Kimbell Royalty Partners Announces Fourth Quarter and Full Year 2025 Results

Rhea-AI Summary

Kimbell Royalty Partners (NYSE: KRP) reported Q4 and full‑year 2025 results with run‑rate production of 25,627 Boe/d, Q4 revenues of $76.0 million and consolidated Adjusted EBITDA of $64.8 million. Proved developed reserves rose ~8% to ~72.9 MMBoe. The secured revolving credit facility was amended: borrowing base and commitments reaffirmed at $625 million, cost of bank debt lowered by 35 bps and maturity extended to Dec 16, 2030. Q4 cash distribution of $0.37 per common unit (75% payout) was declared.

Positive

• Run‑rate production of 25,627 Boe/d
• Proved developed reserves +8% to ~72.9 MMBoe
• Adjusted EBITDA of $64.8 million in Q4 2025
• Credit facility reaffirmed at $625 million, cost reduced 35 bps, maturity extended to Dec 16, 2030

Negative

• Net debt of $441.5 million (net debt / TTM Adjusted EBITDA ~1.5x)
• 75% payout ratio leaves 25% of cash available used for quarterly debt paydown, limiting reinvestment
• Q4 distribution largely return of capital, reducing unitholder tax basis

News Market Reaction – KRP

+2.62%

+2.62% Session close to close

In the Feb 26 session, KRP gained 2.62%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details Q4 and full-year 2025 performance, emphasizing run‑rate production of 25,6...

Analysis

This announcement details Q4 and full-year 2025 performance, emphasizing run‑rate production of 25,627 Boe/d, record proved developed reserves near 73 MMBoe, and a higher cash distribution of $0.37 per unit. Leverage remained moderate at 1.5x net debt to TTM Adjusted EBITDA with $441.5M drawn on the facility. Investors may focus on sustaining production within the 24–27 Mboe/d 2026 guidance band and ongoing debt paydown from retained cash flow.

Key Figures

Q4 2025 total revenues: $82.5M Q4 2025 net income: $24.8M Q4 2025 Adjusted EBITDA: $64.8M +5 more

8 metrics

Q4 2025 total revenues $82.5M Fourth quarter 2025 total revenues

Q4 2025 net income $24.8M Fourth quarter 2025 net income

Q4 2025 Adjusted EBITDA $64.8M Fourth quarter 2025 consolidated Adjusted EBITDA

Q4 2025 distribution $0.37 per unit Cash distribution, up 6% from Q3 2025

Run-rate production 25,627 Boe/d Q4 2025 run-rate daily production

Debt outstanding $441.5M Debt under secured revolving credit facility at Dec 31, 2025

Net debt / EBITDA 1.5x Net debt to TTM Adjusted EBITDA at Dec 31, 2025

Proved developed reserves 72,944 MBOE Net proved developed reserves at Dec 31, 2025

Previous Earnings Reports

5 past events · Latest: Nov 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	+0.3%	Q3 2025 production, EBITDA and distribution with low 1.6x leverage.
Aug 07	Q2 2025 earnings	Positive	-2.3%	Strong Q2 2025 production, revenues and EBITDA with high yield distribution.
May 08	Q1 2025 earnings	Positive	+7.6%	Record Q1 2025 revenues, EBITDA, production and higher distribution.
Feb 27	Q4 2024 earnings	Neutral	-3.5%	Record Q4 2024 production but net loss driven by non‑cash impairment.
Nov 07	Q3 2024 earnings	Positive	+2.8%	Q3 2024 production growth, strong EBITDA and double‑digit yield distribution.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings releases often coincide with modestly positive one-day moves, though there are instances of negative reactions even on strong operational updates.

Recent Company History

Across the last five earnings releases from Q3 2024 through Q3 2025, Kimbell consistently highlighted growing production, high active rig counts, and substantial cash distributions. Several quarters were described as “record” or “strong,” with Adjusted EBITDA typically above $60M and yields around 10–16%. Balance sheet leverage stayed low, often below 1.6x net debt to TTM EBITDA. Today’s Q4 2025 and full-year 2025 results continue this theme of scale, distributions, and conservative leverage.

