Kimbell Royalty Partners Announces Record Third Quarter 2026 Results

The planned preferred-unit redemption would use approximately $100.2 million of revolving credit borrowings.

Rhea-AI Summary

Kimbell Royalty Partners (NYSE: KRP) reported record third-quarter 2026 production of 27,565 barrels of oil equivalent per day. Oil, natural gas and natural gas liquids revenue was $96.9 million; net income was approximately $17.3 million, including approximately $12.4 million attributable to common units. Adjusted EBITDA, a non-GAAP earnings measure, was $80.4 million.

The $221.2 million Drop Down acquisition closed August 21, contributing 41 days of production. Revolving credit commitments increased from $660 million to $750 million. Kimbell expects to redeem half its remaining preferred units on November 16 for approximately $100.2 million, funded with revolving borrowings. It declared a $0.45 quarterly distribution, payable November 23, and plans approximately $18.8 million of debt repayment. Active rigs rose by two from the second quarter to 93. Kimbell affirmed its fourth-quarter guidance ranges.

14 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointRecord Q3 2026 production reached 27,565 barrels of oil equivalent per day.
• Moderate pointQ3 oil, natural gas and liquids revenue increased to $96.862 million from $76.807 million a year earlier.
• Moderate pointQ3 total revenue increased to $86.333 million from $80.620 million a year earlier.
• Moderate pointQ3 net income was approximately $17.3 million; common-unit income was approximately $12.4 million, or $0.12 per unit.
• Moderate pointQ3 consolidated adjusted EBITDA, a non-GAAP earnings measure, was $80.4 million.
• Moderate pointThe $221.2 million Drop Down acquisition closed August 21, 2026, contributing 41 days of Q3 production. 14% of market cap
• Moderate pointRevolving borrowing base and elected commitments increased from $660 million to $750 million on October 15. 48% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Planned redemption of 50% of remaining preferred units would leave preferred units below 3% of $2.8 billion enterprise value.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Kimbell expects a material Q4 2026 cash-flow increase based on current-quarter oil prices.

5 minor points

• Minor pointPost-acquisition run-rate production was 28,910 barrels of oil equivalent per day following the August 21 closing.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned Q3 retained-cash allocation would repay approximately $18.8 million of revolving debt.
• Minor pointActive rigs increased by 2 to 93 from Q2 2026.
• Minor pointMajor-property unfinished wells and permitted locations totaled 9.37 net, versus an estimated 8.20 wells needed for flat production.
• Minor pointQ3 marketing and other deductions fell to $4.001 million from $5.052 million a year earlier.

Negative

• Moderate pointRevolving debt outstanding was approximately $535.8 million at September 30, with net leverage approximately 1.5 times trailing adjusted EBITDA.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Preferred redemption is expected to require approximately $100.2 million of new revolving borrowings. 6.4% of market cap
• Moderate pointQ3 commodity derivatives produced a $13.134 million loss, versus a $3.434 million gain a year earlier.
• Minor pointPreferred redemption remains pending, with closing expected November 16, 2026.
• Minor pointQ3 production and ad valorem taxes rose to $7.460 million from $5.611 million a year earlier.

2 minor points

• Minor pointQ3 depreciation and depletion rose to $32.889 million from $31.043 million a year earlier.
• Minor pointQ3 general and administrative expense rose to $10.673 million from $10.066 million a year earlier.

News Explained

For the $0.45 Q3 distribution, Kimbell estimates about 76% will reduce holders’ tax basis rather than count as dividends; the lower basis can increase capital gain or reduce capital loss when units are sold.

Key Figures

Average daily production: 27,565 Boe per day Total revenues: $86.3 million Net income attributable to common units: $12.4 million +5 more

Average daily production

27,565 Boe per day

Q3 2026

Total revenues

$86.3 million

Q3 2026

Net income attributable to common units

$12.4 million

Q3 2026

Consolidated Adjusted EBITDA

$80.4 million

Q3 2026

Cash distribution

$0.45 per common unit

Q3 2026

Revolving credit facility repayment

$18.8 million

Planned from Q3 2026 cash available for distribution

Preferred unit redemption

Approximately $100.2 million

Expected to close November 16, 2026; funded with revolving credit facility borrowings

Credit facility borrowing base and elected commitments

Increased from $660 million to $750 million

October 15, 2026

Previous Earnings Reports

2 past events · Latest: Aug 07

Same Type 2 events

1. Aug 07

   Quarterly earnings

   24h Move

   +3.2%

   Reported record production, revenue, net income, and Adjusted EBITDA alongside a higher distribution.

