Kimbell Royalty (NYSE:KRP) Posts Earnings Results, Misses Expectations By $0.13 EPS

Kimbell Royalty (NYSE:KRP) announced its quarterly earnings data on Thursday. The energy company reported $0.12 earnings per share (EPS) 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 business had revenue of $86.33 million during the quarter, compared to analysts’ expectations of $104.41 million. During the same period last year, the company posted $0.19 EPS. Kimbell Royalty’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 during trading on Friday, reaching $15.16. 872,586 shares of the company traded hands, compared to its average volume of 805,623. 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 has a 52-week low of $11.31 and a 52-week high of $17.12. The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of 19.68 and a beta of 0.38. The business’s fifty day moving average is $15.36 and its 200-day moving average is $14.81.

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 drop 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 currently 223.81%.

Insider Activity at Kimbell Royalty

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

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. KeyCorp boosted 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 upgraded shares of Kimbell Royalty from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 30th. Weiss Ratings raised Kimbell Royalty from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, October 13th. Finally, Wall Street Zen raised Kimbell Royalty from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company 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.