Kimbell Royalty Partners

KRP

Market cap $1.48B

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HIGHLIGHTS Expected to be immediately accretive to distributable cash flow per unit1 Transaction expected to be funded with approximately 70% newly issued OpCo units directly to seller and 30% cash Targeted oil and natural gas mineral and royalty interests located across the Permian Basin, with over 2,300 gross producing wells and over 600 undeveloped locations Estimated $23.3 million of NTM cash flow at strip pricing as of May 15, 20262 FORT WORTH, Texas, May 19, 2026 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and gas mineral and royalty interests in over 17 million gross acres in 28 states, today announced that it has agreed to acquire mineral and royalty interests ("acquired assets") from Mesa Royalties (portfolio companies of funds managed by NGP), in a cash and unit transaction valued at approximately $147.0 million3, subject to purchase price adjustments and other customary closing adjustments (the "Acquisition").  The purchase price for the Acquisition is comprised of $44.0 million in cash (approximately 30% of the total consideration) and approximately 6.9 million newly issued common units of Kimbell Royalty Operating, LLC ("OpCo") valued at $103.0 million.

[key points] Oil is back in the headlines, and royalty trusts are quietly soaking up the rebound.

The Undercovered Dozen series spotlights 12 lesser-covered stocks from the past week on Seeking Alpha. This week's edition covers articles published between May 1 and May 7, offering fresh investment ideas. The focus is on stocks that may offer unique opportunities due to limited analyst coverage.

From a technical perspective, Kimbell Royalty (KRP) is looking like an interesting pick, as it just reached a key level of support. KRP recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

Kimbell Royalty NYSE: KRP reported first-quarter results that management said reflected stronger-than-expected production, continued drilling activity across its mineral and royalty acreage and a higher quarterly distribution to common unitholders.

Kimbell Royalty Partners, LP Common Units (KRP) Q1 2026 Earnings Call Transcript

Kimbell Royalty (KRP) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.2 per share a year ago.

Q1 2026 Run-Rate Daily Production of 25,522 Boe/d (6:1) Activity on Acreage Remains Robust with 85 Active Rigs Drilling Representing 16% 1  Market Share of U.S. Land Rig Count Announces Q1 2026 Cash Distribution of $0.41 per Common Unit FORT WORTH, Texas, May 7, 2026 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Partnership"), a leading owner of oil and natural gas mineral and royalty interests in over 133,000 gross wells across 28 states, today announced financial and operating results for the quarter ended March 31, 2026.  First Quarter 2026 Highlights Q1 2026 run-rate daily production of 25,522 barrels of oil equivalent ("Boe") per day (6:1) Q1 2026 oil, natural gas and NGL revenues of $82.9 million Q1 2026 net income of approximately $6.9 million and net income attributable to common units of approximately $4.0 million Q1 2026 consolidated Adjusted EBITDA of $68.0 million Cash G&A per BOE of $2.31 in Q1 2026, below low-end of guidance reflecting operational discipline and positive operating leverage As of March 31, 2026, Kimbell's major properties2 had 6.85 net DUCs and net permitted locations on its acreage compared to an estimated 6.80 net wells needed to maintain flat production As of March 31, 2026, Kimbell had 85 rigs actively drilling on its acreage, representing approximately 16% market share of all land rigs drilling in the continental United States as of such time Announced a Q1 2026 cash distribution of $0.41 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 11.2% annualized yield based on the May 6, 2026 closing price of $14.59 per common unit; Kimbell intends to utilize the remaining 25% of its cash available for distribution to repay a portion of the outstanding borrowings under Kimbell's secured revolving credit facility During Q1 2026, Kimbell repurchased and cancelled 500,000 of its common units for an aggregate purchase price of approximately $7.3 million (average price of $14.60 per unit) Kimbell affirms its financial and operational guidance ranges for 2026 previously disclosed in its Q4 2025 earnings release _________________________ 1 Based on Kimbell rig count of 85 and Baker Hughes U.S. land rig count of 530 as of March 31, 2026.

Investors need to pay close attention to KRP stock based on the movements in the options market lately.