Key Terms

adjusted ebitda, non-gaap, ducs, mcf, +3 more

7 terms

adjusted ebitda financial

"Q4 2025 consolidated Adjusted EBITDA of $64.8 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial

"consolidated Adjusted EBITDA was $64.8 million (consolidated Adjusted EBITDA is a non-GAAP financial measure."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

ducs technical

"had 7.09 net drilled but uncompleted wells ("DUCs") and net permitted locations on its acreage"

DUCs are oil or gas wells that have been drilled but not yet finished so they can produce; think of the hole and pipe being in place but the final equipment and steps to start flow haven’t been done. For investors, the DUC count is like a company’s inventory of nearly ready products — it signals how quickly production (and revenue) can be brought online, how much near-term capital spending may be needed, and how flexible supply plans are.

mcf technical

"average realized price per Bbl of oil was $58.24, per Mcf of natural gas was $2.86"

Mcf stands for thousand cubic feet and is a standard unit used to measure natural gas volume. For investors, Mcf translates physical gas production or consumption into a metric that directly affects revenue and valuation—think of it as counting liters of fuel your car used, where higher Mcf usually means more product to sell or higher costs to buy, and changes can signal shifts in supply, demand, or profitability.

mmbtu technical

"Average prices of $65.34 per barrel of oil and $3.39 per MMBtu of natural gas were used"

A MMBtu is a unit of energy equal to one million British thermal units, commonly used to measure natural gas and other fuel quantities for trading and contracts. For investors, it translates raw energy into a standardized price metric—think of it like gallons for gasoline—so changes in the MMBtu price affect producer revenues, utility costs, commodity derivatives, and the profitability of energy-related investments.

credit facility financial

"secured revolving credit facility through December 16, 2030, reaffirming borrowing base"

A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.

fixed price swaps financial

"Fixed Price Swaps as of December 31, 2025"

A fixed price swap is a financial contract where two parties agree to exchange payments: one side pays a set, unchanging price and the other pays a variable amount tied to a market rate or commodity price. Think of it as swapping a fluctuating electricity bill for a steady monthly charge; investors use these swaps to lock in costs or revenues, reduce exposure to price swings, and make future cash flows more predictable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Q4 2025 Run-Rate Daily Production of 25,627 Boe/d (6:1) Exceeds Mid-Point of Guidance

Activity on Acreage Remains Robust with 85 Active Rigs Drilling Representing 16%¹ Market Share of U.S. Land Rig Count

Superior Five-Year Annual Average PDP Decline Rate of 14% Requires Only an Estimated 6.8 Net Wells Annually to Maintain Flat Production Compared to 7.1 Net Line-of-Site Wells

Proved developed reserves increased by approximately 8% year-over-year to a record of nearly 73 Million Boe, reflecting continued development bolstered by acquired reserves

Borrowing Base and Elected Commitment on Secured Revolving Credit Facility Reaffirmed with Lowered Borrowing Costs and Maturity Extended Until December 2030

Announces Q4 2025 Cash Distribution of $0.37 per Common Unit, up 6% from Q3 2025

Initiates 2026 Operational Guidance with Production Guidance Range Unchanged from 2025, Reinforcing Stability of Production Base

FORT WORTH, Texas, Feb. 26, 2026 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and natural gas mineral and royalty interests in over 133,000 gross wells across 28 states, today announced financial and operating results for the quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Highlights

• Q4 2025 run-rate daily production of 25,627 barrels of oil equivalent ("Boe") per day (6:1)
• Q4 2025 oil, natural gas and NGL revenues of $76.0 million
• Q4 2025 net income of $24.8 million and net income attributable to common units of $19.2 million
• Q4 2025 consolidated Adjusted EBITDA of $64.8 million
• As of December 31, 2025, Kimbell's major properties² had 7.09 net drilled but uncompleted wells ("DUCs") and net permitted locations on its acreage (4.66 net DUCs and 2.43 net permitted locations) compared to an estimated 6.8 net wells needed to maintain flat production
• As of December 31, 2025, Kimbell had 85 rigs actively drilling on its acreage, representing 16% market share of all land rigs drilling in the continental United States as of such time
• Proved developed reserves increased by approximately 8% year-over-year to a record of nearly 73 million Boe, reflecting continued development bolstered by acquired reserves
• On December 16, 2025, Kimbell amended and extended its secured revolving credit facility through December 16, 2030, reaffirming borrowing base and elected commitments of $625 million and lowering its cost of bank debt financing by a combined 35 basis points
• Announced a Q4 2025 cash distribution of $0.37 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 10.5% annualized yield based on the February 25, 2026 closing price of $14.13 per common unit; Kimbell intends to utilize the remaining 25% of its cash available for distribution to repay a portion of the outstanding borrowings under its secured revolving credit facility
• Initiated full year 2026 guidance with estimated daily production at its mid-point projected at 25,500 Boe/d for the year with a high-end projection of 27,000 Boe/d and low-end projection of 24,000 Boe/d; unchanged from 2025 production guidance range

Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty GP, LLC, Kimbell's general partner (the "General Partner"), commented: "2025 was another outstanding year for Kimbell.  In Q1 2025, we closed the $230 million acquisition of mineral and royalty interests in properties located under the historic Mabee Ranch in the Midland Basin, further bolstering the Permian Basin as our leading basin in terms of production, active rig count, DUCs, permits and undrilled inventory.  In Q2 2025, we redeemed 50% of the Series A Cumulative Convertible Preferred Units, further simplifying our capital structure and lowering our cost of capital.  During the year, we paid out $1.60 per common unit in quarterly distributions, 100% of which was considered return of capital and not subject to dividend income taxes.  We paid down approximately $57.4 million on our credit facility during 2025 by allocating 25% of cash available for distribution for debt paydown.  Finally, proved developed reserves increased by approximately 8% to a record of nearly 73 million Boe. 

"I am also pleased to report that Q4 2025 production grew organically from Q3 2025 and exceeded the mid-point of guidance.  Furthermore, today we are initiating 2026 operational guidance with production guidance at the upper and lower bands, as well as the midpoint, unchanged from our 2025 guidance range, which reflects the ongoing development, diversity and stability of our production base.  Activity on our acreage remains robust with 85 rigs actively drilling on our acreage, representing 16.1% market share of all rigs drilling in the lower 48.  Line-of-site wells continue to exceed maintenance level, giving us confidence in the resilience of production as we progress through 2026.

"2025 was a year of major milestones in the public oil and natural gas royalty sector, with significant M&A across our U.S. peer group.  As evidenced by our track record of ongoing acquisition activity, we expect to continue our role as a major consolidator in the highly fragmented U.S. oil and natural gas royalty sector, which we estimate to be over $650 billion in size.  We believe that we are still in the early stages of this consolidation and will actively seek out targets that fit within our acquisition profile.  We are very excited about the opportunities to expand in the future and to deliver unitholder value for years to come."

1 Based on Kimbell rig count of 85 and Baker Hughes U.S. land rig count of 527 as of December 31, 2025.
2 These figures pertain only to Kimbell's major properties and do not include possible additional DUCs and permits from Kimbell's minor properties, which generally have a net revenue interest of 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell's net inventory.

Fourth Quarter 2025 Distribution and Debt Repayment

Today, the Board of Directors of the General Partner (the "Board of Directors") approved a cash distribution payment to common unitholders of 75% of cash available for distribution for the fourth quarter of 2025, or $0.37 per common unit.  The distribution will be payable on March 25, 2026 to common unitholders of record at the close of business on March 18, 2026.  Kimbell plans to utilize the remaining 25% of cash available for distribution for the fourth quarter of 2025 to pay down approximately $13.4 million of the outstanding borrowings under its secured revolving credit facility.

Kimbell expects that approximately 100% of its fourth quarter 2025 distribution should not constitute dividends for U.S. federal income tax purposes, but instead are estimated to constitute non-taxable reductions to the basis of each distribution recipient's ownership interest in Kimbell common units.  The reduced tax basis will increase unitholders' capital gain (or decrease unitholders' capital loss) when unitholders sell their common units.  The Form 8937 containing additional information may be found at www.kimbellrp.com under "Investor Relations" section of the site.  Kimbell currently believes that the portion that constitutes dividends for U.S. federal income tax purposes will be considered qualified dividends, subject to holding period and certain other conditions, which are subject to a tax rate of 0%, 15% or 20% depending on the income level and tax filing status of a unitholder for 2026.  Kimbell believes these estimates are reasonable based on currently available information, but they are subject to change.

Financial Highlights

Kimbell's fourth quarter 2025 average realized price per Bbl of oil was $58.24, per Mcf of natural gas was $2.86, per Bbl of NGLs was $19.68 and per Boe combined was $30.59.

During the fourth quarter of 2025, the Company's total revenues were $82.5 million, net income was $24.8 million and net income attributable to common units was approximately $19.2 million, or $0.21 per common unit.

