FORT WORTH, Texas, Nov. 5,
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 96,000
gross wells across 28 states, today announced financial and
operating results for the quarter ended September 30, 2020.
Third Quarter 2020 Highlights
- Q3 2020 daily production of 14,160 barrels of oil equivalent
("Boe") per day (6:1)
- Q3 2020 production was composed of approximately 59% from
natural gas and approximately 41% from liquids (28% from oil and
13% from natural gas liquids ("NGL")) (6:1)
- Q3 2020 oil, natural gas and NGL revenues of $24.3 million, an increase of 45% from Q2 2020,
reflecting improved realized commodity prices
- Q3 2020 realized hedging gains of approximately $675,000; substantial portion of projected oil
and natural gas production hedged through Q3 2022
- Q3 2020 net loss of $25.7 million
and Q3 2020 net loss attributable to common units of $17.8 million. The Q3 2020 net loss amount was
primarily due to a non-cash ceiling test impairment expense of
$22.2 million related to continued
substantial weakness in commodity prices
- Q3 2020 consolidated Adjusted EBITDA of $17.1 million
- As of September 30, 2020,
Kimbell's major properties had 794 gross (2.62 net) drilled but
uncompleted wells ("DUCs") and 573 gross (1.84 net) permitted
locations on its acreage
- As of September 30, 2020, Kimbell
had 30 rigs actively drilling on its acreage, which represented
12.0%1 market share of all rigs drilling in the
continental United States as of
such time
- Announced a Q3 2020 cash distribution of $0.19 per common unit, reflecting a payout ratio
of 75% of cash available for distribution; implies a 12.4%
annualized yield based on the November 4,
2020 closing price of $6.11
per common unit; Kimbell intends to utilize the remaining 25% of
its cash available for distribution to repay a portion of the
outstanding borrowings under Kimbell's revolving credit
facility
1 Based on Kimbell rig count of 30 and Baker
Hughes U.S. land rig count of 251 as of October 2, 2020.
Robert Ravnaas, Chairman and
Chief Executive Officer of Kimbell's general partner commented, "I
am very pleased with our third quarter 2020 results, once again
proving the resilience of our business model. Production
curtailments, which were put in place by certain operators during
the height of the pandemic earlier this year, were largely reversed
in the Permian and Eagle Ford during the third quarter of
2020. However, curtailments were still largely in place on
our Bakken assets as of the end of the third quarter of 2020.
We are hopeful that these will also reverse in the fourth quarter
of 2020 given improved differentials and commodity
prices.
We are very excited to see the forecasted improvement in natural
gas prices both in the fourth quarter of 2020 and full year 2021
based on the futures curve. With approximately 59% of our
daily production from natural gas, this price improvement could
have a meaningful positive impact on our future cash flows and
quarterly distribution payments. To put this in perspective,
natural gas prices have averaged $2.02 per Mcf so far this year. The average
forecasted natural gas price for full-year 2021 based on the
futures curve is $3.03, which if it
materializes would be a 50% improvement over 2020 year-to-date
natural gas prices. We have a substantial amount of drilling
inventory located across the major natural gas basins in
the United States, with a
concentration in the core areas of the Haynesville and
Marcellus. We hope to benefit from this significant natural
gas drilling inventory for years to come. "
Third Quarter 2020 Distribution and Debt Repayment
On October 23, 2020, the Board of
Directors of Kimbell Royalty GP, LLC, Kimbell's general partner
(the "Board of Directors"), approved a cash distribution payment to
common unitholders of 75% of 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. The Board of Directors
will review the distribution policy quarterly. Kimbell plans
to utilize the remaining 25% of cash available for distribution for
the third quarter of 2020 to pay down a portion of the outstanding
borrowings under Kimbell's revolving credit facility.
Kimbell expects that substantially all of its third quarter
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 that 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) will
be taxable dividend income.
