Kimbell Royalty Partners (KRP) AI Stock Analysis

• Market Cap: $1.75B
• Dividend Yield: 13.84%
• Average Volume (3M): 558.42K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.51
• 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: 539,384
• 30 Day Avg. Volume: 558,423
• PEG Ratio: -0.19
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 3.20
• P/FCF Ratio: 4.35
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 5.84
• Enterprise Value/Gross Profit: 6.22
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $17.33
• Price Target Upside: 20.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.63
• Revenue Forecast (FY): $323.90M

• Rating: 73 Outperform
• Price Target: $16.00 ▲(11.58% Upside)
• Action: Upgraded Date: 02/27/26
• Date: Action: Upgraded 02/27/26

KRP scores above average primarily on strong cash generation and solid recent profitability, supported by a constructive technical uptrend. The score is tempered by higher 2025 leverage and commodity-linked earnings/cash-flow volatility, while valuation is mixed (very high yield but negative P/E). Earnings call commentary adds support via stable guidance, reserve growth, and improved financing, partly offset by gas realization headwinds and remaining capital-structure items.

Positive Factors

Cash generation / Free cash flow

Sustained high operating cash flow and back-to-back very strong free cash flow provide durable internal funding for distributions, opportunistic M&A and debt paydown. Over a 2–6 month horizon this supports financial flexibility and the company’s ability to fund consolidation without immediate equity raises.

Reserve growth and inventory depth

An ~8% increase to record proved developed reserves plus DUCs and permits above maintenance needs mean a deeper, longer-lived production base. This reserve and inventory profile underpins stable mid-term cash flows and optional upside from accelerated development or monetizations.

Improved liquidity and credit profile

A secured revolving facility with extended maturity and lower borrowing cost materially enhances liquidity and funding optionality. It reduces refinancing risk and supports acquisitive strategy and opportunistic mezzanine redemptions, strengthening multi-month operational resilience.

Negative Factors

Rising leverage

A marked increase in leverage to ~0.84 reduces balance-sheet flexibility and increases fixed-cost obligations. Over the next several months this constrains strategic choices (M&A vs. deleveraging), raises refinancing sensitivity if commodity cash flows weaken, and heightens capital-structure risk.

Commodity realization and regional exposure

Material exposure to volatile gas differentials and Waha pricing pressure creates persistent earnings and cash-flow variability. Structural takeaway constraints can depress realizations for a meaningful portion of volumes, limiting predictability of distributions and debt-paydown capacity across months.

Limited near-term production growth / operator dependence

Flat production guidance signals constrained organic growth in the near term and highlights dependence on third-party operators for development cadence. This limits visible top-line expansion and makes future cash flows more reliant on acquisitive activity or improved operator activity rather than internal lift.

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 11.4 million gross acres and overriding royalty interests in approximately 4.7 million gross acres. The company's mineral and royalty interests are located in 28 states and include ownership in approximately 122,000 gross wells, including approximately 46,000 wells in the Permian Basin. It serves as the general partner of the company. The company was founded in 2013 and is based in Fort Worth, Texas.

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

Above-average fundamentals led by strong operating cash flow and very strong recent free cash flow (2024–2025), plus solid 2025 profitability and multi-year revenue expansion. Offsetting factors are commodity-driven volatility (including a large negative FCF year in 2023) and a notable rise in leverage in 2025 (debt-to-equity ~0.84), which reduces flexibility.

Income Statement

Revenue has expanded meaningfully over the cycle (from ~$93M in 2020 to ~$334M in 2025), including a very strong 2025 growth rate, indicating improving scale. Profitability is solid in the most recent year (2025 net margin ~16.8% and EBITDA margin ~39.8%), but results have been volatile: 2020 showed a large loss and margins have swung sharply year-to-year (e.g., much stronger in 2022–2023, weaker in 2024). Overall, the earnings power looks good, but the variability fits a commodity-exposed business and limits the score.

