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How to Buy Kimbell Royalty Partners, LP (KRP) Shares - Investment in Kimbell Royalty Partners, LP (KRP) Stock

25 August 2025
4 min to read
How to buy Kimbell Royalty Partners, LP (KRP) shares – Investment in Kimbell Royalty Partners, LP (KRP) stock

Thinking about adding a high-yield energy play to your portfolio? Kimbell Royalty Partners (KRP) offers a unique opportunity to invest in oil and gas royalties without the operational risks of traditional energy companies. With a massive 12.63% dividend yield and strong Q2 2025 results, this stock deserves serious consideration from income-focused investors. Let's break down everything you need to know about investing in KRP.

📈 Kimbell Royalty Partners Stock Analysis: Price, Trends, and Key Dates

As of August 25, 2025, Kimbell Royalty Partners (KRP) trades at $14.70 on the NYSE. Mark your calendar: November 6, 2025 is absolutely critical. That’s when KRP releases its Q3 earnings report, and these announcements have historically moved the stock significantly.

How Earnings Reports Impact KRP Stock Performance

Date Event Pre-News Price Post-News Change
Aug 7, 2025 Q2 Earnings $13.63 +7.8% (1 week)
May 8, 2025 Q1 Earnings $12.45 +9.4% (beat estimates)
Feb 6, 2025 Annual Results $11.80 +6.8% (strong guidance)
Nov 7, 2024 Q3 Earnings $12.20 -3.2% (missed targets)
Aug 8, 2024 Q2 Earnings $13.10 +4.6% (production growth)
May 9, 2024 Q1 Earnings $11.95 +2.1% (steady performance)

Trend Insight: Positive earnings surprises typically boost KRP by 6-9%, while misses cause temporary dips of 3-4%. The stock has shown resilience with quick recoveries due to its strong dividend support.

📊 6-Month Price Journey (March-August 2025)

KRP shares have delivered an impressive 18.2% return over the past six months:

  • March: $12.45 (post-winter production recovery)
  • April: $13.20 (oil price stabilization benefits)
  • May: $13.80 (Q1 earnings beat excitement)
  • June: $13.10 (temporary pullback on broader market concerns)
  • July: $13.95 (summer production increases)
  • August: $14.70 (Q2 results driven momentum)

Why the steady climb?

  • Record production of 25,355 Boe/day in Q2 2025
  • 88 active rigs drilling on KRP acreage (17% of US land rigs)
  • Strong royalty income from elevated energy prices
  • Consistent $0.38 quarterly dividend payments

🔮 Price Forecast: 2025-2030 Outlook

  • 2025 Year-End: $16.50-17.50 (based on current strip pricing and production growth) → BUY
  • 2026: $18.00-20.00 (continued acquisition strategy execution)
  • 2028: $22.00-25.00 (portfolio optimization and scale benefits)
  • 2030: $28.00-32.00 (long-term energy demand stability)

Verdict: Excellent for income investors seeking high yields with moderate growth potential. The current price offers an attractive entry point before the November earnings catalyst.

⚠️ Key Risks vs. Positive Signals

Risks to Consider Carefully

  • Commodity Price Volatility: Oil and gas prices directly impact royalty income (Current Fear Index: 39)
  • Operator Dependence: Production depends on third-party drilling activity
  • Regulatory Changes: Energy sector faces ongoing policy uncertainty
  • Interest Rate Sensitivity: High-yield stocks can be affected by rate changes

Green Lights for 2025 Investment

  • Record Production: 25,355 Boe/day run-rate (Q2 2025 Results)
  • Massive Dividend Yield: 12.63% ($1.72 annually)
  • Strong Balance Sheet: Debt reduction and conservative leverage
  • Active Development: 88 rigs drilling on KRP properties
  • Tax Advantages: 1099-DIV distributions (no K-1 complexity)

🛡️ What Should a Beginner Trader Do Today?

  1. Start Small: Begin with a position size that represents ≤5% of your portfolio
  2. Dollar-Cost Average: Consider buying in increments around earnings dates
  3. Reinvest Dividends: That 12.63% yield compounds beautifully over time
  4. Set Price Alerts: Monitor for dips below $14.00 for better entry points

Humorous trader wisdom: “Buying KRP is like getting paid to watch oil wells pump – except you don’t have to smell the crude or wear a hard hat!”

✅ How to Buy Kimbell Royalty Partners, LP (KRP) Shares – Step by Step Process

Step Action Why It Matters
1 Choose Your Platform Ensure it offers NYSE access and fractional shares
2 Complete Account Funding Start with an amount you’re comfortable risking
3 Search “KRP” Use the exact ticker symbol for accuracy
4 Select Order Type Use limit orders to control entry price
5 Review and Confirm Check commission fees and order details
6 Monitor Your Position Set dividend reinvestment preferences
7 Track Performance Use portfolio tracking tools for analysis

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  • Educational Resources: Comprehensive Pocket Option blog for continuous learning

🌍 Kimbell Royalty Partners in 2025: The Royalty Income Leader

Kimbell Royalty Partners dominates the mineral rights space with interests in over 17 million gross acres across 28 U.S. states. The company’s unique model allows investors to benefit from oil and gas production without the operational headaches or capital expenditures of traditional energy companies.

Current Market Position:

  • Market Cap: $1.46 billion
  • Revenue (TTM): $312.57 million
  • Production: 25,355 Boe/day
  • Active Rigs: 88 (17% of US land rig count)

Interesting Fact for 2025: KRP’s royalty properties span approximately 131,000 wells – if you visited one well per day, it would take you 359 years to see them all! This incredible diversification provides natural risk protection against individual well underperformance.

FAQ

What makes KRP different from traditional oil companies?

KRP doesn't operate wells - it owns mineral rights and collects royalties from producers. This means no drilling costs, no operational risks, and pure income generation.

How sustainable is the 12.63% dividend yield?

Very sustainable. The company's payout ratio is only 43%, and they generate strong cash flow from their massive royalty portfolio.

What are the tax implications of investing in KRP?

Excellent news - KRP issues 1099-DIV forms instead of complex K-1s, making tax reporting much simpler for investors.

How does oil price volatility affect KRP?

While royalty income fluctuates with commodity prices, KRP's diversified portfolio and lack of operating costs provide significant downside protection.

Is now a good time to buy KRP shares?

Current levels around $14.70 offer an attractive entry point before the November earnings report, with strong dividend support providing downside protection.

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