Kimbell Royalty Partners, LP (KRP) is a company that is at the forefront in the ownership and acquisition of mineral and royalty interests in oil and gas properties. The company functions as a leading oil and gas mineral and royalty trust in the United States and holds a robust portfolio that primarily spreads across top-tier oil and natural gas development areas. The majority of Kimbell's assets are located in the Permian Basin, Eagle Ford Shale and Haynesville Shale.
Founded in 2013, Kimbell Royalty Partners, LP is based in Fort Worth, Texas. It operates as a limited partnership, a form of business structure that balances long-term profitability and liquidity. The company effectively distributes a substantial part of its cash flow to unitholders, and therefore, holds a reputation for providing a high-yield return to investors. As of 2022, Kimbell Royalty Partners has an estimated share market capitalization of over $1 billion.
Kimbell Royalty Partners conducts a strategy to acquire high-quality oil and gas properties with the potential for significant future development. In doing so, it aims to provide its partners with a robust distribution growth and diversification. A key feature of its operational model is that the company doesn't bear any drilling or completion costs – it simply earns royalties from oil and gas companies that drill and operate on its lands.
In acquiring royalty interests, Kimbell Royalty Partners benefits from direct exposure to commodity prices since royalties are typically calculated as a percentage of the total production value. This makes the company's revenue strongly correlated with oil and natural gas prices, giving KRP a natural hedge against inflation.
Kimbell's portfolio encompasses a diverse span of major onshore basins in the continental United States. As of late 2021, the company holds interests in over 13 million gross acres in 28 states. This diversified portfolio not only reduces the company's dependence on any single asset but also provides a solid foundation for sustainable growth.
Kimbell Royalty Partners, LP remains dedicated to its core principles of stewardship, transparency, integrity, and building long-term value for its unitholders. Its clear and focused growth strategy, coupled with a commitment to responsible business practices, has allowed the company to navigate the complex landscape of the oil and gas industry and to continue to prosper in an otherwise volatile market.