Kimbell Royalty Partners, LP

Diversified, low-decline oil & gas mineral and royalty franchise with top-percentile cash-flow margins and a capital-light model.

Strengths

• OCF margin 73.8% (97th pct) and operating margin 39.8% (93.4th pct) with no drilling/capex obligations
• Highly diversified (28 states, ~1,300 operators, 12.3M gross acres) with very strong liquidity (current ratio 8.6) and 7.9% revenue growth

Risks

• Revenues tied to volatile oil/gas/NGL prices and reliant on third-party operators' development pace
• MLP structure distributes nearly all cash, limiting retained capital, with Series A preferred and credit-facility constraints

Notable findings

• Revenue declineRevenue -20.5% YoY