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Kimbell Royalty Partners Q3 production sets record

By Reuters News


Overview

  • U.S. oil and gas royalty firm's Q3 daily production hit a record 27,565 Boe/d

  • Q3 adjusted EBITDA missed analyst expectations

  • Company to redeem 50% of remaining preferred units, further simplifying capital structure


Outlook

  • Kimbell affirms its financial and operational guidance ranges for Q4 2026

  • Company expects strong activity in the lower 48 and Permian Basin through early 2027

  • Company expects a material increase in Q4 2026 cash flow due to higher oil prices


Result Drivers

  • RECORD PRODUCTION - Co said Q3 daily production reached a record 27,565 Boe/d

  • ACQUISITION IMPACT - Q3 results included production from recent $221.2 mln acquisition

  • INCREASED DRILLING - Co reported 93 rigs actively drilling, up 2 rigs from Q2, supporting production


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$17.25 mln

Q3 Adjusted EBITDA

Miss

$80.36 mln

$86.22 mln (7 Analysts)

Q3 EBITDA

$64.20 mln

Q3 Operating Income

$31.31 mln

Q3 Pretax Profit

$21.65 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the integrated oil & gas peer group is "buy"

  • Wall Street's median 12-month price target for Kimbell Royalty Partners, LP is $19.00, about 22.7% above its November 4 closing price of $15.48

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

  • Nov 2 - Topaz Energy Q3 adjusted profit beats estimates as royalty production rises

  • Nov 2 - Diamondback Energy Q3 revenue beats on higher oil output

  • Nov 4 - Texas Pacific Land's Q3 revenue rises on increase in oil and gas royalties


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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