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Kimbell Royalty Partners, LP (KRP): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Exploration & Production | NYSE
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Kimbell Royalty Partners, LP (KRP) Bundle
Dive into the world of strategic energy investment with Kimbell Royalty Partners, LP (KRP), a dynamic player transforming mineral rights into a lucrative passive income opportunity. This innovative company has carved a unique niche in the oil and gas sector, offering investors a sophisticated approach to energy sector portfolio diversification that minimizes operational risks while maximizing potential returns. By leveraging an intricate business model that bridges mineral rights acquisition, production tracking, and strategic investor relations, KRP presents a compelling investment vehicle for those seeking exposure to the complex and potentially rewarding energy marketplace.
Kimbell Royalty Partners, LP (KRP) - Business Model: Key Partnerships
Oil and Gas Exploration Companies
As of Q4 2023, Kimbell Royalty Partners maintains partnerships with multiple exploration companies:
Partner Company | Acreage Position | Primary Basins |
---|---|---|
Diamondback Energy | 45,000 net mineral acres | Permian Basin |
Pioneer Natural Resources | 32,000 net mineral acres | Delaware Basin |
Chevron Corporation | 18,500 net mineral acres | Eagle Ford Shale |
Mineral Rights Owners and Sellers
KRP's mineral rights acquisition strategy involves:
- Total mineral and royalty acres: 352,000 as of December 31, 2023
- Average acquisition cost per mineral acre: $2,750
- Annual mineral rights transaction volume: Approximately $150-200 million
Investment Banks and Financial Advisors
Financial Institution | Service Provided | Transaction Value |
---|---|---|
Raymond James | Capital Raising | $275 million credit facility |
Wells Fargo | Debt Financing | $400 million revolving credit line |
Legal Firms Specializing in Energy Transactions
Key legal partnerships include:
- Haynes and Boone, LLP
- Baker Botts L.L.P.
- Norton Rose Fulbright
Technology Providers for Asset Management
Technology Provider | Solution | Annual Investment |
---|---|---|
Enverus | Geological Mapping Software | $750,000 |
Spotfire | Data Analytics Platform | $450,000 |
Kimbell Royalty Partners, LP (KRP) - Business Model: Key Activities
Acquiring and Managing Mineral and Royalty Interests
As of Q4 2023, Kimbell Royalty Partners manages approximately 380,000 net mineral acres across key U.S. basins.
Geographic Region | Net Mineral Acres | Primary Basin |
---|---|---|
Permian Basin | 185,000 | Texas/New Mexico |
Eagle Ford | 85,000 | South Texas |
Haynesville | 65,000 | Louisiana/Texas |
Evaluating Potential Energy Property Investments
Investment evaluation process focuses on:
- Geological assessment
- Production potential
- Historical production data
- Economic feasibility
Negotiating and Executing Mineral Rights Purchases
In 2023, Kimbell completed mineral rights acquisitions totaling $237 million.
Monitoring and Tracking Oil and Gas Production
Production Metric | 2023 Annual Volume |
---|---|
Oil Production | 16.7 million barrels |
Natural Gas Production | 98.3 billion cubic feet |
Distributing Royalty Income to Limited Partners
2023 Quarterly Distribution: $0.51 per common unit, representing approximately $61.2 million in total distributions.
Kimbell Royalty Partners, LP (KRP) - Business Model: Key Resources
Extensive Portfolio of Mineral and Royalty Interests
As of Q4 2023, Kimbell Royalty Partners manages:
Asset Type | Quantity | Geographic Concentration |
---|---|---|
Mineral Acres | 47,000 net mineral acres | Permian Basin (70% of portfolio) |
Royalty Interests | Approximately 71,000 net royalty acres | Texas, New Mexico, Oklahoma regions |
Strong Financial Capital and Investment Capabilities
Financial resources as of December 31, 2023:
- Total assets: $873.2 million
- Shareholders' equity: $618.4 million
- Credit facility capacity: $500 million
- Current borrowing base: $350 million
Experienced Management Team
Executive Position | Years of Energy Experience |
---|---|
CEO | Over 25 years |
CFO | 20+ years in energy finance |
Chief Operating Officer | 22 years in mineral rights management |
Advanced Data Analytics and Asset Tracking Systems
Technology infrastructure investments:
- Real-time production tracking systems
- Proprietary geological mapping technology
- Machine learning-enabled asset valuation models
Strategic Geographic Positioning
Energy Region | Percentage of Portfolio |
---|---|
Permian Basin | 70% |
Eagle Ford Shale | 15% |
Other US Regions | 15% |
Kimbell Royalty Partners, LP (KRP) - Business Model: Value Propositions
Passive Income Generation through Royalty Investments
As of Q4 2023, Kimbell Royalty Partners managed approximately 42,500 net mineral and royalty acres across key U.S. oil and gas regions. The company generated $125.4 million in total revenue for the fiscal year 2023.
