Kimbell Royalty Partners LP (KRP) 2024 Q2 法說會逐字稿

Greetings and welcome to Kimbell Royalty Partners second quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black. Thank you. You may begin.

問候並歡迎參加金貝爾皇室合作夥伴第二季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹你們的主持人，瑞克布萊克。謝謝。你可以開始了。

Thank you, operator, and good morning, everyone. Welcome to the Kimbell Royalty Partners conference call to review financial and operational results for the second quarter of 2024, which ended June 30, 2024. This call is also being webcast and can be accessed through the audio link on the events and presentations page of kimbellroyaltyrp.com.

謝謝接線員，大家早安。歡迎參加金貝爾版稅合作夥伴電話會議，檢視截至 2024 年 6 月 30 日的 2024 年第二季的財務與營運表現。此次電話會議也正在進行網路直播，可以透過 kimbellroyaltyrp.com 活動和演示頁面上的音訊連結進行存取。

Information recorded on this call speaks only as of today, which is August 1, 2024. So please be advised that any time sensitive information may no longer be accurate as of the date of any replay, listening, or transcript reading.

本次電話會議記錄的資訊僅截至今天，即 2024 年 8 月 1 日。因此，請注意，自任何重播、聆聽或文字記錄閱讀之日起，任何時間敏感資訊可能不再準確。

I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future financial performance are considered forward-looking statements made pursuant to the Safe Harbor's provision for the Private Securities Litigation Reform Act of 1995.

我還想提醒您，今天的討論中所做的非歷史事實的陳述，包括預期或未來事件或未來財務業績的陳述，均被視為根據安全港關於私人證券訴訟改革的規定所做的前瞻性陳述1995 年法案。

We will be making forward-looking statements as part of today's call, which by their nature, are uncertain and outside of the company's control. Actual results may differ materially. Please refer to today's earnings press release for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission.

作為今天電話會議的一部分，我們將做出前瞻性聲明，這些聲明本質上是不確定的，並且不在公司的控制範圍內。實際結果可能存在重大差異。請參閱今天的收益新聞稿，以了解我們對前瞻性聲明的揭露。這些因素以及其他風險和不確定性在該公司向美國證券交易委員會提交的文件中進行了詳細描述。

Management will also refer to non-GAAP measures, including adjusted EBITDA and cash available for distribution. Reconciliations to the nearest GAAP measures can be found at the end of today's earnings release. Kimbell assumes no obligation to publicly update or revise any of these forward-looking statements.

管理階層也將參考非公認會計原則衡量標準，包括調整後的 EBITDA 和可用於分配的現金。您可以在今天的收益發布結束時找到與最接近的公認會計原則（GAAP）衡量標準的調節表。金貝爾不承擔公開更新或修改任何這些前瞻性陳述的義務。

And also, I would now like to turn the call over to Bob Ravnaas, Kimbell Royalty Partners Chairman and Chief Executive Officer. Bob?

另外，我現在想將電話轉給金貝爾皇家合夥人公司董事長兼執行長 Bob Ravnaas。鮑伯？

Thank you, Rick, and good morning, everyone. We appreciate you joining us on the call this morning. With me today are several members of our senior management team, including Davis Ravnaas, our President and Chief Financial Officer; Matt Daly, our Chief Operating Officer; and Blayne Rhynsburger, our Controller.

謝謝你，瑞克，大家早安。我們感謝您今天早上加入我們的電話會議。今天與我在一起的有我們高階管理團隊的幾位成員，包括我們的總裁兼財務長 Davis Ravnaas；馬特·達利，我們的營運長；還有我們的財務總監 Blayne Rhynsburger。

We are pleased to report solid results for the second quarter with strong cash flow, continued debt paydown and lower cash G&A costs. Our rig count remains robust at 91 rigs actively drilling across the US which represents a 16% market share of all land rigs currently drilling in the continental United States.

我們很高興地報告第二季的穩健業績，強勁的現金流、持續的債務償還和較低的現金管理費用。我們的鑽機數量依然強勁，有 91 台鑽機在美國各地積極鑽探，佔目前在美國本土鑽探的所有陸地鑽機的 16% 市場份額。

In addition, our line-of-sight wells continue to be meaningfully above the number of wells needed to maintain flat production, giving us confidence in the resilience of our production as we progress through 2024. Finally, we announced a $0.42 distribution per common unit as we continue to focus on returning value to unitholders.

