Kimbell Royalty Partners Announces Second Quarter 2025 Results

Q2 2025 Run-Rate Daily Production of 25,355 Boe/d (6:1)

Activity on Acreage Remains Robust with 88 Active Rigs Drilling Representing 17%1Market Share of U.S. Land Rig Count

Announces Q2 2025 Cash Distribution of $0.38 per Common Unit

Kimbell Royalty Partners,LP (NYSE: KRP) (“Kimbell” or the “Company”), a leading owner of oil and natural gas mineral and royalty interests in over 131,000 gross wells across 28 states, today announced financial and operating results for the quarter ended June 30, 2025.

Second Quarter 2025 Highlights

— Q2 2025 run-rate daily production of 25,355 barrels of oil equivalent (“Boe”) per day (6:1)

— Q2 2025 oil, natural gas andNGL revenues of $74.7 million

— Q2 2025 net income of approximately $26.7 million and net income attributable to common units of approximately $2.0 million

— Q2 2025 consolidated Adjusted EBITDA of $63.8 million

— Cash G&A per BOE of $2.36 in Q2 2025, below low-end of guidance reflecting operational discipline and positive operating leverage

— As of June 30, 2025,Kimbell's major properties2 had 7.99 net DUCs and net permitted locations on its acreage (5.10 net DUCs and 2.89 net permitted locations) compared to an estimated 6.5 net wells needed to maintain flat production

— As of June 30, 2025,Kimbell had 88 rigs actively drilling on its acreage, representing approximately 17% market share of all land rigs drilling in the continental United States as of such time

— Announced a Q2 2025 cash distribution of $0.38 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 10.3% annualized yield based on the August 6, 2025 closing price of $14.79 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 Kimbell's secured revolving credit facility

— Kimbell affirms its financial and operational guidance ranges for 2025 previously disclosed in its Q4 2024 earnings release

Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty GP, LLC, Kimbell's general partner (the “General Partner”), 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.”

___________________________1 Based on Kimbell rig count of 88 and Baker Hughes U.S. land rig count of 533 as of June 30, 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.

Second 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 second quarter of 2025, or $0.38 per common unit. The distribution will be payable on August 25, 2025 to common unitholders of record at the close of business on August 18, 2025. Kimbell plans to utilize the remaining 25% of cash available for distribution for the second quarter of 2025 to pay down approximately $13.6 million of the outstanding borrowings under its secured revolving credit facility.

Kimbell expects that approximately 100% of its second 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.comunder “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 2025. Kimbell believes these estimates are reasonable based on currently available information, but they are subject to change.

Financial Highlights

Kimbell's second quarter 2025 average realized price per Bbl of oil was $63.48, per Mcf of natural gas was $2.54, per Bbl of NGLs was $24.10 and per Boe combined was $33.04.

During the second quarter of 2025, the Company's total revenues were $86.5 million, net income was approximately $26.7 million and net income attributable to common units was approximately $2.0 million, or $0.02 per common unit.

Total second quarter 2025 consolidated Adjusted EBITDA was $63.8 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 second quarter of 2025, G&A expense was $9.6 million, $5.4 million of which was Cash G&A expense, or $2.36 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 second quarter of 2025, which is a non-cash G&A expense, was $4.1 million or $1.79 per Boe.

As of June 30, 2025, Kimbell had approximately $462.1 million in debt outstanding under its secured revolving credit facility, had net debt to second quarter 2025 trailing twelve month consolidated Adjusted EBITDA of approximately 1.6x and was in compliance with all financial covenants under its secured revolving credit facility. Kimbell had approximately $162.9 million in undrawn capacity under its secured revolving credit facility as of June 30, 2025.

On May 1, 2025, the borrowing base and aggregate commitments on Kimbell's secured revolving credit facility were increased from $550 million to $625 million in connection with its spring redetermination. In addition, on May 7, 2025, the Company redeemed 50% of its Series A Cumulative Convertible Preferred Units outstanding, further simplifying its capital structure and reducing its cost of capital.

As of June 30, 2025, Kimbell had outstanding 93,396,488 common units and 14,491,540 Class B units. As of August 7, 2025, Kimbell had outstanding 93,396,488 common units and 14,491,540 Class B units.

Production

Second quarter 2025 run-rate average daily production was 25,355 Boe per day (6:1), which was composed of approximately 47% from natural gas (6:1) and approximately 53% from liquids (33% from oil and 20% from NGLs).

Operational Update

As of June 30, 2025, Kimbell's major properties had 823 gross (5.10 net) DUCs and 687 gross (2.89 net) permitted locations on its acreage. In addition, as of June 30, 2025, Kimbell had 88 rigs actively drilling on its acreage, which represents an approximate 16.5% market share of all land rigs drilling in the continental United States as of such time.

