Kimbell Royalty Partners LP (NYSE:KRP) Reports Mixed Q2 2025 Earnings Amid Muted Market Reaction

Kimbell Royalty Partners LP (NYSE:KRP) reported its second-quarter 2025 earnings, delivering mixed results compared to analyst expectations. The market reaction has been muted in the short term, with pre-market trading showing a slight decline of approximately 0.6%, while the stock has seen modest gains over the past month.

Earnings and Revenue Performance

• Revenue: The company reported Q2 2025 revenue of $86.55 million, surpassing analyst estimates of $83.19 million. This represents a 4% beat, reflecting strong performance in its royalty interests.
• Earnings Per Share (EPS): KRP posted EPS of $0.02, significantly below the consensus estimate of $0.1351. The miss suggests higher operational costs or non-cash adjustments impacting profitability.

Market Reaction

The immediate pre-market dip indicates investor disappointment over the EPS shortfall, despite the revenue beat. Over the past month, however, KRP shares have risen nearly 4.9%, suggesting broader confidence in the company’s long-term royalty portfolio. The stock’s performance over the last two weeks (+2.8%) and week (-0.7%) shows minor fluctuations, likely reflecting a wait-and-see approach ahead of the earnings release.

Key Takeaways from the Press Release

• Production Growth: KRP reported a run-rate daily production of 25,355 barrels of oil equivalent per day (Boe/d) with a 6:1 gas-to-oil ratio, indicating steady output.
• Drilling Activity: The company highlighted robust activity on its acreage, with 88 active rigs drilling—representing a 17% market share of the U.S. land rig count. This suggests continued industry interest in KRP’s mineral holdings.

Outlook vs. Analyst Estimates

While the press release did not provide explicit forward guidance, analysts project:

• Q3 2025 Revenue: $84.57 million (vs. $86.55 million in Q2).
• Full-Year 2025 Revenue: $346.03 million, implying steady but not accelerating growth.

The lack of a formal outlook from management does not necessarily signal weakness but leaves investors reliant on broader industry trends and KRP’s historical performance.

For a deeper dive into Kimbell Royalty Partners’ earnings and future estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.