Kimbell Royalty (NYSE:KRP) Announces Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Kimbell Royalty (NYSE:KRP) posted its quarterly earnings results on Thursday. The energy company reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.13), FiscalAI reports. The business had revenue of $86.33 million for the quarter, compared to analyst estimates of $104.41 million. Kimbell Royalty had a net margin of 25.39% and a return on equity of 14.25%. The firm’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.19 earnings per share.

Here are the key takeaways from Kimbell Royalty’s conference call:

• Kimbell reported record daily production of 27,565 BOE per day, up 7% sequentially, and record line-of-sight wells. Activity also strengthened, with 93 rigs drilling on its acreage at quarter-end.
• The company declared a third-quarter distribution of $0.45 per common unit, equivalent to an approximately 11% annualized tax-advantaged yield; about 76% is expected to be treated as return of capital.
• Kimbell has closed $367 million in acquisitions since June, which management says are expected to be immediately accretive to cash available for distribution per unit. The credit facility borrowing base and commitments rose to $750 million, while net debt was about 1.5 times trailing Adjusted EBITDA at quarter-end.
• Management expects higher oil prices to boost fourth-quarter cash flow, noting that approximately 84% of estimated fourth-quarter oil production is unhedged. It also cited strong drilling visibility and new permits as potential support for future production, though timing remains uncertain.

Kimbell Royalty Stock Up 0.9%

Shares of NYSE:KRP traded up $0.13 on Friday, reaching $15.16. The company had a trading volume of 872,586 shares, compared to its average volume of 805,623. The stock has a market capitalization of $1.74 billion, a P/E ratio of 19.68 and a beta of 0.38. The stock has a 50-day moving average price of $15.36 and a 200 day moving average price of $14.81. Kimbell Royalty has a twelve month low of $11.31 and a twelve month high of $17.12. The company has a quick ratio of 7.30, a current ratio of 7.30 and a debt-to-equity ratio of 0.71.

Kimbell Royalty Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Monday, November 16th will be given a $0.45 dividend. This is a decrease from Kimbell Royalty’s previous quarterly dividend of $0.47. This represents a $1.80 dividend on an annualized basis and a dividend yield of 11.9%. The ex-dividend date of this dividend is Monday, November 16th. Kimbell Royalty’s payout ratio is presently 223.81%.

Insider Activity at Kimbell Royalty

In other news, insider Blayne Rhynsburger sold 4,524 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $15.08, for a total transaction of $68,221.92. Following the transaction, the insider owned 70,639 shares of the company’s stock, valued at approximately $1,065,236.12. This represents a 6.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 5.60% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have recently weighed in on KRP. KeyCorp upped their price target on shares of Kimbell Royalty from $17.00 to $18.00 and gave the stock an “overweight” rating in a research note on Tuesday, September 15th. Zacks Research raised Kimbell Royalty from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 30th. Wall Street Zen raised shares of Kimbell Royalty from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Finally, Weiss Ratings upgraded shares of Kimbell Royalty from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Kimbell Royalty presently has a consensus rating of “Buy” and a consensus price target of $18.25.

Kimbell Royalty Company Profile

Kimbell Royalty Partners, LP (NYSE: KRP) is a publicly traded oil and natural gas mineral and royalty company. It owns mineral, royalty, overriding royalty, and non-operated working interests in producing and undeveloped properties across the onshore United States.

The partnership generates revenue primarily from its share of oil, natural gas, and natural gas liquids produced from properties operated by third-party exploration and production companies. Its asset base is concentrated in major U.S.