Financial Highlights
Kimbell's third quarter 2020 average realized price per Bbl of
oil was $38.36, per Mcf of natural
gas was $1.76, per Bbl of NGLs was
$13.42 and per Boe combined was
$18.67.
During the third quarter of 2020, the Company's total revenues
were $18.4 million, net loss was
$25.7 million and net loss
attributable to common units was $17.8
million, or $0.50 per common
unit. The net loss during the third quarter of 2020 was
primarily due to a $22.2 million
non-cash ceiling test impairment expense recorded during the
quarter related to the continued substantial weakness in commodity
prices. This non-cash ceiling test impairment 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.
Total third quarter 2020 consolidated Adjusted EBITDA was
$17.1 million (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).
In the third quarter of 2020, G&A expense was $6.1
million, $3.7 million of which was Cash G&A expense,
or $2.81 per Boe (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 the third quarter of
2020, which is a non-cash G&A expense, was $2.4
million or $1.88 per Boe.
In spite of further stabilization in the oil and natural gas
markets and improved differentials and commodity prices, Kimbell
believes that the ongoing COVID-19 outbreak and potential
supply/demand imbalances in the oil and natural gas markets could
continue to have an adverse effect on Kimbell's business,
production, cash flows, financial condition and results of
operations in the fourth quarter of 2020.
At September 30, 2020, Kimbell had
approximately $169.7 million in debt
outstanding under its revolving credit facility, total debt to
third quarter 2020 trailing twelve month consolidated Adjusted
EBITDA of approximately 2.2x and was in compliance with all
financial covenants under its revolving credit facility.
At the end of the third quarter, Kimbell had approximately
$55.3 million in undrawn capacity (or
approximately $130.3 million if
aggregate commitments were equal to Kimbell's 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.
Production
Third quarter 2020 average daily production was 14,160 Boe per
day (6:1), composed of approximately 59% from natural gas (6:1) and
approximately 41% from liquids (28% from oil and 13% from
NGLs).
Operational Update
As of September 30, 2020,
Kimbell's major properties had 794 gross (2.62 net) DUCs and 573
gross (1.84 net) permitted locations on its acreage. In
addition, as of September 30, 2020,
Kimbell had 30 rigs actively drilling on its acreage, which
represents an approximate 12.0% market share of all land rigs
drilling in the continental United
States as of such time.
Basin
|
Gross DUCs as of
September 30, 2020(1)
|
Gross Permits as
of September 30, 2020(1)
|
Net DUCs as of
September 30, 2020(1)
|
Net Permits as of
September 30, 2020(1)
|
Permian
|
235
|
201
|
0.75
|
0.61
|
Mid-Continent
|
109
|
70
|
0.23
|
0.07
|
Haynesville
|
61
|
19
|
0.37
|
0.07
|
Bakken
|
150
|
158
|
0.12
|
0.32
|
Eagle Ford
|
98
|
49
|
0.53
|
0.34
|
Appalachia
|
53
|
44
|
0.24
|
0.14
|
Rockies
|
88
|
32
|
0.38
|
0.29
|
Total
|
794
|
573
|
2.62
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
These figures pertain only to Kimbell's major properties and
do not include possible additional DUCs and permits from Kimbell's
minor properties, which are time consuming to quantify but, in the
experience of Kimbell's management, can be significant in the
aggregate.
