Kimbell Royalty (NYSE:KRP) Declares Dividend Increase - $0.41 Per Share

Key Points

• Kimbell Royalty declared a quarterly dividend of $0.41 per share (ex-dividend date May 19, payable May 27), a 10.8% increase from $0.37 that annualizes to an ~11.3% yield.
• The dividend's sustainability is in question: Kimbell reports a payout ratio of 104.2% and analysts expect $0.79 EPS next year, implying a potential payout ratio near 187% on the current annualized dividend.
• The company also missed quarterly expectations, reporting $0.04 EPS vs. $0.23 expected and revenue of $65.5M vs. $90.3M expected, with revenue down 6.7% year‑over‑year.

Kimbell Royalty (NYSE:KRP - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Shareholders of record on Tuesday, May 19th will be paid a dividend of 0.41 per share by the energy company on Wednesday, May 27th. This represents a c) dividend on an annualized basis and a yield of 11.3%. The ex-dividend date is Tuesday, May 19th. This is a 10.8% increase from Kimbell Royalty's previous quarterly dividend of $0.37.

Kimbell Royalty has increased its dividend payment by an average of 0.1%per year over the last three years. Kimbell Royalty has a dividend payout ratio of 104.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Kimbell Royalty to earn $0.79 per share next year, which means the company may not be able to cover its $1.48 annual dividend with an expected future payout ratio of 187.3%.

Kimbell Royalty Stock Performance

Shares of KRP traded down $0.05 during trading hours on Thursday, hitting $14.54. The company's stock had a trading volume of 1,115,710 shares, compared to its average volume of 750,522. The business has a 50 day simple moving average of $14.56 and a two-hundred day simple moving average of $13.44. Kimbell Royalty has a 52-week low of $11.31 and a 52-week high of $15.65. The company has a debt-to-equity ratio of 0.72, a current ratio of 8.64 and a quick ratio of 8.64. The company has a market cap of $1.57 billion, a price-to-earnings ratio of 23.45, a PEG ratio of 2.65 and a beta of 0.29.

Kimbell Royalty (NYSE:KRP - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The energy company reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.19). The business had revenue of $65.54 million for the quarter, compared to analysts' expectations of $90.25 million. Kimbell Royalty had a net margin of 26.43% and a return on equity of 13.73%. The business's quarterly revenue was down 6.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.20 earnings per share. On average, equities analysts expect that Kimbell Royalty will post 1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Kimbell Royalty news, insider Blayne Rhynsburger sold 6,609 shares of the stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $14.48, for a total value of $95,698.32. Following the sale, the insider directly owned 75,163 shares in the company, valued at $1,088,360.24. This represents a 8.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 5.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Nordea Investment Management AB boosted its stake in Kimbell Royalty by 18.3% during the fourth quarter. Nordea Investment Management AB now owns 220,716 shares of the energy company's stock valued at $2,585,000 after buying an additional 34,175 shares during the period. GraniteShares Advisors LLC increased its stake in Kimbell Royalty by 20.9% in the 4th quarter. GraniteShares Advisors LLC now owns 228,676 shares of the energy company's stock worth $2,689,000 after acquiring an additional 39,510 shares during the last quarter. Freestone Capital Holdings LLC increased its stake in Kimbell Royalty by 81.7% in the 4th quarter. Freestone Capital Holdings LLC now owns 181,693 shares of the energy company's stock worth $2,137,000 after acquiring an additional 81,693 shares during the last quarter. Truist Financial Corp raised its holdings in shares of Kimbell Royalty by 53.6% in the 3rd quarter. Truist Financial Corp now owns 120,363 shares of the energy company's stock valued at $1,624,000 after acquiring an additional 42,002 shares in the last quarter. Finally, American Century Companies Inc. raised its holdings in shares of Kimbell Royalty by 9.2% in the 3rd quarter. American Century Companies Inc. now owns 3,026,429 shares of the energy company's stock valued at $40,827,000 after acquiring an additional 255,688 shares in the last quarter. 25.78% of the stock is currently owned by hedge funds and other institutional investors.

About Kimbell Royalty

Kimbell Royalty Partners LP NYSE: KRP is a mineral and royalty company focused on acquiring and managing oil and natural gas royalty interests in the United States. As a master limited partnership, Kimbell Royalty generates fee-like revenues by collecting royalties and overriding royalty interests on production volumes, without directly bearing the capital or operating costs of drilling and completion activities. The partnership's business model emphasizes steady cash flows and limited downside exposure to commodity price fluctuations.

The company's asset portfolio spans multiple onshore basins, with a core concentration in Texas and New Mexico.

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