Group 1 - Kimbell Royalty Partners (NYSE: KRP) provides investors with direct exposure to U.S. oil and gas production, offering cash flow without operational complexities [1] - The company is positioned as a simple investment vehicle in the energy sector, appealing to those seeking stable and growing dividends [1] - The analyst has a long position in KRP shares, indicating confidence in the company's performance and potential for wealth creation [1] Group 2 - The analyst emphasizes a background in both equity and real estate markets, highlighting experience in sourcing over $100 million in commercial real estate investments [1] - The focus on correlation across asset classes and sectors, along with a degree in Economics and a minor in Applied Mathematics, supports the analytical approach to investment strategies [1] - The article aims to provide timely analyses and strategies for investors looking to enhance their portfolios, reflecting a commitment to sharing market insights [1]

Core Viewpoint - Kimbell Royalty Partners, LP will release its third quarter 2025 financial results on November 6, 2025, before market opens, and will declare its distribution concurrently [1]. Group 1: Financial Results Announcement - Kimbell Royalty Partners will announce its third quarter 2025 financial results on November 6, 2025 [1]. - The company will declare its third quarter 2025 distribution at the same time as the earnings release [1]. - A conference call is scheduled for the same day at 10:00 a.m. Central (11:00 a.m. Eastern) to discuss the results [1]. Group 2: Company Overview - Kimbell Royalty Partners is a leading oil and gas mineral and royalty company based in Fort Worth, Texas [3]. - The company owns mineral and royalty interests in over 17 million gross acres across 28 states and in every major onshore basin in the continental United States [3]. - Kimbell has ownership in more than 131,000 gross wells [3].

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1][3] - It emphasizes the importance of community and education in investing, suggesting that individuals should not invest alone [3] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to support investors [3] Group 2 - The article mentions the presence of contributors who support the investment service, indicating a collaborative approach to investment recommendations [5] - It highlights the monitoring of investment positions and the issuance of alerts to members, ensuring active management of portfolios [5]

Core Viewpoint - Warren Buffett's investment philosophy emphasizes being fearful when others are greedy and vice versa, suggesting that the Relative Strength Index (RSI) can be a useful tool to gauge market sentiment and identify potential buying opportunities [1] Company Summary - Kimbell Royalty Partners LP (Symbol: KRP) has recently entered oversold territory with an RSI reading of 29.8, indicating potential exhaustion of recent selling pressure [2] - The stock traded as low as $13.08 per share, with a 52-week low of $10.98 and a high of $16.99, suggesting a significant range for potential recovery [4] - In contrast, the S&P 500 ETF (SPY) has a current RSI reading of 67.8, highlighting a stark difference in market sentiment between KRP and the broader market [2]

Group 1 - Kimbell Royalty Partners (NYSE: KRP) reported solid Q2 2025 results, with production levels close to Q1 2025 [2] - Development activity on Kimbell's acreage has performed better than average, indicating resilience in operations [2] - The article highlights the expertise of Aaron Chow, who has over 15 years of analytical experience and is recognized as a top-rated analyst [2]

Group 1 - Mr. Mavroudis is a professional portfolio manager with expertise in institutional and private portfolios, focusing on risk management and financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI, demonstrating resilience in investment strategies [1] - Mr. Mavroudis is the CEO of FAST FINANCE Investment Services, a registered Greek company, and holds multiple advanced degrees and certifications in finance and law [1] Group 2 - The article emphasizes the importance of engaging with the investment community through platforms like Seeking Alpha, aiming for mutual growth and knowledge sharing [1]

