Kimbell Royalty Partners (KRP) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: 14.08%
• Average Volume (3M): 630.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -2.71%
• EPS Growth: -113.80%
• Country: US
• Employees: 23
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.19
• Shares Outstanding: 93,396,484
• 10 Day Avg. Volume: 755,379
• 30 Day Avg. Volume: 630,500
• PEG Ratio: -0.01
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 3.98
• P/FCF Ratio: 4.94
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 5.00
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: $17.67
• Price Target Upside: 55.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): $326.46M

• Rating: 64 Neutral
• Price Target: $12.50 ▲(10.04% Upside)

Kimbell Royalty Partners' strong financial performance and high dividend yield are significant positives. However, bearish technical indicators and challenges in revenue growth and broader market conditions weigh on the overall score.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates robust operational efficiency and financial health, providing flexibility for strategic investments and debt reduction.

Conservative Balance Sheet

A conservative balance sheet with low leverage enhances financial stability and reduces risk, supporting long-term growth and resilience against market volatility.

Enhanced Credit Structure

The enhanced credit agreement provides increased financial flexibility and extended maturity, supporting strategic initiatives and operational stability.

Negative Factors

Revenue Growth Challenges

A significant decline in revenue growth indicates potential challenges in market demand or competitive positioning, impacting long-term revenue potential.

Low Return on Equity

Low ROE suggests inefficient use of shareholder capital, potentially limiting the company's ability to generate returns and attract investment.

Fluctuating Production Costs

High and fluctuating production costs can erode profit margins and reduce competitiveness, posing a risk to long-term financial performance.

Kimbell Royalty Partners Business Overview & Revenue Model

Company Description

Kimbell Royalty Partners, LP (KRP) is a publicly traded limited partnership based in Fort Worth, Texas, focused on the acquisition and management of oil and natural gas mineral and royalty interests across the United States. The company primarily operates in the energy sector, generating revenue through the ownership of diverse mineral interests, which allows it to benefit from the production of oil and gas without the operational risks associated with drilling and production activities.

How the Company Makes Money

Kimbell Royalty Partners generates revenue primarily through the collection of royalties on the production of oil and natural gas from the properties in which it holds mineral rights. The company earns a percentage of the revenue generated from the extraction of these resources, which is typically based on a fixed royalty rate. As oil and gas prices fluctuate, KRP's revenue can vary significantly, making it sensitive to market conditions. The company also engages in strategic acquisitions of additional mineral and royalty interests to expand its portfolio and increase its revenue potential. Partnerships with various operators in the energy sector, who are responsible for drilling and production, further enhance KRP's revenue streams by ensuring ongoing production from its holdings.

Kimbell Royalty Partners Financial Statement Overview

Summary

Kimbell Royalty Partners demonstrates strong cash flow generation and efficient cost management, with a solid gross profit margin and operational efficiency. However, challenges in revenue growth and low return on equity indicate areas for improvement.

Income Statement

Kimbell Royalty Partners shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a strong gross profit margin of 75.18%, reflecting efficient cost management. However, the net profit margin is relatively low at 11.94%, and the revenue growth rate has significantly declined by 95.5%, indicating potential challenges in revenue generation. The EBIT margin of 20.18% and EBITDA margin of 48.42% are solid, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.65, indicating a balanced approach to leveraging. The return on equity (ROE) is low at 4.87%, suggesting limited profitability from shareholders' investments. The equity ratio stands at 43.22%, showing a stable capital structure with a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis highlights a remarkable free cash flow growth rate of 993.13%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is high at 15.17, reflecting robust cash flow relative to net income. However, the free cash flow to net income ratio is low at 9.14%, suggesting that a smaller portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	328.29M	310.65M	273.18M	285.04M	178.41M	92.93M
Gross Profit	244.75M	155.12M	156.38M	218.71M	131.13M	38.55M
EBITDA	155.15M	172.47M	209.54M	197.76M	88.79M	-202.28M
Net Income	36.58M	12.25M	66.45M	111.93M	33.86M	-159.54M
Balance Sheet
Total Assets	1.25B	1.12B	1.34B	1.08B	601.49M	564.63M
Cash, Cash Equivalents and Short-Term Investments	40.00M	34.17M	30.99M	24.64M	7.05M	9.80M
Total Debt	452.99M	242.72M	296.09M	235.25M	219.68M	174.40M
Total Liabilities	469.39M	256.42M	309.32M	263.34M	252.64M	186.33M
Stockholders Equity	700.36M	780.22M	871.27M	602.62M	329.60M	301.30M
Cash Flow
Free Cash Flow	22.49M	250.71M	-316.54M	25.18M	35.37M	-26.35M
Operating Cash Flow	245.81M	250.92M	174.27M	166.64M	91.44M	62.25M
Investing Cash Flow	-223.44M	-209.89K	-246.68M	-374.72M	-55.57M	-90.83M
Financing Cash Flow	-17.07M	-247.53M	78.38M	226.06M	-38.62M	24.18M

Kimbell Royalty Partners Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRP, the sentiment is Negative. The current price of 11.36 is below the 20-day moving average (MA) of 12.32, below the 50-day MA of 12.87, and below the 200-day MA of 13.11, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 24.48 is Positive, neither overbought nor oversold. The STOCH value of 7.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRP.

Kimbell Royalty Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNR	81 Outperform	$1.88B	11.61	6.68%	17.41%	9.33%	―
BSM	70 Outperform	$2.84B	11.67	23.90%	10.07%	-0.75%	-29.40%
SBR	66 Neutral	$988.92M	12.48	986.82%	7.61%	-14.84%	-16.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KRP	64 Neutral	$1.39B	-63.57	4.73%	14.08%	-2.71%	-113.80%
DMLP	61 Neutral	$1.07B	19.71	14.72%	12.51%	-12.51%	-59.55%
PVL	54 Neutral	$58.41M	27.66	4.93%	6.02%	18.14%	-68.41%

Kimbell Royalty Partners Corporate Events

Kimbell Royalty Partners Enhances Credit Agreement Structure

On December 16, 2025, Kimbell Royalty Partners entered into a Second Amended and Restated Credit Agreement, enhancing its financial structure with a senior secured reserve-based revolving credit facility of up to $1.5 billion and extending the maturity date to December 16, 2030. This agreement, backed by the company’s oil and natural gas assets, includes provisions for interest rates, borrowing base redeterminations, and financial covenants, which are crucial for maintaining financial stability and operational flexibility.

Kimbell Royalty Partners Reports Strong Q3 2025 Results

On November 6, 2025, Kimbell Royalty Partners announced its financial and operating results for the third quarter of 2025, highlighting a run-rate daily production of 25,530 Boe/d, which exceeded the midpoint of guidance. The company reported Q3 revenues of $76.8 million and a net income of $22.3 million. Kimbell also declared a cash distribution of $0.35 per common unit, reflecting a 10.7% annualized yield, and plans to use 25% of its cash available for distribution to repay debt. Despite a general slowdown in the U.S. oil and natural gas sector, Kimbell’s production increased organically by 1% from Q2 to Q3 2025, demonstrating resilience and effective operational strategies.