Kimbell Royalty (KRP) vs Tamboran Resources Corporation (TBN)

Kimbell Royalty and Tamboran Resources Corporation are both Oil & Gas E&P companies. Kimbell Royalty is the larger, with a market value of $1.9B against $1.3B — 1.5× the size. Tamboran Resources Corporation has negative trailing earnings, so its P/E is not meaningful; Kimbell Royalty trades at 17.3×. Kimbell Royalty has the higher net margin (23.0% vs 0.00%) and the higher return on invested capital (7.76% vs −4.13%). Across the 13 metrics below, Kimbell Royalty leads on 10 and Tamboran Resources Corporation on 3.

Valuation

Metric KRP TBN Oil & Gas E&P median
P/E 17.35 n/m 10.57
P/S 4.11 n/m 1.80
P/B 2.10 1.44 1.27
Price to free cash flow 7.26 n/m 9.99
EV/EBITDA 7.01 n/m 5.08
EV/Sales 5.39 n/m 2.39
Earnings yield 5.77% (5.32%) 6.06%
Free cash flow yield 13.77% (20.60%) 6.17%

Profitability

Metric KRP TBN Oil & Gas E&P median
Gross margin 100.00% — 80.41%
Operating margin 40.15% 0.00% 21.39%
Net margin 23.03% 0.00% 14.17%
Free cash flow margin 56.63% 0.00% 9.71%
Return on equity 11.97% (7.89%) 10.05%
Return on assets 6.02% (6.53%) 5.81%
Return on invested capital 7.76% (4.13%) 6.32%

Growth

Metric KRP TBN Oil & Gas E&P median
Revenue growth (TTM) 6.17% — 9.94%
EPS growth (last fiscal year) 616.67% (8.62%) —
Revenue growth, 5-year CAGR 29.84% — 18.67%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric KRP TBN Oil & Gas E&P median
Debt to equity 0.72 0.10 0.28
Current ratio 7.30 2.00 0.96
Net debt to EBITDA 1.53 0.91 0.91

Dividend

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

Size

Metric KRP TBN Oil & Gas E&P median
Market cap 1.90b 1.29b 923.59m

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