FORT WORTH, Texas, Feb. 27,
2020 /PRNewswire/ -- Kimbell Royalty Partners, LP
(NYSE: KRP) ("Kimbell" or the "Company"), 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
financial and operating results for the fourth quarter ended
December 31, 2019.
Fourth Quarter 2019 Highlights
- Q4 2019 oil, natural gas and natural gas liquids ("NGL")
revenues of $27.2 million, up 18%
from Q4 2018; full year 2019 oil, natural gas and NGL revenues of
$107.5 million, up 64% from the prior
year1
- Record Q4 2019 run-rate daily production of 12,828 barrels of
oil equivalent ("Boe") per day (6:1), above the high end of Q4 2019
guidance and up 27.4% from Q4 2018 2
- Q4 2019 cash distribution of $0.38 per common unit; implies robust 13.0%
annualized yield based on the February 26,
2020 closing price of $11.71
per common unit
- Substantially all distributions paid to common unitholders from
2020 through 2023 are not expected to be taxable dividend income
and less than 25% of distributions paid to common unitholders for
the subsequent two years (2024 to 2025) are expected to be taxable
dividend income
- Q4 2019 net loss was $103.6
million and Q4 2019 net loss attributable to common units
was $51.3 million, compared to Q4
2018 net loss attributable to common units of $1.6 million. The Q4 2019 net loss amount
included a non-cash impairment expense of $103.3 million
- Q4 2019 consolidated Adjusted EBITDA (as defined and reconciled
below) was $20.2 million, up 35.9%
from Q4 2018
- General and administrative ("G&A") expense was $5.4 million in Q4 2019, with cash G&A
expense per Boe of $3.123,
below the low-end of Q4 2019 guidance and down 31% compared to Q4
2018
- On January 9, 2020, Kimbell
announced that it had agreed to acquire the oil and natural gas
mineral and royalty interests (the "Springbok Acquisition") held by
Springbok Energy Partners, LLC and Springbok Energy Partners II,
LLC (together, "Springbok") in a transaction valued at
approximately $175 million
Robert Ravnaas, Chairman and
Chief Executive Officer of the Company commented, "We are very
pleased with our outstanding operational performance in 2019.
The record high full year revenue and record high quarterly
production reinforce the strength of our business model as we
accelerate growth. We are also extremely excited about our
recently announced agreement to acquire the Springbok assets, which
is expected to grow our production by over 2,500 Boe per day,
increase our oil production mix and provide additional exposure to
the high growth Delaware Basin. With many of our industry's
highest quality operators actively drilling on Springbok's acreage
(currently 14 rigs), we are optimistic about the future development
of these assets for many years to come.
"Our broad-based, high-quality asset portfolio continues to
outperform expectations and, at the end of the fourth quarter of
2019, our rig count was 81 rigs, including 24 rigs in the Permian
Basin, and our market share of the entire lower 48 U.S. drilling
fleet increased to 10.4% from 9.8%. Including the rigs from
the recently announced Springbok Acquisition, Kimbell would have
had an estimated 93 rigs actively drilling on its acreage at
year-end 2019 across the U.S., or 12.0% of market share.
"We remain focused on assembling a high-quality, low-PDP decline
and diversified royalty portfolio that generates substantial free
cash flow and additional growth potential with no capital
outlays. We are excited about the opportunities to further
enhance growth in the future," concluded Robert Ravnaas.
Fourth Quarter 2019 Distribution
On January 24, 2020, Kimbell
announced its 2019 fourth quarter cash distribution of $0.38 per common unit, with full year 2019
distributions totaling $1.56 per
common unit. Kimbell expects substantially all of this
distribution will not constitute taxable dividend income and
instead will generally result in a non-taxable reduction to the tax
basis of unitholders' common units. The reduced tax basis
will increase unitholders' capital gain (or decrease unitholders'
capital loss) when unitholders sell their common units.
Furthermore, Kimbell expects substantially all distributions
paid to common unitholders from 2020 through 2023 will not be
taxable dividend income and less than 25% of distributions paid to
common unitholders for the subsequent two years (2024 to 2025) are
expected to be taxable dividend income.