PART I – FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The unaudited consolidated financial statements for the period ended June 30, 2025, reflect total assets growing to **$1.28 billion** and net income more than doubling to **$52.5 million**, primarily driven by acquisition activity and an equity offering [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to **$1.28 billion** from **$1.12 billion** at year-end 2024, with total liabilities rising to **$483.5 million** due to increased long-term debt Consolidated Balance Sheet Summary (In thousands) | Balance Sheet Item | June 30, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,284,936** | **$1,119,915** | | Total Oil and natural gas properties, net | $1,186,185 | $1,024,822 | | **Total Liabilities** | **$483,533** | **$256,420** | | Long-term debt | $462,096 | $239,160 | | **Total Unitholders' Equity** | **$643,008** | **$547,493** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues increased to **$86.5 million** and net income rose to **$26.7 million**, though net income attributable to common units decreased to **$2.0 million** after distributions Consolidated Statements of Operations (Q2, In thousands) | Metric (Q2) | Three Months Ended June 30, 2025 (In thousands) | Three Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | | Total Revenues | $86,548 | $76,573 | | Operating Income | $37,786 | $23,892 | | Net Income | $26,672 | $15,187 | | Net Income Attributable to Common Units | $2,007 | $8,410 | | Basic EPS | $0.02 | $0.11 | Consolidated Statements of Operations (H1, In thousands) | Metric (H1) | Six Months Ended June 30, 2025 (In thousands) | Six Months Ended June 30, 2024 (In thousands) | | :--- | :--- | :--- | | Total Revenues | $170,757 | $158,807 | | Operating Income | $71,363 | $41,453 | | Net Income | $52,525 | $24,524 | | Net Income Attributable to Common Units | $19,869 | $11,579 | | Basic EPS | $0.22 | $0.16 | [Consolidated Statements of Changes in Unitholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Unitholders'%20Equity) Total unitholders' equity increased from **$547.5 million** to **$643.0 million** in H1 2025, driven by a **$163.6 million** equity offering and net income, partially offset by distributions - In the first six months of 2025, the company issued **11.5 million** common units through an equity offering, raising **$163.6 million** in capital[17](index=17&type=chunk) - Total distributions to unitholders amounted to **$43.2 million** for the six months ended June 30, 2025[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) H1 2025 saw **$126.5 million** net cash from operations, **$223.3 million** used in investing, and **$97.2 million** provided by financing, resulting in a **$0.4 million** net increase in cash Consolidated Statements of Cash Flows (H1 2025, In thousands) | Cash Flow Activity (H1 2025) | Amount (In thousands) | | :--- | :--- | | Net cash provided by operating activities | $126,474 | | Net cash used in investing activities | $(223,291) | | Net cash provided by financing activities | $97,173 | | **Net increase in cash** | **$356** | - Key financing activities in H1 2025 included **$163.6 million** from an equity offering, **$254.1 million** in new debt, a **$179.9 million** redemption of Series A preferred units, and **$81.3 million** in distributions to common unitholders[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the **$230.4 million** Boren Acquisition, **$182.3 million** preferred unit redemption, a **$625 million** credit facility increase, and a **$0.38** per common unit Q2 2025 distribution - On January 17, 2025, the Partnership completed the Boren Acquisition of mineral and royalty interests for approximately **$230.4 million**, funded by borrowings and proceeds from the 2025 Equity Offering[39](index=39&type=chunk) - On May 1, 2025, the borrowing base and aggregate elected commitments under the A&R Credit Agreement were increased from **$550.0 million** to **$625.0 million**[60](index=60&type=chunk) - The Partnership redeemed **162,500** Series A preferred units (**50%** of those outstanding) on May 7, 2025, for an aggregate price of **$182.3 million**[66](index=66&type=chunk) - Subsequent to the quarter's end, on August 7, 2025, the Board declared a Q2 2025 cash distribution of **$0.38** per common unit[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of the Boren Acquisition on production and financial results, noting a slight Q2 2025 revenue decrease due to lower commodity prices, and outlines liquidity