Kimbell Royalty Partners, LP (KRP) · Oct 16, 2026 · Other events
Preferred redemption — 81,250 units redeemed for approximately $100.2 million
Kimbell Royalty Partners announced a $100.2 million preferred-unit redemption. The move simplifies the capital stack, but it will be funded with revolver borrowings.
Kimbell is a mineral-and-royalty owner pursuing growth through acquisitions across U.S. oil and gas basins; its capital structure already includes a secured revolver used to fund that expansion. The company reported approximately $478.7 million of revolver debt at June 30, 2026, against $625 million of elected commitments, so this redemption is meaningful financing activity rather than routine housekeeping.
The preferred-equity balance is being reduced, not eliminated. Kimbell is calling 81,250 Series A preferred units—half of the 162,500 units still outstanding—for redemption on November 16, 2026 at $1,233.37895 per unit, or approximately $100.2 million. This continues the staged retirement begun in May 2025, so the direction is partly established; the new information is the timing and size of this second redemption.
The trade-off is capital-stack simplification for higher revolver usage. The filing explicitly says the $100.2 million payment is expected to come from borrowings under the revolving credit facility. 〔0〕 That removes half of the remaining preferred units and their senior distribution claim, but replaces that capital with secured debt and interest expense. Using the June 30 debt balance only as a reference point, the transaction would put borrowings near $579 million before any intervening changes—leaving materially less room beneath the $625 million elected commitment.
| Filing item | Amount / detail |
|---|---|
| Preferred units called | 81,250 |
| Share of outstanding preferred units called | 50% |
| Redemption price per unit | $1,233.37895 |
| Aggregate redemption price | Approximately $100.2 million |
| Redemption date | November 16, 2026 |
Bottom line: This is a constructive cleanup of an expensive senior-equity layer, but not a free deleveraging move: Kimbell is funding it with more revolver debt. The business story advances only modestly because the preferred units are reduced while balance-sheet flexibility tightens at the same time.
November 16, 2026 redemption date
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