Kimbell Royalty Partners, LP (KRP): Business Model Canvas

Key Partnerships

KRP's key partnerships are crucial to the success of our business model. We have established relationships with various entities that play integral roles in our operations:

• Oil and gas operators: These partnerships allow KRP to acquire interests in producing oil and gas wells. By working closely with operators, we are able to participate in projects that have the potential for strong returns.
• Mineral rights holders: Collaborating with mineral rights holders enables KRP to secure rights to oil and gas reserves. This partnership is essential for gaining access to valuable resources for development.
• Acquisition partners: KRP works with acquisition partners to identify and evaluate potential investment opportunities. These partners help us expand our portfolio and diversify our assets.
• Legal and regulatory advisors: Our partnerships with legal and regulatory advisors ensure that KRP complies with all laws and regulations governing the oil and gas industry. These advisors provide valuable guidance on navigating complex legal issues.
• Financial institutions: Collaborating with financial institutions allows KRP to secure financing for our projects. These partnerships provide the capital needed to fund acquisitions and operations.

Overall, our key partnerships form the foundation of KRP's business model, enabling us to strategically position ourselves in the oil and gas industry and achieve our growth objectives.

Key Activities

Acquiring royalty interests: One of the main activities of Kimbell Royalty Partners, LP (KRP) is acquiring royalty interests in oil, gas, and mineral properties. This involves conducting thorough due diligence, negotiations with property owners, and finalizing agreements to secure these interests.

Managing royalty portfolios: KRP is responsible for managing a diverse portfolio of royalty interests. This includes tracking production levels, monitoring market prices, and ensuring timely payments from operators.

Overseeing mineral rights: KRP is also involved in overseeing mineral rights on behalf of property owners. This involves ensuring compliance with lease agreements, resolving disputes, and maximizing the value of these rights.

Conducting market analysis: Another key activity of KRP is conducting market analysis to identify emerging trends in the energy sector. This information helps inform investment decisions and optimize the performance of their royalty portfolios.

Streamlining operations via technology: KRP leverages technology to streamline its operations and enhance efficiency. This includes using data analytics, software tools, and digital platforms to automate tasks, optimize workflows, and improve decision-making processes.

• Acquiring royalty interests
• Managing royalty portfolios
• Overseeing mineral rights
• Conducting market analysis
• Streamlining operations via technology

Key Resources

Royalty interest ownerships: One of the primary resources of Kimbell Royalty Partners, LP (KRP) is its ownership of royalty interests in oil and gas properties. These interests provide a steady stream of income for the company, allowing it to generate revenue and return value to its investors.

Industry knowledge and expertise: KRP's team of professionals brings a wealth of experience and expertise in the oil and gas industry. This knowledge allows the company to effectively evaluate potential investments, manage its existing assets, and navigate the complexities of the energy market.

Legal and financial expertise: In addition to industry knowledge, KRP also leverages its legal and financial expertise to make informed decisions and ensure compliance with regulations. This resource enables the company to structure deals effectively, manage risk, and optimize its financial performance.

Team of experienced professionals: KRP's team is made up of skilled professionals with diverse backgrounds and expertise. This collective experience allows the company to approach challenges from multiple perspectives, make well-informed decisions, and drive sustainable growth.

Technological infrastructure: KRP utilizes advanced technology to streamline its operations, analyze data, and make data-driven decisions. This technological infrastructure enhances the company's efficiency, effectiveness, and ability to adapt to changing market conditions.

• Royalty interest ownerships
• Industry knowledge and expertise
• Legal and financial expertise
• Team of experienced professionals
• Technological infrastructure

Value Propositions

Stable and predictable royalty income: Kimbell Royalty Partners, LP (KRP) offers investors the opportunity to receive stable and reliable royalty income from their diverse mineral rights portfolio. With a focus on long-term investments, KRP provides investors with a consistent stream of income that is relatively insulated from market volatility.

Diversified mineral rights portfolio: KRP has strategically built a diversified portfolio of mineral rights in various geographic regions, commodities, and operators. This diversification helps mitigate risks associated with fluctuations in commodity prices, production levels, or regulatory changes.

Expert management of oil and gas royalties: KRP's team of industry experts leverages their extensive knowledge and experience to manage the complex process of acquiring, developing, and monetizing oil and gas royalties. Their expertise ensures that investors receive maximum value from their investments.

Exposure to the energy sector without operational risks: By investing in KRP, investors gain exposure to the energy sector without taking on the operational risks associated with exploration, production, or drilling activities. This allows investors to benefit from the potential upside of the energy market while leaving the operational complexities to KRP's management team.

Transparent and reliable financial operations: KRP is committed to maintaining transparent and reliable financial operations to ensure the trust and confidence of its investors. With a focus on integrity and accountability, KRP provides investors with clear and accurate reporting on their royalty income and portfolio performance.