strategies including debt repayment [Overview and Recent Developments](index=29&type=section&id=Overview%20and%20Recent%20Developments) The company holds interests in **17.0 million** gross acres, with recent developments including a **$163.6 million** equity offering, the **$230.4 million** Boren Acquisition, and a **$182.3 million** preferred unit redemption - As of June 30, 2025, the company owned interests in approximately **17.0 million** gross acres and over **131,000** gross wells, with the Permian Basin being the largest contributor to production[98](index=98&type=chunk)[99](index=99&type=chunk) - Major corporate actions in H1 2025 included the 2025 Equity Offering (**$163.6 million** net proceeds), the Boren Acquisition (~**$230.4 million**), and a partial redemption of preferred units (**$182.3 million**)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q2 2025 oil and gas revenues decreased by **$2.3 million** to **$74.7 million** due to lower oil prices, despite increased production, while H1 operating income rose to **$71.4 million** from **$41.5 million** - Q2 2025 production volumes increased to **25,355 Boe/d** from **24,110 Boe/d** in Q2 2024, primarily due to the Boren Acquisition[139](index=139&type=chunk) - The average realized oil price in Q2 2025 was **$63.52/Bbl**, a **17.7%** decrease from **$77.20/Bbl** in Q2 2024[140](index=140&type=chunk) - For H1 2025, the company recorded a **$3.3 million** gain on commodity derivatives, compared to a **$6.8 million** loss in H1 2024[137](index=137&type=chunk) [Non-GAAP Financial Measures](index=35&type=section&id=Non-GAAP%20Financial%20Measures) Q2 2025 Consolidated Adjusted EBITDA was **$63.8 million**, a slight decrease, while Cash Available for Distribution on common units increased slightly to **$47.1 million** Non-GAAP Metric Summary (In thousands) | Non-GAAP Metric | Q2 2025 (In thousands) | Q2 2024 (In thousands) | H1 2025 (In thousands) | H1 2024 (In thousands) | | :--- | :--- | :--- | :--- | :--- | | Consolidated Adjusted EBITDA | $63,844 | $65,821 | $139,377 | $139,934 | | Cash available for distribution on common units | $47,121 | $46,058 | $104,280 | $94,936 | [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company funded acquisitions and preferred unit redemption in H1 2025 through an equity offering and credit facility, with **$13.6 million** of Q2 2025 cash available for distribution allocated to debt repayment - The Board of Directors allocated **25%** of cash available for distribution for Q2 2025, amounting to **$13.6 million**, for the repayment of outstanding borrowings under the secured revolving credit facility[165](index=165&type=chunk) - On May 1, 2025, the company's credit facility borrowing base was increased to **$625.0 million**[163](index=163&type=chunk)[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price and interest rate risks, with a **1%** interest rate increase estimated to raise annual interest expense by **$4.6 million** on **$462.1 million** in floating-rate debt - The company's main market risk is commodity price volatility, which it mitigates using fixed-price swap derivative contracts for oil and natural gas[184](index=184&type=chunk)[185](index=185&type=chunk) - With **$462.1 million** in outstanding debt, a **1%** increase in interest rates is estimated to increase annual interest expense by approximately **$4.6 million**[190](index=190&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (June 30, 2025)[192](index=192&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, these controls[193](index=193&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2025, the company is not aware of any legal proceedings or contingencies that would materially affect its financial condition or operations - As of June 30, 2025, management is not aware of any legal proceedings that would materially impact the Partnership's financial condition or operations[85](index=85&type=chunk)[195](index=195&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, were reported - The report refers to the risk factors disclosed in the 2024 Form 10-K, indicating no material updates during the quarter[196](index=196&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the reporting period[197](index=197&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, credit agreement amendments, and CEO/CFO certifications - Key exhibits filed include Amendment No. 3 to the Amended and Restated Credit Agreement, and CEO/CFO certifications pursuant to the Securities Exchange Act of 1934 and Sarbanes-Oxley Act[199](index=199&type=chunk)

