Kimbell Royalty Partners (KRP) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: 13.27%
• Average Volume (3M): 515.47K
• Price to Earnings (P/E): 45.1
• Beta (1Y): 0.56
• Revenue Growth: 3.20%
• EPS Growth: -91.39%
• Country: US
• Employees: 23
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.26
• Shares Outstanding: 93,396,484
• 10 Day Avg. Volume: 337,798
• 30 Day Avg. Volume: 515,470
• PEG Ratio: 0.01
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 134.52
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 9.70
• Enterprise Value/Ebitda: 2.65
• 1Y Price Target: $15.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $14.50 ▲(1.75%Upside)

Kimbell Royalty Partners' strong revenue growth and strategic acquisitions lead to a positive outlook. However, profitability challenges and valuation concerns weigh on the overall score. The high dividend yield and stable balance sheet provide some support, but addressing profitability is essential for future performance.

Positive Factors

Dividend Distribution

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

New Deal Impact

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

Negative Factors

Earnings Multiple

The company's earnings multiple is as high as larger mineral peers, which could be concerning for some investors.

Leverage 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 its ownership of oil and gas mineral and royalty interests. The company earns money by collecting royalties from the production of oil, natural gas, and natural gas liquids from its properties. These royalties are a percentage of the revenue generated from the extraction and sale of these resources by operating companies. KRP's revenue model is largely passive, as it does not engage in the actual extraction or operation of these resources, but rather benefits from the activity of other exploration and production companies. The company's revenue streams are influenced by factors such as commodity prices, production volumes, and the acquisition of additional royalty interests. Strategic partnerships and acquisitions play a significant role in expanding KRP's portfolio and enhancing its revenue potential.

Kimbell Royalty Partners Financial Statement Overview

Summary

Kimbell Royalty Partners shows strong revenue growth and efficient cash generation. However, profitability challenges are evident with a negative net income and net profit margin. The balance sheet is stable with moderate leverage, but the negative return on equity due to losses is a concern. Addressing profitability issues is crucial for future financial performance.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	322.53M	310.65M	273.18M	285.04M	178.41M	92.93M
Gross Profit	207.36M	288.90M	156.38M	218.71M	131.13M	38.55M
EBITDA	149.18M	36.99M	209.54M	197.76M	88.79M	-202.28M
Net Income	26.89M	12.25M	66.45M	111.93M	33.86M	-256.09M
Balance Sheet
Total Assets	1.33B	1.12B	1.34B	1.08B	601.49M	564.63M
Cash, Cash Equivalents and Short-Term Investments	35.63M	34.17M	30.99M	24.64M	7.05M	9.80M
Total Debt	303.65M	242.72M	296.09M	235.25M	219.68M	174.40M
Total Liabilities	322.20M	256.42M	309.32M	263.34M	252.64M	186.33M
Stockholders Equity	0.00	464.22B	671.57B	602.62B	329.60B	258.63B
Cash Flow
Free Cash Flow	12.96M	250.71M	-316.54M	25.18M	35.37M	-26.35M
Operating Cash Flow	236.02M	250.92M	174.27M	166.64M	91.44M	62.25M
Investing Cash Flow	-223.07M	-209.89M	-246.68M	-374.72M	-55.57M	-90.83M
Financing Cash Flow	-17.01M	-247.53M	78.38M	226.06M	-38.62M	24.18M

Kimbell Royalty Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 14.25 is above the 20-day moving average (MA) of 14.14, above the 50-day MA of 13.43, and above the 200-day MA of 14.00, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 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
CIVI	82 Outperform	$2.99B	3.71	12.73%	6.18%	22.14%	5.69%
DMLP	73 Outperform	$1.30B	13.16	33.71%	10.54%	12.35%	-18.66%
BSM	70 Outperform	$2.82B	14.54	19.93%	11.27%	-12.71%	-39.85%
KRP	68 Neutral	$1.73B	45.09	2.88%	13.27%	3.20%	-91.39%
SBR	66 Neutral	$968.21M	12.43	798.58%	7.71%	-11.35%	-11.76%
SJT	61 Neutral	$287.58M	269.43	39.61%	0.37%	-85.94%	-88.55%
Sector *	52 Neutral	C$2.94B	-1.04	-3.46%	5.85%	3.01%	-47.13%

Kimbell Royalty Partners Corporate Events

Kimbell Royalty Partners Reports Record Q1 2025 Results

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.