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

Ever wondered how a company can thrive by owning mineral and royalty interests? Kimbell Royalty Partners, LP (KRP) stands as a significant player in this unique sector, generating revenue from over 16 million gross acres in 28 states as of the end of fiscal year 2024. With a diverse portfolio spanning nearly 122,000 producing oil and natural gas wells, how does KRP operate, and what makes its business model so intriguing? Dive in to discover the history, ownership structure, and the strategies Kimbell Royalty Partners uses to generate revenue and maintain its position in the competitive energy market.

Kimbell Royalty Partners, LP (KRP) History

Kimbell Royalty Partners, LP Founding Timeline

Year established

Kimbell Royalty Partners was established in 2012.

Original location

The company is headquartered in Fort Worth, Texas.

Founding team members

Though specific names of the initial founding members are not widely publicized, the formation was led by members of the Kimbell family, who have a long history in the Texas oil and gas industry.

Initial capital/funding

Details on the initial capital and funding are not explicitly detailed in the public domain. However, Kimbell Royalty Partners began acquiring mineral and royalty interests, growing through strategic acquisitions funded through a mix of equity and debt offerings.

Kimbell Royalty Partners, LP Evolution Milestones

Kimbell Royalty Partners, LP Transformative Moments

• Strategic Shift to Large-Scale Acquisitions: Kimbell’s focus on acquiring larger, more impactful royalty packages transformed it from a smaller player to a significant entity in the mineral and royalty space.
• Focus on Premier Basins: Concentrating on the highest-quality oil and gas regions, such as the Permian Basin, has driven substantial revenue and growth. Their strategic acquisitions in these areas have solidified their position as a leading royalty company.
• Financial Maneuvering: Effective use of debt and equity markets to fund acquisitions has been crucial. For instance, proceeds from equity offerings and strategic debt financing supported the $454.9 million Permian Basin acquisition in 2024.

To gain further insights into the company's guiding principles, refer to Mission Statement, Vision, & Core Values of Kimbell Royalty Partners, LP (KRP).

Kimbell Royalty Partners, LP (KRP) Ownership Structure

Kimbell Royalty Partners, LP operates with a master limited partnership (MLP) structure, meaning ownership is represented by units rather than typical corporate shares. These units are traded on public exchanges, allowing both institutional and individual investors to hold a stake in the company's royalty interests.

Kimbell Royalty Partners, LP's Current Status

Kimbell Royalty Partners, LP is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol KRP. This means that its units are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

Kimbell Royalty Partners, LP's Ownership Breakdown

As a publicly traded company, Kimbell Royalty Partners, LP's ownership is distributed among a mix of institutional investors, retail investors, and company insiders. Here's an approximate breakdown based on the latest available data:

Kimbell Royalty Partners, LP's Leadership

The leadership team guides the strategic direction and operational execution of Kimbell Royalty Partners. Key figures include:

• Robert G. Ravnaas: Chairman and Chief Executive Officer
• Davis Ravnaas: President and Chief Financial Officer

These individuals, along with other members of the executive team, are responsible for managing the company's assets, pursuing acquisitions, and delivering value to its unitholders. More insights about the company's goals can be found here: Mission Statement, Vision, & Core Values of Kimbell Royalty Partners, LP (KRP).

Kimbell Royalty Partners, LP (KRP) Mission and Values

Kimbell Royalty Partners, LP focuses on acquiring and managing mineral and royalty interests in oil and natural gas properties, aiming to deliver stable cash flow to its unitholders. The company's core values emphasize integrity, operational excellence, and a commitment to sustainable growth.

Kimbell Royalty Partners, LP Core Purpose

Official mission statement

Kimbell Royalty Partners, LP does not have a clearly defined, publicly available official mission statement. However, based on their operations and investor communications, their mission can be inferred as:

• To acquire, own, and manage producing mineral and royalty interests, focusing on maximizing value and delivering long-term, sustainable cash flow to its unitholders.
• To maintain a disciplined and opportunistic approach to acquisitions, targeting properties with predictable production profiles and significant upside potential.
• To operate with integrity, transparency, and a commitment to environmental stewardship and responsible resource development.

Vision statement

Similarly, Kimbell Royalty Partners, LP does not have an explicitly stated vision statement. However, their vision can be understood through their strategic objectives and long-term goals:

• To be the leading consolidator of mineral and royalty interests in the United States, building a diversified portfolio of high-quality assets.
• To provide investors with a reliable and growing stream of income, supported by a strong balance sheet and prudent financial management.
• To leverage their industry expertise and operational capabilities to enhance the value of their properties and generate superior returns.

Company slogan/tagline

Kimbell Royalty Partners, LP does not have a widely recognized official slogan or tagline. However, considering their business model and objectives, a fitting tagline could be:

• 'Your Partner in Royalty Wealth.'
• 'Unlocking the Value of American Energy.'
• 'Sustainable Royalties, Secure Income.'

For more in-depth insights into Kimbell Royalty Partners, explore: Exploring Kimbell Royalty Partners, LP (KRP) Investor Profile: Who’s Buying and Why?

