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Financial Data and Key Metrics Changes - The company reported total revenues of $71.1 million for the third quarter, with a run rate production of 23,846 BOE per day [11] - Net income for the quarter was approximately $25.8 million, with net income attributable to common units at approximately $17.4 million or $0.22 per common unit [12] - Consolidated adjusted EBITDA for the third quarter was $63.1 million [13] - A cash distribution of $0.41 per common unit was declared for the third quarter, representing 75% of cash available for distribution [14] Business Line Data and Key Metrics Changes - The company maintained a strong market share with 90 rigs actively drilling on its acreage, representing approximately 16% of all land rigs in the continental U.S. [11][7] - The number of net DUCs increased by 34% quarter-over-quarter to 5.1 net DUCs, the second highest level in the company's history [8] Market Data and Key Metrics Changes - The company experienced a record number of lease bonuses during the third quarter, indicating increased operator interest in developing its acreage [7] - The drilling activity remained strong, particularly in the Permian Basin, which is a key area for the company [8] Company Strategy and Development Direction - The company aims to redeem at least half of the Apollo Preferred Stock in May 2025 to optimize cost savings while maintaining conservative leverage and liquidity [15] - The management expressed confidence in the prospects for continued robust development, particularly in the Permian Basin, and believes that its diversified portfolio of high-quality royalty assets will drive value for unitholders [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in DUCs is encouraging, particularly in the Delaware Basin, and they expect to see positive results from these wells in the near term [21] - The company is optimistic about the future and its ability to drive unitholder value for years to come [8] Other Important Information - The company maintains a conservative balance sheet with a net debt to trailing 12-month consolidated adjusted EBITDA of approximately 0.8x [15] - Approximately $297.8 million in undrawn capacity under the secured revolving credit facility was reported as of September 30, 2024 [15] Q&A Session Summary Question: Clarification on the preferred stock redemption timing - Management indicated that redeeming the preferred stock in May 2025 is more cost-efficient than redeeming it now, saving the partnership a couple of million dollars [18] Question: Insights on net DUCs and permits - Management confirmed that the increase in net DUCs is encouraging, particularly in the Delaware Basin, and they expect to see production results from these wells soon [21] Question: Opportunities for M&A in various basins - Management stated that the Permian Basin remains attractive for M&A, but they are also seeing opportunities in the Appalachia basin due to increased infrastructure and LNG exports [25] Question: Impact of high NRI wells in Loving County - Management clarified that the high NRI wells are already producing, and they expect to start receiving production and cash flow in Q4 [28]

Core Viewpoint - Kimbell Royalty (KRP) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.19 per share a year ago, indicating a positive earnings surprise of 4.76% [1][2] Financial Performance - The company achieved revenues of $83.79 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.18%, and up from $67.2 million in the same quarter last year [2] - Over the last four quarters, Kimbell Royalty has exceeded consensus revenue estimates three times [2] Stock Performance - Kimbell Royalty shares have increased approximately 8.8% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The stock is currently rated Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $81.34 million, and for the current fiscal year, it is $0.68 on revenues of $322.11 million [7] - The trend of estimate revisions for Kimbell Royalty has been unfavorable leading up to the earnings release [6] Industry Context - The Oil and Gas - Royalty Trust - United States industry is currently ranked in the bottom 6% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Kimbell Royalty (KRP) due to higher revenues, with actual results being crucial for stock price movement [1][2] Earnings Expectations - Kimbell Royalty is expected to report quarterly earnings of $0.21 per share, reflecting a year-over-year increase of +10.5% [3] - Revenues are projected to be $79.66 million, which is an 18.5% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 29.03% over the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +1.21% suggests recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [10] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a strong Zacks Rank [8] - However, a negative Earnings ESP does not necessarily indicate an earnings miss, making predictions less reliable for stocks with a negative reading [9] Historical Performance - Kimbell Royalty has not surpassed consensus EPS estimates in the last four quarters, with a significant miss of -54.17% in the last reported quarter [11][12] Conclusion - Kimbell Royalty does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making decisions regarding the stock [15]

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Kimbell Royalty (KRP) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sy ...

