Kimbell Royalty Partners LP (NYSE: KRP) saw its stock surge 9.93% in early trading on Thursday, following the release of its exceptional first-quarter 2025 financial results. The oil and gas royalty company's performance significantly exceeded analyst expectations, demonstrating robust growth and improved profitability across key metrics.

The 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. Kimbell's adjusted EBITDA reached $75.533 million, surpassing the IBES estimate of $68.2 million. 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.

Adding to investor enthusiasm, 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 the primary driver behind the significant rally in KRP's stock price. The company's ability to deliver record results amid a challenging energy market environment has clearly resonated with investors, potentially signaling a positive outlook for the remainder of the fiscal year.