In a recent transaction, Mitch S. Wynne, a director at Kimbell Royalty Partners, LP (NYSE:KRP), sold a significant number of shares in the company. The transaction involved a total of 27,539 common units representing limited partner interests, which were sold at an average weighted price of $16.16 per share, amounting to a total value of $445,030.
The sale took place on June 18, 2024, and was disclosed in a filing with the Securities and Exchange Commission (SEC). According to the details provided, the sales occurred in multiple transactions at prices ranging from $16.06 to $16.21. The exact number of shares sold at each price point within this range can be provided upon request to Kimbell Royalty Partners, the security holders, or the SEC staff.
Following the sale, the director's direct holdings in the company have been reduced to zero. It's important to note that the reported shares are held indirectly through various entities. The MSW Investment Trust, of which Wynne is both the trustee and a beneficiary, holds some of the common units. Additionally, Kimbell GP Holdings, LLC, where Wynne is a member through Double Eagle Interests, LLC, and an IRA for Wynne's benefit, each hold common units. Furthermore, the David Mitchell Wynne Asset Trust, for which Wynne serves as trustee, also holds a portion of these units.
This transaction comes as part of the regular financial disclosures required by directors and may interest investors tracking insider activity within Kimbell Royalty Partners, LP. The company, which is involved in the crude petroleum and natural gas industry, trades under the ticker symbol KRP on the New York Stock Exchange.
In other recent news, Kimbell Royalty Partners reported record-breaking first-quarter results in 2024, hitting new highs in daily production, revenue, and EBITDA. The company also increased its distribution by 14% to $0.49 per common unit and maintained its 2024 guidance while keeping a strong financial position with a conservative balance sheet. Despite slow merger and acquisition activities, Kimbell Royalty Partners expects larger deals in the Permian basin.
In other developments, the company announced the passing of board member Ben J. Fortson, whose contributions were pivotal to the company's development and success. His strategic investments in oil and natural gas minerals and royalties were foundational to the growth of the Kimbell Art Foundation, a major sponsor of Kimbell Royalty Partners.
These are recent developments that provide insight into the company's operations and leadership changes. However, it's important to note that these developments do not predict the company's future performance. As always, investors are encouraged to conduct their own thorough research before making any investment decisions.
InvestingPro Insights
Amidst the news of insider selling, investors might be curious about the broader financial health and prospects of Kimbell Royalty Partners, LP (NYSE:KRP). Recent data from InvestingPro offers a snapshot of the company's current financial metrics and performance indicators that could shed light on its valuation and future outlook.
With a market capitalization of $1.56 billion, Kimbell Royalty Partners stands as a notable player in the energy sector. The company's Price to Earnings (P/E) ratio stands at 27.01, reflecting investor expectations of future earnings growth, which aligns with the last twelve months as of Q1 2024 adjusted P/E ratio of 21.91. This could signal that investors are optimistic about the company's earnings potential, despite the recent insider selling activity.
Investors might also find comfort in the company's impressive gross profit margin, which has reached 92.55% in the last twelve months as of Q1 2024. This high margin indicates that Kimbell Royalty Partners is adept at controlling its costs relative to revenue—a particularly important trait in the often volatile energy market.
One of the InvestingPro Tips highlights that Kimbell Royalty Partners has been aggressively buying back shares, which could be a sign of management's confidence in the company's value. Additionally, the company has maintained dividend payments for 8 consecutive years, with a significant dividend yield of 12.11%, underscoring its commitment to returning value to shareholders.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide further insights into Kimbell Royalty Partners' performance and valuation. For example, the company's moderate level of debt and the fact that its liquid assets exceed its short-term obligations may suggest a stable financial position. Moreover, the company is trading at a high revenue valuation multiple and near its 52-week high, which could indicate market confidence.
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