v3.26.1
UNIT-BASED COMPENSATION
6 Months Ended
Jun. 30, 2026
UNIT-BASED COMPENSATION  
UNIT-BASED COMPENSATION

NOTE 13—UNIT-BASED COMPENSATION

The Partnership’s Amended and Restated Kimbell Royalty GP, LLC 2017 Long-Term Incentive Plan (the “A&R LTIP”), authorizes grants of up to an aggregate amount of 4,334,411 common units, after taking into account previously awarded common units, to its employees and directors. The restricted units issued under the Partnership’s A&R LTIP generally vest in one-third installments on each of the first three anniversaries of the grant date, subject to the grantee’s continuous service through the applicable vesting date. Compensation expense for such awards will be recognized over the term of the service period on a straight-line basis over the requisite service period for the entire award. Management elects not to estimate forfeiture rates and to account for forfeitures in compensation cost when they occur.

Distributions related to the restricted units are paid concurrently with the Partnership’s distributions for common units. The fair value of the Partnership’s restricted units issued under the A&R LTIP to the Partnership’s employees and directors is determined by utilizing the market value of the Partnership’s common units on the respective grant date.

The following table presents a summary of the Partnership’s unvested restricted units.

Weighted

  ​ ​ ​

Weighted

Average

Average

Grant-Date

Remaining

Fair Value

Contractual

Units

per Unit

Term

Unvested at December 31, 2025

2,226,396

$

15.847

 

1.575 years

Awarded

1,216,990

14.130

Vested

(1,070,533)

15.531

Unvested at June 30, 2026 (1)

2,372,853

$

15.109

 

2.045 years

(1)As of June 30, 2026, there was $35.9 million of unrecognized compensation expense associated with unvested restricted units based on the weighted average grant date fair value per unit of $15.109.