FORT WORTH, Texas, Oct. 23,
2020 /PRNewswire/ -- Kimbell Royalty Partners, LP
(NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas
mineral and royalty interests in more than 96,000 gross wells
across 28 states, today announced that the Board of Directors
of Kimbell Royalty GP, LLC, Kimbell's general partner, approved a
cash distribution payment of 75% of projected cash available for
distribution for the third quarter of 2020, or $0.19 per common unit. The distribution
will be payable on November 9, 2020
to common unitholders of record at the close of business on
November 2, 2020. Kimbell
intends to utilize the remaining 25% of Q3 2020 projected cash
available for distribution to pay down a portion of the outstanding
borrowings under Kimbell's credit facility.
Kimbell -
Supplemental Distribution Data
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Percent
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Q2 2020
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Q3 2020
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Change
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WTI Average Crude Oil
Price(1)
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$27.81
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$40.89
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47.0%
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Henry Hub Average
Natural Gas Price (1)
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$1.71
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$2.00
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17.0%
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Common Unit
Distribution Declared
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$0.13
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$0.19
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46.2%
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Pay-Out Ratio
(2)
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75%
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75%
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0.0%
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Annualized Cash
Yield (3)
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12.3%
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Cash Received from
Lease Bonuses and Other Income
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$68,609
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$15,916
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SUBSTANTIALLY ALL
OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE THIRD QUARTER OF
2020
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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 monthly 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)
Represents percentage of projected cash available for
distribution to be paid in quarterly distribution
declared.
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(3)
Based on the closing price of Kimbell common units on October
23, 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 deductions and production from the mineral and
royalty interests owned by Kimbell Royalty Operating, LLC.
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
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 96,000 gross wells with over 40,000 wells in the Permian
Basin. To learn more, visit kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements,
including statements relating to the tax treatment of Kimbell's
distributions. These and other forward-looking statements involve
risks and uncertainties, including risks and uncertainties relating
to Kimbell Royalty Operating, LLC's realized income and depletions
deductions and production from the mineral and royalty interests
owed by Kimbell Royalty Operating, LLC, Kimbell's business and the
securities markets generally and other risks described in Kimbell's
Annual Report on Form 10-K and other filings with the Securities
and Exchange Commission (the "SEC"), available at the SEC's website
at www.sec.gov. 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. 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.
Contact:
Rick Black
Dennard Lascar Investor
Relations
krp@dennardlascar.com
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP