Kimbell Royalty (KRP) vs Mach Natural Resources LP (MNR)

Kimbell Royalty and Mach Natural Resources LP are both Oil & Gas E&P companies. Kimbell Royalty and Mach Natural Resources LP are of similar size ($1.9B and $1.8B). Mach Natural Resources LP trades at the lower P/E: 17.3× against 17.3×. Mach Natural Resources LP grew revenue faster over the last twelve months: 34.4% against 6.17%. Kimbell Royalty has the higher net margin (23.0% vs 7.44%) and the higher return on invested capital (7.76% vs 4.09%). Across the 19 metrics below, Kimbell Royalty leads on 10 and Mach Natural Resources LP on 9.

Valuation

Metric KRP MNR Oil & Gas E&P median
P/E 17.35 17.33 10.57
P/S 4.11 1.29 1.80
P/B 2.10 0.94 1.27
Price to free cash flow 7.26 6.96 9.99
EV/EBITDA 7.01 5.28 5.08
EV/Sales 5.39 2.18 2.39
Earnings yield 5.77% 5.77% 6.06%
Free cash flow yield 13.77% 14.36% 6.17%

Profitability

Metric KRP MNR Oil & Gas E&P median
Gross margin 100.00% 56.26% 80.41%
Operating margin 40.15% 14.40% 21.39%
Net margin 23.03% 7.44% 14.17%
Free cash flow margin 56.63% 18.51% 9.71%
Return on equity 11.97% 0.00% 10.05%
Return on assets 6.02% 3.35% 5.81%
Return on invested capital 7.76% 4.09% 6.32%

Growth

Metric KRP MNR Oil & Gas E&P median
Revenue growth (TTM) 6.17% 34.42% 9.94%
EPS growth (last fiscal year) 616.67% (42.63%) —
Revenue growth, 5-year CAGR 29.84% — 18.67%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric KRP MNR Oil & Gas E&P median
Debt to equity 0.72 0.63 0.28
Current ratio 7.30 0.88 0.96
Net debt to EBITDA 1.53 2.03 0.91

Dividend

Metric KRP MNR Oil & Gas E&P median
Dividend yield 11.33% — 4.93%
Payout ratio 1.03 — 0.07

Size

Metric KRP MNR Oil & Gas E&P median
Market cap 1.90b 1.76b 923.59m

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