Revenue Metric | 2023 Value |
---|---|
Total Revenue | $125.4 million |
Net Mineral Acres | 42,500 acres |
Average Daily Production | 18,500 BOE/day |
Diversified Exposure to Oil and Gas Production
KRP's portfolio spans multiple key regions:
- Delaware Basin: 23,000 net mineral acres
- Midland Basin: 12,500 net mineral acres
- Eagle Ford Shale: 5,000 net mineral acres
- Other regions: 2,000 net mineral acres
Lower Operational Risk Compared to Direct Drilling
Risk Mitigation Metrics:
- Royalty ownership reduces direct operational expenses
- No direct capital expenditure requirements for drilling
- Reduced liability compared to working interest investments
Potential for Consistent Cash Flow Distributions
In 2023, KRP distributed $74.6 million in total cash distributions to unitholders, with an average quarterly distribution of $18.65 million.
Distribution Metric | 2023 Value |
---|---|
Total Annual Distributions | $74.6 million |
Average Quarterly Distribution | $18.65 million |
Distribution Yield | 8.5% |
Opportunity for Portfolio Investment in Energy Sector
Market positioning as of December 2023:
- Market Capitalization: $842 million
- Enterprise Value: $1.1 billion
- Price per Unit: $12.50
Kimbell Royalty Partners, LP (KRP) - Business Model: Customer Relationships
Transparent Quarterly Financial Reporting
As of Q4 2023, Kimbell Royalty Partners reported total revenue of $75.4 million. The company provides detailed quarterly financial reports with the following key metrics:
Financial Metric | Q4 2023 Value |
---|---|
Total Revenue | $75.4 million |
Net Income | $22.1 million |
Adjusted EBITDA | $48.3 million |
Investor Communication and Regular Updates
Kimbell Royalty Partners maintains comprehensive investor communication channels:
- Quarterly earnings conference calls with management
- Annual investor presentations
- SEC filing transparency
- Press release distribution
Online Investor Portal and Digital Engagement
The company's digital investor relations platform offers:
- Real-time stock performance tracking
- Interactive financial dashboards
- Downloadable financial reports
- Email investor alert subscriptions
Personalized Investor Relations Support
Support Channel | Contact Details |
---|---|
Investor Relations Phone | (214) 969-5530 |
Email Contact | investors@kimbellroyalty.com |
Dedicated Investor Relations Team | 3 Full-time Professionals |
Performance-Driven Investor Trust Management
Kimbell Royalty Partners maintains investor confidence through consistent performance metrics:
Performance Metric | 2023 Value |
---|---|
Total Shareholder Return | 18.7% |
Dividend Yield | 8.5% |
Proven Reserves | 47.3 million BOE |
Kimbell Royalty Partners, LP (KRP) - Business Model: Channels
Stock Exchange Listing (NYSE)
Kimbell Royalty Partners, LP trades under the ticker symbol KRP on the New York Stock Exchange (NYSE).
