Kimbell Royalty Partners reports Q2 EPS 2c vs. 11c last year

Reports Q2 revenue $86.5M, consensus $81.65M. Q2 run-rate average daily production was 25,355 Boe per day composed of approximately 47% from natural gas and 53% from liquids – 33% from oil and 20% from NGLs. CEO Robert Ravnaas commented, “Kimbell’s active rig count remains strong with our market share of U.S. land rigs actively drilling increasing by 1% to 17%. In addition, while the overall U.S. land rig count dropped by 7% quarter over quarter as operators, primarily in the Permian, slowed drilling activity, our overall rig count dropped by only 2% to 88 rigs actively drilling on our acreage. Notably, our rig count in the Permian Basin increased by four rigs and Haynesville increased by five rigs while the Mid-Con experienced a decline in drilling activity. Furthermore, our line-of-site wells continue to be well above the number of wells needed to maintain flat production, giving us confidence in the resilience of our production as we progress through 2025. More specifically, net DUCs increased by 9% quarter over quarter, led by the Permian Basin, which bodes well for near-term production contributions from this region. Finally, cash G&A per BOE was well below the low end of guidance reflecting operational discipline and positive operating leverage. “We are pleased to declare the Q2 2025 distribution of 38 cents per common unit, reflecting a 10.3% annualized tax advantaged yield based on Kimbell’s closing price on August 6, 2025. We estimate that approximately 100% of this distribution is expected to be considered return of capital and not subject to dividend taxes, further enhancing the after-tax return to our common unitholders.”