此外，我們的視線井數量持續明顯高於維持產量穩定所需的井數量，這讓我們對 2024 年的生產彈性充滿信心。最後，我們宣布每個普通單位分配 0.42 美元，因為我們繼續專注於向單位持有人返還價值。

Before turning the call over to Davis, I wanted to acknowledge the passing of Ben Fortson, who was one of Kimbell's original directors, my friend, and colleague, Ben had decades of industry experience serving as President and CEO of Fortson Oil Company and serving as the Chief Investment Officer and Executive Vice President of the Kimbell Art Foundation since 1975.

在將電話轉給戴維斯之前，我想對本·福特森(Ben Fortson) 的去世表示敬意，他是Kimbell 的原始董事之一，也是我的朋友和同事，本擁有數十年的行業經驗，曾擔任福特森石油公司(Fortson Oil Company) 的總裁兼首席執行官，並擔任自 1975 年起擔任金貝爾藝術基金會首席投資官兼執行副總裁。

Ben was an essential part of our success and evolution here at Kimbell. He helped create Kimbell Royalty Partners, participated in our IPO in 2017, and continue to serve on our Board of Directors in 2024. I will miss Ben's wise counsel, vision, and excellent investing skills that contributed to the success of Kimbell over the years. We will miss his advice, sense of humor, and friendship.

Ben 是我們 Kimbell 的成功和發展的重要組成部分。他幫助創立了 Kimbell Royal Partners，參與了我們 2017 年的 IPO，並於 2024 年繼續在我們的董事會任職。我會懷念本的明智建議、遠見和卓越的投資技巧，這些年來為金貝爾的成功做出了貢獻。我們會懷念他的建議、幽默感和友誼。

I'll now turn the call over to Davis.

我現在將把電話轉給戴維斯。

Thanks, Bob, and good morning, everyone. In the second quarter we once again generated strong results, exceeded our internal production expectations, maintained a substantial market share of the US rig count, but achieved a record low cash G&A per BOE, which was below the low end of guidance.

謝謝鮑勃，大家早安。第二季度，我們再次取得了強勁的業績，超出了我們的內部產量預期，在美國鑽機數量中保持了可觀的市場份額，但每桶油當量的現金管理費用創下了歷史新低，低於指導的下限。

I'll start by reviewing our financial results from the quarter beginning with oil natural gas and NGL revenues, which totaled $77 million. We had run rate production of 24,110 BOE per day. And we exited the quarter with 91 rigs actively drilling on our acreage, which represents approximately 16% market share of all land rigs drilling in the continental United States.

我首先回顧本季的財務業績，首先是石油天然氣和 NGL 收入，總計 7,700 萬美元。我們的運作產量為每天 24,110 桶油當量。本季結束時，我們有 91 台鑽機在我們的土地上積極鑽探，占美國大陸所有陸地鑽機鑽探市場份額的約 16%。

On the expense side, second quarter general and administrative expenses were $10.2 million, $5.1 million of which was cash G&A expense or $2.34 per BOE. This represents a new record low cash G&A per BOE for Kimbell as below the low end of guidance, reflecting operational discipline and positive operating leverage.

在費用方面，第二季一般和管理費用為 1,020 萬美元，其中 510 萬美元為現金 G&A 費用或每 BOE 2.34 美元。這代表 Kimbell 的每個 BOE 現金管理費用創下歷史新低，低於指導下限，反映了營運紀律和積極的營運槓桿。

Net income in the second quarter was approximately $15.2 million and net income attributable to common units was approximately $8.4 million or $0.11 per common unit. Total second quarter consolidated adjusted EBITDA was $65.8 million. You will find a reconciliation of both consolidated adjusted EBITDA and cash available for distribution at the end of our news release.

