Q2 2025 Kimbell Royalty Partners LP Earnings Call Transcript
Key Points
- Kimbell Royalty Partners LP (KRP) reported strong cash flow and continued debt pay down for the second quarter.
- The company increased its market share of overall US land rigs actively drilling by 1% to 17%.
- KRP announced a 38% distribution for common units, focusing on returning value to unit holders.
- Cash G&A per BOE came in below the low end of guidance, reflecting positive operating leverage.
- The company maintains a conservative balance sheet with a net debt to trailing 12-month consolidated adjusted EBITDA of approximately 1.6 times.
- Net debt increased by 9% quarter over quarter, primarily due to activities in the Permian Basin.
- The overall US land rig count dropped by 7% quarter over quarter, indicating a slowdown in drilling activity.
- There is a slowdown in Permian packages coming to market, potentially affecting future acquisition opportunities.
- Natural gas production showed volatility, with fluctuations in production levels across quarters.
- The M&A market is seeing a shift towards more conservative valuations, potentially impacting future acquisition strategies.
Greetings and welcome to the Kimbell Royalty Partners second quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rick Black. Please go ahead, sir.
Thank you, operator, and good morning everyone. Welcome to the Kimbell Royalty Partners conference call to review financial and operational results for the second quarter, which ended June 30, 2025. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the IR section of kimbellrp.com.
Information recorded on this call speaks only as of today, which is August 7, 2025. So please be advised at any time sensitive information may no longer be accurate as of the date of any replay listening, or transcript reading.
I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations or future events or future
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