Core Viewpoint - Kimbell Royalty (KRP) shares have increased by 3.9% recently, with a mean price target of $18.6 suggesting a potential upside of 30.7% from the current price of $14.23 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $4.98, indicating variability among analysts [2] - The lowest estimate is $12.00, suggesting a 15.7% decline, while the highest estimate is $24.00, indicating a potential increase of 68.7% [2] - Analysts' price targets can often mislead investors, as empirical research shows they rarely indicate actual stock price movements [7][10] Earnings Estimates and Analyst Agreement - Analysts have shown increasing optimism regarding KRP's earnings, with a strong consensus on higher EPS estimates, which correlates with potential stock price increases [11] - Over the past 30 days, one estimate has increased, leading to a 34.4% rise in the Zacks Consensus Estimate for the current year [12] - KRP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Movement - While the consensus price target may not be a reliable measure of KRP's potential gains, the direction indicated by these targets appears to be a useful guide for investors [14]

Technical Analysis - Kimbell Royalty (KRP) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is a popular tool among traders as it smooths out price fluctuations and can signal trend reversals more effectively than longer-term averages [2] Performance Metrics - KRP has moved 8.4% higher over the last four weeks, suggesting potential for further gains [4] - The company currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [4] Earnings Estimates - There have been two upward revisions in KRP's earnings estimates for the current fiscal year, with no downward revisions, leading to an increased consensus estimate [4][5] - The combination of positive technical factors and earnings estimate revisions may attract investor interest for potential gains in the near future [5]

Kimbell Royalty (KRP) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends ...

Core Viewpoint - Kimbell Royalty (KRP) shows potential for further upside, with a mean price target of $18.6 indicating a 27.3% upside from its current price of $14.61, following an 11.7% gain over the past four weeks [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $4.98, indicating variability among analysts; the lowest estimate is $12.00 (17.9% decline), while the highest is $24.00 (64.3% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement direction, although it does not guarantee the stock will reach the average target [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about KRP's earnings prospects, with a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 34.1%, with one estimate moving higher and no negative revisions [12] - KRP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for near-term upside [13] Caution on Price Targets - While price targets are often sought after by investors, they can mislead; empirical research shows that they rarely indicate actual stock price movements [7][10] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [8]

Part I [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(Unaudited)) For the first quarter of 2025, the company reported a significant increase in net income to $25.9 million, up from $9.3 million in the prior-year period, driven by higher natural gas revenues and the absence of property impairment charges. Total assets grew to $1.33 billion, primarily due to the $230.4 million Boren Acquisition, which was funded through an equity offering and increased debt. Cash flow from operations decreased to $54.2 million from $69.0 million year-over-year Consolidated Balance Sheets Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $35,627,785 | $34,168,424 | | Total current assets | $99,380,622 | $85,267,081 | | Total oil and natural gas properties, net | $1,216,414,461 | $1,024,822,208 | | **Total assets** | **$1,325,867,709** | **$1,119,914,763** | | Total current liabilities | $16,522,371 | $12,745,863 | | Long-term debt | $298,996,274 | $239,159,776 | | **Total liabilities** | **$322,201,380** | **$256,420,228** | | **Total unitholders' equity** | **$687,269,543** | **$547,492,392** | Consolidated Statements of Operations Consolidated Statements of Operations Highlights (Unaudited) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Oil, natural gas and NGL revenues | $89,951,203 | $87,499,509 | | Total revenues | $84,208,766 | $82,233,944 | | Depreciation and depletion expense | $31,118,095 | $38,166,806 | | Impairment of oil and natural gas properties | $0 | $5,963,575 | | Operating income | $33,576,732 | $17,560,837 | | **Net income** | **$25,853,195** | **$9,336,939** | | **Net income attributable to common units** | **$17,862,084** | **$3,168,956** | | **Basic EPS** | **$0.20** | **$0.04** | | **Diluted EPS** | **$0.20** | **$0.04** | Consolidated Statements of Cash Flows Consolidated Cash Flow Highlights (Unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$54,152,677** | **$69,045,616** | | Net cash used in investing activities | ($222,949,985) | ($91,368) | | Net cash provided by (used in) financing activities | $170,256,669 | ($60,267,298) | | **Net increase in cash and cash equivalents** | **$1,459,361** | **$8,686,950** | - Investing activities in Q1 2025 were dominated by a **$222.6 million** purchase of oil and natural gas properties[21](index=21&type=chunk) - Financing activities in Q1 2025 included **$163.6 million** in net proceeds from an equity offering and net borrowings of **$59.8 million** on long-term debt[21](index=21&type=chunk) Notes to Consolidated Financial Statements - The Partnership's business model is to own and acquire mineral and royalty interests in oil and natural gas properties, entitling it to revenue from production without the obligation to fund drilling, completion, or operating expenses[23](index=23&type=chunk) Disaggregated Revenue (Q1 2025 vs Q1 2024) | Revenue Source | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Oil revenue | $51,934,492 | $61,627,873 | | Natural gas revenue | $25,637,994 | $14,554,573 | | NGL revenue | $12,378,717 | $11,317,063 | | **Total** | **$89,951,203** | **$87,499,509** | - On January 17, 2025, the Partnership completed the Boren Acquisition of mineral and royalty interests in the Midland Basin for approximately **$230.4 million**[40](index=40&type=chunk) - The Partnership did not record an impairment on oil and gas properties in Q1 2025, compared to a **$6.0 million** impairment in Q1 2024 which was attributed to a decline in the 12-month average commodity prices[53](index=53&type=chunk) - Subsequent to the quarter end, on May 1, 2025, the Partnership increased its credit facility's borrowing base to **$625.0 million** and on May 7, 2025, redeemed **50%** of its outstanding Series A preferred units for **$182.3 million**[100](index=100&type=chunk)[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 2.9% year-over-year increase in Q1 2025 oil, gas, and NGL revenues to significantly higher natural gas prices, which offset a 9.6% decrease in realized oil prices and an 8.1% decline in total production volumes. The company completed the $230.4 million Boren Acquisition and a $163.6 million equity offering. Adjusted EBITDA remained stable at $75.5 million, while cash available for distribution to common unitholders increased to $57.2 million. The company's liquidity is primarily sourced from operating cash flow and its revolving credit facility, which was expanded subsequent to the quarter Overview and Recent Developments - As of March 31, 2025, the Partnership owned interests in approximately **17.0 million gross acres** across **28 states**, with ownership in over **131,000 gross wells**[112](index=112&type=chunk)[113](index=113&type=chunk) - In January 2025, the company completed a **$163.6 million** equity offering to partially fund the Boren Acquisition, which added properties in the Midland Basin[116](index=116&type=chunk)[117](index=117&type=chunk) - A quarterly cash distribution of **$0.47 per common unit** was declared for Q1 2025[118](index=118&type=chunk) Results of Operations - Oil, natural gas, and NGL revenues increased by **$2.5 million** (**2.9%**) in Q1 2025 compared to Q1 2024, primarily due to a **97.4% increase** in the average realized price of natural gas, which offset lower production volumes and a **9.6% decrease** in realized oil prices[146](index=146&type=chunk)[148](index=148&type=chunk) Production Data (Q1 2025 vs Q1 2024) | Product | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Oil (Bbls) | 749,744 | 804,589 | | Natural gas (Mcf) | 6,618,953 | 7,413,069 | | NGLs (Bbls) | 442,187 | 458,247 | | **Combined (Boe)** | **2,295,090** | **2,498,348** | - Depreciation and depletion expense decreased by **$7.1 million** to **$31.1 million** in Q1 2025, mainly due to a lower depletable base following impairments recorded in 2024[153](index=153&type=chunk) - No impairment was recorded in Q1 2025, in contrast to a **$6.0 million** impairment charge in Q1 2024, which was caused by a decline in the 12-month average commodity prices[155](index=155&type=chunk) Non-GAAP Financial Measures Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net income | $25,853,195 | $9,336,939 | | **Consolidated Adjusted EBITDA** | **$75,533,036** | **$74,113,012** | | Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $65,387,425 | $57,933,362 | | **Cash available for distribution on common units** | **$57,159,352** | **$48,877,514** | Liquidity and Capital Resources - Primary sources of liquidity are cash from operations and financing activities. The company's credit facility borrowing base was increased to **$550.0 million** in December 2023[160](index=160&type=chunk) - The Board of Directors allocated **25%** of cash available for distribution from Q1 2025 (**$16.9 million**) to repay outstanding borrowings under the