Kimbell Royalty Partners (KRP) Q2 2025 earnings summary

Executive summary

• Q2 2025 daily production averaged 25,355 Boe/d, with 88 active rigs representing 17% of U.S. land rig count.

• Net income was $26.7 million, with net income attributable to common units at $2.0 million ($0.02 per unit).

• Declared a Q2 2025 cash distribution of $0.38 per common unit, with a 10.3% annualized yield and a 38% increase year-over-year.

• Portfolio includes interests in over 131,000 gross wells across 17 million acres, with a shallow PDP decline rate of 14%.

• Since IPO, completed over $2.0 billion in M&A, growing run-rate average daily production by over 8x and returning 71% of IPO price via distributions.

Financial highlights

• Q2 2025 revenues were $86.5 million, up from $76.6 million in Q2 2024; net income was $26.7 million.

• Adjusted EBITDA for Q2 2025 was $63.8 million; trailing twelve-month Adjusted EBITDA reached $279.8 million.

• Cash available for distribution on common units was $47.1 million for Q2 2025.

• Cash G&A expense was $5.4 million, or $2.36 per Boe, below guidance.

• Distribution payout ratio was 75% of cash available for distribution.

Outlook and guidance

• Affirmed full-year 2025 financial and operational guidance.

• Over 14 years of drilling inventory remain, with 91.42 net upside locations and 7.99 net DUC and permit inventory exceeding maintenance needs.

• Board intends to continue allocating a portion of cash available for distribution to debt repayment.

• Ongoing acquisition strategy focused on accretive mineral and royalty interests.

• Monitoring global conflicts and regulatory changes for potential impacts on operations and commodity prices.