Kimbell Royalty Partners, LP (NYSE:KRP) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 11:00 am ET

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Kimbell Royalty Partners, LP (NYSE:KRP) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Kimbell Royalty Partners Third 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 Investor Relations. Thank you sir. You may begin.

Executive
Rick Black

Thank you, Operator and good morning everyone. Welcome to the Kimbell Royalty Partners conference call to review financial and operational results for the third quarter 2019. This call is also being webcast and can be accessed through the audio link on the Events & Presentations page of the IR section of kimbellrp.com. Information recorded on this call speaks only as of today November 7 2019. So please be advised that any time-sensitive information may no longer be accurate as of the date of any replay. 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 forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 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. 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 press release. Kimbell assumes no obligation to publicly update or revise any forward-looking statements.

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

Executive
Robert Ravnaas

Thank you, Rick and good morning everyone. I'm here with several other 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. I would like to begin by discussing our record-breaking performance in the third quarter. Then I'll ask Davis to cover our financial performance and review our updated guidance. After that we'll take your questions. This was an excellent quarter generating record high revenue production and consolidated adjusted EBITDA and further proving the strength of our business model and strategy. The sequential production growth in the third quarter of 8% was entirely organic, which is a testament to the high degree of activity on our acreage coupled with our best-in-class PDP decline rate. We remain very pleased with the cash flow generation production stability and growth potential across our asset base. In addition revenue growth particularly year-over-year reflects strong performance from acquisitions made in the past 12 months despite lower realized commodity prices. In addition in the third quarter we had receipts of nearly $1 million in lease bonuses. Based on our strong third quarter results and expectations for the remainder of