Kimbell Royalty Partners: Recent Acquisition Adds Nearly 20% To Distributable Cash Flow Per Unit

Summary

  • Kimbell recently closed on a $143.1 million Northern Midland Basin acquisition.
  • This acquisition should boost its distributable cash flow per unit by nearly 20% in the near-term.
  • The acquired acreage has a high level of current development activity, but will run low on inventory in a couple of years.
  • Thus, the contributions from that acreage will diminish over time after the next couple of years.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil field site, in the evening, oil pumps are running, The oil pump and the beautiful sunset reflected in the water

zhengzaishuru

Kimbell Royalty Partners' (NYSE:KRP) recent $143.1 million Northern Midland Basin acquisition should boost its distributable cash flow by nearly 20%, adding around $0.05 to $0.06 per unit to its quarterly distribution with a 75% payout ratio.

This results in

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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