An 11% Yield and Exposure Across 28 States: What Makes Kimbell Royalty (KRP) Stand Out?

With a short percentage of shares outstanding of 2.15%, Kimbell Royalty Partners, LP (NYSE:KRP) is among the 7 Best “Land Owner” Stocks to Buy for Hard Asset Value.

On May 29, RBC Capital initiated coverage of Kimbell Royalty Partners, LP (NYSE:KRP) with an Outperform rating and a $20 price target. The firm highlighted the company’s geographically diversified portfolio of mineral and royalty interests, which spans 28 states and includes exposure to nearly every major onshore U.S. energy basin. RBC also emphasized Kimbell’s attractive income profile, describing the partnership as a compelling yield-oriented investment and noting that its approximately 11% yield ranks among the highest in its peer group.

Earlier, on May 19, Kimbell Royalty Partners, LP (NYSE:KRP) announced an agreement to acquire mineral and royalty interests from Mesa Royalties in a transaction valued at approximately $147 million. The acquisition is expected to add roughly 1,390 barrels of oil equivalent per day of production over the next twelve months and contribute approximately 7.67 million barrels of oil equivalent in proved reserves. Management believes the transaction will significantly expand the company’s footprint across key producing regions, increasing exposure to more than 17 million gross acres, over 135,000 gross wells, and approximately 18% of all active land drilling rigs in the continental United States.

Kimbell Royalty Partners, LP (NYSE:KRP) is headquartered in Fort Worth, Texas, and was founded in 1998. The partnership acquires and manages oil, gas, mineral, and royalty interests, generating revenue from third-party drilling activity without assuming the operating costs or capital expenditures associated with exploration and production. Its extensive portfolio of perpetual mineral interests provides exposure to energy production while maintaining an asset-light business model.

READ NEXT:  10 Best Insurance Stocks to Buy Following Q1 Earnings and Top 10 Stocks That Members of Congress Own.

Disclosure: None.  Follow Insider Monkey on Google News.