Abstract

Kimbell Royalty Partners LP will report on August 07, 2026 Pre-MKt, and this preview summarizes consensus forecasts for revenue, margins, net income and EPS alongside segment dynamics and prevailing analyst opinions from January 31, 2026 to July 31, 2026.

Market Forecast

Consensus for the current quarter points to revenue of 95.10 million US dollars, with EBIT of 42.61 million US dollars and EPS of 0.23; the year-over-year forecast growth rates are 16.36% for revenue, 58.82% for EBIT, and 58.16% for EPS. Based on the company’s last disclosure, the mainline portfolio is expected to be led by oil, natural gas and NGL royalties, with segment momentum underpinned by commodity price stabilization and steady well additions. The most promising area remains oil, natural gas and NGL royalties, which last quarter generated 82.89 million US dollars; growth in this stream depends on operator activity and price realizations year over year.

Last Quarter Review

The latest reported quarter delivered revenue of 65.54 million US dollars, a gross profit margin of 93.01%, GAAP net profit attributable to the parent company of 6.58 million US dollars, a net profit margin of 7.81%, and adjusted EPS of 0.04; year over year, revenue declined 22.17% and adjusted EPS decreased 80.00%. One highlight was the resilient gross margin profile despite softer commodity prices and lower production volumes. Main business performance was dominated by oil, natural gas and NGL royalties at 82.89 million US dollars, while leasing bonuses and other contributed 1.34 million US dollars and commodity derivative losses were 18.68 million US dollars; the derivative line weighed on reported revenue.

Current Quarter Outlook

Main business: oil, natural gas and NGL royalties

Royalty revenue is projected to improve sequentially and year over year, aligning with the consensus estimate of 95.10 million US dollars for total revenue and a 16.36% growth rate. Improved price realizations and a modest uptick in activity across the portfolio’s diversified basin footprint are likely to support volumes, while the business model’s low operating cost base should help preserve a high gross margin. The mix between oil and gas will influence realized prices; a higher oil cut would typically enhance revenue leverage. Operators’ completion schedules and the pace of tied-in wells will be important for near-term volumes.

Most promising segment: core mineral and royalty interests

Within the portfolio, core mineral and royalty interests tied to oil, natural gas and NGLs remain the primary growth driver after posting 82.89 million US dollars last quarter. The current-quarter EPS forecast of 0.23, up 58.16% year over year, and EBIT of 42.61 million US dollars, up 58.82% year over year, imply operating leverage if volumes and prices inflect positively from last year’s trough levels. Sustained development by high-quality operators in key basins can deliver incremental wells without additional capital needs from the partnership, allowing cash flow to expand on relatively fixed costs.

Key stock price drivers this quarter

Investors will watch realized pricing versus benchmark moves, as the translation of commodity futures into realized differentials will influence both revenue and margins. Derivative results could again be a swing factor given last quarter’s 18.68 million US dollars loss, with smaller hedge losses or potential gains offering upside to reported results. Capital allocation commentary, including distribution stability and coverage, may also shape sentiment, while any updates on acquisition activity and inventory depth could affect longer-term growth expectations.

Analyst Opinions

Across recent commentary in the period from January 31, 2026 to July 31, 2026, the balance of opinion skews bullish versus bearish, with the majority citing improving revenue, stronger EBIT and EPS trajectories, and resilient margins. Positive views emphasize the forecasted 16.36% year-over-year revenue increase, the 58.82% EBIT expansion, and expected EPS of 0.23, pointing to operating leverage as production normalizes and price realizations stabilize. Bullish analysts also highlight that the partnership’s high gross margin structure provides downside protection to cash generation, while potential moderation in derivative losses could reduce earnings volatility relative to last quarter. Bearish voices focus on commodity sensitivity and the uncertainty of operator timing, but they are fewer in number in the collected period. Overall, the prevalent stance is constructive into the print, conditioned on stable commodity prices and steady well connections.