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Kimbell Royalty Partners Lp (KRP)
NYSE:KRP
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Kimbell Royalty Partners
(NYSE:KRP)64Neutral
Positive Factors
Deal Impact
The recent Midland royalty deal has the potential to positively impact future production figures.
Negative Factors
Earnings Performance
The company announced lower than expected revenue and EBITDAX for the fourth quarter, primarily due to weaker commodity prices.
Production Guidance
The company has provided a lower production guidance compared to consensus estimates, which contributes to a reduced valuation.
Kimbell Royalty Partners (KRP) vs. S&P 500 (SPY)
Market Cap
$2.68B
Dividend Yield12.94%
Average Volume (3M)1.02M
Price to Earnings (P/E)45.1
Beta (1Y)0.75
Revenue Growth13.72%
EPS Growth-110.82%
CountryUS
Employees29
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)-0.21
Shares Outstanding92,502,230
10 Day Avg. Volume1,620,230
30 Day Avg. Volume1,022,722
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.79
Price to Cash Flow (P/CF)6.40
P/FCF Ratio6.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.60Price Target Upside44.97% 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 shows strong revenue growth and efficient cash generation, but faces profitability challenges with a negative net income and net profit margin. The balance sheet is stable with moderate leverage, though the negative return on equity is a concern.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 | |||
| 309.31B | 273.18M | 285.04M | 178.41M | 92.93M | Gross Profit |
| 288.90B | 156.38M | 218.71M | 131.13M | 38.55M | EBIT |
| 36.99B | 109.87M | 136.92M | 49.31M | -44.32M | EBITDA |
| 36.99B | 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 | |||
| 34.17B | 30.99M | 24.64M | 7.05M | 9.80M | Total Assets |
| 1.12T | 1.34B | 1.08B | 601.49M | 564.63M | Total Debt |
| 242.72B | 296.09M | 235.25M | 219.68M | 174.40M | Net Debt |
| 208.55B | 265.10M | 210.62M | 212.63M | 164.59M | Total Liabilities |
| 256.42B | 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 |
| -247.53B | 78.38M | 226.06M | -38.62M | 24.18M |
Kimbell Royalty Partners Technical Analysis
Negative
13.52
Price Trends
15.51
Negative
15.66
Negative
15.61
Negative
Market Momentum
-0.56
Positive
25.96
Positive
8.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KRP, the sentiment is Negative. The current price of 13.52 is below the 20-day moving average (MA) of 15.05, below the 50-day MA of 15.51, and below the 200-day MA of 15.61, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 25.96 is Positive, neither overbought nor oversold. The STOCH value of 8.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $965.30M | 12.12 | 922.55% | 8.23% | 4.88% | 5.15% | |
73 Outperform | $3.11B | 12.86 | 23.12% | 10.17% | -12.71% | -39.85% | |
64 Neutral | $2.68B | 45.09 | 1.48% | 12.94% | 13.72% | -110.82% | |
62 Neutral | $1.43B | 14.14 | 32.48% | 10.67% | -1.39% | -23.38% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
KRP
Kimbell Royalty Partners
13.52
-0.53
-3.77%
DMLP
Dorchester Minerals
29.58
1.00
3.50%
SBR
Sabine Royalty
65.78
9.42
16.71%
BSM
Black Stone Minerals
14.63
0.50
3.54%
Kimbell Royalty Partners Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -13.44% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
Kimbell Royalty Partners reported a strong performance with substantial growth in production, revenue, and successful acquisitions. The company demonstrates a strong financial position and has introduced a record high production guidance for 2025. While there are concerns about general and administrative expenses and potential regulatory challenges, these are outweighed by the positive developments.Highlights
Substantial Growth in Key Metrics
Kimbell reported substantial growth in production, revenue, and EBITDA for the year 2024, with a record run-rate production of 25,946 BOE per day.
Successful Acquisitions and Financial Position
Kimbell closed a $230 million acquisition, conducted a successful primary equity offering, and maintained a conservative balance sheet with net debt to trailing twelve-month consolidated adjusted EBITDA of approximately 0.8 times.
Strong Drilling Activity and Market Share
The company had 91 rigs actively drilling, representing a 16% market share of all rigs in the Lower 48 states.
Tax-Advantaged Distributions
Kimbell paid out $1.75 per common unit in tax-advantaged quarterly distributions during 2024.
Record High Production Guidance for 2025
Introduced 2025 guidance with expected production at its midpoint at a record level of 25,500 BOE per day.
Lowlights
General and Administrative Expenses
Fourth quarter general and administrative expenses were $9.4 million, with $5.6 million as cash G&A expense, translating to $2.53 per BOE.
Potential Regulatory Challenges
Discussion about potential regulatory changes under the new administration, but no immediate impact seen on the business.
Company Guidance
In the fourth quarter earnings call for Kimbell Royalty Partners, the company provided comprehensive guidance for 2025. They reported a record run-rate production of 25,946 BOE per day and announced a cash distribution of $0.40 per common unit, equating to 75% of cash available for distribution. The remaining 25% will contribute to reducing the outstanding borrowings under the secured revolving credit facility. Kimbell's net debt to trailing twelve-month consolidated adjusted EBITDA stands at approximately 0.8 times, with $239.2 million in debt outstanding and $310.8 million in undrawn capacity. For 2025, Kimbell expects production at a midpoint of 25,500 BOE per day, reflecting stability and potential growth, supported by strong drilling activity with 91 rigs, particularly in the Permian Basin. The company remains focused on maintaining a conservative balance sheet while pursuing strategic acquisitions, as evidenced by a recent $230 million acquisition and a successful primary equity offering.Kimbell Royalty Partners Corporate Events
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.
M&A TransactionsBusiness Operations and Strategy
Kimbell Royalty Partners Boosts Portfolio with Major Acquisition
Positive
Jan 7, 2025
Kimbell Royalty Partners announced a $231 million acquisition of oil and gas mineral and royalty interests from Boren Minerals in the Permian Basin. This acquisition is expected to enhance Kimbell’s production capacity by approximately 8%, reduce general and administrative expenses, and increase its inventory of drilled but uncompleted wells and undrilled locations, reinforcing its position as a key player in the U.S. oil and gas royalty sector.
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.