KRPNYSECrude Petroleum & Natural GasUS GAAP · USD

Kimbell Royalty Partners, LP

Kimbell Royalty Partners, LP is a U.S. mineral and royalty owner that earns cash flows from oil, natural gas and NGL production across a large portfolio of non-operated interests. The partnership does not drill wells itself; instead, it collects royalty payments from operators on acreage it owns in major onshore basins, with a heavy concentration in the Permian Basin and Mid-Continent.

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Revenue334m USD
+7.9 %y/y
Operating profit (EBIT)133m USD
+259.1 %y/y
EBIT margin39.8%
+27.8 ppy/y
Net income99.7m USD
+800.2 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-400-2000200400m USD2020: 90 m USD2020: EBIT -251 m USD20202021: 175 m USD2021: EBIT 49 m USD20212022: 282 m USD2022: EBIT 137 m USD20222023: 294 m USD2023: EBIT 110 m USD20232024: 309 m USD2024: EBIT 37 m USD20242025: 334 m USD2025: EBIT 133 m USD2025334133
RevenueOperating profit (EBIT)
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Business

Share of revenue
Mineral interests55 %

Ownership interests in oil and gas acreage that entitle the partnership to royalty income without operating the wells.

Overriding royalty interests35 %

Royalty interests carved out of production that generate cash flow from operator activity on the underlying acreage.

Commodity-linked royalty income10 %

Cash receipts tied to oil, natural gas and NGL production volumes and realized prices.

Products

Reported · share of revenue
69.4%16.1%12.5%FY2024100 %
  • Oil and Condensate69.4 %
  • Natural Gas Midstream16.1 %
  • NGL Revenue12.5 %
  • Lease Bonus and Other Income1.9 %

Source: 10-K FY2024, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Kimbell does not sell to end consumers; its economic counterparties are oil and gas operators that develop and produce hydrocarbons on its acreage. The partnership’s cash flow depends on those operators drilling, completing and producing wells, as well as on commodity prices realized in the field. Its asset base is spread across many basins, so customer exposure is really to a broad set of upstream operators rather than a single buyer.

Upstream oil and gas operators

Operators drill and produce on Kimbell's acreage and pay royalty income based on production and realized prices.

Working interest owners

These counterparties develop the wells and generate the production stream that drives royalty payments.

Asset sellers and sponsors

Owners of mineral and royalty packages that Kimbell acquires to expand its acreage base.

Derivatives counterparties

Financial institutions or trading counterparties used for oil and gas hedging contracts.

Strategy

Kimbell’s strategy is to grow through disciplined acquisitions of mineral and royalty interests while preserving a conservative capital structure. It also seeks to support cash flow through a large, diversified acreage base, active operator drilling on its lands and selective hedging of oil and gas production. The partnership emphasizes financial flexibility so it can buy assets opportunistically and continue distributions.

Acquire additional mineral and royalty assetsMedium term

Growth depends on adding acreage that can generate royalty cash flow without operating capital intensity.

Preserve balance sheet flexibilityShort term

A conservative capital structure supports distributions and allows the partnership to act on acquisition opportunities.

Capture value from operator drilling inventoryMedium term

Royalty growth depends on third-party drilling and completion activity across the acreage base.

Geography

Kimbell’s assets are entirely U.S.-based, with mineral and royalty interests in 28 states and every major onshore basin across the continental United States. The portfolio is especially concentrated in Texas basins and producing regions, and management highlights the Permian Basin and Mid-Continent as the largest exposure areas. This geography matters because production activity, drilling inventory and commodity pricing differ by basin, shaping both growth potential and cash flow volatility.

Risks

Kimbell’s cash flow is highly exposed to oil, natural gas and NGL prices, as well as to the drilling and completion decisions of third-party operators on its acreage. The partnership also faces structural risks from its distribution obligations, debt service and related-party management arrangements, while reserve estimates and full-cost accounting can materially affect reported depletion and impairment. Because it is a royalty owner rather than an operator, it has limited control over production timing, capital spending and field development.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Oil, natural gas and NGL price volatility1Operator drilling and completion activity2Distribution coverage and capital allocation3Reserve estimation and impairment risk4Related-party services dependence5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Oil, natural gas and NGL price volatilityImpact: HighLikelihood: Medium

    Royalty revenue is tied to realized commodity prices and production volumes, so lower prices reduce cash flow quickly.

    Exposure: All royalty income

  2. Operator drilling and completion activityImpact: HighLikelihood: Medium

    Kimbell does not control development timing; fewer wells or slower completions can weaken growth and offset natural decline less effectively.

    Exposure: Acreage in major basins

  3. Distribution coverage and capital allocationImpact: MediumLikelihood: High

    Preferred unit distributions, debt payments and reserves reduce cash available for common unitholders.

    Exposure: Quarterly distributions

  4. Reserve estimation and impairment riskImpact: MediumLikelihood: Medium

    Full-cost depletion and ceiling tests depend on proved reserve estimates, which can change with prices and drilling results.

    Exposure: Oil and gas properties

  5. Related-party services dependenceImpact: MediumLikelihood: Medium

    The partnership relies on Kimbell Operating and affiliates for management and operational services, creating execution and alignment risk.

    Exposure: Operations and acquisitions

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Accounting

Judgemental items
Full-cost ceiling test and depletion

Proved reserve estimates determine depletion rates and whether oil and gas properties are impaired.

Impact: Can materially change operating income and asset values

Commodity derivative accounting

Hedging contracts through September 2027 can create mark-to-market gains or losses before cash settlement.

Impact: Affects earnings volatility and cash flow visibility

Income tax and distribution treatment

The partnership elected corporate tax treatment, and non-cash depletion can make taxable income differ from distributions.

Impact: Affects tax expense and unitholder after-tax returns

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Last updated: 24/09/2026