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Kimbell Royalty Partners
(NYSE:KRP)
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Rating:75Outperform
Price Target:
$17.50
▲(15.36% Upside)
Action:Reiterated
Date:08/24/26
Overall score reflects solid current fundamentals (improved profitability and strong free-cash-flow conversion) and supportive technical positioning (price above major moving averages with positive MACD). The very high dividend yield helps, but is balanced by a moderate P/E for a cyclical business, higher leverage than prior periods, and acknowledged commodity/liquidity sensitivities (including revolver utilization and gas-market softness).
Positive Factors
Low-capital-intensity royalty model
The royalty model limits direct operating and development spending while preserving exposure to production growth. Reliance on third-party operators can support durable cash conversion and portfolio expansion without requiring KRP to run wells.
Negative Factors
Higher leverage and revolver reliance
The increase in leverage reduces the balance-sheet cushion against commodity downturns and weaker production. Substantial revolver usage also makes liquidity dependent on borrowing-base support, cash retention and continued asset performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-capital-intensity royalty model
The royalty model limits direct operating and development spending while preserving exposure to production growth. Reliance on third-party operators can support durable cash conversion and portfolio expansion without requiring KRP to run wells.
Read all positive factors
Kimbell Royalty Partners (KRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.95B
Dividend Yield10.6%
Average Volume (3M)590.35K
Price to Earnings (P/E)17.9
Beta (1Y)0.34
Revenue Growth10.33%
EPS GrowthN/A
CountryUS
Employees29
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.84
Shares Outstanding100,895,980
10 Day Avg. Volume608,237
30 Day Avg. Volume590,352
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)1.55
Price to Sales (P/S)3.20
P/FCF Ratio4.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.00Price Target Upside25.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.93
Revenue Forecast (FY)$385.06M
Kimbell Royalty Partners Business Overview & Revenue Model
Company Description
Kimbell Royalty Partners, LP (KRP) and its affiliates are dedicated to acquiring and owning mineral and royalty interests in crude oil and natural gas properties across the United States. As of December 31, 2021, its comprehensive portfolio includ...
How the Company Makes Money
KRP makes money primarily by receiving royalty and other mineral-related payments tied to hydrocarbon production from wells drilled and operated by third parties on acreage where KRP owns mineral and/or royalty interests. When oil, natural gas, or...
Kimbell Royalty Partners Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The earnings call presented multiple operating and financial records (revenues of $103M, consolidated adjusted EBITDA of $84.9M, distribution up 15%, production growth and run-rate expansion), strong capital deployment (repurchases and >$360M of acquisitions) and a conservative leverage profile (net debt/TTM EBITDA ~1.4x and expanded borrowing base). Headwinds include commodity price volatility, a highly competitive Permian M&A market (leading to elevated bid levels), softness in natural gas volumes/pricing (Haynesville and Mid‑Con pressure), and remaining preferred units and revolver utilization that require active liquidity management. On balance, the positive operational and financial momentum and disciplined balance sheet and capital allocation outweigh the risks cited.Positive Updates
Record Revenues Exceed $100 Million
Oil, natural gas and NGL revenues totaled $103.0 million in Q2 2026, the first quarter revenues exceeded $100 million and a new company record (includes 9 days contribution from the Mesa Royalties acquisition).
Negative Updates
Commodity Price Volatility and Geopolitical Uncertainty
Management noted recent significant oil price volatility tied to the Middle East conflict; while prices remain elevated, the volatility introduces uncertainty which could affect future operator activity and near-term visibility.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenues Exceed $100 Million
Oil, natural gas and NGL revenues totaled $103.0 million in Q2 2026, the first quarter revenues exceeded $100 million and a new company record (includes 9 days contribution from the Mesa Royalties acquisition).
