Kimbell Royalty Partners — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenues were $86.3 million, compared to $80.6 million in the third quarter of 2025.
• Oil, natural gas, and NGL revenues were $96.9 million; including the Acquired Production effective date through September 30, 2026, these revenues were $104.6 million.
• Net income was approximately $17.3 million, compared to $22.3 million in the prior year period.
• Net income attributable to common units was approximately $12.4 million ($0.12 per unit), compared to $17.0 million ($0.19 per unit) in the prior year period.
• Consolidated Adjusted EBITDA was $80.4 million, compared to $62.3 million in the third quarter of 2025; including the Acquired Production effective date through September 30, 2026, Adjusted EBITDA was $87.5 million.
• Cash G&A expense was $6.3 million ($2.48 per Boe), compared to $5.9 million in the prior year period.
• Unit-based compensation was $4.4 million ($1.73 per Boe).
• Debt outstanding was $535.8 million as of September 30, 2026, with net debt to trailing twelve-month consolidated Adjusted EBITDA of approximately 1.5x.
• Undrawn capacity under the secured revolving credit facility was $124.2 million as of September 30, 2026.
• Average realized prices per Boe were $40.41, with oil at $86.18 per Bbl, natural gas at $2.21 per Mcf, and NGLs at $25.23 per Bbl.

Guidance and Future Outlook

• Kimbell affirms its previously disclosed financial and operational guidance ranges for the fourth quarter of 2026.
• Management expects a material increase in cash flow in Q4 2026, driven by a surge in oil prices and the fact that approximately 84% of estimated Q4 2026 oil production is unhedged.
• Management anticipates strong activity across the lower 48 states into 2027, particularly in the Permian Basin.

Business Segments and Product Lines

• Daily production averaged 27,565 Boe/d (6:1) for the quarter, composed of approximately 55% liquids (34% oil, 21% NGLs) and 45% natural gas.
• Run-rate production following the August 21, 2026 acquisition closing was 28,910 Boe/d.
• The $221.2 million Drop Down acquisition contributed 41 days of production to the quarter.
• Major properties held 1,005 gross DUCs (4.56 net) and 705 gross permitted locations (4.81 net) as of September 30, 2026.
• The Permian Basin remains the largest basin by revenue, production, rig count, DUCs, and permits.
• Hedging book as of September 30, 2026, includes fixed price swaps for oil ranging from $58.06 to $70.35 per Bbl and natural gas ranging from $3.15 to $4.46 per MMBTU through Q3 2028.

Market and Competitive Landscape

• Kimbell had 93 rigs actively drilling on its acreage as of September 30, 2026, representing approximately 16% market share of all U.S. land rigs.
• The rig count increased by 2 rigs from Q2 2026.
• Major properties had a record 9.37 net DUCs and net permitted locations compared to an estimated 8.20 net wells needed to maintain flat production.

Risks and Challenges

• Forward-looking statements highlight risks including declines in oil and natural gas prices, which could lead to downward revisions in proved reserve values or cause operators to delay drilling.
• Risks include potential impairment of oil and natural gas properties, changes in U.S. trade policy and tariffs, and the availability of capital for drilling operations.
• Operational risks include fire, explosion, blowouts, pipe failure, and environmental hazards.
• Risks related to borrowing base redeterminations by lenders and the ability to meet financial covenants under the credit agreement.
• Risks associated with the integration of acquired assets and the realization of anticipated benefits from M&A activity.

Management Commentary and Tone

• Chairman and CEO Robert Ravnaas described the quarter as "outstanding," citing record production, increased rig count, and record line-of-sight wells.
• Management expressed confidence in the U.S. oil and natural gas industry, describing themselves as "bullish" on the sector and their role as a leading consolidator.
• Management noted that the redemption of Preferred Units will simplify the capital structure and reduce the cost of capital.
• Management highlighted that approximately 76% of the Q3 2026 distribution is expected to be a non-taxable return of capital.

Other Key Points

• On October 15, 2026, the borrowing base and elected commitments on the secured revolving credit facility were increased from $660 million to $750 million.
• On October 16, 2026, Kimbell gave notice to redeem 50% of the remaining Series A Cumulative Convertible Preferred Units; the redemption is expected to close on November 16, 2026, for approximately $100.2 million.
• After the redemption closes, remaining Preferred Units will represent less than 3% of Kimbell's $2.8 billion enterprise value.
• The Board declared a Q3 2026 cash distribution of $0.45 per common unit, reflecting a 75% payout ratio of cash available for distribution.
• Kimbell intends to use the remaining 25% of cash available for distribution to repay approximately $18.8 million of outstanding borrowings.
• Total acquisitions closed since June 2026 amount to $367 million.
• The distribution is payable on November 23, 2026, to unitholders of record on November 16, 2026.