Kimbell Royalty Partners Is My 12% Oil Income Play

Summary Kimbell Royalty Partners offers a compelling 12% yield, benefiting from surging oil prices and a scalable, asset-light royalty business model. Recent acquisitions expand KRP's mineral portfolio, and the company has raised its production guidance for Q3 and Q4. Management projects annualized distributions of $1.72–$1.92/share, supported by robust free cash flow and a 75% DCF payout target. This idea was discussed in more depth with members of my private investing community, High Dividend Opportunities. Learn More » Sunshine Seeds/iStock via Getty Images Co-authored with Hidden Opportunities If you don't know why oil is going up so much, I want to move into your cave! The war with Iran has been all over the news, and it's expanding. A This article was written by Rida Morwa 127.16K Followers Follow Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991. Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield. Features include: model portfolio with buy/sell alerts, preferred and baby bond portfolios for more conservative investors, vibrant and active chat with access to the service’s leaders, dividend and portfolio trackers, and regular market updates. The service philosophy focuses on community, education, and the belief that nobody should invest alone. Learn More. Analyst’s Disclosure: I/we have a beneficial long position in the shares of KRP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Beyond Saving, Philip Mause, and Hidden Opportunities, all are supporting contributors for High Dividend Opportunities. Any recommendation posted in this article is not indefinite. We closely monitor all of our positions. We issue Buy and Sell alerts on our recommendations, which are exclusive to our members. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.