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Kimbell raises production outlook after deals
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Kimbell raises production outlook after deals

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  • Kimbell Royalty Partners increased its Q3 and Q4 2026 production outlook after completing two royalty acquisitions valued at about $367.1 million combined.
  • The company expects Q4 2026 net production of 27.7–30.7 Mboe/d, with oil representing 32%–36% of volumes.
  • Kimbell stated it plans to distribute 75% of projected cash available for distribution and use the remaining 25% to reduce debt.

Kimbell Royalty Partners (NYSE:KRP) issued updated third and fourth quarter 2026 guidance after completing the Mesa Acquisition and Drop Down transaction, valued at approximately $145.9 million and $221.2 million respectively.

The acquisitions increased Kimbell’s expected production levels, with Q3 2026 net production guidance set at 26.5–29.5 Mboe/d and Q4 2026 guidance at 27.7–30.7 Mboe/d.

For Q3 2026, Kimbell expects oil to represent 32%–36% of volumes, natural gas 43%–47%, and NGLs 19%–23%, with Q4 expected to maintain the same commodity mix ranges.

Kimbell stated that the updated guidance represents midpoint increases of 10% for Q3 and 15% for Q4 compared with previous 2026 guidance midpoints.

The company projects unit cash G&A of $2.35–$2.55 per Boe in Q3 and $2.25–$2.45 per Boe in Q4, while depreciation and depletion are expected at $13.00–$20 per Boe.

Kimbell stated that it is entitled to cash flow from the acquired interests effective June 1, 2026, and plans to allocate 75% of projected quarterly cash available for distribution to payouts and 25% toward debt reduction.

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