Financial Highlights
Total fourth quarter 2019 revenues were $25.4 million, compared to $30.3 million in the fourth quarter of
2018. Fourth quarter 2019 net loss was $103.6 million, and net loss attributable to
common units was $51.3 million, or
$2.27 per common unit, compared to
net loss attributable to common units of $1.6 million in the fourth quarter of 2018.
The increase in net loss during the fourth quarter of 2019 was
primarily due to a $103.3 million
non-cash impairment expense recorded during the quarter related to
a full-cost ceiling test.
Total fourth quarter 2019 consolidated Adjusted EBITDA grew to
$20.2 million, compared to
$14.9 million in the fourth quarter
of 2018 (consolidated Adjusted EBITDA is a non-GAAP financial
measure. Please see a reconciliation to the nearest GAAP
financial measures at the end of this news release).
During the fourth quarter of 2019, average realized price per Bbl
of oil was $54.95, per Mcf of natural
gas was $1.92, per Bbl of NGLs was
$13.56 and per Boe combined was
$22.95.
Kimbell recorded a non-cash $103.3
million impairment expense in the fourth quarter of 2019 as
a result of a full-cost ceiling test, which was primarily
attributable to a decline in the 12-month average price of oil and
natural gas. This non-cash impairment expense is not
expected to impact the cash flow available for distribution
generated by Kimbell or its liquidity or ability to make
acquisitions in the future.
G&A expense was $5.4 million
in Q4 2019, $3.6 million of which was
Cash G&A expense, or $3.12 per
Boe, down from $3.30 per Boe in Q3
2019 (Cash G&A and Cash G&A per Boe are non-GAAP
financial measures. Please see definition under Non-GAAP
Financial Measures at end of this news release).
Unit-based compensation in Q4 2019, which is a non-cash G&A
expense, was $1.8 million or
$1.56 per Boe.
As of December 31, 2019, Kimbell
had outstanding 23,518,652 common units and 25,557,606 Class B
units. As of February 27, 2020,
Kimbell had outstanding 33,432,211 common units and 20,644,047
Class B units.
Production
Fourth quarter 2019 average daily production was 12,845 Boe per
day (6:1), which consisted of 17 Boe per day relating to prior
period production recognized in Q4 2019 and 12,828 Boe per day of
run-rate production.4 The 12,828 Boe per day of
run-rate production for Q4 2019 was comprised of approximately 38%
from liquids (26% from oil and 12% from NGLs) and 62% from natural
gas (6:1). The prior period production recognized in Q4 2019
was primarily due to new wells outperforming estimates.
Reserves
Ryder Scott Company, L.P. prepared an estimate of Kimbell's
proved reserves as of December 31,
2019. Average prices of $55.69 per barrel of oil and $2.58 per MMBtu of natural gas were used in
accordance with applicable rules of the Securities and Exchange
Commission (the "SEC"). Realized prices with applicable
differentials were $52.58 per barrel
of oil, $1.88 per Mcf of natural gas
and $15.21 per barrel of NGLs.
Proved developed reserves at year-end 2019 increased by
approximately 22% year-over-year to almost 41 MMBoe, reflecting the
acquisitions Kimbell made during the year along with continued
development by the operators of Kimbell's acreage.
|
|
Crude Oil and
Condensate
(MBbls)
|
|
Natural Gas
(MMcf)
|
|
Natural Gas
Liquids (MBbls)
|
|
Total
(MBOE)
|
Net proved developed
reserves at December 31, 2018
|
9,183
|
|
116,321
|
|
5,063
|
|
33,633
|
|
Revisions of previous
estimates
|
1,446
|
|
28,777
|
|
892
|
|
7,134
|
|
Purchases of minerals
in place
|
1,787
|
|
13,129
|
|
686
|
|
4,661
|
|
Production
|
(1,113)
|
|
(17,046)
|
|
(562)
|
|
(4,516)
|
Net proved developed
reserves at December 31, 2019
|
11,303
|
|
141,181
|
|
6,079
|
|
40,912
|
Acquisition Update
On January 9, 2020, Kimbell
announced that it had agreed to acquire the oil and natural gas
mineral and royalty interests held by Springbok in a transaction
valued at approximately $175 million,
subject to purchase price adjustments. Kimbell estimates
that, as of October 1, 2019, the
Springbok assets produced 2,533 Boe/d (823 Bbl/d of oil, 279 Bbl/d
of NGLs and 8,584 Mcf/d of natural gas) (6:1) with an average
realized cash margin of $21.92 per
Boe and included 2,160 net royalty acres. The Delaware Basin represents 29% of the rig
activity included in the Springbok Acquisition. The aggregate
consideration to be delivered to the sellers at the closing of the
Springbok Acquisition will consist of a combination of cash and
equity. The Springbok Acquisition is expected to close early
in the second quarter of 2020, subject to the satisfaction of
specified closing conditions.
