COST: 31.8 $MM
VOLUMES: 270 BOE/d
ACRES: 400 Acres
COST: 107.8 $MM
VOLUMES: 1.19 MBOE/d
ACRES: 16700 Acres
COST: 15.9
VOLUMES: 272 BOE/d
ACRES: 6700 Acres
FORT WORTH, Texas, Jan. 22, 2021 /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 fourth quarter of 2020, or $0.19 per common unit. The distribution will be payable on February 8, 2021 to common unitholders of record at the close of business on February 1, 2021. Kimbell intends to utilize the remaining 25% of Q4 2020 projected cash available for distribution to pay down a portion of the outstanding borrowings under Kimbell's credit facility. During 2020, Kimbell paid down $21.2 million of outstanding borrowings under its credit facility from allocating a portion of its cash available for distribution for debt pay down.
Kimbell - Supplemental Distribution Data | ||||||
Percent | ||||||
Q3 2020 | Q4 2020 | Change | ||||
WTI Average Crude Oil Price(1) | $40.89 | $42.45 | 3.8% | |||
Henry Hub Average Natural Gas Price (1) | $2.00 | $2.53 | 26.5% | |||
Common Unit Distribution Declared | $0.19 | $0.19 | 0.0% | |||
Pay-Out Ratio (2) | 75% | 75% | 0.0% | |||
Annualized Cash Yield (3) | 8.7% | |||||
Cash Received from Lease Bonuses and Other Income | $15,916 | $31,927 | ||||
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE FOURTH QUARTER OF 2020 | ||||||
EXPECTED TO BE FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL(4) | ||||||
(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. | ||||||
(2) Represents percentage of projected cash available for distribution to be paid in quarterly distribution declared. | ||||||
(3) Based on the closing price of Kimbell common units on January 22, 2021. | ||||||
(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. | ||||||
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
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-declares-fourth-quarter-2020-distribution-301213446.html
SOURCE Kimbell Royalty Partners, LP
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
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
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 | ||||||
Percent | ||||||
Q2 2020 | Q3 2020 | Change | ||||
WTI Average Crude Oil Price(1) | $27.81 | $40.89 | 47.0% | |||
Henry Hub Average Natural Gas Price (1) | $1.71 | $2.00 | 17.0% | |||
Common Unit Distribution Declared | $0.13 | $0.19 | 46.2% | |||
Pay-Out Ratio (2) | 75% | 75% | 0.0% | |||
Annualized Cash Yield (3) | 12.3% | |||||
Cash Received from Lease Bonuses and Other Income | $68,609 | $15,916 | ||||
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE THIRD QUARTER OF 2020 | ||||||
EXPECTED TO BE FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL(4) |
(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. | ||||||
(2) Represents percentage of projected cash available for distribution to be paid in quarterly distribution declared. | ||||||
(3) Based on the closing price of Kimbell common units on October 23, 2020. | ||||||
(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. |
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
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-declares-third-quarter-2020-distribution-301159049.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Sept. 21, 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 it will release its third quarter 2020 financial results on Thursday, November 5, 2020, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through November 12th by dialing 201-612-7415 and using the conference ID: 13710674#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Kimbell Royalty Partners
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 96,000 gross wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-third-quarter-2020-earnings-release-and-conference-call-301134963.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Sept. 14, 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 it plans to participate in the Credit Suisse Oil & Gas Royalty Mineral Investor Day, a virtual event on Wednesday, September 16, 2020.
About Kimbell Royalty Partners
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 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-credit-suisse-oil--gas-royalty-mineral-investor-day-301128196.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Aug. 6, 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 second quarter ended June 30, 2020.
Second Quarter 2020 Highlights
____________________________ |
1 Based on Kimbell rig count (including Springbok) of 29 and Baker Hughes U.S. land rig count of 251 as of July 2, 2020. |
Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell's general partner commented, "We are encouraged by what we see as a gradual recovery in both commodity prices and the U.S. economy and are cautiously optimistic that the worst is behind us with regard to production curtailments. Despite challenges during the second quarter, we believe we benefited from the full integration of the Springbok assets and increased our Q2 2020 payout ratio from 50% to 75% of cash available for distribution. We believe the Kimbell business model is highly differentiated from most companies in the U.S. energy sector given our pure royalty model, diverse asset base, mix of commodities, substantial hedges and low PDP decline rate, which is among the best in the industry. While many risks and uncertainties remain in the economy and surrounding the continuing COVID-19 crisis, we believe Kimbell is well-positioned to manage its business through these challenges."
Second Quarter 2020 Distribution and Debt Repayment
On July 24, 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 second quarter of 2020, or $0.13 per common unit. The cash distribution will be payable on August 10, 2020 to common unitholders of record at the close of business on August 3, 2020. The Board of Directors will review the distribution policy quarterly. Kimbell expects to utilize the remaining 25% of cash available for distribution for the second quarter of 2020 to pay-down $2.5 million of outstanding borrowings under Kimbell's credit facility.
Kimbell expects that substantially all of its second 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 second quarter 2020 average realized price per Bbl of oil was $24.89, per Mcf of natural gas was $1.44, per Bbl of NGLs was $7.87 and per Boe combined was $13.09.
During the second quarter of 2020, the Company's total revenues were $12.8 million, net loss was $76.8 million and net loss attributable to common units was $48.0 million, or $1.39 per common unit. The net loss during the second quarter of 2020 was primarily due to a $65.5 million non-cash ceiling test impairment expense recorded during the quarter related to the 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 second quarter 2020 consolidated Adjusted EBITDA was $12.1 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). Our second quarter 2020 consolidated Adjusted EBITDA was reduced by a one-time $300,000 expense related to the transition services agreement entered into in connection with our acquisition of the Springbok assets.
G&A expense was $6.9 million in Q2 2020, $4.3 million of which was Cash G&A expense, or $3.48 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 Q2 2020, which is a non-cash G&A expense, was $2.5 million or $2.04 per Boe. Cash G&A expense per Boe was increased by a one-time $300,000 expense related to the transition services agreement entered into in connection with our acquisition of the Springbok assets.
Although there has been stabilization in the oil and natural gas markets since the second quarter, 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 second half of 2020.
At June 30, 2020, Kimbell had approximately $171.7 million in debt outstanding under its revolving credit facility, total debt to Q2 2020 trailing twelve month consolidated Adjusted EBITDA of approximately 2.3x and was in compliance with all financial covenants under its revolving credit facility.
After giving effect to $477,051 in borrowings to fund acquisitions under Kimbell's micro investment strategy so far in Q3 2020 and the repayment of $2.5 million in outstanding borrowings discussed above, which is anticipated to occur in Q3 2020, Kimbell expects to have approximately $169.7 million in outstanding borrowings under its revolving credit facility and 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
Second quarter 2020 average daily production was 14,254 Boe per day (6:1), which consisted of 185 Boe per day relating to prior period production recognized in Q2 2020 and 14,069 Boe per day of run-rate production. The 14,069 Boe per day of run-rate production for Q2 2020 was comprised of approximately 41% from liquids (28% from oil and 13% from NGLs) and approximately 59% from natural gas (6:1). The prior period production recognized in Q2 2020 was primarily due to new wells outperforming estimates.
Operational Update
As of June 30, 2020, Kimbell had 806 gross (2.98 net) DUCs and 611 gross (2.25 net) permitted locations on its acreage. In addition, as of June 30, 2020, Kimbell had 29 rigs actively drilling on its acreage, which represents an approximate 11.6% market share of all land rigs drilling in the continental United States as of such time.
Basin | Gross DUCs as of | Gross Permits as of | Net DUCs as of | Net Permits as of |
Permian | 202 | 187 | 0.83 | 0.65 |
Mid-Continent | 106 | 94 | 0.28 | 0.09 |
Haynesville | 67 | 22 | 0.49 | 0.16 |
Bakken | 190 | 156 | 0.18 | 0.33 |
Eagle Ford | 97 | 52 | 0.63 | 0.39 |
Appalachia | 51 | 44 | 0.17 | 0.20 |
Rockies | 93 | 56 | 0.40 | 0.43 |
Total | 806 | 611 | 2.98 | 2.25 |
(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 June 30, 2020:
Fixed Price Swaps as of June 30, 2020 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
3Q 2020 | 134,964 | 1,735,672 | $ 40.62 | $ 2.31 |
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 |
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 second 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 August 13, 2020, by dialing 201-612-7415 and using the conference ID 13704472#. 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 August 6, 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 the acquisition of the Springbok assets, Kimbell's financial, operating and production results and prospects for growth, the tax treatment of Kimbell's distributions 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) | ||
June 30, | ||
2020 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 11,262 |
Oil, natural gas and NGL receivables | 11,767 | |
Commodity derivative assets | 3,232 | |
Accounts receivable and other current assets | 387 | |
Total current assets | 26,648 | |
Property and equipment, net | 1,231 | |
Investment in affiliate (equity method) | 4,148 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 1,148,913 | |
Less: accumulated depreciation, depletion and impairment | (490,530) | |
Total oil and natural gas properties, net | 658,383 | |
Right-of-use assets, net | 3,264 | |
Loan origination costs, net | 1,684 | |
Total assets | $ | 695,358 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 1,190 |
Other current liabilities | 4,692 | |
Total current liabilities | 5,882 | |
Operating lease liabilities, excluding current portion | 2,989 | |
Commodity derivative liabilities | 350 | |
Long-term debt | 171,724 | |
Total liabilities | 180,945 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 41,435 | |
Unitholders' equity: | ||
Common units | 328,680 | |
Class B units | 1,157 | |
Total unitholders' equity | 329,837 | |
Noncontrolling interest | 143,141 | |
Total equity | 472,978 | |
Total liabilities, mezzanine equity and unitholders' equity | $ | 695,358 |
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 | ||||
June 30, 2020 | June 30, 2019 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 16,775 | $ | 27,914 | |
Lease bonus and other income | 69 | 1,289 | |||
(Loss) gain on commodity derivative instruments, net | (4,041) | 2,734 | |||
Total revenues | 12,803 | 31,937 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 1,455 | 1,925 | |||
Depreciation and depletion expense | 12,026 | 12,311 | |||
Impairment of oil and natural gas properties | 65,536 | 28,147 | |||
Marketing and other deductions | 2,049 | 1,749 | |||
General and administrative expenses | 6,865 | 6,221 | |||
Total costs and expenses | 87,931 | 50,353 | |||
Operating loss | (75,128) | (18,416) | |||
Other income (expense) | |||||
Equity income in affiliate | 4 | — | |||
Interest expense | (1,666) | (1,442) | |||
Net loss before income taxes | (76,790) | (19,858) | |||
Provision for income taxes | — | 508 | |||
Net loss | (76,790) | (20,366) | |||
Distribution and accretion on Series A preferred units | (1,578) | (3,470) | |||
Net loss attributable to noncontrolling interests | 30,362 | 12,101 | |||
Distributions on Class B units | (23) | (23) | |||
Net loss attributable to common units | $ | (48,029) | $ | (11,758) | |
Basic | $ | (1.39) | $ | (0.54) | |
Diluted | $ | (1.39) | $ | (0.54) | |
Weighted average number of common units outstanding | |||||
Basic | 34,650,317 | 21,727,185 | |||
Diluted | 34,650,317 | 21,727,185 |
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 | ||||
June 30, 2020 | June 30, 2019 | ||||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA | |||||
Net cash provided by operating activities | $ | 14,757 | $ | 23,332 | |
Interest expense | 1,666 | 1,442 | |||
Provision for income taxes | — | 508 | |||
Impairment of oil and natural gas properties | (65,536) | (28,147) | |||
Amortization of right-of-use assets | (68) | (11) | |||
Amortization of loan origination costs | (266) | (260) | |||
