Kimbell Royalty (NYSE:KRP) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

by · The Markets Daily

Kimbell Royalty (NYSE:KRP – Get Free Report) issued its quarterly earnings data on Thursday. The energy company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07, Briefing.com reports. The business had revenue of $82.45 million for the quarter, compared to analysts’ expectations of $76.78 million. Kimbell Royalty had a net margin of 10.66% and a return on equity of 12.51%. The company’s revenue 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 Trading Up 1.7%

Shares of NYSE:KRP traded up $0.25 during mid-day trading on Thursday, hitting $14.38. The stock had a trading volume of 428,518 shares, compared to its average volume of 617,215. Kimbell Royalty has a 12-month low of $10.98 and a 12-month high of $15.59. The company has a debt-to-equity ratio of 0.72, a quick ratio of 5.39 and a current ratio of 5.39. The company has a market cap of $1.55 billion, a PE ratio of -205.40, a P/E/G ratio of 3.58 and a beta of 0.34. The company’s 50 day moving average is $12.81 and its 200-day moving average is $13.13.

Institutional Investors Weigh In On Kimbell Royalty

Hedge funds have recently bought and sold shares of the business. Hilltop Holdings Inc. raised its holdings in shares of Kimbell Royalty by 37.1% during the fourth quarter. Hilltop Holdings Inc. now owns 24,000 shares of the energy company’s stock worth $282,000 after acquiring an additional 6,500 shares in the last quarter. Wedbush Securities Inc. grew its stake in Kimbell Royalty by 5.2% in the fourth quarter. Wedbush Securities Inc. now owns 21,177 shares of the energy company’s stock valued at $249,000 after purchasing an additional 1,046 shares in the last quarter. Centaurus Financial Inc. increased its position in Kimbell Royalty by 5.0% in the 3rd quarter. Centaurus Financial Inc. now owns 17,999 shares of the energy company’s stock worth $243,000 after purchasing an additional 852 shares during the last quarter. Virtu Financial LLC acquired a new stake in shares of Kimbell Royalty during the 4th quarter valued at about $210,000. Finally, Ruggaard & Associates LLC grew its stake in shares of Kimbell Royalty by 8.1% in the 2nd quarter. Ruggaard & Associates LLC now owns 12,740 shares of the energy company’s stock valued at $178,000 after buying an additional 950 shares in the last quarter. 25.78% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Zacks Research cut shares of Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 22nd. Wall Street Zen raised Kimbell Royalty from a “hold” rating to a “buy” rating in a research note on Sunday, December 21st. KeyCorp restated a “sector weight” rating on shares of Kimbell Royalty in a report on Monday, November 24th. Mizuho raised their target price on Kimbell Royalty from $16.00 to $17.00 and gave the company a “neutral” rating in a research note on Friday, December 12th. Finally, Citigroup reduced their price objective on shares of Kimbell Royalty from $17.00 to $15.00 and set a “buy” rating for the company in a research report on Monday, January 12th. One research analyst has rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $15.80.

View Our Latest Analysis on KRP

Kimbell Royalty Company Profile

(Get Free Report)

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.

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