While integrated energy giants like Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) often dominate investor conversations, there are lesser-known opportunities offering superior yields and more resilient business models.
Two frequently overlooked names stand out: Kimbell Royalty Partners (NYSE: KRP) and The Williams Companies (NYSE: WMB). Kimbell provides a low-risk, high-yield strategy tied to rising oil and gas prices, whereas Williams offers a distinctive avenue to capitalize on the artificial intelligence boom while delivering reliable income.
An In-Depth Look at Kimbell Royalty Partners
Kimbell Royalty Partners operates differently than traditional energy firms. Rather than engaging in oil and gas drilling, the company owns mineral rights spanning approximately 17 million gross acres across all major U.S. onshore basins.
When an upstream operator drills a well on its land, Kimbell earns a fixed percentage—typically between 12.5% and 25%—of the gross revenue from every barrel of oil or thousand cubic feet of natural gas produced. Consequently, Kimbell avoids capital expenditures for rig leases, drilling equipment, labor, and maintenance, yet it consistently generates cash flow as long as upstream companies continue operating on its acreage.
Although Kimbell remains exposed to volatile oil and gas prices, it is insulated from escalating drilling costs, labor shortages, and supply chain inflation. The company typically distributes 75% of its cash available for distribution (CAD) as dividends, allocating the remaining 25% toward debt service.
In its most recent quarter, Kimbell’s CAD increased 27% year over year to $60 million, and its cash distribution rose 15% sequentially to $0.47 per common unit. This translates to an annualized yield of 13%, which could climb higher in the coming quarters if oil prices stay elevated. Analysts project Kimbell’s adjusted EBITDA to grow at a 5% CAGR from 2025 to 2028. With an enterprise value of $2 billion, the stock trades at less than six times its projected adjusted EBITDA. While not a thrilling growth stock, Kimbell is a dependable dividend payer capable of sustaining its substantial yield.
An In-Depth Look at The Williams Companies
Williams operates over 33,000 miles of pipeline across the United States. As a midstream company, it is well-insulated from oil and gas price volatility, generating revenue by charging upstream and downstream companies tolls to transport resources through its pipelines.
Unlike many midstream peers that transport a mixture of crude oil, natural gas, and other resources, Williams focuses primarily on natural gas delivery. Its Transco pipelines, stretching between Texas and the Eastern Seaboard, already carry roughly 30% of the nation’s natural gas, which fuels nearly half of the country’s data centers.
The company is also constructing “behind the meter” (BTM) sites at data centers to provide hyperscalers with a consistent natural gas supply, bypassing utility bottlenecks. These strategies position Williams as a prime AI infrastructure investment compared to many of its industry peers.
Williams currently offers a forward yield of 2.8%. Its available funds from operations (AFFO) grew 17% year over year to $3.2 billion in the first half of 2026, exceeding its dividend payments by 2.5 times. This provides substantial capacity to increase its payout to attract more income-focused investors. Analysts forecast Williams’ adjusted EBITDA to grow at a 13% CAGR from 2025 to 2028. With an enterprise value of $123 billion, the stock trades at an attractive 13 times its projected adjusted EBITDA. For investors seeking an undervalued, income-generating midstream stock with significant exposure to the AI boom, Williams fits the criteria perfectly.