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Kimbell Royalty Partners Achieves Outstanding Financial Results in Q1 2025

May 8, 2025 - Fort Worth, TX - Kimbell Royalty Partners, LP (NYSE: KRP) has released its results for the first quarter of 2025, marking a significant achievement in oil, natural gas, and NGL revenues. The company generated approximately $91.6 million in revenues, showing remarkable growth compared to previous quarters, primarily attributed to its strategic acquisition of additional oil production rights.

Record-Breaking Production & Revenue Highlights

The company's daily production run-rate reached 25,841 Boe/d, which exceeds the upper limit of Kimbell's previous guidance. This production includes the contributions from a $230 million acquisition finalized in January 2025, which is set to provide benefits for future revenues. In the first quarter of 2025 alone, Kimbell registered a net income of $25.9 million and a consolidated Adjusted EBITDA of approximately $77.1 million, underscoring the firm's operational efficiency and market strength.

Kimbell’s focus on active drilling remains robust, with 90 active rigs currently on its acreage, representing about 16% of the land rig count in the U.S. as of March 31, 2025. This proactive stance allows Kimbell to capitalize on rising demand and operational capabilities.

Simplified Capital Structure and Increased Commitments

Another noteworthy achievement includes the redemption of 50% of its Series A Cumulative Convertible Preferred Units. This move has enabled Kimbell to streamline its capital structure and decrease its overall cost of capital effectively. On May 1, 2025, Kimbell increased its borrowing base and total commitments on its secured revolving credit facility from $550 million to $625 million, allowing the firm to enhance its financial flexibility.

Positive Cash Distribution for Unitholders

In terms of distributions, Kimbell has declared a cash distribution of $0.47 per common unit for the first quarter, reflecting an 18% increase from the previous quarter. This translates into a 15.8% annualized yield based on the May 7, 2025 closing price. Notably, around 70% of this distribution is anticipated to be categorized as a non-taxable return of capital, potentially benefiting unitholders in terms of tax efficiency.

Future Outlook

As Kimbell head into the latter part of 2025, the management remains optimistic about the prospects of the oil and natural gas sector, bolstered by their recent acquisition and solid financial footing. The company continues to reaffirm its operational guidance while bolstering shareholder value through strategic investments and efficient management practices.

Kimbell Royalty Partners' advancements reflect a confident approach towards growth and value creation in an evolving energy market. Investors and stakeholders alike can anticipate continued innovations and results as the company navigates this promising landscape.

For more information about Kimbell Royalty Partners and its financial updates, please visit Kimbell's Investor Relations.

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