📊 KRP Key Takeaways
Is Kimbell Royalty Partners, LP (KRP) a Good Investment?
Kimbell Royalty Partners demonstrates exceptional fundamental strength with 29.9% net margins, $246M+ in free cash flow generation, and a fortress balance sheet (8.64x current ratio, 18.2x interest coverage). The business model delivers outstanding cash returns with minimal capital requirements, though investors must account for inherent commodity price cycle exposure.
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.
Why Buy Kimbell Royalty Partners, LP Stock? KRP Key Strengths
- Industry-leading profitability: 39.8% operating margin and 29.9% net margin with 800%+ YoY net income growth
- Exceptional cash generation: 73.7% FCF margin with $246.1M free cash flow and minimal $335K capex requirements
- Fortress balance sheet: 8.64x current ratio, 18.2x interest coverage, and conservative leverage with only $171.6M LT debt on $1.2B assets
- 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
- Commodity price cycle exposure: 800%+ YoY net income volatility demonstrates heavy dependence on crude oil and natural gas prices
- Negative diluted EPS (-0.82) requires investigation - may indicate partnership structure issues or concerning operational metrics
- Limited organic growth: 7.9% revenue growth heavily commodity-dependent rather than driven by operational expansion or volume growth
- 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
- Commodity price trends (WTI crude oil, natural gas) - primary earnings and cash flow driver
- Free cash flow sustainability and capital allocation decisions (distributions to unitholders vs reinvestment)
- EPS metric clarification - resolve negative diluted EPS calculation and partnership structure impact
- 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 73.7% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 8.64x 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $57.0M | $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 Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KRP's key strengths?
Claude: Industry-leading profitability: 39.8% operating margin and 29.9% net margin with 800%+ YoY net income growth. Exceptional cash generation: 73.7% FCF margin with $246.1M free cash flow and minimal $335K capex requirements. 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: Commodity price cycle exposure: 800%+ YoY net income volatility demonstrates heavy dependence on crude oil and natural gas prices. Negative diluted EPS (-0.82) requires investigation - may indicate partnership structure issues or concerning operational metrics. 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 $333.8M.
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 rating reflects both perspectives for balanced insights.
Is KRP a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kimbell Royalty Partners, LP has a BUY rating with 75% 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 29.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KRP stock in 2026?
Our dual AI analysis gives Kimbell Royalty Partners, LP a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is KRP's free cash flow?
Kimbell Royalty Partners, LP's operating cash flow is $246.5M, with capital expenditures of $335.4K. FCF margin is 73.7%.
How does KRP compare to other Energy stocks?
Vs Energy sector averages: Net margin 29.9% (avg: 12%), ROE N/A (avg: 14%), current ratio 8.64 (avg: 1.3).