Liquidity
At December 31, 2019, Kimbell's
total debt to consolidated Adjusted EBITDA ratio was 1.2x based on
Q4 2019 annualized consolidated Adjusted EBITDA.
At December 31, 2019, Kimbell had
approximately $100.1 million in debt
outstanding and approximately $124.9
million in undrawn capacity under its revolving credit
facility (or approximately $199.9
million if aggregate commitments were equal to our current
borrowing base, which is $300.0
million). Increases in commitments pursuant to the
accordion feature of the revolving credit facility are subject to
the satisfaction of certain conditions, including obtaining
additional commitments from new or existing lenders. Kimbell
was in compliance with all financial covenants under its revolving
credit facility at December 31,
2019.
Hedging
Kimbell hedges its daily production in a manner that
approximates the amount of debt and/or preferred equity as a
percent of its enterprise value. As of December 31, 2019, Kimbell had hedged daily oil
and natural gas production of approximately 18% of its
production. Please see the supplemental schedule at the end
of this news release for hedging details.
Partial Redemption of Series A Cumulative Convertible
Preferred Units
On February 12, 2020, Kimbell
redeemed 55,000 out of its then outstanding 110,000 Series A
cumulative convertible preferred units for a redemption price of
$61.1 million. The redemption
was funded with borrowings under Kimbell's revolving credit
facility. After giving effect to the redemption and the
partial paydown of outstanding borrowings under the revolving
credit facility with net proceeds from Kimbell's underwritten
public offering of common units that closed on January 14, 2020, as of February 26, 2020, Kimbell had $100.7 million in debt outstanding under its
revolving credit facility.
2020 Guidance
Kimbell plans to issue 2020 guidance after the closing of the
Springbok Acquisition, which is expected to occur early in the
second quarter of 2020.
Conference Call
Kimbell Royalty Partners will host a conference call and webcast
today at 11:00 a.m. Eastern Time
(10:00 a.m. Central Time) to discuss
fourth quarter 2019 results. To access the call live by
phone, dial 201-389-0869 and ask for the Kimbell Royalty Partners
call at least 10 minutes prior to the start time. A
telephonic replay will be available through March 5, 2020, by dialing 201-612-7415 and using
the conference ID 13697441#. A webcast of the call will also be
available live and for later replay on Kimbell's website at
http://kimbellrp.investorroom.com under the Events and
Presentations tab.
Presentation
On February 27, 2020, Kimbell
posted an updated investor presentation on its website. The
presentation may be found at
http://kimbellrp.investorroom.com under the Events and
Presentations tab. Information on Kimbell's website does not
constitute a portion of this news release.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a leading oil and 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, which include statements regarding the
tax treatment of Kimbell's distributions, the expected timing of
the closing of the Springbok Acquisition, the anticipated benefits
of the Springbok Acquisition and Kimbell's prospects for future
growth, involve risks and uncertainties, including risks and
uncertainties relating to Kimbell's future operating and production
results, the tax treatment of Kimbell's distributions, 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, the anticipated benefits of
the Springbok Acquisition and Kimbell's other acquisitions,
including the Oklahoma Acquisition and Buckhorn Acquisition,
Kimbell's business, prospects for growth and acquisitions and the
securities markets generally, as well as risks inherent in oil and
natural gas drilling and production activities, including risks
with respect to low or declining prices for oil and natural gas
that could result in downward revisions to the value of proved
reserves or otherwise cause operators to delay or suspend planned
drilling and completion operations or reduce production levels,
which would adversely impact cash flow; risks related to the
impairment of oil and natural gas properties; risks relating to the
availability of capital to fund drilling operations that can be
adversely affected by adverse drilling results, production declines
and declines in oil and natural gas prices; risks regarding
Kimbell's ability to meet financial covenants under its credit
agreement or its ability to obtain amendments or waivers to effect
such compliance; risks relating to Kimbell's hedging activities;
risks of fire, explosion, blowouts, pipe failure, casing collapse,
unusual or unexpected formation pressures, environmental hazards,
and other operating and production risks, which may temporarily or
permanently reduce production or cause initial production or test
results to not be indicative of future well performance or delay
the timing of sales or completion of drilling operations; risks
relating to delays in receipt of drilling permits; risks relating
to unexpected adverse developments in the status of properties;
risks relating to borrowing base redeterminations by Kimbell's
lenders; risks relating to the absence or delay in receipt of
government approvals or third -party consents; risks relating to
acquisitions, dispositions and drop downs of assets; risks relating
to Kimbell's ability to realize the anticipated benefits from and
to integrate acquired assets, including the assets acquired in the
Oklahoma Acquisition and Buckhorn Acquisition; and other risks
described in Kimbell's Annual Report on Form 10-K and other filings
with the SEC, available at the SEC's website at www.sec.gov.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
news release. 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. When considering these forward-looking statements,
you should keep in mind the risk factors and other cautionary
statements in Kimbell's filings with the SEC.
