- The improvement in oil prices should result in a noticeable increase in oil development, particularly for the Permian.
- Permian rig count has already increased 50% since September. The Permian is the largest contributor to Kimbell's revenues.
- Natural gas prices have softened a bit over the last couple months, but that effect on Kimbell's results is outweighed by the larger percentage increase in oil prices.
- Kimbell's estimated value is boosted to $10.50 per unit.
For further details see:
Kimbell Royalty Partners: Increased Oil Production Expected From Permian Assets