Kimbell Royalty Partners(KRP) - 2025 Q3 - Quarterly Results

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]