krp stock: Kimbell Royalty Partners (KRP) Overview

This article explains krp stock—Kimbell Royalty Partners (NYSE: KRP)—covering company profile, history, business model, financials, risks, investor resources, and where to find up‑to‑date market da...

2024-07-09 12:46:00

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Kimbell Royalty Partners (KRP)

krp stock refers to Kimbell Royalty Partners, LP, a U.S. publicly traded company that acquires and owns mineral and royalty interests in oil, natural gas, and natural gas liquids (NGL) producing properties. This article provides a comprehensive, beginner‑friendly overview of krp stock, including the company's profile, history, how the royalty model works, financial and distribution characteristics, market information, governance, growth strategy, common risks, and where investors can verify official filings and data. Readers will learn what drives revenue for krp stock, how distributions are treated for tax purposes, and which resources to consult for real‑time quotes and filings.

As of June 30, 2024, according to the company’s SEC filings and investor materials, Kimbell Royalty Partners operates primarily across major U.S. onshore basins and offers investors cash distributions derived from production revenues. For the latest market values (market capitalization, daily trading volume) and operational metrics, consult the company’s SEC filings, investor relations materials, and market data providers.

Company profile

Business description

Kimbell Royalty Partners is a company that acquires and holds mineral and royalty interests in oil, natural gas and NGL producing properties. As a non‑operating owner, the company does not run drilling operations; instead, it receives royalty payments and other revenue streams tied to third‑party production and commodity prices. Kimbell is headquartered in Fort Worth, Texas.

Key statistics

This profile typically summarizes the ticker (KRP), exchange (NYSE), public listing details, market capitalization and workforce size. Exact market capitalization and trading volume for krp stock fluctuate daily—these figures are reported in the company’s periodic SEC filings and by major market data providers. Kimbell listed publicly through a series of transactions and corporate conversions in 2018 that changed its distribution reporting and tax form treatment.

History

Formation and early years

Kimbell Royalty Partners traces its roots to ownership and acquisition activity in mineral and royalty interests in U.S. onshore basins. The company built its portfolio by acquiring producing and non‑producing mineral and royalty assets from operators and private sellers, focusing on properties with existing production and identifiable cash flows. Early growth emphasized accretive purchases that could deliver immediate royalty revenue streams.

Conversion to taxable entity and public listing

A notable corporate milestone for krp stock was the 2018 conversion from a partnership structure to a taxable corporate structure. That change altered the company’s distribution reporting, moving investors from receiving K‑1 tax forms to receiving 1099‑DIV statements. The conversion aimed to broaden the investor base by simplifying tax reporting for retail investors. Following the conversion and related reorganizations, Kimbell began trading on the New York Stock Exchange under the ticker KRP. The shift to a taxable entity and NYSE listing had implications for how distributions are taxed and how shareholders access liquidity.

Business model and operations

Mineral and royalty ownership model

Kimbell’s business model centers on owning mineral and royalty interests. Mineral interests represent ownership of subsurface minerals and can include intermittent production or future drilling upside. Royalty interests are contractual rights to a percentage of production revenue from wells operated by third parties. For krp stock, this means revenue is derived from operators’ production sold at market prices; Kimbell typically bears no direct operating costs or capital expenditure obligations for the producing wells it benefits from.

Because Kimbell is a non‑operating owner, its cash flows are sensitive to the volume of hydrocarbons produced and the realized commodity prices. The absence of operating responsibilities lowers direct capital intensity but introduces dependencies on operator performance and field decline profiles.

Asset footprint and key basins

Kimbell’s portfolio spans several major U.S. onshore basins, with significant presence in the Permian Basin and other basins where U.S. onshore production is concentrated. The company’s assets include mineral acres and royalty interests covering thousands of acres and many producing wells. Exact acreage and well counts change with acquisitions and dispositions; current figures are disclosed in quarterly and annual reports filed with the SEC. The concentration of assets in prolific basins like the Permian often contributes a meaningful share of krp stock’s revenue.

