Kimbell Royalty Partners (KRP)
NYSE:KRP
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Kimbell Royalty Partners
(NYSE:KRP)
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Rating:74Outperform
Price Target:
$17.50
▲(24.29% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by strong cash-flow generation and solid current profitability, supported by favorable momentum and a positive earnings update with reaffirmed guidance and higher distributions. Offsetting factors include elevated valuation (high P/E despite a strong yield) and ongoing sensitivity to commodity-driven volatility and leverage trends.
Positive Factors
Strong cash generation
Consistent operating and free cash flow in 2024–TTM indicates durable cash conversion from royalty revenues. Strong FCF supports distributions, opportunistic buybacks and acquisitive growth without requiring equity issuance, improving long-term capital allocation flexibility.
Negative Factors
Commodity-price sensitivity
Royalty revenues are inherently linked to commodity prices; sustained or abrupt price weakness directly reduces cash receipts and distributions. Volatility complicates M&A pricing and operator activity, constraining predictable cash flow and capital allocation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent operating and free cash flow in 2024–TTM indicates durable cash conversion from royalty revenues. Strong FCF supports distributions, opportunistic buybacks and acquisitive growth without requiring equity issuance, improving long-term capital allocation flexibility.
Read all positive factors
Kimbell Royalty Partners (KRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.78B
Dividend Yield13.84%
Average Volume (3M)860.90K
Price to Earnings (P/E)51.2
Beta (1Y)0.40
Revenue Growth0.87%
EPS Growth770.57%
CountryUS
Employees23
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.73
Shares Outstanding98,652,270
10 Day Avg. Volume1,077,656
30 Day Avg. Volume860,900
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 Cap1.03
Enterprise Value/Revenue5.57
Enterprise Value/Gross Profit5.92
Enterprise Value/Ebitda8.11
Forecast
1Y Price Target
$18.00Price Target Upside27.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.84
Revenue Forecast (FY)$365.78M
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
KRP primarily makes money by collecting royalty and mineral income tied to hydrocarbons produced from wells operated by third parties on acreage where KRP owns mineral and/or royalty interests. When production occurs, operators sell the oil, natur...
Kimbell Royalty Partners Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and financial picture: production exceeded guidance, revenues and adjusted EBITDA were strong, distributions were increased (up 11% QoQ) with favorable tax treatment for unitholders, repurchases were initiated, and leverage remains modest at ~1.6x net debt/TTM EBITDA with substantial undrawn capacity. Offset risks include commodity price volatility related to geopolitical events, temporary market valuation weakness in the stock, and uncertainty around timing and volume of M&A activity until volatility subsides. Management affirmed 2026 guidance and highlighted line-of-sight inventory and rig activity that could translate to further upside if commodity stability continues.Positive Updates
Production Beat Guidance
Run-rate production of 25,522 BOE/day in Q1 2026, which exceeded the midpoint of company guidance, demonstrating resilience of a diversified, low-decline production base.
Negative Updates
Commodity Price Volatility and Macro Uncertainty
Management noted recent oil price volatility driven by Middle East conflict and macro uncertainty; while prices remain elevated versus history, volatility is working against stable transaction pricing and could pressure near-term planning.
Read all updates
Q1-2026 Updates
Positive
Negative
Production Beat Guidance
Run-rate production of 25,522 BOE/day in Q1 2026, which exceeded the midpoint of company guidance, demonstrating resilience of a diversified, low-decline production base.