Customer Relationships

Kimbell Royalty Partners, LP (KRP) prioritizes building and maintaining strong relationships with its investors through various customer-centric practices:

• Regular Investor Communications: KRP understands the importance of keeping investors informed about their investments. They provide regular updates on performance, news, and industry trends to ensure transparency and trust.
• Transparent Reporting Practices: KRP believes in being open and honest with their investors. They provide detailed reports and financial statements that clearly outline the performance of their royalties, enabling investors to make informed decisions.
• Dependable Service in Managing Royalties: KRP prides itself on offering reliable and efficient royalty management services. Their team of experts ensures that royalties are managed effectively, maximizing returns for investors.
• Offering Detailed Analytics and Insights: KRP goes beyond just managing royalties; they also provide in-depth analyses and insights into the industry, market trends, and investment opportunities. This helps investors make strategic decisions and maximize their returns.
• Professionalism in All Client Interactions: KRP values professionalism and integrity in all client interactions. Their team of experienced professionals ensures that investors receive top-notch service and support, creating a positive and trusting relationship.

Channels

Corporate website: Kimbell Royalty Partners, LP (KRP) utilizes its corporate website as a key channel to communicate with stakeholders. The website serves as a centralized hub for investors, providing access to key information, such as financial reports, investor presentations, and corporate updates. This channel allows KRP to effectively reach a wide audience and ensure consistent messaging.

Investor relations meetings: KRP regularly conducts investor relations meetings to engage with shareholders and potential investors. These meetings provide an opportunity for management to discuss the company's performance, growth strategies, and industry trends. By leveraging this channel, KRP can build relationships with investors and address any questions or concerns they may have.

Financial market communications: KRP engages with the financial market through various channels, such as analyst reports, research notes, and market commentaries. By providing timely and accurate information to the financial community, KRP can enhance investor understanding and confidence in the company's business model and financial performance.

Industry conferences and events: KRP participates in industry conferences and events to network with industry peers, showcase its assets, and stay informed about market trends. This channel allows KRP to position itself as a thought leader in the industry and stay up-to-date on emerging opportunities and challenges.

Press releases and financial disclosures: KRP issues press releases and financial disclosures to announce key developments, such as acquisitions, partnerships, and financial results. By disseminating information through this channel, KRP can maintain transparency and keep stakeholders informed about important company updates.

Customer Segments

Kimbell Royalty Partners, LP (KRP) targets a variety of customers in the energy sector and investment industry. These customer segments include:

• Individual investors: KRP attracts individual investors who are looking to diversify their investment portfolios with assets in the energy sector. These investors may be seeking stable returns and income through royalty interests in oil and gas properties.
• Institutional investors: KRP also targets institutional investors such as pension funds, endowments, and insurance companies. These investors may have larger capital bases and are looking to allocate a portion of their assets to alternative investments like energy royalties.
• Investment trusts: Investment trusts are another key customer segment for KRP. These trusts may have a specific focus on energy investments and are looking for opportunities to generate income and capital appreciation through royalty interests.
• Energy sector analysts: KRP engages with energy sector analysts who provide insights and analysis on the industry landscape. These analysts may be interested in KRP's business model and financial performance to inform their research and investment recommendations.
• Financial advisors and portfolio managers: KRP also targets financial advisors and portfolio managers who work with individual and institutional investors. These professionals may recommend KRP's royalty interests as part of a diversified investment strategy for their clients.

Cost Structure

Kimbell Royalty Partners, LP operates with a well-structured cost model that ensures efficiency and profitability. The key components of the cost structure include:

• Acquisition costs of royalty interests: KRP incurs costs related to the acquisition of royalty interests in oil, gas, and mineral assets. These costs include payments made to sellers, due diligence expenses, and legal fees associated with contract negotiations.
• Operational and administrative expenses: These expenses cover the day-to-day operational costs of the business, including employee salaries, office rent, utilities, and other overhead expenses.
• Legal and compliance costs: KRP invests in legal and compliance measures to ensure that all its activities are in line with regulatory requirements. This includes hiring legal counsel, compliance staff, and related expenses.
• Technology and infrastructure expenses: KRP relies on technology to manage its royalty interests efficiently. This includes expenses related to software systems, data management tools, and IT infrastructure.
• Marketing and investor relations costs: KRP allocates resources to marketing its services and maintaining relationships with investors. This includes expenses related to advertising, public relations, and communication with stakeholders.

Revenue Streams

Kimbell Royalty Partners, LP (KRP) generates revenue through several streams in its business model:

• Royalties from oil and gas production: KRP earns royalties from the production of oil and natural gas on properties in which it owns mineral rights. These royalties are based on a percentage of the value of the minerals extracted from the land.
• Revenue from mineral rights leases: KRP also generates revenue from leasing out its mineral rights to companies involved in oil and gas exploration and production. These leases provide KRP with upfront payments as well as ongoing royalties.
• Gains from the sale of assets: KRP may sell off portions of its mineral rights or other assets in order to generate capital. The gains from these sales contribute to the company's overall revenue.
• Income from strategic partnerships and agreements: KRP may enter into partnerships with other companies in the oil and gas industry or form agreements to jointly develop certain properties. These partnerships and agreements can provide KRP with additional income streams.