|
Hedging Update
The following provides information concerning Kimbell's hedge
book as of September 30, 2020:
Kimbell Royalty
Partners
|
Hedge
Program
|
|
|
|
|
|
|
|
Fixed Price Swaps as of September 30,
2020
|
|
|
|
|
Weighted
Average
|
|
|
Volumes
|
Fixed
Price
|
|
|
Oil
|
Nat
Gas
|
Oil
|
Nat
Gas
|
|
|
BBL
|
MMBTU
|
$/BBL
|
$/MMBTU
|
|
4Q 2020
|
134,964
|
1,735,672
|
$
41.61
|
$
2.54
|
|
1Q 2021
|
132,030
|
1,697,940
|
$
44.43
|
$
2.83
|
|
2Q 2021
|
133,497
|
1,716,806
|
$
44.60
|
$
2.45
|
|
3Q 2021
|
134,964
|
1,735,672
|
$
43.44
|
$
2.41
|
|
4Q 2021
|
134,964
|
1,735,672
|
$
44.58
|
$
2.49
|
|
1Q 2022
|
132,030
|
1,697,940
|
$
36.76
|
$
2.61
|
|
2Q 2022
|
119,938
|
1,516,697
|
$
41.77
|
$
2.23
|
|
3Q 2022
|
139,196
|
1,759,316
|
$
43.52
|
$
2.44
|
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
third quarter 2020 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 November 12,
2020, by dialing 201-612-7415 and using the conference ID
13710674#. 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 November 5, 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 over 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
http://www.kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements, in
particular statements relating to Kimbell's financial, operating
and production results and prospects for growth, the tax treatment
of Kimbell's distributions, future natural gas and other commodity
prices, changes to supply and demand for oil, natural gas and NGLs
and the recent COVID-19 outbreak and its impacts on Kimbell and on
the oil and gas industry. These and other forward-looking
statements involve risks and uncertainties, including risks that
the anticipated benefits of the acquisition of the Springbok assets
are not realized, risks relating to Kimbell's integration of the
Springbok assets, risks relating to the COVID-19 outbreak, and
uncertainties relating to 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 impact of COVID-19 on the global economy and
Kimbell's business, risks relating 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 relating to 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 Springbok assets, risks relating to
tax matters, 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. 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)
|
|
|
September
30,
|
|
2020
|
Assets:
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
12,348
|
Oil, natural gas and
NGL receivables
|
|
16,039
|
Accounts receivable
and other current assets
|
|
947
|
Total current
assets
|
|
29,334
|
Property and
equipment, net
|
|
1,167
|
Investment in
affiliate (equity method)
|
|
4,707
|
Oil and natural gas
properties
|
|
|
Oil and natural gas
properties (full cost method)
|
|
1,148,983
|
Less: accumulated
depreciation, depletion and impairment
|
|
(523,403)
|
Total oil and natural
gas properties, net
|
|
625,580
|
Right-of-use assets,
net
|
|
3,194
|
Loan origination
costs, net
|
|
1,469
|
Total
assets
|
$
|
665,451
|
Liabilities,
mezzanine equity and unitholders' equity:
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
$
|
996
|
Other current
liabilities
|
|
5,843
|
Commodity derivative
liabilities
|
|
992
|
Total current
liabilities
|
|
7,831
|
Operating lease
liabilities, excluding current portion
|
|
2,919
|
Commodity derivative
liabilities
|
|
2,699
|
Long-term
debt
|
|
169,701
|
Total
liabilities
|
|
183,150
|
Commitments and
contingencies
|
|
|
Mezzanine
equity:
|
|
|
Series A preferred
units
|
|
42,051
|
Unitholders'
equity:
|
|
|
Common
units
|
|
325,048