Equity income in affiliate | 4 | — | |||
Forfeiture of restricted units | 107 | — | |||
Unit-based compensation | (2,534) | (2,113) | |||
(Loss) gain on commodity derivative instruments, net of settlements | (6,902) | 2,604 | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL revenues receivable | (2,491) | (2,600) | |||
Accounts receivable and other current assets | (198) | (167) | |||
Accounts payable | (434) | 257 | |||
Other current liabilities | (1,271) | (960) | |||
Operating lease liabilities | 68 | 10 | |||
Consolidated EBITDA | $ | (63,098) | $ | (6,105) | |
Add: | |||||
Impairment of oil and natural gas properties | 65,536 | 28,147 | |||
Unit-based compensation | 2,534 | 2,113 | |||
Loss (gain) on commodity derivative instruments, net of settlements | 6,902 | (2,604) | |||
Cash distribution from equity method investee | 229 | — | |||
Equity income in affiliate | (4) | — | |||
Consolidated Adjusted EBITDA | $ | 12,099 | $ | 21,551 | |
Adjusted EBITDA attributable to noncontrolling interest | (4,688) | (10,941) | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 7,411 | $ | 10,610 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands, except for per-unit data and unit counts) | ||
Three Months Ended | ||
June 30, 2020 | ||
Net loss | $ | (76,790) |
Depreciation and depletion expense | 12,026 | |
Interest expense | 1,666 | |
Consolidated EBITDA | $ | (63,098) |
Impairment of oil and natural gas properties | 65,536 | |
Unit-based compensation | 2,534 | |
Loss on commodity derivative instruments, net of settlements | 6,902 | |
Cash distribution from equity method investee | 229 | |
Equity income in affiliate | (4) | |
Consolidated Adjusted EBITDA | $ | 12,099 |
Adjusted EBITDA attributable to noncontrolling interest | (4,688) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 7,411 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 868 | |
Cash distributions on Series A preferred units | 590 | |
Distributions on Class B units | 23 | |
Cash available for distribution on common units | $ | 5,930 |
Common units outstanding on June 30, 2020 | 36,588,023 | |
Cash available for distribution per common unit outstanding | $ | 0.16 |
Common units outstanding on August 3, 2020 Record Date | 36,588,023 | |
Second quarter 2020 distribution declared (1) | $ | 0.13 |
(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 credit facility. Additionally, Kimbell utilized cash flows received from the Springbok acquisition after March 31, 2020, but prior to the closing date of April 17, 2020 to pay outstanding borrowings under its credit facility. Revenues, production and other financial and operating results from the Springbok acquisition are reflected in Kimbell's condensed consolidated financial statements from April 17, 2020 onward. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands, except for per-unit data and unit counts) | ||
Three Months Ended | ||
June 30, 2019 | ||
Net loss | $ | (20,366) |
Depreciation and depletion expense | 12,311 | |
Interest expense | 1,442 | |
Provision for income taxes | 508 | |
Consolidated EBITDA | $ | (6,105) |
Impairment of oil and natural gas properties | 28,147 | |
Unit-based compensation | 2,113 | |
Gain on commodity derivative instruments, net of settlements | (2,604) | |
Consolidated Adjusted EBITDA | $ | 21,551 |
Adjusted EBITDA attributable to non-controlling interest | (10,941) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners LP | $ | 10,610 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 583 | |
Cash distributions on Series A preferred units | 948 | |
Cash income tax expense (1) | 504 | |
Distributions on Class B units | 23 | |
Cash reserves (1) | (504) | |
Cash available for distribution on common units | $ | 9,056 |
Common units outstanding on June 30, 2019 | 23,094,135 | |
Cash available for distribution per common unit outstanding | $ | 0.39 |
Common units outstanding on August 5, 2019 Record Date | 23,494,135 | |
Second quarter 2019 distribution declared | $ | 0.39 |
(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 | ||
June 30, 2020 | ||
Net loss | $ | (76,790) |
Depreciation and depletion expense | 12,026 | |
Interest expense | 1,666 | |
Consolidated EBITDA | $ | (63,098) |
Impairment of oil and natural gas properties | 65,536 | |
Unit-based compensation | 2,534 | |
Loss on commodity derivative instruments, net of settlements | 6,902 | |
Cash distribution from equity method investee | 229 | |
Equity income in affiliate | (4) | |
Consolidated Adjusted EBITDA | $ | 12,099 |
Q3 2019 - Q1 2020 Consolidated Adjusted EBITDA (1) | 61,882 | |
Trailing Twelve Month Consolidated Adjusted EBITDA | $ | 73,981 |
Long-term debt (as of 6/30/20) | 171,724 | |
Debt to Trailing Twelve Month Consolidated Adjusted EBITDA | 2.3x |
(1) The consolidated Adjusted EBITDA for each of the quarters ended September 30, 2019, December 31, 2019 and March 31, 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. |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-second-quarter-2020-results-301107302.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 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 96,000 gross wells across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, Kimbell's general partner (the "Board of Directors") approved a cash distribution payment of 75% of projected cash available for distribution for the second quarter of 2020, or $0.13 per common unit. The distribution will be payable on August 10, 2020 to common unitholders of record at the close of business on August 3, 2020.
"Since our last quarterly distribution declaration in April 2020, we are encouraged by the gradual recovery in both commodity prices and the U.S. economy, including gasoline demand, retail sales and new home starts. We are also hopeful that the worst is behind us with regard to production curtailments, which appear to have peaked in May and early June 2020. However, many risks remain in the economy, including, but not limited to, significant recent increases in COVID-19 cases across the country, additional potential shut-downs related to COVID-19 and the related effects on U.S. employment. In addition, significant uncertainties remain in the U.S. energy sector, primarily related to the pace of new drilling and completions for the remainder of 2020. However, we believe the Kimbell business model is highly differentiated from most companies in the U.S. energy sector given our pure royalty model, diverse asset base, mix of commodities, substantial hedges and low PDP decline rate, which is among the best in the industry. As a result, management recommended and the Board of Directors approved an increase in the payout ratio of projected cash available for distribution from 50% in Q1 2020 to 75% in Q2 2020. We intend to utilize the remaining 25% of Q2 2020 projected cash available for distribution to pay down a portion of the outstanding borrowings under Kimbell's credit facility. We look forward to reporting operational and financial results and providing additional commentary on the U.S. minerals sector when we release earnings, which we expect to do on August 6, 2020," commented Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell's general partner.
Kimbell - Supplemental Distribution Data | ||||||
Percent | ||||||
Q1 2020 | Q2 2020 | Change | ||||
WTI Average Crude Oil Price(1) | $45.76 | $27.81 | (39.2%) | |||
Henry Hub Average Natural Gas Price (1) | $1.91 | $1.71 | (10.5%) | |||
Common Unit Distribution Declared | $0.17 | $0.13 | (23.5%) | |||
Pay-Out Ratio (2) | 50% | 75% | 50.0% | |||
Annualized Cash Yield (3) | 5.9% | |||||
Cash Received from Lease Bonuses and Other Income | $229,319 | $68,609 |
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE SECOND QUARTER OF 2020 | ||||||
EXPECTED TO BE FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL(4) | ||||||
(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. | ||||||
(2) Represents percentage of projected cash available for distribution to be paid in quarterly distribution declared. | ||||||
(3) Based on the closing price of Kimbell common units on July 24, 2020. | ||||||
(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 mineral and royalty interests Kimbell acquired in the acquisition of Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC (the "Springbok acquisition"), which closed on April 17, 2020, 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. |
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 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 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 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 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
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-declares-second-quarter-2020-distribution-301099624.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, June 22, 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 it will release its second quarter 2020 financial results on Thursday, August 6, 2020, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through August 13, 2020, by dialing 201-612-7415 and using the conference ID: 13704472#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Kimbell Royalty Partners
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 96,000 gross wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-second-quarter-2020-earnings-release-and-conference-call-301081315.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, June 8, 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 that the lenders under the Company's revolving credit facility unanimously reaffirmed the borrowing base at $300 million and total commitments of $225 million (or up to $300 million if the accordion feature is exercised). The borrowing base was reaffirmed in part because the assets acquired in the acquisition of equity interests in Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC provided support to Kimbell's existing, pre-acquisition borrowing base. Increases in commitments pursuant to the revolving credit facility's accordion feature are subject to the satisfaction of certain conditions, including obtaining additional commitments from new or existing lenders.
About Kimbell Royalty Partners
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 96,000 gross wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-unanimous-reaffirmation-of-borrowing-base-301072090.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, June 4, 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 its plans to participate in the following upcoming conferences:
About Kimbell Royalty Partners
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 96,000 gross wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-upcoming-investor-conferences-301070178.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 7, 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 first quarter ended March 31, 2020.
First Quarter 2020 Highlights
Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell's general partner commented, "We are pleased with our first quarter performance and, after giving effect to a full quarter of production and revenues attributable to the Springbok acquisition, we had record production and consolidated Adjusted EBITDA. Despite the positive start to this year, we are all responding and adjusting to the unprecedented global economic impact resulting from the COVID-19 pandemic and the uncertainties related to the U.S. oil market and the potential for production curtailments. We believe that we are well-positioned to weather this storm, with approximately 60% of our first quarter production coming from natural gas, for which the outlook appears increasingly strong, one of the lowest PDP decline rates in the industry, our robust fixed-price hedges for oil and natural gas and a strong balance sheet and liquidity position."
First Quarter 2020 Distribution and Debt Repayment
On April 24, 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 50% of cash available for distribution for the first quarter of 2020, or $0.17 per common unit. The Board of Directors also approved a $15 million repayment of outstanding borrowings under Kimbell's revolving credit facility. The cash distribution will be payable on May 11, 2020 to common unitholders of record at the close of business on May 4, 2020. The Board of Directors will review the distribution policy quarterly.
Kimbell expects that substantially all of its first 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
Total first quarter 2020 revenues were $35.9 million, compared to $17.9 million in the first quarter of 2019. First quarter 2020 net loss was $59.8 million, and net loss attributable to common units was $39.3 million, or $1.29 per common unit, compared to net loss attributable to common units of $3.7 million in the first quarter of 2019. The increase in net loss during the first quarter of 2020 was primarily due to a $70.9 million non-cash ceiling test impairment recorded during the quarter related to the substantial weakness in commodity prices driven by recent production disagreements among members of the Organization of Petroleum Exporting Countries ("OPEC") and other foreign, oil-exporting countries, coupled with decreased demand resulting from the COVID-19 pandemic and increasing supply by domestic producers. 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 first quarter 2020 consolidated Adjusted EBITDA grew to $18.8 million, compared to $16.1 million in the first quarter of 2019 (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 first quarter of 2020, average realized price per Bbl of oil was $44.48, per Mcf of natural gas was $1.75, per Bbl of NGLs was $12.22 and per Boe combined was $19.83.
