Stock Repurchase Program Announced by Kimbell Royalty (NYSE:KRP) Board of Directors

Kimbell Royalty (NYSE:KRP) announced that its Board of Directors has initiated a stock buyback plan on Monday, March 9th, RTT News reports. The company plans to repurchase $100.00 million in shares. This repurchase authorization authorizes the energy company to repurchase up to 6.4% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its shares are undervalued.

Kimbell Royalty Trading Down 0.8%

Shares of KRP stock opened at $14.28 on Tuesday. Kimbell Royalty has a 1-year low of $10.98 and a 1-year high of $15.12. The firm has a market cap of $1.54 billion, a PE ratio of 23.03, a price-to-earnings-growth ratio of 3.64 and a beta of 0.30. The company has a 50-day moving average of $13.28 and a two-hundred day moving average of $13.15. The company has a debt-to-equity ratio of 0.72, a current ratio of 8.64 and a quick ratio of 8.64.

Kimbell Royalty (NYSE:KRP) last released its quarterly earnings results on Thursday, February 26th. The energy company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kimbell Royalty had a net margin of 26.43% and a return on equity of 13.73%. The business had revenue of $82.45 million for the quarter, compared to the consensus estimate of $76.78 million. During the same period in the previous year, the firm earned ($0.48) EPS. The business’s revenue was up 23.7% on a year-over-year basis. On average, analysts predict that Kimbell Royalty will post 0.65 EPS for the current year.

Kimbell Royalty Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, March 25th. Shareholders of record on Wednesday, March 18th will be paid a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 10.4%. This is a positive change from Kimbell Royalty’s previous quarterly dividend of $0.35. The ex-dividend date is Wednesday, March 18th. Kimbell Royalty’s payout ratio is currently 225.81%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on KRP shares. Weiss Ratings raised shares of Kimbell Royalty from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, February 2nd. Wall Street Zen lowered shares of Kimbell Royalty from a “buy” rating to a “hold” rating in a report on Saturday. Zacks Research cut shares of Kimbell Royalty from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 22nd. Mizuho reduced their price target on shares of Kimbell Royalty from $17.00 to $16.00 and set a “neutral” rating on the stock in a research report on Friday, February 27th. Finally, Citigroup decreased their price objective on Kimbell Royalty from $17.00 to $15.00 and set a “buy” rating on the stock in a report on Monday, January 12th. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $16.00.

Kimbell Royalty Company Profile

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.