Kimbell Royalty Partners Announces Record Second Quarter 2026 Results
Rhea-AI Summary
Kimbell Royalty Partners (NYSE: KRP) reported record Q2 2026 results, including average daily production of 25,830 Boe/d (6:1) and record oil, natural gas and NGL revenues of $103.0 million. Total revenues were $112.5 million, with net income of $47.3 million and net income attributable to common units of $38.4 million, or $0.40 per common unit.
Consolidated Adjusted EBITDA reached a record $84.9 million. Kimbell declared a Q2 2026 cash distribution of $0.47 per common unit, a 15% increase from Q1 2026, reflecting a 75% payout ratio and implying a 13.0% annualized yield at the August 6, 2026 unit price. The company repurchased and cancelled 500,000 common units for about $7.4 million and increased its secured revolving credit facility borrowing base and commitments from $625 million to $660 million, ending the quarter with $478.7 million of debt and net debt to trailing twelve month consolidated Adjusted EBITDA of approximately 1.4x.
Positive
- Total revenues $112.5 million vs. $86.5 million in Q2 2025
- Net income $47.3 million vs. $26.7 million in Q2 2025
- Net income to common $38.4 million vs. $2.0 million in Q2 2025
- Consolidated Adjusted EBITDA $84.9 million in Q2 2026
- Record 25,830 Boe/d production; post-acquisition run-rate 26,967 Boe/d
- Revolver borrowing base increased to $660 million; undrawn capacity $181.3 million
- Q2 2026 cash distribution $0.47, up 15% from Q1 2026
- Repurchased 500,000 units for approximately $7.4 million
- Over $360 million in acquisitions announced in last 90 days
Negative
- Long-term debt $478.7 million outstanding on revolver as of June 30, 2026
- Production and ad valorem taxes rose to $8.2 million from $5.7 million year over year
- Q2 2026 interest expense remained high at $8.4 million
News Explained
The release adds estimated tax-basis treatment for the Q2 distribution and discloses 478.7 million dollars debt.
For the approved Q2 distribution, Kimbell estimates that about
At
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Record Oil, Natural Gas and NGL Revenues, Record Lease Bonus and Other Income, Record Net Income, Record Consolidated Adjusted EBITDA and Record Cash Available for Distribution
Record Q2 2026 Daily Production of 25,830 Boe/d (6:1)
Borrowing Base and Aggregate Commitments on Kimbell's Secured Revolving Credit Facility Increased from
Activity on Acreage Remains Robust with 91 Active Rigs Drilling Representing
Announces Q2 2026 Cash Distribution of
Second Quarter 2026 Highlights
- Record Q2 2026 daily production of 25,830 barrels of oil equivalent ("Boe") per day (6:1)
- Includes 9 days of production from the Company's
$145.9 million - Following the closing of the Acquired Production on June 22, 2026, run-rate production was 26,967 Boe per day (6:1)
- Includes 9 days of production from the Company's
- Record Q2 2026 oil, natural gas and NGL revenues of
$103.0 million - Q2 2026 net income of approximately
$47.3 million $38.4 million - Record Q2 2026 consolidated Adjusted EBITDA of
$84.9 million - On June 24, 2026, the borrowing base and aggregate commitments on Kimbell's secured revolving credit facility were increased from
$625 million $660 million - As of June 30, 2026, Kimbell's major properties2 had 7.39 net DUCs and net permitted locations on its acreage compared to an estimated 7.20 net wells needed to maintain flat production
- As of June 30, 2026, Kimbell had 91 rigs actively drilling on its acreage, representing approximately
16% market share of all land rigs drilling in the continentalUnited States as of such time - Announced a Q2 2026 cash distribution of
$0.47 75% of cash available for distribution; implies a13.0% annualized yield based on the August 6, 2026 closing price of$14.51 25% of its cash available for distribution to repay a portion of the outstanding borrowings under Kimbell's secured revolving credit facility - During Q2 2026, Kimbell repurchased and cancelled 500,000 of its common units for an aggregate purchase price of approximately