G&A expense was $6.5 million in Q1 2020, $4.4 million of which was Cash G&A expense, or $3.85 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 Q1 2020, which is a non-cash G&A expense, was $2.1 million or $1.84 per Boe. Cash G&A expense including a full quarter of the Q1 2020 production attributable to the Springbok assets was $3.20 per Boe.
Kimbell believes that the ongoing COVID-19 outbreak and OPEC disagreements have generated a supply/demand imbalance in the oil and natural gas markets, and Kimbell expects that as the supply/demand imbalance continues, and as oil storage facilities reach capacity and/or purchasers of crude products cancel previous orders, more of its operators may adjust or reduce their drilling activities, which could have an adverse effect on Kimbell's business, production, cash flows, financial condition and results of operations in the second quarter of 2020.
As of March 31, 2020, Kimbell had outstanding 34,378,849 common units and 20,644,047 Class B units. As of May 7, 2020, Kimbell had outstanding 36,602,811 common units and 23,141,181 Class B units.
Production
First quarter 2020 average daily production was 13,358 Boe per day (6:1), which consisted of 756 Boe per day relating to prior period production recognized in Q1 2020 and 12,602 Boe per day of run-rate production. The 12,602 Boe per day of run-rate production for Q1 2020 was comprised of approximately 40% from liquids (27% from oil and 13% from NGLs) and approximately 60% from natural gas (6:1). The prior period production recognized in Q1 2020 was primarily due to new wells outperforming estimates. Including a full quarter of production attributable to the Springbok assets, Q1 2020 run-rate daily production was 15,188 Boe per day and was comprised of approximately 41% from liquids (28% from oil and 13% from NGLs) and approximately 59% from natural gas (6:1).
Operational Update
As of March 31, 2020, Kimbell had 882 gross (2.96 net) drilled but uncompleted wells ("DUCs") and 476 gross (2.35 net) permitted locations on its acreage. In addition, as of April 17, 2020, Kimbell had 70 rigs actively drilling on its acreage, which represents an approximate 13.7%2 market share of all land rigs drilling in the continental United States as of such time, up from 11.9%3 at year-end 2019.4
Basin | Gross DUCs as of | Gross Permits as of | Net DUCs as of | Net Permits as of | Active Rigs as of |
Permian | 168 | 111 | 0.85 | 0.53 | 33 |
Mid-Continent | 142 | 88 | 0.30 | 0.10 | 11 |
Haynesville | 67 | 20 | 0.40 | 0.19 | 9 |
Bakken | 221 | 86 | 0.22 | 0.26 | 8 |
Eagle Ford | 144 | 50 | 0.88 | 0.33 | 5 |
Appalachia | 51 | 54 | 0.21 | 0.20 | 3 |
Rockies | 89 | 67 | 0.10 | 0.74 | 1 |
Total | 882 | 476 | 2.96 | 2.35 | 70 |
(1) | Includes combined Kimbell and Springbok assets. 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. | ||||||
(2) | Includes combined Kimbell and Springbok assets. |
Liquidity
At March 31, 2020, Kimbell had approximately $101.2 million in debt outstanding under its revolving credit facility and was in compliance with all financial covenants under its revolving credit facility.
On May 7, 2020, after taking into account the previously disclosed drawdown to fund the cash portion of the purchase price for the Springbok acquisition, Kimbell had approximately $186.7 million in borrowings outstanding under its revolving credit facility. After giving effect to the repayment of $15 million in outstanding borrowings discussed above, which is anticipated to occur in Q2 2020, Kimbell expects to have approximately $171.7 million in outstanding borrowings under its revolving credit facility and approximately $53.3 million in undrawn capacity (or approximately $128.3 million if aggregate commitments were equal to Kimbell's current borrowing base, which is $300 million) and pro forma total debt to Q1 2020 annualized consolidated Adjusted EBITDA, including a full quarter of the Springbok assets, of approximately 1.8x. 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.
Hedging Update
The following provides information concerning Kimbell's hedge book as of May 7, 2020:
Fixed Price Swaps as of May 7, 2020 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
2Q 2020 | 112,989 | 1,452,705 | $ 44.68 | $ 2.27 |
3Q 2020 | 134,964 | 1,735,672 | $ 40.62 | $ 2.31 |
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 |
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 first 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 May 14, 2020, by dialing 201-612-7415 and using the conference ID 13700454#. 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 May 7, 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 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 the acquisition of the Springbok assets, Kimbell's financial, operating and production results and prospects for growth, the tax treatment of Kimbell's distributions 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) | ||
March 31, | ||
2020 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 14,481 |
Oil, natural gas and NGL receivables | 14,258 | |
Commodity derivative assets | 7,339 | |
Accounts receivable and other current assets | 586 | |
Total current assets | 36,664 | |
Property and equipment, net | 1,297 | |
Investment in affiliate (equity method) | 4,373 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 1,033,553 | |
Less: accumulated depreciation, depletion and impairment | (413,040) | |
Total oil and natural gas properties, net | 620,513 | |
Deposits on oil and natural gas properties | 9,681 | |
Right-of-use assets, net | 3,332 | |
Commodity derivative assets | 2,444 | |
Loan origination costs, net | 1,951 | |
Total assets | $ | 680,255 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 757 |
Other current liabilities | 3,422 | |
Total current liabilities | 4,179 | |
Operating lease liabilities, excluding current portion | 3,057 | |
Long-term debt | 101,224 | |
Total liabilities | 108,460 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 40,820 | |
Unitholders' equity: | ||
Common units | 367,264 | |
Class B units | 1,032 | |
Total unitholders' equity | 368,296 | |
Noncontrolling interest | 162,679 | |
Total equity | 530,975 | |
Total liabilities, mezzanine equity and unitholders' equity | $ | 680,255 |
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 | ||||
March 31, 2020 | March 31, 2019 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 25,585 | $ | 22,833 | |
Lease bonus and other income | 229 | 84 | |||
Gain (loss) on commodity derivative instruments | 10,133 | (4,970) | |||
Total revenues | 35,947 | 17,947 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 1,622 | 1,597 | |||
Depreciation and depletion expense | 13,271 | 10,281 | |||
Impairment of oil and natural gas properties | 70,925 | 2,802 | |||
Marketing and other deductions | 2,131 | 1,857 | |||
General and administrative expenses | 6,524 | 5,333 | |||
Total costs and expenses | 94,473 | 21,870 | |||
Operating loss | (58,526) | (3,923) | |||
Other income (expense) | |||||
Equity income in affiliate | 163 | — | |||
Interest expense | (1,421) | (1,423) | |||
Net loss before income taxes | (59,784) | (5,346) | |||
Provision for income taxes | — | — | |||
Net loss | (59,784) | (5,346) | |||
Distribution and accretion on Series A preferred units | (3,077) | (3,470) | |||
Net loss attributable to noncontrolling interests | 23,585 | 5,152 | |||
Distributions on Class B units | (25) | (23) | |||
Net loss attributable to common units | $ | (39,301) | $ | (3,687) | |
Basic | $ | (1.29) | $ | (0.21) | |
Diluted | $ | (1.29) | $ | (0.21) | |
Weighted average number of common units outstanding | |||||
Basic | 30,528,819 | 17,971,300 | |||
Diluted | 30,528,819 | 17,971,300 |
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, distributions from equity investments, equity income from affiliates, impairment of oil and natural gas properties, income taxes and depreciation and depletion expense. Adjusted EBITDA including Springbok also includes a full quarter of revenues attributable to the Springbok assets. The Springbok acquisition had an effective date of October 1, 2019. 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 per Boe including Springbok also includes a full quarter of production attributable to the Springbok assets. The Springbok acquisition had an effective date of October 1, 2019. 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 | ||||
March 31, 2020 | March 31, 2019 | ||||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA | |||||
Net cash provided by operating activities | $ | 20,788 | $ | 15,812 | |
Interest expense | 1,421 | 1,423 | |||
Impairment of oil and natural gas properties | (70,925) | (2,802) | |||
Amortization of right-of-use assets | (67) | (11) | |||
Amortization of loan origination costs | (266) | (258) | |||
Equity income in affiliate | 163 | — | |||
Unit-based compensation | (2,107) | (1,770) | |||
Gain (loss) on commodity derivative instruments, net of settlements | 8,979 | (5,166) | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL revenues receivable | (4,913) | (1,294) | |||
Accounts receivable and other current assets | 509 | 492 | |||
Accounts payable | 450 | 692 | |||
Other current liabilities | 809 | (777) | |||
Operating lease liabilities | 67 | 17 | |||
Consolidated EBITDA | $ | (45,092) | $ | 6,358 | |
Add: | |||||
Impairment of oil and natural gas properties | 70,925 | 2,802 | |||
Unit-based compensation | 2,107 | 1,770 | |||
(Gain) loss on commodity derivative instruments, net of settlements | (8,979) | 5,166 | |||
Cash distribution from equity method investee | 18 | — | |||
Equity income in affiliate | (163) | — | |||
Consolidated Adjusted EBITDA | $ | 18,816 | $ | 16,096 | |
Adjusted EBITDA attributable to noncontrolling interest | (7,059) | (9,407) | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 11,757 | $ | 6,689 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands, except for per-unit data and unit counts) | ||
Three Months Ended | ||
March 31, 2020 | ||
Net loss | $ | (59,784) |
Depreciation and depletion expense | 13,271 | |
Interest expense | 1,421 | |
Consolidated EBITDA | $ | (45,092) |
Impairment of oil and natural gas properties | 70,925 | |
Unit-based compensation | 2,107 | |
Gain on commodity derivative instruments, net of settlements | (8,979) | |
Cash distribution from equity method investee | 18 | |
Equity income in affiliate | (163) | |
Consolidated Adjusted EBITDA | $ | 18,816 |
Adjusted EBITDA attributable to noncontrolling interest | (7,059) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 11,757 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 704 | |
Cash distributions on Series A preferred units | 1,203 | |
Distributions on Class B units | 25 | |
Cash available for distribution on common units | $ | 9,825 |
Common units outstanding on March 31, 2020 | 34,378,849 | |
Cash available for distribution per common unit outstanding | $ | 0.29 |
Common units outstanding on May 4, 2020 Record Date | 36,602,811 | |
First quarter 2020 distribution declared (1) | $ | 0.17 |
(1) The difference between the declared distribution and the cash available for distribution is primarily attributable to Kimbell allocating 50% of cash available for distribution to pay outstanding borrowings under its credit facility. Additionally, Kimbell utilized cash flows received from the Springbok acquisition after the effective date of October 1, 2019, but prior to the closing date of April 17, 2020 to pay outstanding borrowings under its credit facility. Revenues, production and other financial and operating results from the Springbok acquisition will be reflected in Kimbell's condensed consolidated financial statements from April 17, 2020 onward. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands, except for per-unit data and unit counts) | ||
Three Months Ended | ||
March 31, 2019 | ||
Net loss | $ | (5,346) |
Depreciation and depletion expense | 10,281 | |
Interest expense | 1,423 | |
Consolidated EBITDA | $ | 6,358 |
Impairment of oil and natural gas properties | 2,802 | |
Unit-based compensation | 1,770 | |
Loss on commodity derivative instruments, net of settlements | 5,166 | |
Consolidated Adjusted EBITDA | $ | 16,096 |
Adjusted EBITDA attributable to non-controlling interest | (9,407) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners LP | $ | 6,689 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 624 | |
Cash distributions on Series A preferred units | 800 | |
Distributions on Class B units | 23 | |
Cash available for distribution on common units | $ | 5,242 |
Common units outstanding on March 31, 2019 | 19,495,403 | |
Cash available for distribution per common unit outstanding | $ | 0.27 |
Common units outstanding on May 6, 2019 Record Date | 23,095,403 | |
First quarter 2019 distribution declared (1) | $ | 0.37 |
(1) The difference between the declared distribution and the cash available for distribution is primarily attributable to the acquisition of the Phillips assets being effective on January 1, 2019, but only reflected in the condensed consolidated financial statements from March 25, 2019 onward. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
March 31, 2020 | ||
Net loss | $ | (59,784) |
Depreciation and depletion expense | 13,271 | |
Interest expense | 1,421 | |
Consolidated EBITDA | $ | (45,092) |
Impairment of oil and natural gas properties | 70,925 | |
Unit-based compensation | 2,107 | |
Gain on commodity derivative instruments, net of settlements | (8,979) | |
Cash distribution from equity method investee | 18 | |
Equity income in affiliate | (163) | |
Consolidated Adjusted EBITDA | $ | 18,816 |
Adjustment to account for full quarter of Springbok acquisition (1) | 4,436 | |
Consolidated Adjusted EBITDA (including full quarter of Springbok) | $ | 23,252 |
(1) Includes cash flow attributable to the Springbok acquisition. Under the terms of the Springbok purchase agreement, Kimbell is entitled to the cash flows from the Springbok assets as of the effective date of the transaction, which is October 1, 2019. |
1 Including a full quarter of production attributable to the Springbok acquisition, which had an effective date of October 1, 2019 and closing date of April 17, 2020.
