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Kimbell Royalty Partners expects stable 2026 production with 30% higher distributions amid rising oil prices

Analyst Insights
30 Mar 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Kimbell Royalty Partners projects its 2026 production to be similar to 2025, with oil comprising 32% of output and about 20% of oil production hedged. The company anticipates average quarterly distributions of $0.47 per unit in 2026, a 30% increase from the second half of 2025, with potential to rise to $0.54 if oil prices improve further. The valuation for Kimbell has been raised from $16.50 to $17.50 per unit due to higher expected 2026 WTI oil prices, currently around $84 per barrel. An optimistic scenario with $95 WTI oil in 2026 could increase the valuation to $19.00 per unit, highlighting the company's sensitivity to oil price fluctuations.

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