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]

Core Insights - Kimbell Royalty Partners reported a strong operational performance with 88 active rigs, representing a 17% market share of the U.S. land rig count, despite a 7% decline in overall U.S. land rig activity [1][3][4] - The company announced a cash distribution of $0.38 per common unit for Q2 2025, reflecting a 10.3% annualized yield based on the closing price on August 6, 2025 [4][8] - Kimbell's financial results for Q2 2025 included total revenues of $86.5 million and net income of approximately $26.7 million, with a consolidated Adjusted EBITDA of $63.8 million [10][11][35] Operational Performance - The active rig count on Kimbell's acreage decreased by only 2% quarter over quarter, while the overall U.S. land rig count dropped by 7% [3] - The company experienced a 9% increase in net DUCs (drilled but uncompleted wells) quarter over quarter, primarily driven by the Permian Basin [3][8] - Kimbell's average daily production for Q2 2025 was 25,355 barrels of oil equivalent (Boe) per day, with approximately 47% from natural gas and 53% from liquids [16] Financial Highlights - Kimbell's Q2 2025 revenues from oil, natural gas, and NGLs totaled $74.7 million, with a net income attributable to common units of approximately $2.0 million [10][35] - The company reported cash G&A (general and administrative) expenses of $9.6 million, with cash G&A per BOE at $2.36, reflecting operational discipline [12][35] - As of June 30, 2025, Kimbell had approximately $462.1 million in debt, with a net debt to trailing twelve-month consolidated Adjusted EBITDA ratio of approximately 1.6x [13][36] Distribution and Debt Management - The Board of Directors approved a cash distribution payment of 75% of cash available for distribution for Q2 2025, amounting to $0.38 per common unit [6][33] - Kimbell plans to allocate the remaining 25% of cash available for distribution to pay down approximately $13.6 million of outstanding borrowings under its secured revolving credit facility [6][33] - The distribution is expected to be considered a return of capital, enhancing after-tax returns for unitholders [4][7]