Basin Gross DUCs as of Gross Permits as of Net DUCs as of Net Permits as of June 30, 2025(1) June 30, 2025(1) June 30, 2025(1) June 30, 2025(1)Permian 524 459 3.27 2.15Eagle Ford 55 15 0.22 0.08Haynesville 54 30 0.35 0.13Mid-Continent 114 76 0.78 0.39Bakken 61 97 0.36 0.10Appalachia 3 4 0.02 0.02Rockies 12 6 0.10 0.02Total 823 687 5.10 2.89

_______________________________________________________________________________(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.

Hedging Update

The following provides information concerning Kimbell's hedge book as of June 30, 2025:

Fixed Price Swaps as of June 30, 2025 Weighted Average Volumes Fixed Price Oil Nat Gas Oil Nat Gas BBL MMBTU $/BBL $/MMBTU3Q 2025 136,068 1,261,964 $ 74.20 $ 3.744Q 2025 146,372 1,291,680 $ 68.26 $ 3.681Q 2026 146,880 1,296,000 $ 70.38 $ 4.072Q 2026 148,512 1,310,400 $ 70.78 $ 3.333Q 2026 150,144 1,324,800 $ 66.60 $ 3.424Q 2026 150,144 1,324,800 $ 63.33 $ 3.941Q 2027 151,470 1,321,920 $ 63.75 $ 4.462Q 2027 153,153 1,336,608 $ 61.57 $ 3.47

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 second 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 August 14, 2025 by dialing 201-612-7415 and using the conference ID 13752278#. 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 August 7, 2025, Kimbell posted an updated investor presentation on its website. The presentation may be found at http://kimbellrp.investorroom.comunder 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 131,000 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, LPCondensed Consolidated Balance Sheet(Unaudited, in thousands) June 30, 2025Assets:Current assetsCash and cash equivalents $ 34,524Oil, natural gas and NGL receivables 47,989Derivative assets 3,773Accounts receivable and other current assets 1,963Total current assets 88,249Property and equipment, net 557Oil and natural gas propertiesOil and natural gas properties (full cost method) 2,271,464Less: accumulated depreciation, depletion and impairment (1,085,279)Total oil and natural gas properties, net 1,186,185Right-of-use assets, net 4,783Derivative assets 267Loan origination costs, net 4,895Total assets $ 1,284,936Liabilities, mezzanine equity and unitholders' equity:Current liabilitiesAccounts payable $ 3,093Other current liabilities 13,092Total current liabilities 16,185Operating lease liabilities, excluding current portion 4,573Derivative liabilities 669Long-term debt 462,096Other liabilities 10Total liabilities 483,533Commitments and contingenciesMezzanine equity:Series A preferred units 158,395Kimbell Royalty Partners, LP unitholders' equity:Common units 555,914Class B units 724Total Kimbell Royalty Partners, LP unitholders' equity 556,638Non-controlling interest in OpCo 86,370Total unitholders' equity 643,008Total liabilities, mezzanine equity and unitholders' equity $ 1,284,936

Kimbell Royalty Partners, LPCondensed Consolidated Statements of Operations(Unaudited, in thousands, except per-unit data and unit counts) Three Months Ended Three Months Ended June 30, 2025 June 30, 2024RevenueOil, natural gas and NGL revenues $ 74,695 $ 76,959Lease bonus and other income 2,514 660Gain (loss) on commodity derivative instruments, net 9,339 (1,046)Total revenues 86,548 76,573Costs and expensesProduction and ad valorem taxes 5,715 5,577Depreciation and depletion expense 30,458 33,024Marketing and other deductions 3,016 3,828General and administrative expense 9,573 10,252Total costs and expenses 48,762 52,681Operating income 37,786 23,892Other expenseInterest expense (8,947) (6,946)Net income before income taxes 28,839 16,946Income tax expense 2,167 1,759Net income 26,672 15,187Distribution and accretion on Series A preferred units (24,337) (5,243)Net income attributable to non-controlling interests (314) (1,513)Distributions to Class B unitholders (14) (21)Net income attributable to common units of Kimbell Royalty Partners, LP $ 2,007 $ 8,410Basic $ 0.02 $ 0.11Diluted $ 0.02 $ 0.11Weighted average number of common units outstandingBasic 91,170,092 74,834,777Diluted 122,924,241 116,593,560

