Kimbell Royalty Partners, LP (KRP): History, Ownership, Mission, How It Works & Makes Money

Kimbell Royalty Partners, LP (KRP) is a unique entity in the energy space, but how does a company that doesn't drill a single well manage to own royalty interests across over 17 million gross acres in 28 states? In a challenging market, this asset-light model proved resilient, delivering a Q3 2025 run-rate daily production of 25,530 barrels of oil equivalent per day and generating $76.8 million in oil, natural gas, and NGL revenues. If you're looking to understand how this royalty-focused approach translates to a low-capital-intensity business, you need to see the mechanics behind its approximately 16% market share of U.S. land rigs and the consistent cash distribution of $0.35 per common unit, which implies an attractive 10.7% annualized yield.

Kimbell Royalty Partners, LP (KRP) History

You're looking for the bedrock story behind Kimbell Royalty Partners, LP (KRP), and that's smart. Understanding the lineage of a royalty company-how it was built, brick by mineral acre-is defintely key to assessing its risk profile and long-term dividend stability. The short takeaway is this: KRP successfully transitioned from a private, family-influenced investment group into a major, diversified public entity by prioritizing scale and low-cost royalty acquisition over operational risk.

Given Company's Founding Timeline

Year established

While the company's roots trace back to a handshake agreement in 1998, Kimbell Royalty Partners was formally established in 2012 as a distinct entity focused on acquiring and managing oil and gas mineral and royalty interests.

Original location

The company has always maintained its headquarters in Fort Worth, Texas, a city with deep historical ties to the U.S. oil and gas sector.

Founding team members

The formal founding was led by a core team with significant industry experience, including Robert G. Ravnaas (Chairman and CEO), R. Davis Ravnaas (Co-founder, previously CFO), and Brett G. Taylor (Executive Vice Chairman). They drew heavily on the legacy and network of the Kimbell family. That's a powerful combination of capital and expertise.

Initial capital/funding

Specific initial capital figures are not publicly disclosed, but the company's early growth was fueled by the Kimbell family's long-standing connections in the Texas oil and gas sector and a disciplined strategy of acquiring premier, long-life mineral assets. Its expansion was financed through a mix of equity and debt offerings, a model that continues today. For context, the Kimbell Art Foundation held approximately an 18% equity interest at the time of the Initial Public Offering (IPO).

Given Company's Evolution Milestones

Given Company's Transformative Moments

KRP's trajectory has been defined by a few calculated, transformative decisions that cemented its position as a major consolidator in the royalty space. The move to go public in 2017 was the first big one, giving them the currency to buy assets at scale. But the capital structure moves in 2025 show a mature, financially savvy management team.

Here's the quick math on their 2025 financial strength: In Q1 2025, the company reported record oil, natural gas, and NGL revenues of $90.0 million and consolidated Adjusted EBITDA of $75.5 million. This strong performance gave them the confidence to execute on capital optimization.

• The C-Corp Conversion (2018): Switching from a Master Limited Partnership (MLP) tax structure to a C-Corp was a strategic decision to broaden the investor base. It took away the K-1 headache, making the stock more accessible to institutional funds and retail investors who often avoid MLPs.
• The 2025 Capital Optimization: In May 2025, KRP simultaneously redeemed 50% of its Series A Preferred Units and increased its revolving credit facility borrowing base from $550 million to $625 million. This action simplified the capital structure, lowered the cost of capital, and maintained strong liquidity for future acquisitions. That's how you manage a balance sheet.
• Sustained M&A Momentum: The $230 million Midland Basin acquisition in January 2025 was a continuation of their core strategy-buy high-quality, long-life minerals. This aggressive, programmatic M&A approach is why their acreage portfolio grew to over 17 million gross acres across 28 states by Q1 2025.

For a deeper look into the philosophy driving these decisions, you should check out the Mission Statement, Vision, & Core Values of Kimbell Royalty Partners, LP (KRP).

Kimbell Royalty Partners, LP (KRP) Ownership Structure

Kimbell Royalty Partners, LP's (KRP) ownership structure is a blend of institutional, insider, and public interests, which is typical for a publicly traded master limited partnership (MLP) in the energy sector.

This mix ensures a focus on long-term, tax-advantaged cash flow for unitholders while maintaining significant alignment with the founding management team, who hold a substantial stake.

Given Company's Current Status

Kimbell Royalty Partners, LP is a publicly traded limited partnership, listed on the New York Stock Exchange (NYSE) under the ticker symbol KRP. This status means its common units are freely traded, providing liquidity for investors, but it also subjects the company to rigorous public reporting standards with the Securities and Exchange Commission (SEC).