Contact:
Rick Black
Dennard Lascar Investor
Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
Kimbell Royalty
Partners, LP
|
Condensed
Consolidated Balance Sheet
|
(Unaudited, in
thousands)
|
|
|
December
31,
|
|
2019
|
Assets:
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
14,204
|
Oil, natural gas and
NGL receivables
|
|
19,171
|
Commodity derivative
assets
|
|
688
|
Accounts receivable
and other current assets
|
|
77
|
Total current
assets
|
|
34,140
|
Property and
equipment, net
|
|
1,327
|
Investment in
affiliate (equity method)
|
|
2,952
|
Oil and natural gas
properties
|
|
|
Oil and natural gas
properties (full cost method)
|
|
1,033,355
|
Less: accumulated
depreciation, depletion and impairment
|
|
(328,913)
|
Total oil and natural
gas properties, net
|
|
704,442
|
Commodity derivative
assets
|
|
116
|
Right-of-use assets,
net
|
|
3,400
|
Loan origination
costs, net
|
|
2,217
|
Total
assets
|
$
|
748,594
|
Liabilities,
mezzanine equity and unitholders' equity:
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
$
|
1,208
|
Other current
liabilities
|
|
4,232
|
Total current
liabilities
|
|
5,440
|
Operating lease
liabilities, excluding current portion
|
|
3,124
|
Long-term
debt
|
|
100,135
|
Total
liabilities
|
|
108,699
|
Commitments and
contingencies
|
|
|
Mezzanine
equity:
|
|
|
Series A preferred
units
|
|
74,910
|
Unitholders'
equity:
|
|
|
Common
units
|
|
282,550
|
Class B
units
|
|
1,278
|
Total unitholders'
equity
|
|
283,828
|
Noncontrolling
interest
|
|
281,157
|
Total
equity
|
|
564,985
|
Total liabilities,
mezzanine equity and unitholders' equity
|
$
|
748,594
|
Kimbell Royalty
Partners, LP
|
Condensed
Consolidated Statements of Operations
|
(Unaudited, in
thousands, except per-unit data and unit counts)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Revenue
|
|
|
|
|
|
Oil, natural gas and
NGL revenues
|
$
|
27,202
|
|
$
|
22,972
|
Lease bonus and other
income
|
|
164
|
|
|
89
|
(Loss) gain on
commodity derivative instruments
|
|
(2,003)
|
|
|
7,190
|
Total
revenues
|
|
25,363
|
|
|
30,251
|
Costs and
expenses
|
|
|
|
|
|
Production and ad
valorem taxes
|
|
1,962
|
|
|
1,368
|
Depreciation and
depletion expense
|
|
14,428
|
|
|
9,718
|
Impairment of oil and
natural gas properties
|
|
103,321
|
|
|
12,558
|
Marketing and other
deductions
|
|
2,208
|
|
|
1,784
|
General and
administrative expenses
|
|
5,418
|
|
|
5,197
|
Total costs and
expenses
|
|
127,337
|
|
|
30,625
|
Operating
loss
|
|
(101,974)
|
|
|
(374)
|
Other income
(expense)
|
|
|
|
|
|
Equity income in
affiliate
|
|
161
|
|
|
—
|
Interest
expense
|
|
(1,481)
|
|
|
1,415
|
Net loss before
income taxes
|
|
(103,294)
|
|
|
(1,789)
|
Provision for
(benefit from) income taxes
|
|
289
|
|
|
(1,952)
|
Net (loss)
income
|
|
(103,583)
|
|
|
163
|
Distribution and
accretion on Series A preferred units
|
|
(3,470)
|
|
|
(3,470)
|
Net loss attributable
to noncontrolling interests
|
|
55,750
|
|
|
1,715
|
Distributions on
Class B units
|
|
(23)
|
|
|
(18)
|
Net loss
attributable to common units
|
$
|
(51,326)
|
|
$
|
(1,610)
|
|
|
|
|
|
|
Basic
|
$
|
(2.27)
|
|
$
|
(0.10)
|
Diluted
|
$
|
(2.27)
|
|
$
|
(0.10)
|
Weighted average
number of common units outstanding
|
|
|
|
|
|
Basic
|
|
22,608,400
|
|
|
16,898,563
|
Diluted
|
|
22,608,400
|
|
|
16,898,563
|
Kimbell Royalty
Partners, LP
|
Condensed
Consolidated Statements of Operations
|
(Unaudited, in
thousands, except per-unit data and unit counts)
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Revenue
