Kimbell Royalty Partners(US:KRP)2026-02-26 12:07Production and Revenue - Q4 2025 run-rate daily production reached 25,627 Boe/d, exceeding the mid-point of guidance[1] - Q4 2025 total revenues amounted to $82.5 million, with net income of $24.8 million and net income attributable to common units of $19.2 million[11] - For Q4 2025, total revenues increased to $82.453 million, up from $66.715 million in Q4 2024, marking a year-over-year growth of approximately 23%[33] - For the full year 2025, total revenues reached $333.830 million, an increase from $309.307 million in 2024, representing a growth of about 8%[35] - The average realized price per barrel of oil in Q4 2025 was $58.24, with total revenues from oil, natural gas, and NGLs at $76.0 million[11] Financial Performance - The company reported a net income of $24,804 million for Q4 2025, compared to a net loss of $39,259 million in Q4 2024[33] - Kimbell's net income for the year ended December 31, 2025, was $99.651 million, significantly higher than the $11.070 million reported in 2024[35] - The company’s basic earnings per common unit for 2025 was $0.62, compared to a loss of $0.12 per unit in 2024[35] - Consolidated Adjusted EBITDA for Q4 2025 was $64,825,000, compared to $59,776,000 in Q4 2024, reflecting an increase of 8.5%[42] - Adjusted EBITDA attributable to Kimbell Royalty Partners, LP for Q4 2025 was $56,117,000, up from $50,684,000 in Q4 2024, marking an increase of 10.0%[42] Cash Distribution and Debt Management - Q4 2025 cash distribution was announced at $0.37 per common unit, up 6% from Q3 2025, reflecting a payout ratio of 75% of cash available for distribution[9] - Kimbell plans to maintain a payout ratio of 75% of projected cash available for distribution, using the remaining 25% to reduce outstanding borrowings[24] - Kimbell paid down approximately $57.4 million on its credit facility during 2025, allocating 25% of cash available for distribution for debt repayment[5] - As of December 31, 2025, Kimbell had approximately $441.5 million in debt outstanding, with a net debt to trailing twelve-month consolidated Adjusted EBITDA ratio of approximately 1.5x[15] - Long-term debt as of December 31, 2025, was $441,500,000, with net debt at $397,523,000, resulting in a net debt to trailing twelve-month consolidated adjusted EBITDA ratio of 1.5x[46] Operational Insights - Proved developed reserves increased by approximately 8% year-over-year to nearly 73 million Boe, reflecting ongoing development and acquisitions[21] - Kimbell's major properties had 85 active rigs drilling, representing a 16.1% market share of U.S. land rigs as of December 31, 2025[18] - The company initiated 2026 operational guidance with estimated daily production projected at a mid-point of 25,500 Boe/d, unchanged from 2025[8] - Kimbell Royalty Partners projects net production for 2026 to be between 24.0 Mboe/d and 27.0 Mboe/d, with oil production expected to account for 30% to 34% of net production[24] - The company anticipates natural gas production to represent 46% to 50% of net production, while natural gas liquids production is expected to be 18% to 22%[24] Cost Management - Unit costs for marketing and other deductions are projected to range from $1.40 to $2.20 per boe, with depreciation and depletion expenses expected between $13.00 and $20.00 per boe[24] - Net cash provided by operating activities for Q4 2025 was $57,226,000, an increase from $56,571,000 in Q4 2024, representing a growth of 1.2%[40] - Cash available for distribution on common units in Q4 2025 was $46,836,000, compared to $41,502,000 in Q4 2024, indicating a rise of 12.0%[42] - The cash available for distribution per common unit outstanding in Q4 2025 was $0.50, an increase from $0.44 in Q4 2024[42] - The fourth quarter 2025 distribution declared was $0.37 per common unit, compared to $0.40 in Q4 2024[42] Asset Performance - The impairment of oil and natural gas properties was zero in Q4 2025, compared to $56,155,000 in Q4 2024, indicating improved asset performance[40] - Kimbell Royalty Partners owns mineral and royalty interests in over 17 million gross acres across 28 states, including more than 133,000 gross wells[27] - The total common units outstanding increased from 80,969,651 on December 31, 2024, to 93,396,488 on December 31, 2025[42]