Kimbell Royalty Partners (KRP) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 oil, natural gas, and NGL revenues up to $90 million, record consolidated Adjusted EBITDA of $75.5 million, and net income of $25.9 million, driven by the $230 million Permian Basin/Boren Acquisition and improved commodity prices.

• Q1 2025 run-rate daily production reached 25,841 Boe/d, including full impact of acquired assets, with robust operational activity and 90 rigs drilling (~16% U.S. market share).

• Declared a $0.47 per common unit distribution, up 17.5–18% from Q4 2024, with 15.2–15.8% annualized yield and approximately 70% expected as return of capital.

• Completed accretive Permian/Midland Basin acquisition, increased credit facility commitments to $625 million, and redeemed 50% of Series A preferred units, simplifying capital structure.

• Net income attributable to common units was $17.9 million, with $57.2 million cash available for distribution.

Financial highlights

• Oil, natural gas, and NGL revenues reached up to $90 million, a new quarterly record; total revenues after derivatives were $84.2 million.

• Consolidated Adjusted EBITDA was $75.5 million; TTM Adjusted EBITDA was $290.6 million.

• Net debt at quarter-end was $274–299 million, with net debt to trailing 12-month Adjusted EBITDA at 0.9x.

• General and administrative expenses were $9.6 million, with $5.8 million as cash G&A ($2.52/BOE).

• Distribution of $0.47 per unit equates to 75% of cash available for distribution; 25% allocated to debt paydown.

Outlook and guidance

• Affirmed full-year 2025 financial and operational guidance, with over 14 years of drilling inventory and only 6.5 net wells per year needed to maintain flat production.

• Confident in maintaining production levels due to strong rig activity and line of sight wells exceeding maintenance needs.

• Approximately 70% of Q1/May 2025 distribution expected to be non-taxable return of capital.

• Actively hedging for two years, covering ~15% of current production.

• Management expects to pursue further acquisitions, potentially financed through debt and equity.