secured revolving credit facility[162](index=162&type=chunk) - Cash from operations decreased to **$54.2 million** in Q1 2025 from **$69.0 million** in Q1 2024, impacted by changes in commodity prices and production volumes[167](index=167&type=chunk) - As of March 31, 2025, the outstanding balance on the secured revolving credit facility was **$299.0 million**[68](index=68&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility for oil, natural gas, and NGLs, which it mitigates through the use of fixed-price swap derivative contracts. It also faces interest rate risk on its variable-rate debt, with a hypothetical 1% rate increase projected to raise annual interest expense by approximately $3.0 million. Counterparty credit risk is managed by evaluating the financial standing of its derivative counterparties, who are also lenders under its credit facility - The main market risk exposure is the pricing of oil, natural gas, and NGLs. The company uses commodity derivative contracts, specifically fixed-price swaps, to reduce price volatility[182](index=182&type=chunk)[183](index=183&type=chunk) - The company is exposed to interest rate risk on its **$299.0 million** of outstanding debt. A **1%** increase in interest rates would result in an approximate **$3.0 million** increase in annual interest expense[188](index=188&type=chunk)[189](index=189&type=chunk) - Counterparty risk on derivative contracts is present. As of March 31, 2025, the company had **seven counterparties**, all of whom are also lenders under its secured revolving credit facility[186](index=186&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2025. No material changes to internal control over financial reporting occurred during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[191](index=191&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[192](index=192&type=chunk) Part II – Other Information [Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any legal, environmental, or other commitments or contingencies that would materially affect its financial condition, results of operations, or liquidity as of March 31, 2025 - Management is not aware of any legal proceedings that would have a material effect on the Partnership's financial condition or operations[98](index=98&type=chunk)[194](index=194&type=chunk) [Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section supplements the risk factors from the 2024 Form 10-K, specifically highlighting the potential adverse effects of changes in U.S. trade policy and tariffs. Such changes could lead to market volatility, increased costs, and limited access to capital, which may materially impact the business and its results - The report supplements previous risk disclosures, emphasizing that changes in U.S. trade policy, including tariffs and trade restrictions, could have a material adverse effect on the business and results of operations[196](index=196&type=chunk)[197](index=197&type=chunk) - Potential impacts from trade policy changes include financial market volatility, declining consumer confidence, inflation, and increased volatility in commodity prices, which could increase costs of capital and limit access to financing[198](index=198&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities) In February 2025, the company issued a total of 32,580 common units in two separate transactions to existing OpCo unitholders in exchange for an equal number of OpCo common units and Class B units. These issuances were exempt from registration under Section 4(a)(2) of the Securities Act. Additionally, 315,276 common units were withheld to satisfy tax obligations related to vested restricted units - In February 2025, the Partnership issued a combined **32,580 common units** to OpCo unitholders in exchange for OpCo common units and Class B units, in transactions exempt from registration under Section 4(a)(2) of the Securities Act[200](index=200&type=chunk)[201](index=201&type=chunk) - During Q1 2025, **315,276 common units** were withheld to satisfy tax-withholding obligations related to the vesting of restricted units[202](index=202&type=chunk)

Kimbell Royalty Partners (KRP) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Company Participants Rick Black - EVPRobert Ravnaas - CO-Founder, Chairman & CEODavis Ravnaas - President, CFO and Co-FounderJohn Annis - Vice PresidentNoah Hungness - Equity Research AssociateMatthew Daly - COO Conference Call Participants Tim Rezvan - Managing Director & Equity Research AnalystPaul Diamond - Analyst Operator Greetings, and welcome to the Kimball Royalty Partners First Quarter Earnings Conference Call. At this ti ...

Kimbell Royalty Partners (KRP) Q1 2025 Earnings Call May 08, 2025 11:00 AM ET Speaker0 Greetings, and welcome to the Kimball Royalty Partners First Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you Rick Black with Investor Relations. Thank you, Rick. You may begin. Speaker1 Thank you, operator, and good mo ...

