Kimbell Royalty Partners LP (NYSE: KRP) saw its stock surge 5.22% in pre-market trading on Thursday, following the release of its record-breaking first-quarter 2025 financial results. The company's performance significantly exceeded analyst expectations, demonstrating robust growth and improved profitability.

The oil and gas royalty company reported quarterly earnings of $0.20 per share, handily beating the analyst consensus estimate of $0.12 by 66.67%. This represents a remarkable 400% increase from the $0.04 per share earned in the same period last year. While quarterly sales of $84.21 million slightly missed the analyst estimate of $84.41 million by 0.24%, it still showed a 2.40% improvement compared to the previous year.

Kimbell Royalty Partners also reported strong financial metrics, with a pretax profit of $26.943 million and net income of $25.853 million for the quarter. The company's adjusted EBITDA reached $75.533 million, surpassing the IBES estimate of $68.2 million. In a move that further pleased investors, Kimbell announced a Q1 cash distribution of $0.47 per common unit, representing an 18% increase from the previous quarter. This combination of strong earnings growth, operational performance, and increased shareholder returns appears to be driving the pre-market rally in KRP's stock price.