|
Class B
units
|
|
1,039
|
Total unitholders'
equity
|
|
326,087
|
Noncontrolling
interest
|
|
114,163
|
Total
equity
|
|
440,250
|
Total liabilities,
mezzanine equity and unitholders' equity
|
$
|
665,451
|
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
|
|
September 30, 2020
|
|
September 30,
2019
|
Revenue
|
|
|
|
|
|
Oil, natural gas and
NGL revenues
|
$
|
24,326
|
|
$
|
29,531
|
Lease bonus and other
income
|
|
16
|
|
|
941
|
(Loss) gain on
commodity derivative instruments, net
|
|
(5,898)
|
|
|
2,507
|
Total
revenues
|
|
18,444
|
|
|
32,979
|
Costs and
expenses
|
|
|
|
|
|
Production and ad
valorem taxes
|
|
1,840
|
|
|
2,236
|
Depreciation and
depletion expense
|
|
10,705
|
|
|
15,098
|
Impairment of oil and
natural gas properties
|
|
22,237
|
|
|
34,880
|
Marketing and other
deductions
|
|
2,512
|
|
|
2,332
|
General and
administrative expenses
|
|
6,111
|
|
|
5,695
|
Total costs and
expenses
|
|
43,405
|
|
|
60,241
|
Operating
loss
|
|
(24,961)
|
|
|
(27,262)
|
Other income
(expense)
|
|
|
|
|
|
Equity income (loss)
in affiliate
|
|
293
|
|
|
(81)
|
Interest
expense
|
|
(1,603)
|
|
|
(1,468)
|
Other
expense
|
|
(100)
|
|
|
—
|
Net loss before
income taxes
|
|
(26,371)
|
|
|
(28,811)
|
(Benefit from)
provision for income taxes
|
|
(694)
|
|
|
103
|
Net
loss
|
|
(25,677)
|
|
|
(28,914)
|
Distribution and
accretion on Series A preferred units
|
|
(1,578)
|
|
|
(3,470)
|
Net loss attributable
to noncontrolling interests
|
|
9,482
|
|
|
16,146
|
Distributions on
Class B units
|
|
(23)
|
|
|
(23)
|
Net loss
attributable to common units
|
$
|
(17,796)
|
|
$
|
(16,261)
|
|
|
|
|
|
|
Basic
|
$
|
(0.50)
|
|
$
|
(0.73)
|
Diluted
|
$
|
(0.50)
|
|
$
|
(0.73)
|
Weighted average
number of common units outstanding
|
|
|
|
|
|
Basic
|
|
35,423,112
|
|
|
22,399,748
|
Diluted
|
|
35,423,112
|
|
|
22,399,748
|
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,
non-cash unit-based compensation, unrealized gains and losses on
commodity derivative instruments, equity income from affiliates,
impairment of oil and natural gas properties, income taxes and
depreciation and depletion expense, and adjusted for distributions
from equity investments. 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
|
|
September 30, 2020
|
|
September 30,
2019
|
Reconciliation of
net cash provided by operating activities
|
|
|
|
|
|
to Adjusted
EBITDA
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
12,379
|
|
$
|
24,835
|
Interest
expense
|
|
1,603
|
|
|
1,468
|
(Benefit from)
provision for income taxes
|
|
(694)
|
|
|
103
|
Impairment of oil and
natural gas properties
|
|
(22,237)
|
|
|
(34,880)
|
Amortization of
right-of-use assets
|
|
(70)
|
|
|
(65)
|
Amortization of loan
origination costs
|
|
(276)
|
|
|
(266)
|
Equity income (loss)
in affiliate
|
|
293
|
|
|
(81)
|
Forfeiture of
restricted units
|
|
13
|
|
|
—
|
Unit-based
compensation
|
|
(2,446)
|
|
|
(1,810)
|
(Loss) gain on
commodity derivative instruments, net of settlements
|
|
(6,573)
|
|
|
1,684
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Oil, natural
gas and NGL revenues receivable
|
|
4,273
|
|
|
(1,938)
|
Accounts
receivable and other current assets
|
|
559
|
|
|
64
|
Accounts
payable
|
|
195
|
|
|
11
|
Other current
liabilities
|
|
(1,151)
|
|
|
(1,461)
|
Operating
lease liabilities
|
|
69
|
|
|
91
|
Consolidated
EBITDA
|
$
|
(14,063)
|
|
$
|
(12,245)
|
Add:
|
|
|
|
|
|
Impairment of oil and
natural gas properties
|
|
22,237
|
|
|
34,880
|
Unit-based
compensation
|
|
2,446
|
|
|
1,810
|
Loss (gain) on
