Kimbell Royalty (NYSE:KRP) Announces Earnings Results

Kimbell Royalty (NYSE:KRP) posted its quarterly earnings results on Thursday. The energy company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07, Briefing.com reports. The business had revenue of $82.45 million for the quarter, compared to analysts’ expectations of $76.78 million. Kimbell Royalty had a return on equity of 12.51% and a net margin of 10.66%.The business’s quarterly revenue was up 23.7% on a year-over-year basis. During the same period last year, the firm earned ($0.48) earnings per share.

Here are the key takeaways from Kimbell Royalty’s conference call:

• Distribution and returns: Q4 production topped guidance and management declared a $0.37/Q4 distribution (up 6% QoQ), with $1.60/unit returned in 2025 — management says ~100% is treated as return of capital, enhancing after‑tax unit holder returns.
• Reserves and activity: Proved developed reserves rose ~8% to nearly 73 million BOE, with 85 rigs active across Kimbell acreage (16% of U.S. land rigs) and line‑of‑sight wells exceeding the maintenance count, supporting production resilience.
• Balance sheet and liquidity: Kimbell amended its credit facility (reaffirmed $625M borrowing base, cut bank debt cost by 35 bps, extended maturity to Dec 16, 2030), had $441.5M drawn and ~$183.5M undrawn at year‑end, and a net debt/TTM Adj. EBITDA of ~1.5x.
• M&A strategy: Management plans to be a leading consolidator in the fragmented royalty sector, targeting accretive $100M–$500M deals across basins where Kimbell believes it has a competitive edge, including out‑of‑favor basins like the MidCon.
• Outlook and commodity drivers: 2026 production guidance midpoint is unchanged at 25,500 BOE/d with a stable production cadence expected; natural gas differentials are seasonal and Waha takeaway improvements are a multi‑year catalyst, while 75% of cash available for distribution funds payouts and 25% will pay down revolver (with opportunistic mezzanine redemptions possible later).

Kimbell Royalty Stock Down 1.0%

Shares of KRP traded down $0.15 during midday trading on Friday, hitting $14.36. 453,899 shares of the company’s stock traded hands, compared to its average volume of 624,240. The company has a current ratio of 5.39, a quick ratio of 5.39 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $1.55 billion, a price-to-earnings ratio of -205.01, a price-to-earnings-growth ratio of 3.58 and a beta of 0.34. Kimbell Royalty has a 1 year low of $10.98 and a 1 year high of $15.35. The firm’s fifty day moving average is $12.87 and its 200-day moving average is $13.14.

Kimbell Royalty Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 25th. Stockholders of record on Wednesday, March 18th will be issued a dividend of $0.37 per share. The ex-dividend date is Wednesday, March 18th. This represents a $1.48 annualized dividend and a dividend yield of 10.3%. This is a boost from Kimbell Royalty’s previous quarterly dividend of $0.35. Kimbell Royalty’s dividend payout ratio (DPR) is currently -2,000.00%.

Institutional Investors Weigh In On Kimbell Royalty

Several institutional investors have recently added to or reduced their stakes in the business. Marex Group plc acquired a new position in shares of Kimbell Royalty during the fourth quarter valued at about $118,000. Squarepoint Ops LLC purchased a new stake in Kimbell Royalty during the 4th quarter worth approximately $120,000. Quadrature Capital Ltd acquired a new position in Kimbell Royalty during the 4th quarter valued at approximately $134,000. Westwood Holdings Group Inc. purchased a new position in shares of Kimbell Royalty in the second quarter worth $140,000. Finally, Virtus Advisers LLC lifted its stake in shares of Kimbell Royalty by 46.6% during the fourth quarter. Virtus Advisers LLC now owns 13,299 shares of the energy company’s stock worth $156,000 after buying an additional 4,229 shares during the period. Institutional investors and hedge funds own 25.78% of the company’s stock.

Key Headlines Impacting Kimbell Royalty

Here are the key news stories impacting Kimbell Royalty this week:

• Positive Sentiment: Q4 beat — Kimbell reported GAAP EPS of $0.21 vs. $0.14 consensus and revenue of $82.45M (up ~23.7% YoY), highlighting stronger profitability and topline growth. Zacks: Q4 Results
• Positive Sentiment: Dividend increase — the board declared a $0.37 quarterly distribution (up from $0.35), implying a roughly 10.4% annual yield and reinforcing the company’s income profile for yield-seeking investors. PR Newswire: Q4 Results & Distribution
• Positive Sentiment: Stronger balance-sheet dynamics — proved developed reserves rose ~8% Y/Y (to ~73M Boe), the revolver was extended to Dec. 2030, and bank debt costs were cut ~35 bps, lowering financing risk and preserving flexibility. PR Newswire: Reserves & Credit Facility
• Positive Sentiment: Analyst support — at least one firm (TD Cowen) reiterated a constructive view citing resilient production and free-cash-flow yield, which can help underpin shares despite near-term selling. TipRanks: Analyst Note
• Neutral Sentiment: Form 10‑K filed — the company filed its 2025 Annual Report (Form 10‑K), providing full audited disclosures for investor review; no surprises flagged in headlines. PR Newswire: 10‑K Filing
• Negative Sentiment: Mizuho cut its price target from $17 to $16 and issued a neutral rating — this downgrade/target trim is a direct near-term negative catalyst that can pressure sentiment and weighing on the stock. Benzinga: Mizuho Note TickerReport: Mizuho
• Negative Sentiment: Payout ratio and leverage watch — management plans to distribute ~75% of cash available for distribution (CAD), with remaining CAD used to pay down revolver debt; the relatively high payout ratio means distributions and leverage will be sensitive to commodity/production swings. PR Newswire: Financial Details

Analyst Ratings Changes

KRP has been the subject of a number of research reports. Wall Street Zen upgraded shares of Kimbell Royalty from a “hold” rating to a “buy” rating in a research report on Sunday, December 21st. Zacks Research lowered Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 22nd. Mizuho dropped their price objective on shares of Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating for the company in a research note on Friday. KeyCorp reissued a “sector weight” rating on shares of Kimbell Royalty in a research note on Monday, November 24th. Finally, Citigroup lowered their target price on shares of Kimbell Royalty from $17.00 to $15.00 and set a “buy” rating for the company in a report on Monday, January 12th. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Kimbell Royalty has a consensus rating of “Hold” and an average target price of $15.60.

Kimbell Royalty Company Profile

Kimbell Royalty Partners LP (NYSE: KRP) is a mineral and royalty company focused on acquiring and managing oil and natural gas royalty interests in the United States. As a master limited partnership, Kimbell Royalty generates fee-like revenues by collecting royalties and overriding royalty interests on production volumes, without directly bearing the capital or operating costs of drilling and completion activities. The partnership’s business model emphasizes steady cash flows and limited downside exposure to commodity price fluctuations.

The company’s asset portfolio spans multiple onshore basins, with a core concentration in Texas and New Mexico.