Kimbell Royalty Partners (KRP) AI Stock Analysis

• Market Cap: $1.65B
• Dividend Yield: 12.85%
• Average Volume (3M): 379.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• 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: 424,796
• 30 Day Avg. Volume: 379,256
• 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: 1.36
• Enterprise Value/Revenue: 6.86
• Enterprise Value/Gross Profit: 9.20
• Enterprise Value/Ebitda: 14.51
• 1Y Price Target: $14.50
• Price Target Upside: 8.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $14.00 ▲(4.56% Upside)

Kimbell Royalty Partners shows strong cash flow generation and efficient cost management, supported by a high dividend yield. However, challenges in revenue growth, low return on equity, and mixed technical indicators temper the overall outlook. The earnings call provided positive insights into production growth and financial stability, but broader market challenges remain a concern.

Positive Factors

Cash Flow Generation

Strong cash flow generation supports KRP's ability to reinvest in growth opportunities and maintain financial flexibility, enhancing long-term stability.

Conservative Balance Sheet

A conservative balance sheet with low leverage provides KRP with resilience against market volatility and the ability to pursue strategic investments.

Production Growth

Steady production growth indicates effective resource management and positions KRP to capitalize on future market demand increases.

Negative Factors

Revenue Growth Challenges

A significant decline in revenue growth suggests potential difficulties in expanding market share or monetizing assets, impacting long-term profitability.

Low Return on Equity

Low ROE indicates limited profitability from shareholders' investments, which may hinder the company's ability to attract new capital for growth.

Fluctuating Production Costs

High production costs can erode margins, reducing profitability and potentially limiting reinvestment in future growth initiatives.

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 high gross profit margin and solid EBIT and EBITDA margins. 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: 13.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 13.39 is above the 20-day moving average (MA) of 13.15, above the 50-day MA of 13.28, and above the 200-day MA of 13.23, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 14.83 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	73 Outperform	$1.99B	12.31	6.68%	16.41%	9.33%	―
BSM	70 Outperform	$2.96B	12.17	23.90%	9.62%	-0.75%	-29.40%
KRP	66 Neutral	$1.65B	―	4.73%	12.85%	-2.71%	-113.80%
SBR	66 Neutral	$1.14B	14.40	986.82%	6.82%	-14.84%	-16.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DMLP	63 Neutral	$1.06B	19.49	14.72%	13.05%	-12.51%	-59.55%
PVL	54 Neutral	$57.42M	27.19	4.93%	5.92%	18.14%	-68.41%

Kimbell Royalty Partners Corporate Events

Kimbell Royalty Partners Reports Strong Q3 2025 Results

Kimbell Royalty Partners, LP is a prominent oil and gas mineral and royalty company based in Fort Worth, Texas, with extensive interests in over 131,000 wells across 28 states in the United States.

Kimbell Royalty Partners’ Earnings Call Highlights Growth

Kimbell Royalty Partners’ recent earnings call conveyed a generally positive sentiment, emphasizing steady production growth and robust financial performance. The company demonstrated strategic capital distribution and maintained a conservative approach to managing its balance sheet. However, the call also acknowledged challenges in the broader energy market and fluctuating production costs.

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.

The most recent analyst rating on (KRP) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Kimbell Royalty Partners stock, see the KRP Stock Forecast page.

Kimbell Royalty Partners Reports Strong Q2 2025 Results

Kimbell Royalty Partners, LP is a prominent oil and gas mineral and royalty company based in Fort Worth, Texas, with interests in over 131,000 gross wells across 28 states in the United States. The company specializes in owning mineral and royalty interests, making it a significant player in the energy sector.

Kimbell Royalty Partners’ Earnings Call Highlights Growth and Challenges

The recent earnings call for Kimbell Royalty Partners was marked by a largely positive sentiment, underscored by strong cash flow, an increase in rig count and market share, and a favorable financial position. The company announced a return of capital to shareholders and reaffirmed its guidance for 2025. However, some concerns were noted regarding the decline in the Mid-Continent region and potential challenges in the Permian Basin.

Kimbell Royalty Partners Q2 2025 Financial Results

On August 7, 2025, Kimbell Royalty Partners announced its financial and operational results for the second quarter of 2025, reporting a run-rate daily production of 25,355 Boe/d and revenues of $74.7 million. The company declared a cash distribution of $0.38 per common unit and plans to use 25% of its cash available for distribution to reduce outstanding borrowings. Kimbell’s active rig count remained strong, representing 17% of the U.S. land rig market share, despite a general slowdown in drilling activity. The company also highlighted operational discipline with cash G&A per BOE below guidance, and an increase in net DUCs, particularly in the Permian Basin, which supports future production resilience.

The most recent analyst rating on (KRP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Kimbell Royalty Partners stock, see the KRP Stock Forecast page.