Kimbell Royalty Partners Lp (KRP)
NYSE:KRP
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Kimbell Royalty Partners
(NYSE:KRP)
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Rating:76Outperform
Price Target:
$16.00
▲(10.34% Upside)
Action:ReiteratedDate:03/10/26
The score is led by strong financial performance (notably cash generation) and an attractive valuation profile (low P/E and very high yield). Technicals are supportive with positive momentum and price above key moving averages, while the earnings call was constructive but tempered by flat 2026 production guidance and gas realization volatility.
Positive Factors
Cash generation strength
Kimbell has delivered consistently strong operating cash flow and very strong free cash flow in 2024–2025, producing high cash conversion. Durable cash generation supports distributions, opportunistic buybacks, deleveraging and M&A optionality without reliance on volatile capital markets.
Negative Factors
Natural gas realization volatility
Material exposure to Waha and seasonal widening in gas differentials create persistent realization risk for a portion of revenues. Until pipeline takeaway improves (noted relief expected in 2027), realized prices and cash receipts for that gas book will structurally depress margins and cash flow variability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Kimbell has delivered consistently strong operating cash flow and very strong free cash flow in 2024–2025, producing high cash conversion. Durable cash generation supports distributions, opportunistic buybacks, deleveraging and M&A optionality without reliance on volatile capital markets.
Read all positive factors
Kimbell Royalty Partners (KRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.77B
Dividend Yield13.84%
Average Volume (3M)859.52K
Price to Earnings (P/E)11.7
Beta (1Y)0.45
Revenue Growth-2.71%
EPS Growth-113.80%
CountryUS
Employees23
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.21
Shares Outstanding93,396,484
10 Day Avg. Volume801,087
30 Day Avg. Volume859,519
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)1.55
Price to Sales (P/S)3.20
P/FCF Ratio4.35
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue5.96
Enterprise Value/Gross Profit6.35
Enterprise Value/Ebitda8.80
Forecast
1Y Price Target
$17.20Price Target Upside18.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.84
Revenue Forecast (FY)$346.15M
Kimbell Royalty Partners Business Overview & Revenue Model
Company Description
Kimbell Royalty Partners, LP, together with its subsidiaries, acquires and owns mineral and royalty interests in oil and natural gas properties in the United States. As of December 31, 2021, it owned mineral and royalty interests in approximately ...
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 th...
Kimbell Royalty Partners Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial achievements — record proved developed reserves (≈+8%), higher quarterly distribution (+6%), solid Q4 revenues ($76M) and adjusted EBITDA ($64.8M), an improved credit facility and conservative leverage (~1.5x net debt/TTM EBITDA). Challenges noted were limited near-term production growth (2026 guidance flat vs. 2025), seasonal gas realization headwinds (natural gas differential widened from 18% to 24% in Q4), modestly higher maintenance well count after an acquisition, and remaining mezzanine capital that management plans to address opportunistically. Overall, the positive operational momentum, balance sheet actions and tax-efficient distributions outweigh the highlighted near-term pricing and capital-structure considerations.Positive Updates
Strategic Acquisition Strengthens Permian Exposure
Completed a $230 million acquisition of mineral and royalty interests beneath the Mabee Ranch (Midland Basin) in 2025, reinforcing the Permian as the company's leading area for production, activity and inventory.
Negative Updates
Natural Gas Realization Volatility and Waha Exposure
Natural gas realizations widened seasonally: differential increased from 18% in Q3 to 24% in Q4 (6 percentage-point increase). Approximately 15% of gas production is exposed to Waha pricing, which has been weak historically, creating near-term realization pressure for that portion.
Read all updates
Q4-2025 Updates
Positive
Negative
Strategic Acquisition Strengthens Permian Exposure
Completed a $230 million acquisition of mineral and royalty interests beneath the Mabee Ranch (Midland Basin) in 2025, reinforcing the Permian as the company's leading area for production, activity and inventory.
