Education
About Us
Working with TipRanks
Follow Us
Kimbell Royalty Partners Lp (KRP)
NYSE:KRP
Top Page
Kimbell Royalty Partners
(NYSE:KRP)
Rating:63Neutral
Price Target:
$14.00
▲( 7.53% Upside)
Positive Factors
Cash Distribution
The new deal is expected to increase cash available for distribution by 2%.
Future Production
The recent Midland royalty deal has the potential to positively impact future production figures.
Leverage
KRP is expected to maintain pro-forma leverage below 1x despite increasing net debt.
Negative Factors
Earnings
The company announced lower than expected revenue and EBITDAX for the fourth quarter, primarily due to weaker commodity prices.
Production Guidance
2025 production guidance came in below expectations, contributing to a weaker production outlook.
Stock Performance
KRP underperformed by approximately 3% compared to the XOP, as production and distribution per share were lower than expected.
Kimbell Royalty Partners (KRP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend Yield13.15%
Average Volume (3M)612.69K
Price to Earnings (P/E)45.1
Beta (1Y)0.59
Revenue Growth3.20%
EPS Growth-91.39%
CountryUS
Employees23
SectorEnergy
Sector Strength40
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.26
Shares Outstanding93,396,484
10 Day Avg. Volume785,793
30 Day Avg. Volume612,691
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)2.24
Price to Sales (P/S)0.00
P/FCF Ratio6.38
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit9.19
Enterprise Value/Ebitda2.17
Forecast
1Y Price Target
$17.17Price Target Upside31.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Kimbell Royalty Partners Business Overview & Revenue Model
Company DescriptionKimbell Royalty Partners (KRP) is a leading oil and gas mineral and royalty company. The firm primarily operates in the energy sector, focusing on the acquisition and management of oil and natural gas mineral and royalty interests across the United States. KRP's extensive portfolio includes interests in over 125,000 wells, making it one of the largest publicly traded owners of oil and gas mineral rights in the country.
How the Company Makes MoneyKimbell Royalty Partners generates revenue through the collection of royalties and other income from its extensive portfolio of mineral and royalty interests. The company earns money by leasing its mineral rights to oil and gas exploration and production companies, which extract resources and pay KRP a percentage of the revenues generated from the sale of oil, natural gas, and natural gas liquids. This revenue model provides KRP with a steady stream of income that is directly linked to the production volumes and commodity prices of oil and gas. Additionally, KRP may engage in strategic acquisitions to expand its portfolio and increase its revenue potential.
Kimbell Royalty Partners Financial Statement Overview
Summary
Kimbell Royalty Partners demonstrates strong revenue growth and efficient cash generation. However, the company faces profitability challenges, as seen in its negative net income and net profit margin. The balance sheet indicates a stable structure with moderate leverage, but the negative return on equity due to losses is a concern. Addressing profitability issues will be crucial for enhancing financial performance in the future.Income Statement
Kimbell Royalty Partners shows a mixed performance in its income statement. The gross profit margin is strong at 93.39% for 2024, reflecting efficient cost management. However, the net profit margin for 2024 is negative (-2.86%), indicating profitability issues, primarily due to high expenses. Revenue growth is robust, with a significant increase from 2023 to 2024, showcasing potential for future expansion. Nonetheless, the negative net income is a concern that needs addressing.60
Neutral
Balance Sheet
