Kimbell Royalty (NYSE:KRP) Issues Quarterly Earnings Results

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

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 Stock Performance

Shares of KRP traded up $0.44 during trading hours on Friday, hitting $14.95. The stock had a trading volume of 2,349,850 shares, compared to its average volume of 651,996. The company has a debt-to-equity ratio of 0.77, a quick ratio of 5.12 and a current ratio of 5.12. The firm has a 50-day moving average price of $14.88 and a 200 day moving average price of $14.55. Kimbell Royalty has a fifty-two week low of $11.31 and a fifty-two week high of $15.80. The firm has a market capitalization of $1.61 billion, a price-to-earnings ratio of 32.51 and a beta of 0.30.

Kimbell Royalty Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 24th. Investors of record on Monday, August 17th will be paid a $0.47 dividend. The ex-dividend date 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 (DPR) is presently 356.52%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hsbc Holdings PLC acquired a new position in shares of Kimbell Royalty in the fourth quarter worth about $183,000. Virtu Financial LLC purchased a new position in shares of Kimbell Royalty in the 4th quarter valued at about $210,000. Beacon Pointe Advisors LLC increased its stake in shares of Kimbell Royalty by 14.7% in the 4th quarter. Beacon Pointe Advisors LLC now owns 152,009 shares of the energy company’s stock valued at $1,788,000 after purchasing an additional 19,428 shares in the last quarter. Regal Partners Ltd acquired a new position in Kimbell Royalty in the 4th quarter worth about $1,329,000. Finally, XTX Topco Ltd purchased a new stake in shares of Kimbell Royalty in the fourth quarter valued at approximately $1,583,000. Hedge funds and other institutional investors own 25.78% of the company’s stock.

Key Headlines Impacting Kimbell Royalty

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.

Analyst Upgrades and Downgrades

KRP has been the subject of a number of research reports. Weiss Ratings downgraded Kimbell Royalty from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, May 14th. Royal Bank Of Canada started coverage on shares of Kimbell Royalty in a research report on Friday, May 29th. They set an “outperform” rating and a $20.00 target price for the company. Finally, Zacks Research lowered shares of Kimbell Royalty from a “hold” rating to a “strong sell” rating in a report on Monday. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Kimbell Royalty has a consensus rating of “Hold” and a consensus target price of $18.00.

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.