Strong Cash Flow and Debt Reduction
Kimbell reported strong cash flow, continued debt paydown, and a $0.38 distribution per common unit. Approximately 75% of cash available for distribution was paid to unitholders, with the remainder used to reduce outstanding borrowings.
Increased Rig Count in Key Basins
Despite a 7% drop in the overall U.S. land rig count, Kimbell's rig count only dropped by 2%, with increases in the Permian Basin (4 rigs) and Haynesville (5 rigs).
Improved G&A Cost Efficiency
Cash G&A cost per BOE came in below the low end of guidance at $2.36 per BOE, reflecting positive operating leverage and cost efficiency.
Enhanced Liquidity and Capital Structure
The borrowing base and aggregate commitments on the secured revolving credit facility were increased from $550 million to $625 million. Additionally, 50% of the outstanding Series A cumulative convertible preferred units were redeemed.
Strong Financial Position and Guidance Affirmation
With a net debt to trailing 12-month consolidated adjusted EBITDA of approximately 1.6x, Kimbell maintains a conservative balance sheet. The company affirmed its financial and operational guidance for 2025.