The company exhibits a reasonable debt-to-equity ratio of 0.52, which suggests moderate leverage. The equity ratio stands at 41.44%, indicating a stable asset base supported by equity. However, the return on equity is negative due to the net loss, which impacts the overall assessment of financial health. The balance sheet shows potential for stability, but the negative profitability metrics weigh down the score.65
Positive
Cash Flow
Kimbell Royalty Partners has a strong operating cash flow to net income ratio of -28.39, indicating robust cash generation relative to net income. The free cash flow has grown significantly to 250.92 billion in 2024, showing the company’s ability to generate cash after capital expenditures. However, the negative net income affects the free cash flow to net income ratio, highlighting the need for improved profitability.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 310.65M | 273.18M | 285.04M | 178.41M | 92.93M | Gross Profit |
| 288.90M | 156.38M | 218.71M | 131.13M | 38.55M | EBIT |
| 36.99M | 109.87M | 136.92M | 49.31M | -44.32M | EBITDA |
| 36.99M | 209.54M | 197.76M | 88.79M | -202.28M | Net Income Common Stockholders |
| 12.25M | 66.45M | 111.93M | 33.86M | -256.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 34.17M | 30.99M | 24.64M | 7.05M | 9.80M | Total Assets |
| 1.12B | 1.34B | 1.08B | 601.49M | 564.63M | Total Debt |
| 242.72M | 296.09M | 235.25M | 219.68M | 174.40M | Net Debt |
| 208.55M | 265.10M | 210.62M | 212.63M | 164.59M | Total Liabilities |
| 256.42M | 309.32M | 263.34M | 252.64M | 186.33M | Stockholders Equity |
| 464.22B | 671.57B | 602.62B | 329.60B | 258.63B |
| Cash Flow | Free Cash Flow | |||
| 250.71M | -316.54M | 25.18M | 35.37M | -26.35M | Operating Cash Flow |
| 250.92M | 174.27M | 166.64M | 91.44M | 62.25M | Investing Cash Flow |
| -209.89M | -246.68M | -374.72M | -55.57M | -90.83M | Financing Cash Flow |
| -247.53M | 78.38M | 226.06M | -38.62M | 24.18M |
Kimbell Royalty Partners Technical Analysis
Neutral
13.02
Price Trends
12.59
Positive
13.55
Negative
14.09
Negative
Market Momentum
0.22
Negative
57.10
Neutral
30.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRP, the sentiment is Neutral. The current price of 13.02 is above the 20-day moving average (MA) of 12.40, above the 50-day MA of 12.59, and below the 200-day MA of 14.09, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 57.10 is Neutral, neither overbought nor oversold. The STOCH value of 30.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KRP.
Kimbell Royalty Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.67B | 3.31 | 12.73% | 7.01% | 22.14% | 5.69% | |
70 Outperform | $2.88B | 14.86 | 19.93% | 11.01% | -12.71% | -39.85% | |
67 Neutral | $1.34B | 13.49 | 33.71% | 11.48% | -1.39% | -23.38% | |
66 Neutral | $960.63M | 12.34 | 798.58% | 8.15% | -11.35% | -11.76% | |
63 Neutral | $1.60B | 45.09 | 2.88% | 13.15% | 3.20% | -91.39% | |
61 Neutral | $299.69M | 280.79 | 39.61% | 0.36% | -85.94% | -88.55% | |
57 Neutral | $7.14B | 3.33 | -3.45% | 5.75% | 0.66% | -50.76% |
* Energy Sector Average
Performance Comparison
KRP
Kimbell Royalty Partners
13.02
-1.67
-11.37%
CIVI
Civitas Resources
27.55
-38.48
-58.28%
DMLP
Dorchester Minerals
28.18
-0.40
-1.40%
SJT
San Juan Basin Royalty
6.78
2.51
58.78%
SBR
Sabine Royalty
65.95
7.85
13.51%
BSM
Black Stone Minerals
13.49
-0.77
-5.40%
Kimbell Royalty Partners Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 13.51%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call showcased a strong financial performance with record achievements and strategic moves to bolster the company's position, such as an accretive acquisition and increased borrowing capacity. However, challenges in the natural gas M&A market and the potential impact of commodity price volatility were noted. Overall, the call reflected a positive outlook despite some market uncertainties.Q1-2025 Updates
Positive Updates
Record First Quarter Achievements
Kimbell Royalty Partners reported a record first quarter with milestones in oil, natural gas, and NGL revenues, consolidated adjusted EBITDA, and cash available for distribution.