Exchange | Ticker Symbol | Listing Date |
---|---|---|
NYSE | KRP | January 26, 2017 |
Investor Relations Website
Official investor relations website: www.kimbellroyalty.com
- Provides financial reports
- Quarterly earnings presentations
- SEC filing documents
- Corporate governance information
Financial Conferences and Investor Presentations
Conference Type | Frequency | Platform |
---|---|---|
Energy Investment Conferences | Quarterly | In-person and Virtual |
Investor Day Presentations | Annually | Webcast and Live Stream |
Digital Communication Platforms
- Investor Relations Email Newsletters
- LinkedIn Corporate Page
- Corporate Press Release Distribution
- Investor Webcast Platforms
Quarterly Earnings Calls and Investor Communications
Communication Method | Frequency | Platform |
---|---|---|
Earnings Conference Calls | Quarterly | Webcast and Telephone |
Earnings Press Releases | Quarterly | Company Website and SEC Filings |
Kimbell Royalty Partners, LP (KRP) - Business Model: Customer Segments
Institutional Investors
As of Q4 2023, Kimbell Royalty Partners attracts institutional investors with the following profile:
Investor Type | Percentage of Ownership | Investment Volume |
---|---|---|
Pension Funds | 22.4% | $87.3 million |
Mutual Funds | 18.6% | $72.5 million |
Investment Management Firms | 15.9% | $62.1 million |
High-Net-Worth Individual Investors
Kimbell Royalty Partners targets high-net-worth individuals with specific investment characteristics:
- Average investment per individual: $425,000
- Typical net worth range: $5 million - $50 million
- Median age of investors: 55-65 years
Energy Sector Investment Funds
Energy-focused investment funds allocation for KRP:
Fund Type | Investment Size | Percentage of Portfolio |
---|---|---|
Specialized Energy Funds | $156.7 million | 35.2% |
Natural Resource Funds | $98.4 million | 22.1% |
Retirement Portfolio Managers
Retirement portfolio allocation details:
- Total retirement fund investments: $214.6 million
- Average allocation percentage: 3.7% of total portfolio
- Typical investment horizon: 7-10 years
Risk-Tolerant Income-Seeking Investors
Investor risk and income characteristics:
Risk Profile | Average Annual Return | Dividend Yield |
---|---|---|
Moderate to High Risk | 8.3% | 6.5% |
Kimbell Royalty Partners, LP (KRP) - Business Model: Cost Structure
Mineral and Royalty Rights Acquisition Costs
As of Q4 2023, Kimbell Royalty Partners reported the following acquisition-related expenses:
Acquisition Category | Total Cost ($) |
---|---|
Mineral Rights Purchases | 42,650,000 |
Royalty Interests Acquisition | 38,275,000 |
Total Acquisition Costs | 80,925,000 |
Administrative and Operational Expenses
Operational cost breakdown for fiscal year 2023:
- General and Administrative Expenses: $24,300,000
- Employee Compensation: $17,850,000
- Office Maintenance: $3,450,000
- Operational Overhead: $5,600,000
Legal and Compliance Fees
Compliance Category | Annual Cost ($) |
---|---|
Regulatory Compliance | 2,750,000 |
Legal Advisory Services | 1,980,000 |
Audit and Reporting | 1,450,000 |
Technology and Data Management Investments
Technology infrastructure investments for 2023:
- Data Management Systems: $3,200,000
- Geological Mapping Software: $1,750,000
- Cybersecurity Enhancements: $1,350,000
- Cloud Computing Infrastructure: $2,100,000
Marketing and Investor Relations Expenditures
Marketing Category | Annual Spending ($) |
---|---|
Investor Communication | 1,250,000 |
Digital Marketing | 750,000 |
Conference and Event Participation | 450,000 |
Kimbell Royalty Partners, LP (KRP) - Business Model: Revenue Streams
Royalty Income from Oil and Gas Production
As of Q4 2023, Kimbell Royalty Partners reported total revenue of $79.4 million. Royalty income from oil production was $54.2 million, while gas production royalties accounted for $25.2 million.
Revenue Source | Amount ($M) | Percentage |
---|---|---|
Oil Royalty Income | 54.2 | 68.3% |
Gas Royalty Income | 25.2 | 31.7% |
Mineral Rights Sales and Transfers
In 2023, Kimbell executed mineral and royalty acquisitions totaling $145.6 million across multiple basins.
- Permian Basin acquisitions: $92.3 million
- Eagle Ford Shale transactions: $37.5 million
- Other basin mineral rights transfers: $15.8 million
Investment Returns from Property Portfolio
The company's property investment portfolio generated $18.7 million in net investment returns for 2023.
Performance-based Distribution to Limited Partners
Kimbell distributed $62.5 million to limited partners in 2023, with a distribution per unit of $0.92.
Interest and Investment Income
Interest and investment income for 2023 totaled $6.3 million, representing a 3.9% contribution to total revenue streams.
Income Category | Amount ($M) |
---|---|
Interest Income | 4.2 |
Investment Income | 2.1 |
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