2 Based on Kimbell rig count (including Springbok) of 70 and Baker Hughes U.S. land rig count of 512 as of April 17, 2020.
3 Based on Kimbell rig count (including Springbok) of 93 and Baker Hughes U.S. land rig count of 781 as of December 27, 2019.
4 The below table represents DUCs and permitted locations only, and there is no guarantee that the DUCs or permitted locations will be developed into producing wells in the future.
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-first-quarter-2020-results-301054521.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 27, 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 (the "Board of Directors") approved a cash distribution payment of 50% of projected cash available for distribution for the first quarter of 2020, or $0.17 per common unit. The distribution will be payable on May 11, 2020 to common unitholders of record at the close of business on May 4, 2020.
"We are pleased to announce that the company performed very well in the first quarter of this year with expected record production, as well as strong cash provided by operating activities and consolidated Adjusted EBITDA, in each case after giving effect to a full quarter of Springbok. We had 70 active rigs operating on our properties as of April 17, 2020, which represents an increased market share of all land drilling rigs in the continental United States compared to year-end 2019," commented Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell's general partner.
In light of the unprecedented global economic impact resulting from the COVID-19 pandemic, the related impact to the United States oil market and the potential for curtailments of production in the coming months, Kimbell's management has recommended, and the Board of Directors has approved, the allocation of 50% of Kimbell's projected cash available for distribution for the first quarter of 2020, together with certain cash received at the closing of the Springbok acquisition and other cash reserves, for the repayment of $15 million in outstanding borrowings under Kimbell's revolving credit facility.
"We believe that, in light of the enormous uncertainty in the economy right now, particularly in the oil and gas sector, paying down a portion of our indebtedness is prudent. Having additional "dry powder" in this challenging environment provides additional financial strength. We believe that we are well positioned to weather this storm, with approximately 60% of our estimated first quarter production coming from natural gas, for which the outlook looks increasingly strong, one of the lowest PDP decline rates (and amongst the highest PDP reserves to production ratios) in the industry, our robust hedge position and our low leverage," concluded Robert Ravnaas.
Kimbell - Supplemental Distribution Data | ||||||
Percent | ||||||
Q4 2019 | Q1 2020 | Change | ||||
WTI Average Crude Oil Price(1) | $56.96 | $45.76 | (19.7%) | |||
Henry Hub Average Natural Gas Price (1) | $2.40 | $1.91 | (20.4%) | |||
Common Unit Distribution Declared | $0.38 | $0.17 | (55.3%) | |||
Debt Paydown | - | $15,000,000 | ||||
Annualized Cash Yield (2) | 10.7% | |||||
Cash Received from Lease Bonuses and Other Income | $163,597 | $229,319 | ||||
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE FIRST QUARTER OF 2020 | ||||||
EXPECTED TO BE FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL(3) |
(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. | ||
(2) Based on the closing price of Kimbell common units on April 24, 2020. | ||
(3) 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 mineral and royalty interests Kimbell acquired in the acquisition of Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC (the "Springbok acquisition"), which closed on April 17, 2020, 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. |
Preliminary First Quarter 2020 Financial and Operational Highlights
Preliminary First Quarter 2020 Financial and Operational Results
In light of the significant market volatility associated with the COVID-19 pandemic, Kimbell is providing preliminary first quarter 2020 financial and operational results. Revenue, production and certain other operational statistics for the first quarter of 2020 are provided in accordance with accounting principles generally accepted in the United States ("GAAP") and do not include the recently acquired Springbok assets, as the transaction closed after quarter-end on April 17, 2020. However, under the terms of the Springbok purchase agreement, Kimbell is entitled to the cash flows from the Springbok assets as of the effective date of the transaction, which is October 1, 2019.
Kimbell | ||||
Q1 2020: (1) | ||||
Oil, natural gas and NGL revenues ($mm) | $24.5 | - | $26.5 | |
Net Cash Provided by Operating Activities | $19.7 | - | $21.9 | |
Consolidated Adjusted EBITDA ($mm) | $18.0 | - | $20.0 | |
Net Production - Mboe/d (6:1) | 12.5 | - | 12.7 | |
Oil Production - % of Net Production | 25% | - | 29% | |
Natural Gas Production - % of Net Production | 58% | - | 62% | |
NGL Production - % of Net Production | 11% | - | 15% | |
Unit Costs ($/Boe) | ||||
Marketing and other deductions | $1.40 | - | $1.90 | |
Depreciation, depletion and accretion expenses | $9.00 | - | $11.00 | |
G&A | ||||
Cash G&A | $3.85 | - | $3.95 | |
Non-Cash G&A | $1.80 | - | $2.00 | |
Production and ad valorem taxes | 6.0% | - | 8.0% | |
Cash Provided by Operating Activities from Springbok ($mm) | $4.2 | - | $4.7 | |
Q1 2020 Including Springbok: (2) | ||||
Consolidated Adjusted EBITDA ($mm) | $22.2 | - | $24.6 | |
Net Production - Mboe/d (6:1) | 15.0 | - | 15.4 | |
Oil Production - % of Net Production | 26% | - | 30% | |
Natural Gas Production - % of Net Production | 57% | - | 61% | |
NGL Production - % of Net Production | 11% | - | 15% | |
(1) Financial and operating information does not include revenues, production or other financial or | ||||
operating results attributable to the Springbok acquisition, which closed after quarter-end on | ||||
April 17, 2020. | ||||
(2) Includes financial and operating results attributable to the Springbok acquisition. Under the | ||||
terms of the Springbok purchase agreement, Kimbell is entitled to the cash flows from the Springbok | ||||
assets as of the effective date of the transaction, which is October 1, 2019. |
As of March 31, 2020, Kimbell had outstanding 34,378,849 common units and 20,644,047 Class B units. As of April 27, 2020, Kimbell had outstanding 36,602,811 common units and 23,141,181 Class B units.
Operational Update
As of March 31, 2020, Kimbell had 882 gross (2.96 net) DUCs and 476 gross (2.35 net) permitted locations on its acreage. In addition, as of April 17, 2020, Kimbell had 70 rigs actively drilling on its acreage, which represents an approximate 13.7%(1) market share of all land rigs drilling in the continental United States as of such time, up from 11.9%(2) at year-end 2019.
Basin | Gross DUCs as of March 31, 2020(3) | Gross Permits as of March 31, 2020(3) | Net DUCs as of March 31, 2020(3) | Net Permits as of March 31, 2020(3) | Active Rigs as of April 17, 2020(4) |
Permian | 168 | 111 | 0.85 | 0.53 | 33 |
Mid-Continent | 142 | 88 | 0.30 | 0.10 | 11 |
Haynesville | 67 | 20 | 0.40 | 0.19 | 9 |
Bakken | 221 | 86 | 0.22 | 0.26 | 8 |
Eagle Ford | 144 | 50 | 0.88 | 0.33 | 5 |
Appalachia | 51 | 54 | 0.21 | 0.20 | 3 |
Rockies | 89 | 67 | 0.10 | 0.74 | 1 |
Total | 882 | 476 | 2.96 | 2.35 | 70 |
(1) Based on Kimbell rig count (including Springbok) of 70 and Baker Hughes U.S. land rig count of 512 as of April 17, 2020. | |||||
(2) Based on Kimbell rig count (including Springbok) of 93 and Baker Hughes U.S. land rig count of 781 as of December 27, 2019. | |||||
(3) Includes combined Kimbell and Springbok assets. 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. | |||||
(4) Includes combined Kimbell and Springbok assets. |
Liquidity
At March 31, 2020, Kimbell had approximately $101.2 million in debt outstanding under its revolving credit facility and approximately $123.8 million in undrawn capacity (or approximately $198.8 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. Kimbell was in compliance with all financial covenants under its revolving credit facility at March 31, 2020.
At April 24, 2020, after taking into account the previously disclosed drawdown to fund the cash portion of the purchase price in the Springbok acquisition, Kimbell had approximately $186.7 million in debt outstanding under its revolving credit facility. After giving effect to the repayment of $15 million in outstanding borrowings discussed above, which is anticipated to occur in the second quarter of 2020, Kimbell expects to have approximately $171.7 million in outstanding borrowings under its revolving credit facility and a pro forma total debt to the midpoint of the Q1 2020 annualized consolidated Adjusted EBITDA, including a full quarter of the Springbok assets, of approximately 1.8x.
Hedging Update
The following provides information concerning Kimbell's hedge book as of April 27, 2020:
Fixed Price Swaps as of April 27, 2020 | |||||
Weighted Average | |||||
Volumes | Fixed Price | ||||
Oil | Nat Gas | Oil | Nat Gas | ||
BBL | MMBTU | $/BBL | $/MMBTU | ||
2Q 2020 | 112,989 | 1,452,705 | $ 44.68 | $ 2.27 | |
3Q 2020 | 134,964 | 1,735,672 | $ 40.62 | $ 2.31 | |
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 |
First Quarter 2020 Earnings Release and Conference Call
Kimbell will release its full first quarter 2020 financial results on Thursday, May 7, 2020, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). Kimbell will provide further commentary about the effect of the COVID-19 pandemic and the oil market downturn, as well as the impact on Kimbell's business, at that time.