Total fourth quarter 2025 consolidated Adjusted EBITDA was $64.8 million (consolidated Adjusted EBITDA is a non-GAAP financial measure. Please see a reconciliation to the nearest GAAP financial measures at the end of this news release). 

In the fourth quarter of 2025, G&A expense was $10.4 million, $6.2 million of which was Cash G&A expense, or $2.63 per BOE (Cash G&A and Cash G&A per Boe are non-GAAP financial measures.  Please see definition under Non-GAAP Financial Measures in the Supplemental Schedules included in this news release).  Unit-based compensation in the fourth quarter of 2025, which is a non-cash G&A expense, was $4.2 million or $1.77 per Boe.

On December 16, 2025, Kimbell amended its existing credit agreement to, among other things, reaffirm borrowing base and elected commitments of $625 million, lower its cost of bank debt financing by a combined 35 basis points (reduced pricing grid by 25 basis points and removed 10 basis point Credit Spread Adjustment) and extend the maturity to December 16, 2030.

As of December 31, 2025, Kimbell had approximately $441.5 million in debt outstanding under its secured revolving credit facility, had net debt to fourth quarter 2025 trailing twelve month consolidated Adjusted EBITDA of approximately 1.5x and was in compliance with all financial covenants under its secured revolving credit facility.   Kimbell had approximately $183.5 million in undrawn capacity under its secured revolving credit facility as of December 31, 2025.

As of December 31, 2025, Kimbell had outstanding 93,396,488 common units and 14,491,540 Class B units.  As of February 26, 2026, Kimbell had outstanding 94,613,478 common units and 14,491,540 Class B units.

Production

Fourth quarter 2025 average daily production was 26,643 Boe per day (6:1), which consisted of 1,016 Boe per day related to prior period production recognized in Q4 2025, and 25,627 Boe per day of run-rate production.  The 25,627 Boe per day of run-rate production was composed of approximately 48% from natural gas (6:1) and approximately 52% from liquids (31% from oil and 21% from NGLs).  The prior period production recognized in Q4 2025 was attributable to past production that came into pay status during the fourth quarter of 2025.

Operational Update

As of December 31, 2025, Kimbell's major properties had 900 gross (4.66 net) DUCs and 628 gross (2.43 net) permitted locations on its acreage.  In addition, as of December 31, 2025, Kimbell had 85 rigs actively drilling on its acreage, which represents an approximate 16.1% market share of all land rigs drilling in the continental United States as of such time.

Basin	Gross DUCs as of December 31, 2025(1)	Gross Permits as of December 31, 2025(1)	Net DUCs as of December 31, 2025(1)	Net Permits as of December 31, 2025(1)
Permian	660	393	3.53	1.63
Eagle Ford	29	25	0.16	0.09
Haynesville	62	27	0.34	0.18
Mid-Continent	96	57	0.40	0.34
Bakken	39	116	0.17	0.13
Appalachia	6	4	0.02	0.04
Rockies	8	6	0.04	0.02
Total	900	628	4.66	2.43

(1)  These figures pertain only to Kimbell's major properties and do not include possible additional DUCs and permits from Kimbell's minor properties, which generally have a net revenue interest of 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell's net inventory.

Reserves

Ryder Scott Company, L.P. prepared an estimate of Kimbell's proved reserves as of December 31, 2025.   Average prices of $65.34 per barrel of oil and $3.39 per MMBtu of natural gas were used in accordance with applicable rules of the Securities and Exchange Commission (the "SEC").  Realized prices with applicable differentials were $63.88 per barrel of oil, $2.41 per Mcf of natural gas and $19.17 per barrel of NGLs.

Proved developed reserves at year-end 2025 increased by approximately 8% year-over-year to nearly 73 MMBoe, reflecting continued development by the operators of Kimbell's acreage and acquisition activity.

