Kimbell Royalty's Distribution Can Be The Key To Your Income-Focused Portfolio

Louis Gerard
553 Followers

Summary

  • Kimbell Royalty Partners focuses on acquiring mineral rights and royalty interests, boasting a portfolio of 17 million gross acres and 130,000 wells.
  • The company’s strategy includes aggressive acquisitions and dilution, growing equity value from $262.1 million in 2017 to $863.5 million now.
  • Despite high valuation metrics, Kimbell excels in free cash flow generation and offers a substantial 13.8% dividend yield, appealing to income-focused investors.
  • Market volatility and competition pose risks, but Kimbell’s strong cash flow and strategic acquisitions support its growth and dividend sustainability.

West Texas Oil Fields in the Permian Basin

Jasmin Pawlowicz

Introduction

Kimbell Royalty Partners (KRP) is a Texas-based partnership that focuses on owning and acquiring mineral rights and royalty interests across the U.S., Kimbell currently has a portfolio covering over 17 million gross acres spanning major

This article was written by

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As a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well. Through Seeking Alpha, I aim to connect with like-minded investors, share insights, and build a collaborative community of individuals seeking superior returns and informed decision-making, currently on a quest to review every public company.

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