Company Performance - Kimbell Royalty (KRP) reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.15 per share, and showing a significant increase from earnings of $0.04 per share a year ago, representing an earnings surprise of 33.33% [1] - The company posted revenues of $84.21 million for the quarter ended March 2025, which was 4.56% below the Zacks Consensus Estimate, but an increase from $82.23 million in the same quarter last year [2] - Over the last four quarters, Kimbell Royalty has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Performance and Outlook - Kimbell Royalty shares have declined approximately 26.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $80.53 million, and for the current fiscal year, it is $0.30 on revenues of $332.35 million [7] Industry Context - The Oil and Gas - Royalty Trust - United States industry, to which Kimbell Royalty belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Kimbell Royalty's stock performance [5]

Company Overview - Kimbell Royalty Partners offers a unique annualized cash distribution yield of 15.2%[10] - Kimbell has interests in over 131,000 gross wells across over 17 million gross acres in the US[17] - Since its IPO in 2017, Kimbell has completed over $2 billion in M&A transactions and grown run-rate average daily production by over 8x[17] - Kimbell has returned 68% of the $18 per unit IPO price via quarterly cash distributions since 2017[17] Financial Highlights - Kimbell's Net Debt / TTM Adjusted EBITDA is 0.9x as of March 31, 2025[20] - Q1 2025 run-rate oil, natural gas and NGL revenues reached a record of $88.6 million[25, 29] - Q1 2025 consolidated Adjusted EBITDA was a record $75.5 million[23, 29] Asset Base and Drilling Inventory - Kimbell has a shallow PDP decline rate of approximately 14%[19] - The company possesses a net royalty acre position of approximately 158,350 acres[19] - Kimbell has identified 11,510 gross / 77.71 net total upside locations on major properties alone as of December 31, 2024[45] - Kimbell estimates that only 6.5 net wells are needed per year to maintain production, reflecting over 14 years of drilling inventory including major and minor locations[45] Tax Structure - Approximately 70% of the distribution to be paid on May 28, 2025, is estimated to constitute non-taxable reductions to the tax basis of each distribution recipient's ownership interest in Kimbell[13, 35, 67]

[Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) Kimbell Royalty Partners achieved record Q1 2025 revenues, Adjusted EBITDA, and cash available for distribution, driven by strong production and strategic capital structure enhancements [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Kimbell Royalty Partners reported record Q1 2025 revenues, Adjusted EBITDA, and cash available for distribution, with production exceeding guidance and an 18% increase in quarterly distribution Key Financial and Operational Metrics | Metric | Q1 2025 Value | Note | | :--- | :--- | :--- | | **Oil, Gas & NGL Revenues** | $90.0 million | Record High | | **Net Income** | $25.9 million | - | | **Consolidated Adjusted EBITDA** | $75.5 million | Record High | | **Run-Rate Daily Production** | 25,841 Boe/d | Including full-quarter impact of acquisition | | **Cash Distribution per Unit** | $0.47 | 18% increase from Q4 2024 | - The company simplified its capital structure by redeeming **50%** of its outstanding Series A Cumulative Convertible Preferred Units[2](index=2&type=chunk)[6](index=6&type=chunk)[8](index=8&type=chunk) - The borrowing base and aggregate commitments on Kimbell's secured revolving credit facility were increased from **$550 million** to **$625 million**[2](index=2&type=chunk)[6](index=6&type=chunk)[8](index=8&type=chunk) - Activity remains robust with **90 active rigs** on Kimbell's acreage, representing a **16% market share** of the U.S. land rig count as of March 31, 2025[2](index=2&type=chunk)[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Robert Ravnaas highlighted record Q1 2025 results, emphasizing strategic milestones, robust drilling activity, and a bullish outlook for the U.S. oil and gas royalty sector - Management emphasized several 2025 milestones: a highly accretive