$7.4 million $14.70 - Kimbell affirms its financial and operational guidance ranges for 2026 previously disclosed in its Q4 2025 earnings release and expects to update guidance upon the closing of the Drop Down acquisition previously announced on July 17, 2026
1 Based on Kimbell rig count of 91 and Baker Hughes | ||||
2 These figures pertain only to Kimbell's major properties and do not include possible additional DUCs and permits from Kimbell's minor properties, which generally have a net revenue interest of | ||||
Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty GP, LLC, Kimbell's general partner (the "General Partner"), commented, "We are pleased to report an outstanding quarter for Kimbell, which includes records for oil, natural gas and NGL revenues, net income, consolidated adjusted EBITDA, lease bonuses, average daily production and cash available for distribution. Other milestones during the quarter include increasing the Company's borrowing base and elected commitments on the credit facility from
"We are pleased to declare the Q2 2026 distribution of
"With the recently announced Drop Down acquisition that we expect to close later this month and the recently closed acquisition of Mesa Royalties, we have now announced over
Second Quarter 2026 Distribution and Debt Repayment
Today, the Board of Directors of the General Partner (the "Board of Directors") approved a cash distribution payment to common unitholders of
Kimbell expects that approximately
Financial Highlights
Kimbell's second quarter 2026 average realized price per Bbl of oil was
During the second quarter of 2026, the Partnership's total revenues were
Total second quarter 2026 consolidated Adjusted EBITDA was
In the second quarter of 2026, G&A expense was
During the second quarter of 2026, Kimbell repurchased and cancelled 500,000 of its common units for an aggregate purchase price of approximately
As of June 30, 2026, Kimbell had approximately
As of June 30, 2026, Kimbell had outstanding 98,652,268 common units and 16,051,322 Class B units. As of August 7, 2026, Kimbell had outstanding 100,895,984 common units and 13,807,606 Class B units.
Production
Second quarter 2026 average daily production was 25,830 Boe per day (6:1), which was composed of approximately
Operational Update
As of June 30, 2026, Kimbell's major properties had 1,016 gross (3.98 net) DUCs and 776 gross (3.41 net) permitted locations on its acreage. In addition, as of June 30, 2026, Kimbell had 91 rigs actively drilling on its acreage, which represents an approximate
Basin | Gross DUCs as of | Gross Permits as of | Net DUCs as of | Net Permits as of |
Permian | 716 | 567 | 2.60 | 2.43 |
Eagle Ford | 52 | 19 | 0.33 | 0.16 |
Haynesville | 70 | 16 | 0.40 | 0.18 |
Mid-Continent | 108 | 74 | 0.52 | 0.41 |
Bakken | 65 | 87 | 0.09 | 0.18 |
Appalachia | 5 | 2 | 0.04 | 0.00 |
Rockies | 0 | 11 | 0.00 | 0.05 |
Total | 1,016 | 776 | 3.98 | 3.41 |
(1) These figures pertain only to Kimbell's major properties and do not include possible additional |
Hedging Update
The following provides information concerning Kimbell's hedge book as of June 30, 2026:
Fixed Price Swaps as of June 30, 2026 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
3Q 2026 | 150,144 | 1,324,800 | $ 66.60 | $ 3.42 |
4Q 2026 | 150,144 | 1,324,800 | $ 63.33 | $ 3.94 |
1Q 2027 | 151,470 | 1,321,920 | $ 63.75 | $ 4.46 |
2Q 2027 | 153,153 | 1,336,608 | $ 61.57 | $ 3.47 |
3Q 2027 | 154,836 | 1,351,296 | $ 61.90 | $ 3.76 |
4Q 2027 | 154,836 | 1,351,296 | $ 58.06 | $ 4.02 |
1Q 2028 | 148,512 | 1,336,608 | $ 70.35 | $ 4.35 |
2Q 2028 | 159,159 | 1,360,086 | $ 65.30 | $ 3.15 |
Conference Call
Kimbell Royalty Partners will host a conference call and webcast today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss second quarter 2026 results. To access the call live by phone, dial 201-389-0869 and ask for the Kimbell Royalty Partners call at least 10 minutes prior to the start time. A telephonic replay will be available through August 14, 2026 by dialing 201-612-7415 and using the conference ID 13761039#. A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under the Events and Presentations tab.
