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Overview of Kimbell Royalty Partners 2025 Q3 Results

On November 6, 2025, Kimbell Royalty Partners, LP (NYSE: KRP) announced its financial performance for the third quarter of 2025, showcasing significant growth and robust operational results. The company, which is notable for its extensive portfolio of oil and natural gas mineral and royalty interests across the United States, reported a daily production run-rate of 25,530 barrels of oil equivalent (Boe) per day, outpacing market expectations and demonstrating the strength of its diverse and resilient production base.

Key Financial Highlights

Kimbell's results for Q3 2025 exhibited strong revenue performance and profitability. The company achieved total revenues of $80.6 million, attributed primarily to oil, natural gas, and natural gas liquids (NGLs), which generated $76.8 million alone. The net income stood at approximately $22.3 million with earnings attributable to common units reaching about $17.0 million, translating to $0.19 per common unit. The consolidated Adjusted EBITDA was reported at $62.3 million, reflecting efficient operational management and cost controls.

Cash Distribution and Operational Strategy

In line with its financial performance, Kimbell announced a cash distribution of $0.35 per common unit for Q3 2025. This payout represents a distribution ratio of 75% of cash available for distribution and implies a substantial annualized yield of 10.7% based on the closing price on November 5, 2025. The remaining 25% of cash available is earmarked for repaying approximately $12.6 million in outstanding borrowings under its secured revolving credit facility, reinforcing the company’s commitment to financial stability.

Robust Operational Metrics

The operational side of Kimbell also reflected impressive metrics. As of September 30, 2025, Kimbell had 86 active rigs drilling within its acreage, representing approximately 16% of the market share of land rigs in the U.S. This level of activity underscores the strategic importance of Kimbell’s assets, as they not only support a stable production platform but also position the company favorably amidst fluctuating market conditions.

Kimbell's proactive management approach has allowed it to maintain a healthy production base, with actively drilled wells exceeding the estimated requirements to sustain flat production levels. This infrastructure ensures that the company can meet operational demands effectively while navigating challenges in the broader energy sector.

Market Outlook and Future Guidance

Robert Ravnaas, the Chairman and CEO of Kimbell Royalty GP, LLC, expressed confidence in the company’s trajectory. Despite an overall slowdown among U.S. oil and gas operators, Kimbell’s production increased by roughly 1% from Q2 to Q3 2025, showcasing the resilience of its high-quality and diversified production assets. The Chairman noted that this growth was the result of strategic investments and acquisitions that the company made over the past years.

Looking ahead, Kimbell affirms its earlier financial and operational guidance for 2025, suggesting a strong outlook as the company continues its path of sustainable growth and value creation for its unitholders. With a solid production framework and a clear strategy for navigating market challenges, Kimbell is well-positioned to capitalize on future opportunities in the oil and gas sector.

Conclusion

In conclusion, Kimbell Royalty Partners’ Q3 2025 results highlight its strong market position and operational excellence within the oil and gas industry. The combination of robust production levels, solid financial outcomes, and a proactive approach to managing distributions and debt reflects the company’s dedication to generating long-term value for its stakeholders. As it wraps up 2025, Kimbell looks forward to enhancing its operational performance and continuing its trajectory of success in the competitive landscape of oil and gas royalty sectors.