Kimbell Royalty Partners' 10.2% yield depends on commodity price volatility

Unitholders of Kimbell Royalty Partners receive variable quarterly distributions that fluctuate based on production volumes and commodity prices. In 2020, the partnership's quarterly distributions dropped from $0.38 to $0.13 over two quarters. In 2025, the distributions ranged from $0.47 in the first quarter to $0.35 in the third. These fluctuations are by design, as the partnership passes through the cash flow provided by commodity markets. KRP holds mineral and royalty interests in 17 million gross acres of U.S. onshore acreage. When operators drill and produce oil, natural gas, and NGLs on that land, KRP receives a proportional royalty payment. Because KRP is a royalty owner rather than an operator, it does not fund drilling or incur lease operating expenses. The partnership distributes 75 percent of its cash available for distribution to unitholders. A sustained decline in oil prices would compress the cash available for distribution, reducing the distribution to unitholders.