Presentation
On August 7, 2026, Kimbell posted an updated investor presentation on its website. The presentation may be found at http://kimbellrp.investorroom.com under the Events and Presentations tab. Information on Kimbell's website does not constitute a portion of this news release.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell owns mineral and royalty interests in over 17 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in approximately 135,000 gross wells. To learn more, visit http://www.kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements, in particular statements relating to Kimbell's financial, operating and production results and prospects for growth (including financial and operational guidance), drilling inventory, growth potential, identified locations and all other estimates and predictions resulting from Kimbell's portfolio review, the tax treatment of Kimbell's distributions, changes in Kimbell's capital structure, future natural gas and other commodity prices and changes to supply and demand for oil, natural gas and NGLs. These and other forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of acquisitions are not realized and uncertainties relating to Kimbell's business, prospects for growth and acquisitions and the securities markets generally, as well as risks inherent in oil and natural gas drilling and production activities, including risks with respect to potential declines in prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause operators to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow, risks relating to the impairment of oil and natural gas properties, risk related to changes in U.S. trade policy and the impact of tariffs, risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil and natural gas prices, risks relating to Kimbell's ability to meet financial covenants under its credit agreement or its ability to obtain amendments or waivers to effect such compliance, risks relating to Kimbell's hedging activities, risks of fire, explosion, blowouts, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of drilling operations, risks relating to delays in receipt of drilling permits, risks relating to unexpected adverse developments in the status of properties, risks relating to borrowing base redeterminations by Kimbell's lenders, risks relating to the absence or delay in receipt of government approvals or third-party consents, risks relating to acquisitions, dispositions and drop downs of assets, risks relating to Kimbell's ability to realize the anticipated benefits from and to integrate acquired assets, including the Acquired Production, risks relating to tax matters and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Except as required by law, Kimbell undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Kimbell's filings with the SEC.
Contact:
Ken Dennard / Zach Vaughan
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
Kimbell Royalty Partners, LP | ||
Condensed Consolidated Balance Sheet | ||
(Unaudited, in thousands) | ||
June 30, | ||
2026 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 44,931 |
Oil, natural gas and NGL receivables | 53,685 | |
Derivative assets | 292 | |
Accounts receivable and other current assets | 1,886 | |
Total current assets | 100,794 | |
Property and equipment, net | 655 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 2,417,589 | |
Less: accumulated depreciation, depletion and impairment | (1,207,591) | |
Total oil and natural gas properties, net | 1,209,998 | |
Right-of-use assets, net | 4,424 | |
Derivative assets | 984 | |
Loan origination costs, net | 9,362 | |
Total assets | $ | 1,326,217 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 4,051 |
Other current liabilities | 8,789 | |
Derivative liabilities | 961 | |
Total current liabilities | 13,801 | |
Operating lease liabilities, excluding current portion | 4,238 | |
Derivative liabilities | 749 | |
Long-term debt | 478,700 | |
Total liabilities | 497,488 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 159,184 | |
Kimbell Royalty Partners, LP unitholders' equity: | ||
Common units | 575,049 | |
Class B units | 802 | |
Total Kimbell Royalty Partners, LP unitholders' equity | 575,851 | |
Non-controlling interest in OpCo | 93,694 | |
Total unitholders' equity | 669,545 | |
Total liabilities, mezzanine equity and unitholders' equity | $ | 1,326,217 |
Kimbell Royalty Partners, LP | |||||
Condensed Consolidated Statements of Operations | |||||
(Unaudited, in thousands, except per-unit data and unit counts) | |||||
Three Months Ended | Three Months Ended | ||||
