Kimbell Royalty Partners

KRP

Market cap $1.18B

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Kimbell Royalty Partners offers a high dividend yield. KRP's royalty model avoids typical upstream risks but lacks control over development pace. The Dallas Federal Reserve's latest survey signals upstream industry contraction and lower spending plans.

Kimbell Royalty Partners LP (KRP) offers a compelling 10.65% yield and diversified exposure to US oil and gas, with significant Permian exposure and natural gas assets. KRP's steady production, recent acquisitions, and resilient cash available for distribution support long-term value, despite recent sector weakness and higher leverage. Interest rate cuts and LNG growth are key catalysts for KRP going forward, potentially lowering debt costs and boosting demand for its high-yield units.

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Kimbell Royalty Partners, LP Common Units ( KRP ) Q3 2025 Earnings Call November 6, 2025 11:00 AM EST Company Participants Bob Ravnaas - Chairman of the Board & CEO of Kimbell Royalty GP LLC Davis Ravnaas - President & CFO of Kimbell Royalty GP LLC Matthew Daly - COO & Secretary of Kimbell Royalty GP LLC Conference Call Participants Rick Black - Dennard Lascar Associates, LLC Timothy Rezvan - KeyBanc Capital Markets Inc., Research Division Paul Diamond - Citigroup Inc., Research Division Noah Hungness - BofA Securities, Research Division Derrick Whitfield Presentation Operator Greetings, and welcome to the Kimbell Royalty Partners Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

Kimbell Royalty (KRP) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.22 per share a year ago.

Q3 2025 Run-Rate Daily Production of 25,530 Boe/d (6:1) Exceeds Mid-Point of Guidance Activity on Acreage Remains Robust with 86 Active Rigs Drilling Representing 16% 1  Market Share of U.S. Land Rig Count Announces Q3 2025 Cash Distribution of $0.35 per Common Unit FORT WORTH, Texas, Nov. 6, 2025 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and natural gas mineral and royalty interests in over 131,000 gross wells across 28 states, today announced financial and operating results for the quarter ended September 30, 2025.  Third Quarter 2025 Highlights Q3 2025 run-rate daily production of 25,530 barrels of oil equivalent ("Boe") per day (6:1) Q3 2025 oil, natural gas and NGL revenues of $76.8 million Q3 2025 net income of approximately $22.3 million and net income attributable to common units of approximately $17.0 million Q3 2025 consolidated Adjusted EBITDA of $62.3 million Cash G&A per BOE of $2.51 in Q3 2025, below mid-point of guidance reflecting operational discipline and positive operating leverage As of September 30, 2025, Kimbell's major properties2 had 7.07 net DUCs and net permitted locations on its acreage (4.30 net DUCs and 2.77 net permitted locations) compared to an estimated 6.5 net wells needed to maintain flat production As of September 30, 2025, Kimbell had 86 rigs actively drilling on its acreage, representing approximately 16% market share of all land rigs drilling in the continental United States as of such time Announced a Q3 2025 cash distribution of $0.35 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 10.7% annualized yield based on the November 5, 2025 closing price of $13.12 per common unit; Kimbell intends to utilize the remaining 25% of its cash available for distribution to repay a portion of the outstanding borrowings under Kimbell's secured revolving credit facility Kimbell affirms its financial and operational guidance ranges for 2025 previously disclosed in its Q4 2024 earnings release Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty GP, LLC, Kimbell's general partner (the "General Partner"), commented, "Even in the face of a general slowdown among U.S. oil and natural gas operators, Kimbell's production increased organically by approximately 1% between Q2 and Q3 2025, exceeding the midpoint of guidance and showing once again the resilience of our high quality, diversified and low decline production base.

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Kimbell Royalty Partners is rated a "Hold," due to price volatility, declining EPS, and solvency concerns, despite a high forward yield. KRP benefits from a large US energy market presence and a royalty-based business model, but faces risks from commodity price swings and operator activity. Financial metrics reveal a negative levered FCF margin, and declining dividend growth, raising questions about long-term stability.

Kimbell Royalty (KRP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.