|
|
|
|
|
|
Oil, natural gas and
NGL revenues
|
$
|
107,480
|
|
$
|
65,713
|
Lease bonus and other
income
|
|
2,477
|
|
|
1,213
|
(Loss) gain on
commodity derivative instruments
|
|
(1,732)
|
|
|
3,332
|
Total
revenues
|
|
108,225
|
|
|
70,258
|
Costs and
expenses
|
|
|
|
|
|
Production and ad
valorem taxes
|
|
7,720
|
|
|
4,400
|
Depreciation and
depletion expense
|
|
52,118
|
|
|
25,213
|
Impairment of oil and
natural gas properties
|
|
169,150
|
|
|
67,312
|
Marketing and other
deductions
|
|
8,145
|
|
|
4,652
|
General and
administrative expenses
|
|
22,667
|
|
|
16,847
|
Total costs and
expenses
|
|
259,800
|
|
|
118,424
|
Operating
loss
|
|
(151,575)
|
|
|
(48,166)
|
Other income
(expense)
|
|
|
|
|
|
Equity income in
affiliate
|
|
80
|
|
|
—
|
Interest
expense
|
|
(5,814)
|
|
|
(4,092)
|
Net loss before
income taxes
|
|
(157,309)
|
|
|
(52,258)
|
Provision for
(benefit from) income taxes
|
|
899
|
|
|
25
|
Net
loss
|
|
(158,208)
|
|
|
(52,283)
|
Distribution and
accretion on Series A preferred units
|
|
(13,878)
|
|
|
(6,310)
|
Net loss attributable
to noncontrolling interests
|
|
89,148
|
|
|
1,856
|
Distributions on
Class B units
|
|
(94)
|
|
|
(31)
|
Net loss
attributable to common units
|
$
|
(83,032)
|
|
$
|
(56,768)
|
|
|
|
|
|
|
Basic
|
$
|
(3.92)
|
|
$
|
(3.08)
|
Diluted
|
$
|
(3.92)
|
|
$
|
(3.08)
|
Weighted average
number of common units outstanding
|
|
|
|
|
|
Basic
|
|
21,192,714
|
|
|
18,442,234
|
Diluted
|
|
21,192,714
|
|
|
18,442,234
|
Kimbell Royalty Partners,
LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA and Cash G&A are used as a supplemental
non-GAAP financial measures by management and external users of
Kimbell's financial statements, such as industry analysts,
investors, lenders and rating agencies. Kimbell believes
Adjusted EBITDA is useful because it allows us to more effectively
evaluate Kimbell's operating performance and compare the results of
Kimbell's operations period to period without regard to its
financing methods or capital structure. In addition,
management uses Adjusted EBITDA to evaluate cash flow available to
pay distributions to Kimbell's unitholders. Kimbell defines
Adjusted EBITDA as net income (loss) before interest expense, net
of capitalized interest, non-cash unit-based compensation,
unrealized gains and losses on commodity derivative instruments,
distributions from equity investments, equity income from
affiliates, impairment of oil and natural gas properties, income
taxes and depreciation and depletion expense. Adjusted EBITDA
is not a measure of net income (loss) or net cash provided by
operating activities as determined by GAAP. Kimbell excludes
the items listed above from net income (loss) in arriving at
Adjusted EBITDA because these amounts can vary substantially from
company to company within Kimbell's industry depending upon
accounting methods and book values of assets, capital structures
and the method by which the assets were acquired. Certain
items excluded from Adjusted EBITDA are significant components in
understanding and assessing a company's financial performance, such
as a company's cost of capital and tax structure, as well as
historic costs of depreciable assets, none of which are components
of Adjusted EBITDA. Adjusted EBITDA should not be considered
an alternative to net income, oil, natural gas and natural gas
liquids revenues, net cash provided by operating activities or any
other measure of financial performance or liquidity presented in