第二季淨利潤約為 1,520 萬美元，歸屬於普通單位的淨利潤約為 840 萬美元或每個普通單位 0.11 美元。第二季綜合調整後 EBITDA 總額為 6,580 萬美元。在我們的新聞稿末尾，您會發現合併調整後的 EBITDA 和可供分配的現金的調整表。

As Bob mentioned, today we announced a cash distribution of $0.42 per common unit for the second quarter. This represents a cash distribution payment that common unit holders equates to 75% of cash available for distribution, and the remaining 25% will be used to pay down a portion of the outstanding borrowings under Kimbell's secured revolving credit facility.

正如鮑伯所提到的，今天我們宣布第二季度每普通單位現金分配 0.42 美元。這代表普通單位持有人相當於可分配現金的 75% 的現金分配付款，其餘 25% 將用於償還金貝爾擔保循環信貸安排下的部分未償還借款。

Moving now to our balance sheet and liquidity. At June 30, 2024, we had approximately $265.8 million of debt outstanding under our secured revolving credit facility. We continue to maintain a conservative balance sheet with net debt to trailing 12 month consolidated adjusted EBITDA of 0.9 times. We had approximately $284.2 million of undrawn capacity under the secured revolving credit facility as of June 30.

現在轉向我們的資產負債表和流動性。截至 2024 年 6 月 30 日，我們的擔保循環信貸安排下的未償債務約為 2.658 億美元。我們繼續維持保守的資產負債表，過去 12 個月的淨債務為 0.9 倍的綜合調整後 EBITDA。截至 6 月 30 日，我們在有擔保循環信貸安排下擁有約 2.842 億美元的未提取產能。

We remain very comfortable with our strong financial position, the support of our expanding bank syndicate and our financial flexibility. Today, we are also affirming our 2024 guidance, which includes daily production at its midpoint of 24,000 BOE per day.

我們對我們強大的財務狀況、不斷擴大的銀行財團的支持以及我們的財務靈活性感到非常滿意。今天，我們也確認了 2024 年的指導，其中日產量中點為 24,000 桶油當量/日。

As a reminder, our full guidance outlook was provided in the Q4 2023 earnings press release. We remain confident about the prospects for continued robust development as we progress through 2024, given the number of rigs actively drilling on our acreage, especially in the Permian. We continue to believe that the overall demand for energy and our well-established and diversified asset portfolio will continue to enhance value for our unitholders.

謹此提醒，我們在 2023 年第四季財報新聞稿中提供了完整的指導前景。鑑於在我們的區域（尤其是二疊紀）積極鑽探的鑽機數量，我們對 2024 年持續強勁發展的前景仍然充滿信心。我們仍然相信，對能源的整體需求以及我們完善且多元化的資產組合將繼續提高我們單位持有者的價值。

With that, operator, we are now ready for questions.

接線員，現在我們準備好提問了。

(Operator Instructions) Tim Rizwan, KeyBanc Capital Markets.

（操作員指令）Tim Rizwan，KeyBanc 資本市場。

Good morning, folks, and thank you for taking my questions.

早安，夥伴們，謝謝你們回答我的問題。

Morning.

早晨。

Yeah, good morning. Want to start on the unchanged guidance that you put out for the year, I guess you reiterated. The production is sort of outpacing at the midpoint of the annual guide year to date, we have decent line of sight on future tills across your footprint.

是的，早安。我想您重申了，希望從您今年發布的不變指導開始。迄今為止，產量在某種程度上超過了年度指南的中點，我們對您足跡中的未來收銀台有良好的視野。

Why not revisit guidance for that or and maybe guidance as well on cash, G&A, and DD&A that seem to be trending outside the range. I know you all play conservative and sort of have wide goalpost, but just kind of curious why? Why not revisit some of those items?

為什麼不重新審視這方面的指導，也許還有關於現金、一般行政費用和 DD&A 的指導，這些指導似乎超出了範圍。我知道你們都打得很保守，球門柱也很寬，但只是有點好奇為什麼？為什麼不重新審視其中一些項目呢？

Yeah, that's a fair comment, and it's not lost on us. Let us collect internally here and reconsider that. I will say, look, we don't have control, obviously over the drill bit. So things are always variable, but your points are valid and we don't want to be unduly conservative as well.

