Kimbell Royalty (NYSE:KRP) Issues Quarterly Earnings Results

Kimbell Royalty (NYSE:KRP) announced its earnings results on Friday. The energy company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.17, FiscalAI reports. Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. The company had revenue of $112.48 million during the quarter, compared to analysts’ expectations of $93.45 million. During the same quarter in the previous year, the business posted $0.02 earnings per share. The firm’s quarterly revenue was up 29.9% compared to the same quarter last year.

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

• Record second-quarter results: Oil, natural gas and NGL revenue exceeded $100 million, while adjusted EBITDA reached a record $84.9 million and production averaged 25,830 BOE per day.
• Kimbell declared a $0.47 per-unit distribution, up 15% sequentially, representing 75% of cash available for distribution; the company also repurchased 500,000 common units for approximately $7.4 million.
• The Mesa Royalties acquisition is contributing to results, and a newly announced drop-down acquisition is expected to close later in August; management expects both transactions to support production and cash-flow growth.
• The company affirmed its 2026 guidance for now but plans to update it after the drop-down closes. Management cited robust activity on its acreage, including 91 rigs at quarter-end and a backlog of wells above maintenance needs.
• Acquisition competition remains intense, particularly for Permian-only packages, where management said recent bids were nearly twice Kimbell’s levels; weaker natural-gas prices also contributed to a decline in Mid-Continent activity and lower Haynesville production.

Kimbell Royalty Trading Up 3.1%

Shares of NYSE KRP traded up $0.44 during midday trading on Friday, reaching $14.95. 2,349,850 shares of the stock were exchanged, compared to its average volume of 651,996. The company has a market capitalization of $1.61 billion, a P/E ratio of 32.51 and a beta of 0.30. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.80. The company has a current ratio of 5.12, a quick ratio of 5.12 and a debt-to-equity ratio of 0.77. The stock has a 50 day moving average price of $14.88 and a 200-day moving average price of $14.55.

Kimbell Royalty Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, August 17th will be paid a dividend of $0.47 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $1.88 annualized dividend and a dividend yield of 12.6%. This is an increase from Kimbell Royalty’s previous quarterly dividend of $0.41. Kimbell Royalty’s dividend payout ratio is 223.81%.

Kimbell Royalty News Summary

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

• Positive Sentiment: Quarterly earnings beat expectations: Kimbell reported second-quarter earnings of $0.40 per common unit, versus the $0.23 consensus estimate, while revenue reached $112.5 million, exceeding forecasts of $93.5 million. Revenue increased 29.9% year over year, compared with $0.02 per unit in the prior-year quarter. Kimbell Royalty Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Record operating performance: Oil, natural gas and NGL revenue totaled $103.0 million, adjusted EBITDA was a record $84.9 million, and daily production averaged 25,830 barrels of oil equivalent. Production benefited from the Mesa Royalties acquisition, which closed in June and lifted the estimated run rate to 26,967 Boe per day. Kimbell Royalty Partners Announces Record Second Quarter 2026 Results
• Positive Sentiment: Distribution increased: Kimbell declared a $0.47-per-unit quarterly distribution, up approximately 15% from $0.41, implying an annualized yield near 13% based on the recent closing price. The distribution represents a 75% payout of cash available for distribution, with the remainder intended for debt repayment. Kimbell Royalty Posts Record Q2 Results, Hikes Distribution
• Positive Sentiment: Balance-sheet and capital-return support: The company’s credit-facility borrowing base and commitments rose to $660 million from $625 million, and Kimbell repurchased 500,000 common units for about $7.4 million. Robust drilling activity, with 91 rigs operating on its acreage, also supports future royalty production.
• Neutral Sentiment: Kimbell affirmed its previously issued 2026 financial and operating guidance, but expects to update it after the planned Drop Down acquisition closes. Investors should monitor commodity prices, acquisition execution and leverage as factors that could affect future distributions.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on KRP. Royal Bank Of Canada initiated coverage on shares of Kimbell Royalty in a research note on Friday, May 29th. They set an “outperform” rating and a $20.00 price objective for the company. Weiss Ratings lowered Kimbell Royalty from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, May 14th. Finally, Zacks Research cut Kimbell Royalty from a “hold” rating to a “strong sell” rating in a report on Monday, August 3rd. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $18.00.

Hedge Funds Weigh In On Kimbell Royalty

Institutional investors and hedge funds have recently modified their holdings of the company. Westwood Holdings Group Inc. purchased a new stake in Kimbell Royalty in the 2nd quarter worth approximately $140,000. Marex Group plc acquired a new stake in shares of Kimbell Royalty during the fourth quarter worth $118,000. Squarepoint Ops LLC acquired a new stake in shares of Kimbell Royalty during the fourth quarter worth $120,000. Quadrature Capital Ltd acquired a new stake in shares of Kimbell Royalty during the fourth quarter worth $134,000. Finally, Lazard Asset Management LLC grew its position in shares of Kimbell Royalty by 53.4% in the second quarter. Lazard Asset Management LLC now owns 11,422 shares of the energy company’s stock valued at $159,000 after purchasing an additional 3,976 shares during the period. Hedge funds and other institutional investors own 25.78% of the company’s stock.

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.