		Crude Oil and Condensate (MBbls)		Natural Gas (MMcf)		Natural Gas Liquids (MBbls)		Total (MBOE)
Net proved developed reserves at December 31, 2024		20,001		204,253		13,498		67,541
	Revisions of previous estimates	2,795		30,045		2,408		10,211
	Purchases of minerals in place	2,236		6,025		1,355		4,595
	Production	(3,062)		(26,734)		(1,885)		(9,403)
Net proved developed reserves at December 31, 2025		21,970		213,589		15,376		72,944

Hedging Update

The following provides information concerning Kimbell's hedge book as of December 31, 2025:

Fixed Price Swaps as of December 31, 2025
			Weighted Average
	Volumes		Fixed Price
	Oil	Nat Gas	Oil	Nat Gas
	BBL	MMBTU	$/BBL	$/MMBTU
1Q 2026	146,880	1,296,000	$  70.38	$         4.07
2Q 2026	148,512	1,310,400	$  70.78	$         3.33
3Q 2026	150,144	1,324,800	$  66.60	$         3.42
4Q 2026	150,144	1,324,800	$  63.33	$         3.94
1Q 2027	151,470	1,321,920	$  63.75	$         4.46
2Q 2027	153,153	1,336,608	$  61.57	$         3.47
3Q 2027	154,836	1,351,296	$  61.90	$         3.76
4Q 2027	154,836	1,351,296	$  58.06	$         4.02

Company Initiates 2026 Guidance

Kimbell is providing financial and operational guidance ranges for 2026 as follows:

		Kimbell Royalty
		Partners LP
2026
Net Production - Mboe/d (6:1)		24.0	-	27.0
Oil Production - % of Net Production		30 %	-	34 %
Natural Gas Production - % of Net Production		46 %	-	50 %
Natural Gas Liquids Production - % of Net Production		18 %	-	22 %
Unit Costs ($/boe)
Marketing and other deductions		$1.40	-	$2.20
Depreciation and depletion expense		$13.00	-	$20.00
G&A
Cash G&A		$2.45	-	$2.65
Non-Cash G&A		$1.40	-	$1.80
Production and ad valorem taxes - % of Oil, Natural Gas and NGL Revenues		6.0 %	-	8.0 %
Payout Ratio (1)			75 %

(1)  The Company intends to pay out 75% of its projected cash available for distribution in quarterly distributions and utilize 25% of projected cash available for distribution to pay down a portion of the outstanding borrowings under its secured revolving credit facility each quarter.

Conference Call

Kimbell Royalty Partners will host a conference call and webcast today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss fourth quarter 2025 results.  To access the call live by phone, dial 201-389-0869 and ask for the Kimbell Royalty Partners call at least 10 minutes prior to the start time.  A telephonic replay will be available through March 5, 2026 by dialing 201-612-7415 and using the conference ID 13752272#.  A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under the Events and Presentations tab. 

Presentation

On February 26, 2026, Kimbell posted an updated investor presentation on its website.  The presentation may be found at http://kimbellrp.investorroom.com under the Events and Presentations tab.  Information on Kimbell's website does not constitute a portion of this news release.

About Kimbell Royalty Partners, LP

Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas.  Kimbell owns mineral and royalty interests in over 17 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 133,000 gross wells.  To learn more, visit http://www.kimbellrp.com.

Forward-Looking Statements

This news release includes forward-looking statements, in particular statements relating to Kimbell's financial, operating and production results and prospects for growth (including financial and operational guidance), drilling inventory, growth potential, identified locations and all other estimates and predictions resulting from Kimbell's portfolio review, the tax treatment of Kimbell's distributions, changes in Kimbell's capital structure, future natural gas and other commodity prices and changes to supply and demand for oil, natural gas and NGLs. These and other forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of acquisitions are not realized and uncertainties relating to Kimbell's business, prospects for growth and acquisitions and the securities markets generally, as well as risks inherent in oil and natural gas drilling and production activities, including risks with respect to potential declines in prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause operators to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow, risks relating to the impairment of oil and natural gas properties, risk related to changes in U.S. trade policy and the impact of tariffs, risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and natural gas prices, risks relating to Kimbell's ability to meet financial covenants under its credit agreement or its ability to obtain amendments or waivers to effect such compliance, risks relating to Kimbell's hedging activities, risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations, risks relating to delays in receipt of drilling permits, risks relating to unexpected adverse developments in the status of properties, risks relating to borrowing base redeterminations by Kimbell's lenders, risks relating to the absence or delay in receipt of government approvals or third-party consents, risks relating to acquisitions, dispositions and drop downs of assets, risks relating to Kimbell's ability to realize the anticipated benefits from and to integrate acquired assets, including the Acquired Production, risks relating to tax matters and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Except as required by law, Kimbell undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Kimbell's filings with the SEC.

