Kimbell Royalty (NYSE:KRP) to Issue Dividend Increase - $0.47 Per Share

Key Points

• Kimbell Royalty announced a quarterly dividend of $0.47 per share, payable August 24 to shareholders of record on August 17. The payment is a 14.6% increase from the previous $0.41 dividend and implies a 12.6% annualized yield.
• The dividend may be financially difficult to sustain: Kimbell’s payout ratio is 115.5%, while analysts expect next year’s earnings to cover only about 51% of its projected $1.64 annual dividend.
• Kimbell reported quarterly earnings of $0.40 per share, exceeding estimates of $0.23, while revenue rose 29.9% year over year to $112.48 million. Its stock gained 3.1% to $14.95 during Friday trading.

Kimbell Royalty (NYSE:KRP - Get Free Report) announced a quarterly dividend on Friday, August 7th. Investors of record on Monday, August 17th will be given a dividend of 0.47 per share by the energy company on Monday, August 24th. This represents a c) annualized dividend and a yield of 12.6%. The ex-dividend date is Monday, August 17th. This is a 14.6% increase from Kimbell Royalty's previous quarterly dividend of $0.41.

Kimbell Royalty has increased its dividend by an average of 0.1%annually over the last three years. Kimbell Royalty has a payout ratio of 115.5% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Kimbell Royalty to earn $0.83 per share next year, which means the company may not be able to cover its $1.64 annual dividend with an expected future payout ratio of 197.6%.

Kimbell Royalty Stock Up 3.1%

NYSE:KRP traded up $0.44 during mid-day trading on Friday, hitting $14.95. 2,349,850 shares of the company's stock were exchanged, compared to its average volume of 761,843. The company has a market cap of $1.61 billion, a PE ratio of 32.51 and a beta of 0.30. The company has a debt-to-equity ratio of 0.77, a current ratio of 5.12 and a quick ratio of 5.12. Kimbell Royalty has a one year low of $11.31 and a one year high of $15.80. The business has a fifty day moving average price of $14.88 and a 200 day moving average price of $14.54.

Kimbell Royalty (NYSE:KRP - Get Free Report) last announced its earnings results on Friday, August 7th. The energy company reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.17. Kimbell Royalty had a net margin of 22.76% and a return on equity of 11.70%. The business had revenue of $112.48 million during the quarter, compared to the consensus estimate of $93.45 million. During the same quarter last year, the firm earned $0.02 earnings per share. The business's revenue for the quarter was up 29.9% on a year-over-year basis. Equities analysts predict that Kimbell Royalty will post 0.81 EPS for the current year.

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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