Kimbell Royalty Partners, LP (KRP): Business Model Canvas [Dec-2025 Updated]

You're trying to map out how an energy company can generate compelling, passive income without owning the actual drilling rigs, and Kimbell Royalty Partners, LP (KRP) offers a textbook example of that asset-light approach. Honestly, their model is clean: they simply acquire premier mineral interests and collect royalties, sidestepping the massive capital expenditure (CapEx) risk that plagues operators. This strategy is clearly effective, as evidenced by their Q3 2025 total revenue hitting $80.6 million and their high-quality acreage capturing 16% of US land rigs drilling in that same period. If you want to see the full architecture-from their $448.5 million credit facility to the tax-advantaged 1099-DIV distributions they pass to investors-check out the complete Business Model Canvas breakdown right below.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Key Partnerships

Kimbell Royalty Partners, LP relies on several critical external relationships to execute its mineral and royalty interest acquisition and management strategy. These partnerships span the operational side with the drillers, the financial side with lenders and capital markets advisors, and the transactional side with sellers of assets.

Major E&P Operators for Drilling Activity

Kimbell Royalty Partners, LP benefits from development activity on its acreage at no direct capital cost to the partnership. The level of activity directly impacts the royalty revenue stream. As of September 30, 2025, Kimbell Royalty Partners, LP had 86 rigs actively drilling on its acreage, which represented approximately 16% market share of all land rigs drilling in the continental United States at that time. This robust activity level is a key driver for the business model, as Kimbell is entitled to cash flow from production without incurring capital expenditures for drilling.

The operators working on Kimbell Royalty Partners, LP's mineral interests include major energy companies. Kimbell Royalty Partners, LP offers exposure to very solid operators, such as ConocoPhillips (COP), Exxon Mobil (XOM), Devon Energy (DVN) or Occidental Petroleum (OXY).

Key statistics regarding drilling activity on Kimbell Royalty Partners, LP acreage:

• Rigs actively drilling as of March 31, 2025: 90
• Market share of U.S. land rig count as of March 31, 2025: 16%
• Net wells needed to maintain flat production as of September 30, 2025: estimated 6.5 net wells
• Net DUCs (Drilled but Uncompleted) and permitted locations as of September 30, 2025: 7.07 net

Bank Syndicate Providing the Secured Revolving Credit Facility

The secured revolving credit facility is a crucial element for providing liquidity, especially to fund the cash portion of acquisitions. The syndicate partners enable Kimbell Royalty Partners, LP to maintain financial flexibility. The borrowing base and aggregate commitments on the facility were increased from $550 million to $625 million on May 1, 2025.

The commitment to debt management is evident, as Kimbell Royalty Partners, LP plans to utilize 25% of its quarterly cash available for distribution to pay down outstanding borrowings under this facility. This disciplined approach helps manage leverage, which is a priority for management.

Here is a snapshot of the facility's utilization as of late 2025:

Sellers of Mineral Interests for Large, Accretive Acquisitions

Acquisitions are the primary growth engine, focusing on deals that are equity accretive and large enough to move the needle, generally over $100 million. A significant partnership in early 2025 was with a private seller for a large asset package. Kimbell Royalty Partners, LP closed the previously announced purchase of mineral and royalty interests held by a private seller in a cash transaction valued at approximately $230 million on January 17, 2025. Another report cites the value as approximately $231 million.

Details of the January 2025 Acquisition:

• Seller: Private seller, identified as Boren Minerals
• Transaction Value: Approximately $230 million or $231 million
• Effective Date: October 1, 2024
• Estimated 2025 Production from Acquired Assets: Approximately 1,842 Boe/d
• Geographic Concentration: Midland Basin, Martin County (63%) and Andrews County (37%)

This acquisition was projected to enhance daily production by about 8% and reduce cash general and administrative expenses per Boe by about 7%.

