KRP's record results, organic production growth, and aggressive acquisition pipeline ($360M announced in 90 days) should attract yield-seeking and E&P royalty investors. The 13.0% annualized yield at $14.51 with 1.4x leverage is attractive relative to upstream peers. Watch for completion of the July 17 Drop Down acquisition and any guidance update, which could drive further upside.
Price Chart
Executive Summary
Kimbell Royalty Partners reported record Q2 2026 results with oil, natural gas and NGL revenues of $103.0M (up 38% YoY), net income attributable to common units of $38.4M ($0.40 per unit) versus $2.0M ($0.02) a year ago, and record consolidated Adjusted EBITDA of $84.9M. The company increased its quarterly distribution 15% to $0.47 per unit, raised its credit facility borrowing base from $625M to $660M, and has announced over $360M in acquisitions over the last 90 days including the Mesa Royalties deal that closed on June 22, 2026.
Key Financial Metrics
Key Facts
- Record Q2 2026 oil, natural gas and NGL revenues of $103.0 million vs $74.7 million in Q2 2025 (+38% YoY)
- Record net income of $47.3 million and net income attributable to common units of $38.4 million ($0.40 per common unit)
- Record consolidated Adjusted EBITDA of $84.9 million vs $63.8 million in Q2 2025 (+33% YoY)
- Record cash available for distribution of $60.0 million, up 27% from $47.1 million in Q2 2025
- Q2 2026 cash distribution increased 15% to $0.47 per common unit from $0.41 in Q1 2026, implying 13.0% annualized yield
- Borrowing base and aggregate commitments on credit facility increased from $625 million to $660 million
- Closed $145.9 million acquisition of Mesa Royalties on June 22, 2026, contributing 9 days of production
- Post-acquisition run-rate production of 26,967 Boe/d, up from 25,830 Boe/d average for the quarter
- 91 active rigs drilling on acreage as of June 30, representing 16.2% market share of U.S. land rig count
- Repurchased 500,000 common units for ~$7.4 million during Q2; $85.4 million remaining under buyback program
- Net debt to trailing twelve month consolidated Adjusted EBITDA improved to 1.4x from 1.6x at Q1 2026
- Guidance affirmed for 2026; expects to update upon closing of previously announced Drop Down acquisition
Financial Impact
Revenue +38% YoY to $103.0M; net income attributable to common units swung from $2.0M to $38.4M YoY; distribution +15% QoQ to $0.47/unit implying 13.0% yield; credit facility capacity increased $35M to $660M
Risk Factors
- Commodity price sensitivity: hedging covers only ~1,500 Bbl/d oil and ~1.3M MMBtu/d gas in near term at $63-71/Bbl; a drop in WTI below $60 would pressure cash flows
- Acquisition integration risk: $145.9M Mesa deal and pending Drop Down require successful integration to realize projected synergies and production uplift
- Balance sheet leverage: $478.7M debt outstanding with 1.4x net Debt/EBITDA; debt-funded acquisitions increase refinancing risk if credit markets tighten
- Unit dilution: Class B unit exchanges (2.2M converted post-quarter) increase unit count, diluting distribution per unit growth rate
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-092355 |
| Document: tm2622481d1_8k.htm | 0001104659-26-092355 |
| Document: 0001104659-26-092355-index-headers.html | 0001104659-26-092355 |
| Document: 0001104659-26-092355-index.html | 0001104659-26-092355 |
| Document: 0001104659-26-092355.txt | 0001104659-26-092355 |
| 8-K Data (Synthetic) | 0001104659-26-092355 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | 8-K | $16.39 | awaiting T+60 | — | $16.86 (+2.87%) |
Sep 10, 2026 6w ago | EFFECT | $15.10 | awaiting T+60 | — | $16.86 (−11.66%) |
Aug 24, 2026 9w ago | 8-K | $15.46 | awaiting T+60 | — | $16.86 (+9.06%) |
Aug 7, 2026 11w ago | 8-K | $14.98 | awaiting T+60 | — | $16.86 (+12.55%) |
Jul 17, 2026 14w ago | 8-K | $14.98 $15.43 | ▲ +3.00% | ▼ −1.68% | $16.86 (+12.55%) |
Jul 9, 2026 15w ago | EFFECT | $14.78 $14.58 | ▲ +1.35% | ▲ +2.99% | $16.86 (−14.07%) |
May 19, 2026 22w ago | 8-K | $15.30 $15.11 | ▼ −1.24% | ▼ −7.53% | $16.86 (+10.20%) |
Feb 26, 2026 34w ago | 8-K | $14.13 $15.26 | ▲ +7.96% | ▲ +0.21% | $16.86 (+19.28%) |
US Market Status
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