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

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

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 Trading Up 0.9%

Shares of NYSE:KRP traded up $0.13 on Friday, reaching $15.16. 872,586 shares of the company traded hands, compared to its average volume of 805,623. The business’s 50-day simple moving average is $15.36 and its 200 day simple moving average is $14.81. Kimbell Royalty has a 52 week low of $11.31 and a 52 week high of $17.12. The stock has a market capitalization of $1.74 billion, a P/E ratio of 19.68 and a beta of 0.38. The company has a current ratio of 7.30, a quick ratio of 7.30 and a debt-to-equity ratio of 0.71.

Kimbell Royalty Cuts Dividend

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

Insider Activity at Kimbell Royalty

In other news, insider Blayne Rhynsburger sold 4,524 shares of Kimbell Royalty stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $15.08, for a total value of $68,221.92. Following the transaction, the insider owned 70,639 shares in the company, valued at approximately $1,065,236.12. The trade was a 6.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 5.60% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Weiss Ratings upgraded Kimbell Royalty from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, October 13th. KeyCorp increased their price objective on Kimbell Royalty from $17.00 to $18.00 and gave the company an “overweight” rating in a research report on Tuesday, September 15th. Wall Street Zen raised Kimbell Royalty from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Finally, Zacks Research raised Kimbell Royalty from a “hold” rating to a “strong-buy” rating in a report on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average target price 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.