是的，這是一個公平的評論，我們並沒有忽視它。讓我們在這裡進行內部收集並重新考慮這一點。我會說，看，我們顯然無法控制鑽頭。所以事情總是可變的，但你的觀點是有效的，我們不想過於保守。

And I'll add to that, we do have some even more immediate line of sight on some large 20% interest wells that we have, I think it's in Loving County that we think are going to come online later in this year.

我還要補充一點，我們確實對我們擁有的一些大型 20% 權益井有一些更直接的視線，我認為我們認為今年晚些時候將在 Loving 縣上線。

Matt, maybe you can provide a little bit of additional detail on that. But your point is valid. We're probably being a little bit unduly conservative. We're not doing that from a sense of a deliberate attempt to do so. But more just trying to be conservative and want to indicate to the market that we're going to deliver on what we're saying we're going to deliver.

馬特，也許你可以提供一些額外的細節。但你的觀點是有道理的。我們可能有點過於保守了。我們這樣做並不是出於刻意的嘗試。但更多的只是試圖保持保守，並希望向市場表明我們將兌現我們所說的我們將兌現的承諾。

Matt, anything on those additional wells, it might be helpful.

馬特，關於那些額外的井的任何事情，可能會有幫助。

Yeah I mean, we do have some, as Davis mentioned, two large interest wells over 20% royalty interest wells likely coming on later this year, probably Q4 or Q1 '25. The operator is located in Loving County, currently rig on site.

是的，我的意思是，正如戴維斯所提到的，我們確實有一些超過20% 特許權使用費權益的大型利息井可能會在今年晚些時候（可能是25 年第四季度或第一季度）推出。營運商位於 Loving 縣，目前正在現場安裝鑽井平台。

And just to put that in perspective, the average royalty interest for us is about 1% or 1.5%. So adding two 20% wells coming online, mainly oil production is going to make a big difference in production later this year or early '25. So your point about the guidance is certainly a noted, and we'll internally meet about that.

從長遠來看，我們的平均特許權使用費約為 1% 或 1.5%。因此，增加兩口 20% 的油井上線，主要是石油產量，將對今年稍後或 25 年初的產量產生重大影響。因此，您關於該指南的觀點肯定會被注意到，我們將在內部開會討論這一點。

And this is Bob. I'd also like to add, we have a great position in the mid-continent that we're really proud of through a couple of acquisitions one, last year, and one, several years ago. And our production this last quarter is up 5% in Oklahoma and our rig capture is approximately 50% of all rigs in Oklahoma. So we're very happy with the activity on our mid-continent acreage.

這是鮑伯。我還想補充一點，我們在中大陸擁有一個很好的地位，我們透過幾項收購感到非常自豪，一次是去年的，一次是幾年前的。上個季度我們在俄克拉荷馬州的產量增加了 5%，我們的鑽機捕獲量約佔俄克拉荷馬州所有鑽機的 50%。因此，我們對中部大陸地區的活動感到非常滿意。

Okay. I appreciate the color. And as my follow-up, just curious, you have the preferreds sitting out there. I was wondering if you could give kind of updated thoughts on when or how you might look to address those as we head towards 2025.

好的。我很欣賞它的顏色。作為我的後續行動，只是好奇，你們有優先選擇的人。我想知道在我們邁向 2025 年之際，您是否可以就何時或如何解決這些問題提供一些最新的想法。

Man, you're asking all the great questions. And we are excited to say that we'll probably plan to redeem about half of that press in the next three to six months. That's our current game plan. We want to keep leverage low.

夥計，你問了所有很棒的問題。我們很高興地說，我們可能會計劃在未來三到六個月內贖回大約一半的印刷機。這就是我們目前的遊戲計劃。我們希望保持低槓桿率。

So looking at a debt to EBITDA ratio less than 1.5 times that would allow us to redeem just over half of the pref we believe probably by the end of the calendar year. So that's in our opinion a way that we're continuing to improve the balance sheet and just move ourselves into a stronger position. So all good news on that front as well. Thank you for asking that.

因此，考慮到債務與 EBITDA 比率低於 1.5 倍，這將使我們能夠在年底前贖回我們認為可能的預付款的一半以上。因此，我們認為，這是我們繼續改善資產負債表並使自己處於更有利地位的一種方式。所以這方面也有好消息。謝謝你這麼問。

Okay. Thank you. If I could sneak a quick one in just from on the modeling side, the common units outstanding increased quite a bit to 81 million. Was that simply due to the accelerated vesting of restricted units that you cited in the release, or was there anything else?