Read all positive updates
Company Guidance
Management affirmed its full‑year 2026 financial and operational guidance ranges (to be updated upon closing of the drop‑down later this month) and said line‑of‑sight wells exceed maintenance counts, supporting continued development and a modest uptick in activity if oil prices remain elevated. Relevant metrics cited: Q2 oil, natural gas and NGL revenues of $103.0 million, record consolidated adjusted EBITDA of $84.9 million, average daily production of 25,830 BOE/d (run‑rate 26,967 BOE/d post‑Mesa), 91 rigs on acreage (≈16% U.S. land rig share), cash G&A $5.9 million ($2.50/BOE), a Q2 distribution of $0.47 per common unit (up 15% QoQ) funded at a 75% payout of cash available for distribution (≈47% of the distribution estimated as return of capital) with the remaining 25% of CFaD earmarked to pay down revolver borrowings; balance sheet and liquidity metrics included revolver borrowings of ~$478.7 million, undrawn capacity of ~$181.3 million, a borrowing base increase from $625 million to $660 million (with another increase expected from the drop‑down), and net debt to trailing‑12‑month consolidated adjusted EBITDA of ~1.4x (management noted comfort around ~1.5x and may opportunistically move slightly higher to redeem preferreds).Kimbell Royalty Partners Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 368.10M | 333.83M | 310.65M | 273.18M | 285.04M | 178.41M |
| Gross Profit | 301.89M | 313.39M | 155.12M | 156.38M | 218.71M | 131.13M |
| EBITDA | 211.80M | 133.16M | 172.47M | 209.54M | 197.76M | 88.79M |
| Net Income | 89.12M | 90.95M | 12.25M | 66.45M | 111.93M | 33.86M |
Balance Sheet | ||||||
| Total Assets | 1.33B | 1.23B | 1.12B | 1.34B | 1.08B | 601.49M |
| Cash, Cash Equivalents and Short-Term Investments | 44.93M | 43.98M | 34.17M | 30.99M | 24.64M | 7.05M |
| Total Debt | 483.27M | 450.98M | 242.72M | 296.09M | 235.25M | 219.68M |
| Total Liabilities | 497.49M | 456.18M | 256.42M | 309.32M | 263.34M | 252.64M |
| Stockholders Equity | 735.03M | 690.64M | 780.22M | 871.27M | 602.62M | 329.60M |
Cash Flow | ||||||
| Free Cash Flow | 237.12M | 245.73M | 250.71M | -316.54M | 25.18M | 35.37M |
| Operating Cash Flow | 237.72M | 246.46M | 250.92M | 174.27M | 166.64M | 91.44M |
| Investing Cash Flow | -44.55M | -223.48M | -209.89K | -246.68M | -374.72M | -55.57M |
| Financing Cash Flow | -182.77M | -13.17M | -247.53M | 78.38M | 226.06M | -38.62M |
Kimbell Royalty Partners Technical Analysis
Positive
15.17
Price Trends
14.46
Positive
14.35
Positive
13.27
Positive
Market Momentum
0.24
Negative
60.78
Neutral
72.46
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 15.17 is above the 20-day moving average (MA) of 14.68, above the 50-day MA of 14.46, and above the 200-day MA of 13.27, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.17B | 12.25 | 25.56% | 8.19% | 0.64% | 2.99% | |
79 Outperform | $1.42B | 15.87 | 28.25% | 9.14% | 13.91% | -1.27% | |
75 Outperform | $1.95B | 17.92 | 12.70% | 10.11% | 10.33% | ― | |
74 Outperform | $2.09B | 21.82 | 12.74% | 13.59% | 39.27% | -72.63% | |
66 Neutral | $1.09B | 15.01 | 961.81% | 6.64% | -2.95% | -2.96% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
54 Neutral | $59.73M | 10.31 | 15.04% | 6.02% | 71.83% | 86.17% |
* Energy Sector Average
KRP
Kimbell Royalty Partners
15.10
2.58
20.63%
DMLP
Dorchester Minerals
28.72
7.02
32.33%
SBR
Sabine Royalty
73.42
5.66
8.35%
PVL
Permianville Royalty
1.81
0.02
1.23%
BSM
Black Stone Minerals
14.80
3.74
33.84%
MNR
Mach Natural Resources LP
12.44
0.11
0.90%
Kimbell Royalty Partners Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Kimbell Royalty Partners Completes Major Dropdown Acquisition
Positive
Aug 24, 2026
On August 21, 2026, Kimbell Royalty Partners closed a $221.2 million dropdown acquisition of mineral and royalty interests from affiliated sellers in a cash-and-unit transaction. The consideration included approximately $75 million in cash and 9.5...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Kimbell Royalty Posts Record Q2 Results, Hikes Distribution
Positive
Aug 7, 2026
On August 7, 2026, Kimbell Royalty Partners reported record second-quarter 2026 results, including record daily production of 25,830 Boe/d, oil, gas and NGL revenues of $103.0 million, net income of $47.3 million and consolidated adjusted EBITDA o...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Kimbell Royalty Partners Announces Major Dropdown Acquisition
Positive
Jul 17, 2026
On July 16, 2026, Kimbell Royalty Partners and affiliated entities agreed to buy mineral and royalty interests, plus remaining stakes in OGM Partners I and RCPTX, from related Rivercrest and Cupola funds for total consideration of about $215.4 mil...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Kimbell Royalty Expands Permian Footprint with Mesa Acquisition
Positive
Jun 23, 2026
On June 22, 2026, Kimbell Royalty Partners closed a $145.9 million acquisition of Permian Basin mineral and royalty interests from Mesa Royalties, a portfolio of NGP-managed funds, in a cash and equity deal that included $44 million in cash and ab...
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.