Kimbell Royalty Partners: Upgrading To Buy As Growth Accelerates

Kimbell Royalty Partners (KRP) is upgraded to Buy following two accretive acquisitions funded without incremental debt. Recent deals expand KRP’s scale, diversify its portfolio, and add high-quality, PDP-heavy assets with strong near-term and long-term cash flow visibility. KRP now offers a sector-leading ~11% yield, trades at the lowest cash-flow-based multiples among peers, and maintains prudent leverage. Risks include commodity price exposure, variable distributions, and execution risk on inventory, but recent disciplined capital allocation narrows the gap with top peers.

When I last covered Kimbell Royalty Partners ( KRP ) in May, I landed on a Hold. It's not that I didn't like the stock. This is a well-run diversified mineral and royalty stock that pays