June 30, 2026 | June 30, 2025 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 103,046 | $ | 74,695 | |
Lease bonus and other income | 3,319 | 2,514 | |||
Gain on commodity derivative instruments, net | 6,112 | 9,339 | |||
Total revenues | 112,477 | 86,548 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 8,207 | 5,715 | |||
Depreciation and depletion expense | 30,206 | 30,458 | |||
Marketing and other deductions | 4,163 | 3,016 | |||
General and administrative expense | 10,220 | 9,573 | |||
Total costs and expenses | 52,796 | 48,762 | |||
Operating income | 59,681 | 37,786 | |||
Other expense | |||||
Interest expense | (8,404) | (8,947) | |||
Net income before income taxes | 51,277 | 28,839 | |||
Income tax expense | 3,978 | 2,167 | |||
Net income | 47,299 | 26,672 | |||
Distribution and accretion on Series A preferred units | (2,628) | (24,337) | |||
Net income attributable to non-controlling interests | (6,251) | (314) | |||
Distributions to Class B unitholders | (9) | (14) | |||
Net income attributable to common units of Kimbell Royalty Partners, LP | $ | 38,411 | $ | 2,007 | |
Basic | $ | 0.40 | $ | 0.02 | |
Diluted | $ | 0.40 | $ | 0.02 | |
Weighted average number of common units outstanding | |||||
Basic | 96,306,888 | 91,170,092 | |||
Diluted | 118,876,199 | 122,924,241 | |||
Kimbell Royalty Partners, LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA, Cash G&A and Cash G&A per Boe are used as supplemental non-GAAP financial measures by management and external users of Kimbell's financial statements, such as industry analysts, investors, lenders and rating agencies. Kimbell believes Adjusted EBITDA is useful because it allows us to more effectively evaluate Kimbell's operating performance and compare the results of Kimbell's operations period to period without regard to its financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to Kimbell's unitholders. Kimbell defines Adjusted EBITDA as net income (loss), net of depreciation and depletion expense, interest expense, income taxes, impairment of oil and natural gas properties, non-cash unit-based compensation and unrealized gains and losses on derivative instruments. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP. Kimbell excludes the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within Kimbell's industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Adjusted EBITDA should not be considered an alternative to net income, oil, natural gas and natural gas liquids revenues, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Kimbell's computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Kimbell expects that cash available for distribution for each quarter will generally equal its Adjusted EBITDA for the quarter, less cash needed for debt service and other contractual obligations, tax obligations, and fixed charges and reserves for future operating or capital needs that the Board of Directors may determine is appropriate.
Kimbell believes Cash G&A and Cash G&A per Boe are useful metrics because they isolate cash costs within overall G&A expense and measure cash costs relative to overall production, which is a widely utilized metric to evaluate operational performance within the energy sector. Cash G&A is defined as general and administrative expenses less unit-based compensation expense. Cash G&A per Boe is defined as Cash G&A divided by total production for a period. Cash G&A should not be considered an alternative to G&A expense presented in accordance with GAAP. Kimbell's computations of Cash G&A and Cash G&A per Boe may not be comparable to other similarly titled measures of other companies.
Kimbell Royalty Partners, LP | |||||
Supplemental Schedules | |||||
(Unaudited, in thousands) | |||||
Three Months Ended | Three Months Ended | ||||
June 30, 2026 | June 30, 2025 | ||||
Reconciliation of net cash provided by operating activities | |||||
to Adjusted EBITDA and cash available for distribution | |||||
Net cash provided by operating activities | $ | 68,304 | $ | 72,321 | |
Interest expense | 8,404 | 8,947 | |||
Income tax expense | 3,978 | 2,167 | |||
Amortization of right-of-use assets | (92) | (86) | |||
Amortization of loan origination costs | (505) | (579) | |||
Unit-based compensation | (4,342) | (4,124) | |||
Gain on derivative instruments, net of settlements | 9,322 | 8,524 | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL receivables | 8,157 | (13,009) | |||
Accounts receivable and other current assets | (105) | (792) | |||
Accounts payable | (1,152) | 3 | |||
