Kimbell Royalty (NYSE:KRP) Announces Earnings Results

Kimbell Royalty (NYSE:KRP) posted its earnings results on Thursday. The energy company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.07, Briefing.com reports. The company had revenue of $82.45 million for the quarter, compared to the consensus estimate of $76.78 million. Kimbell Royalty had a return on equity of 13.53% and a net margin of 26.43%.The firm’s revenue for the quarter was up 23.7% on a year-over-year basis. During the same period in the previous year, the business 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 1.1%

Shares of KRP traded down $0.16 during midday trading on Friday, hitting $14.34. The company had a trading volume of 770,766 shares, compared to its average volume of 549,960. The company has a debt-to-equity ratio of 0.72, a quick ratio of 5.39 and a current ratio of 5.39. Kimbell Royalty has a 1 year low of $10.98 and a 1 year high of $15.35. The firm has a market capitalization of $1.55 billion, a P/E ratio of 23.14, a P/E/G ratio of 3.67 and a beta of 0.34. The company’s 50-day simple moving average is $12.93 and its 200-day simple moving average is $13.14.

Kimbell Royalty Increases Dividend

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

Kimbell Royalty News Summary

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

• Positive Sentiment: Q4 results beat expectations — EPS of $0.21 vs. $0.14 consensus and revenue of $82.45M, with revenue up ~24% year-over-year and solid adjusted EBITDA and net income metrics, supporting near-term cash flow strength. Kimbell Royalty (KRP) Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Dividend raised to $0.37 per share (announced Feb 26) — a ~5.7% quarter-over-quarter increase, implying a >10% yield at recent prices; this makes KRP attractive to income-focused investors and signals management confidence in distributable cash flow. Kimbell Royalty Partners Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Operational and balance-sheet highlights — proved developed reserves rose ~8% to ~73M Boe; run-rate production ~25.6k Boe/d; credit facility was extended and borrowing costs lowered, improving liquidity and reducing financing risk. These support stable distributions and future reserve-driven cash flow. Kimbell Royalty Partners Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: At least one analyst (TD Cowen) reaffirmed a constructive view, highlighting resilient production and strong free-cash-flow yield — an offset to the bearish datapoint below. Kimbell Royalty Partners: Resilient Production and Capital‑Light Reserve Growth Support Buy Rating
• Neutral Sentiment: 10-K filed for FY2025 — provides detailed financials and reserve disclosures (useful for due diligence; no surprise items flagged in headlines). Kimbell Royalty Partners Announces Filing of 2025 Annual Report on Form 10-K
• Neutral Sentiment: Earnings call transcript and highlights are available (Yahoo Finance, Seeking Alpha, The Motley Fool) — useful for color on operations and 2026 guidance, but they largely reinforce the press release. Kimbell Royalty Partners LP (KRP) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Coverage in dividend-focused roundups may attract yield-seeking flows, but also increases sensitivity to distribution sustainability scrutiny. Wall Street’s Most Accurate Analysts Give Their Take On 3 Energy Stocks With Over 8% Dividend Yields
• Negative Sentiment: Mizuho cut its price target from $17 to $16 and moved to a neutral rating — reduces analyst-driven upside and likely pressured the stock despite operational positives. Mizuho Lowers Price Target for Kimbell Royalty

Analyst Ratings Changes

Several research analysts recently commented on the stock. Citigroup reduced their price target on shares of Kimbell Royalty from $17.00 to $15.00 and set a “buy” rating on the stock in a research note on Monday, January 12th. Zacks Research lowered shares of Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 22nd. Wall Street Zen raised shares of Kimbell Royalty from a “hold” rating to a “buy” rating in a report on Sunday, December 21st. Mizuho lowered their price target on Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating for the company in a research report on Friday. Finally, KeyCorp reiterated a “sector weight” rating on shares of Kimbell Royalty in a research report on Monday, November 24th. One research analyst has rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $15.60.

Institutional Investors Weigh In On Kimbell Royalty

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

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.