Financial Data and Key Metrics Changes - Total revenues from oil, natural gas, and NGLs reached $75 million in Q2 2025, with a run rate production of 25,355 Boe per day [7] - General and administrative expenses for Q2 were $9.6 million, with cash G&A expenses at $5.4 million or $2.36 per BOE, reflecting a decrease in costs [8][10] - Consolidated adjusted EBITDA for the second quarter was $63.8 million, indicating strong cash flow [8] - The company announced a cash distribution of $0.38 per common unit, equating to 75% of cash available for distribution [9] Business Line Data and Key Metrics Changes - The overall rig count decreased by 2% to 88 rigs actively drilling, while the US land rig count dropped by 7% [5] - In the Permian Basin, the rig count increased by four rigs, and in Haynesville, it increased by five rigs, indicating localized growth despite broader declines [5] Market Data and Key Metrics Changes - The company’s market share of US land rigs actively drilling increased by 1% to 17% [5] - Net DUCs (drilled but uncompleted wells) rose by 9% quarter over quarter, primarily driven by the Permian Basin [5] Company Strategy and Development Direction - The company remains focused on organic growth opportunities and is exploring M&A opportunities, particularly for deals under $500 million [15][16] - The management emphasized a conservative approach to acquisitions, with a focus on maintaining a strong balance sheet and financial flexibility [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the prospects for continued robust development through 2025, supported by active drilling on their acreage [11] - The company noted a slowdown in Permian packages coming to market, which may affect future acquisition opportunities [27] Other Important Information - The company redeemed 50% of the outstanding Series A cumulative convertible preferred units, simplifying its capital structure [10] - Approximately 100% of the announced distribution is expected to be considered a return of capital, enhancing after-tax returns for unitholders [9] Q&A Session Summary Question: Inquiry about potential upstream partnerships - Management indicated that while exploring partnerships is an option, it is not a top priority due to a strong organic growth pipeline [15][16] Question: Discussion on rig activity resilience - Management attributed the resilience of rig activity to the quality and diversified nature of their asset base, which has shown more stickiness compared to the broader market [33] Question: Expectations for natural gas growth - Management anticipates a slight increase in natural gas production, with a potential shift towards a gassier production mix if natural gas continues to outperform oil [35][36] Question: Changes in M&A market valuations - Management noted that acquisition valuations are likely to decrease as sellers adjust expectations in response to a less favorable growth environment [44] Question: Factors driving lower G&A expenses - Lower professional fees contributed to reduced G&A expenses, with expectations to maintain costs at the lower end of guidance moving forward [46]

Company Overview - Kimbell Royalty Partners offers a 10.1% annualized cash distribution yield[6] - The company has interests in over 131,000 gross wells across over 17 million gross acres in the US[13] - Kimbell has completed over $2.0 billion in M&A transactions since its IPO in 2017[13] - Kimbell has grown run-rate average daily production by over 8x since IPO[13] - Kimbell has returned 71% of $18.00/unit IPO price via quarterly cash distributions[13] Financial Performance - Kimbell generated $74.7 million in Oil, Natural Gas and NGL Revenues in Q2 2025[16] - Consolidated Adjusted EBITDA was $63.8 million in Q2 2025[16] - Q2 2025 run-rate average daily production was 25,355 Boe/d (6:1)[16] - Net Debt / TTM Adjusted EBITDA was 1.6x as of 6/30/2025[15] Asset Base and Strategy - Kimbell estimates that approximately 100% of the distribution to be paid on August 25, 2025 is estimated to constitute non-taxable reductions to the tax basis of each distribution recipient's ownership interest in Kimbell[10] - The company has a shallow PDP decline rate of approximately 14%[15] - Kimbell has a net royalty acre position of approximately 158,350 acres[15] - Kimbell estimates that only 6.5 net wells are needed per year to maintain production[38] - Kimbell has 88 active rigs drilling on its acreage, representing approximately 17% market share of U S land rig count[18]

[Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Kimbell Royalty Partners reported strong Q2 2025 results with **25,355 Boe/d** production, **$74.7 million** in revenues, **$63.8 million** Adjusted EBITDA, and a **$0.38** cash distribution per common unit, maintaining **88** active rigs | Metric | Value | | :--- | :--- | | **Run-Rate Daily Production** | 25,355 Boe/d (6:1) | | **Oil, Natural Gas & NGL Revenues** | $74.7 million | | **Net Income** | ~$26.7 million | | **Consolidated Adjusted EBITDA** | $63.8 million | | **Cash G&A per BOE** | $2.36 | | **Active Rigs on Acreage** | 88 (17% U.S. market share) | | **Q2 2025 Cash Distribution** | $0.38 per common unit | - The company announced a Q2 2025 cash distribution of **$0.38 per common unit**, representing a **75% payout ratio** and a **10.3% annualized yield**. The remaining **25%** of cash available for distribution will be used to repay outstanding borrowings[4](index=4&type=chunk) - As of June 30, 2025, Kimbell's major properties had **7.99 net DUCs** and permitted locations, exceeding the estimated **6.5 net wells** required to maintain flat production[4](index=4&type=chunk) [Management Commentary and Shareholder Distributions](index=2&type=section&id=Management%20Commentary%20and%20Shareholder%20Distributions) Management emphasized resilient operational performance, including increased U.S. land rig market share and a **$0.38** per common unit cash distribution, with remaining cash flow allocated to debt reduction - The CEO emphasized the company's strong operational position, with its market share of U.S. land rigs increasing to **17%** and net DUCs growing by **9%** quarter-over-quarter, indicating near-term production growth[5](index=5&type=chunk) - Cash G&A per BOE was below the low end of guidance, which management attributes to operational discipline and positive operating leverage[5](index=5&type=chunk) | Distribution Metric | Value | | :--- | :--- | | **Q2 2025 Distribution** | $0.38 per common unit | | **Payout Ratio** | 75% of cash available for distribution | | **Debt Paydown** | ~$13.6 million (remaining 25%) | | **Payment Date** | August 25, 2025 | | **Record Date** | August 18, 2025 | - Kimbell expects approximately **100%** of the Q2 2025 distribution to be considered a non-taxable return of capital for U.S. federal income tax purposes, which reduces the unitholder's cost basis[6](index=6&type=chunk)[7](index=7&type=chunk) [Financial and Operational Performance](index=2&type=section&id=Financial%20and%20Operational%20Performance) Kimbell achieved Q2 2025 revenues of **$86.5 million**, net income of **$26.7 million**, **25,355 Boe/d** production, maintained **7.99 net DUCs**, and managed debt at **$462.1 million** with a **1.6x** leverage ratio [Financial Highlights](index=2&type=section&id=Financial%20Highlights) Q2 2025 Realized Prices | Commodity | Average Realized Price | | :--- | :--- | | **Oil** | $63.48 / Bbl | | **Natural Gas** | $2.54 / Mcf | | **NGLs** | $24.10 / Bbl | | **Combined** | $33.04 / Boe | Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | **Total Revenues** | $86.5 million | | **Net Income** | ~$26.7 million | | **Net Income (to common units)** | ~$2.0 million ($0.02/unit) | | **Consolidated Adjusted EBITDA** | $63.8 million | - As of June 30, 2025, Kimbell had **$462.1 million** in debt outstanding, with a net debt to TTM consolidated Adjusted EBITDA ratio of approximately **1.6x**[11](index=11&type=chunk) - The company increased its borrowing base from **$550 million** to **$625 million** and redeemed **50%** of its Series A Preferred Units to simplify its capital structure[12](index=12&type=chunk) [Production](index=3&type=section&id=Production) Q2 2025 Production Breakdown | Metric | Value | | :--- | :--- | | **Average Daily Production** | 25,355 Boe/d (6:1) | | **Production Mix** | | |    Natural Gas | 47% | |    Liquids (Oil & NGLs) | 53% | |       Oil | 33% | |       NGLs | 20% | [Operational Update](index=3&type=section&id=Operational%20Update) - As of June 30, 2025, Kimbell had **88 rigs** actively drilling on its acreage, representing an approximate **16.5%** market share of all U.S. land rigs[15](index=15&type=chunk) DUCs and Permits by Basin (as of June 30, 2025) | Basin | Net DUCs | Net Permits | | :--- | :--- | :--- | | **Permian** | 3.27 | 2.15 | | **Eagle Ford** | 0.22 | 0.08 | | **Haynesville** | 0.35 | 0.13 | | **Mid-Continent** | 0.78 | 0.39 | | **Bakken** | 0.36 | 0.10 | | **Appalachia** | 0.02 | 0.02 | | **Rockies** | 0.10 | 0.02 | | **Total** | **5.10** | **2.89** | [Hedging Update](index=4&type=section&id=Hedging%20Update) Kimbell implemented fixed-price oil and natural gas swaps through Q2 2027 to stabilize cash flow by locking in future production prices Fixed Price Swaps as of June 30, 2025 | Period | Oil Volume (BBL) | Nat Gas Volume (MMBTU) | Wtd. Avg. Oil Price ($/BBL) | Wtd. Avg. Nat Gas Price ($/MMBTU) | | :--- | :--- | :--- | :--- | :--- | | **3Q 2025** | 136,068 | 1,261,964 | $74.20 | $3.74 | | **4Q 2025** | 146,372 | 1,291,680 | $68.26 | $3.68 | | **1Q 2026** | 146,880 | 1,296,000 | $70.38 | $4.07 | | **2Q 2026** | 148,512 | 1,310,400 | $70.78 | $3.33 | | **Full Year 2026** | 605,680 | 5,256,000 | ~$67.70 | ~$3.69 | | **Full Year 2027 (H1)** | 304,623 | 2,658,528 | ~$62.65 | ~$3.96 | [Financial Statements](index=7&type=section&id=Financial%20Statements) Q2 2025 unaudited financial statements report total assets of **$1.28 billion**, liabilities of **$483.5 million**, revenues of **$86.5 million**, and net income of **$26.7 million**, driven by derivative gains [Condensed Consolidated Balance Sheet](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) Balance Sheet Summary (as of June 30, 2025) | Account | Amount (in thousands) | | :--- | :--- | | **Total Current Assets** | $88,249 | | **Total Assets** | **$1,284,936** | | **Total Current Liabilities** | $16,185 | | **Long-Term Debt** | $462,096 | | **Total Liabilities** | **$483,533** | | **Total Unitholders' Equity** | **$643,008** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (Three Months Ended June 30) | Account (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenues** | $86,548 | $76,573 | | **Operating Income** | $37,786 | $23,892 | | **Net Income** | $26,672 | $15,187 | | **Net Income Attributable to Common Units** | $2,007 | $8,410 | | **Diluted EPS** | $0.02 | $0.11 | [Supplemental Schedules (Non-GAAP Reconciliations)](index=9&type=section&id=Supplemental%20Schedules%20(Non-GAAP%20Reconciliations)) This section defines and reconciles non-GAAP measures, showing Q2 2025 Consolidated Adjusted EBITDA of **$63.8 million**, **$47.1 million** cash available for distribution, and a net debt to TTM Adjusted EBITDA ratio of **1.6x** [Definition of Non-GAAP Measures](index=9&type=section&id=Definition%20of%20Non-GAAP%20Measures) - Adjusted EBITDA is used by management to evaluate operating performance and cash flow available for distributions, excluding items like depreciation, interest, taxes, and unrealized derivative gains/losses[28](index=28&type=chunk) - Cash G&A and Cash G&A per Boe are used to measure cash costs relative to production, providing a metric for operational efficiency[29](index=29&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA and Cash Available for Distribution](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20and%20Cash%20Available%20for%20Distribution) Q2 2025 Reconciliation Summary (in thousands) | Metric | Value | | :--- | :--- | | **Net Income** | $26,672 | | **Consolidated Adjusted EBITDA** | $63,844 | | **Adjusted EBITDA (attributable to KRP)** | $55,268 | | **Cash Available for Distribution (on common units)** | $47,121 | | **Cash Available per Common Unit** | $0.50 | | **Declared Distribution per Common Unit** | $0.38 | - The difference between cash available for distribution (**$0.50/unit**) and the declared distribution (**$0.38/unit**) is due to the company allocating **25%** of cash to repay debt on its revolving credit facility[33](index=33&type=chunk) [Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA Calculation](index=13&type=section&id=Net%20Debt%20to%20Trailing%20Twelve%20Month%20Consolidated%20Adjusted%20EBITDA%20Calculation) Leverage Ratio Calculation (as of June 30, 2025) | Metric (in thousands) | Value | | :--- | :--- | | **Long-Term Debt** | $462,096 | | **Cash and Cash Equivalents (capped)** | ($25,000) | | **Net Debt** | $437,096 | | **Trailing Twelve Month Adj. EBITDA** | $279,816 | | **Net Debt / TTM Adj. EBITDA** | **1.6x** |