Kimbell Royalty Partners LP

Kimbell Royalty Partners reported record second-quarter results, including oil, natural gas and NGL revenue of $103 million, adjusted EBITDA of $84.9 million, and average daily production of 25,830 barrels of oil equivalent per day, aided by the Mesa Royalties acquisition. The company raised its quarterly distribution 15% to $0.47 per common unit, allocating 75% of cash available for distribution to investors and 25% to debt repayment, while net debt remained at approximately 1.4 times trailing adjusted EBITDA. Kimbell also repurchased 500,000 common units for about $7.4 million and affirmed its 2026 guidance, expecting to update it after closing a July 17 drop-down acquisition. Management noted it remains active in acquisitions, favoring diversified, multi-basin portfolios over expensive Permian-only packages.

Kimbell Royalty Partners has closed its previously announced acquisition of mineral and royalty interests from Mesa Royalties in a cash and unit transaction valued at approximately $145.9 million. The purchase price consisted of $44.0 million in cash and approximately 6.9 million newly issued common units of Kimbell Royalty Operating valued at $101.9 million. Kimbell is entitled to all cash flow from production attributable to the acquired assets since the effective date of June 1, 2026. The acquired assets are expected to produce approximately 1,390 barrels of oil equivalent per day over the next twelve months, with a footprint spanning 16 Permian counties and concentrated 70% in the Delaware Basin and 30% in the Midland Basin.

RBC Capital initiated coverage of Kimbell Royalty Partners with an Outperform rating and a $20 price target, highlighting the partnership's geographically diversified mineral and royalty interests across 28 states and its approximately 11% yield, which ranks among the highest in its peer group. The firm described Kimbell as a compelling yield-oriented investment with exposure to nearly every major onshore U.S. energy basin. Earlier in May, Kimbell announced a $147 million acquisition of mineral and royalty interests from Mesa Royalties, expected to add roughly 1,390 barrels of oil equivalent per day of production and approximately 7.67 million barrels of oil equivalent in proved reserves. Management said the deal will expand the company's footprint to more than 17 million gross acres, over 135,000 gross wells, and approximately 18% of all active land drilling rigs in the continental United States.