Executive Summary

Q2 2025 was steady operationally with run-rate production of 25,355 Boe/d and 88 active rigs (c.17% U.S. land rig share), while cash G&A/boe improved to $2.36, below the low end of guidance .
Financially, GAAP total revenues were $86.5M and net income was $26.7M; net income attributable to common units was $2.0M ($0.02 per unit) as higher preferred accretion/distribution reduced common EPS .
Versus S&P Global consensus, Revenue missed ($81.65M est. vs $76.91M actual*), EPS materially missed ($0.19 est. vs -$0.02 actual*), while EBITDA slightly beat ($66.1M est. vs $67.94M actual*); note S&P revenue excludes derivative gains and S&P EPS differs from the company’s $0.02 diluted EPS .
Guidance was reaffirmed for FY25 (production 24–27 Mboe/d; cash G&A $2.45–$2.65/boe; prod. taxes 7–9% of commodity revenue), and distribution set at $0.38 with 75% payout and 25% retained for debt paydown .

What Went Well and What Went Wrong

What Went Well

Cost discipline: Cash G&A/boe fell to $2.36, below the low end of FY25 guidance, reflecting “operational discipline and positive operating leverage” .
Activity resiliency: Market share of U.S. land rigs rose to ~17% despite a 7% QoQ industry rig decline; KRP rigs dipped only 2% to 88, with adds in Permian (+4) and Haynesville (+5) .
Near-term line of sight: Net DUCs increased 9% QoQ (to 5.10 net), with total line-of-sight wells well above maintenance levels (7.99 net vs ~6.5 required), supporting production resiliency into 2H25 .

What Went Wrong

Headline EPS miss vs consensus: S&P “Primary EPS” registered -$0.02 vs $0.19 consensus*, despite company-reported diluted EPS of $0.02; the discrepancy likely reflects S&P methodology and preferred distributions/accretion impacting “primary EPS” .
Commodity price headwinds: Realized prices stepped down QoQ (oil $63.48/bbl, gas $2.54/mcf, NGLs $24.10/bbl vs Q1 oil $70.34, gas $3.68, NGLs $26.02), weighing on commodity revenues .
Leverage higher on preferred actions and revolver draws: Net debt/TTM consolidated Adj. EBITDA moved to ~1.6x from 0.9x in Q1 following the partial preferred redemption and revolver changes, though liquidity remains solid .

Financial Results

P&L trends (GAAP and key components)

Metric	Q2 2024	Q1 2025	Q2 2025
Total Revenues ($M)	$76.57	$84.21	$86.55
Oil, Natural Gas & NGL Revenues ($M)	$76.96	$89.95	$74.70
Lease Bonus & Other Income ($M)	$0.66	$0.31	$2.51
Derivative Gain (Loss), Net ($M)	$(1.05)	$(6.05)	$9.34
Net Income ($M)	$15.19	$25.85	$26.67
Net Income Attrib. to Common ($M)	$8.41	$17.86	$2.01
Diluted EPS ($/unit)	$0.11	$0.20	$0.02
Consolidated Adjusted EBITDA ($M)	$65.82	$75.53	$63.84
Adj. EBITDA Attrib. to KRP ($M)	$55.81	$65.39	$55.27

Consensus vs Actuals (S&P Global framework)

Metric (S&P definition)	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($)	81,647,300*	76,908,808*
Primary EPS ($)	0.19*	-0.0226*
EBITDA ($)	66,102,120*	67,944,173*

Values marked with * retrieved from S&P Global.

Pricing and mix

Realized Prices	Q2 2024	Q1 2025	Q2 2025
Oil ($/Bbl)	$69.35	$70.34	$63.48
Gas ($/Mcf)	$1.88	$3.68	$2.54
NGL ($/Bbl)	$21.47	$26.02	$24.10
Boe Combined ($/Boe)	$31.04	$38.61	$33.04

KPIs and operating metrics

KPI	Q4 2024	Q1 2025	Q2 2025
Run-Rate Production (Boe/d)	25,946 (incl. acquired)	25,841 (incl. acquired)	25,355
Mix: Gas / Liquids	50% / 50%	48% / 52%	47% / 53%
Active Rigs on KRP Acreage	91 (incl. acquired)	90	88
Market Share of U.S. Land Rigs	~16%	~16%	~17%
Net DUCs / Net Permits (Major)	5.44 / 2.63	4.67 / 3.43	5.10 / 2.89
Cash G&A ($/Boe)	2.53 (Q4’24)	2.52	2.36
Cash Available for Distribution ($M)	41.50 (Q4’24)	57.16	47.12
Distribution/Unit ($)	0.40 (Q4’24)	0.47	0.38
Net Debt / TTM Consol. Adj. EBITDA (x)	0.8x (Q4’24)	0.9x	1.6x