2. Nov 06

   Quarterly earnings

   24h Move

   +0.3%

   Reported quarterly production, financial results, and a common-unit distribution.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, non-gaap financial measure, return of capital, barrels of oil equivalent

4 terms

adjusted ebitda financial

"Total third quarter 2026 consolidated Adjusted EBITDA was $80.4 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-gaap financial measure financial

"consolidated Adjusted EBITDA is a non-GAAP financial measure"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

return of capital financial

"approximately 76% of this distribution is expected to be considered return of capital"

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

barrels of oil equivalent technical

"average daily production of 27,565 barrels of oil equivalent"

Barrels of oil equivalent (BOE) is a way to measure and compare different types of energy resources, like oil and natural gas, in a common unit. It helps investors understand the total amount of energy a company has or produces, regardless of the resource type, by converting natural gas into a comparable oil amount. This simplifies assessing a company's overall energy assets and making informed investment decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Record Q3 2026 Daily Production of 27,565 Boe/d (6:1)

Kimbell Gave Notice to Redeem 50% of the Remaining Series A Cumulative Convertible Preferred Units (the "Preferred Units"); After Closing, the Remaining Outstanding Preferred Units Will Be Less Than 3% of Kimbell's $2.8 Billion Enterprise Value¹

Borrowing Base and Elected Commitments on Kimbell's Secured Revolving Credit Facility Increased from $660 Million to $750 Million

Activity on Acreage Remains Robust with 93 Active Rigs Drilling Representing 16%² Market Share of U.S. Land Rig Count, an Increase of 2 Rigs from Q2 2026 and Record Line-of-Sight Wells

Announces Q3 2026 Cash Distribution of $0.45 per Common Unit

FORT WORTH, Texas, Nov. 5, 2026 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Partnership"), a leading owner of oil and natural gas mineral and royalty interests in more than 137,000 gross wells across 28 states, today announced financial and operating results for the quarter ended September 30, 2026. 

Third Quarter 2026 Highlights

• Record Q3 2026 daily production of 27,565 barrels of oil equivalent ("Boe") per day (6:1)
  • Includes 41 days of production from the Company's $221.2 million Drop Down acquisition (the "Acquired Production"), which closed on August 21, 2026 with an effective date of June 1, 2026
  • Following the closing of the Acquired Production on August 21, 2026, run-rate production was 28,910 Boe per day (6:1)
• Q3 2026 oil, natural gas and NGL revenues of $96.9 million
  • Including the Acquired Production from the effective date through September 30, 2026, Q3 2026 oil, natural gas and NGL revenues were $104.6 million
• Q3 2026 net income of approximately $17.3 million and net income attributable to common units of approximately $12.4 million
• Q3 2026 consolidated Adjusted EBITDA of $80.4 million
  • Including the Acquired Production from the effective date through September 30, 2026, Q3 2026 consolidated Adjusted EBITDA was $87.5 million
• On October 15, 2026, the borrowing base and elected commitments on Kimbell's secured revolving credit facility increased from $660 Million to $750 Million
• On October 16, 2026, Kimbell gave notice to redeem 50% of the remaining Preferred Units. After closing, which is expected to occur on November 16, 2026, the remaining outstanding Preferred Units will be less than 3% of Kimbell's $2.8 billion enterprise value
• As of September 30, 2026, Kimbell's major properties³ had a record 9.37 net DUCs and net permitted locations on its acreage compared to an estimated 8.20 net wells needed to maintain flat production
• As of September 30, 2026, Kimbell had 93 rigs actively drilling on its acreage, an increase of 2 rigs from Q2 2026 and representing approximately 16% market share of all land rigs drilling in the continental United States as of such time
• Announced a Q3 2026 cash distribution of $0.45 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 10.7% annualized yield based on the October 30, 2026 closing price of $16.88 per common unit; Kimbell intends to utilize the remaining 25% of its cash available for distribution to repay a portion of the outstanding borrowings under Kimbell's secured revolving credit facility
• Kimbell affirms its financial and operational guidance ranges for Q4 2026 previously disclosed in its recent guidance press release announced on August 24, 2026

