Kimbell Royalty Partners Announces Fourth Quarter and Full Year 2025 Results

Core Insights - Kimbell Royalty Partners reported strong financial and operational results for Q4 2025, with a run-rate daily production of 25,627 Boe/d, exceeding guidance [1][2] - The company announced a cash distribution of $0.37 per common unit for Q4 2025, reflecting a 6% increase from Q3 2025 [1][2] - Proved developed reserves increased by approximately 8% year-over-year to nearly 73 million Boe, supported by ongoing development and acquisitions [1][3] Financial Performance - Q4 2025 total revenues were $82.5 million, with net income of $24.8 million and net income attributable to common units of approximately $19.2 million [2][4] - The average realized price per barrel of oil was $58.24, while natural gas and NGLs were $2.86 and $19.68, respectively [2][4] - Consolidated Adjusted EBITDA for Q4 2025 was $64.8 million, with a payout ratio of 75% of cash available for distribution [2][5] Operational Highlights - As of December 31, 2025, Kimbell had 85 active rigs drilling, representing a 16% market share of U.S. land rigs [1][2] - The company had 900 gross DUCs and 628 gross permitted locations on its acreage, indicating robust operational activity [2][3] - Kimbell's major properties had 7.09 net DUCs and net permitted locations, compared to an estimated 6.8 net wells needed to maintain flat production [1][2] Debt and Credit Facility - Kimbell amended its secured revolving credit facility, reaffirming a borrowing base of $625 million and extending maturity to December 2030 [1][2] - The company reduced its cost of bank debt financing by 35 basis points [1][2] - 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 [2][6] Future Guidance - Kimbell initiated 2026 operational guidance with estimated daily production projected at a midpoint of 25,500 Boe/d, unchanged from 2025 [1][3] - The company plans to maintain a payout ratio of 75% of projected cash available for distribution while utilizing 25% for debt repayment [3][5] - Kimbell expects to continue its role as a consolidator in the fragmented U.S. oil and natural gas royalty sector, which is estimated to be over $650 billion in size [1][3]