KRP
The royalty model is still doing royalty-model things
Kimbell Royalty Partners kicked off 2026 with the kind of update income investors like to pin to their fridge. The partnership said Q1 revenue came in at $82.9 million, Adjusted EBITDA landed at $68.0 million, and run-rate daily production averaged 25,522 Boe/d.
That’s the headline, but the real hook is the cash. Kimbell announced a Q1 cash distribution of $0.41 per common unit, which it says reflects a 75% payout ratio of cash available for distribution. In plain English: it’s still paying owners while keeping some fuel in the tank for debt paydown.
Why investors should care
This is an oil-and-gas royalty business, which means it doesn’t have to drill the wells itself to benefit when activity stays strong. And activity did stay strong: Kimbell said it had 85 active rigs drilling on its acreage, roughly 16% of the U.S. land rig count at quarter-end.
A couple other nuggets from the update:
- Cash G&A per BOE came in at $2.31, below the low end of guidance
- The company repurchased and canceled 500,000 common units for about $7.3 million
- It affirmed its 2026 guidance ranges from the Q4 2025 earnings release
The bottom line
This isn’t a flashy growth story. It’s more like a very disciplined cash-generating machine with oil stains on its boots. For investors, the question is simple: can Kimbell keep production steady enough to support that juicy distribution while also trimming debt and buying back units?
Big picture: if commodity prices don’t throw a tantrum, this update says Kimbell is still doing the slow-and-steady income-investor thing pretty well.