Other current liabilities | (2,171) | (5,208) | |||
Operating lease liabilities | 89 | 80 | |||
Consolidated EBITDA | $ | 89,887 | $ | 68,244 | |
Add: | |||||
Unit-based compensation | 4,342 | 4,124 | |||
Gain on derivative instruments, net of settlements | (9,322) | (8,524) | |||
Consolidated Adjusted EBITDA | $ | 84,907 | $ | 63,844 | |
Adjusted EBITDA attributable to non-controlling interest | (11,882) | (8,576) | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 73,025 | $ | 55,268 | |
Adjustments to reconcile Adjusted EBITDA to cash available | |||||
for distribution | |||||
Less: | |||||
Cash interest expense | 6,776 | 5,810 | |||
Cash distribution to Series A preferred unitholders | 2,091 | 2,104 | |||
Cash income tax expense | 4,167 | 219 | |||
Distribution to Class B unitholders | 9 | 14 | |||
Cash available for distribution on common units | $ | 59,982 | $ | 47,121 | |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands, except for per-unit data and unit counts) | ||
Three Months Ended | ||
June 30, 2026 | ||
Net income | $ | 47,299 |
Depreciation and depletion expense | 30,206 | |
Interest expense | 8,404 | |
Income tax expense | 3,978 | |
Consolidated EBITDA | $ | 89,887 |
Unit-based compensation | 4,342 | |
Gain on derivative instruments, net of settlements | (9,322) | |
Consolidated Adjusted EBITDA | $ | 84,907 |
Adjusted EBITDA attributable to non-controlling interest | (11,882) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 73,025 |
Adjustments to reconcile Adjusted EBITDA to cash available | ||
for distribution | ||
Less: | ||
Cash interest expense | 6,776 | |
Cash distribution to Series A preferred unitholders | 2,091 | |
Cash income tax expense | 4,167 | |
Distribution to Class B unitholders | 9 | |
Cash available for distribution on common units | $ | 59,982 |
Common units outstanding on June 30, 2026 | 98,652,268 | |
Common units outstanding on August 17, 2026 Record Date | 100,895,984 | |
Cash available for distribution per common unit outstanding | $ | 0.59 |
Second quarter 2026 distribution declared (1) | $ | 0.47 |
(1) The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands, except for per-unit data and unit counts) | ||
Three Months Ended | ||
June 30, 2025 | ||
Net income | $ | 26,672 |
Depreciation and depletion expense | 30,458 | |
Interest expense | 8,947 | |
Income tax expense | 2,167 | |
Consolidated EBITDA | $ | 68,244 |
Unit-based compensation | 4,124 | |
Gain on derivative instruments, net of settlements | (8,524) | |
Consolidated Adjusted EBITDA | $ | 63,844 |
Adjusted EBITDA attributable to non-controlling interest | (8,576) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 55,268 |
Adjustments to reconcile Adjusted EBITDA to cash available | ||
for distribution | ||
Less: | ||
Cash interest expense | 5,810 | |
Cash distribution to Series A preferred unitholders | 2,104 | |
Cash income tax expense | 219 | |
Distribution to Class B unitholders | 14 | |
Cash available for distribution on common units | $ | 47,121 |
Common units outstanding on June 30, 2025 | 93,396,488 | |
Common units outstanding on August 18, 2025 Record Date | 93,396,488 | |
Cash available for distribution per common unit outstanding | $ | 0.50 |
Second quarter 2025 distribution declared (1) | $ | 0.38 |
(1) The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
June 30, 2026 | ||
Net income | $ | 47,299 |
Depreciation and depletion expense | 30,206 | |
Interest expense | 8,404 | |
Income tax expense | 3,978 | |
Consolidated EBITDA | $ | 89,887 |
Unit-based compensation | 4,342 | |
Gain on derivative instruments, net of settlements | (9,322) | |
Consolidated Adjusted EBITDA | $ | 84,907 |
Q3 2025 - Q1 2026 Consolidated Adjusted EBITDA (1) | 215,462 | |
Trailing Twelve Month Consolidated Adjusted EBITDA | $ | 300,369 |
Long-term debt (as of 6/30/26) | 478,700 | |
Cash and cash equivalents (as of 6/30/26) | (44,931) | |
Net debt (as of 6/30/26) | $ | 433,769 |
Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA | 1.4x | |
(1) Consolidated Adjusted EBITDA for each of the quarters ended September 30, 2025, December 31, 2025 and March 31, 2026 was previously reported in a news release relating to the applicable quarter, and the reconciliation of net income to consolidated Adjusted EBITDA for each quarter is included in the applicable news release. This also includes the trailing twelve months pro forma results from the Q2 2026 acquisition that closed in June 2026 in accordance with Kimbell's secured revolving credit facility. |
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SOURCE Kimbell Royalty Partners, LP