As of late 2025, the company has a market capitalization of approximately $1.23 billion, with about 93.4 million common units outstanding. To be fair, this public structure is a key reason Kimbell has been able to execute over $2.0 billion in mergers and acquisitions since its 2017 Initial Public Offering (IPO), fueling its growth strategy. You can find more on the strategic direction in our Mission Statement, Vision, & Core Values of Kimbell Royalty Partners, LP (KRP).

Given Company's Ownership Breakdown

The company's ownership profile, as of the 2025 fiscal year data, shows a significant portion is held by institutional funds, but the management and board also retain a substantial, aligning stake. Here's the quick math on who owns the units, based on regulatory filings and investor presentations closest to November 2025:

The roughly 10% ownership by management and the board is defintely a strong signal; it means the people steering the ship have their money invested right alongside yours. That level of insider commitment is a powerful incentive for disciplined capital allocation.

Given Company's Leadership

The company is steered by a seasoned executive team with deep roots in the oil and gas industry, particularly in the Fort Worth, Texas area. Their average tenure is about 9.4 years, which shows stability and experience in navigating the commodity cycles.

The key leaders of Kimbell Royalty Partners, LP, who oversee the general partner, Kimbell Royalty GP, LLC, are:

• Robert Ravnaas: Chairman and Chief Executive Officer (CEO) and Co-Founder. He provides the overarching strategy and vision.
• R. Davis Ravnaas: President and Chief Financial Officer (CFO). He manages the financial strategy, including the conservative balance sheet and debt leverage target of 1.6x Net Debt / TTM Adjusted EBITDA as of Q3 2025.
• Matthew S. Daly: Chief Operating Officer (COO) and Secretary. He oversees the day-to-day operations and the management of the vast asset portfolio of over 131,000 gross wells.
• Blayne Rhynsburger: Controller. He ensures the financial reporting and controls are precise.

This leadership structure, with the founding family members in the top roles, is what drives the company's long-term strategy of being a consolidator in the fragmented mineral and royalty sector.

Kimbell Royalty Partners, LP (KRP) Mission and Values

Kimbell Royalty Partners, LP (KRP) centers its purpose on delivering a compelling, risk-adjusted cash yield to its unitholders, which it achieves by aggressively consolidating and efficiently managing a diverse portfolio of premier U.S. mineral and royalty interests.

This focus on income generation, coupled with a non-operating business model, is the core of their cultural DNA, allowing them to provide consistent, tax-advantaged cash distributions while mitigating the direct operational risks and capital expenditures that burden traditional energy producers.

Kimbell Royalty Partners' Core Purpose

You're investing in Kimbell Royalty Partners not just for exposure to commodity prices, but for the stable, high-margin cash flow from its non-operated royalty model. The company's core purpose is to be the ultimate financial steward of its unitholders' capital within the highly fragmented U.S. mineral sector.

The proof is in the numbers. In Q1 2025, Kimbell Royalty Partners reported record oil, natural gas, and NGL revenues of $90.0 million, which directly supported a cash distribution of $0.47 per common unit. That's a clear action mapping to their core purpose: maximize value and deliver cash flow.

Official Mission Statement

Kimbell Royalty Partners' mission is to be a leading owner of mineral and royalty interests in premier U.S. basins, delivering a compelling risk-adjusted cash yield to investors through the efficient acquisition and management of high-quality, long-life assets.

This mission is defintely a roadmap for their acquisition strategy, like the January 2025 purchase of Midland Basin mineral and royalty interests for $230.4 million, which immediately boosted their run-rate daily production. This is how they grow your income stream without you having to worry about drilling costs.

• Acquire and own producing mineral and royalty interests.
• Focus on maximizing value and delivering long-term, sustainable cash flow.
• Adhere to honesty, transparency, and integrity in all operations.

Vision Statement

The company's vision is to be the leading consolidator of mineral and royalty interests in the United States, building a diversified portfolio of high-quality assets and providing a reliable and growing stream of income to its unitholders.

The vision is ambitious, but it's grounded in their current scale: as of early 2025, their portfolio spanned over 17 million gross acres across 28 states, including over 52,000 wells in the Permian Basin alone. That's a massive footprint, and they're leveraging that scale to become the dominant player. For more on who is buying into this vision, check out Exploring Kimbell Royalty Partners, LP (KRP) Investor Profile: Who's Buying and Why?

• Be the foremost consolidator in the U.S. mineral and royalty sector.
• Build a diversified, high-quality asset base for enhanced stability.
• Ensure a reliable and growing income stream for unitholders.

Kimbell Royalty Partners' Core Values

Kimbell Royalty Partners operates on a set of core values that guide its disciplined business approach, especially in its capital allocation strategy and unitholder communication. You see this in their conservative financial management, which resulted in a prudent Net Debt / TTM Adjusted EBITDA of approximately 1.6x as of Q3 2025.