Contact:

Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600

– Financial statements follow –

Kimbell Royalty Partners, LP
Condensed Consolidated Balance Sheet
(Unaudited, in thousands)
	December 31,
	2025
Assets:
Current assets
Cash and cash equivalents	$	43,977
Oil, natural gas and NGL receivables		36,582
Derivative assets		6,504
Accounts receivable and other current assets		1,420
Total current assets		88,483
Property and equipment, net		629
Oil and natural gas properties
Oil and natural gas properties (full cost method)		2,271,470
Less: accumulated depreciation, depletion and impairment		(1,148,157)
Total oil and natural gas properties, net		1,123,313
Right-of-use assets, net		4,606
Derivative assets		2,587
Loan origination costs, net		9,722
Total assets	$	1,229,340
Liabilities, mezzanine equity and unitholders' equity:
Current liabilities
Accounts payable	$	3,144
Other current liabilities		7,097
Total current liabilities		10,241
Operating lease liabilities, excluding current portion		4,411
Derivative liabilities		28
Long-term debt		441,500
Total liabilities		456,180
Commitments and contingencies
Mezzanine equity:
Series A preferred units		158,793
Kimbell Royalty Partners, LP unitholders' equity:
Common units		531,121
Class B units		724
Total Kimbell Royalty Partners, LP unitholders' equity		531,845
Non-controlling interest in OpCo		82,522
Total unitholders' equity		614,367
Total liabilities, mezzanine equity and unitholders' equity	$	1,229,340

 

Kimbell Royalty Partners, LP
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per-unit data and unit counts)
	Three Months Ended			Three Months Ended
	December 31, 2025			December 31, 2024
Revenue
Oil, natural gas and NGL revenues	$	76,020		$	69,078
Lease bonus and other income		1,062			1,785
Gain (loss) on commodity derivative instruments, net		5,371			(4,148)
Total revenues		82,453			66,715
Costs and expenses
Production and ad valorem taxes		3,738			3,951
Depreciation and depletion expense		31,935			31,777
Impairment of oil and natural gas properties		—			56,155
Marketing and other deductions		3,780			4,124
General and administrative expense		10,381			9,371
Total costs and expenses		49,834			105,378
Operating income (loss)		32,619			(38,663)
Other expense
Interest expense		(9,119)			(5,956)
Net income (loss) before income taxes		23,500			(44,619)
Income benefit expense		(1,304)			(5,360)
Net income (loss)		24,804			(39,259)
Distribution and accretion on Series A preferred units		(2,656)			(5,296)
Net (income) loss attributable to non-controlling interests		(2,975)			6,777
Distributions to Class B unitholders		(14)			(15)
Net income (loss) attributable to common units of Kimbell Royalty Partners, LP	$	19,159		$	(37,793)
Basic	$	0.21		$	(0.48)
Diluted	$	0.21		$	(0.48)
Weighted average number of common units outstanding
Basic		91,170,092			78,977,450
Diluted		118,058,116			116,184,780

 

Kimbell Royalty Partners, LP
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per-unit data and unit counts)
	Year Ended			Year Ended
	December 31, 2025			December 31, 2024
Revenue
Oil, natural gas and NGL revenues	$	317,473		$	304,606
Lease bonus and other income		4,266			6,046
Gain (loss) on commodity derivative instruments, net		12,091			(1,345)
Total revenues		333,830			309,307
Costs and expenses
Production and ad valorem taxes		20,440			20,406
Depreciation and depletion expense		124,554			135,123
Impairment of oil and natural gas properties		—			62,119
Marketing and other deductions		16,350			16,122
General and administrative expense		39,657			38,543
Total costs and expenses		201,001			272,313
Operating income		132,829			36,994
Other expense
Interest expense		(34,470)			(26,696)
Other expense		(12)			—
Net income before income taxes		98,347			10,298
Income tax benefit		(1,304)			(772)
Net income		99,651			11,070
Distribution and accretion on Series A preferred units		(34,852)			(21,092)
Net (income) loss attributable to non-controlling interests		(8,704)			1,254
Distributions on Class B units		(58)			(71)
Net income (loss) attributable to common units of Kimbell Royalty Partners, LP	$	56,037		$	(8,839)
Basic	$	0.62		$	(0.12)
Diluted	$	0.62		$	(0.12)
Weighted average number of common units outstanding
Basic		90,803,175			76,240,472
Diluted		121,307,159			116,048,650