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 another outstanding quarter for Kimbell, which included record production, an increase in our rig count by 2 rigs to 93 rigs actively drilling across our acreage and record line of sight wells. In addition, we provided notice to redeem half of the remaining Preferred Units, which further simplifies our capital structure and reduces our cost of capital. After closing this redemption later this month, the face value of the remaining outstanding Preferred Units will be less than 3% of Kimbell's $2.8 billion enterprise value. Finally, we increased the Company's borrowing base and elected commitments from $660 million to $750 million on Kimbell's secured revolving credit facility.

"We are pleased to declare the Q3 2026 distribution of 45 cents per common unit, reflecting a 10.7% annualized tax advantaged yield based on Kimbell's closing price on October 30, 2026. We estimate that approximately 76% of this distribution is expected to be considered return of capital and not subject to dividend taxes, further enhancing the after-tax return to our common unitholders.

"With the recent surge in oil prices, we expect activity across the lower 48 to remain strong as we complete 2026 and enter 2027, especially in the Permian Basin, which is our largest basin by revenue, production, rig count, DUCs and permits. Based on current quarter oil prices, we expect a material increase in cash flow in Q4 2026, especially since approximately 84% of our estimated Q4 2026 oil production is unhedged. 

"It has been a busy year with M&A and we have now closed $367 million in acquisitions since June 2026. We remain bullish on the U.S. oil and natural gas industry, our role as a leading consolidator in the sector and the prospects for Kimbell to generate long-term unitholder value for years to come."

1	Based on Kimbell's $16.88 per unit closing price as of October 30, 2026.
2	Based on Kimbell rig count of 93 as of September 30, 2026 and Baker Hughes U.S. land rig count of 586 as of October 2, 2026.
3	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 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 10% to Kimbell's net inventory.

Third 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 75% of cash available for distribution for the third quarter of 2026, or $0.45 per common unit. The distribution will be payable on November 23, 2026 to common unitholders of record at the close of business on November 16, 2026. Kimbell plans to utilize the remaining 25% of cash available for distribution for the third quarter of 2026 to pay down approximately $18.8 million of the outstanding borrowings under its secured revolving credit facility. 

Kimbell expects that approximately 76% of its third quarter 2026 distribution should not constitute dividends for U.S. federal income tax purposes, but instead is estimated to constitute a non-taxable reduction to the basis of each distribution recipient's ownership interest in Kimbell common units. The reduced tax basis will increase unitholders' capital gain (or decrease unitholders' capital loss) when unitholders sell their common units. The Form 8937 containing additional information may be found at www.kimbellrp.com under the "Investor Relations" section of the site. Kimbell currently believes that the portion that constitutes dividends for U.S. federal income tax purposes will be considered qualified dividends, subject to holding period and certain other conditions, which are subject to a tax rate of 0%, 15% or 20% depending on the income level and tax filing status of a unitholder for 2026. Kimbell believes these estimates are reasonable based on currently available information, but they are subject to change.

Financial Highlights

During the third quarter of 2026, the Partnership's total revenues were $86.3 million, net income was approximately $17.3 million and net income attributable to common units was approximately $12.4 million, or $0.12 per common unit.

Excluding the effect of certain prior period adjustments, Kimbell's third quarter 2026 average realized price per Bbl of oil was $86.18, per Mcf of natural gas was $2.21, per Bbl of NGLs was $25.23 and per Boe combined was $40.41.

Total third quarter 2026 consolidated Adjusted EBITDA was $80.4 million (consolidated Adjusted EBITDA is a non-GAAP financial measure. Please see a reconciliation to the nearest GAAP financial measures at the end of this news release).

