Kimbell Royalty Partners LP
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did KRP Beat Earnings? Q1 2025 Results
Kimbell Royalty Partners delivered a record-setting first quarter in 2025, posting revenue of $84.21 million and earnings per unit of $0.20 as the company's $230.00 million Permian Basin acquisition, which closed January 17, proved immediately accretive to results. Net income surged to $25.85 million from $9.34 million in the year-ago period, while consolidated Adjusted EBITDA reached a record $75.53 million and cash available for distribution hit $57.16 million, supporting a quarterly distribution of $0.47 per common unit, an 18% increase from Q4 2024. Production averaged 25,501 Boe/d on a reported basis, exceeding guidance midpoints, with oil realizing $70.34 per barrel and natural gas fetching $3.68 per Mcf. Post-quarter, Kimbell expanded its revolving credit facility borrowing base to $625.00 million and redeemed 50% of its Series A Preferred Units, leaving expected total debt near $462.10 million at roughly 1.5x net leverage. Management affirmed full-year 2025 guidance, citing 90 active rigs on its acreage and a healthy drilled-but-uncompleted well inventory as reasons for continued confidence.
- Accretive $230 million Permian Basin acquisition closed January 17, 2025, adding significant production
- Record oil, natural gas, and NGL revenues of $90.0 million ($91.6 million on a full-quarter pro forma basis)
- Run-rate daily production of 25,841 Boe/d (full-quarter basis) exceeding midpoint of guidance
- 90 active rigs drilling on acreage representing 16% market share of U.S. land rig count
- Strong net DUC and permit inventory of 8.10 net locations versus 6.5 net wells needed to maintain flat production
“We are beginning 2025 with several new milestones for Kimbell, which include records for oil, natural gas and NGL revenues, consolidated adjusted EBITDA and cash available for distribution for Q1 2025. Other 2025 milestones so far include completing a highly attractive and accretive acquisition in the core of the Permian Basin on January 17, 2025, increasing the Company's borrowing base and elected commitments on the credit facility from $550 million to $625 million on May 1, 2025 and redeeming 50% of the Series A Cumulative Convertible Preferred Units on May 7, 2025, further simplifying our capital structure and reducing our cost of capital. Even with the uncertainty occurring across the broader geopolitical landscape, activity on our acreage remains robust with 90 rigs actively drilling on our acreage as of March 31, 2025, representing 16% market share of all land rigs drilling in the lower 48.”
Kimbell Royalty Partners CEO, on the earnings call
Forward Guidance & Outlook
Kimbell affirms its previously disclosed 2025 financial and operational guidance ranges. Management remains bullish about the U.S. oil and natural gas royalty industry and Kimbell's role as a leading consolidator. After the redemption of 50% of Series A Preferred Units and expected debt pay-down, Kimbell expects approximately $462.1 million in debt outstanding with net leverage of approximately 1.5x trailing twelve-month consolidated Adjusted EBITDA. The company has hedges in place extending through Q1 2027 covering oil and natural gas volumes.
KRP YoY Financials
KRP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.