Investment Banks for Equity and Debt Capital Raises

When funding the cash component of acquisitions or managing the balance sheet, Kimbell Royalty Partners, LP engages investment banks for capital raises. In January 2025, Kimbell Royalty Partners, LP announced the pricing of an upsized public offering of 10,000,000 common units at a public offering price of $14.90 per common unit, resulting in total gross proceeds of approximately $149.0 million.

The investment banks involved in this January 2025 offering included:

• Joint-bookrunning managers: Citigroup, J.P. Morgan, RBC Capital Markets, BofA Securities, and Mizuho
• Lead book-running managers: Citigroup, J.P. Morgan, and RBC Capital Markets
• Co-managers: PNC Capital Markets LLC, KeyBanc Capital Markets, Capital One Securities, and TCBI Securities, Inc.

The net proceeds from this offering were intended for the repayment of outstanding borrowings under the revolving credit facility.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Key Activities

You're running a mineral and royalty interest business, so your key activities revolve around smart buying, disciplined management, and returning capital. Here's how Kimbell Royalty Partners, LP (KRP) executes those functions as of late 2025, based on their Q3 2025 results.

Acquiring premier, long-life mineral and royalty interests

Kimbell Royalty Partners, LP focuses on acquiring interests that offer longevity and are situated in prime areas. This activity is central to their growth strategy. For instance, in January 2025, Kimbell Royalty Partners, LP closed a cash transaction valued at approximately $230 million to purchase mineral and royalty interests in the Midland Basin, specifically under the historic Mabee Ranch. This acquisition was estimated to contribute approximately 1,842 Boe/d for the full year 2025. Kimbell Royalty Partners, LP owns interests in over 131,000 gross wells across 28 states, with a significant portion of their acreage concentrated in key basins.

Managing and optimizing the existing royalty portfolio

Managing the portfolio means tracking development activity to ensure the assets are producing efficiently and identifying future potential. Kimbell Royalty Partners, LP monitors rig counts closely as a proxy for near-term production. As of September 30, 2025, there were 86 rigs actively drilling on Kimbell Royalty Partners, LP acreage, which represented approximately 16% market share of all land rigs drilling in the continental United States at that time. The company maintains a robust inventory of future drilling locations to support production longevity.

Here are the key operational metrics reflecting the portfolio as of September 30, 2025:

Financial management, including debt paydown and distributions

Financial management for Kimbell Royalty Partners, LP involves generating cash flow from royalties, deploying a portion to pay down debt, and distributing the remainder to unitholders. For the third quarter of 2025, Kimbell Royalty Partners, LP reported total oil, natural gas, and NGL revenues of $76.8 million and consolidated Adjusted EBITDA of $62.3 million. The company declared a Q3 2025 cash distribution of $0.35 per common unit, which represented a 75% payout ratio of cash available for distribution (CAFD). The remaining 25% of CAFD is explicitly used to repay borrowings under the secured revolving credit facility. This disciplined approach is evident in their leverage metrics.

The commitment to debt reduction is a consistent activity, even following the January 2025 acquisition. For example, as of September 30, 2025, debt outstanding under the secured revolving credit facility was approximately $448.5 million, resulting in a net debt to trailing twelve-month consolidated Adjusted EBITDA of approximately 1.6x. This compares to a debt level of $299 million as of March 31, 2025, showing debt fluctuation tied to operational cash flow and capital deployment. Furthermore, the company simplified its capital structure in May 2025 by redeeming 50% of its outstanding Series A Cumulative Convertible Preferred Units.

Engineering and geological analysis for asset valuation and growth

While specific engineering reports aren't public in detail, the activity is demonstrated through the focus on DUCs (Drilled Uncompleted Wells) and permitted locations, which are direct outputs of geological and engineering planning. The analysis informs acquisition targets and production maintenance estimates. The Q3 2025 data shows 7.07 net DUCs and net permitted locations compared to an estimated 6.5 net wells needed to maintain flat production. This suggests that Kimbell Royalty Partners, LP's engineering and geological teams are actively valuing and tracking inventory that is slightly ahead of the estimated maintenance level required for their current asset base.