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 and 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, LPSupplemental Schedules(Unaudited, in thousands) Three Months Ended Three Months Ended June 30, 2025 June 30, 2024Reconciliation of net cash provided by operating activitiesto Adjusted EBITDA and cash available for distributionNet cash provided by operating activities $ 72,321 $ 62,883Interest expense 8,947 6,946Income tax expense 2,167 1,759Amortization of right-of-use assets (86) (87)Amortization of loan origination costs (579) (530)Unit-based compensation (4,124) (5,109)Gain (loss) on derivative instruments, net of settlements 8,524 (3,796)Changes in operating assets and liabilities:Oil, natural gas and NGL revenues receivable (13,009) (1,486)Accounts receivable and other current assets (792) (460)Accounts payable 3 353Other current liabilities (5,208) (3,651)Operating lease liabilities 80 94Consolidated EBITDA $ 68,244 $ 56,916Add:Unit-based compensation 4,124 5,109(Gain) loss on derivative instruments, net of settlements (8,524) 3,796Consolidated Adjusted EBITDA $ 63,844 $ 65,821Adjusted EBITDA attributable to non-controlling interest (8,576) (10,011)Adjusted EBITDA attributable to Kimbell Royalty Partners, LP $ 55,268 $ 55,810Adjustments to reconcile Adjusted EBITDA to cash availablefor distributionLess:Cash interest expense 5,810 5,620Cash distribution to Series A preferred unitholders 2,104 4,111Cash income tax expense 219 -Distribution to Class B unitholders 14 21Cash available for distribution on common units $ 47,121 $ 46,058

Kimbell Royalty Partners, LPSupplemental Schedules(Unaudited, in thousands, except for per-unit data and unit counts) Three Months Ended June 30, 2025Net income $ 26,672Depreciation and depletion expense 30,458Interest expense 8,947Income tax expense 2,167Consolidated EBITDA $ 68,244Unit-based compensation 4,124Gain on derivative instruments, net of settlements (8,524)Consolidated Adjusted EBITDA $ 63,844Adjusted EBITDA attributable to non-controlling interest (8,576)Adjusted EBITDA attributable to Kimbell Royalty Partners, LP $ 55,268Adjustments to reconcile Adjusted EBITDA to cash availablefor distributionLess:Cash interest expense 5,810Cash distribution to Series A preferred unitholders 2,104Cash income tax expense 219Distribution to Class B unitholders 14Cash available for distribution on common units $ 47,121Common units outstanding on June 30, 2025 93,396,488Common units outstanding on August 18, 2025 Record Date 93,396,488Cash available for distribution per common unit outstanding $ 0.50Second quarter 2025 distribution declared (1) $ 0.38

(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, LPSupplemental Schedules(Unaudited, in thousands, except for per-unit data and unit counts) Three Months Ended June 30, 2024Net income $ 15,187Depreciation and depletion expense 33,024Interest expense 6,946Income tax expense 1,759Consolidated EBITDA $ 56,916Unit-based compensation 5,109Loss on derivative instruments, net of settlements 3,796Consolidated Adjusted EBITDA $ 65,821Adjusted EBITDA attributable to non-controlling interest (10,011)Adjusted EBITDA attributable to Kimbell Royalty Partners, LP $ 55,810Adjustments to reconcile Adjusted EBITDA to cash availablefor distributionLess:Cash interest expense 5,620Cash distribution to Series A preferred unitholders 4,111Distribution to Class B unitholders 21Cash available for distribution on common units $ 46,058Common units outstanding on June 30, 2024 80,969,651Common units outstanding on August 12, 2024 Record Date 80,969,651Cash available for distribution per common unit outstanding $ 0.57Second quarter 2024 distribution declared (1) $ 0.42

Kimbell Royalty Partners, LPSupplemental Schedules(Unaudited, in thousands) Three Months Ended June 30, 2025Net income $ 26,672Depreciation and depletion expense 30,458Interest expense 8,947Income tax expense 2,167Consolidated EBITDA $ 68,244Unit-based compensation 4,124Gain on derivative instruments, net of settlements (8,524)Consolidated Adjusted EBITDA $ 63,844Q3 2024 – Q1 2025 Consolidated Adjusted EBITDA (1) 215,972Trailing Twelve Month Consolidated Adjusted EBITDA $ 279,816Long-term debt (as of 6/30/25) 462,096Cash and cash equivalents (as of 6/30/25) (2) (25,000)Net debt (as of 6/30/25) $ 437,096Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA 1.6x

(1) Consolidated Adjusted EBITDA for each of the quarters ended September 30, 2024, December 31, 2024 and March 31, 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.(2) In accordance with Kimbell's secured revolving credit facility, the maximum deduction of cash and cash equivalents to be included in the net debt calculation for compliance purposes is $25 million.

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SOURCE Kimbell Royalty Partners, LP

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