Kimbell Royalty Partners raised its production guidance for the third and fourth quarters of 2026 following the completion of two acquisitions in June.
The company, which holds royalty and mineral interests across more than 17 million gross acres in 28 U.S. states, now projects net production of 26.5 to 29.5 thousand barrels of oil equivalent per day in the third quarter. That represents a 10% increase from the midpoint of its prior 2026 outlook issued with fourth-quarter 2025 results. For the fourth quarter, Kimbell forecasts 27.7 to 30.7 thousand boe/d, a 15% rise from the previous range.
Production composition is expected to remain consistent, with oil accounting for 32% to 36%, natural gas 43% to 47%, and natural gas liquids 19% to 23% in both quarters.
Kimbell completed the acquisition of Mesa Royalties for approximately $145.9 million in cash and units on June 22, followed by the purchase of affiliated sellers' royalties for roughly $221.2 million in a similar structure. Cash flow entitlement from both transactions began on June 1, the company said.
The company plans to distribute 75% of projected available cash for distribution through quarterly payments, with the remaining 25% allocated to reducing borrowings under its secured revolving credit facility. Cash general and administrative expenses are projected to fall from $2.35-$2.55 per boe in the third quarter to $2.25-$2.45 per boe in the fourth quarter.