The focus on the Midland Basin acquisition in January 2025, concentrated in Martin County (63%) and Andrews County (37%), shows that geological analysis is driving capital to core, high-quality areas. The Q3 2025 realized prices per unit of production were:

• Oil: $64.21 per Bbl.
• Natural Gas: $2.47 per Mcf.
• NGLs: $21.74 per Bbl.

Finance: draft 13-week cash view by Friday.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Key Resources

You're looking at the core assets that power Kimbell Royalty Partners, LP's royalty toll booth model. These aren't operational assets requiring capital expenditure; they are the mineral and royalty interests themselves, which generate passive cash flow when operators drill.

The scale of the underlying asset base is massive, providing a wide geographic and operational footprint across the United States energy landscape. This forms the foundation for their ability to maintain production stability even when commodity prices fluctuate.

Here's a breakdown of the primary tangible and financial resources Kimbell Royalty Partners relies on as of late 2025, drawing heavily from the Q3 2025 reporting period.

The company's physical resource base is best summarized in this table:

The financial structure supporting this asset base is also a key resource, particularly the liquidity available for opportunistic growth or balance sheet management. Kimbell Royalty Partners intends to use a portion of its cash flow to manage this facility, showing a clear financial discipline.

• Secured revolving credit facility debt outstanding: $448.5 million as of September 30, 2025.
• Undrawn capacity on the secured revolving credit facility: $176.5 million as of September 30, 2025.
• Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA: Approximately 1.6x as of September 30, 2025.
• Cash allocated to debt repayment from Q3 2025 cash available for distribution: 25%.

The inventory of uncompleted wells and permits is a direct measure of near-term, low-cost production visibility. This inventory provides confidence in maintaining production levels without relying on new acreage acquisitions.

• Net wells needed to maintain flat production (management estimate): 6.5 net wells.
• The current inventory of 7.07 net DUCs and permitted locations exceeds the maintenance estimate.

Also, their operational leverage, reflected in low internal costs, is a critical resource. Cash General and Administrative (G&A) expense per barrel of oil equivalent (BOE) demonstrates this efficiency.

Cash G&A per BOE in Q3 2025 was $2.51. That's a tight ship, honestly.

Finance: draft 13-week cash view by Friday.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Value Propositions

You're looking at Kimbell Royalty Partners, LP (KRP) as a pure-play way to get exposure to US oil and gas royalties, and the value proposition is built squarely on passive income and low operational headaches. Honestly, the model is simple: Kimbell owns the land rights, and the big operators do the expensive, risky drilling.

High, compelling, and tax-advantaged cash yield for investors.

The cash yield is definitely the headline draw for Kimbell Royalty Partners, LP. For the third quarter of 2025, the declared cash distribution was $0.35 per common unit, payable on November 24, 2025. This translated to an annualized yield of 10.7% based on the November 5, 2025 closing price of $13.12 per common unit. This distribution policy is deliberate; management approved paying out 75% of cash available for distribution (CAD) to unitholders for Q3 2025. The remaining 25%, which amounted to approximately $12.6 million for the quarter, was aggressively applied to pay down debt under the secured revolving credit facility.

Pure-play royalty model with low capital expenditure (CapEx) risk.

This is the core of the asset-light story. Kimbell Royalty Partners, LP collects passive royalty payments from the companies actually operating the wells, like ConocoPhillips and ExxonMobil. This structure means Kimbell has zero capital expenditure requirements for drilling and completion activities. You get the upside without the operational burden. While the company uses debt for accretive acquisitions, like the $230 million Midland Basin deal closed in January 2025, it actively manages leverage. As of September 30, 2025, the Net Debt to Trailing Twelve Month (TTM) Consolidated Adjusted EBITDA stood at 1.6x. This is a key metric showing how the cash flow supports the debt load.

