Kimbell Royalty (NYSE:KRP) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

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

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 Trading Up 3.1%

Shares of KRP stock opened at $14.95 on Friday. The company has a quick ratio of 5.12, a current ratio of 5.12 and a debt-to-equity ratio of 0.77. The firm has a market cap of $1.61 billion, a P/E ratio of 17.80 and a beta of 0.30. The company has a 50 day moving average of $14.88 and a 200-day moving average of $14.55. Kimbell Royalty has a 12-month low of $11.31 and a 12-month high of $15.80.

Kimbell Royalty Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 24th. Stockholders of record on Monday, August 17th will be paid a dividend of $0.47 per share. This represents a $1.88 annualized dividend and a dividend yield of 12.6%. The ex-dividend date is Monday, August 17th. This is an increase from Kimbell Royalty’s previous quarterly dividend of $0.41. Kimbell Royalty’s dividend payout ratio (DPR) is 195.24%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Weiss Ratings downgraded Kimbell Royalty from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, May 14th. Royal Bank Of Canada began coverage on Kimbell Royalty in a report on Friday, May 29th. They set an “outperform” rating and a $20.00 price target on the stock. Finally, Zacks Research cut Kimbell Royalty from a “hold” rating to a “strong sell” rating in a research report on Monday, August 3rd. Three 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. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $18.00.

Hedge Funds Weigh In On Kimbell Royalty

Institutional investors and hedge funds have recently bought and sold shares of the company. Adage Capital Partners GP L.L.C. raised its stake in shares of Kimbell Royalty by 32.1% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,210,948 shares of the energy company’s stock valued at $14,241,000 after buying an additional 294,482 shares during the period. Energy Income Partners LLC grew its stake in shares of Kimbell Royalty by 12.3% during the 3rd quarter. Energy Income Partners LLC now owns 647,396 shares of the energy company’s stock worth $8,733,000 after acquiring an additional 70,783 shares during the period. Pin Oak Investment Advisors Inc. grew its stake in shares of Kimbell Royalty by 0.9% during the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 618,128 shares of the energy company’s stock worth $8,339,000 after acquiring an additional 5,213 shares during the period. Vanguard Group Inc. increased its holdings in Kimbell Royalty by 4.3% in the 3rd quarter. Vanguard Group Inc. now owns 596,903 shares of the energy company’s stock worth $8,052,000 after acquiring an additional 24,419 shares during the last quarter. Finally, Van ECK Associates Corp bought a new stake in Kimbell Royalty in the 4th quarter valued at about $6,604,000. 25.78% of the stock is owned by institutional investors.

Key Kimbell Royalty News

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.

Kimbell Royalty Company Profile

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.