Kimbell Royalty (NYSE:KRP) Partners LP (NYSE: KRP) is a mineral and royalty company focused on acquiring and managing oil and natural gas royalty interests in the United States. As a master limited partnership, Kimbell Royalty generates fee-like revenues by collecting royalties and overriding royalty interests on production volumes, without directly bearing the capital or operating costs of drilling and completion activities. The partnership’s business model emphasizes steady cash flows and limited downside exposure to commodity price fluctuations.
The company’s asset portfolio spans multiple onshore basins, with a core concentration in Texas and New Mexico. Key regions include parts of the Delaware Basin, the Eagle Ford Shale and Permian Basin, as well as legacy positions in the Barnett Shale and Gulf Coast. Kimbell Royalty builds its acreage positions primarily through acquisitions, purchasing interests from private sellers and public producers in both drill-ready and low-decline areas. This diversified footprint supports a long-term production profile and offers exposure to multiple resource plays across various operators.
Kimbell Royalty Partners launched its initial public offering in January 2016, listing on the New York Stock Exchange under the ticker symbol KRP. The partnership was formed with backing from Kimbell & Co., an energy investment firm founded in 1996, and has grown its interest base through accretive bolt-on acquisitions and disciplined capital allocation. Since inception, the company has completed multiple transactions aimed at extending the life of its reserves and enhancing royalty revenue potential.
Looking ahead, Kimbell Royalty maintains a strategy centered on opportunistic acquisitions of high-quality mineral and royalty assets, balanced with prudent distribution coverage. The company works alongside leading exploration and production companies, leveraging long-standing industry relationships to identify acreage with favorable geology and declining production profiles. As a royalty owner, Kimbell Royalty seeks to deliver predictable cash distributions to unitholders while pursuing portfolio enhancements that support sustainable cash flow growth.