Diversified exposure across major US onshore basins.

Kimbell Royalty Partners, LP's asset base is spread across the most active US plays, which helps smooth out production volatility. As of late 2025, the portfolio covers interests in over 131,000 gross wells across 28 states. You are getting exposure to premier resource plays, with nearly 96% of production coming from seven key onshore plays. The Permian Basin is central, contributing 52% of revenue and 43% of production in Q1 2025, though Q2 saw the Permian account for 54% of revenue and 44% of production. The company's operational activity is high, with 86 active rigs drilling on its acreage as of September 30, 2025, representing approximately 16% market share of all land rigs drilling in the continental US.

Here's a look at the scale and activity supporting the royalty cash flow:

The diversification spans basins including the Permian, Eagle Ford, Bakken, Appalachia, Mid-Continent, Haynesville, and Rockies.

Distributions via 1099-DIV, simplifying tax reporting (no K-1).

For you as an investor, the tax treatment is a major convenience. Kimbell Royalty Partners, LP distributions are structured to be largely non-taxable in the year received. For the third quarter of 2025, Kimbell expected approximately 100% of the distribution to constitute non-taxable reductions to the basis of your ownership interest, rather than being taxed as ordinary dividends. This is a significant advantage over many other energy partnerships that issue a K-1 form; Kimbell simplifies this by issuing a 1099-DIV.

You can see the trend in the tax treatment here:

• Q3 2025 Distribution Tax Estimate: Approximately 100% return of capital.
• Q2 2025 Distribution Tax Estimate: Approximately 100% return of capital.
• Q1 2025 Distribution Tax Estimate: Approximately 70% estimated to be non-taxable reductions to tax basis.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Customer Relationships

You're looking at how Kimbell Royalty Partners, LP (KRP) manages the crucial connections with its two main customer groups: the unitholders who provide capital and the operators who develop the assets generating the cash flow. For KRP, these relationships are built on predictable financial communication and clear transactional terms.

Investor Relations team for transparent financial communication

Kimbell Royalty Partners, LP maintains a consistent cadence of communication with its investors, which is key for an entity focused on royalty distributions. This isn't just about sending out a press release; it's about scheduled, in-depth reviews of performance. For instance, you can see the regular rhythm in their 2025 schedule, which included earnings calls for Q1 on May 8, Q2 on August 7, and Q3 on November 6. Also, they supplement these with investor-facing materials, such as the Winter 2025 Investor Presentation released on November 6, 2025. This structure helps you, the investor, model their cash flow expectations reliably.

Here's a look at the typical investor communication schedule you can expect from Kimbell Royalty Partners, LP:

Proactive disclosure of distribution policy (75% payout ratio)

The commitment to unitholders centers heavily on the distribution policy. Kimbell Royalty Partners, LP proactively discloses that it targets a 75% payout ratio of its cash available for distribution to common unitholders. This is a concrete action that sets expectations for the portion of cash flow returned to you versus the portion retained for balance sheet management, like paying down debt. For example, the Q3 2025 cash distribution of \$0.35 per common unit reflected this 75% policy, with the remaining 25% earmarked to pay down borrowings under the secured revolving credit facility. To be fair, the payout ratio based on free cash flow was reported slightly higher at 77.2% for the period ending September 2025. This clear policy helps manage the relationship by linking variable cash generation to a predictable return mechanism.

Transactional relationship with mineral sellers

When Kimbell Royalty Partners, LP acquires new assets, the relationship with the seller is purely transactional but grounded in a stated philosophy of fairness. They position themselves as a premier and trusted buyer of mineral rights and royalty interests. The value proposition offered to sellers is clear and direct, which helps streamline the acquisition process.

• Receive an upfront cash payment for the value of your mineral assets.
• Eliminate the uncertainty and risks associated with future royalty streams.
• Help facilitate estate management.

