Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| We feel very confident about the prospects for continued robust development given the number of rigs actively drilling on our acreage as well as the commentary we are hearing from several operators about their expected development activity in 2024, especially in the Permian |
| So we feel better today than we ever have about the near-term catalyst for development on our acreage |
| We are very pleased to announce another record year for Kimball |
| I think our acreage will grow better than the average producers will, just by evidence of the number of DUCs we have relative to our PDP decline maintenance level |
| In addition, we increased the borrowing base and elected commitments on our revolving credit facility to $550 million, further enhancing our liquidity and conservative capital structure |
| You're correct that we have pivoted, not necessarily deliberately, but we have pivoted and just benefited from some really nice acquisitions in the Permian Basin over the last two years |
| Total fourth quarter consolidated adjusted EBITDA was a record at $69 million which was up approximately 24% from last quarter |
| We expect to continue this operational momentum as we progress through 2024, given that our rig count remains near record highs with 98 rigs actively drilling in the U.S |
| And again, we can't guarantee that, but we feel we feel very confident about near-term development on our asset and the ability to replace decline production barrels |
| It is remarkable to reflect on our growth since our IPO, as we have now grown production from 3,116 BOE per day to 24,332 BOE per day, an increase of 681% |
| But I think that because we've happened to have acquired large assets in the last two years with a disproportionate number of DUCs relative to that maintenance production level, we would expect that our portfolio will look quite good on a relative basis to perhaps lower 48 growth overall |
| So that would suggest that we have ample opportunity here to not only keep production volumes flat, but particularly for them to grow |
| We are very excited about the opportunities to expand in the future and deliver unitholder value for years to come |
| We are very comfortable with our strong financial position, the support of our expanding bank syndicate and our financial flexibility |
| This was a great year for Kimbell as we finished 2023 with a very strong fourth quarter as well as setting new records in several of our financial and operating metrics |
| But then going back four, five years ago with our Haymaker acquisition and others, the Haynesville looks an excellent basin for us |
| In the fourth quarter, we generated record daily production that marked another significant milestone for Kimball |
| So overall, feel good about the direction of the company |
| We ended the year with a strong fourth quarter that reflected significant sequential organic growth over the third quarter due to a number of high interest wells coming online in the Permian and Haynesville |
| I think that's baked into our guidance and kind of echo some of the comments that I've made on previous questions, which is that we feel very good about our DUCs and permits relative to maintenance activity that needs to happen to keep production flat |
| So I think if I had to guess, I'd say that growth will be -- we will feel more confident about those combined companies on a consolidated basis for their ability to maintain production levels |
| We remain very bullish about our industry and our company as we see a long horizon for continued growth and opportunities to enhance shareholder value |
| And so that's why we continue to believe that larger institutional buyers like ourselves, specifically the public companies will continue to benefit from a robust seller pipeline |
| Continues to surprise us to the positive |
| Very happy with the ease at which we were able to integrate the Long Point asset |
| They have a phenomenal team and have been incredibly well organized and very supportive of, frankly, just getting us fully integrated and getting all the cash to where it needs to go |
| But again, I feel very confident about the oil-weighted asset base roughly, let's say, just over 50% of our rigs running right now in our acreage are in the Permian |
| And -- we know that the quality of title and asset that they're delivering to us is going to be solid because we've gone through the diligence process with them before |
| And we greatly appreciate these partnerships that contribute to the company's success |
| We have obviously benefited from that |
| Statement |
|---|
| We continue to be disappointed by the price -- the clearing prices for smaller acquisitions |
| It's just always challenging as a mineral owner with no developmental control over the assets to pinpoint exactly what growth is going to be, particularly in such a volatile environment like we're in today on the natural gas side and even oil but more recently |
| So it's a tough environment, specifically right now to be providing guidance, but I think that's something that's going to be tough for any mineral owner, obviously, that doesn't have developmental control over their assets |
| I would say that every year since our IPO and even before that, we've been surprised by M&A volume |
| But given the kind of activity reductions we've seen from some operators in both Appalachia and the Haynesville |
| But on the size aspect, it's been really tough to find deals that make sense for us, candidly, just from a pricing perspective under $25 million or $50 million |
| So slow start to this year |
| So it just so happened in the last couple of years, the Permian has been really hot |
| But that's not something that surprises us |
| I think on the natural gas side, we're seeing a little bit of a mixed bag |
| It's even harder when you restrict yourself to one county or two counties or is it just one basin, I think it can be very challenging with some exceptions, but I think it makes your life more difficult when you're precluding yourself from looking at the totality of what's possible to buy as opposed to focusing on one individual basin |
| I think I was on mute |
| So we just think it's inevitable that consolidation continues |
| And I think you'll see that not just for ourselves but also some of the other public companies, where we're just a little bit surprised that it looks like some people are just trying to put money to work |
| So I don't feel -- your point well taken |
| But we may see a little bit of a less production growth or less of an ability to replace production on the maintenance front on the natural gas side |
| There's been a lot of exits in that space |
| I apologize for the prior background noise in the office |
| I noticed that, too |
| I think that what you'll see less of is the hyperbolic shale growth of prior years, unless, of course, we see some sort of material macro event that increases oil and gas prices |
Please consider a small donation if you think this website provides you with relevant information