Kimbell Royalty Partners (KRP) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: 14.85%
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 45.1
• Beta (1Y): 0.77
• Revenue Growth: 13.72%
• EPS Growth: -110.82%
• Country: US
• Employees: 23
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.21
• Shares Outstanding: 92,502,230
• 10 Day Avg. Volume: 958,559
• 30 Day Avg. Volume: 1,174,221
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.83
• Price to Cash Flow (P/CF): 6.60
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.40
• Price Target Upside: 47.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Kimbell Royalty Partners demonstrates strong revenue growth and cash generation, bolstered by strategic acquisitions and production guidance. However, profitability challenges due to negative net income and valuation concerns due to a high P/E ratio temper the outlook. The high dividend yield provides a positive offset.

Positive Factors

Cash Distribution

The company achieved its stated objective of paying out 75% of distributable cash flow to common unitholders each quarter.

Future Production Impact

The recent Midland royalty deal has the potential to positively impact future production figures.

Negative Factors

Earnings and Revenue

The company announced lower than expected revenue and EBITDAX for the fourth quarter, primarily due to weaker commodity prices.

Leverage and Risk

Leverage is higher than the industry average when preferred shares are included, which could be a risk factor for investors.

Production Guidance

The company has provided a lower production guidance compared to consensus estimates, which contributes to a reduced valuation.

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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 11.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 11.78 is below the 20-day moving average (MA) of 13.55, below the 50-day MA of 14.17, and below the 200-day MA of 14.97, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 43.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KRP.

Kimbell Royalty Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIVI	77 Outperform	$2.82B	3.58	13.09%	6.60%	49.65%	-5.53%
BSM	73 Outperform	$3.01B	12.42	23.12%	11.44%	-12.71%	-39.85%
SBR	66 Neutral	$887.01M	11.14	922.55%	8.42%	-11.35%	-11.76%
KRP	64 Neutral	$2.38B	45.09	1.48%	14.85%	13.72%	-110.82%
DMLP	62 Neutral	$1.34B	13.28	32.48%	11.36%	-1.39%	-23.38%
SJT	61 Neutral	$240.04M	46.52	189.96%	8.81%	-85.94%	-88.55%
Sector *	57 Neutral	$7.68B	4.29	-3.52%	6.80%	-0.14%	-64.60%

Kimbell Royalty Partners Corporate Events

Kimbell Royalty Partners Reports Record 2024 Results

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.