Kimbell Royalty Partners (NYSE: KRP) lifts Q2 payout after record quarter
Rhea-AI Filing Summary
Kimbell Royalty Partners reported record second quarter 2026 results, with total revenues of $112.5 million, including oil, natural gas and NGL revenues exceeding $100 million for the first time. Net income was $47.3 million, or $0.40 per common unit, and consolidated Adjusted EBITDA reached $84.9 million. Average daily production was 25,830 Boe/d, 53% liquids and 47% natural gas.
The board approved a Q2 2026 cash distribution of $0.47 per common unit, a 15% increase from Q1 2026 and equal to 75% of cash available for distribution. Cash available for distribution was $59.98 million, or $0.59 per common unit. Approximately 47% of the distribution is expected to be treated as tax-advantaged return of capital, and the annualized yield was cited at 13.0% based on the August 6, 2026 closing price.
Kimbell increased the borrowing base and commitments on its secured revolving credit facility from $625 million to $660 million, ending the quarter with $478.7 million of debt, $433.8 million of net debt and a net debt to trailing twelve month consolidated Adjusted EBITDA ratio of 1.4x. The company repurchased and cancelled 500,000 common units for about $7.4 million and reported 91 rigs active on its acreage, representing roughly 16% of U.S. land rig activity, while announcing over $360 million of acquisitions in the last 90 days.
Positive
- Second quarter 2026 delivered record financial results, including total revenues of $112.5 million, net income of $47.3 million and consolidated Adjusted EBITDA of $84.9 million, all above the prior-year quarter.
- The quarterly cash distribution increased 15% from Q1 2026 to $0.47 per common unit, based on cash available for distribution of $59.98 million, with management citing a 13.0% annualized yield.
- Approximately 47% of the Q2 2026 distribution is expected to be treated as return of capital for U.S. federal income tax purposes, which can be more tax-advantaged than ordinary dividends for many unitholders.
- Leverage remained moderate, with net debt of $433.8 million and net debt to trailing twelve month consolidated Adjusted EBITDA of 1.4x, supported by an increased borrowing base of $660 million and ongoing use of 25% of cash available for distribution to reduce debt.
- Kimbell reported record Q2 2026 average daily production of 25,830 Boe/d and strong development activity with 91 active rigs on its acreage, representing about 16% of U.S. land rig count, and announced over $360 million of acquisitions over the past 90 days.
Negative
- None.
Filing Explained
The approved distribution is not yet paid; its debt allocation and post-quarter unit exchange change common-holder mechanics.
As a Form 8-K reporting a specified material event, the August 7 filing places the approved Q2 distribution at a defined next step: unitholders of record on
After quarter-end, holders exchanged
The release reports
8-K Event Classification
Key Figures
Key Terms
consolidated Adjusted EBITDA financial
cash available for distribution financial
Drop Down acquisition financial
non-controlling interest financial
full cost method technical
Earnings Snapshot
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Kimbell Royalty Partners (KRP) key financial results for Q2 2026?
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What was Kimbell Royalty Partners (KRP) leverage position after Q2 2026?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
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or other jurisdiction |
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area code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
Securities registered pursuant to 12(b) of the Act:
| Title of each class: | Trading symbol(s): | Name of each exchange on which registered: |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02. | Results of Operations and Financial Condition. |
On August 7, 2026, Kimbell Royalty Partners, LP (the “Partnership”) issued a news release announcing its second quarter 2026 financial and operating results. A copy of the news release is attached hereto, furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference.
| Item 7.01. | Regulation FD Disclosure. |
Also on August 7, 2026, the Partnership posted an updated investor presentation on its website. The presentation, titled “Fall 2026 Investor Presentation,” may be found at http://www.kimbellrp.com under the “Events and Presentations” section under the “Investor Relations” tab on the Partnership’s website. Investors should note that the Partnership announces financial information in filings with the Securities and Exchange Commission, press releases and public conference calls as well as on its website.
The information contained in Item 2.02, Item 7.01 and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| Number | Description | |
| 99.1 | News release issued by Kimbell Royalty Partners, LP dated August 7, 2026. | |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KIMBELL ROYALTY PARTNERS, LP | ||
| By: | Kimbell Royalty GP, LLC, | |
| its general partner | ||
| By: | /s/ Matthew S. Daly | |
| Matthew S. Daly | ||
| Chief Operating Officer | ||
| Date: August 7, 2026 | ||
Exhibit 99.1
NEWS RELEASE
Kimbell Royalty Partners Announces Record Second Quarter 2026 Results
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 $625 million to $660 million
Activity on Acreage Remains Robust with 91 Active Rigs Drilling Representing 16%1 Market Share of U.S. Land Rig Count
Announces Q2 2026 Cash Distribution of $0.47 per Common Unit, an Increase of 15% from Q1 2026
FORT WORTH, Texas, August 7, 2026 – Kimbell Royalty Partners, LP (NYSE: KRP) (“Kimbell” or the “Partnership”), a leading owner of oil and natural gas mineral and royalty interests in approximately 135,000 gross wells across 28 states, today announced financial and operating results for the quarter ended June 30, 2026.
