📊 KRP Key Takeaways
Is Kimbell Royalty Partners, LP (KRP) a Good Investment?
KRP demonstrates solid fundamentals with exceptional free cash flow generation (74.9% FCF margin) and strong operating margins (24.1%), supported by modest revenue growth of 7.9% YoY. However, interest coverage of 2.2x is concerning in a commodity-dependent sector, and the negative diluted EPS despite profitability signals significant unit dilution, creating material risk if energy markets weaken.
Kimbell Royalty Partners’ capex-light royalty model converts modest revenue growth into strong operating profitability and exceptionally high free cash flow, with net income rebounding sharply year over year. Strong liquidity, modest leverage, and 18x interest coverage underpin resilience and capacity to sustain distributions through cycles. The EPS anomaly warrants review, but cash-based metrics remain robust.
Kimbell Royalty Partners, LP Key Strengths (KRP)
- Exceptional free cash flow generation with 74.9% FCF margin and minimal CapEx requirements ($335.4K) indicating capital-light business model
- Strong operating margins of 24.1% with 7.9% YoY revenue growth demonstrating pricing power and operational efficiency
- Excellent liquidity position with 5.12x current ratio and $49.4M operating cash flow providing financial flexibility
- Capex-light model driving a 73.7% FCF margin and strong OCF conversion
- Healthy balance sheet with ample liquidity and low long-term debt; 18.2x interest coverage
- Improving profitability with ~40% operating margin and ~30% net margin alongside YoY revenue growth
KRP Stock Risks: Kimbell Royalty Partners, LP Investment Risks
- Interest coverage ratio of 2.2x is tight for cyclical energy sector; vulnerability to rising rates or crude/natural gas price declines could strain debt service capacity
- Negative diluted EPS (-0.82) despite positive net income indicates significant unit dilution and distribution obligations, disadvantaging equity holders in partnership structure
- Very low ROA of 0.6% suggests capital inefficiency; exposure to commodity price volatility creates earnings unpredictability with limited asset turn
- High sensitivity to commodity prices impacting royalties and cash flow
- Volume/production decline and operator concentration risk inherent to royalty interests
- EPS diluted negative despite positive net income indicates accounting/allocation complexity
Key Metrics to Watch
- Interest coverage ratio trend and absolute debt service capacity during commodity price downturns
- Free cash flow sustainability relative to distribution obligations and unit dilution rates
- Operating margin resilience if crude oil and natural gas prices decline materially
- FCF margin and operating cash flow trajectory
- Interest coverage and net leverage
Kimbell Royalty Partners, LP (KRP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 74.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 5.12x current ratio provides a solid financial cushion.
KRP Profit Margin, ROE & Profitability Analysis
KRP vs Energy Sector: How Kimbell Royalty Partners, LP Compares
How Kimbell Royalty Partners, LP compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kimbell Royalty Partners, LP Stock Overvalued? KRP Valuation Analysis 2026
Based on fundamental analysis, Kimbell Royalty Partners, LP has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kimbell Royalty Partners, LP Balance Sheet: KRP Debt, Cash & Liquidity
KRP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kimbell Royalty Partners, LP's revenue has grown significantly by 832% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.82 indicates the company is currently unprofitable.
KRP Revenue Growth, EPS Growth & YoY Performance
KRP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $65.5M | $6.9M | N/A |
| Q3 2025 | $80.6M | $9.3M | N/A |
| Q2 2025 | $76.6M | $9.3M | N/A |
| Q1 2025 | $82.2M | $9.3M | N/A |
| Q3 2024 | $67.2M | $9.3M | N/A |
| Q2 2024 | $60.8M | $9.3M | N/A |
| Q1 2024 | $66.9M | $9.3M | N/A |
| Q3 2023 | $67.2M | $8.4M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kimbell Royalty Partners, LP Dividends, Buybacks & Capital Allocation
KRP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kimbell Royalty Partners, LP (CIK: 0001657788)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KRP
What is the AI rating for KRP?
Kimbell Royalty Partners, LP (KRP) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRP's key strengths?
Claude: Exceptional free cash flow generation with 74.9% FCF margin and minimal CapEx requirements ($335.4K) indicating capital-light business model. Strong operating margins of 24.1% with 7.9% YoY revenue growth demonstrating pricing power and operational efficiency. ChatGPT: Capex-light model driving a 73.7% FCF margin and strong OCF conversion. Healthy balance sheet with ample liquidity and low long-term debt; 18.2x interest coverage.
What are the risks of investing in KRP?
Claude: Interest coverage ratio of 2.2x is tight for cyclical energy sector; vulnerability to rising rates or crude/natural gas price declines could strain debt service capacity. Negative diluted EPS (-0.82) despite positive net income indicates significant unit dilution and distribution obligations, disadvantaging equity holders in partnership structure. ChatGPT: High sensitivity to commodity prices impacting royalties and cash flow. Volume/production decline and operator concentration risk inherent to royalty interests.
What is KRP's revenue and growth?
Kimbell Royalty Partners, LP reported revenue of $65.5M.
Does KRP pay dividends?
Kimbell Royalty Partners, LP does not currently pay dividends.
Where can I find KRP SEC filings?
Official SEC filings for Kimbell Royalty Partners, LP (CIK: 0001657788) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KRP's EPS?
Kimbell Royalty Partners, LP has a diluted EPS of $-0.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is KRP's fundamental grade?
Based on our AI fundamental analysis in May 2026, Kimbell Royalty Partners, LP has a A grade with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KRP stock overvalued or undervalued?
Valuation metrics for KRP: ROE of N/A (sector avg: 14%), net margin of 10.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is KRP's AI grade for 2026?
Our dual AI analysis gives Kimbell Royalty Partners, LP a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KRP's free cash flow?
Kimbell Royalty Partners, LP's operating cash flow is $49.4M, with capital expenditures of $335.4K. FCF margin is 74.9%.
How does KRP compare to other Energy stocks?
Vs Energy sector averages: Net margin 10.6% (avg: 12%), ROE N/A (avg: 14%), current ratio 5.12 (avg: 1.3).