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Does Kimbell Royalty Partners (KRP) 2030 Credit Deal Quietly Redefine Its Risk And Growth Profile?

Simply Wall St · 2d ago
  • Kimbell Royalty Partners, LP recently completed its Fall 2025 borrowing base redetermination and entered a Second Amended and Restated Credit Agreement, extending its secured revolving credit facility’s maturity to December 16, 2030, reaffirming a US$625 million borrowing base, cutting interest spreads by 35 basis points, and lifting the maximum facility size to US$1.50 billion.
  • The unanimous support from existing lenders, combined with lower borrowing costs and looser covenants, signals confidence in the quality and resilience of Kimbell’s oil and gas royalty asset base.
  • Now we’ll explore how the extended 2030 credit facility and larger potential borrowing capacity could reshape Kimbell Royalty Partners’ investment narrative.

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Kimbell Royalty Partners Investment Narrative Recap

To own Kimbell Royalty Partners, you have to believe its diversified royalty portfolio and acquisition model can offset natural declines in production while supporting meaningful cash distributions. The extended 2030 credit facility and larger potential borrowing capacity strengthen short term financial flexibility, but do not remove key risks around commodity price volatility and the long term availability and economics of attractive mineral acquisitions.

The most relevant recent announcement here is Kimbell’s decision to apply only 75% of cash available for distribution to unitholder payouts while using the remaining 25% to reduce revolver borrowings. Paired with the enlarged, cheaper credit facility, this points to a balance between reinforcing the balance sheet and preserving capacity to fund future deals, which remains central to the acquisition driven growth catalyst.

However, investors should also be aware that if premium drilling locations in key basins prove harder to replace over time, then...

Read the full narrative on Kimbell Royalty Partners (it's free!)

Kimbell Royalty Partners' narrative projects $379.9 million revenue and $80.8 million earnings by 2028. This requires 6.7% yearly revenue growth and an earnings increase of about $81.3 million from -$548.7 thousand today.

Uncover how Kimbell Royalty Partners' forecasts yield a $17.20 fair value, a 49% upside to its current price.

Exploring Other Perspectives

KRP 1-Year Stock Price Chart
KRP 1-Year Stock Price Chart

Six fair value estimates from the Simply Wall St Community span roughly US$4 to about US$59.91 per unit, reflecting very different views on Kimbell’s potential. When you set those side by side with the importance of ongoing acquisitions to offset natural decline, it underlines how differently investors can assess the same reliance on future deal flow, and why it helps to compare multiple viewpoints before forming your own.

Explore 6 other fair value estimates on Kimbell Royalty Partners - why the stock might be worth over 5x more than the current price!

Build Your Own Kimbell Royalty Partners Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.