Kimbell states its integrity guides this approach, offering fair valuations for high-quality properties to ensure the best outcome for both parties involved in the transaction. This focus on quality assets, such as those in the Permian Basin, is central to their growth strategy.

Automated royalty payment processing with operators

The relationship with the operators-the companies actually drilling and producing the oil and gas-is fundamentally transactional and relies on efficient processing. Kimbell Royalty Partners, LP depends on these unaffiliated operators for all exploration and production on the acreage where KRP holds mineral and royalty interests. KRP's revenue is derived directly from the royalty payments these operators make based on the sale of production. While specific details on the automation technology aren't public, the scale of the operation implies a need for robust systems to handle payments from numerous sources. As of late 2025, Kimbell's portfolio spans interests in over 131,000 gross wells across 28 states. Historically, as of the end of 2015, they had over 700 operators on their acreage. Kimbell benefits because the operators cover all the exploration, development, and operating costs, meaning KRP incurs no associated operating costs or capital expenditures for these wells.

This operational reality means the relationship with operators is managed through contracts and payment schedules, not direct management. Here's a snapshot of the asset base that generates these payments:

Finance: draft the Q4 2025 cash flow projection incorporating the 75% distribution policy by January 15, 2026.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Channels

You're looking at how Kimbell Royalty Partners, LP (KRP) gets its message out and how it finds new assets. The public face starts with the New York Stock Exchange (NYSE), where the common units trade under the ticker KRP. As of December 5, 2025, the market capitalization stood at $956.46 M, based on 93.40 M shares outstanding. The trading volume on that day was relatively low, with 10,062.00 units traded. The 52-week trading range for KRP units has been between a low of $10.98 and a high of $16.99.

The Investor Relations website, www.kimbellrp.com, serves as the central hub for current and prospective investors. This channel is key for disseminating official updates, including quarterly earnings calls. For instance, the Third Quarter 2025 Results were announced on November 6, 2025, followed by the corresponding Earnings Conference Call scheduled from 11:00am - 12:00pm EST on the same day. You can find the latest deep dive materials there, such as the Winter 2025 Investor Presentation, also posted on November 6, 2025.

Kimbell Royalty Partners, LP uses several methods to reach the broader financial community, which includes analysts and the investment public.

• Investor Relations website: www.kimbellrp.com.
• Quarterly Earnings Calls: Held for Q1, Q2, and Q3 2025 results.
• Investor Presentation Updates: Posted on the website following major announcements.
• Tax Information: Provides documentation for investors, noting that KRP issues a 1099-DIV instead of a K-1 due to its corporate tax election.

Market reach through financial news outlets and analyst reports shows a mixed but engaged view of KRP. As of late 2025, Kimbell Royalty Partners, LP is covered by 11 analysts. The consensus rating from some sources around December 2025 was a Hold, with an average price target of $14.50, implying an 8.29% upside from that period's closing price.

Here's a snapshot of the analyst sentiment and trading data around the Q3 2025 release:

The direct outreach channel is focused on the core business: acquiring mineral and royalty interests. This is a relationship-driven process with mineral owners. The success of this channel is evident in major capital deployment, such as the $230.4M cash expenditure in Q1 2025 to acquire rights across 68,000 acres in the Mabee Ranch, Midland Basin, Texas. Kimbell Royalty Partners, LP's scale, which is built through these acquisitions, is substantial.

The scale of Kimbell Royalty Partners, LP's asset base, which is the direct result of its acquisition channel, is detailed below:

The company maintains a conservative balance sheet, with net debt to third quarter 2025 trailing twelve month consolidated Adjusted EBITDA of approximately 1.6x as of September 30, 2025, which supports continued acquisition funding. Finance: draft 13-week cash view by Friday.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Customer Segments

You're looking at the customer base for Kimbell Royalty Partners, LP (KRP) as of late 2025. Honestly, Kimbell doesn't have customers in the traditional sense of selling a product; instead, its 'customers' are the counterparties that generate the cash flow-the royalty owners who sell their interests to Kimbell, and the operators who drill on Kimbell's acreage. But for the Business Model Canvas, we focus on who Kimbell serves and who provides the capital.