Read all positive updates
Company Guidance
Kimbell's 2026 guidance keeps the production midpoint unchanged from 2025 at 25,500 Boe/d (Q4 run‑rate was 25,627 Boe/d, slightly above the midpoint) and reflects a modest increase in net line‑of‑site maintenance wells to 6.8 (from 6.5); Q4 oil, gas and NGL revenues were $76.0M with consolidated adjusted EBITDA of $64.8M, cash G&A of $6.2M in Q4 ($2.63/Boe) and $2.51/Boe for FY2025, proved developed reserves rose ~8% to ~73M Boe, and active rig count stood at 85 rigs (16% of U.S. land rigs); management declared a Q4 distribution of $0.37/unit (75% of cash available for distribution, ~100% expected to be return of capital) and returned $1.60/unit for 2025, while balance‑sheet metrics include a $625M committed revolving credit facility (maturing Dec 16, 2030) with $441.5M drawn, ~$183.5M undrawn and net debt/T12M adjusted EBITDA of ~1.5x, with the remaining 25% of CFFO earmarked to pay down RCF borrowings as management stays opportunistic on mezzanine redemptions and M&A.Kimbell Royalty Partners Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 333.83M | 310.65M | 273.18M | 285.04M | 178.41M |
| Gross Profit | 313.39M | 155.12M | 156.38M | 218.71M | 131.13M |
| EBITDA | 133.16M | 172.47M | 209.54M | 197.76M | 88.79M |
| Net Income | 90.95M | 12.25M | 66.45M | 111.93M | 33.86M |
Balance Sheet | |||||
| Total Assets | 1.23B | 1.12B | 1.34B | 1.08B | 601.49M |
| Cash, Cash Equivalents and Short-Term Investments | 43.98M | 34.17M | 30.99M | 24.64M | 7.05M |
| Total Debt | 450.98M | 242.72M | 296.09M | 235.25M | 219.68M |
| Total Liabilities | 456.18M | 256.42M | 309.32M | 263.34M | 252.64M |
| Stockholders Equity | 690.64M | 780.22M | 871.27M | 602.62M | 329.60M |
Cash Flow | |||||
| Free Cash Flow | 245.73M | 250.71M | -316.54M | 25.18M | 35.37M |
| Operating Cash Flow | 246.46M | 250.92M | 174.27M | 166.64M | 91.44M |
| Investing Cash Flow | -223.48M | -209.89K | -246.68M | -374.72M | -55.57M |
| Financing Cash Flow | -13.17M | -247.53M | 78.38M | 226.06M | -38.62M |
Kimbell Royalty Partners Technical Analysis
Positive
14.50
Price Trends
14.07
Positive
13.04
Positive
13.01
Positive
Market Momentum
0.17
Positive
52.33
Neutral
40.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRP, the sentiment is Positive. The current price of 14.5 is below the 20-day moving average (MA) of 14.55, above the 50-day MA of 14.07, and above the 200-day MA of 13.01, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 40.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KRP.
Kimbell Royalty Partners Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $1.34B | 18.58 | 17.61% | 12.53% | -12.51% | -59.55% | |
80 Outperform | $2.99B | 9.38 | 27.16% | 9.94% | -0.75% | -29.40% | |
76 Outperform | $1.77B | 11.74 | 12.05% | 13.84% | -2.71% | -113.80% | |
68 Neutral | $2.13B | 10.15 | 8.09% | 17.48% | 9.33% | ― | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
| ― | $1.10B | 13.61 | 944.35% | 7.51% | -14.84% | -16.23% | |
| ― | $62.04M | 16.89 | 0.02% | 6.02% | 18.14% | -68.41% |
* Energy Sector Average
KRP
Kimbell Royalty Partners
14.50
3.95
37.41%
DMLP
Dorchester Minerals
27.84
2.81
11.21%
SBR
Sabine Royalty
75.78
15.55
25.82%
PVL
Permianville Royalty
1.88
0.54
39.88%
BSM
Black Stone Minerals
14.08
1.36
10.69%
MNR
Mach Natural Resources LP
12.65
1.32
11.67%
Kimbell Royalty Partners Corporate Events
Business Operations and StrategyStock Buyback
Kimbell Royalty Partners Authorizes $100 Million Unit Buyback
Positive
Mar 9, 2026
On March 6, 2026, Kimbell Royalty Partners’ board approved a common unit repurchase program authorizing the partnership to buy back up to $100 million of its outstanding common units through December 31, 2027. The buybacks may be executed op...
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Kimbell Royalty Partners Reports Strong Q4 2025 Results
Positive
Feb 26, 2026
On February 26, 2026, Kimbell Royalty Partners reported fourth-quarter and full-year 2025 results, highlighting Q4 run-rate production of 25,627 Boe/d, $76 million in oil, gas and NGL revenue, and $24.8 million in net income. The partnership also ...
Business Operations and StrategyPrivate Placements and Financing
Kimbell Royalty Partners Enhances Credit Agreement Structure
Positive
Dec 16, 2025
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 mat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.