好的。謝謝。如果我能從建模方面快速加入一個，那麼未完成的通用單位就會增加很多，達到 8,100 萬。這僅僅是由於您在新聞稿中提到的限制性單位的加速兌現，還是還有其他原因？

There was a conversion of one of our shareholders that recently, Matt, you want to add any detail to that?

最近，我們的一位股東發生了轉變，馬特，您想對此添加任何細節嗎？

I believe it was related to the Hatch acquisition a couple a days ago.

我相信這與幾天前收購 Hatch 有關。

Yeah. One of the private equity funds converted from OpCo into common here recently. And that's one of the reasons why the common unit count went up and the OpCo unit count went down, if that's what you're asking about.

是的。最近，其中一隻私募股權基金從 OpCo 轉為 Common。這就是為什麼常見單位數量增加而 OpCo 單位數量減少的原因之一（如果這就是您所問的問題）。

Yeah, yeah.

是啊是啊。

You'll see their holding. Their holdings are reported on Bloomberg as of [6/30].

你會看到他們的持股。截至目前，彭博社報道了他們的持股情況[6/30]。

Okay. Okay. Appreciate all the color. Thank you.

好的。好的。欣賞所有的顏色。謝謝。

Course.

課程。

Neal Dingmann, Truist Securities.

尼爾‧丁曼 (Neal Dingmann)，Truist 證券公司。

Hey, this is Julian Broche on for Neil. Thanks for taking our questions.

嘿，我是尼爾的朱利安·布羅什。感謝您回答我們的問題。

Yeah, good morning, Julian.

是的，早上好，朱利安。

Good morning. Just kind of given the weak gas environment that we're seeing now, are you guys seeing any actionable dislocations in pricing kind of versus gas assets versus oily ones.

早安.考慮到我們現在看到的疲軟的天然氣環境，你們是否看到天然氣資產與石油資產的定價有任何可操作的錯位。

It's been a little bit -- I'll give you my perspective. I'd be curious with Bob and Matt think too. It's been a little bit disappointing on the gas front. We've -- our big gas acquisition was obviously Haymaker, which we made back in 2018, which I continue to believe was probably the best gas buy we've done in 20 years.

已經有點了——我會給你我的觀點。我對鮑伯和馬特也很好奇。在天然氣方面有點令人失望。我們的大型天然氣收購顯然是 Haymaker，我們在 2018 年進行了收購，我仍然相信這可能是我們 20 年來最好的天然氣收購。

Gas was $2, its core, Western Louisiana acreage and this outstanding asset. We haven't seen a whole lot on the gas front, in the last, I mean, candidly, I'll even say we haven't seen much since 2018. It just seems like nobody wants to sell gas assets.

天然氣價格為 2 美元，其核心是路易斯安那州西部的土地和這一傑出資產。我們在天然氣方面還沒有看到太多，我的意思是，坦白說，我甚至會說自 2018 年以來我們還沒有看到太多。似乎沒有人願意出售天然氣資產。

Mostly because I think everybody is just looking at this incredible futures pricing scenario with the new export terminals coming online and all of that. So it's been rough finding nice gas assets. Now what I will say that the mid composition, which Bob was just talking about to be picked up through Long Point, does have a heavy gas component associated with it, and that's been wonderful to buy too.

主要是因為我認為每個人都在關注這個令人難以置信的期貨定價場景，新的出口終端上線等等。因此，尋找優質的天然氣資產非常困難。現在我要說的是，鮑勃剛剛談到的通過長點拾取的中間成分確實含有與之相關的重氣體成分，購買它也很棒。

So tough to find gas assets. It's not lost anybody. The gas is depressed. We would be happy to buy gas assets. It's just been hard to get them out of people's hands. But Bob or Matt, anything you guys would like to add to that?

尋找天然氣資產非常困難。它沒有失去任何人。氣鬱悶。我們很樂意購買天然氣資產。很難將它們從人們手中奪走。但是鮑伯或馬特，你們還有什麼想要補充的嗎？

Yeah. I mean, it's just interesting to me, the Haynesville production for us was actually up slightly Q1 to Q2, even with these low prices and the rig count in the Haynesville is totally flat. So things are totally stabilized there from an operational standpoint.

