Kimbell Royalty (NYSE:KRP) Raises Dividend to $0.41 Per Share

Kimbell Royalty (NYSE:KRP) announced a quarterly dividend on Thursday, May 7th. Investors of record on Tuesday, May 19th will be paid a dividend of 0.41 per share by the energy company on Wednesday, May 27th. This represents a c) dividend on an annualized basis and a yield of 11.3%. The ex-dividend date of this dividend is Tuesday, May 19th. This is a 10.8% increase from Kimbell Royalty’s previous quarterly dividend of $0.37.

Kimbell Royalty has raised its dividend by an average of 0.1%annually over the last three years. Kimbell Royalty has a dividend payout ratio of 104.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Kimbell Royalty to earn $0.79 per share next year, which means the company may not be able to cover its $1.48 annual dividend with an expected future payout ratio of 187.3%.

Kimbell Royalty Price Performance

KRP traded down $0.05 on Thursday, reaching $14.54. The company had a trading volume of 1,115,710 shares, compared to its average volume of 750,522. The business has a 50 day simple moving average of $14.56 and a 200 day simple moving average of $13.44. The company has a market cap of $1.57 billion, a price-to-earnings ratio of 23.45, a P/E/G ratio of 2.65 and a beta of 0.29. The company has a debt-to-equity ratio of 0.72, a quick ratio of 8.64 and a current ratio of 8.64. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.65.

Kimbell Royalty (NYSE:KRP) last released its quarterly earnings results on Thursday, May 7th. The energy company reported $0.04 EPS for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.19). The company had revenue of $65.54 million during the quarter, compared to analysts’ expectations of $90.25 million. Kimbell Royalty had a return on equity of 13.73% and a net margin of 26.43%.Kimbell Royalty’s quarterly revenue was down 6.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.20 EPS. As a group, sell-side analysts anticipate that Kimbell Royalty will post 1 EPS for the current year.

Insider Activity at Kimbell Royalty

In other news, insider Blayne Rhynsburger sold 6,609 shares of the business’s stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $14.48, for a total value of $95,698.32. Following the completion of the sale, the insider directly owned 75,163 shares in the company, valued at approximately $1,088,360.24. The trade was a 8.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 5.60% of the company’s stock.

Hedge Funds Weigh In On Kimbell Royalty

Institutional investors and hedge funds have recently made changes to their positions in the business. Van ECK Associates Corp purchased a new position in shares of Kimbell Royalty in the fourth quarter valued at about $6,604,000. Cubist Systematic Strategies LLC purchased a new stake in shares of Kimbell Royalty during the second quarter worth about $5,445,000. Adage Capital Partners GP L.L.C. grew its stake in shares of Kimbell Royalty by 32.1% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,210,948 shares of the energy company’s stock worth $14,241,000 after purchasing an additional 294,482 shares during the last quarter. CIBC Bancorp USA Inc. bought a new stake in shares of Kimbell Royalty in the third quarter worth about $3,472,000. Finally, American Century Companies Inc. increased its holdings in Kimbell Royalty by 9.2% during the 3rd quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company’s stock valued at $40,827,000 after purchasing an additional 255,688 shares during the period. Institutional investors own 25.78% of the company’s stock.

About Kimbell Royalty

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.