#United States #Fort Worth #Q2 2025 #Kimbell Royalty Partners #oil and gas royalties

Kimbell Royalty Partners Reports Q2 2025 Results

Kimbell Royalty Partners, LP (NYSE: KRP), a prominent leader in oil and gas mineral and royalty interests, recently released its financial results for the second quarter of 2025. The report indicates a strong run-rate daily production and encouraging revenue figures, which demonstrate the company's strength in the energy sector.

Production and Revenue Highlights

In Q2 2025, Kimbell recorded a notable daily production rate of 25,355 barrels of oil equivalent (Boe) per day. Overall revenue from oil, natural gas, and NGL assets reached approximately $74.7 million. The company reported a net income of around $26.7 million, equating to about $2.0 million or $0.02 per common unit attributable to its common unitholders. Adjusted EBITDA for the quarter stood at $63.8 million, reflecting the company’s operational efficiency and effective management strategies.

Cash Distribution and Yield

Kimbell’s Board of Directors declared a cash distribution of $0.38 per common unit, amounting to a payout ratio of 75% of the cash available for distribution. This payout implies an impressive annualized yield of 10.3% based on the closing price of $14.79 per unit on August 6, 2025. Notably, the company plans to allocate 25% of its cash available for distribution to reduce outstanding borrowings under its secured revolving credit facility.

Rig Activity and Market Share

The company is witnessing strong activity on its acreage, having 88 active drilling rigs, which represents a 17% market share of the total land rig count in the U.S. This number reflects Kimbell’s proactive stance in enhancing its production capabilities, despite a general decline in land rig activity across the country. The management underscored that its operational discipline and positive leverage contributed to maintaining a robust rig count, particularly in regions like the Permian Basin.

Operational Efficiency and Future Outlook

As of June 30, 2025, Kimbell recorded 7.99 net drilled but uncompleted (DUC) wells and net permitted locations on its acreage. With the company's operational output consistently exceeding the estimated number of wells required to maintain flat production, Kimbell remains optimistic about sustaining production levels moving forward. The increase in net DUCs was led primarily by operations in the Permian Basin, signaling potential boosts in production contributions in the near term.

Conclusion

Kimbell Royalty Partners continues to demonstrate resilience in a competitive energy market, capitalizing on strategic drilling activities and maintaining strong production and financial performance. The declaration of cash distributions, combined with a commitment to debt reduction, positions the company favorably as it navigates the complexities of the energy landscape. As Kimbell progresses through 2025, it remains focused on operational excellence and maximizing shareholder value through disciplined management and strategic investments in its mineral and royalty interests.

For more information on Kimbell Royalty Partners and its operations, visit Kimbell's Investor Relations.