased to $34.7 million from $31.0 million at the end of 2023, while net cash provided by operating activities surged to $194.3 million, up from $115.0 million in the prior year. The company declared a quarterly cash distribution of $0.41 per common unit for Q3 2024, reflecting its ongoing commitment to return capital to unitholders.