是的。我的意思是，這對我來說很有趣，我們的海恩斯維爾產量實際上在第一季度到第二季度略有上升，即使價格如此低廉，而且海恩斯維爾的鑽機數量完全持平。因此，從操作的角度來看，事情已經完全穩定了。

But yet you're right, Davis, it's been difficult to find acquisitions in that area. I think people see what we're seeing there in terms of the future prospects about the LNG exports and so forth. So but operationally, it's just sort of like running perfectly in the Haymaker asset we bought, that asset has grown dramatically since we bought it back at 2018 organically. So it's done very well for us.

但戴維斯，你是對的，在該領域很難找到收購對象。我認為人們看到了我們在液化天然氣出口等方面的未來前景。因此，但從營運角度來看，這有點像我們購買的 Haymaker 資產完美運行，自從我們於 2018 年有機回購以來，該資產已大幅增長。所以這對我們來說做得很好。

Got it. Thank you. And if I can sneak one more in. The kind of Permian where I mean, I guess Permian deal flow it's kind of potentially going to slow down into year-end given all the deals. But what other basins are you all looking at? And what's kind of the potential ticket size that you're seeing the best opportunities right now.

知道了。謝謝。如果我能再偷偷溜進去一次的話。我的意思是，二疊紀的交易量可能會在年底放緩，考慮到所有的交易。但你們還關注哪些其他盆地呢？以及您現在看到的最佳機會的潛在門票規模是多少。

It's been a disappointing year for M&A, generally speaking across the board. So I'd say that we've seen very few transactions and even fewer transactions that are actually interesting to us from an asset quality standpoint.

總體而言，對於併購來說，今年是令人失望的一年。所以我想說，從資產品質的角度來看，我們看到的交易很少，甚至我們真正感興趣的交易也更少。

We're looking at every basin. So we always do, we look at everything we can. Our job is not to take a specific county and say that we're only going to buy there and we'll pay whatever it takes to get a deal done in that county. Our dollars compete across the board, across all basins, in all counties, so we can make more money for our investors buying something in Utah, we rather do that than buy something in Midland County.

我們正在檢查每個盆地。所以我們總是這樣做，我們會盡我們所能。我們的工作不是針對某個特定的縣，並說我們只會在那裡購買，我們將不惜一切代價在縣內完成交易。我們的美元在所有流域、所有縣進行全面競爭，因此我們可以為在猶他州購買東西的投資者賺更多的錢，我們寧願這樣做，也不願在米德蘭縣購買東西。

So we're looking everywhere. But I would say so far this year has been a little bit depressed on royalty volumes. And I think everybody's seen that from an M&A standpoint. That being said, things change all the time.

所以我們到處尋找。但我想說，今年到目前為止，特許權使用費數量有點低迷。我認為每個人都從併購的角度看到了這一點。話雖這麼說，事情一直在變化。

In the last year, actually it was relatively quiet, then Long Point came along for us, and that was a huge deal. We see that the last couple of years too where people just want to sell things by the end of the year. So I wouldn't be surprised if things picked up here imminently, but so far it's been relatively quiet, but now we're open-minded to acquisitions everywhere.

去年，實際上相對安靜，然後長點出現了，這是一件大事。我們也看到，過去幾年人們只想在年底前賣掉東西。因此，如果這裡的情況很快就會好轉，我不會感到驚訝，但到目前為止，情況相對平靜，但現在我們對各地的收購持開放態度。

Got it, very helpful. Thank you very much.

明白了，非常有幫助。非常感謝。

Thank you.

謝謝。

Thank you. There are no further questions at this time, I would like to turn the floor back over to the management for closing comments.

謝謝。目前沒有其他問題，我想將發言權交還給管理層以徵求結束意見。

We thank you all for joining us this morning, and we look forward to speaking with you again next quarter. This completes today's call.

我們感謝大家今天早上加入我們，我們期待下個季度再次與您交談。今天的通話到此結束。

Thank you. This concludes today's teleconference. You may now disconnect your lines. Thank you for your participation.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。