Derek Pitfield's questions to Kimbell Royalty Partners LP (KRP) leadership • Q4 2024
Question
Derek Pitfield questioned if the constructive natural gas price environment alters Kimbell's M&A focus and asked for perspective on the impacts of E&P operator consolidation in the Permian on Kimbell's business and competitive position.
Answer
President and CFO Davis Ravnaas affirmed that Kimbell's M&A strategy remains commodity-agnostic, prioritizing asset quality and valuation over short-term price movements. He viewed operator consolidation as a long-term net positive, leading to more efficient development by larger, better-capitalized entities. He also noted that direct competition from operators for mineral acquisitions in Kimbell's target range is rare.