Read all positive updates
Company Guidance
Management reaffirmed its 2026 financial and operational guidance and highlighted that Q1 results beat the midpoint of guidance with oil, gas and NGL revenues of $82.9M, run‑rate production of 25,522 BOE/d, consolidated adjusted EBITDA of $68M, total G&A of $9.4M (cash G&A $5.3M or $2.31/BOE), and an active rig count of 85 rigs (16% U.S. land rigs); they said line‑of‑sight wells exceed maintenance well counts and that DUC-to-production timing has averaged ~6 months (permits to DUCs up to ~1 year). The company declared a Q1 distribution of $0.41 per common unit (up 11% QoQ), representing an approximate 11% annualized tax‑advantaged yield with ~72% of the distribution expected to be return of capital, and noted distributions equal 75% of cash available for distribution (the remaining 25% to pay down revolver); balance sheet metrics included $440.9M outstanding on the secured revolver (net debt / TTM consolidated adjusted EBITDA ~1.6x) and $184.1M of undrawn capacity, and management repurchased 500k units for ~$7.3M at an average $14.60 while reiterating expectations for a modest uptick in activity as commodity prices support acceleration.Kimbell Royalty Partners Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
64
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 327.79M | 333.83M | 310.65M | 273.18M | 285.04M | 178.41M |
| Gross Profit | 308.66M | 313.39M | 155.12M | 156.38M | 218.71M | 131.13M |
| EBITDA | 225.23M | 133.16M | 172.47M | 209.54M | 197.76M | 88.79M |
| Net Income | 74.42M | 90.95M | 12.25M | 66.45M | 111.93M | 33.86M |
Balance Sheet | ||||||
| Total Assets | 1.19B | 1.23B | 1.12B | 1.34B | 1.08B | 601.49M |
| Cash, Cash Equivalents and Short-Term Investments | 37.16M | 43.98M | 34.17M | 30.99M | 24.64M | 7.05M |
| Total Debt | 445.23M | 450.98M | 242.72M | 296.09M | 235.25M | 219.68M |
| Total Liabilities | 464.87M | 456.18M | 256.42M | 309.32M | 263.34M | 252.64M |
| Stockholders Equity | 680.86M | 690.64M | 780.22M | 871.27M | 602.62M | 329.60M |
Cash Flow | ||||||
| Free Cash Flow | 241.01M | 245.73M | 250.71M | -316.54M | 25.18M | 35.37M |
| Operating Cash Flow | 241.74M | 246.46M | 250.92M | 174.27M | 166.64M | 91.44M |
| Investing Cash Flow | -544.01K | -223.48M | -209.89K | -246.68M | -374.72M | -55.57M |
| Financing Cash Flow | -239.66M | -13.17M | -247.53M | 78.38M | 226.06M | -38.62M |
Kimbell Royalty Partners Technical Analysis
Positive
14.08
Price Trends
14.76
Positive
13.90
Positive
13.25
Positive
Market Momentum
0.17
Positive
54.42
Neutral
54.95
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 14.08 is below the 20-day moving average (MA) of 15.15, below the 50-day MA of 14.76, and above the 200-day MA of 13.25, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.33B | 11.22 | 21.88% | 12.53% | -2.97% | -33.78% | |
74 Outperform | $1.78B | 51.23 | 10.68% | 13.84% | 0.87% | 770.57% | |
68 Neutral | $2.36B | -16.81 | 13.10% | 17.48% | 22.47% | -56.03% | |
67 Neutral | $2.94B | 60.48 | 26.86% | 9.94% | 54.86% | 37.42% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
| ― | $1.12B | 21.05 | 959.49% | 7.51% | -11.58% | -12.24% | |
| ― | $64.68M | 10.76 | 34.20% | 6.02% | 60.32% | 74.97% |
* Energy Sector Average
KRP
Kimbell Royalty Partners
15.19
3.09
25.57%
DMLP
Dorchester Minerals
27.47
2.43
9.70%
SBR
Sabine Royalty
77.04
15.06
24.29%
PVL
Permianville Royalty
1.96
0.51
35.55%
BSM
Black Stone Minerals
13.82
1.48
12.00%
MNR
Mach Natural Resources LP
14.05
2.24
18.98%
Kimbell Royalty Partners Corporate Events
Business Operations and StrategyM&A Transactions
Kimbell Royalty Partners Expands Permian Mineral Interests
Positive
May 19, 2026
On May 18, 2026, Kimbell Royalty Partners and its affiliate agreed to acquire mineral and royalty interests in the Permian Basin from Mesa Royalties in a cash-and-unit deal valued at about $147 million. The package spans roughly 711 net royalty ac...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Kimbell Royalty Partners Reports Strong First-Quarter 2026 Results
Positive
May 7, 2026
Kimbell Royalty Partners, LP, based in Fort Worth, Texas, is a leading owner of oil and natural gas mineral and royalty interests, holding stakes in over 133,000 gross wells across 28 U.S. states. The partnership earns revenue from oil, natural ga...
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 ...
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.