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

Kimbell Royalty (NYSE:KRP) released its quarterly earnings results on Thursday. The energy company reported $0.12 EPS for the quarter, missing the consensus estimate 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 analyst estimates of $104.41 million. During the same quarter in the prior year, the company earned $0.19 earnings per share. The firm’s revenue for the quarter was up 7.1% compared to the same quarter last year.

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 midday trading on Friday, reaching $15.16. 872,586 shares of the stock were exchanged, compared to its average volume of 805,623. The company has a market capitalization of $1.74 billion, a P/E ratio of 19.68 and a beta of 0.38. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $17.12. The company has a current ratio of 7.30, a quick ratio of 7.30 and a debt-to-equity ratio of 0.71. The stock has a 50 day moving average price of $15.36 and a 200-day moving average price of $14.81.

Kimbell Royalty Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Monday, November 16th will be issued 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 is Monday, November 16th. Kimbell Royalty’s payout ratio is presently 223.81%.

Insider Buying and Selling at Kimbell Royalty

In related news, insider Blayne Rhynsburger sold 4,524 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 5.60% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

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