accordance with GAAP. Kimbell's computations of Adjusted
EBITDA may not be comparable to other similarly titled measures of
other companies. Kimbell expects that cash available for
distribution for each quarter will generally equal its Adjusted
EBITDA for the quarter, less cash needed for debt service and other
contractual obligations and fixed charges and reserves for future
operating or capital needs that the board of directors may
determine is appropriate.
Kimbell believes Cash G&A and Cash G&A per Boe are
useful metrics because they isolate cash costs within overall
G&A expense and measure cash costs relative to overall
production, which is a widely utilized metric to evaluate
operational performance within the energy sector. Cash
G&A is defined as general and administrative expenses less
unit-based compensation expense. Cash G&A per Boe is
defined as Cash G&A divided by total production for a
period. Cash G&A should not be considered an alternative
to G&A expense presented in accordance with GAAP. Kimbell's
computations of Cash G&A and Cash G&A per Boe may not be
comparable to other similarly titled measures of other
companies.
Kimbell Royalty
Partners, LP
|
Supplemental
Schedules
|
(Unaudited, in
thousands)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Reconciliation of
net cash provided by operating activities
|
|
|
|
|
|
to Adjusted
EBITDA
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
16,522
|
|
$
|
14,611
|
Interest
expense
|
|
1,481
|
|
|
1,415
|
Provision for
(benefit from) income taxes
|
|
289
|
|
|
(478)
|
Impairment of oil and
natural gas properties
|
|
(103,321)
|
|
|
(12,558)
|
Amortization of
right-of-use assets
|
|
(66)
|
|
|
—
|
Amortization of loan
origination costs
|
|
(266)
|
|
|
(258)
|
Equity income in
affiliate
|
|
161
|
|
|
—
|
Unit-based
compensation
|
|
(1,810)
|
|
|
(1,027)
|
(Loss) gain on
commodity derivative instruments, net of settlements
|
|
(2,545)
|
|
|
8,042
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Oil, natural
gas and NGL revenues receivable
|
|
860
|
|
|
(1,740)
|
Accounts
receivable and other current assets
|
|
(364)
|
|
|
(376)
|
Accounts
payable
|
|
(74)
|
|
|
200
|
Other current
liabilities
|
|
1,435
|
|
|
1,513
|
Operating
lease liabilities
|
|
313
|
|
|
—
|
Consolidated
EBITDA
|
$
|
(87,385)
|
|
$
|
9,344
|
Add:
|
|
|
|
|
|
Impairment of oil and
natural gas properties
|
|
103,321
|
|
|
12,558
|
Unit-based
compensation
|
|
1,810
|
|
|
1,027
|
Loss (gain) on
commodity derivative instruments, net of settlements
|
|
2,545
|
|
|
(8,042)
|
Cash distribution
from equity method investee
|
|
94
|
|
|
—
|
Equity income in
affiliate
|
|
(161)
|
|
|
—
|
Consolidated Adjusted
EBITDA
|
$
|
20,224
|
|
$
|
14,887
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(10,532)
|
|
|
(7,721)
|
Adjusted EBITDA
attributable to Kimbell Royalty Partners, LP
|
$
|
9,692
|
|
$
|
7,166
|
Kimbell Royalty
Partners, LP
|
Supplemental
Schedules
|
(Unaudited, in
thousands, except per-unit data and unit counts)
|
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
|
|
Net
loss
|
$
|
(103,583)
|
Depreciation and
depletion expense
|
|
14,428
|
Interest
expense
|
|
1,481
|
Provision for income
taxes
|
|
289
|
Consolidated
EBITDA
|
$
|
(87,385)
|
Impairment of oil and
natural gas properties
|
|
103,321
|
Unit-based
compensation
|
|
1,810
|
Loss on commodity
derivative instruments, net of settlements
|
|
2,545
|
Cash distribution
from equity method investee
|
|
94