Balance Sheet

Leverage has moved higher recently: debt-to-equity increased to ~0.84 in 2025 versus ~0.31–0.39 in 2022–2024, reducing balance-sheet flexibility. Equity remains sizable (2025 equity ~$532M on assets of ~$1.23B), and the latest return on equity (~10.5% in 2025) is respectable, but still below the stronger 2022 level. Net-net, the balance sheet is adequate, but the rising leverage trend is a clear risk factor.

Cash Flow

Cash generation is a key strength: operating cash flow is consistently strong (roughly $167M–$251M in 2021–2025) and free cash flow is very strong in 2024–2025 (~$251M and ~$246M, respectively). Cash conversion is high, with free cash flow roughly matching reported earnings in recent years, supporting distributions/deleveraging capacity. The main blemish is volatility, highlighted by a large negative free cash flow year in 2023, so cash flows are strong but not perfectly steady.

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	56.04M	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	445.91M	242.72M	296.09M	235.25M	219.68M
Total Liabilities	456.18M	256.42M	309.32M	263.34M	252.64M
Stockholders Equity	531.85M	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

• Technical Analysis Sentiment: Positive
• Last Price: 14.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 14.34 is above the 20-day moving average (MA) of 13.98, above the 50-day MA of 12.85, and above the 200-day MA of 13.29, indicating a bullish trend. The MACD of 0.39 indicates Positive momentum. The RSI at 65.41 is Neutral, neither overbought nor oversold. The STOCH value of 73.32 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DMLP	81 Outperform	$1.25B	22.42	16.40%	12.53%	-12.51%	-59.55%
MNR	81 Outperform	$2.19B	13.56	6.68%	17.48%	9.33%	―
BSM	80 Outperform	$3.21B	11.82	26.57%	9.94%	-0.75%	-29.40%
KRP	73 Outperform	$1.75B	23.24	12.36%	13.84%	-2.71%	-113.80%
SBR	66 Neutral	$1.06B	13.42	986.82%	7.51%	-14.84%	-16.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
PVL	54 Neutral	$53.79M	25.47	4.93%	6.02%	18.14%	-68.41%

Kimbell Royalty Partners Corporate Events

Kimbell Royalty Partners Reports Strong Q4 2025 Results

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 posted an updated Spring 2026 investor presentation, underscoring its practice of disseminating financial information through regulatory filings, press releases, public calls and its website.

Operational metrics showed continued strength, with 85 rigs active on Kimbell’s acreage at year-end 2025, representing about 16% of the U.S. land rig count, and proved developed reserves up roughly 8% to nearly 73 million Boe. The company highlighted a low five-year average PDP decline rate of 14% and an inventory of drilled but uncompleted wells and permits slightly above the level needed to sustain flat production, supporting the resilience and stability of its production base.

Financially, Kimbell reaffirmed a $625 million borrowing base and elected commitments on its secured revolving credit facility and, on December 16, 2025, extended the facility’s maturity to December 2030 while lowering borrowing costs by 35 basis points. Fourth-quarter consolidated Adjusted EBITDA reached $64.8 million, and the Board approved a Q4 2025 cash distribution of $0.37 per common unit, a 6% increase from Q3, with 75% of cash available for distribution paid out and 25% allocated to debt reduction.

Management noted that 2025 included key milestones, such as the $230 million acquisition of mineral and royalty interests under the Mabee Ranch in the Midland Basin and the redemption of half of the Series A preferred units, moves that expanded the Permian footprint and simplified the capital structure. Initiated 2026 operational guidance kept the production range unchanged from 2025, reflecting confidence in ongoing development and a stable production base, while reinforcing Kimbell’s positioning as a major consolidator in a U.S. royalty market it estimates at more than $650 billion.

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 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.

The most recent analyst rating on (KRP) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Kimbell Royalty Partners stock, see the KRP Stock Forecast page.