In the third quarter of 2026, G&A expense was $10.7 million, $6.3 million of which was Cash G&A expense, or $2.48 per Boe (Cash G&A and Cash G&A per Boe are non-GAAP financial measures. Please see definition under Non-GAAP Financial Measures in the Supplemental Schedules included in this news release). Unit-based compensation in the third quarter of 2026, which is a non-cash G&A expense, was $4.4 million or $1.73 per Boe.

As of September 30, 2026, Kimbell had approximately $535.8 million in debt outstanding under its secured revolving credit facility, had net debt to third quarter 2026 trailing twelve month consolidated Adjusted EBITDA of approximately 1.5x and was in compliance with all financial covenants under its secured revolving credit facility. Kimbell had approximately $124.2 million in undrawn capacity under its secured revolving credit facility as of September 30, 2026.

On October 15, 2026, the borrowing base and elected commitments on Kimbell's secured revolving credit facility were increased from $660 million to $750 million in connection with its fall redetermination. In addition, on October 16, 2026, the Company gave notice to redeem 50% of the remaining Preferred Units outstanding, further simplifying its capital structure and lowering its cost of capital. This redemption is expected to close on November 16, 2026 for an aggregate redemption price of approximately $100.2 million, which is expected to be funded with borrowings under the Company's secured revolving credit facility.

As of September 30, 2026 and November 5, 2026, Kimbell had outstanding 105,451,405 common units and 18,752,185 Class B units.

Production

Third quarter 2026 average daily production was 27,565 Boe per day (6:1), which was composed of approximately 45% from natural gas (6:1) and approximately 55% from liquids (34% from oil and 21% from NGLs).

Operational Update

As of September 30, 2026, Kimbell's major properties had 1,005 gross (4.56 net) DUCs and 705 gross (4.81 net) permitted locations on its acreage. In addition, as of September 30, 2026, Kimbell had 93 rigs actively drilling on its acreage, which represents an approximate 15.9% market share of all land rigs drilling in the continental United States as of such time.

Basin	Gross DUCs as of September 30, 2026(1)	Gross Permits as of September 30, 2026(1)	Net DUCs as of September 30, 2026(1)	Net Permits as of September 30, 2026(1)
Permian	679	484	3.14	3.81
Eagle Ford	97	46	0.50	0.11
Haynesville	53	26	0.28	0.22
Mid-Continent	106	67	0.53	0.44
Bakken	66	63	0.07	0.16
Appalachia	4	7	0.04	0.02
Rockies	0	12	0.00	0.05
Total	1,005	705	4.56	4.81

(1)  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 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 10% to Kimbell's net inventory.

Hedging Update

The following provides information concerning Kimbell's hedge book as of September 30, 2026:

Kimbell Royalty Partners
Hedge Program
	Fixed Price Swaps as of September 30, 2026
				Weighted Average
		Volumes		Fixed Price
		Oil	Nat Gas	Oil	Nat Gas
		BBL	MMBTU	$/BBL	$/MMBTU
	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
	3Q 2028	182,712	1,450,656	$       70.31	$          3.54

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 third 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 November 12, 2026 by dialing 201-612-7415 and using the conference ID 13761240#. 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 November 5, 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 more than 137,000 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:
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)
	September 30,
	2026
Assets:
Current assets
Cash and cash equivalents	$	33,744
Oil, natural gas and NGL receivables		68,022
Accounts receivable and other current assets		2,149
Total current assets		103,915
Property and equipment, net		627
Oil and natural gas properties
Oil and natural gas properties (full cost method)		2,633,593
Less: accumulated depreciation, depletion and impairment		(1,240,446)
Total oil and natural gas properties, net		1,393,147
Right-of-use assets, net		4,330
Loan origination costs, net		8,944
Total assets	$	1,510,963
Liabilities, mezzanine equity and unitholders' equity:
Current liabilities
Accounts payable	$	4,040
Other current liabilities		14,714
Derivative liabilities		8,696
Total current liabilities		27,450
Operating lease liabilities, excluding current portion		4,149
Derivative liabilities		3,506
Long-term debt		535,800
Total liabilities		570,905
Commitments and contingencies
Mezzanine equity:
Series A preferred units		159,383
Kimbell Royalty Partners, LP unitholders' equity:
Common units		661,872
Class B units		937
Total Kimbell Royalty Partners, LP unitholders' equity		662,809
Non-controlling interest in OpCo		117,866
Total unitholders' equity		780,675
Total liabilities, mezzanine equity and unitholders' equity	$	1,510,963