The primary groups Kimbell Royalty Partners, LP serves can be broken down into those providing capital (investors) and those providing the activity (operators). Here's how the segments look based on the Q3 2025 data.

Income-focused retail and institutional investors are looking for yield and tax efficiency. They are buying Kimbell common units, which trade on the NYSE. You saw the Q3 2025 cash distribution was declared at $0.35 per common unit. That translated to an annualized yield of 10.7% based on the November 5, 2025 closing price of $13.12 per unit. The appeal here is that Kimbell estimates approximately 100% of this distribution is considered a return of capital, meaning it's tax advantaged for the unitholder. Institutional ownership stood at 31.63% recently, while insider ownership was 4.36%. As of September 30, 2025, there were 93,396,488 common units outstanding.

Energy-sector portfolio managers seeking low-risk exposure value Kimbell's pure-play royalty structure. They want commodity exposure without the capital expenditure headache. Kimbell owns mineral and royalty interests across over 131,000 gross wells in 28 states. The key benefit for these managers is that Kimbell has zero associated operating costs or capital expenditures to support the production. The financial health metrics show a net debt to Q3 2025 trailing twelve month consolidated Adjusted EBITDA ratio of approximately 1.6x, and Q3 2025 consolidated Adjusted EBITDA was $62.3 million. Plus, as of September 30, 2025, they had $176.5 million in undrawn capacity on their credit facility, showing good liquidity.

For mineral and royalty owners looking for a defintely clean exit, Kimbell positions itself as the premier consolidator. You know the minerals space is fragmented; Kimbell is actively buying. They have completed over $2.0 billion in M&A transactions since their 2017 IPO, aiming to grow their acreage in that estimated $719 billion market. They offer a clean exit because once they buy the interest, the seller is done with land management, regulatory filings, and dealing with operators-Kimbell takes on that relationship.

Finally, the oil and gas operators seeking high-quality, de-risked acreage to drill are Kimbell's operational partners. These are the companies paying the royalties. Kimbell's acreage is highly active; as of September 30, 2025, there were 86 rigs actively drilling across their properties. That represented about 16% market share of all land rigs drilling in the continental US at that time. Operators are drilling into Kimbell's inventory, which included 7.07 net DUCs and net permitted locations as of that date, which is more than the estimated 6.5 net wells needed just to maintain flat production. This high activity in their core areas-where approximately ~98% of all Lower 48 onshore rigs operate-makes Kimbell's acreage attractive for development.

Here's a quick look at the operational scale that supports these segments:

• Gross Wells with Kimbell Interest: Over 131,000
• Gross Acres Owned: Over 17 million
• Q3 2025 Run-Rate Daily Production: 25,530 Boe/d
• Production Mix (Q3 2025): 52% Liquids (32% Oil, 20% NGLs)
• Production Mix (Q3 2025): 48% Natural Gas

The relationship with operators is key, as Kimbell collects royalty payments based on their production volumes and commodity prices, without any associated capital outlay. The table below summarizes key financial and operational data relevant to these customer/counterparty groups as of late 2025.

You can see the model is built around attracting capital from investors seeking yield and low-risk exposure, while simultaneously ensuring high development activity from the operators on the ground. Finance: draft 13-week cash view by Friday.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Cost Structure

You're looking at the core expenses Kimbell Royalty Partners, LP (KRP) faces to keep the royalty machine running. For a royalty company, the cost structure is generally leaner than an operator's, but you still have overhead, financing costs, and the capital deployed for growth.

The General and Administrative (G&A) expenses show a clear focus on operational discipline, which is key for a partnership structure like KRP. The total G&A for the third quarter of 2025 hit $10.1 million.

