Kimbell Royalty Partners combines an 11.16% yield, 6.78x forward EV/EBITDA, and accretive Permian consolidation with meaningful commodity and dilution risk.
Overview
Kimbell Royalty Partners LP is a Fort Worth-based pure-play mineral and royalty partnership that owns interests across 17 million gross acres, 28 states, and more than 135,000 gross wells. Unlike upstream E&P companies, KRP receives royalty revenue without bearing development capex, lease operating expense, or environmental liabilities, producing a structurally high cash-conversion business. Q1 2026 run-rate production was 25,522 Boe/d, with 53% liquids, while 85 active rigs supported the portfolio before the Mesa acquisition increased the count to 93. **The core attraction is an 11.16% forward distribution yield backed by a 75% payout of cash available for distribution**, with approximately 72% of recent distributions classified as non-taxable return of capital. Financially, Q1 revenue was distorted by an $18.82 million derivative loss: GAAP revenue was $65.5 million versus an $88.98 million consensus estimate, but Adjusted EBITDA reached $68.0 million and cash available for distribution was $53.0 million, or $0.54 per unit. At $14.70, KRP trades at 6.78x forward EV/EBITDA, a 15% discount to historical averages. **Near-term catalysts include Mesa accretion, DUC completions, debt reduction, and potential recovery toward the $19.50 analyst consensus target.**