Note Regarding Preliminary Results
The first quarter 2020 financial and operational information provided in this news release is preliminary, unaudited and subject to completion and review by the company's independent registered public accounting firm. Actual first quarter 2020 financial and operational results may vary.
This information reflects management's current views and may change as a result of management's continued review of results and other factors. Such preliminary results for the first quarter of 2020 are subject to the finalization and closing of Kimbell's accounting books and records (which have yet to be performed), and should not be viewed as a substitute for full quarterly financial statements prepared in accordance with GAAP. Neither Kimbell's independent registered public accounting firm nor any other independent registered public accounting firm has audited, reviewed or compiled, examined or performed any procedures with respect to the preliminary results, nor have they expressed any opinion or any other form of assurance on the preliminary results.
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 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 kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements, in particular statements relating to the acquisition of the Springbok assets, Kimbell's financial, operating and production results and prospects for growth, the tax treatment of Kimbell's distributions 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
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. In this news release, Kimbell defines Adjusted EBITDA as net cash provided by operating activities before interest expense, amortization expense, equity income from affiliates, non-cash unit-based compensation, unrealized gains or losses on commodity derivative instruments, net of settlements, and net change in operating assets and liabilities. 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 cash provided by operating activities 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 is a useful metric because it isolates 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 should not be considered an alternative to G&A expense presented in accordance with GAAP. Kimbell's computations of Cash G&A may not be comparable to other similarly titled measures of other companies.
Kimbell Royalty Partners, LP | |||||
Reconciliation of net cash provided by operating activities | Three Months Ended | ||||
to Adjusted EBITDA | March 31, 2020 | ||||
Net cash provided by operating activities | $ | 19,749 | - | $ | 21,877 |
Interest expense | 1,350 | - | 1,492 | ||
Amortization expense | (317) | - | (349) | ||
Equity income in affiliate | 156 | - | 172 | ||
Unit-based compensation | (2,003) | - | (2,213) | ||
Gain on commodity derivative instruments, net of settlements | 8,530 | - | 9,428 | ||
Net change in operating assets and liabilities | (2,933) | - | (3,242) | ||
Consolidated EBITDA | $ | 24,532 | - | $ | 27,165 |
Unit-based compensation | 2,003 | - | 2,213 | ||
Gain on commodity derivative instruments, net of settlements | (8,530) | - | (9,428) | ||
Consolidated Adjusted EBITDA | $ | 18,005 | - | $ | 19,950 |
Adjustment to account for full quarter of Springbok acquisition (1) | 4,214 | - | 4,658 | ||
Consolidated Adjusted EBITDA (including full quarter of Springbok) | $ | 22,219 | - | $ | 24,608 |
(1) Includes cash flow attributable to the Springbok acquisition. Under the terms of the Springbok purchase agreement, Kimbell is entitled to the cash flows from the Springbok assets as of the effective date of the transaction, which is October 1, 2019. |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-declares-first-quarter-2020-distribution-provides-preliminary-first-quarter-2020-results-and-operational-update-301047253.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 20, 2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has closed the previously announced purchase of the mineral and royalty interests held by Dallas-based Springbok Energy Partners, LLC ("SEP I") and Springbok Energy Partners II, LLC ("SEP II" and, together with SEP I, "Springbok") for a purchase price of approximately $123.1 million (the "Acquisition") funded by a combination of approximately $95 million in cash and approximately 2.2 million common units of Kimbell and approximately 2.5 million common units of Kimbell Royalty Operating, LLC. Kimbell is entitled to the cash flow from production attributable to the Acquisition beginning on and after October 1, 2019. Revenues and certain other operating statistics under generally accepted accounting principles ("GAAP") will be recorded for the Acquisition beginning on the closing date of April 17, 2020. As of March 31, 2020, the acreage acquired in the Acquisition had over 90 operators on 2,160 net royalty acres across core areas of the Delaware Basin, DJ Basin, Haynesville, STACK, Eagle Ford and other leading basins. In addition, for Q1 2020, Kimbell estimates that the Springbok assets produced 2,586 Boe/d (56% natural gas, 34% oil and 10% natural gas liquids) (6:1), an organic production growth increase of 2% from October 1, 2019.
"Our thoughts and prayers go out to those affected by the COVID-19 crisis. We will continue to do what we can to support the recovery of our community from this crisis. We are especially grateful for all of the hard work being performed by first responders and healthcare workers. They are truly an inspiration to us all," commented Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell's general partner.
"The company entered this crisis in a strong position with significant momentum and we believe that this is an excellent strategic acquisition with highly complementary acreage that we expect will add significant cash flow and the opportunity for growth. These assets complement our broad and diversified mineral and royalty portfolio and we are excited to significantly increase our position in the Delaware Basin, which has one of the lowest break-even costs across any basin in the U.S. Specifically, in the Delaware Basin, we believe we have acquired the right balance of existing producing wells and future drilling locations as well as high quality operators. We believe that Kimbell offers a unique investment opportunity with growth opportunities and a robust distribution yield, which we expect to be substantially tax-free through 2023 and instead to be considered a return of capital to the extent of a unitholder's basis in its common units. We remain focused on executing our business plan and creating long-term value for our unitholders," concluded Robert Ravnaas.
Forward-Looking Statements
This news release includes forward-looking statements, in particular statements relating to the benefits of the Acquisition, Kimbell's future operating and production results and prospects for growth, the tax treatment of Kimbell's distributions and the recent COVID-19 outbreak. These and other forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized, risks relating to Kimbell's integration of the Acquisition assets 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 assets acquired in the Acquisition, 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.
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 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 producing wells with over 40,000 wells in the Permian Basin. To learn more, visit kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-closes-mineral-and-royalty-acquisition-from-springbok-301043145.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 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 94,000 gross producing wells across 28 states, today announced it will release its first quarter 2020 financial results on Thursday, May 7, 2020, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through May 14, 2020, by dialing 201-612-7415 and using the conference ID: 13700454#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Kimbell Royalty Partners
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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-first-quarter-2020-earnings-release-and-conference-call-301027650.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Feb. 28, 2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "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 its participation in the upcoming 25th Annual Credit Suisse Energy Summit in Vail, Colorado, on March 2-3, 2020.
About Kimbell Royalty Partners
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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-25th-annual-credit-suisse-energy-summit-301013511.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Feb. 28, 2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that Kimbell filed its Annual Report on Form 10-K ("Annual Report") for the fiscal year ended December 31, 2019 with the U.S. Securities and Exchange Commission ("SEC"). Kimbell's Annual Report is available through its website at http://kimbellrp.investorroom.com/financial-reports, as well as on the SEC's website at www.sec.gov. Interested investors may obtain a hard copy of the Annual Report, including Kimbell's complete audited financial statements, free of charge, by sending a request to Kimbell, C/O Dennard Lascar Investor Relations, to: KRP@dennardlascar.com, or by telephone at (713) 529-6600.
About Kimbell Royalty Partners
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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-filing-of-2019-annual-report-on-form-10-k-301013216.html
SOURCE Kimbell Royalty Partners, LP
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
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 | Natural Gas | Natural Gas | 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.
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SOURCE Kimbell Royalty Partners, LP
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 | ||||||
Percent | ||||||
Q3 2019 | Q4 2019 | Change | ||||
WTI Average Crude Oil Price(1) | $56.37 | $56.96 | 1.0% | |||
Henry Hub Average Natural Gas Price (1) | $2.38 | $2.40 | 0.8% | |||
Common Unit Distribution Declared | $0.42 | (2) | $0.38 | (9.5%) | ||
Annualized Cash Yield (3) | 9.8% | |||||
Cash Received from Lease Bonuses | $940,898 | $163,597 |
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE FOURTH QUARTER OF 2019 | ||||
EXPECTED TO BE FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL(4) | ||||
(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. | ||||
(2) The Q3 2019 common unit distribution included $0.05 related to prior period production recognized in Q3 2019. | ||||
(3) Based on the closing price of Kimbell common units on January 24, 2020. | ||||
(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. |
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
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-fourth-quarter-2019-distribution-300993059.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 9, 2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced the pricing of its public offering of 5,000,000 common units representing limited partner interests, at a public offering price of $15.50 per common unit. The total gross proceeds of the offering, before underwriters' discounts and estimated offering expenses, will be approximately $77.5 million. Certain selling unitholders of Kimbell have granted the underwriters an option to purchase up to 750,000 additional common units at the public offering price less the underwriting discount and commissions. The offering is expected to close on January 14, 2020, subject to customary closing conditions.
Kimbell intends to use the net proceeds from the offering to fund a portion of the cash purchase price for the pending acquisition of oil and natural gas mineral and royalty interests held by Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC (the "Springbok Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on January 9, 2020, and to pay fees and expenses related to the Springbok Acquisition. Pending the closing of the Springbok Acquisition, Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility. Kimbell may use future amounts borrowed under its revolving credit facility for general partnership purposes, including a potential redemption of a portion of its outstanding 7.0% Series A Cumulative Convertible Preferred Units (the "Preferred Units").
Kimbell will not receive proceeds from the sale of common units by the selling unitholders if the underwriters' option to purchase up to 750,000 additional common units is exercised.
Credit Suisse Securities (USA) LLC and Raymond James & Associates, Inc. are acting as lead book-running managers for the offering. Goldman Sachs & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are also acting as bookrunners for the offering. When available, a copy of the prospectus for the offering may be obtained from:
Credit Suisse Securities (USA) LLC | Raymond James & Associates, Inc. |
Attn: Prospectus Department | Attn: Equity Syndicate |
Eleven Madison Avenue, 3rd Floor | 880 Carillon Parkway |
New York, NY 10010 | St. Petersburg, FL 33716 |
Telephone: (800) 221-1037 | Telephone: (800) 248-8863 |
To obtain a copy of the prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
This news release shall not constitute a notice of redemption with respect to the Preferred Units. Any redemption of the Preferred Units will be made pursuant to a notice of redemption in accordance with the terms of such securities.
About Kimbell Royalty Partners
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.
Forward-Looking Statements
This news release includes forward-looking statements, including statements related to the proposed public offering, the use of proceeds therefrom, the consummation of the Springbok Acquisition, the potential redemption of the Preferred Units and other statements that are not historical facts. These forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of the Springbok Acquisition are not realized; risks relating to Kimbell's integration of the Springbok Acquisition assets; risks relating 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 prospects for growth generally. 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 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. Kimbell may not consummate the Springbok Acquisition and the closing of the offering is not conditioned upon the Springbok Acquisition.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-prices-public-offering-of-common-units-300984745.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 9, 2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has commenced an underwritten public offering of 5,000,000 common units representing limited partner interests, subject to market and other conditions. In connection with the offering, certain selling unitholders of Kimbell intend to grant the underwriters an option to purchase up to 750,000 additional common units at the public offering price less the underwriting discount and commissions.