|
Equity income in
affiliate
|
|
(161)
|
Consolidated Adjusted
EBITDA
|
$
|
20,224
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(10,532)
|
Adjusted EBITDA
attributable to Kimbell Royalty Partners, LP
|
$
|
9,692
|
|
|
|
Adjustments to
reconcile Adjusted EBITDA to cash available
|
|
|
for
distribution
|
|
|
Cash interest
expense
|
|
611
|
Cash distributions on
Series A preferred units
|
|
923
|
Cash income tax
expense(1)
|
|
151
|
Distributions on
Class B units
|
|
23
|
Cash
reserves(1)
|
|
(151)
|
Cash available for
distribution on common units
|
$
|
8,135
|
|
|
|
Common units
outstanding on December 31, 2019
|
|
23,518,652
|
|
|
|
Cash available for
distribution per common unit outstanding
|
$
|
0.35
|
|
|
|
Common units
outstanding on February 3, 2020 Record Date
|
|
29,268,652
|
|
|
|
Fourth quarter
2019 distribution declared (2)
|
$
|
0.38
|
|
|
|
(1) Reflects
cash taxes related to income allocation from the Series A preferred
units, which were issued to partially fund the Haymaker acquisition that closed in July
2018. Kimbell had previously retained cash for
post-closing costs and expects to
have adequate cash reserves set aside to offset future cash taxes
related to the Series A preferred units.
|
(2) The
difference between the declared distribution and the cash available
for distribution is primarily attributable to the acquisitions of the Oklahoma and Buckhorn
assets being effective on August 1, 2019 and July 1, 2019,
respectively, but only reflected in the
condensed consolidated financial statements under GAAP from the
closing dates of November 6,
2019 and December 12, 2019, respectively, onward. In
addition, includes an allocated portion of post-October 1, 2019 effective date anticipated cash
receipts from the Springbok assets.
|
Kimbell Royalty
Partners, LP
|
Supplemental
Schedules
|
(Unaudited, in
thousands, except per-unit data and unit counts)
|
|
|
Three Months
Ended
|
|
September 30,
2019
|
|
|
|
Net
loss
|
$
|
(28,914)
|
Depreciation and
depletion expense
|
|
15,098
|
Interest
expense
|
|
1,468
|
Provision for income
taxes
|
|
103
|
Consolidated
EBITDA
|
$
|
(12,245)
|
Impairment of oil and
natural gas properties
|
|
34,880
|
Unit-based
compensation
|
|
1,810
|
Gain on commodity
derivative instruments, net of settlements
|
|
(1,684)
|
Consolidated Adjusted
EBITDA
|
$
|
22,761
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(11,349)
|
Adjusted EBITDA
attributable to Kimbell Royalty Partners, LP
|
$
|
11,412
|
|
|
|
Adjustments to
reconcile Adjusted EBITDA to cash available
|
|
|
for
distribution
|
|
|
Cash interest
expense
|
|
612
|
Cash distributions on
Series A preferred units
|
|
965
|
Cash income tax
expense(1)
|
|
147
|
Distributions on
Class B units
|
|
23
|
Cash
reserves(1)
|
|
(147)
|
Cash available for
distribution on common units
|
$
|
9,812
|
|
|
|
Common units
outstanding on September 30, 2019
|
|
23,520,219
|
|
|
|
Cash available for
distribution per common unit outstanding
|
$
|
0.42
|
|
|
|
Common units
outstanding on November 4, 2019 Record Date
|
|
23,520,219
|
|
|
|
Third quarter 2019
distribution declared
|
$
|
0.42
|
|
|
|
(1) Reflects
cash taxes related to income allocation from the Series A preferred
units, which were issued to partially fund the Haymaker acquisition that closed in July
2018. Kimbell had previously retained cash for
post-closing costs and expects to
have adequate cash reserves set aside to offset future cash taxes
related to the Series A preferred units.