Kimbell Royalty Partners, LP
Supplemental Schedules

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA, Cash G&A and Cash G&A per Boe are used as supplemental non-GAAP financial measures by management and external users of Kimbell's financial statements, such as industry analysts, investors, lenders and rating agencies.  Kimbell believes Adjusted EBITDA is useful because it allows us to more effectively evaluate Kimbell's operating performance and compare the results of Kimbell's operations period to period without regard to its financing methods or capital structure.  In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to Kimbell's unitholders.  Kimbell defines Adjusted EBITDA as net income (loss), net of depreciation and depletion expense, interest expense, income taxes, impairment of oil and natural gas properties, non-cash unit based compensation, unrealized gains and losses on derivative instruments.  Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP.  Kimbell excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within Kimbell's industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.  Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as historic costs of depreciable assets, none of which are components of Adjusted EBITDA.  Adjusted EBITDA should not be considered an alternative to net income, oil, natural gas and natural gas liquids revenues, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.  Kimbell's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.  Kimbell expects that cash available for distribution for each quarter will generally equal its Adjusted EBITDA for the quarter, less cash needed for debt service and other contractual obligations, tax obligations, and fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate.

Kimbell believes Cash G&A and Cash G&A per Boe are useful metrics because they isolate cash costs within overall G&A expense and measure cash costs relative to overall production, which is a widely utilized metric to evaluate operational performance within the energy sector.  Cash G&A is defined as general and administrative expenses less unit-based compensation expense.  Cash G&A per Boe is defined as Cash G&A divided by total production for a period.  Cash G&A should not be considered an alternative to G&A expense presented in accordance with GAAP. Kimbell's computations of Cash G&A and Cash G&A per Boe may not be comparable to other similarly titled measures of other companies.

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands)
	Three Months Ended			Three Months Ended
	December 31, 2025			December 31, 2024
Reconciliation of net cash provided by operating activities
to Adjusted EBITDA and cash available for distribution
Net cash provided by operating activities	$	57,226		$	56,571
Interest expense		9,119			5,956
Income benefit expense		(1,304)			(5,360)
Impairment of oil and natural gas properties		—			(56,155)
Amortization of right-of-use assets		(89)			(89)
Amortization of loan origination costs		(613)			(534)
Unit-based compensation		(4,170)			(3,763)
Gain (loss) on derivative instruments, net of settlements		3,899			(6,744)
Changes in operating assets and liabilities:
Oil, natural gas and NGL receivables		(4,671)			(3,051)
Accounts receivable and other current assets		(1,089)			1,101
Accounts payable		1,358			360
Other current liabilities		4,806			4,723
Operating lease liabilities		82			99
Consolidated EBITDA	$	64,554		$	(6,886)
Add:
Impairment of oil and natural gas properties		—			56,155
Unit-based compensation		4,170			3,763
(Gain) loss on derivative instruments, net of settlements		(3,899)			6,744
Consolidated Adjusted EBITDA	$	64,825		$	59,776
Adjusted EBITDA attributable to non-controlling interest		(8,708)			(9,092)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP	$	56,117		$	50,684
Adjustments to reconcile Adjusted EBITDA to cash available
for distribution
Less:
Cash interest expense		9,470			5,011
Cash distribution to Series A preferred unitholders		2,128			4,156
Cash income tax benefit		(2,331)			—
Distribution to Class B unitholders		14			15
Cash available for distribution on common units	$	46,836		$	41,502

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands, except for per-unit data and unit counts)
	Three Months Ended
	December 31, 2025
Net income	$	24,804
Depreciation and depletion expense		31,935
Interest expense		9,119
Income tax benefit		(1,304)
Consolidated EBITDA	$	64,554
Unit-based compensation		4,170
Gain on derivative instruments, net of settlements		(3,899)
Consolidated Adjusted EBITDA	$	64,825
Adjusted EBITDA attributable to non-controlling interest		(8,708)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP	$	56,117
Adjustments to reconcile Adjusted EBITDA to cash available
for distribution
Less:
Cash interest expense		9,470
Cash distribution to Series A preferred unitholders		2,128
Cash income tax benefit		(2,331)
Distribution to Class B unitholders		14
Cash available for distribution on common units	$	46,836
Common units outstanding on December 31, 2025		93,396,488
Common units outstanding on March 18, 2026 Record Date		94,613,478
Cash available for distribution per common unit outstanding	$	0.50
Fourth quarter 2025 distribution declared (1)	$	0.37

(1)  The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility.

