Kimbell Royalty Partners Representing Partner Interests Stock Earnings Reports

Kimbell Royalty Partners reported a strong Q1 2026: production of 25,522 BOE/d exceeded guidance midpoint and oil, gas, and NGL revenues were $82.9 million. Management declared a Q1 distribution of $0.41/unit (up 11% QoQ), representing an approximate 11% annualized tax-advantaged yield based on the prior close; they estimate ~72% of the distribution is return of capital. Consolidated adjusted EBITDA was $68 million. Cash G&A was low at $5.3 million ($2.31/BOE), demonstrating operating leverage. The company repurchased 500k common units in Q1 for $7.3 million and maintains authorization for additional buybacks, but said they will use 75% of cash available for distribution to pay the dividend and the remaining 25% to pay down debt or opportunistically repurchase units. Net debt was $440.9 million on the revolver (net leverage ~1.6x EBITDA) with $184.1 million undrawn capacity. Management affirmed 2026 guidance and highlighted robust drilling activity (85 rigs on their acreage, ~16% of U.S. land rigs) and a large line-of-sight DUC/permit inventory—predominantly Permian—that could accelerate if higher oil prices persist. Management remains bullish on consolidation opportunities in the large U.S. royalty market and is actively evaluating acquisitions.