Kimbell Royalty 2025 Q3 Earnings Net Income Falls 13.5% Amid Sector Headwinds

Kimbell Royalty (KRP), ranking by market capitalization, reported its fiscal 2025 Q3 earnings on Nov 07th, 2025. The company delivered mixed results, with revenue declining 3.8% to $80.62 million and net income dropping 13.5% to $22.32 million, while EPS fell 13.6% to $0.19. Despite the revenue decline, earnings beat analyst estimates and guidance was reaffirmed, reflecting operational resilience in a challenging sector environment.

Revenue

The total revenue of Kimbell Royalty decreased by 3.8% to $80.62 million in 2025 Q3, down from $83.78 million in 2024 Q3.

Earnings/Net Income

Kimbell Royalty's EPS declined 13.6% to $0.19 in 2025 Q3 from $0.22 in 2024 Q3. Meanwhile, the company's net income declined to $22.32 million in 2025 Q3, down 13.5% from $25.80 million reported in 2024 Q3. The decline in EPS underscores challenges in maintaining profitability despite strong production.

Price Action

The stock price of Kimbell Royalty has edged up 2.21% during the latest trading day, has edged up 1.13% during the most recent full trading week, and has edged down 0.45% month-to-date.

Post-Earnings Price Action Review

Following the earnings release, the stock exhibited modest gains, with a 2.21% intraday rally and a 1.13% weekly increase. However, the month-to-date performance remained negative at -0.45%. The company’s $0.35 per share distribution announcement likely supported short-term investor sentiment, though broader market pressures and sector headwinds may limit sustained momentum.

CEO Commentary

Kimbell Royalty’s CEO, Bob Ravnaas, highlighted “solid third-quarter results with production increasing organically by approximately 1% over Q2 and exceeding the midpoint of our 2025 guidance.” He attributed the performance to the company’s diversified and low-decline production base. The CEO emphasized operational discipline, noting cash G&A per BOE was below guidance midpoints, and reaffirmed confidence in the company’s ability to deliver steady distributions amid sector slowdowns.

Guidance

Kimbell Royalty reaffirmed its 2025 financial and operational guidance ranges, including production of 25,500 Boe/d and net debt to EBITDA of ~1.6x. Management emphasized continued focus on rig activity, with 86 active rigs representing 16% U.S. land rig market share, and disciplined capital allocation to sustain long-term value creation.

Additional News

In the three weeks leading to Nov 7, 2025, Kimbell Royalty announced the completion of a $230 million acquisition of Midland Basin mineral and royalty interests, funded through a public offering and credit facility borrowings. The acquisition added 1,842 Boe/d of production, enhancing the company’s Permian Basin exposure. Separately, the board declared a $0.35 per common unit cash distribution, maintaining a 10.7% annualized yield. The company also used 25% of available cash to repay $12.6 million in revolver borrowings, underscoring its commitment to debt reduction and financial prudence.

Post-Earnings Price Action Review

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Guidance

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Additional News

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