Kimbell Royalty Partners (KRP) Q3 2025 earnings summary

Executive summary

• Q3 2025 run-rate daily production reached 25,530 Boe/d, up 1% sequentially and exceeding guidance midpoint, with 86 active rigs representing 16% of U.S. land rig count.

• Revenues totaled $76.8 million from oil, natural gas, and NGLs, with net income of $22.3 million and Adjusted EBITDA of $62.3 million.

• Declared a Q3 2025 distribution of $0.35 per common unit, representing a 10.5%–10.7% annualized yield, with 75% payout ratio and 25% allocated to debt repayment.

• Portfolio spans over 131,000 gross wells and 12.3–17 million gross acres, with diversified, high-margin assets across all major U.S. basins.

• Boren Acquisition in January 2025 added significant Midland Basin assets for $230.4 million, funded by equity and credit facility.

Financial highlights

• Q3 2025 oil, natural gas, and NGL revenues were $76.8 million; total revenues including other items were $80.6 million.

• Net income for Q3 2025 was $22.3 million; net income attributable to common units was $17.0 million ($0.19 per unit).

• Adjusted EBITDA for Q3 2025 was $62.3 million; cash available for distribution on common units was $43.5 million.

• Cash G&A per Boe was $2.51, below guidance midpoint; unit-based compensation was $1.78 per Boe.

• Average realized prices: oil $64.21/Bbl, natural gas $2.47/Mcf, NGLs $21.74/Bbl, combined $32.14/Boe.

Outlook and guidance

• Affirmed full-year 2025 financial and operational guidance, with production for the first nine months averaging 25,574 Boe/d.

• Over 14 years of drilling inventory and 91.42 net upside locations identified, supporting sustainable growth.

• Net DUC and permit inventory of 7.07 net wells exceeds the 6.5 net wells needed annually to maintain flat production.

• Confident in maintaining or growing production into 2026, citing strong rig activity and positive Q4 indications.

• Hedging program in place with fixed price swaps for oil and gas through Q3 2027, covering about 15% of current production.