Kimbell Royalty Partners (KRP) Q4 2024 earnings summary

Executive summary

• Achieved record production, revenue, and EBITDA in 2024, supported by major acquisitions, including a $230.4 million deal in early 2025, and robust drilling activity.

• Paid $1.75 per common unit in tax-advantaged distributions during 2024 and reduced credit facility debt by $56 million.

• Interests in over 130,000 gross wells across 17 million acres, with 97% of onshore rigs in counties where Kimbell holds mineral interests.

• Since IPO in 2017, completed $2.0B in M&A, grown run-rate average daily production by ~8x, and returned 66% of IPO price via distributions.

• Production has grown 733% since IPO in 2017, from 3,116 to 25,946 BOE per day.

Financial highlights

• Q4 2024 oil, natural gas, and NGL revenues were $69.1 million; consolidated Adjusted EBITDA was $59.8 million.

• Q4 2024 net loss of $39.3 million, primarily due to a $56.2 million non-cash ceiling test impairment from commodity price declines.

• Q4 2024 cash distribution of $0.40 per common unit, with a 10.1% annualized yield and 75% payout ratio.

• Net debt to trailing twelve month consolidated Adjusted EBITDA was 0.8x as of December 31, 2024.

• 91 active rigs on acreage, representing 16% of U.S. land rig count.

Outlook and guidance

• 2025 production guidance set at a record midpoint of 25,500 BOE per day (range: 24,000–27,000 BOE/d), with oil 31–35%, natural gas 46–50%, and NGLs 17–21% of net production.

• 2025 payout ratio set at 75% of projected cash available for distribution; 25% allocated to debt repayment.

• Cash G&A guidance: $2.45–$2.65/boe; production and ad valorem taxes: 7.0–9.0% of revenues.

• Guidance implies flat to modest growth, with a conservative approach in line with industry peers.

• 2025E annualized distribution yield sensitivity ranges from 7.4% to 12.9% depending on commodity prices.