Production and Operational Performance - Q3 2025 run-rate daily production reached 25,530 Boe/d, exceeding the midpoint of guidance[4] - The company maintained an active rig count of 86, representing approximately 16% market share of U.S. land rigs[4] - Kimbell's production increased organically by approximately 1% from Q2 to Q3 2025, demonstrating resilience amid industry headwinds[5] - Kimbell's major properties had 7.07 net DUCs and net permitted locations, exceeding the estimated 6.5 net wells needed to maintain flat production[4] - Cash G&A per BOE was $2.51 in Q3 2025, below the midpoint of guidance, indicating operational discipline[4] - Kimbell Royalty Partners, LP's cash G&A per Boe is a key metric for evaluating operational performance within the energy sector[30] Financial Performance - Q3 2025 total revenues amounted to $80.6 million, with net income of approximately $22.3 million[10] - Total revenues for Q3 2025 were $80,620,000, a decrease of 3% from $83,785,000 in Q3 2024[27] - Oil, natural gas, and NGL revenues increased to $76,807,000 in Q3 2025, up from $71,069,000 in Q3 2024, representing a growth of 8%[27] - Net income for Q3 2025 was $22,323,000, compared to $25,805,000 in Q3 2024, reflecting a decline of 13%[27] - Adjusted EBITDA attributable to Kimbell Royalty Partners, LP for Q3 2025 was $53,903,000, slightly up from $53,522,000 in Q3 2024[32] - Consolidated EBITDA for Q3 2024 was $66,359,000, compared to $59,891,000 for Q3 2025, indicating a decrease of about 9.7%[36][38] Cash Distribution and Debt Management - Kimbell announced a cash distribution of $0.35 per common unit for Q3 2025, reflecting a payout ratio of 75% of cash available for distribution[4] - The cash distribution declared for Q3 2025 was $0.35 per common unit, while cash available for distribution per common unit was $0.47[34] - The company plans to utilize 25% of cash available for distribution to repay approximately $12.6 million of outstanding borrowings[8] - Long-term debt as of September 30, 2025, stood at $448,496,000[25] - Net debt to trailing twelve month consolidated Adjusted EBITDA was approximately 1.6x as of September 30, 2025[13] - The company allocated 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility[36] Year-over-Year Comparisons - Net income for the three months ended September 30, 2024, was $25,805,000, while for the same period in 2025, it decreased to $22,323,000, reflecting a year-over-year decline of approximately 9.6%[36][38] - Cash available for distribution on common units was $43,469,000 for Q3 2025, compared to $44,228,000 in Q3 2024[32] - Cash available for distribution on common units for Q3 2024 was $44,228,000, resulting in a cash distribution per common unit of $0.55, while the declared distribution was $0.41[36] Expenses and Losses - The cash interest expense for Q3 2024 was $5,123,000, which increased to $9,782,000 in Q3 2025, reflecting a significant rise of approximately 91.5%[36][38] - The company reported a depreciation and depletion expense of $32,155,000 for Q3 2024, slightly decreasing to $31,043,000 in Q3 2025[36][38] - The gain on derivative instruments for Q3 2024 was a loss of $7,066,000, while for Q3 2025, it was a loss of $1,793,000, indicating a reduction in losses year-over-year[36][38] Shareholder Metrics - The weighted average number of common units outstanding increased to 91,170,092 in Q3 2025 from 78,977,450 in Q3 2024[27] - The cash distribution to Series A preferred unitholders for Q3 2024 was $4,156,000, while the distribution to Class B unitholders was minimal at $15,000[36]

Group 1 - The energy market shows potential for price recovery, but Kimbell Royalty Partners (KRP) is identified as a company to hold off on buying due to concerns about its competitiveness and financial stability [1] - The analysis suggests that while oil prices may recover, KRP's current position does not warrant immediate investment [1] Group 2 - The article emphasizes the importance of combining macro-economic analysis with real-world trading experience to identify profitable investment opportunities [1] - The goal is to build a balanced portfolio of U.S. securities, focusing on undervalued investments capable of yielding high returns [1]

Core Viewpoint - Kimbell Royalty (KRP) is anticipated to report a year-over-year decline in earnings due to lower revenues in its upcoming earnings report for the quarter ended September 2025, with the consensus outlook indicating potential impacts on its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Kimbell Royalty's quarterly earnings is $0.13 per share, reflecting a year-over-year decrease of 40.9%. Revenues are projected to be $79.57 million, down 5% from the same quarter last year [3]. - The consensus EPS estimate has been revised 25% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [8][12]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, with historical data showing a nearly 70% success rate for this combination [10]. Historical Performance - In the last reported quarter, Kimbell Royalty was expected to post earnings of $0.14 per share but only achieved $0.02, resulting in a surprise of -85.71%. Over the past four quarters, the company has beaten consensus EPS estimates twice [13][14]. Investment Considerations - Kimbell Royalty does not currently appear to be a compelling candidate for an earnings beat, and investors are advised to consider other factors when making investment decisions ahead of the earnings release [17].

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)