 

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
	September 30, 2026			September 30, 2025
Revenue
Oil, natural gas and NGL revenues	$	96,862		$	76,807
Lease bonus and other income		2,605			379
(Loss) gain on commodity derivative instruments, net		(13,134)			3,434
Total revenues		86,333			80,620
Costs and expenses
Production and ad valorem taxes		7,460			5,611
Depreciation and depletion expense		32,889			31,043
Marketing and other deductions		4,001			5,052
General and administrative expense		10,673			10,066
Total costs and expenses		55,023			51,772
Operating income		31,310			28,848
Other expense
Interest expense		(9,662)			(9,782)
Net income before income taxes		21,648			19,066
Income tax expense (benefit)		4,394			(3,257)
Net income		17,254			22,323
Distribution and accretion on Series A preferred units		(2,656)			(2,656)
Net income attributable to non-controlling interests		(2,204)			(2,641)
Distributions to Class B unitholders		(14)			(14)
Net income attributable to common units of Kimbell Royalty Partners, LP	$	12,380		$	17,012
Basic	$	0.12		$	0.19
Diluted	$	0.12		$	0.19
Weighted average number of common units outstanding
Basic		99,787,622			91,170,092
Diluted		129,036,049			118,212,963

 

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
	September 30, 2026			September 30, 2025
Reconciliation of net cash provided by operating activities
to Adjusted EBITDA and cash available for distribution
Net cash provided by operating activities	$	58,125		$	62,763
Interest expense		9,662			9,782
Income tax expense (benefit)		4,394			(3,257)
Amortization of right-of-use assets		(94)			(88)
Amortization of loan origination costs		(531)			(631)
Unit-based compensation		(4,390)			(4,169)
(Loss) gain on derivative instruments, net of settlements		(11,768)			1,793
Changes in operating assets and liabilities:
Oil, natural gas and NGL receivables		14,338			(6,736)
Accounts receivable and other current assets		263			546
Accounts payable		37			(1,382)
Other current liabilities		(5,926)			1,190
Operating lease liabilities		89			80
Consolidated EBITDA	$	64,199		$	59,891
Add:
Unit-based compensation		4,390			4,169
Loss (gain) on derivative instruments, net of settlements		11,768			(1,793)
Consolidated Adjusted EBITDA	$	80,357		$	62,267
Adjusted EBITDA attributable to non-controlling interest		(12,132)			(8,364)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP	$	68,225		$	53,903
Adjustments to reconcile Adjusted EBITDA to cash available
for distribution
Less:
Cash interest expense		7,097			8,292
Cash distribution to Series A preferred unitholders		2,087			2,128
Cash income tax expense		1,621			—
Distribution to Class B unitholders		14			14
Cash available for distribution on common units	$	57,406		$	43,469

 

Kimbell Royalty Partners, LP Supplemental Schedules (Unaudited, in thousands, except for per-unit data and unit counts)
	Three Months Ended
	September 30, 2026
Net income	$	17,254
Depreciation and depletion expense		32,889
Interest expense		9,662
Income tax expense		4,394
Consolidated EBITDA	$	64,199
Unit-based compensation		4,390
Loss on derivative instruments, net of settlements		11,768
Consolidated Adjusted EBITDA	$	80,357
Adjusted EBITDA attributable to non-controlling interest		(12,132)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP	$	68,225
Adjustments to reconcile Adjusted EBITDA to cash available
for distribution
Less:
Cash interest expense		7,097
Cash distribution to Series A preferred unitholders		2,087
Cash income tax expense		1,621
Distribution to Class B unitholders		14
Cash available for distribution on common units	$	57,406
Common units outstanding on September 30, 2026		105,451,405
Common units outstanding on November 16, 2026 Record Date		105,451,405
Cash available for distribution per common unit outstanding	$	0.54
Third quarter 2026 distribution declared (1)	$	0.45

(1)  The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility.  Additionally, Kimbell utilized approximately $7.1 million of cash flows expected to be received from the Q3 2026 Acquired Production from June 1, 2026 to August 20, 2026, to pay outstanding borrowings under its credit facility and to distribute the additional cash flows to common unitholders.  Revenues, production and other financial and operating results from the Q3 2026 acquisition will be reflected in Kimbell's condensed consolidated financial statements from August 21, 2026 onward.