• Integrity: Operating with transparency and honesty.
• Value Creation: Disciplined M&A focused on accretive acquisitions.
• Operational Excellence: Efficient asset management and low-cost structure.
• Growth: Strategic expansion to enhance long-term unitholder value.
• Responsible Stewardship: Prudent financial management and conservative balance sheet.

Given Company slogan/tagline

While Kimbell Royalty Partners does not use a single, official, public-facing slogan, their investor communications consistently emphasize their strategic position: 'The leading consolidator of U.S. mineral and royalty interests.'

This phrase captures their market strategy and is a clear signal to investors about their long-term goal: to own the best, most diversified royalty portfolio in the country. It's a simple, powerful statement of intent.

Kimbell Royalty Partners, LP (KRP) How It Works

Kimbell Royalty Partners, LP operates as a pure-play mineral and royalty company, meaning it buys and owns the rights to oil and gas production without ever having to drill a well or pay for operating expenses. The company makes money by collecting royalty payments-a percentage of the revenue-from third-party exploration and production (E&P) operators who develop the oil and gas resources on Kimbell Royalty Partners' acreage.

This business model is highly capital-efficient, insulating the company from the high costs and risks of drilling, so its primary focus is on disciplined, accretive acquisitions to grow its asset base and, in turn, its cash distributions to investors. For the first nine months of 2025, the company's run-rate production averaged 25,574 Boe per day, showing the scale of the operation.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

The operational framework is deliberately lean, designed to maximize cash flow by minimizing capital and operating expenses. It's all about smart asset acquisition and passive management. Here's the quick math: Kimbell Royalty Partners does not employ drilling crews or buy rigs; it simply collects a check from the companies that do the work, so cash G&A expense was only $2.51 per Boe in Q3 2025.

• Disciplined Acquisition: Focus on large, accretive mineral and royalty interest acquisitions, such as the $230 million Midland Basin acquisition in January 2025, to expand its high-quality asset base.
• Passive Asset Monetization: The company benefits from the drilling activity of E&P operators, with 86 active rigs drilling on its acreage as of Q3 2025, representing approximately 16% of the U.S. land rig count.
• Cash Flow Allocation: A defined financial policy dictates that 75% of cash available for distribution is paid to unitholders, and the remaining 25% is used to pay down debt, ensuring a conservative balance sheet with net debt to TTM Consolidated Adjusted EBITDA at approximately 1.6x as of Q3 2025.
• Risk Management: Actively hedges commodity price risk through derivative instruments to protect a portion of future cash flows and ensure stable distributions.

If you're looking to understand the investors driving this strategy, you should check out Exploring Kimbell Royalty Partners, LP (KRP) Investor Profile: Who's Buying and Why?

Given Company's Strategic Advantages

Kimbell Royalty Partners' success comes from a few core, structural advantages that are hard to replicate, defintely in a highly fragmented market. They are positioned as a natural consolidator in the U.S. oil and gas royalty sector, which is estimated to be over $700 billion in size.

• Unmatched Diversification: Owns a vast, geographically diverse portfolio spanning 28 states, which mitigates single-basin or single-operator risk and helps maintain a steady production profile.
• Asset-Light Structure: The pure-play royalty model means zero capital expenditures (CapEx) for drilling, which translates directly into a high operating margin and resilient free cash flow.
• Long-Life Inventory: The existing portfolio has a shallow proved developed producing (PDP) decline rate of approximately 14%, requiring only an estimated 6.5 net wells annually to maintain flat production, ensuring long-term cash generation.
• Tax-Advantaged Distributions: The company is structured to provide investors with tax-advantaged distributions via Form 1099-DIV, with an estimated 100% of the Q2 2025 distribution considered a return of capital, enhancing the after-tax yield for unitholders.

Kimbell Royalty Partners, LP (KRP) How It Makes Money

Kimbell Royalty Partners, LP makes money by acquiring and owning mineral and royalty interests in oil and natural gas properties across the United States, operating an asset-light model where they receive a percentage of revenue from production without bearing the high capital and operating costs of drilling and development.

This royalty interest is essentially a fee-like revenue stream, typically ranging from 15% to 25% of the gross revenue the operator generates from selling the produced oil, natural gas, and natural gas liquids (NGLs).

Kimbell Royalty Partners' Revenue Breakdown

Kimbell Royalty Partners' revenue is directly tied to commodity prices and production volumes. The revenue mix has been highly volatile in 2025, swinging heavily toward natural gas in Q2 due to price dynamics, but shifting back to an oil-dominant revenue stream in Q3 2025.

Here's the quick math on the $76.8 million in oil, natural gas, and NGL revenues for the third quarter of 2025 (Q3 2025), based on the production mix and realized prices.

