Kimbell Royalty Partners, LP Earnings Per Share Disclosure
NOTE 11—EARNINGS (LOSS) PER COMMON UNIT
Basic earnings (loss) per common unit is calculated by dividing net income attributable to common units by the weighted-average number of common units outstanding during the period. Diluted net income per common unit gives effect, when applicable, to unvested restricted units granted under the Partnership’s A&R LTIP (as defined in Note 12) for its employees and directors and potential conversion of Series A preferred units and Class B units. The Partnership uses the “if-converted” method to determine the potential dilutive effect of exchanges of outstanding Series A preferred units and Class B units (and corresponding units of Kimbell Royalty Partners, LP), and the treasury stock method to determine the potential dilutive effect of vesting of outstanding restricted units granted under the Partnership’s LTIP. The Partnership does not use the two-class method because the Class B units and the unvested restricted units granted under the Partnership’s A&R LTIP are nonparticipating securities.
The following table summarizes the calculation of weighted average common units outstanding used in the computation of diluted earnings (loss) per common unit:
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
(In thousands) | |||||||||
Net income (loss) attributable to common units of Kimbell Royalty Partners, LP | $ | 56,037 | $ | (8,839) | $ | 60,142 | |||
Net adjustment to accretion of redeemable non-controlling interest in Kimbell Tiger Acquisition Corporation and write-off of deferred underwriting commissions | — | — | 1,572 | ||||||
Net (loss) income attributable to common units of Kimbell Royalty Partners, LP after accretion of redeemable non-controlling interest in Kimbell Tiger Acquisition Corporation and write-off of deferred underwriting commissions | 56,037 | (8,839) | 61,714 | ||||||
Distribution and accretion on Series A preferred units | 34,852 | 21,091 | 6,310 | ||||||
Net income (loss) attributable to non-controlling interests in OpCo and distribution to Class B unitholders | 8,762 | (1,182) | 16,554 | ||||||
Diluted net income attributable to common units of Kimbell Royalty Partners, LP | $ | 99,651 | $ | 11,070 | $ | 84,578 | |||
Weighted average number of common units outstanding: | |||||||||
Basic | 90,803 | 76,240 | 66,595 | ||||||
Effect of dilutive securities: | |||||||||
Series A preferred units | 14,506 | 21,566 | 6,500 | ||||||
Class B units | 14,495 | 17,116 | 18,851 | ||||||
Restricted units | 1,503 | 1,127 | 1,112 | ||||||
Diluted | 121,307 | 116,049 | 93,058 | ||||||
Net income per unit attributable to common units of Kimbell Royalty Partners, LP | |||||||||
Basic | $ | 0.62 | $ | (0.12) | $ | 0.93 | |||
Diluted | $ | 0.62 | $ | (0.12) | $ | 0.91 | |||
The calculation of diluted net income per share for the years ended December 31, 2025 and 2023 includes the conversion of Series A preferred units to common units and Class B units to common units calculated using the “if-converted” method and units of unvested restricted units calculated using the treasury stock method. The calculation of diluted net loss per share for the year ended December 31, 2024 excludes the conversion of Series A preferred units to common units, the conversion of Class B units to common units and unvested restricted units because their inclusion in the calculation would be anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.