Kimbell Royalty Partners (KRP) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: 12.2%
• Average Volume (3M): 465.01K
• Price to Earnings (P/E): 45.1
• Beta (1Y): 0.52
• Revenue Growth: -2.89%
• EPS Growth: -107.61%
• Country: US
• Employees: 23
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.18
• Shares Outstanding: 93,396,484
• 10 Day Avg. Volume: 545,941
• 30 Day Avg. Volume: 465,015
• 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: 1.41
• Enterprise Value/Revenue: 7.22
• Enterprise Value/Gross Profit: 9.60
• Enterprise Value/Ebitda: 14.91
• 1Y Price Target: $17.25
• Price Target Upside: 26.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $15.00 ▲(10.21% Upside)

Kimbell Royalty Partners' overall stock score is driven by strong financial performance and positive earnings call sentiment. While the technical analysis and valuation present some concerns, the company's strategic initiatives and robust dividend yield provide a balanced outlook.

Positive Factors

Strong Cash Flow Management

Kimbell's ability to generate strong cash flow and strategically reduce debt enhances financial stability and supports sustainable distributions.

Increased Rig Activity

Increased rig activity in key basins like Permian and Haynesville suggests potential for higher production and revenue growth.

Improved Cost Efficiency

Lower G&A costs per BOE indicate improved operational efficiency, enhancing profitability and competitive positioning.

Negative Factors

Decline in U.S. Land Rig Count

A declining U.S. land rig count may signal reduced future production potential, impacting revenue and growth prospects.

Mid-Con Drilling Activity Decline

Decreased drilling activity in the Mid-Con region could limit resource development and revenue generation from this area.

Challenges in Natural Gas Acquisitions

Challenges in acquiring natural gas assets may hinder Kimbell's ability to expand its portfolio and capitalize on market opportunities.

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 royalty payments from oil and gas companies that operate on the mineral rights it owns. The revenue model is based on a percentage of the production revenue from wells drilled on its properties, commonly referred to as 'royalty income.' Additionally, KRP may earn revenues from lease bonuses and other ancillary income linked to land leases. The company benefits from a diversified asset base, which allows it to mitigate risks associated with fluctuations in commodity prices. Strategic partnerships with exploration and production companies enhance KRP's earnings potential, as these collaborations often lead to increased production activities on its leased lands, thereby generating higher royalty revenues. Market conditions, such as oil and gas prices, directly influence KRP's revenue streams and overall financial performance.

Kimbell Royalty Partners Financial Statement Overview

Summary

Kimbell Royalty Partners demonstrates solid financial health with strong profitability and cash flow metrics. The company shows positive revenue growth and maintains a stable balance sheet with moderate leverage. While profitability margins have fluctuated, the company remains well-positioned in the oil and gas industry. Continued focus on improving return on equity and free cash flow conversion will further strengthen its financial position.

Income Statement

Kimbell Royalty Partners shows strong profitability with a gross profit margin of 75.18% and a net profit margin of 11.94% for TTM. Revenue growth is positive at 2.77% TTM, indicating a stable upward trend. However, the EBIT and EBITDA margins have shown some volatility, with the TTM EBIT margin at 20.18% and EBITDA margin at 48.42%, reflecting a decrease from previous periods.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.65 TTM, suggesting manageable leverage. Return on equity is relatively low at 4.87% TTM, indicating limited efficiency in generating returns from equity. The equity ratio stands at 55.65%, showing a solid equity base relative to total assets.

Cash Flow

Kimbell Royalty Partners exhibits strong cash flow management with a significant free cash flow growth rate of 73.11% TTM. The operating cash flow to net income ratio is robust at 15.17, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is lower at 9.14%, suggesting room for improvement in converting income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	331.46M	310.65M	273.18M	285.04M	178.41M	92.93M
Gross Profit	249.18M	155.12M	156.38M	218.71M	131.13M	38.55M
EBITDA	160.50M	172.47M	209.54M	197.76M	88.79M	-202.28M
Net Income	39.58M	12.25M	66.45M	111.93M	33.86M	-159.54M
Balance Sheet
Total Assets	1.28B	1.12B	1.34B	1.08B	601.49M	564.63M
Cash, Cash Equivalents and Short-Term Investments	34.52M	34.17M	30.99M	24.64M	7.05M	9.80M
Total Debt	466.67M	242.72M	296.09M	235.25M	219.68M	174.40M
Total Liabilities	483.53M	256.42M	309.32M	263.34M	252.64M	186.33M
Stockholders Equity	715.03M	780.22M	871.27M	602.62M	329.60M	301.30M
Cash Flow
Free Cash Flow	22.44M	250.71M	-316.54M	25.18M	35.37M	-26.35M
Operating Cash Flow	245.46M	250.92M	174.27M	166.64M	91.44M	62.25M
Investing Cash Flow	-223.37M	-210.00K	-246.68M	-374.72M	-55.57M	-90.83M
Financing Cash Flow	-18.51M	-247.53M	78.38M	226.06M	-38.62M	24.18M

Kimbell Royalty Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 13.61 is above the 20-day moving average (MA) of 13.61, below the 50-day MA of 13.89, and above the 200-day MA of 13.49, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 66.36 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
MNR	77 Outperform	1.58B	6.78	24.04%	17.05%	11.56%	―
DMLP	75 Outperform	1.24B	14.52	24.51%	11.79%	4.58%	-32.82%
BSM	70 Outperform	2.83B	11.49	―	10.66%	-8.06%	-22.61%
KRP	69 Neutral	$1.70B	45.09	4.52%	12.20%	-2.89%	-107.61%
SBR	66 Neutral	1.20B	16.18	―	6.70%	-16.05%	-17.58%
PVL	54 Neutral	60.80M	20.00	―	3.48%	45.14%	-59.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Kimbell Royalty Partners Corporate Events

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.