Guidance Changes

Metric	Period	Previous Guidance	Current (Q2 2025)	Change
Net Production (Mboe/d, 6:1)	FY 2025	24.0 – 27.0 (initiated 2/27)	Affirmed	Maintained
Oil % of Net Production	FY 2025	31% – 35%	Affirmed	Maintained
Gas % of Net Production	FY 2025	46% – 50%	Affirmed	Maintained
NGL % of Net Production	FY 2025	17% – 21%	Affirmed	Maintained
Marketing & Other Deductions ($/boe)	FY 2025	$1.40 – $2.20	Affirmed	Maintained
DD&A ($/boe)	FY 2025	$13.00 – $20.00	Affirmed	Maintained
Cash G&A ($/boe)	FY 2025	$2.45 – $2.65	Affirmed	Maintained
Non-Cash G&A ($/boe)	FY 2025	$1.40 – $1.80	Affirmed	Maintained
Prod. & Ad Valorem Taxes (% of commodity revenue)	FY 2025	7% – 9%	Affirmed	Maintained
Payout Ratio	FY 2025	75% (with 25% to debt paydown)	Affirmed	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Rig activity and market share	~16% market share; 91 rigs incl. acquired (Q4’24). 90 rigs at Q1; guidance affirmed .	88 rigs, ~17% share; Permian +4, Haynesville +5 vs industry -7% rigs QoQ	Share resilient; rigs modestly lower QoQ
Line-of-sight wells vs maintenance	Q4’24: 8.07 net line-of-sight vs ~6.5 needed ; Q1’25: 8.10 vs ~6.5 .	Q2’25: 7.99 vs ~6.5; net DUCs +9% QoQ	Ample cushion; DUC build supportive
Cost discipline (Cash G&A/boe)	Q4’24: $2.53; Q1’25: $2.52 .	$2.36, below low end; target low end for year (mgmt)	Improving, guided low end
M&A and operator partnerships	Active consolidator; core Midland deal closed in Jan; flexibility to grow .	Partnerships are optional; focus on sub-$500M deals; Permian sell-side slowing; valuations adjusting	Opportunistic; disciplined
Gas vs oil mix outlook	Mix ~50/50; natural gas interest building (Q1) .	Expect potentially “slightly gassier” mix if gas outperforms; mix lumpy	Gradual tilt to gas possible
Capital structure & liquidity	Borrowing base to $625M (May 1); partial preferred redemption (May 7) .	ND/TTM Adj. EBITDA ~1.6x; $163M undrawn; disciplined	Higher leverage but manageable

Management Commentary

“Kimbell’s active rig count remains strong…market share…increasing by 1% to 17%…overall U.S. land rig count dropped by 7% QoQ…our rig count dropped by only 2%…Permian +4 rigs and Haynesville +5 rigs…cash G&A per BOE was well below the low end of guidance” — Robert Ravnaas, CEO .
“Oil, natural gas and NGL revenues totaled $75,000,000…run rate production was 25,355 Boe/d…G&A $9.6 million of which $5.4 million cash…total consolidated Adjusted EBITDA $63.8 million…distribution of $0.38 per common unit…approximately 100%…return of capital” — R. Davis Ravnaas, President & CFO .
“We continue to see an incredible opportunity set for M&A, particularly for deals under $500,000,000…an operating partnership…if it makes sense…would be a wonderful thing” — R. Davis Ravnaas .
“We would expect a slightly gassier mix…going forward [but] nothing quite yet…really noteworthy” — R. Davis Ravnaas .
“Cash G&A/boe was mainly due to lower professional fees…for the rest of the year…target…lower end of guidance (~$2.45/boe)” — Matthew Daly, COO .

Q&A Highlights

Consolidation and partnerships: Management keeps operator partnership as an option but not a priority; focus remains on sub-$500M accretive minerals deals where KRP has a track record across basins .
Basin exposure and opportunity set: Permian dominated recent deal flow due to private equity exits; current sell-side activity has slowed amid lower oil prices; Haynesville packages have been priced high; KRP remains basin-agnostic and disciplined on valuation .
Gas trajectory and mix: Gas activity stepped up on KRP acreage; production can be lumpy by quarter, and a incremental tilt toward gas is possible if relative pricing remains favorable .
G&A cadence: Q2 cash G&A benefit was largely lower professional fees; for modeling, use the low end of annual guidance (~$2.45/boe) for the remainder of 2025 .

Estimates Context

Revenue missed S&P consensus: $81.65M est. vs $76.91M actual*, noting S&P excludes derivative gains (company GAAP total revenues were $86.55M) .
EPS missed materially: $0.19 est. vs -$0.0226 actual*, while company-reported diluted EPS was $0.02; investors should reconcile S&P “Primary EPS” methodology vs partnership reporting and the impact of preferred distributions/accretion .
EBITDA slightly beat: $66.10M est. vs $67.94M actual*; company reported consolidated Adjusted EBITDA of $63.84M (non-GAAP) .
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Operational resilience with rising rig share and increasing net DUCs supports production stability into 2H25 despite broader U.S. rig declines; Permian and Haynesville were notable bright spots .
Cost execution is a positive surprise; cash G&A/boe beat bodes well for cash flow per boe and supports the 75% payout policy amid a volatile pricing backdrop .
The EPS miss versus S&P stems from framework/mix effects; focus on cash generation and distributions (Q2 CAD $47.1M; $0.38/unit declared) and on Adjusted EBITDA as the core cash driver .
Leverage ticked up to ~1.6x ND/TTM Adj. EBITDA due to capital structure actions; liquidity remains healthy with ~$163M undrawn and $625M borrowing base, providing optionality for disciplined M&A .
Near-term narrative pivots on gas: if gas strength persists, KRP’s mix can tilt slightly gassier, aided by Haynesville activity, with hedges providing some downside protection .
Guidance intact; watch for execution against the $2.45–$2.65 cash G&A/boe range and production mix bands, which are key levers for CAD sustainability .

Citations:

Q2 2025 8-K + Exhibit 99.1 (press release):
Q2 2025 standalone press release (duplicative content):
Q2 2025 earnings call transcript:
Q1 2025 press release:
Q4 2024 press release and 2025 guidance:

S&P Global (consensus and actuals used for estimate comparisons): All values marked with * are retrieved from S&P Global via analyst estimates tool.

Kimbell Royalty Partners, LP (KRP)·Q2 2025 Earnings Summary