Kimbell intends to use the net proceeds from the offering to fund a portion of the cash purchase price for the pending acquisition of oil and natural gas mineral and royalty interests held by Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC (the "Springbok Acquisition"), as described in Kimbell's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on January 9, 2020, and to pay fees and expenses related to the Springbok Acquisition. Pending the closing of the Springbok Acquisition, Kimbell intends to use the net proceeds from the offering for the repayment of outstanding borrowings under its revolving credit facility. Kimbell may use future amounts borrowed under its revolving credit facility for general partnership purposes, including a potential redemption of a portion of its outstanding 7.0% Series A Cumulative Convertible Preferred Units (the "Preferred Units").
Kimbell will not receive proceeds from the sale of common units by the selling unitholders if the underwriters' option to purchase up to 750,000 additional common units is exercised.
Credit Suisse Securities (USA) LLC and Raymond James & Associates, Inc. are acting as lead book-running managers for the offering. Goldman Sachs & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are also acting as bookrunners for the offering. When available, a copy of the preliminary prospectus for the offering may be obtained from:
Credit Suisse Securities (USA) LLC | Raymond James & Associates, Inc. |
Attn: Prospectus Department | Attn: Equity Syndicate |
Eleven Madison Avenue, 3rd Floor | 880 Carillon Parkway |
New York, NY 10010 | St. Petersburg, FL 33716 |
Telephone: (800) 221-1037 | Telephone: (800) 248-8863 |
usa.prospectus@credit-suisse.com | prospectus@raymondjames.com |
To obtain a copy of the preliminary prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
This news release shall not constitute a notice of redemption with respect to the Preferred Units. Any redemption of the Preferred Units will be made pursuant to a notice of redemption in accordance with the terms of such securities.
About Kimbell Royalty Partners
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.
Forward-Looking Statements
This news release includes forward-looking statements, including statements related to the proposed public offering, the use of proceeds therefrom, the consummation of the Springbok Acquisition, the potential redemption of the Preferred Units and other statements that are not historical facts. These forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of the Springbok Acquisition are not realized; risks relating to Kimbell's integration of the Springbok Acquisition assets; risks relating 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 prospects for growth generally. 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 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. Kimbell may not consummate the Springbok Acquisition and the closing of the offering is not conditioned upon the Springbok Acquisition.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-announces-public-offering-of-common-units-300984650.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 9, 2020 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and gas mineral and royalty interests in approximately 13 million gross acres in 28 states, today announced that it has agreed to acquire the mineral and royalty interests held by Dallas-based Springbok Energy Partners, LLC ("SEP I") and Springbok Energy Partners II, LLC ("SEP II" and, collectively with SEP I, "Springbok") in a transaction valued at approximately $175 million, subject to purchase price adjustments (the "Acquisition"). The purchase price for the Acquisition is comprised of $95 million in cash (approximately 54% of the total consideration) and an aggregate of approximately 2.2 million common units of Kimbell and approximately 2.5 million common units of Kimbell Royalty Operating, LLC, which are together valued at $80 million2 (approximately 46% of the total consideration). Kimbell intends to raise the cash portion of the purchase price through a combination of an underwritten public offering of common units (announced substantially concurrently with this release) and borrowings under its revolving credit facility. 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 Acquisition. The Board of Directors of Kimbell's general partner and the governing bodies of the respective Springbok entities have each unanimously approved the Acquisition, which is expected to close in the second quarter of 2020, subject to customary closing conditions. The effective date of the Acquisition is October 1, 2019.
Bob Ravnaas, Chairman and Chief Executive Officer of Kimbell's general partner, said, "This is an outstanding acquisition for Kimbell and highlights our competitive advantage in acquiring large, diversified mineral and royalty portfolios. Included with this acquisition is our first meaningful addition from the Delaware Basin since our initial public offering, which is an area where we are finally seeing opportunities that we believe have the right balance of existing and future drilling locations. With many of our industry's highest quality operators actively drilling (14 rigs currently) across the acquired acreage, we are optimistic about the future development of these assets for many years to come. We have been acquiring mineral interests from Ryan Watts, President and Chief Executive Officer of Springbok Investment Management, LP, the manager of the Springbok entities, for over a decade now and have always been impressed by the quality of the acreage his team collects and the rigorous underwriting standards they employ. We are grateful for the vote of confidence that both Springbok and NGP have made in choosing to partner with Kimbell on this transaction by accepting nearly 50% of the total consideration in equity. I want to thank our employees and advisors for their hard work in getting this deal done in a challenging environment and believe this represents a strong start to consolidation in the minerals space in 2020."
Ryan Watts said, "We are incredibly proud of the entire Springbok team for successfully building an exceptional diversified portfolio consisting of high-growth, low-risk mineral and royalty assets and view the transaction as a great outcome for each of the Springbok entities and their respective investors, including an affiliate of NGP Energy Capital Management, L.L.C. ("NGP"). We have a long-standing relationship with the Kimbell team and are excited to partner with them as they continue to execute their proven strategy. With its industry leading low PDP decline and diversified footprint, Kimbell is the natural acquiror of this acreage and the perfect partner for us. We believe strongly in the continued future success of Kimbell as a leading consolidator in the highly fragmented national minerals market."
Acquisition Highlights3
Delaware Basin highlights:
Kimbell Continues Its Role as a Leading Consolidator in the U.S. Oil and Gas Royalty Sector
Assuming the Acquisition is consummated as described in this news release, Kimbell is expected to have over 13 million gross acres, 145,917 net royalty acres and a total of 93 active rigs on its properties, which represents approximately 12% of the total active land rigs drilling in the continental United States. In addition, over 96% of all rigs in the continental United States are located in counties where Kimbell is expected to hold mineral interest positions following the consummation of the Acquisition. The Acquisition is expected to further solidify Kimbell's position in the Permian Basin by adding mineral interests in the Delaware Basin and further bolster its Eagle Ford Shale, Bakken Shale, Haynesville, STACK and DJ Basin positions.
Advisors
Baker Botts L.L.P. and Kelly Hart & Hallman LLP acted as legal counsel to Kimbell. Willkie Farr & Gallagher LLP acted as legal counsel to the Springbok entities. TenOaks Energy Advisors, LLC acted as financial advisor to the Springbok entities.
About Kimbell Royalty Partners
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.
About Springbok
Springbok Energy is an active acquirer and aggregator of mineral and royalty interests across all major producing basins. Over the past ten years, Springbok Energy and its affiliated predecessor entities have invested over $200 million of investors' capital through the acquisition of over 13,000 mineral interests across 15 unconventional resource plays in 10 states. To learn more, visit www.springbokenergy.com.
About NGP
Founded in 1988, NGP is a premier private equity firm in the natural resources industry with approximately $20 billion of cumulative equity commitments organized to make strategic investments in the energy and natural resources sectors. For more information about NGP, please visit www.ngpenergycapital.com.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements, which include statements regarding the anticipated benefits of the Acquisition, the expected timing of the closing of the Acquisition, operational data with respect to the Acquisition, the financing of the Acquisition and the proposed public offering and the use of proceeds therefrom, involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized; risks relating to Kimbell's integration of the Acquisition assets; risks relating to the possibility that the 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, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission ("SEC"). These include 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 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 assets acquired in the 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
1 On a combined basis after giving effect to the Acquisition. Based on Kimbell's average daily net production from the third quarter of 2019, run-rate production for the Springbok assets as of October 1, 2019 and production from assets Kimbell acquired in the fourth quarter of 2019.
2 Based on 15 trading day volume-weighted average price ("VWAP") of $16.94 as of January 8, 2020.
3 Operating information is provided as of October 1, 2019, the effective date of the Acquisition.
4 Production for the Springbok assets is based on run-rate production as of October 1, 2019, which is the effective date of the Acquisition.
5 On a combined basis after giving effect to the Acquisition. Based on Kimbell's average daily net production from the third quarter of 2019, run-rate production for the Springbok assets as of October 1, 2019 and production from assets Kimbell acquired in the fourth quarter of 2019.
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-175-million-acquisition-of-mineral-and-royalty-interests-in-a-cash-and-unit-transaction-300984448.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Dec. 30, 2019 /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 it will release its fourth quarter 2019 financial results on Thursday, February 27, 2020, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through March 5, 2020, by dialing 201-612-7415 and using the conference ID: 13697441#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Kimbell Royalty Partners
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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-fourth-quarter-2019-earnings-release-and-conference-call-300979547.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Dec. 19, 2019 /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 its plans to participate in the upcoming TD Securities London Energy Conference in London, England, on January 13-14, 2020.
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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-td-securities-london-energy-conference-300977355.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Dec. 12, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has closed the previously announced purchase of certain oil and natural gas mineral and royalty assets from Buckhorn Resources GP, LLC and certain of its affiliates (collectively, "Buckhorn Resources") for 2,169,348 newly issued units in Kimbell Royalty Operating, LLC valued at approximately $36.3 million (the "Acquisition"). Kimbell is entitled to the cash flow from production attributable to the Acquisition beginning on and after July 1, 2019, but only cash flow from production attributable to the Acquisition beginning on or after October 1, 2019 will be available for distribution to Kimbell's unitholders. Revenues and certain other operating statistics under generally accepted accounting principles will be recorded for the Acquisition beginning on the closing date of December 12, 2019.
The Acquisition includes oil and natural gas mineral and royalty interests previously controlled by Buckhorn Resources and is expected to be immediately accretive to distributable cash flow per unit. The Acquisition includes a package of royalty interests located in the Eagle Ford Shale with two rigs actively drilling on the acreage. In addition, the Acquisition is expected to add approximately 270 Boe/d of production (6:1), comprising approximately 83% oil, 11% natural gas and 6% natural gas liquids. The Acquisition also adds approximately 86,000 gross acres (400 net royalty acres), 504 producing wells, 38 drilled but uncompleted wells and 519 additional upside locations. Finally, the Acquisition maintains Kimbell's superior five-year PDP decline rate of approximately 13%, which is one of the lowest in the mineral and royalty industry.
"With the closing of the Buckhorn acquisition, we have wrapped up a very successful 2019. Combining this $36.3 million acquisition with our other acquisitions in 2019, we have completed a total of $220.7 million in accretive acquisitions this year. As we look towards 2020, we are very excited about the opportunities we see to continue our role as a leading consolidator in the U.S. minerals sector. We expect to spend a considerable amount of time on the road in 2020, including meeting with existing and potential investors and at investor conferences, in order to reinforce the Kimbell story. I want to once again thank our employees, advisors and unitholders for their support as we execute our business plan," said Bob Ravnaas, Chief Executive Officer of Kimbell's general partner.
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.
About Buckhorn Resources
Founded in 2012, Buckhorn Resources is an active acquirer of mineral and royalty interests on behalf of institutional investors, family offices and high-net-worth individuals. Headquartered in Houston, Texas, Buckhorn Resources invests primarily in the Permian Basin, Eagle Ford Shale and other liquids-rich basins in the United States. To learn more, visit www.buckhornresources.com.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements, which include statements regarding the anticipated benefits of the Acquisition and operational data with respect to the Acquisition, involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized and risks relating to Kimbell's integration of the Acquisition assets, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission ("SEC"). These include 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 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 assets acquired in the 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-closes-mineral-and-royalty-acquisition-from-buckhorn-resources-300974386.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Nov. 12, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced that it has agreed to acquire certain mineral and royalty assets from Buckhorn Resources GP, LLC and certain of its affiliates (collectively, "Buckhorn Resources") for approximately $31.8 million (the "Acquisition") in a 100% equity transaction.