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands, except for per-unit data and unit counts)
	Three Months Ended
	December 31, 2024
Net loss	$	(39,259)
Depreciation and depletion expense		31,777
Interest expense		5,956
Income tax benefit		(5,360)
Consolidated EBITDA	$	(6,886)
Impairment of oil and natural gas properties		56,155
Unit-based compensation		3,763
Loss on derivative instruments, net of settlements		6,744
Consolidated Adjusted EBITDA	$	59,776
Adjusted EBITDA attributable to non-controlling interest		(9,092)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP	$	50,684
Adjustments to reconcile Adjusted EBITDA to cash available
for distribution
Less:
Cash interest expense		5,011
Cash distribution to Series A preferred unitholders		4,156
Distribution to Class B unitholders		15
Cash available for distribution on common units	$	41,502
Common units outstanding on December 31, 2024		80,969,651
Common units outstanding on March 18, 2025 Record Date		93,715,842
Cash available for distribution per common unit outstanding	$	0.44
Fourth quarter 2024 distribution declared (1)	$	0.40

(1)  The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility.  Additionally, Kimbell utilized approximately $8.2 million of cash flows expected to be received from the Q1 2025 Acquired Production after the effective date of October 1, 2024, through December 31, 2024, to pay outstanding borrowings under its credit facility and to distribute the additional cash flows to common unitholders.  Revenues, production and other financial and operating results from the Q1 2025 acquisition will be reflected in Kimbell's condensed consolidated financial statements from January 17, 2025 onward.

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands)
	Three Months Ended
	December 31, 2025
Net income	$	24,804
Depreciation and depletion expense		31,935
Interest expense		9,119
Income tax benefit		(1,304)
Consolidated EBITDA	$	64,554
Unit-based compensation		4,170
Gain on derivative instruments, net of settlements		(3,899)
Consolidated Adjusted EBITDA	$	64,825
Q1 2025 - Q3 2025 Consolidated Adjusted EBITDA (1)		203,233
Trailing Twelve Month Consolidated Adjusted EBITDA	$	268,058
Long-term debt (as of 12/31/25)		441,500
Cash and cash equivalents (as of 12/31/25)		(43,977)
Net debt (as of 12/31/25)	$	397,523
Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA		1.5x

(1)  Consolidated Adjusted EBITDA for each of the quarters ended March 31, 2025, June 30, 2025 and September 30, 2025 was previously reported in a news release relating to the applicable quarter, and the reconciliation of net income to consolidated Adjusted EBITDA for each quarter is included in the applicable news release.  This also includes the trailing twelve months pro forma results from the Q1 2025 acquisition that closed in January 2025 in accordance with Kimbell's secured revolving credit facility.

 

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SOURCE Kimbell Royalty Partners, LP

FAQ

What did KRP report for Q4 2025 run‑rate production and how does it compare to guidance?

KRP reported run‑rate production of 25,627 Boe/d, which exceeded the mid‑point of its guidance. According to the company, Q4 run‑rate production outpaced the guidance midpoint and grew organically from Q3 2025, supporting stable 2026 guidance ranges.

How much did KRP's proved developed reserves change in 2025 and what is the year‑end figure?

Proved developed reserves increased by approximately 8% to ~72.94 MMBoe at year‑end 2025. According to the company, the gain reflects ongoing development activity and acquisitions, with Ryder Scott preparing the year‑end reserve estimate using SEC pricing.

What changes were made to KRP's secured revolving credit facility on December 16, 2025?

KRP reaffirmed a $625 million borrowing base and elected commitment, lowered bank debt cost by 35 basis points, and extended maturity to Dec 16, 2030. According to the company, the amendment improved financing costs and extended tenor through 2030.

What is KRP's Q4 2025 cash distribution and how will cash available for distribution be allocated?

KRP declared a Q4 cash distribution of $0.37 per common unit, equivalent to a 75% payout ratio. According to the company, the remaining 25% of cash available for distribution will be used to pay down outstanding borrowings under its secured revolving credit facility.

What is KRP's 2026 production guidance and unit cost guidance ranges?

KRP initiated 2026 guidance with production ranging from 24,000 to 27,000 Boe/d, midpoint 25,500 Boe/d. According to the company, unit cost guidance includes Cash G&A $2.45–$2.65/BoE and depletion $13.00–$20.00/BoE.