FORT WORTH, Texas, Jan. 24,
2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE:
KRP) ("Kimbell"), a leading owner of oil and natural gas mineral
and royalty interests in more than 94,000 gross producing wells
across 28 states, today announced that the Board of Directors
of Kimbell Royalty GP, LLC, its general partner, has approved a
cash distribution of $0.38 per common
unit for the fourth quarter of 2019. The distribution will be
payable on February 10, 2020 to
common unitholders of record at the close of business on
February 3, 2020. Kimbell has a
distribution policy to pay out all available cash (as defined in
its partnership agreement) each quarter. Kimbell's distributions
may vary based on certain factors including, but not limited to,
the price of oil, natural gas and natural gas liquids and
production from Kimbell's royalty assets, as well as cash needed
for debt service obligations, fixed charges and reserves for future
operating or capital needs.
Kimbell -
Supplemental Distribution Data
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Percent
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Q3 2019
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Q4 2019
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Change
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WTI Average Crude Oil
Price(1)
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$56.37
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$56.96
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1.0%
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Henry Hub Average
Natural Gas Price (1)
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$2.38
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$2.40
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0.8%
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Common Unit
Distribution Declared
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$0.42
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(2)
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$0.38
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(9.5%)
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Annualized Cash
Yield (3)
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9.8%
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Cash Received from
Lease Bonuses
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$940,898
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$163,597
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SUBSTANTIALLY ALL
OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE FOURTH QUARTER OF
2019
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EXPECTED TO BE
FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF
CAPITAL(4)
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(1)
Average commodity prices are from the Energy Information
Administration. Crude oil prices are in dollars per barrel
and natural gas prices are in dollars per million Btu.
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(2) The Q3
2019 common unit distribution included $0.05 related to prior
period production recognized in Q3 2019.
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(3) Based
on the closing price of Kimbell common units on January 24,
2020.
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(4) This
estimate is based upon assumptions Kimbell has made regarding,
among other things, Kimbell Royalty Operating, LLC's income and
depletion expenses and production from the assets Kimbell expects
to acquire in the recently announced acquisition of all of the
mineral and royalty interests owned by Springbok Energy Partners,
LLC and Springbok Energy Partners II, LLC (the "Springbok
Acquisition"), and ignores the effect of any possible acquisitions
of additional assets (other than the Springbok Acquisition). This
estimate is based on current tax law and tax reporting positions
that Kimbell has adopted and with which the Internal Revenue
Service could disagree. This estimate is not a fact, and no
assurances can be made regarding this estimate.
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About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a leading oil and natural gas mineral and
royalty company based in Fort Worth,
Texas. Kimbell owns mineral and royalty interests in
approximately 13 million gross acres in 28 states and in every
major onshore basin in the continental United States, including ownership in more
than 94,000 gross producing wells with over 40,000 wells in the
Permian Basin. To learn more, visit http://www.kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements. These
forward-looking statements involve numerous risks and
uncertainties, including risks and uncertainties relating to the
tax treatment of Kimbell's distributions, risks that the
anticipated benefits of the Springbok Acquisition are not realized,
risks related to the possibility that the Springbok Acquisition
does not close when expected or at all because any conditions to
the closing are not satisfied on a timely basis or at all, and
risks relating to Kimbell's business and the securities markets
generally. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in Kimbell's filings with the Securities and Exchange
Commission ("SEC"), available at the SEC's website at
www.sec.gov. Except as required by law, Kimbell undertakes no
obligation and does not intend to update these forward-looking
statements to reflect events or circumstances occurring after this
news release. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date of this news release.
Contact:
Rick Black
Dennard Lascar Investor
Relations
krp@dennardlascar.com
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP