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 Adjusted EBITDA of $75.5 million, and net income of $25.9 million, driven by the $230 million Permian Basin/Boren Acquisition and higher commodity prices.

• Q1 2025 run-rate daily production reached 25,841 Boe/d, with the acquisition contributing significantly; production mix was 48% natural gas, 33% oil, and 19% NGLs.

• Declared a Q1 2025 distribution of $0.47 per common unit, up 18% from Q4 2024, with an annualized yield up to 16% and approximately 70% of the distribution as return of capital.

• Redeemed 50% of Series A Cumulative Convertible Preferred Units in May 2025, simplifying capital structure and reducing cost of capital.

• Increased borrowing base and credit facility commitments from $550 million to $625 million in May 2025.

Financial highlights

• Oil, natural gas, and NGL revenues reached up to $90 million, with Adjusted EBITDA of $75.5 million and cash available for distribution of $57.2 million.

• Net income attributable to common units was $17.9 million, or $0.20 per unit; operating income was $33.6 million.

• G&A expenses were $9.6 million, with $5.8 million as cash G&A ($2.52/Boe); unit-based compensation was $3.9 million.

• Distribution of $0.47 per unit represents 75% payout ratio; 25% allocated to debt paydown.

• Market capitalization was $1.33 billion and enterprise value $1.93 billion as of March 31, 2025.

Outlook and guidance

• Affirmed full-year 2025 financial and operational guidance, citing robust development activity, strong rig count, and over 14 years of drilling inventory.

• Only 6.5 net wells per year needed to maintain flat production, supporting sustainable long-term growth.

• Approximately 70% of Q1/May 2025 distribution expected to be non-taxable for U.S. federal income tax purposes.

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

• Confident in maintaining resilient production and free cash flow due to diversified, shallow-decline asset base.