Kimbell Royalty raises 2026 output guidance after two acquisitions

Kimbell Royalty Partners, LP (NYSE: KRP) updated its production guidance for the third and fourth quarters of 2026, following the closing of two mineral and royalty interest acquisitions totaling roughly $367.1 million combined.

The company completed the purchase of mineral and royalty interests from Mesa Royalties, a portfolio of funds managed by NGP, in a cash and unit transaction valued at approximately $145.9 million, with a closing date of June 22, 2026. Kimbell also closed the purchase of certain oil and gas royalty interests from affiliated sellers on August 21, 2026, in a transaction valued at approximately $221.2 million. Both acquisitions carry an effective date of June 1, 2026.

For the third quarter of 2026, Kimbell now projects net production of 26.5 to 29.5 thousand barrels of oil equivalent per day (Mboe/d), reflecting a full quarter from the Mesa acquisition and 41 days from the second transaction. Fourth-quarter net production guidance is set at 27.7 to 30.7 Mboe/d, incorporating full contributions from both deals.

Oil is projected to represent 32% to 36% of net production in both quarters, with natural gas at 43% to 47% and natural gas liquids at 19% to 23%. The updated midpoint figures represent increases of approximately 10% and 15% over prior Q3 and Q4 2026 guidance, respectively, according to the company's statement.

Cash general and administrative costs per barrel of oil equivalent are guided at $2.35 to $2.55 for Q3 and $2.25 to $2.45 for Q4. The company intends to distribute 75% of projected cash available for distribution as quarterly payments and use the remaining 25% to reduce borrowings under its secured revolving credit facility.

Kimbell holds mineral and royalty interests across more than 17 million gross acres in 28 states. The updated guidance figures are based on management estimates and are subject to risks outlined in the company's filings with the Securities and Exchange Commission.

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