The total reported revenue for Q3 2025 was $80.6 million, with the bulk coming from these royalty payments. You can see how oil still drives the revenue engine, even with gas making up 48% of the production volume in barrels of oil equivalent (Boe).

Business Economics

The core of Kimbell Royalty Partners' business model is its low-cost, high-margin structure, which is the main advantage of a royalty company. They are insulated from the capital expenditure (CapEx) and operating expense (OpEx) risks that burden the actual drilling companies.

• Low Capital Intensity: Kimbell Royalty Partners does not own or operate the wells, so its capital costs are minimal, primarily focused on acquisitions.
• High Operating Leverage: Cash General and Administrative (G&A) expenses were low at just $2.51 per Boe in Q3 2025, which reflects excellent operational discipline and means more revenue drops straight to the bottom line.
• Diversification as Risk Mitigation: The company holds interests across 28 states in the U.S., with a significant portion of its revenue, about 54% in Q2 2025, coming from the Permian Basin. This diversification helps smooth out the impact of regional drilling slowdowns or localized price dips.
• Acquisition-Driven Growth: The primary growth lever is the strategic acquisition of new mineral and royalty interests, such as the $230 million Midland Basin purchase completed in early 2025.

The biggest risk is commodity price volatility. When the realized price for oil dropped to $64.21 per barrel and natural gas to $2.47 per thousand cubic feet (Mcf) in Q3 2025, it directly impacted royalty payments. That's why the revenue mix can swing defintely from quarter to quarter.

Kimbell Royalty Partners' Financial Performance

Looking at the near-term results from Q3 2025 gives you a clear picture of the company's financial health and its capacity to return capital to investors.

• Production Growth: Run-rate daily production reached 25,530 Boe/d in Q3 2025, an organic increase of approximately 1% over the prior quarter, which exceeded the midpoint of the company's annual guidance.
• Profitability Metric: Consolidated Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $62.3 million for Q3 2025. This non-GAAP measure shows the strong cash-generating power of their asset-light model.
• Debt Management: The company maintains a conservative balance sheet, with a net debt to trailing 12 months consolidated Adjusted EBITDA ratio of approximately 1.6x as of September 30, 2025. They allocated 25% of their cash available for distribution to pay down $12.6 million in debt during the quarter.
• Shareholder Payout: Kimbell Royalty Partners declared a Q3 2025 cash distribution of $0.35 per common unit, representing a 75% payout of cash available for distribution. This distribution is estimated to be 100% a return of capital, making it highly tax-advantaged for unitholders.

Analysts anticipate the company's full-year 2025 sales to reach approximately $336.65 million, with distributable cash flow projected to hit $168 million. To dive deeper into the metrics that matter most for a mineral and royalty company, check out Breaking Down Kimbell Royalty Partners, LP (KRP) Financial Health: Key Insights for Investors.

Kimbell Royalty Partners, LP (KRP) Market Position & Future Outlook

Kimbell Royalty Partners maintains a strong, diversified position in the fragmented U.S. mineral and royalty sector, evidenced by its 16.5% market share of active U.S. land rigs on its acreage as of mid-2025. The company is strategically focused on balance sheet health, directing 25% of its cash available for distribution toward debt reduction, even while delivering robust operational performance like its Q3 2025 production of 25,530 Boe/d.

Competitive Landscape

The pure-play mineral and royalty sector is consolidating, and Kimbell Royalty Partners competes primarily with other large, publicly traded aggregators. The merger between Viper Energy Partners and Sitio Royalties Corp. in mid-2025 created a formidable rival, but Kimbell's national diversification remains a key differentiator against Permian Basin-focused peers.

Opportunities & Challenges

The company's strategy is clear: acquire high-quality assets and manage the balance sheet conservatively. This is a defintely necessary approach in a volatile commodity environment. Kimbell Royalty Partners' projected 2025 distributable cash flow (DCF) of $168 million provides the capital base for this strategy.

Industry Position

Kimbell Royalty Partners is positioned as one of the largest pure-play mineral and royalty companies in the U.S., distinguished by its broad geographic footprint. Its asset base spans over 17 million gross acres and includes interests in more than 131,000 gross wells, mitigating the single-basin risk that challenges many competitors.

• Maintain a high active rig count market share (around 16% to 17% in 2025), signaling premier asset quality that operators prioritize.
• The focus on debt reduction, using 25% of distributable cash, strengthens the balance sheet for future opportunities in a competitive M&A environment.
• The company's election to be taxed as a corporation (C-Corp) for federal income tax purposes simplifies the tax profile for investors, issuing a 1099 instead of a K-1.
• To understand the long-term strategic direction, you should review the Mission Statement, Vision, & Core Values of Kimbell Royalty Partners, LP (KRP).