Kimbell Royalty Partners LPNYSE: KRP

Kimbell Royalty (KRP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Kimbell Royalty (KRP) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Here is how Kimbell Royalty (KRP) and Pembina Pipeline (PBA) have performed compared to their sector so far this year.

Kimbell Royalty Partners, LP (NYSE:KRP ) Q2 2024 Results Conference Call August 1, 2024 11:00 AM ET Company Participants Rick Black - IR Bob Ravnaas - Chairman & CEO Davis Ravnaas - President & CFO Matt Daly - COO Blayne Rhynsburger - Controller Conference Call Participants Tim Rezvan - KeyBanc Capital Markets Julian Broche - Truist Securities Operator Greetings, and welcome to Kimbell Royalty Partners Second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

My 2 Top Royalty Income Picks, Yields Up To 9.5%

The consensus price target hints at a 26.7% upside potential for Kimbell Royalty (KRP). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.

Kimbell Royalty (KRP) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Kimbell Royalty (KRP) reported earnings of $0.04 per share for the quarter, falling short of the Zacks Consensus Estimate of $0.19 per share. This is a decrease from earnings of $0.36 per share in the same quarter last year.

Kimbell is expected to produce a distributable 2024 cash flow of $2.38 per unit at the current strip, resulting in a quarterly distribution of $0.44 to $0.45 per unit with a 75% payout ratio. The midpoint of Kimbell's production guidance fell slightly below what I had anticipated.