What are the investment strengths of Kimbell Royalty Partners LP (KRP)?

Royalty model: 54% gross margin with minimal capex required (PPE is mineral rights, not equipment). Operating margin 36% vs industry 18% median. 11.5% distribution yield (1.66/14.40) with tangible book value 5.92/share providing 41% downside floor if distributions cut.

What are the investment risks for Kimbell Royalty Partners LP (KRP)?

Structural cash burn: 250% payout ratio unsustainable. EPS declining -9.4% 5Y while distributions maintained via debt accumulation. Valuation disconnect: P/E 44x (3.7x industry) and P/S 4.3x (2.7x industry) prices in perpetual distributions that math doesn't support.

Kimbell Royalty Partners LP

KRP

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Kimbell Royalty Partners LP AI Insights

Informational only. Not investment advice.

As of 2025-12-18

Snapshot

Dividend payout ratio 5Y avg of 250% vs industry 33% - distributions funded by debt/equity, not earnings. EPS -9.4% 5Y CAGR confirms unsustainable.[Dividend Payout Ratio Avg 5yr]
FCF TTM of 22.4M supports only 13% of 196M annual distributions (1.66/share × 118M units). Operating cash flow 246M bridges gap but capex volatile.[Free Cash Flow TTM]
P/E of 44x vs industry median 12x despite negative EPS growth. Yield-seeking investors paying 3.7x fair multiple for 11.5% distribution.[P/E Ratio]

Watch Triggers

Dividend Payout Ratio: Falls below 150% — Would signal earnings finally covering distributions - structural improvement
Debt to Equity: Rises above 0.80 — Indicates accelerating debt-funded distributions - distribution cut likely within 12-18 months
Free Cash Flow TTM: Turns negative — Would force immediate distribution reduction or equity dilution

Bull Case

Royalty model: 54% gross margin with minimal capex required (PPE is mineral rights, not equipment). Operating margin 36% vs industry 18% median.

Gross Margin TTMOperating Margin TTM

11.5% distribution yield (1.66/14.40) with tangible book value 5.92/share providing 41% downside floor if distributions cut.

Dividends Paid Per Share TTMBook Value Per Share

Bear Case

Structural cash burn: 250% payout ratio unsustainable. EPS declining -9.4% 5Y while distributions maintained via debt accumulation.

Dividend Payout Ratio Avg 5yrEPS Growth 5yr

Valuation disconnect: P/E 44x (3.7x industry) and P/S 4.3x (2.7x industry) prices in perpetual distributions that math doesn't support.

P/E RatioP/S Ratio

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

35%

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Forward Thesis

Distribution sustainability depends on oil prices staying above $70 - current structure cannot survive prolonged downturn

1-3yhigh

Interest expense 31M consumes 85% of net income 37M
Debt/equity 0.65 with 453M long-term debt
Zero capital stock issuance limits equity funding

Net margin 11.6% vs interest expense/revenue 9.9%Payout ratio 250% requires external fundingEPS 0.26 vs dividend 1.66 = 6.4x coverage gap

Valuation Context

Caveats

Public Strategies Rankings

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KRP Fundamentals

Mining, Quarrying, and Oil and Gas Extraction → Oil and Gas Extraction

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$0		—
Enterprise Value	$0		—
P/E Ratio	0.00		—
Total Revenue - TTM	$321.74M	+3.6%	—
Earnings Per Share (diluted) - TTM	$0.00		—
Operating Margin - TTM	37.5%	+5.2%	—
Net Margin - TTM	28.3%	+24.3%	—
Free Cash Flow - TTM	$22.97M	-90.8%	—
Return on Common Equity - TTM	12.4%	+10.9%	—
Beta 5Y (Monthly)	unknown		—

