Kimbell Royalty (NYSE:KRP) Issues Quarterly Earnings Results

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

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 Trading Up 2.6%

KRP traded up $0.37 during trading on Thursday, reaching $14.50. The company had a trading volume of 844,582 shares, compared to its average volume of 543,433. The company has a quick ratio of 5.39, a current ratio of 5.39 and a debt-to-equity ratio of 0.72. The business has a 50 day simple moving average of $12.87 and a 200-day simple moving average of $13.14. The stock has a market cap of $1.56 billion, a P/E ratio of -207.14, a PEG ratio of 3.58 and a beta of 0.34. Kimbell Royalty has a 52 week low of $10.98 and a 52 week high of $15.59.

Key Kimbell Royalty News

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

• Positive Sentiment: Q4 results beat consensus — GAAP EPS $0.21 vs $0.14 estimate and revenue $82.45M vs $76.78M; revenue grew ~24% year-over-year and adjusted EBITDA and net income were solid, supporting visibility on cash flow. Read More.
• Positive Sentiment: Operational strength — run?rate production ~25,627 Boe/d, proved developed reserves up ~8% to ~73M Boe, and 85 rigs active on Kimbell acreage (16% of U.S. land rig count), indicating resilient production and low decline rates. Read More.
• Positive Sentiment: Distribution and capital allocation — declared Q4 cash distribution of $0.37/unit (up 6% QoQ) with a 75% payout ratio; company will use remaining cash to pay down borrowings, supporting balance?sheet improvement. Read More.
• Positive Sentiment: Lowered borrowing costs and extended revolver — amended secured revolving credit facility extended to Dec 16, 2030, reaffirmed $625M borrowing base and reduced bank debt cost by ~35 bps, improving financing flexibility. Read More.
• Positive Sentiment: Analyst support — TD Cowen/other coverage reiterated a constructive view (buy rating) citing resilient production, capital?light reserve growth and attractive free cash flow yield, which can boost investor demand. Read More.
• Neutral Sentiment: Regulatory filing — Kimbell filed its 2025 Form 10?K (routine disclosure; useful for deeper due-diligence but not a market mover by itself). Read More.
• Neutral Sentiment: Investor materials available — earnings call transcript, slide deck and conference call recording were posted for details and management commentary that investors may use to assess guidance and capital plans. Read More. | Read More.

Institutional Trading of Kimbell Royalty

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Marex Group plc bought a new position in shares of Kimbell Royalty during the fourth quarter valued at approximately $118,000. Squarepoint Ops LLC purchased a new position in Kimbell Royalty during the 4th quarter valued at $120,000. Quadrature Capital Ltd bought a new position in Kimbell Royalty in the 4th quarter valued at $134,000. Westwood Holdings Group Inc. purchased a new stake in Kimbell Royalty in the second quarter worth $140,000. Finally, Virtus Advisers LLC lifted its position 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 purchasing an additional 4,229 shares during the last quarter. 25.78% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

KRP has been the topic of a number of research reports. Zacks Research downgraded shares of Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 22nd. Citigroup decreased their target price on Kimbell Royalty from $17.00 to $15.00 and set a “buy” rating on the stock in a research report on Monday, January 12th. Wall Street Zen upgraded Kimbell Royalty from a “hold” rating to a “buy” rating in a report on Sunday, December 21st. Weiss Ratings raised Kimbell Royalty from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, February 2nd. Finally, KeyCorp reaffirmed a “sector weight” rating on shares of Kimbell Royalty in a report on Monday, November 24th. One investment analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Kimbell Royalty has a consensus rating of “Hold” and an average price target of $15.80.

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.