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 acquisition of Mesa Royalties (the “Acquired Production”), which closed on June 22, 2026 with an effective date of June 1, 2026 |
| · | Following the closing of the Acquired Production on June 22, 2026, run-rate production was 26,967 Boe per day (6:1) |
| · | Record Q2 2026 oil, natural gas and NGL revenues of $103.0 million |
| · | Q2 2026 net income of approximately $47.3 million and net income attributable to common units of approximately $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 to $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 continental United States as of such time |
1 Based on Kimbell rig count of 91 and Baker Hughes U.S. land rig count of 561 as of June 30, 2026.
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 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell’s net inventory.
| Kimbell Royalty Partners, LP – News Release |
| Page 2 |
| · | Announced a Q2 2026 cash distribution of $0.47 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 13.0% annualized yield based on the August 6, 2026 closing price of $14.51 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 |
| · | During Q2 2026, Kimbell repurchased and cancelled 500,000 of its common units for an aggregate purchase price of approximately $7.4 million (average price of $14.70 per unit) |
| · | 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 |
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 $625 million to $660 million and repurchasing and cancelling 500,000 units under our unit repurchase program. Even excluding any uplift from the Acquired Production in the Mesa Royalties acquisition, our production grew organically in Q2 2026, resulting in oil, natural gas and NGL revenues exceeding $100 million for the first time, while cash G&A per BOE remained below the mid-point of guidance, generating positive operating leverage and distribution growth. Kimbell’s active rig count remains robust with 91 rigs drilling across our acreage, led by the Permian Basin, and our market share of U.S. land rigs remained at 16%.
“We are pleased to declare the Q2 2026 distribution of 47 cents per common unit, an increase of 15% from Q1 2026 and reflecting a 13.0% annualized tax advantaged yield based on Kimbell’s closing price on August 6, 2026. We estimate that approximately 47% 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 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 $360 million in acquisitions over the last 90 days, once again demonstrating our role as a leading consolidator in the U.S. oil and natural gas royalty industry. We look forward to continuing this operational momentum and generating unitholder value for years to come.”
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 75% of cash available for distribution for the second quarter of 2026, or $0.47 per common unit. The distribution will be payable on August 24, 2026 to common unitholders of record at the close of business on August 17, 2026. Kimbell plans to utilize the remaining 25% of cash available for distribution for the second quarter of 2026 to pay down approximately $17.9 million of the outstanding borrowings under its secured revolving credit facility.
| Kimbell Royalty Partners, LP – News Release |
| Page 3 |
Kimbell expects that approximately 47% of its second quarter 2026 distribution should not constitute dividends for U.S. federal income tax purposes, but instead are estimated to constitute non-taxable reductions 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 “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
Kimbell’s second quarter 2026 average realized price per Bbl of oil was $94.67, per Mcf of natural gas was $2.01, per Bbl of NGLs was $29.12 and per Boe combined was $42.87.
During the second quarter of 2026, the Partnership’s total revenues were $112.5 million, net income was approximately $47.3 million and net income attributable to common units was approximately $38.4 million, or $0.40 per common unit.
Total second quarter 2026 consolidated Adjusted EBITDA was $84.9 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 second quarter of 2026, G&A expense was $10.2 million, $5.9 million of which was Cash G&A expense, or $2.50 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 second quarter of 2026, which is a non-cash G&A expense, was $4.3 million or $1.85 per Boe.
During the second quarter of 2026, Kimbell repurchased and cancelled 500,000 of its common units for an aggregate purchase price of approximately $7.4 million (average price of $14.70 per unit). As of June 30, 2026, Kimbell is authorized to repurchase an additional approximately $85.4 million of its common units under its repurchase program. The repurchase was funded by a draw on the Partnership’s secured revolving credit facility.
As of June 30, 2026, Kimbell had approximately $478.7 million in debt outstanding under its secured revolving credit facility, had net debt to second quarter 2026 trailing twelve month consolidated Adjusted EBITDA of approximately 1.4x and was in compliance with all financial covenants under its secured revolving credit facility. Kimbell had approximately $181.3 million in undrawn capacity under its secured revolving credit facility as of June 30, 2026.
| Kimbell Royalty Partners, LP – News Release |
| Page 4 |
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 47% from natural gas (6:1) and approximately 53% from liquids (33% from oil and 20% from NGLs).
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 16.2% market share of all land rigs drilling in the continental United States as of such time.
| Basin | Gross DUCs as of June 30, 2026(1) | Gross Permits as of June 30, 2026(1) | Net DUCs as of June 30, 2026(1) | Net Permits as of June 30, 2026(1) | ||||||||||||
| 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 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 15% to Kimbell's net inventory.
| Kimbell Royalty Partners, LP – News Release |
| Page 5 |
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.
| Kimbell Royalty Partners, LP – News Release |
| Page 6 |
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:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
| Kimbell Royalty Partners, LP – News Release |
| Page 7 |
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 – News Release |
| Page 8 |
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 – News Release |
| Page 9 |
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 – News Release |
| Page 10 |
| 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 – News Release |
| Page 11 |
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 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility. Additionally, Kimbell utilized approximately $1.4 million of cash flows expected to be received from the Q2 2026 Acquired Production from June 1, 2026 to June 21, 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 Q2 2026 acquisition will be reflected in Kimbell's condensed consolidated financial statements from June 22, 2026 onward. Furthermore, ownership percentages used to allocate Adjusted EBITDA reflect relative OpCo unit ownership as of June 30, 2026 (common 86%, NCI 14%). Subsequent to quarter-end, holders exchanged 2,243,716 OpCo units/class B units for an equal number of common units. Dividends on common units are determined on the record date. As a result, as of the distribution record date of August 17, 2026, the Company’s economic ownership of OpCo is expected to be approximately 88% and the NCI is 12%.
| Kimbell Royalty Partners, LP – News Release |
| Page 12 |
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 25% of cash available for distribution to pay outstanding borrowings under its secured revolving credit facility.
| Kimbell Royalty Partners, LP – News Release |
| Page 13 |
| 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 | 1.4 | x | ||
(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.