Kimbell Royalty Partners

Kimbell Royalty Partners (KRP) Q2 2026 Earnings

Reported Aug 7, 2026 at 7:17 AM ET · SEC Source

Q2 26 EPS GAAP

$0.40

BEAT +50.94%

Est. $0.27

Includes $6.112 million net gain on commodity derivative instruments and $4.342 million non-cash unit-based compensation

Q2 26 Revenue

$112.5M

BEAT +21.29%

Est. $92.7M

Market Reaction

Did KRP Beat Earnings? Q2 2026 Results

Kimbell Royalty Partners delivered a sharply improved second quarter for 2026, posting GAAP earnings of $0.40 per diluted common unit, a 50.94% beat against the $0.27 consensus, while revenue of $112.48 million topped estimates by 21.29% and climbed … Read more Kimbell Royalty Partners delivered a sharply improved second quarter for 2026, posting GAAP earnings of $0.40 per diluted common unit, a 50.94% beat against the $0.27 consensus, while revenue of $112.48 million topped estimates by 21.29% and climbed 30.0% from a year ago, a result that will likely quiet the skeptics who had flagged concerns heading into the print after a difficult Q1. The quarter's GAAP figures include a $6.11 million net gain on commodity derivative instruments and $4.34 million in non-cash unit-based compensation. The primary engine behind the outperformance was a combination of organic production growth and the partial-quarter contribution from the $145.90 million Mesa Royalties acquisition, which closed June 22, lifting oil, natural gas, and NGL revenues to $103.05 million and average daily production to 25,830 Boe/d. Consolidated Adjusted EBITDA rose to $84.91 million from $63.84 million a year earlier, while the board declared a $0.47 per common unit distribution, a 15% increase from Q1. Kimbell affirmed its 2026 guidance and said it would update the outlook upon closing the Drop Down acquisition expected later in August, its second major deal in roughly 90 days.

Key Takeaways

  • Record daily production of 25,830 Boe/d with organic production growth even excluding Mesa Royalties acquisition contribution
  • Oil, natural gas and NGL revenues exceeded $100 million for the first time, reaching $103.0 million
  • 91 active rigs drilling on acreage representing approximately 16% market share of U.S. land rig count
  • Cash G&A per Boe of $2.50 remained below midpoint of guidance, generating positive operating leverage
  • Mesa Royalties acquisition closed June 22, 2026 contributing 9 days of production to the quarter
  • Borrowing base and commitments increased from $625 million to $660 million

KRP Forward Guidance & Outlook

Kimbell affirms its financial and operational guidance ranges for 2026 previously disclosed in its Q4 2025 earnings release. The company expects to update guidance upon the closing of the Drop Down acquisition announced on July 17, 2026, which is expected to close later in August 2026. Combined with the Mesa Royalties acquisition, Kimbell has announced over $360 million in acquisitions over the last 90 days. Run-rate production following the Mesa closing was 26,967 Boe/d.

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KRP YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

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KRP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q2 26

“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%.”

— Robert Ravnaas, Q2 2026 Earnings Press Release