Form 4: Kimbell Royalty Partners Director Brett G. Taylor Sells Common Units

Director Brett G. Taylor sold common units of Kimbell Royalty Partners, LP (KRP) on March 6 and 7, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Brett G. Taylor, a director of Kimbell Royalty Partners, LP (KRP), sold common units representing limited partner interests on March 6 and 7, 2024.
• On March 6, 2024, 1,560 common units were sold at a weighted average price of $15.55, with prices ranging from $15.5000 to $15.5576.
• On March 7, 2024, 5,480 common units were sold at a weighted average price of $15.55, with prices ranging from $15.5100 to $15.5800.
• These sales were executed under a Rule 10b5-1 trading plan adopted on November 30, 2023.
• Following these transactions, Taylor directly owns 470,058 common units.
• Taylor also indirectly owns 27,999 units through BGT Minerals, LLC, 10,000 units through Kimbell GP Holdings, LLC, and 2,172 units through BRD Royalty Holdings LLC.
• Taylor is the sole trustee and beneficiary of the Brett G. Taylor Royalty Trust, which owns 343,082 common units after the reported transactions.

Sentiment

Score: 5

Explanation: The sentiment is neutral. The document reports routine insider selling under a pre-arranged plan, which doesn't necessarily indicate a positive or negative outlook for the company.

Negatives

• A director selling shares could be perceived negatively by investors, although the sales were conducted under a pre-arranged trading plan.

Risks

• Sales by insiders, even under 10b5-1 plans, can sometimes create short-term price volatility.

Industry Context

Insider transactions are routinely monitored in the oil and gas industry, particularly for royalty trusts like Kimbell Royalty Partners, as they can provide insights into management's perspective on the company's valuation and future prospects.

Comparison to Industry Standards

• It's common for executives and directors in publicly traded companies, including those in the oil and gas sector like Viper Energy Partners or Black Stone Minerals, to utilize Rule 10b5-1 trading plans to sell shares over time.
• These plans help to avoid accusations of insider trading by establishing a pre-arranged schedule for sales.
• The size and frequency of these sales are often compared to those of peers to gauge investor sentiment and potential impact on the stock price.

Stakeholder Impact

• Shareholders may react to insider selling, even if pre-planned, potentially causing short-term price fluctuations.
• The impact on other stakeholders (employees, customers, suppliers, creditors) is likely minimal.

Key Dates