 

Kimbell Royalty Partners, LP Supplemental Schedules (Unaudited, in thousands, except for per-unit data and unit counts)
	Three Months Ended
	September 30, 2025
Net income	$	22,323
Depreciation and depletion expense		31,043
Interest expense		9,782
Income tax benefit		(3,257)
Consolidated EBITDA	$	59,891
Unit-based compensation		4,169
Gain on derivative instruments, net of settlements		(1,793)
Consolidated Adjusted EBITDA	$	62,267
Adjusted EBITDA attributable to non-controlling interest		(8,364)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP	$	53,903
Adjustments to reconcile Adjusted EBITDA to cash available
for distribution
Less:
Cash interest expense		8,292
Cash distribution to Series A preferred unitholders		2,128
Distribution to Class B unitholders		14
Cash available for distribution on common units	$	43,469
Common units outstanding on September 30, 2025		93,396,488
Common units outstanding on November 17, 2025 Record Date		93,396,488
Cash available for distribution per common unit outstanding	$	0.47
Third quarter 2025 distribution declared (1)	$	0.35

(1)  The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility.

 

Kimbell Royalty Partners, LP Supplemental Schedules (Unaudited, in thousands)
	Three Months Ended
	September 30, 2026
Net income	$	17,254
Depreciation and depletion expense		32,889
Interest expense		9,662
Income tax expense		4,394
Consolidated EBITDA	$	64,199
Unit-based compensation		4,390
Loss on derivative instruments, net of settlements		11,768
Consolidated Adjusted EBITDA	$	80,357
Q4 2025 - Q2 2026 Consolidated Adjusted EBITDA (1)		258,528
Trailing Twelve Month Consolidated Adjusted EBITDA	$	338,885
Long-term debt (as of 9/30/26)		535,800
Cash and cash equivalents (as of 9/30/26)		(33,744)
Net debt (as of 9/30/26)	$	502,056
Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA		1.5x

(1)  Consolidated Adjusted EBITDA for each of the quarters ended December 31, 2025, March 31, 2026 and June 30, 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 and the Q3 2026 acquisition that closed in August 2026 in accordance with Kimbell's secured revolving credit facility.

 

 

View original content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-record-third-quarter-2026-results-302930020.html

SOURCE Kimbell Royalty Partners, LP

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Kimbell Royalty Partners pay its Q3 2026 distribution?

Kimbell will pay $0.45 per common unit on November 23, 2026, to holders of record at the close of business November 16. The distribution represents 75% of cash available for distribution and implies a 10.7% annualized yield using the October 30 closing price of $16.88.

How will KRP's Q3 2026 distribution be treated for tax purposes?

Kimbell estimates that approximately 76% of the distribution will reduce holders' tax basis rather than constitute dividends for U.S. federal income tax purposes. A lower basis increases capital gains or reduces capital losses upon sale. These estimates are subject to change.

How much of Kimbell Royalty Partners' estimated Q4 2026 oil production is unhedged?

Approximately 84% of estimated Q4 2026 oil production is unhedged. Fixed-price swaps for that quarter cover 150,144 barrels of oil at a weighted average $63.33 per barrel and 1,324,800 million British thermal units of natural gas at $3.94 per million British thermal units.

What were KRP's Q3 2026 results including acquired production from the acquisition's effective date?

Including acquired production from the June 1, 2026 effective date through September 30, Q3 oil, natural gas and natural gas liquids revenue was $104.6 million, and consolidated adjusted EBITDA was $87.5 million. The acquisition closed August 21, 2026.