Kimbell Royalty Partners Reports $25.9M Net Income and $84.2M Revenue in Q1 2025

Kimbell Royalty Partners, LP reported a net income of $25.9 million for the first quarter of 2025, a significant increase from $9.3 million in the same period last year. The partnership's total revenues reached $84.2 million, up from $82.2 million in the prior year, driven primarily by higher oil, natural gas, and NGL revenues, which totaled $90.0 million, compared to $87.5 million in Q1 2024. The increase in revenue was attributed to a rise in average prices for natural gas and NGLs, despite a decrease in production volumes.

The partnership's operational performance showed notable improvements, with operating income rising to $33.6 million from $17.6 million year-over-year. Total costs and expenses decreased significantly to $50.6 million from $64.7 million, largely due to lower depreciation and depletion expenses, which fell to $31.1 million from $38.2 million. The absence of impairment charges in the current quarter, compared to $6.0 million in the previous year, also contributed to the improved profitability.

Strategically, Kimbell Royalty Partners completed the acquisition of mineral and royalty interests from Boren Minerals on January 17, 2025, valued at approximately $230.4 million. This acquisition was financed through borrowings under its secured revolving credit facility and proceeds from a public equity offering that raised $163.6 million. The partnership's total assets increased to $1.33 billion as of March 31, 2025, up from $1.12 billion at the end of 2024, reflecting the impact of the acquisition.

In terms of operational metrics, Kimbell Royalty Partners reported production volumes of 2.3 million Boe for the quarter, a decrease from 2.5 million Boe in Q1 2024. The average daily production was 25,501 Boe, with oil production averaging $69.27 per barrel, natural gas at $3.87 per Mcf, and NGLs at $27.99 per barrel. The partnership's cash flow from operating activities was $54.2 million, down from $69.0 million in the previous year, while cash used in investing activities surged to $222.9 million, primarily due to the Boren acquisition.

Looking ahead, Kimbell Royalty Partners remains focused on growth through strategic acquisitions and optimizing its existing asset base. The partnership's management expressed confidence in its ability to navigate market volatility and capitalize on opportunities in the oil and gas sector. The board has declared a quarterly cash distribution of $0.47 per common unit, reflecting the partnership's commitment to returning value to its unitholders while maintaining a strong financial position.