Transaction Highlights1
- Includes oil and natural gas mineral and royalty interests controlled by Buckhorn Resources
- Expected to add approximately 270 Boe/d of production (6:1)
- Includes oil-focused production mix on 6:1 basis of approximately 83% oil, 11% natural gas and 6% natural gas liquids
- Expected to add approximately 86,000 gross acres and 400 net royalty acres with approximately 90% of the net royalty acres located in La Salle and McMullen Counties
- Two rigs actively drilling on the acreage
- Top operator by total proved reserve value (PV-10%) is EOG Resources, Inc.
- Includes 504 producing wells, 38 drilled but uncompleted wells, and 519 additional upside drilling locations
- Purchase price is composed of 2,207,880 newly issued units in Kimbell Royalty Operating, LLC, subject to certain closing adjustments
- Effective date of July 1, 2019, with Kimbell entitled to revenues from production on and after such date
- Expected to close in late December 2019 and be immediately accretive to distributable cash flow per unit
Baker Botts L.L.P. and Kelly Hart & Hallman LLP acted as legal advisors to Kimbell Royalty Partners in connection with the Acquisition. The sellers in the Acquisition will be subject to a 120-day lockup after the closing, which is expected to occur in late December 2019. The closing of the Acquisition remains subject to the satisfaction of certain closing conditions, and there can be no assurance that it will be completed as planned or at all.
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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
About Buckhorn Resources
Founded in 2012, Buckhorn Resources is an active acquirer of mineral and royalty interests on behalf of institutional investors, family offices and high-net-worth individuals. Headquartered in Houston, Texas, Buckhorn Resources invests primarily in the Permian Basin, Eagle Ford Shale and other liquids-rich basins in the United States. To learn more, visit www.buckhornresources.com.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements, which include statements regarding the anticipated benefits of the Acquisition and the expected timing of the closing of the Acquisition, involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized; risks relating to Kimbell's integration of the Acquisition assets; risks relating to the possibility that the 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, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission ("SEC"). These include 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 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 assets acquired in the 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
1 Operating information is based on management's estimates.
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-31-8-million-acquisition-of-mineral-and-royalty-assets-from-buckhorn-resources-in-an-all-equity-transaction-300956058.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Nov. 7, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced financial and operating results for the third quarter ended September 30, 2019.
Third Quarter 2019 Highlights
Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner commented, "This was an excellent quarter generating record high revenue and production and further proving the strength of our business model and strategy. The sequential production growth in the third quarter of 8% was entirely organic, which is a testament to the high degree of activity on our acreage coupled with one of the industry's lowest PDP decline rates. We remain very pleased with the cash flow generation, production stability and growth potential across our asset base. In addition, revenue growth, particularly year-over-year, reflects strong performance from acquisitions made in the past twelve months, despite the decrease of realized commodity prices. In addition, in the third quarter we had receipts of nearly $1 million in lease bonuses. Finally, we had cash G&A per Boe of $3.30 in Q3 2019, which was below the low-end of our Q3 2019 guidance. Based on our strong third quarter results and expectations for the remainder of the year, we are raising our Q4 2019 production guidance.
"While current pressures persist for many exploration and production companies operating in the U.S., our broad-based, high-quality asset portfolio continues to outperform expectations. At the end of the third quarter, our rig count was 82, including four new rigs in the Permian, and our market share of the entire lower 48 U.S. drilling fleet increased to 9.8% from 9.5%.
"The acquisition market remains very active as we continue to evaluate opportunities across our many basins. 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 bullish on our business and the opportunities to further enhance growth in the future," concluded Robert Ravnaas.
Third Quarter 2019 Distribution
On October 25, 2019, Kimbell announced a cash distribution of $0.42 per common unit, a 7.7% increase compared to the second quarter of 2019. 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 for the next four years (2019 to 2022) are not expected to be taxable dividend income and less than 25% of distributions paid to common unitholders for the subsequent three years (2023 to 2025) are expected to be taxable dividend income. Please refer to the press release dated May 13, 2019 for further details on Kimbell's tax guidance.
Financial Highlights
Total third quarter 2019 revenues increased to $33.0 million compared to $18.4 million in the third quarter of 2018, primarily due to production and operating activities from the assets acquired in the Haymaker acquisition, dropdown and Phillips acquisition as well as organic growth. Third quarter 2019 net loss was $28.9 million and net loss attributable to common units was $16.3 million, or $0.73 per common unit, compared to net loss attributable to common units of $3.7 million in the third quarter of 2018. The increase in net loss during the third quarter of 2019 was primarily due to a $34.9 million non-cash impairment expense recorded during the quarter related to a full-cost ceiling test.
Total third quarter 2019 consolidated Adjusted EBITDA grew to $22.8 million, compared to $14.0 million in the third 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 third quarter of 2019, average realized price per Bbl of oil was $54.47, per Mcf of natural gas was $2.06, per Bbl of NGLs was $13.01 and per Boe combined was $22.22.
Kimbell recorded a non-cash $34.9 million full-cost ceiling test impairment expense in the third quarter of 2019, 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 $5.7 million in Q3 2019, $3.9 million of which was cash G&A expense or $3.30 per Boe, down from $3.82 per Boe in Q2 2019. Non-cash G&A expense in Q3 2019 was $1.8 million or $1.54 per Boe.
As of September 30, 2019, Kimbell had outstanding 23,520,219 common units and 23,388,258 Class B units.
Production
Third quarter 2019 average daily production was 14,838 Boe per day, which consisted of 2,053 Boe per day relating to prior period production recognized in Q3 2019 and 12,785 Boe per day of run-rate production. The 12,785 Boe per day of run-rate production for Q3 2019 was composed of approximately 35% from liquids (23% from oil and 12% from NGLs) and 65% from natural gas on a 6:1 basis. The prior period production recognized in Q3 2019 was primarily due to new wells outperforming Kimbell's previous estimates.
Acquisition Updates
During Q3 2019, Kimbell's micro-strategy joint venture closed $3.0 million in acquisitions of mineral and royalty interests located in the Delaware Basin, DJ Basin, Williston Basin and Haynesville. In addition, on November 6, 2019, Kimbell closed a $9.86 million purchase of 186 net royalty acres with 202 Boe per day of production in the "core of the core" of the STACK play in Oklahoma. The acreage is located in Kingfisher, Blaine and Canadian Counties of Oklahoma and the operators include Devon, Encana (Newfield) and Marathon. The production on a 6:1 basis consists of 44% oil, 28% natural gas and 28% natural gas liquids. Approximately 95% of the royalties are located in the thickest portion of the Meramec reservoir. The acquisition was funded from borrowings under the Kimbell's revolving credit facility, had an effective date of August 1, 2019 and is expected to be immediately accretive to distributable cash flow per common unit beginning in Q4 2019.
2019 Guidance
Kimbell has updated financial and operational guidance for Q4 2019 as follows:
Kimbell Royalty | |||
Partners | |||
Q4 2019: | |||
Net Production - Mboe/d (6:1) (1) | 11.60 | - | 12.80 |
Oil Production - % of Net Production | 22% | - | 26% |
Natural Gas Production - % of Net Production | 61% | - | 65% |
Natural Gas Liquids Production - % of Net Production | 11% | - | 15% |
Unit Costs ($/boe) | |||
Marketing and other deductions | $1.80 | - | $2.20 |
Depreciation, depletion and accretion expenses | $10.00 | - | $13.00 |
G&A | |||
Cash G&A | $3.55 | - | $3.75 |
Non-Cash G&A | $1.50 | - | $1.70 |
Production and ad valorem taxes | 6.0% | - | 8.0% |
(1) Includes 202 net Boe/d from the Oklahoma acquisition. |
Liquidity
At September 30, 2019, Kimbell's total debt to consolidated Adjusted EBITDA ratio was 1.0x based on Q3 2019 annualized consolidated Adjusted EBITDA.
At September 30, 2019, Kimbell had $91.3 million debt outstanding and $133.7 million in undrawn capacity under the revolving credit facility (or $208.7 million if the accordion feature was exercised). 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 the revolving credit facility at September 30, 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 September 30, 2019, Kimbell had hedged daily oil and natural gas production of approximately 19% of its production. Please see the supplemental schedule at the end of this news release for hedging details.
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 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 November 14, 2019 by dialing 201-612-7415 and using the conference ID 13694675#. A webcast of the call will also be available live and for later replay on Kimbell Royalty Partners' website at http://kimbellrp.investorroom.com under Events and Presentations.
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 92,000 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 risks and uncertainties, including risks and uncertainties relating to Kimbell's future operating and production results, the tax treatment of Kimbell's distributions, Kimbell's business, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission ("SEC"). These include risks that the anticipated benefits of the Oklahoma acquisition are not realized, 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 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.
