Kimbell Royalty Partners LP Dossier
Qualitative Analysis
Business overview
Kimbell Royalty Partners, LP (NYSE: KRP) is a leading master limited partnership (MLP) based in Fort Worth, Texas, that owns and acquires mineral and royalty interests in oil and natural gas properties across the United States. Founded in 1998 and public since 2017, the partnership holds a geographically diverse portfolio spanning over 17 million gross acres across 28 states, including major onshore basins such as the Permian Basin, Mid-Continent, Haynesville, Appalachian Basin, Eagle Ford, Bakken, and DJ Basin. Kimbell operates an asset-light, low-cost business model, collecting royalty payments from operators based on production volumes without directly bearing the capital expenditures or operating costs associated with drilling and completing wells.
Research as of 20 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
Successful amendment, restatement, and extension of the secured revolving credit facility to December 2030.
Expected impact: Reaffirmed the $625 million borrowing base, reduced interest rate spreads by a combined 35 basis points, and increased maximum facility size from $750 million to $1.5 billion, enhancing financial flexibility for future consolidation.
Implementation of a board-authorized common unit buyback program to opportunistically repurchase outstanding units.
Expected impact: Allows the partnership to repurchase up to 6.4% of its outstanding units using cash on hand, free cash flow, or permitted borrowings, optimizing capital allocation.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Recent Acquisitions
Acquisition of high-quality oil and gas mineral and royalty interests spanning approximately 711 net royalty acres across the Delaware and Midland sub-basins of the Permian Basin.
Financial impact: Expected to be immediately accretive to distributable cash flow per unit, generating approximately $23.3 million of next-twelve-months (NTM) cash flow at strip pricing and adding ~1,390 Boe/d of production.
Acquisition of mineral and royalty interests located under the historic Mabee Ranch in the Midland Basin, bolstering the Permian Basin as Kimbell's leading basin.
Financial impact: Significantly increased Permian Basin production, active rig count, DUCs, and undrilled inventory, contributing to record revenues in early 2025.