Kimbell Royalty PartnersSelect Water Solutions

Kimbell Royalty Partners vs Select Water Solutions

This page compares Kimbell Royalty Partners LP and Select Water Solutions Inc, examining their business models, financial performance, and market context. It presents the information in a neutral, acc...

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Intellectual Property

Intellectual Property

These companies own valuable ideas, brands, and inventions that generate reliable, contract-guaranteed income. Their asset-light business models create high-margin revenue streams without the costs of physical production, making them potential profit powerhouses across multiple industries.

Published: June 17, 2025

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Investment Analysis

Pros

  • Owns mineral and royalty interests in over 17 million gross acres spanning 28 states, offering extensive geographic diversification.
  • Holds interests in more than 130,000 gross wells, including a significant position with over 51,000 wells in the prolific Permian Basin.
  • Maintains exposure to multiple major onshore U.S. basins like Appalachian, Eagle Ford, and Bakken, supporting diverse hydrocarbon sources.

Considerations

  • Reported a slight year-over-year revenue decline of 0.5% and significant earnings drop of 81.8%, indicating recent profitability pressure.
  • Diluted earnings per share are currently negative, reflecting short-term profitability challenges or possible accounting impacts.
  • Royalties and mineral interests are inherently exposed to commodity price volatility and regulatory risks tied to the oil and gas sector.

Pros

  • Leader in sustainable water and chemical solutions specifically tailored for the energy industry’s full lifecycle water management.
  • Integrated operations covering critical water infrastructure, chemical manufacturing, and water treatment and recycling enhance operational efficiencies.
  • Strong market share across service capabilities in all major U.S. unconventional basins, supporting a broad and stable customer base.

Considerations

  • Revenue concentration with roughly 65% derived from completions-oriented activities, which may be exposed to oilfield activity cyclicality.
  • Highly dependent on the energy sector’s capital spending trends, which can fluctuate significantly with commodity price cycles and regulations.
  • Complex operational footprint involving chemical and infrastructure services could pose execution and integration risks amid evolving environmental rules.

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