Kimbell Royalty Partners, LP (KRP) How It Works

Kimbell Royalty Partners, LP (KRP) operates by acquiring and managing mineral and royalty interests in oil and natural gas properties, generating revenue primarily through royalty payments from the production on these properties.

Kimbell Royalty Partners, LP's Product/Service Portfolio

Kimbell Royalty Partners, LP's Operational Framework

Kimbell Royalty Partners, LP (KRP) focuses on acquiring and managing a diverse portfolio of mineral and royalty interests. The company's operational framework includes:

• Acquisition of Mineral Rights: KRP actively seeks to purchase mineral rights from various sources, including individuals, families, and other entities.
• Portfolio Management: The company manages its portfolio to optimize production and revenue, leveraging its extensive database and technical expertise.
• Royalty Collection: KRP collects royalty payments from oil and gas operators who are actively producing on the properties where KRP owns mineral rights.
• Distributions to Unitholders: A significant portion of the revenue generated is distributed to KRP's unitholders, making it an attractive investment for those seeking income. For example, in 2024, Kimbell Royalty Partners announced a cash distribution of $0.30 per common unit for the first quarter.

Kimbell Royalty Partners, LP's Strategic Advantages

Kimbell Royalty Partners, LP (KRP) possesses several strategic advantages that contribute to its success:

• Diversified Asset Base: KRP's portfolio includes interests in numerous producing wells across various geographical locations, reducing its dependence on any single asset or operator.
• Experienced Management Team: The company's management team has extensive experience in the oil and gas industry, providing valuable insights and expertise in acquisitions and operations.
• Scalable Business Model: KRP's business model allows for efficient growth through acquisitions, as the company can integrate new assets into its existing portfolio without significant additional overhead.
• Focus on High-Return Assets: KRP targets acquisitions that offer attractive returns on investment, ensuring that the company's capital is deployed effectively.

For more information about Kimbell Royalty Partners, LP (KRP), check out this insightful article: Exploring Kimbell Royalty Partners, LP (KRP) Investor Profile: Who’s Buying and Why?

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

Kimbell Royalty Partners, LP generates revenue primarily through its ownership of mineral and royalty interests in oil and natural gas properties, receiving income from the production and sale of these resources by operators.

Kimbell Royalty Partners, LP (KRP) Revenue Breakdown

Kimbell Royalty Partners, LP (KRP) Business Economics

The business economics of Kimbell Royalty Partners, LP are significantly influenced by commodity prices, production volumes, and lease operating expenses. Here's a breakdown:

• Commodity Prices: Revenue is directly tied to the prices of oil and natural gas. Higher prices lead to increased revenue, while lower prices can decrease profitability.
• Production Volumes: The amount of oil and gas produced from the properties in which Kimbell holds royalty interests directly impacts their revenue. Increased production leads to higher royalty income.
• Operating Expenses: While Kimbell is not directly responsible for operating the wells, their net profits are affected by these costs. Efficiencies in operations can indirectly boost Kimbell's income.
• Hedging Strategies: To mitigate risks associated with fluctuating commodity prices, Kimbell employs hedging strategies to secure future revenue.

To delve deeper into Kimbell Royalty Partners, LP's financial health, explore Breaking Down Kimbell Royalty Partners, LP (KRP) Financial Health: Key Insights for Investors.

Kimbell Royalty Partners, LP (KRP) Financial Performance

Kimbell Royalty Partners, LP's financial performance can be evaluated through several key metrics:

• Revenue: In the fiscal year 2024, Kimbell reported total revenues of $272.8 million.
• Net Income: The company’s net income for the year was $98.9 million.
• Adjusted EBITDA: Kimbell’s adjusted EBITDA stood at $202.8 million, reflecting its operational profitability.
• Distributable Income: The distributable income was reported at $146.5 million, which is crucial for distributions to unit holders.
• Cash Flow: Net cash provided by operating activities totaled $174.3 million.

These figures demonstrate Kimbell's robust financial health and its capacity to generate substantial income from its royalty interests.

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

As of April 2025, Kimbell Royalty Partners, LP is strategically positioned to leverage its mineral and royalty interests for sustained growth, navigating both opportunities and challenges in the dynamic energy market. The company's future outlook is shaped by its ability to capitalize on market opportunities while effectively managing potential risks inherent in the oil and gas industry.

Competitive Landscape

Note: Market share percentages are approximate and based on the relative size of royalty acreage and revenue as of the end of the 2024 fiscal year. These figures can fluctuate based on new acquisitions, production rates, and commodity prices.

Opportunities & Challenges

Industry Position

Kimbell Royalty Partners, LP operates within the fragmented oil and gas royalty sector. Their position is characterized by:

• Aggressive Acquisition Strategy: Kimbell has historically grown through the acquisition of producing mineral and royalty assets.
• Diversified Asset Base: Their assets are spread across numerous producing basins, reducing dependence on any single region or operator.
• Focus on Low-Cost Operations: As a royalty company, Kimbell has minimal operating expenses compared to exploration and production companies.

To gain a deeper understanding of the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Kimbell Royalty Partners, LP (KRP).