Here's a quick breakdown of that G&A for Q3 2025:

• Cash G&A expense was $5.9 million.
• Cash G&A expense per BOE was $2.51.
• Non-cash unit-based compensation expense was $4.2 million.

Interest expense on the secured revolving credit facility is a direct financing cost you need to watch. As of September 30, 2025, Kimbell Royalty Partners, LP had approximately $448.5 million in debt outstanding under this facility. The interest expense itself will fluctuate based on the prevailing rates applied to this outstanding balance. Kimbell Royalty Partners, LP intends to use 25% of its cash available for distribution from Q3 2025 to pay down a portion of this revolver debt, which helps manage the interest cost base going forward.

Acquisition costs for new mineral and royalty interests drive the growth component of the cost structure, though these are often capitalized or netted against asset sales. Kimbell Royalty Partners, LP management tends to be very careful and selective with these purchases, aiming to stay disciplined. On average, management has indicated they execute somewhere between one and three deals per year. The cost structure here is less about recurring operational expense and more about the capital deployed for the next set of cash-flowing assets.

The non-cash expenses are significant for understanding distributable cash flow versus GAAP net income. Unit-based compensation, which is a non-cash G&A expense, totaled $4.2 million in the third quarter of 2025. This amount is added back when calculating non-GAAP measures like Adjusted EBITDA, which management uses to evaluate operating performance.

You should also keep an eye on other variable costs that impact the net revenue realized, even if they aren't strictly part of the G&A line item. For instance, marketing deductions were noted as elevated in Q3 2025 due to the production mix, which is a cost Kimbell Royalty Partners, LP manages through its marketing arrangements.

Finance: draft 13-week cash view by Friday.

Kimbell Royalty Partners, LP (KRP) - Canvas Business Model: Revenue Streams

You're looking at Kimbell Royalty Partners, LP (KRP) and need to map out exactly where the cash comes from. Since KRP is an asset-light mineral and royalty interest owner, the revenue streams are wonderfully straightforward: they collect passive royalty payments from the operators drilling on their acreage. This means Kimbell Royalty Partners, LP doesn't bear the capital or operating expenses; they just collect their slice of the production pie.

The headline number you need to see for the third quarter of 2025 is the total revenue, which hit $80.6 million for Q3 2025. That figure reflects the spot market prices for oil, natural gas, and NGLs during that period. For context, the estimated full-year 2025 sales projection sits at approximately $336.65 million. Kimbell Royalty Partners, LP's growth engine relies heavily on accretive acquisitions, like the $230 million acquisition of Midland Basin interests completed in January 2025, which immediately added about 1,842 Boe/d to the run-rate. That's how you bolt-on revenue growth when you don't drill yourself.

The core of the revenue is the royalty payments from oil, natural gas, and NGL production. For Q3 2025, the revenue specifically from these commodities totaled $76.8 million. This revenue is directly tied to the run-rate daily production, which Kimbell Royalty Partners, LP reported at over 25,530 Boe/d for Q3 2025. The Permian Basin remains central to this, contributing about 54% of revenue based on Q2 2025 data.

Here's a quick look at the commodity revenue breakdown and the realized prices that drove that $76.8 million figure in Q3 2025:

The production mix itself tells you where the volume is coming from, which is key to understanding the revenue stability. You can see the shift toward gas compared to prior periods.

• Run-rate daily production for Q3 2025 was 25,530 Boe/d.
• Production was composed of approximately 48% from natural gas.
• Liquids accounted for approximately 52% of production volume.
• The liquids split was roughly 32% from oil and 20% from NGLs.

Kimbell Royalty Partners, LP's structure means its revenue is a function of volume (which acquisitions and drilling activity affect) and commodity prices. The company actively hedges price risks using oil and natural gas options and futures contracts to manage the volatility inherent in this revenue stream. Finance: draft 13-week cash view by Friday.