Oil, natural gas and NGL price volatility
Royalty revenue is tied to realized commodity prices and production volumes, so lower prices reduce cash flow quickly.
- Scope
- All royalty income
- Materiality
- high
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.
77,1 %
29,9 %
+7,9 %
8.64
8.64
| % | |
|---|---|
| Mineral interests | 55% Ownership interests in oil and gas acreage that entitle the partnership to royalty income without operating the wells. |
| Overriding royalty interests | 35% Royalty interests carved out of production that generate cash flow from operator activity on the underlying acreage. |
| Commodity-linked royalty income | 10% Cash receipts tied to oil, natural gas and NGL production volumes and realized prices. |
Kimbell does not sell to end consumers; its economic counterparties are oil and gas operators that develop and produce...
- Upstream oil and gas operatorsprimary
Operators drill and produce on Kimbell's acreage and pay royalty income based on production and realized prices.
- Working interest ownersprimary
These counterparties develop the wells and generate the production stream that drives royalty payments.
- Asset sellers and sponsorssecondary
Owners of mineral and royalty packages that Kimbell acquires to expand its acreage base.
- Derivatives counterpartiessecondary
Financial institutions or trading counterparties used for oil and gas hedging contracts.
Kimbell’s assets are entirely U.S.-based, with mineral and royalty interests in 28 states and every major onshore basin...
- •All revenue is tied to U.S. onshore oil and gas production
- •Mineral and royalty interests span 28 states
- •Permian Basin is the largest basin exposure
- •Mid-Continent is another major cash-flow region
- •Texas concentration increases exposure to Texas producing basins
Kimbell’s strategy is to grow through disciplined acquisitions of mineral and royalty interests while preserving a...
01
Acquire additional mineral and royalty assetsmedium-term
Growth depends on adding acreage that can generate royalty cash flow without operating capital intensity.
02
Preserve balance sheet flexibilityshort-term
A conservative capital structure supports distributions and allows the partnership to act on acquisition opportunities.
03
Capture value from operator drilling inventorymedium-term
Royalty growth depends on third-party drilling and completion activity across the acreage base.
Kimbell’s cash flow is highly exposed to oil, natural gas and NGL prices, as well as to the drilling and completion...
Operator drilling and completion activity
Kimbell does not control development timing; fewer wells or slower completions can weaken growth and offset natural decline less effectively.
- Scope
- Acreage in major basins
- Materiality
- high
Distribution coverage and capital allocation
Preferred unit distributions, debt payments and reserves reduce cash available for common unitholders.
- Scope
- Quarterly distributions
- Materiality
- high
Reserve estimation and impairment risk
Full-cost depletion and ceiling tests depend on proved reserve estimates, which can change with prices and drilling results.
- Scope
- Oil and gas properties
- Materiality
- high
Related-party services dependence
The partnership relies on Kimbell Operating and affiliates for management and operational services, creating execution and alignment risk.
- Scope
- Operations and acquisitions
- Materiality
- medium
Full-cost ceiling test and depletion
Can materially change operating income and asset values
Commodity derivative accounting
Affects earnings volatility and cash flow visibility
Income tax and distribution treatment
Affects tax expense and unitholder after-tax returns
: 28.4.2026