commodity derivative instruments, net of settlements
|
|
6,573
|
|
|
(1,684)
|
Cash distribution
from affiliate
|
|
211
|
|
|
—
|
Equity income in
affiliate
|
|
(293)
|
|
|
—
|
Consolidated Adjusted
EBITDA
|
$
|
17,111
|
|
$
|
22,761
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(5,953)
|
|
|
(11,349)
|
Adjusted EBITDA
attributable to Kimbell Royalty Partners, LP
|
$
|
11,158
|
|
$
|
11,412
|
Kimbell Royalty
Partners, LP
Supplemental
Schedules
(Unaudited, in
thousands, except for per-unit data and unit counts)
|
|
|
Three Months
Ended
|
|
September 30,
2020
|
|
|
|
Net
loss
|
$
|
(25,677)
|
Depreciation and
depletion expense
|
|
10,705
|
Interest
expense
|
|
1,603
|
Benefit from income
taxes
|
|
(694)
|
Consolidated
EBITDA
|
$
|
(14,063)
|
Impairment of oil and
natural gas properties
|
|
22,237
|
Unit-based
compensation
|
|
2,446
|
Loss on commodity
derivative instruments, net of settlements
|
|
6,573
|
Cash distribution
from affiliate
|
|
211
|
Equity income in
affiliate
|
|
(293)
|
Consolidated Adjusted
EBITDA
|
$
|
17,111
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(5,953)
|
Adjusted EBITDA
attributable to Kimbell Royalty Partners, LP
|
$
|
11,158
|
|
|
|
Adjustments to
reconcile Adjusted EBITDA to cash available
|
|
|
for
distribution
|
|
|
Cash interest
expense
|
|
902
|
Cash distributions on
Series A preferred units
|
|
628
|
Distributions on
Class B units
|
|
23
|
Cash available for
distribution on common units
|
$
|
9,605
|
|
|
|
Common units
outstanding on September 30, 2020
|
|
38,948,023
|
|
|
|
Cash available for
distribution per common unit outstanding
|
$
|
0.25
|
|
|
|
Common units
outstanding on November 2, 2020 Record Date
|
|
38,948,023
|
|
|
|
Third quarter 2020
distribution declared (1)
|
$
|
0.19
|
|
|
|
|
|
(1) The
difference between the declared distribution and the cash available
for distribution is primarily attributable to Kimbell allocating
25% of cash available for distribution to pay outstanding
borrowings under its revolving credit facility.
|
Kimbell Royalty
Partners, LP
Supplemental
Schedules
(Unaudited, in
thousands, except for 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)
|
|
|
Three Months
Ended
|
|
September 30,
2020
|
|
|
|
Net
loss
|
$
|
(25,677)
|
Depreciation and
depletion expense
|
|
10,705
|
Interest
expense
|
|
1,603
|
Benefit from income
taxes
|
|
(694)
|
Consolidated
EBITDA
|
$
|
(14,063)
|
Impairment of oil and
natural gas properties
|
|
22,237
|
Unit-based
compensation
|
|
2,446
|
Loss on commodity
derivative instruments, net of settlements
|
|
6,573
|
Cash distribution
from affiliate
|
|
211
|
Equity income in
affiliate
|
|
(293)
|
Consolidated Adjusted
EBITDA
|
$
|
17,111
|
|
|
|
Q4 2019 - Q2 2020
Consolidated Adjusted EBITDA (1)
|
|
61,649
|
Trailing Twelve Month
Consolidated Adjusted EBITDA
|
$
|
78,760
|
|
|
|
Long-term debt (as of
9/30/20)
|
|
169,701
|
Debt to Trailing
Twelve Month Consolidated Adjusted EBITDA
|
|
2.2x
|
|
(1) The
consolidated Adjusted EBITDA for each of the quarters ended
December 31, 2019, March 31, 2020 and June 30, 2020 was previously
reported in a news release relating to the applicable quarter, and
the reconciliation of net loss to consolidated Adjusted EBITDA for
each quarter is included in the applicable news release. This
also includes the pro forma results from the Springbok acquisition
that closed in April 2020 in accordance with the credit
agreement.
|
View original
content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-third-quarter-2020-results-301166913.html
SOURCE Kimbell Royalty Partners, LP