- Kimbell Royalty Partners has seen their cash flow performance and thus distributions push higher throughout the latter half of 2021 thanks to the strong oil prices.
- This saw a new record during 2021 for their highest operating cash flow and given their variable distribution policy, also their highest distribution payments.
- When looking into 2022, their capital allocation strategy appears set to continue unchanged and thus makes for a rather business-as-usual outlook.
- Although due to the very strong outlook for triple-digit oil prices, it stands to be a very profitable year for their unitholders with a very high 10%+ distribution yield virtually assured.
- Given this inbound wave of income, I now believe that upgrading to a buy rating is appropriate.
For further details see:
Kimbell Royalty Partners: Business-As-Usual During 2022, Albeit Very Profitable With A 10%+ Yield