Accretive Acquisition in Permian Basin
Completed a highly attractive and accretive acquisition in the core of the Permian Basin, contributing to increased production and financial stability.
Increase in Borrowing Base
Increased the company's borrowing base and elected commitments on the credit facility from $550 million to $625 million.
Distribution Increase
Declared a first quarter distribution of $0.47 per common unit, an increase of 17.5% from the fourth quarter of 2024.
Strong Drilling Activity
Maintained 90 rigs actively drilling on acreage, representing a 16% market share in the Lower 48.
Permitting Success
Permitted 17 additional wells on a long-held property in Martin County, Texas, showcasing the strength of the asset portfolio.
Conservative Balance Sheet Management
Maintained a net debt to trailing twelve-month consolidated adjusted EBITDA of approximately 0.9 times, with significant undrawn capacity available.
Affirmation of Financial Guidance
Reaffirmed financial and guidance ranges for 2025, expressing confidence in continued development and growth.
Negative Updates
Challenges in Natural Gas M&A
Difficulty in transacting on natural gas deals due to high competition, particularly in the Haynesville region.
Potential Volatility in Commodity Prices
Acknowledged current volatility and uncertainty in the broader economy and its impact on commodity prices.
Hedging Strategy Concerns
Maintained a 20% hedging level, which might be seen as conservative given the significant contango in the natural gas strip.
Company Guidance
During the Kimbell Royalty Partners First Quarter Earnings Conference Call for fiscal year 2025, management provided several key metrics and guidance updates. The company reported record revenues from oil, natural gas, and NGLs, as well as record consolidated adjusted EBITDA and cash available for distribution. A significant milestone was the completion of an accretive acquisition in the Permian Basin on January 17, 2025. The company also increased its borrowing base from $550 million to $625 million and redeemed 50% of its Series A cumulative convertible preferred units, simplifying its capital structure and reducing its cost of capital. Kimbell maintained robust operational activity with 90 rigs actively drilling, representing a 16% market share in the Lower 48, and projected resilience in production with a low five-year annual average PDP decline rate of 14%. The company declared a first-quarter distribution of 47¢ per common unit, a 17.5% increase from the previous quarter, with approximately 70% expected to be considered a return of capital. Looking forward, Kimbell reaffirmed its 2025 guidance and expressed confidence in its role as a consolidator in the US oil and natural gas royalty sector, aiming to enhance long-term unitholder value.Kimbell Royalty Partners Corporate Events
Private Placements and FinancingDividendsFinancial Disclosures
Kimbell Royalty Partners Reports Record Q1 2025 Results
Positive
May 8, 2025
Kimbell Royalty Partners announced record financial results for the first quarter of 2025, with significant increases in oil, natural gas, and NGL revenues, net income, and consolidated adjusted EBITDA. The company also simplified its capital structure by redeeming 50% of its Series A Cumulative Convertible Preferred Units and increased its borrowing base to $625 million. With robust activity on its acreage, Kimbell declared a Q1 2025 cash distribution of $0.47 per common unit, reflecting a 17.5% increase from Q4 2024 and a 15.8% annualized yield.
DividendsBusiness Operations and StrategyFinancial Disclosures
Kimbell Royalty Partners Reports Record 2024 Results
Positive
Feb 27, 2025
On February 27, 2025, Kimbell Royalty Partners announced record financial and operational results for the fourth quarter and full year of 2024. The company reported a significant increase in production, exceeding 25,000 barrels of oil equivalent per day for the first time, largely due to a major acquisition. Despite a net loss attributed to a non-cash ceiling test impairment, Kimbell maintained a strong market position with a 16% share of the U.S. land rig count. The company also declared a cash distribution of $0.40 per common unit for Q4 2024 and initiated 2025 operational guidance with projected record-high production levels.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.