Unlike most royalty companies, this one is growing, via dropdowns, acquisitions, and organic growth. A big Q3 deal will grow production by over 50% and DCF by 15%. Management intends to convert to a C-Corp, eliminating K-1s. Distributions are up 40% since the 2017 IPO. Royalties are all revenue-based.
Have you ever owned a royalty LP? Usually, there's a fixed amount of assets for which the LP gets paid royalty interests in a variety of ways, and a target termination date, usually with no growth. The reserves are just drawn down, and may or may not be replaced. However, Kimbell Royalty Partners LP (KRP) is a royalty LP with a difference - it's actively managed, meaning that it can grow its interests through acquisitions and dropdowns. This is precisely what KRP's management has done. Since its February 2017 IPO, production has grown 19%, and revenue has grown 44%.
Source: Seeking Alpha
Related Articles:
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 4 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Owning dividend stocks can be a great way to both generate cash flow and beat the market long term. And if you can find stocks that are over...
-
Long-time readers know I’m a big fan of the insurance industry because of one quirk in their business model. Customers always pay premiums u...
-
I wanted to find an ideal list of stocks with high dividend yields. The stocks would have to be cheap as well. And the dividends would have ...
-
In this series, we look through the most recent Dividend Channel ''DividendRank'' report, and then we cherry pick only those...
-
It has been a glum time for ExxonMobil (NYSE:XOM) shareholders. Regardless of whether you’re looking at the past one year, five years, or te...
-
Investors tend to gravitate to dividend stocks, particularly when those equities increase their payout on an annual basis. When these types ...
-
“Cheap” stocks aren’t necessarily the best cheap stocks to buy. And dividend stocks, even those with a high payout, aren’t necessarily safe....
-
This company's management has raised the quarterly distribution 71 straight quarters, 22 straight years - it will be a Dividend Aristocr...
-
The markets have been doing very well over the past several weeks, and finding some good bargains has been a bit challenging of late. Howeve...
-
Dividend-paying companies are beacons of profitability. Generally speaking, a company isn't going to share a percentage of its profit or...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.