Kimbell Royalty Partners, LP Q1 FY2026 earnings call

• Strong first quarter results with production exceeding guidance midpoint. • Active rig count strong with 85 rigs drilling, 16% market share of U.S. land rigs. • Declared Q1 2026 distribution of 41 cents per common unit, up 11% from Q4 2025. • Expect higher oil prices to support modest uptick in activity in oil-weighted basins. • Bullish on U.S. oil and natural gas royalty industry and role as leading consolidator. • Repurchased common stock in first quarter, showing confidence in business strength. • Affirmed 2026 financial and operational guidance ranges. • Excited about position as leading consolidator in fragmented U.S. oil and natural gas royalty sector with over $850 billion size.

Oil, natural gas, and NGO revenues totaled $82.9 million during the first quarter. Run rate production was 25,522 BOE per day, which exceeded the midpoint of guidance. First quarter general and administrative expenses were $9.4 million, with $5.3 million being cash G&A expense or $2.31 per BOE. Total first quarter consolidated adjusted EBITDA was 68 million. Q1 2026 distribution was 41 cents per common unit, up 11% from Q4 2025. Approximately 72% of this distribution is expected to be return of capital. Repurchased and canceled 500,000 units of common stock for ~$7.3 million at an average price of $14.60 per unit. Debt outstanding under secured revolving credit facility was ~$440.9 million at March 31, 2026, with net debt to trailing 12-month consolidated adjusted EBITDA of ~1.6 times and ~$184.1 million undrawn capacity.

• Affirmed financial and operational guidance ranges for 2026. • Expect higher oil prices to support modest uptick in activity across oil-weighted basins. • Confident about prospects for continued development in 2026 given active rigs and line-of-sight wells exceeding maintenance well count.

Q: Asked about activity in other basins besides Permian and M&A front.

A: Seeing activity in Bakken, Eagleford, MidCon. Actively evaluating M&A opportunities, increase in oil price makes sellers more willing but volatility is a factor.

Q: Asked about repurchases vs debt pay down.

A: Want to be opportunistic with repurchases, 75% payout to dividends not diverted to repurchases, will weigh 25% free cash component between debt pay down and repurchases.

Q: Asked about outlook for remainder of year and cycle times.

A: Expect increased activity, historically ducts come online in ~6 months, permits up to a year, stronger commodity environment may accelerate timelines, net duck and permit inventory doesn't include minor properties which could add 20%