Revenue drivers

Primary revenue streams for krp stock come from three commodity categories: oil (crude), natural gas, and natural gas liquids (NGLs). The main drivers of revenue and distributions include:

Production volumes from the underlying wells that burden the royalty/mineral interests.
Commodity prices received for oil, natural gas and NGLs, which can be volatile and influenced by global and domestic supply‑demand dynamics.
Operator activity such as drilling intensity, well completions and enhanced recovery practices that can alter production profiles.
Lease terms, acreage pooling and contract structures that determine royalty rates, deductions and timing of payments.

Because krp stock holders are indirectly tied to the operators’ capital spending and technical performance, operator credit quality and operational plans are material considerations for revenue stability.

Financials and distributions

Financial performance

Kimbell reports financial results in standard SEC formats (10‑Q, 10‑K) and supplemental investor presentations. Reported metrics commonly highlighted include revenue, net income (or loss), adjusted EBITDA or cash available for distribution (CAD), and operating cash flow. These indicators help investors assess the sustainability of distributions and the cash‑generating capacity of the royalty portfolio.

As asset portfolios grow through acquisitions, revenue and CAD typically respond to added production streams; however, month‑to‑month and quarter‑to‑quarter variability can be significant due to commodity price swings. For up‑to‑date figures on revenue, adjusted EBITDA and CAD for krp stock, consult the most recent quarterly (10‑Q) and annual (10‑K) SEC filings and the company’s investor presentation materials.

Dividend/distribution policy

Kimbell has historically provided cash distributions to shareholders, reflecting revenue from royalty and mineral interests. After the conversion that resulted in 1099‑DIV reporting, distributions became structured for taxable investors as dividends instead of partnership distributions reported on Schedule K‑1.

Key points about distributions for krp stock:

Distributions depend on realized production revenue and operating receipts from the underlying assets.
Yields can be attractive to income‑oriented investors but are also subject to volatility from commodity prices and production levels.
Distributions are reported on Form 1099‑DIV for taxable investors following the corporate conversion.

Investors should review recent distribution history and payout coverage metrics (distributions versus cash available for distribution) in the company’s financial disclosures before evaluating yield expectations.

Equity and market information

Stock listing and trading

krp stock trades on the New York Stock Exchange under the ticker symbol KRP. Liquidity and average daily trading volume can vary over time—investors can view live quotes, intraday prices and historical charts through brokerage platforms and market data providers. For investors seeking to trade krp stock, Bitget provides market access and trading functionality; users can consult Bitget’s platform for quote and execution services.

Valuation metrics and analyst coverage

Common valuation metrics cited in market coverage of krp stock include price‑to‑earnings (P/E), price‑to‑sales (P/S), dividend yield, enterprise value to adjusted EBITDA (EV/EBITDA), and historical total‑return performance. Kimbell may receive coverage from broker and independent equity analysts who focus on energy infrastructure, royalty companies and income securities. Analyst reports typically discuss distribution sustainability, portfolio quality, commodity exposure and acquisition pipelines.

Corporate governance and management

Board and executive team

Kimbell maintains a board of directors and an executive management team responsible for strategy, acquisition execution and portfolio management. The board oversees corporate governance, financial reporting and key strategic decisions. Management generally includes a CEO, CFO and heads of asset management and legal/compliance functions. Names and biographies of current executives and directors are published in the company’s proxy statements and investor relations materials.

Shareholder structure

Ownership of krp stock typically includes institutional investors, mutual funds, and retail shareholders. Institutional ownership trends and insider holdings are disclosed in filings such as Form 13F for institutional owners and Form 4 or proxy filings for insiders. The company’s structure following the 2018 conversion standardized shares and simplified the ownership model for taxable investors.