|
Kimbell Royalty
Partners, LP
|
Supplemental
Schedules
|
(Unaudited, in
thousands, except per-unit data and unit counts)
|
|
|
Three Months
Ended
|
|
December 31,
2018
|
|
|
|
Net
income
|
$
|
163
|
Depreciation,
depletion and accretion expenses
|
|
9,718
|
Interest
expense
|
|
1,415
|
Benefit from income
taxes
|
|
(1,952)
|
Consolidated
EBITDA
|
$
|
9,344
|
Impairment of oil and
natural gas properties
|
|
12,558
|
Unit-based
compensation
|
|
1,027
|
Gain on commodity
derivative instruments, net of settlements
|
|
(8,042)
|
Consolidated Adjusted
EBITDA
|
$
|
14,887
|
Adjusted EBITDA
attributable to non-controlling interest
|
|
(7,721)
|
Adjusted EBITDA
attributable to Kimbell Royalty Partners LP
|
$
|
7,166
|
|
|
|
Adjustments to
reconcile Adjusted EBITDA to cash available
|
|
|
for
distribution
|
|
|
Cash interest
expense
|
|
672
|
Cash distributions on
Series A preferred units
|
|
927
|
Distributions on
Class B units
|
|
18
|
Cash available for
distribution on common units
|
$
|
5,549
|
|
|
|
Common units
outstanding on December 31, 2018
|
|
18,056,487
|
|
|
|
Cash available for
distribution per common unit outstanding
|
$
|
0.31
|
|
|
|
Common units
outstanding on February 4, 2019 Record Date
|
|
19,495,403
|
|
|
|
Fourth quarter
2018 distribution declared(1)
|
$
|
0.40
|
|
|
|
(1) The
difference between the declared distribution and the cash available
for distribution is primarily attributable to the acquisition of the Drop Down
assets being effective on October 1, 2018, but only
reflected in the condensed
consolidated financial statements from December 20, 2018
onward.
|
Kimbell Royalty
Partners, LP
|
Supplemental
Schedules
|
(Unaudited)
|
|
Fixed Price Swaps as of December 31,
2019
|
|
|
|
Weighted
Average
|
|
Volumes
|
Fixed
Price
|
|
Oil
|
Nat
Gas
|
Oil
|
Nat
Gas
|
|
BBL
|
MMBTU
|
$/BBL
|
$/MMBTU
|
1Q 2020
|
55,874
|
962,143
|
$
60.22
|
$
2.89
|
2Q 2020
|
55,874
|
962,143
|
$
60.68
|
$
2.51
|
3Q 2020
|
56,304
|
829,288
|
$
50.45
|
$
2.53
|
4Q 2020
|
56,304
|
829,288
|
$
50.65
|
$
2.63
|
1Q 2021
|
56,340
|
829,260
|
$
55.69
|
$
2.82
|
2Q 2021
|
59,423
|
836,381
|
$
54.52
|
$
2.43
|
3Q 2021
|
62,468
|
944,380
|
$
50.79
|
$
2.33
|
4Q 2021
|
60,076
|
893,596
|
$
53.23
|
$
2.41
|
1 Q4 2019 revenues include revenues attributable to
56 days and 20 days of production from the Company's acquisitions
of assets in Oklahoma (the
"Oklahoma Acquisition") and assets from Buckhorn Resources GP, LLC
and certain of its affiliates (the "Buckhorn Acquisition") and
revenues attributable to certain prior period production recognized
in Q4 2019.
2 Q4 2019 run-rate production includes production
attributable to assets acquired in the Oklahoma Acquisition and the
Buckhorn Acquisition and excludes production attributable to prior
periods that was recognized in Q4 2019.
3 Cash G&A per Boe is a non-GAAP financial
measure. See Non-GAAP Financial Measures at the end of this
news release for definition.
4 Q4 2019 run-rate production includes production
attributable to assets acquired in the Oklahoma Acquisition and the
Buckhorn Acquisition and excludes production attributable to
certain prior periods that was recognized in Q4 2019.
View original
content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-fourth-quarter-and-full-year-2019-results-301012248.html
SOURCE Kimbell Royalty Partners, LP