Kimbell Royalty (NYSE:KRP) Shareholders Set to Receive $0.07 Quarterly Dividend

Key Points

• Kimbell Royalty declared a $0.07 quarterly dividend, payable December 15 to shareholders of record November 16. That equals $0.28 annually, a 1.9% yield, and an 85.1% cut from the prior $0.47 quarterly payment.
• The dividend appears difficult to sustain: the payout ratio is 132.4%, and analysts’ projected earnings imply a future payout ratio of 169.4% against the stated $1.88 annual dividend.
• Kimbell reported quarterly EPS of $0.12, below the $0.25 consensus, and revenue of $86.33 million, below the $104.41 million estimate. Analysts nevertheless had an average “Buy” rating and an $18.25 consensus price target.

Kimbell Royalty (NYSE:KRP - Get Free Report) declared a quarterly dividend on Thursday, November 5th. Investors of record on Monday, November 16th will be given a dividend of $0.07 per share by the energy company on Tuesday, December 15th. This represents a $0.28 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Monday, November 16th. This is a 85.1% decrease from Kimbell Royalty's previous quarterly dividend of $0.47.

Kimbell Royalty has increased its dividend by an average of 0.1% annually over the last three years. Kimbell Royalty has a dividend payout ratio of 132.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Kimbell Royalty to earn $1.11 per share next year, which means the company may not be able to cover its $1.88 annual dividend with an expected future payout ratio of 169.4%.

Kimbell Royalty Stock Performance

KRP stock traded down $0.44 during trading on Thursday, hitting $15.04. 1,435,202 shares of the company's stock traded hands, compared to its average volume of 807,511. The stock has a market capitalization of $1.73 billion, a price-to-earnings ratio of 17.90 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 stock has a fifty day moving average price of $15.36 and a two-hundred day moving average price of $14.78. The company has a quick ratio of 7.30, a current ratio of 7.30 and a debt-to-equity ratio of 0.71.

Kimbell Royalty (NYSE:KRP - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The energy company reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.13). The company had revenue of $86.33 million during the quarter, compared to the consensus estimate of $104.41 million. Kimbell Royalty had a return on equity of 14.95% and a net margin of 27.17%. The company's revenue for the quarter was up 7.1% on a year-over-year basis. During the same period last year, the business posted $0.19 EPS. As a group, equities analysts anticipate that Kimbell Royalty will post 1.10 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

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

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