Kimbell Royalty Partners, LP Files 2023 Annual Report on Form 10-K

TL;DR

<b>Kimbell Royalty Partners, LP has filed its 2023 annual report (10-K) detailing its financial performance and operational activities for the fiscal year ending December 31, 2023.</b>

AI Summary

Kimbell Royalty Partners, LP (KRP) filed a Annual Report (10-K) with the SEC on February 21, 2024. Kimbell Royalty Partners, LP filed its 2023 Form 10-K on February 21, 2024. The filing covers the fiscal year ending December 31, 2023. Key entities mentioned include Kimbell Royalty Operating LLC, Apollo Capital Management, L.P., and Longpoint Minerals II, LLC. The company's business is classified under Crude Petroleum & Natural Gas (SIC 1311). The filing details various financial instruments and compensation plans, including Restricted Stock Units (RSUs) and a Long-Term Incentive Plan.

Why It Matters

For investors and stakeholders tracking Kimbell Royalty Partners, LP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kimbell Royalty Partners' financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors to assess the company's performance and future outlook. The detailed information on revenue segments, executive compensation, and related party transactions offers insights into the company's business model and governance structure.

Risk Assessment

Risk Level: medium — Kimbell Royalty Partners, LP shows moderate risk based on this filing. The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes, posing a medium-term risk to its financial performance and asset valuations.

Analyst Insight

Investors should review the detailed breakdown of revenue by segment and the identified risk factors to understand the potential impact of commodity price volatility and operational challenges on Kimbell Royalty Partners' future earnings.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-02-21 — Filing Date (Date the 10-K was filed)
• 1311 — SIC Code (Standard Industrial Classification for Crude Petroleum & Natural Gas)
• 475505475 — IRS Number (Employer Identification Number)

Key Players & Entities

• Kimbell Royalty Partners, LP (company) — Filer of the 10-K
• 0001657788 (company) — Central Index Key for Kimbell Royalty Partners, LP
• 777 TAYLOR ST., SUITE 810 (company) — Business and mailing address
• FORT WORTH (company) — City for business and mailing address
• DE (company) — State of incorporation
• Apollo Capital Management, L.P. (company) — Affiliate mentioned in relation to Series Cumulative Convertible Preferred Units
• Longpoint Minerals II, LLC (company) — Affiliate mentioned in relation to Series Cumulative Convertible Preferred Units
• Kimbell Royalty Operating LLC (company) — Subsidiary mentioned

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The market prices for oil and natural gas are volatile and subject to significant fluctuations, which can materially affect the company's financial results.

Key Financial Figures

• $14.71 — e closing price of such common units of $14.71 as reported on the New York Stock Excha

Filing Documents

• krp-20231231x10k.htm (10-K) — 4010KB
• krp-20231231xex4d5.htm (EX-4.5) — 132KB
• krp-20231231xex21d1.htm (EX-21.1) — 22KB
• krp-20231231xex23d1.htm (EX-23.1) — 3KB
• krp-20231231xex23d2.htm (EX-23.2) — 11KB
• krp-20231231xex23d3.htm (EX-23.3) — 2KB
• krp-20231231xex23d4.htm (EX-23.4) — 6KB
• krp-20231231xex31d1.htm (EX-31.1) — 15KB
• krp-20231231xex31d2.htm (EX-31.2) — 15KB
• krp-20231231xex32d1.htm (EX-32.1) — 6KB
• krp-20231231xex32d2.htm (EX-32.2) — 6KB
• krp-20231231xex97d1.htm (EX-97.1) — 40KB
• krp-20231231xex99d1.htm (EX-99.1) — 180KB
• krp-20231231x10k005.jpg (GRAPHIC) — 65KB
• krp-20231231xex23d2001.jpg (GRAPHIC) — 3KB
• krp-20231231xex23d2002.jpg (GRAPHIC) — 8KB
• krp-20231231xex99d1001.jpg (GRAPHIC) — 2KB
• krp-20231231xex99d1002.jpg (GRAPHIC) — 6KB
• 0001558370-24-001427.txt (&nbsp;) — 13129KB
• krp-20231231.xsd (EX-101.SCH) — 76KB
• krp-20231231_cal.xml (EX-101.CAL) — 91KB
• krp-20231231_def.xml (EX-101.DEF) — 318KB
• krp-20231231_lab.xml (EX-101.LAB) — 670KB
• krp-20231231_pre.xml (EX-101.PRE) — 483KB
• krp-20231231x10k_htm.xml (XML) — 1970KB

Business

Item 1. Business 12

Risk Factors

Item 1A. Risk Factors 34

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 65

Cybersecurity

Item 1C. Cybersecurity 65

Properties

Item 2. Properties 67

Legal Proceedings

Item 3. Legal Proceedings 67

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 67 PART II

Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities 68

[Reserved]

Item 6. [Reserved] 71

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 71

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 89

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 92

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 92

Controls and Procedures

Item 9A. Controls and Procedures 93

Other Information

Item 9B. Other Information 97

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 97 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 97

Executive Compensation and Other Information

Item 11. Executive Compensation and Other Information 102

Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters 112

Certain Relationships and Related Party Transactions, and Director Independence

Item 13. Certain Relationships and Related Party Transactions, and Director Independence 116

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 122 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 122

Form 10-K Summary

Item 16. Form 10-K Summary 125

Signatures

Signatures 126 i Table of Contents GLOSSARY OF TERMS The following are definitions of certain terms used in this Annual Report on Form 10-K ("Annual Report"). Basin. A large depression on the earth's surface in which sediments accumulate. Bbl. One stock tank barrel, or 42 U.S. gallons liquid volume. Boe. Barrels of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil at the pressure and temperature base standard of each respective state in which the gas is produced. Boe/d. Boe per day. British Thermal Unit (Btu). The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit. Completion. The process of treating a drilling well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency. Condensate. Liquid hydrocarbons associated with the production of a primarily natural gas reserve. Crude oil. Liquid hydrocarbons retrieved from geological structures underground to be refined into fuel sources. Deterministic method. The method of estimating reserves or resources under which a single value for each parameter (from the geoscience, engineering, or economic data) in the reserves calculation is used in the reserves estimation procedure. Developed acreage. The number of acres that are allocated or assignable to productive wells or wells capable of production. Development costs. Capital costs incurred in the acquisition, exploitation and exploration of proved oil and natural gas reserves divided by proved reserve additions and revisions to proved reserves. Development well. A well drilled within the proved area of an oil and natural gas reservoir to the depth of a stratigraphic horizon known to be productive. Differential. An adjustment to the price of oil or natural gas from an established spot market price to reflect differences in the quality and/or

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