Growth strategy and transactions

M&A and acreage acquisitions

Kimbell’s growth strategy for krp stock has historically focused on accretive acquisitions of mineral and royalty interests. The company pursues purchases that add immediately producing reserves and predictable cash flows, prioritizing transactions that expand exposure in key basins and complement the existing portfolio. Transaction announcements, deal summaries and pro forma metrics are disclosed in press releases and SEC filings when completed.

Capital allocation

Capital priorities for krp stock generally include:

Funding accretive acquisitions to grow cash flow and distributions.
Returning cash to shareholders via distributions, subject to available cash and board policy.
Managing leverage and liquidity to maintain balance sheet flexibility.

The company’s annual and quarterly filings provide a snapshot of capital allocation decisions, debt levels, and acquisition pipeline activity.

Risks and considerations

Commodity price exposure

A principal risk for krp stock is exposure to commodity price volatility. Since royalty revenue is tied to the market prices of oil, natural gas and NGLs, downward movements in commodity prices can materially reduce revenue and distribution capacity. Conversely, price spikes can increase distributable cash but may also introduce short‑term volatility in valuation.

Production decline and concentration risks

Royalty and mineral interests are subject to natural production decline from legacy wells. Unless offset by new drilling or enhanced recovery activities by operators, production volumes can fall over time. Concentration risk is another factor: if a significant share of krp stock’s revenue derives from a limited number of basins, leases, or operators, adverse performance or operational issues at those sources can disproportionately affect cash flows.

Operator and counterparty risk

Because krp stock depends on operators to conduct field operations and sell production, counterparty performance and credit risk matter. Operator bankruptcies, reduced drilling activity or operational failures can lead to lower royalties collected or longer payment cycles.

Regulatory, environmental and market risks

Regulatory changes, taxation policy shifts, environmental rules, and broader energy transition dynamics can influence the economics of hydrocarbon production and therefore royalty revenues. Additionally, market sentiment around fossil fuels and ESG considerations may impact valuation and investor appetite for energy‑related income securities.

Investor relations and filings

Investor resources

Official investor resources for krp stock include the company’s investor relations page, SEC filings (10‑K, 10‑Q, 8‑K), earnings releases, investor presentations and the proxy statement. These sources provide authoritative information on financials, operations, governance, and distribution history.

Reporting cadence

Kimbell reports financial results on a quarterly basis and typically holds earnings calls or webcasts. Distributions and related notices are announced according to the company’s distribution policies and are summarized in investor materials and periodic filings.

For those tracking krp stock, reviewing the most recent 10‑Q or 10‑K offers verified figures for revenue, cash available for distribution, outstanding acreage and producing well counts.

Reception and market commentary

Analyst ratings and market perception

Market commentary on krp stock often frames the company as a royalty‑focused, income‑oriented equity with sensitivity to commodity prices. Analysts and investors evaluate the tradeoffs between yield potential and volatility. Ratings and price targets vary across analysts based on views of commodity outlooks, acquisition pipelines, and distribution sustainability. Readers should consult multiple analyst reports and the company’s own disclosures for a comprehensive view.

Media and research coverage

KRP is covered by financial news outlets and energy sector research platforms. Coverage typically includes transaction announcements, earnings results, and thematic pieces on royalty/mineral companies relative to other energy subsectors. For timely news and data on krp stock, check the company’s investor communications and reputable financial news sources.

References

Sources for factual verification on krp stock include:

Company SEC filings (Form 10‑K, Form 10‑Q, Form 8‑K)
Company investor relations materials and earnings releases
Major financial data providers and market data platforms
Analyst reports and in‑depth energy research publications

As of June 30, 2024, according to the company’s SEC filings and investor presentations, readers should consult those primary sources for exact, up‑to‑date figures and quantifiable metrics.

External links

Official company corporate site and investor relations page (see company disclosures for contact information and filings).
For trading access and market quotes on krp stock, investors may use Bitget’s trading platform and market tools.
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