Kimbell Royalty (NYSE:KRP) Board Declares Share Repurchase Program

Kimbell Royalty (NYSE:KRP) declared that its board has approved a share repurchase program on Monday, March 9th, RTT News reports. The company plans to repurchase $100.00 million in shares. This repurchase authorization allows the energy company to reacquire up to 6.4% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Kimbell Royalty Stock Performance

NYSE KRP traded down $0.12 on Monday, hitting $14.28. The stock had a trading volume of 1,116,643 shares, compared to its average volume of 623,310. The company has a quick ratio of 8.64, a current ratio of 8.64 and a debt-to-equity ratio of 0.72. The company’s 50-day moving average is $13.28 and its two-hundred day moving average is $13.15. The stock has a market cap of $1.54 billion, a price-to-earnings ratio of 23.03, a P/E/G ratio of 3.64 and a beta of 0.30. Kimbell Royalty has a one year low of $10.98 and a one year high of $15.12.

Kimbell Royalty (NYSE:KRP) last posted its earnings results on Thursday, February 26th. The energy company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.14 by $0.07. The firm 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 13.73% and a net margin of 26.43%.The firm’s revenue was up 23.7% compared to the same quarter last year. During the same period last year, the firm earned ($0.48) EPS. On average, analysts expect that Kimbell Royalty will post 0.65 earnings per share for the current year.

Kimbell Royalty Increases Dividend

The firm also recently declared 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. This represents a $1.48 dividend on an annualized basis and a dividend yield of 10.4%. This is a positive change from Kimbell Royalty’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Wednesday, March 18th. Kimbell Royalty’s dividend payout ratio is 225.81%.

Analysts Set New Price Targets

Several research firms have weighed in on KRP. Weiss Ratings upgraded shares of Kimbell Royalty from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, February 2nd. Wall Street Zen lowered shares of Kimbell Royalty from a “buy” rating to a “hold” rating in a report on Saturday. Zacks Research downgraded shares of Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a research 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 on the stock in a research note on Friday, February 27th. Finally, Citigroup cut their target price on shares of Kimbell Royalty from $17.00 to $15.00 and set a “buy” rating on the stock in a report on Monday, January 12th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $16.00.

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.