UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS |
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| UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS | NOTE 11—UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS The Partnership has issued units representing limited partner interests. As of June 30, 2026, the Partnership had a total of 98,652,268 common units issued and outstanding and 16,051,322 Class B units issued and outstanding. On January 9, 2025, the Partnership completed an underwritten public offering of 11,500,000 common units for net proceeds of approximately $163.6 million (the “2025 Equity Offering”). The Partnership used the net proceeds from the 2025 Equity Offering to purchase OpCo common units. The Operating Company ultimately used the net proceeds of the 2025 Equity Offering to fund the Boren Acquisition. On March 6, 2026, the General Partner’s Board of Directors (the “Board of Directors”) approved of a common unit repurchase program (the “Repurchase Program”). The Repurchase Program allows the Partnership to acquire up to $100 million of its outstanding common units, excluding the 1% U.S. federal excise tax on certain repurchases of common units by publicly traded U.S. corporations enacted as part of the Inflation Reduction Act of 2022. The Repurchase Program is authorized to extend through December 31, 2027 and the Partnership intends to purchase common units under the Repurchase Program opportunistically with cash on hand, free cash flow from operations or permitted borrowings under its secured revolving credit facility. The Repurchase Program may be temporarily suspended, modified, extended or discontinued by the Board of Directors. Purchases under the Repurchase Program may be made from time to time in the open market in compliance with Rule 10b-18 under the Exchange Act, or privately negotiated transactions, and will be subject to market conditions, applicable legal requirements, contractual obligations and other factors. Pursuant to the Repurchase Program, on March 19, 2026, the Partnership purchased 500,000 common units at an average purchase price of $14.60, for a total cost of $7.3 million, excluding excise tax. On April 2, 2026, the Partnership purchased 500,000 common units at an average purchase price of $14.70, for a total cost of $7.4 million, excluding excise tax. All units were retired and canceled immediately upon repurchase. The following table summarizes the changes in the number of the Partnership’s common units:
The following table presents information regarding the common unit cash distributions approved by the Board of Directors for the periods presented:
For each Class B unit issued, five cents has been paid to the Partnership as additional consideration (the “Class B Contribution”). Holders of the Class B units are entitled to receive cash distributions equal to 2.0% per quarter on their respective Class B Contribution, subsequent to distributions on the Series A preferred units, but prior to distributions on the common units and OpCo common units. Holders of the Class B units are entitled to one vote per unit on all matters to be voted upon by the unitholders. Holders of the common units and the Class B units generally vote together as a single class on all matters presented to the Kimbell Royalty Partners, LP unitholders for their vote or approval. Holders of Class B units do not have any right to receive dividends or distributions upon a liquidation or winding up of Kimbell Royalty Partners, LP. The Class B units and OpCo common units are exchangeable together into an equal number of common units of the Partnership. Change in Ownership of Consolidated Subsidiaries The following table summarizes the changes in common unitholders' equity due to changes in ownership interest during the period:
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