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Kimbell Royalty (KRP) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out. Kimbell Royalty is one of 247 companies in the Oils-Energy group. The Oils-Energy group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in te ...

Financial Data and Key Metrics Changes - The company reported oil, natural gas, and NGL revenues totaling $77 million for Q2 2024, with a run rate production of 24,110 BOE per day [7] - Net income for the second quarter was approximately $15.2 million, with net income attributable to common units at approximately $8.4 million or $0.11 per common unit [8] - Total consolidated adjusted EBITDA for Q2 was $65.8 million, with a cash distribution of $0.42 per common unit, representing 75% of cash available for distribution [8] Business Line Data and Key Metrics Changes - The company maintained a robust rig count of 91 rigs actively drilling, representing a 16% market share of all land rigs in the Continental United States [5][7] - General and administrative expenses for Q2 were $10.2 million, with cash G&A expenses at $5.1 million or $2.34 per BOE, marking a record low cash G&A per BOE [7] Market Data and Key Metrics Changes - The company reported a 5% increase in production in Oklahoma, capturing approximately 50% of all rigs in the state [13] - The company has a strong position in the Mid-Continent region, bolstered by recent acquisitions [13] Company Strategy and Development Direction - The company is focused on returning value to unitholders while maintaining a conservative balance sheet, with a net debt to trailing 12-month consolidated adjusted EBITDA ratio of 0.9x [9] - The company affirmed its 2024 guidance, projecting daily production at a midpoint of 24,000 BOE per day, with confidence in continued robust development [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the gas market, noting difficulties in finding attractive gas assets due to depressed pricing [20] - The company remains open to acquisitions across all basins, despite a disappointing year for M&A activity [22][23] Other Important Information - The company plans to redeem about half of its preferred shares in the next 3 to 6 months, aiming to maintain a debt-to-EBITDA ratio of less than 1.5x [14] - The company experienced an increase in common units outstanding due to the conversion of a shareholder from OpCo into common units [15][16] Q&A Session Summary Question: Why not revisit guidance given production is outpacing expectations? - Management acknowledged the valid point and indicated they would reconsider guidance internally, noting the variability of drilling outcomes [11] Question: Update thoughts on addressing preferred shares as 2025 approaches? - Management plans to redeem about half of the preferred shares in the next 3 to 6 months to improve the balance sheet [14] Question: Are there actionable dislocations in pricing between gas and oil assets? - Management expressed disappointment in the gas market, noting challenges in acquiring gas assets due to low prices and high demand for LNG exports [20] Question: What other basins are being considered for acquisitions? - Management stated they are looking at every basin and are open to acquisitions, although M&A activity has been slow this year [22][23]

Core Viewpoint - Analysts' price targets may not be reliable indicators for investors, as they often set overly optimistic targets influenced by business relationships and incentives [1][8][9] Group 1: Analysts' Price Targets - Analysts possess deep knowledge of company fundamentals but frequently exhibit a tendency to set inflated price targets [2] - A low standard deviation in price targets suggests strong agreement among analysts regarding stock price movements, which can serve as a starting point for further research [3][5] - The average price target for Kimbell Royalty (KRP) is $21.17, indicating a potential upside of 26.7% from its current price of $16.71 [4] Group 2: Earnings Estimates and Upside Potential - Strong consensus among analysts regarding KRP's earnings prospects supports the expectation of stock upside, as trends in earnings estimate revisions correlate with near-term stock price movements [6][10] - Over the past 30 days, one earnings estimate for KRP has increased, leading to a 16.9% rise in the Zacks Consensus Estimate [11] Group 3: Zacks Rank and Investment Implications - KRP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating solid potential for upside [14] - While consensus price targets may not reliably predict the extent of KRP's gains, they can provide guidance on the direction of price movement [14]

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: Investors have been betting on Kimbell Royalty because of its solid estimate revisions, as evident from the stock's 6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. The company is expected to earn $0.92 per share for the full year, which represents a change of +1.1% from the prior-year number. Analysts' growing optimism ...