KRP Dividend History

36 dividends

2026

$0.3700

03/18/26$0.3700

2025

$1.6000

11/17/25$0.3500

08/18/25$0.3800

05/20/25$0.4700

03/18/25$0.4000

2024

$1.7500

11/18/24$0.4100

08/12/24$0.4200

05/10/24$0.4900

03/12/24$0.4300

2023

$1.7300

11/10/23$0.5100

08/11/23$0.3900

05/12/23$0.3500

03/08/23$0.4800

2022

$1.8800

11/10/22$0.4900

08/12/22$0.5500

04/29/22$0.4700

01/28/22$0.3700

2021

$1.1400

10/29/21$0.3700

07/30/21$0.3100

04/30/21$0.2700

01/29/21$0.1900

2020

$0.8700

10/30/20$0.1900

07/31/20$0.1300

05/01/20$0.1700

01/31/20$0.3800

2019

$1.5800

11/01/19$0.4200

08/02/19$0.3900

05/03/19$0.3700

02/01/19$0.4000

2018

$1.6600

11/02/18$0.4500

08/03/18$0.4300

05/04/18$0.4200

02/06/18$0.3600

2017

$0.8400

11/03/17$0.3100

08/03/17$0.3000

05/04/17$0.2300

KRP Stock Splits

No stock splits

KRP SEC Filings

Filing Date	Report Date	Report Type	Filing Link
02/26/26	12/31/25	Unknown	0001104659-26-020477
11/06/25	09/30/25	10-Q	0001104659-25-107722
08/07/25	06/30/25	10-Q	0001558370-25-010756
05/08/25	03/31/25	10-Q	0001558370-25-006965
02/27/25	12/31/24	10-K	0001558370-25-001800
11/08/24	09/30/24	10-Q	0001558370-24-015073
08/01/24	06/30/24	10-Q	0001558370-24-010593
05/02/24	03/31/24	10-Q	0001558370-24-006556
02/21/24	12/31/23	10-K	0001558370-24-001427
11/02/23	09/30/23	10-Q	0001558370-23-017410
08/02/23	06/30/23	10-Q	0001558370-23-012934
05/03/23	03/31/23	10-Q	0001558370-23-007886
02/23/23	12/31/22	10-K	0001558370-23-001907
11/03/22	09/30/22	10-Q	0001558370-22-016145
08/04/22	06/30/22	10-Q	0001558370-22-012171
05/10/22	03/31/22	10-Q	0001558370-22-008111
02/25/22	12/31/21	10-K	0001558370-22-002143
11/04/21	09/30/21	10-Q	0001558370-21-014571
08/05/21	06/30/21	10-Q	0001558370-21-010529
05/06/21	03/31/21	10-Q	0001558370-21-006193
02/26/21	12/31/20	10-K	0001558370-21-001906
11/05/20	09/30/20	10-Q	0001558370-20-012891
08/06/20	06/30/20	10-Q	0001558370-20-009642
05/07/20	03/31/20	10-Q	0001558370-20-005794
02/28/20	12/31/19	10-K	0001558370-20-001706
11/08/19	09/30/19	10-Q	0001558370-19-010601
08/08/19	06/30/19	10-Q	0001558370-19-007687
05/09/19	03/31/19	10-Q	0001558370-19-004713
03/12/19	12/31/18	10-K	0001558370-19-001822
11/09/18	09/30/18	10-Q	0001558370-18-009164
08/10/18	06/30/18	10-Q	0001558370-18-006969
05/11/18	03/31/18	10-Q	0001558370-18-004738
12/31/17	12/31/17	10-K	0001558370-18-001804
11/09/17	09/30/17	10-Q	0001558370-17-008705
08/14/17	06/30/17	10-Q	0001558370-17-006584
05/12/17	03/31/17	10-Q	0001558370-17-004280
03/31/17	03/31/17	10-Q	0001558370-17-004280
03/30/17	12/31/16	10-K	0001104659-17-020404
02/06/17	09/30/16	424B4	0001047469-17-000539
08/14/17	06/30/16	10-Q	0001558370-17-006584
05/12/17	03/31/16	10-Q	0001558370-17-004280
02/06/17	12/31/15	424B4	0001047469-17-000539