Permian acquisition, an increased credit facility to **$625 million**, and the redemption of **50%** of Series A preferred units to simplify the capital structure[6](index=6&type=chunk) - The Q1 2025 distribution of **$0.47 per unit** represents an **18% increase** from Q4 2024 and an annualized yield of **15.8%**; approximately **70%** of this distribution is expected to be a non-taxable return of capital[7](index=7&type=chunk) - The company remains optimistic about its future, citing its position as a leading consolidator in the U.S. oil and natural gas royalty industry and its potential to generate long-term unitholder value[7](index=7&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) Kimbell's Q1 2025 financial performance was marked by increased revenues, net income, and record Adjusted EBITDA, supported by favorable commodity prices [Key Financial Results](index=3&type=section&id=Key%20Financial%20Results) Kimbell's Q1 2025 saw total revenues of $84.2 million, net income of $25.9 million, and record Consolidated Adjusted EBITDA of $75.5 million, benefiting from strong commodity prices Key Financial Results Comparison | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $84.2M | $82.2M | | **Net Income** | $25.9M | $9.3M | | **Net Income per Common Unit (Basic)** | $0.20 | $0.04 | | **Consolidated Adjusted EBITDA** | $75.5M | $74.1M | Average Realized Prices | Commodity | Average Realized Price (Q1 2025) | | :--- | :--- | | **Oil** | $70.34 / Bbl | | **Natural Gas** | $3.68 / Mcf | | **NGLs** | $26.02 / Bbl | | **Combined** | $38.61 / Boe | [Distributions and Capital Management](index=3&type=section&id=Distributions%20and%20Capital%20Management) The Board approved a Q1 2025 cash distribution of $0.47 per common unit, with 25% of cash available for distribution allocated to debt repayment, maintaining a healthy leverage ratio - A cash distribution of **$0.47 per common unit** was declared for Q1 2025, payable on May 28, 2025[9](index=9&type=chunk) - The company will use the remaining **25%** of cash available for distribution, about **$16.9 million**, to pay down outstanding borrowings on its credit facility[9](index=9&type=chunk) - As of March 31, 2025, Kimbell had **$299.0 million** in debt outstanding and **$251.0 million** in undrawn capacity on its credit facility[14](index=14&type=chunk) - Post-quarter end, after the preferred unit redemption and planned debt paydown, net debt to TTM Adjusted EBITDA is expected to be approximately **1.5x**[15](index=15&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) Q1 2025 total General & Administrative expense was $9.6 million, comprising $5.8 million in cash G&A and $3.9 million in non-cash unit-based compensation General & Administrative Expense | G&A Expense (Q1 2025) | Amount | Per Boe | | :--- | :--- | :--- | | **Total G&A** | $9.6 million | - | | **Cash G&A** | $5.8 million | $2.52 | | **Unit-based Compensation (Non-cash)** | $3.9 million | $1.68 | [Operational Performance](index=4&type=section&id=Operational%20Performance) Kimbell's Q1 2025 operational performance featured strong run-rate daily production and significant drilling activity across its acreage [Production](index=4&type=section&id=Production) Q1 2025 run-rate average daily production was 25,501 Boe/d, with pro-forma production at 25,841 Boe/d, maintaining a balanced liquids and natural gas mix Production Metrics | Production Metric | Value | | :--- | :--- | | **Q1 2025 Run-Rate Production** | 25,501 Boe/d | | **Pro-Forma Run-Rate Production** | 25,841 Boe/d | | **Liquids Mix** | 52% (33% Oil, 19% NGLs) | | **Natural Gas Mix** | 48% | [Drilling and Development Activity](index=4&type=section&id=Drilling%20and%20Development%20Activity) As of March 31, 2025, Kimbell's acreage had 90 active drilling rigs, representing a 15.7% U.S. land rig market share, with substantial DUC and permitted locations - As of March 31, 2025, there were **90 active rigs** on Kimbell's acreage, representing a **15.7% market share** of all U.S. land rigs[18](index=18&type=chunk) Net DUCs and Permits by Basin | Basin | Net DUCs | Net Permits | Total Net Locations | | :--- | :--- | :--- | :--- | | **Permian** | 2.64 | 2.55 | 5.19 | | **Mid-Continent** | 0.91 | 0.41 | 1.32 | | **Haynesville** | 0.37 | 0.16 | 0.53 | | **Bakken** | 0.31 | 0.22 | 0.53 | | **Eagle Ford** | 0.32 | 0.08 | 0.40 | | **Other** | 0.12 | 0.01 | 0.13 | | **Total** | **4.67** | **3.43** | **8.10** | [Outlook and Hedging](index=5&type=section&id=Outlook%20and%20Hedging) Kimbell maintains a strategic hedging position to mitigate commodity price risk and has reaffirmed its full-year 2025 guidance [Hedging Position](index=5&type=section&id=Hedging%20Position) Kimbell employs a fixed-price swap strategy to manage commodity price risk, with hedges for oil and natural gas extending through Q1 2027 Hedging Summary | Period | Oil Volume (BBL) | Avg Oil Price ($/BBL) | Nat Gas Volume (MMBTU) | Avg Nat Gas Price ($/MMBTU) | | :--- | :--- | :--- | :--- | :--- | | **2Q 2025** | 140,686 | $67.64 | 1,310,127 | $3.52 | | **3Q 2025** | 136,068 | $74.20 | 1,261,964 | $3.74 | | **4Q 2025** | 146,372 | $68.26 | 1,291,680 | $3.68 | | **Full Year 2026** | ~600k | ~$67.75 | ~5.2M | ~$3.69 | | **1Q 2027** | 151,470 | $63.75 | 1,321,920 | $4.46 | [2025 Guidance](index=2&type=section&id=2025%20Guidance) Kimbell has reaffirmed its previously disclosed financial and operational guidance ranges for the full year 2025, indicating confidence in its performance trajectory - The company affirmed its full-year 2025 financial and operational guidance, which was previously provided in its Q4 2024 earnings release[8](index=8&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) The financial statements provide a detailed overview of Kimbell's assets, liabilities, equity, operational results, and non-GAAP reconciliations for Q1 2025 [Condensed Consolidated Balance Sheet](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of March 31, 2025, Kimbell reported total assets of $1.33 billion, with $1.22 billion in net oil and natural gas properties, and total liabilities of $322.2 million Condensed Consolidated Balance Sheet (as of March 31, 2025) | Balance Sheet Item | Amount (in thousands) | | :--- | :--- | | **Total Current Assets** | $99,381 | | **Total Oil and Natural Gas Properties, net** | $1,216,414 | | **Total Assets** | **$1,325,868** | | **Total Current Liabilities** | $16,522 | | **Long-term Debt** | $298,996 | | **Total Liabilities** | **$322,201** | | **Total Unitholders' Equity** | **$687,270** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, Kimbell reported $84.2 million in total revenues, a significant increase in operating income to $33.6 million, and improved net income attributable to common units Condensed Consolidated Statements of Operations | Income Statement (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Oil, natural gas and NGL revenues** | $89,951 | $87,499 | | **Total Revenues** | $84,209 | $82,234 | | **Operating Income** | $33,577 | $17,561 | | **Net Income** | $25,853 | $9,337 | | **Net Income Attributable to Common Units** | $17,862 | $3,169 | | **Diluted EPS** | $0.20 | $0.04 | [Non-GAAP Reconciliations](index=9&type=section&id=Non-GAAP%20Reconciliations) Supplemental schedules reconcile GAAP net income of $25.9 million to Consolidated Adjusted EBITDA of $75.5 million and Cash Available for Distribution of $57.2 million for Q1 2025 Reconciliation to Adjusted EBITDA | Reconciliation to Adjusted EBITDA (Q1 2025, in thousands) | Amount | | :--- | :--- | | **Net Income** | $25,853 | | (+) Depreciation and depletion | $31,118 | | (+) Interest expense | $6,622 | | (+) Income tax expense | $1,090 | | (+) Unit-based compensation | $3,861 | | (+) Loss on derivatives, net of settlements | $6,989 | | **Consolidated Adjusted EBITDA** | **$75,533** | Reconciliation to Cash Available for Distribution | Reconciliation to Cash Available for Distribution (Q1 2025, in thousands) | Amount | | :--- | :--- | | **Adjusted EBITDA attributable to KRP, LP** | $65,387 | | (-) Cash interest expense | $4,051 | | (-) Cash distributions on Series A preferred units | $4,163 | | **Cash available for distribution on common units** | **$57,159** | - The calculated cash available for distribution was **$0.61 per common unit**, while the declared distribution was **$0.47 per unit**; the difference is primarily being used to repay outstanding debt[36](index=36&type=chunk)