Kimbell Royalty Partners, LP is an energy-focused master limited partnership whose core business is the ownership and acquisition of mineral and royalty interests associated with oil and natural gas properties in the United States. The organization traces its roots to a 1998 agreement among Fort Worth investors, while the current ...Kimbell Royalty Partners, LP is an energy-focused master limited partnership whose core business is the ownership and acquisition of mineral and royalty interests associated with oil and natural gas properties in the United States. The organization traces its roots to a 1998 agreement among Fort Worth investors, while the current Delaware limited partnership structure was formed in 2015 and subsequently completed its initial public offering in February 2017. Robert Dean Ravnaas serves as chairman and chief executive officer and is also identified as a co-founder through his role in the predecessor organization, Rivercrest Royalties, LLC.
The company’s principal assets are mineral interests, nonparticipating royalty interests, overriding royalty interests, and related rights. These interests provide Kimbell with a portion of production revenue from wells operated by third-party exploration and production companies. Because Kimbell is primarily a non-operated owner, it generally does not bear the full costs of drilling, completion, production operations, field labor, or large development programs. This creates a relatively asset-light operating model compared with conventional exploration and production companies. The trade-off is that revenue depends on commodity prices, drilling activity, well productivity, operator decisions, and the timing of production from underlying properties.
Kimbell reports a geographically diversified portfolio covering approximately 28 states and every major onshore basin in the continental United States. The supplied company materials describe more than 17 million gross acres and ownership interests in over 133,000 gross wells, with particularly meaningful exposure to the Permian Basin. Earlier disclosed portfolio figures included approximately 11.4 million gross mineral and royalty acres, 4.7 million gross acres of overriding royalty interests, and about 122,000 gross wells, demonstrating portfolio growth through acquisitions and development activity.
The company’s cost structure is primarily influenced by acquisition spending, general and administrative expenses, financing costs, taxes, and distributions to unitholders rather than by direct well-level capital expenditure. The supplied trailing-twelve-month data show a very low capital-expenditure burden, with capital expenditures representing approximately 0.1% of revenue and approximately 0.2% of operating cash flow. Reported trailing metrics include revenue of roughly $3.67 per share, operating cash flow of approximately $2.47 per share, free cash flow of approximately $2.46 per share, an EBITDA margin of about 51.3%, and a net profit margin of about 24.4%. The indicated dividend per share was $1.51, with a dividend yield near 10.1%, although distributions can vary because the partnership’s cash flows are sensitive to commodity prices and production levels.
Kimbell has a small corporate workforce of approximately 29 employees. Its strategic objective is to expand its high-quality mineral and royalty portfolio while maintaining diversification, financial flexibility, and cash distributions. Key risks include oil and natural gas price volatility, changes in U.S. drilling activity, concentration in particular basins or operators, acquisition valuation risk, interest rates, leverage, regulatory changes, and declining production from mature wells. The partnership converted to a taxable entity in 2018 to broaden its potential investor base while continuing to focus on acquiring and owning U.S. energy mineral and royalty assets.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$333.8M
+7.5%
+50.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$90.9M
+642.2%
+524.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+93.9%
+88.0%
+0.3%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+39.8%
+234.1%
+14.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+27.2%
+590.7%
+314.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$245.7M
-2.0%
+38.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+73.6%
-8.8%
-8.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
65.3%
+109.9%
+0.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
8.64x
+29.2%
+42.7%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the Kimbell Royalty Partners Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Zach Vaughan, with Investor Relations. Thank you. You may begin.
Zach Vaughan: Thank you, operator, and good morning, everyone. Welcome to the Kimbell Royalty Partners conference call to review financial and operational results for the second quarter which ended June 30, 2026. This call is also being webcast and could be accessed through the audio link on the Events and Presentations page of the IR section of kimbellrp.com. The information recorded on this call speaks only as of today, August 7, 2026, so please be advised that any time-sensitive information may no longer be accurate as of the date of any replay listening or transcript reading. I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations for future events or future financial performance, are considered forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We will be making forward-looking statements as part of today's call, which by their nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to today's earnings release for our disclosure on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management will also refer to non-GAAP measures, including adjusted EBITDA and cash available for distribution. Reconciliations to the nearest GAAP measures can be found at the end of today's earnings release. Kimbell assumes no obligation to publicly update or revise any forward-looking statements. I would now like to turn the call over to Bob Ravnaas, Kimbell Royalty Partners' Chairman and Chief Executive Officer. Bob?
Bob Ravnaas: Thank you, Zach, and good morning, everyone. We appreciate you joining us this morning. With me today are several members of our senior management team, including Davis Ravnaas, our President and Chief Financial Officer; Matt Daly, our Chief Operating Officer; and Blayne Rhynsburger, our Controller. To start off, 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. We also closed on our previously announced Mesa Royalties acquisition in June, which has begun to contribute nicely to our overall results. And last month we announced the second drop-down acquisition since our IPO. Both of these transactions are expected to add meaningful production and drive cash flow growth for years to come. Production during the quarter grew both …