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, | ||
2019 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 20,298 |
Oil, natural gas and NGL receivables | 16,934 | |
Commodity derivative assets | 2,381 | |
Accounts receivable and other current assets | 440 | |
Total current assets | 40,053 | |
Property and equipment, net | 1,202 | |
Investment in affiliate (equity method) | 2,885 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 987,942 | |
Less: accumulated depreciation, depletion and impairment | (211,242) | |
Total oil and natural gas properties, net | 776,700 | |
Deposits on oil and natural gas properties | 986 | |
Commodity derivative assets | 969 | |
Right-of-use assets, net | 3,466 | |
Loan origination costs, net | 2,484 | |
Total assets | $ | 828,745 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 1,132 |
Other current liabilities | 5,667 | |
Total current liabilities | 6,799 | |
Operating lease liabilities | 3,437 | |
Long-term debt | 91,261 | |
Total liabilities | 101,497 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 73,365 | |
Unitholders' Equity: | ||
Common units | 341,970 | |
Class B units | 1,169 | |
Total unitholders' equity | 343,139 | |
Noncontrolling interest | 310,744 | |
Total equity | 653,883 | |
Total liabilities, mezzanine equity and unitholders' equity | $ | 828,745 |
Kimbell Royalty Partners, LP | |||||
Condensed Consolidated Statements of Operations | |||||
(Unaudited, in thousands, except per-unit data and unit count) | |||||
Three Months Ended | Three Months Ended | ||||
September 30, 2019 | September 30, 2018 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 29,531 | $ | 21,085 | |
Lease bonus and other income | 941 | 358 | |||
Gain (loss) on commodity derivative instruments | 2,507 | (3,036) | |||
Total revenues | 32,979 | 18,407 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 2,236 | 1,410 | |||
Depreciation and depletion expense | 15,098 | 7,607 | |||
Impairment of oil and natural gas properties | 34,880 | — | |||
Marketing and other deductions | 2,332 | 1,690 | |||
General and administrative expenses | 5,695 | 4,879 | |||
Total costs and expenses | 60,241 | 15,586 | |||
Operating (loss) income | (27,262) | 2,821 | |||
Other expense | |||||
Equity loss in affiliate | 81 | — | |||
Interest expense | 1,468 | 1,843 | |||
Net (loss) income before income taxes | (28,811) | 978 | |||
Provision for income taxes | 103 | 1,977 | |||
Net loss | (28,914) | (999) | |||
Distribution and accretion on Series A preferred units | (3,470) | (2,840) | |||
Net loss attributable to noncontrolling interests | 16,146 | 141 | |||
Distributions on Class B units | (23) | (13) | |||
Net loss attributable to common units | $ | (16,261) | $ | (3,711) | |
Basic | $ | (0.73) | $ | (0.15) | |
Diluted | $ | (0.73) | $ | (0.15) | |
Weighted average number of common units outstanding | |||||
Basic | 22,399,748 | 24,079,289 | |||
Diluted | 22,399,748 | 24,079,289 |
Kimbell Royalty Partners, LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define 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, transaction costs, 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. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | |||||
Supplemental Schedules | |||||
(Unaudited, in thousands) | |||||
Three Months Ended | Three Months Ended | ||||
September 30, 2019 | September 30, 2018 | ||||
Reconciliation of net cash provided by operating activities | |||||
to Adjusted EBITDA | |||||
Net cash provided by operating activities | $ | 24,835 | $ | 685 | |
Interest expense | 1,468 | 1,843 | |||
Provision for income taxes | 103 | 501 | |||
Impairment of oil and natural gas properties | (34,880) | — | |||
Amortization of right-of-use assets | (65) | — | |||
Amortization of loan origination costs | (266) | (177) | |||
Equity loss in affiliate | (81) | — | |||
Unit-based compensation | (1,810) | (751) | |||
Gain (loss) on commodity derivative instruments, net of settlements | 1,684 | (2,814) | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL revenues receivable | (1,938) | 8,977 | |||
Accounts receivable and other current assets | 64 | 200 | |||
Accounts payable | 11 | 3,750 | |||
Other current liabilities | (1,461) | (1,786) | |||
Operating lease liabilities | 91 | — | |||
Consolidated EBITDA | $ | (12,245) | $ | 10,428 | |
Add: | |||||
Impairment of oil and natural gas properties | 34,880 | — | |||
Unit-based compensation | 1,810 | 751 | |||
(Gain) loss on commodity derivative instruments, net of settlements | (1,684) | 2,814 | |||
Consolidated Adjusted EBITDA | $ | 22,761 | $ | 13,993 | |
Adjusted EBITDA attributable to noncontrolling interest | (11,349) | (514) | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 11,412 | $ | 13,479 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
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 | |
Cash 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 | ||
June 30, 2019 | ||
Net loss | $ | (20,366) |
Depreciation and depletion expense | 12,311 | |
Interest expense | 1,442 | |
Provision for income taxes | 508 | |
Consolidated EBITDA | $ | (6,105) |
Impairment of oil and natural gas properties | 28,147 | |
Unit-based compensation | 2,113 | |
Gain on commodity derivative instruments, net of settlements | (2,604) | |
Consolidated Adjusted EBITDA | $ | 21,551 |
Adjusted EBITDA attributable to noncontrolling interest | (10,941) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 10,610 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 583 | |
Cash distributions on Series A preferred units | 948 | |
Cash income tax expense(1) | 504 | |
Cash distributions on Class B units | 23 | |
Cash reserves(1) | (504) | |
Cash available for distribution on common units | $ | 9,056 |
Common units outstanding on June 30, 2019 | 23,094,135 | |
Cash available for distribution per common unit outstanding | $ | 0.39 |
Common units outstanding on August 5, 2019 Record Date | 23,494,135 | |
Second quarter 2019 distribution declared | $ | 0.39 |
(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, 2018 | ||
Net loss | $ | (999) |
Depreciation and depletion expense | 7,607 | |
Interest expense | 1,843 | |
Provision for income taxes | 1,977 | |
EBITDA | $ | 10,428 |
Unit-based compensation | 751 | |
Loss on commodity derivative instruments, net of settlements | 2,814 | |
Consolidated Adjusted EBITDA | 13,993 | |
Adjusted EBITDA attributable to noncontrolling interest | (6,753) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 7,240 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 643 | |
Cash distributions on Series A preferred units | 365 | |
Cash distributions on Class B units | 13 | |
Cash available for distribution on common units | $ | 6,219 |
Common units outstanding on September 30, 2018 | 13,886,204 | |
Cash available for distribution per common unit outstanding | $ | 0.45 |
Common units outstanding on November 5, 2018 Record Date(1) | 17,336,204 | |
Third Quarter 2018 distribution declared | $ | 0.45 |
(1) Includes 3.45 million common units issued in public offering. |
Kimbell Royalty Partners, LP | ||||
Supplemental Schedules | ||||
(Unaudited) | ||||
Fixed Price Swaps as of September 30, 2019 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
4Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
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 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-record-third-quarter-2019-results-300953495.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Oct. 25, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 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 $0.42 per common unit for the third quarter of 2019. The distribution will be payable on November 11, 2019 to common unitholders of record at the close of business on November 4, 2019. 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 Royalty Partners - Supplemental Distribution Data | ||||||
Percent | ||||||
Q2 19 | Q3 19 | Change | ||||
WTI Average Crude Oil Price(1) | $59.78 | $56.37 | (5.7%) | |||
Henry Hub Average Natural Gas Price (1) | $2.56 | $2.38 | (7.0%) | |||
Common Unit Distribution Declared | $0.39 | $0.42 | 7.7% | |||
Annualized Cash Yield (2) | 12.3% | |||||
DISTRIBUTIONS TO COMMON UNITHOLDERS EXPECTED TO BE SUBSTANTIALLY FREE OF DIVIDEND | ||||||
INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL THROUGH 2022(3) |
(1) | Average commodity prices are from EIA. Crude oil prices are in dollars per barrel and natural gas prices are in dollars per million Btu. | ||||||
(2) | Based on the closing price of Kimbell common units on October 25, 2019. | ||||||
(3) | Moreover, less than 25% of distributions paid to common unitholders for the subsequent three years (2023 to 2025) are expected to be taxable dividend income. Please refer to the press release issued on May 13, 2019 for more information concerning the expected federal income tax treatment of distributions to common unitholders. |
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 92,000 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 our distributions, our 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 our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners, LP 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
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-third-quarter-2019-distribution-300945804.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Oct. 2, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced it will release its third quarter 2019 financial results on Thursday, November 7, 2019, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through August 15 by dialing 201-612-7415 and using the conference ID: 13694675#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-third-quarter-2019-earnings-release-and-conference-call-300929113.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Sept. 17, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced its plans to participate in the UBS Houston Energy Bus Tour on Thursday, September 19, 2019, and the Credit Suisse 2nd Annual Minerals Conference on Wednesday, October 2, 2019, in New York City.
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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-ubs-houston-energy-bus-tour-and-credit-suisse-minerals-conference-in-new-york-300919298.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Aug. 8, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced financial and operating results for the second quarter ended June 30, 2019.
Second Quarter 2019 Highlights
Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner commented, "After closing approximately $700 million in acquisitions over the last twelve months, we completed the integration of the Phillips assets, which we recently acquired from EnCap, in the second quarter. We are very pleased with the cash flow generation, production stability and growth potential across our asset base, especially in a challenging time for many exploration and production companies operating in the U.S. Our rig count remained flat between Q1 and Q2 2019 at 89 rigs and our market share of the entire lower 48 drilling fleet increased to 9.5% from 9.1%, a testament to the quality of our acreage and operators. In addition, revenue growth in the quarter reflected a full quarter of our Phillips assets, improved differentials and the receipt of over $1 million in lease bonuses. With our most recent distribution of 39 cents per common unit, Kimbell is now paying a 11.3% annualized yield, which we expect will not be subject to dividend income taxes and instead expect to be considered a return of capital.
"We continue to actively evaluate a number of acquisition opportunities across our many basins. We remain focused on assembling a high-quality, low PDP decline and diversified royalty portfolio that generates substantial cash flow and growth potential with no additional capital outlays. We will remain patient and highly selective on seeking the best acquisition opportunities that are not only immediately accretive to our unitholders, but also enhance the long-term value of our overall portfolio," concluded Robert Ravnaas.
Second Quarter 2019 Distribution
On July 26, 2019, Kimbell announced a cash distribution of $0.39 per common unit, a 5.4% increase compared to the first quarter of 2019. 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.
Financial Highlights
Total second quarter 2019 revenues increased to $31.9 million compared to $10.7 million in the second quarter of 2018, primarily due to a full quarter of production and operating activities from the assets acquired in the Haymaker acquisition, dropdown and Phillips acquisition. Second quarter 2019 net loss was $20.4 million and net loss attributable to common units was $11.8 million, or $0.54 per common unit, compared to net income attributable to common units of $1.4 million in the second quarter of 2018. The decrease in net income during the second quarter of 2019 was primarily due to a $28.1 million non-cash impairment expense recorded during the quarter.
Total second quarter 2019 consolidated Adjusted EBITDA grew to $21.6 million, compared to $7.7 million in the second 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 second quarter of 2019, average realized price per Bbl of oil was $57.55, per Mcf of natural gas was $2.44, per Bbl of NGLs was $19.55 and per Boe combined was $25.98.
Kimbell recorded a $28.1 million non-cash impairment expense in the second quarter of 2019, 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.
General and administrative ("G&A") expenses were $6.2 million in Q2 2019, $4.1 million of which was cash G&A expense or $3.82 per Boe, down from $3.95 per Boe in Q1 2019. Non-cash G&A in Q2 2019 was $2.1 million or $1.97 per Boe. Excluding the effect of one-time severance costs of $0.1 million in cash G&A and $0.3 million in non-cash G&A incurred in Q2 2019, cash G&A per Boe was $3.71 and non-cash G&A per Boe was $1.67.
As of June 30, 2019, Kimbell had outstanding 23,094,135 common units and 23,814,342 Class B units. As of August 7, 2019, Kimbell had outstanding 23,494,135 common units and 23,414,342 Class B units. The change in the mix between units is due to an exchange of certain Class B units for an equal number of common units following the second quarter of 2019.
Production
Second quarter 2019 average daily production was 11,807 Boe per day. Production for Q2 2019 was composed of approximately 37% from liquids (25% from oil and 12% from NGLs) and 63% from natural gas on a 6:1 basis.
2019 Guidance
Kimbell reaffirms the financial guidance for 2019 that was provided in its March 25, 2019 press release.
Liquidity
At June 30, 2019, Kimbell's total debt to consolidated Adjusted EBITDA ratio was 1.0x based on Q2 2019 annualized consolidated Adjusted EBITDA.
On May 28, 2019, the borrowing base under Kimbell's revolving credit facility was increased from $200 million to $300 million and total commitments were increased from $200 million to $225 million. At June 30, 2018, Kimbell had $87.3 million outstanding and $137.7 million in undrawn capacity under the revolving credit facility (or $212.7 million if the accordion feature was exercised). 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 the revolving credit facility at June 30, 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 June 30, 2019, Kimbell had hedged daily oil and natural gas production of approximately 20% of its production. Please see the supplemental schedule at the end of this news release for hedging details.
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 second 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 August 15, 2019 by dialing 201-612-7415 and using the conference ID 13691697#. A webcast of the call will also be available live and for later replay on Kimbell Royalty Partners' website at http://kimbellrp.investorroom.com under Events and Presentations.
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 92,000 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 risks and uncertainties, including risks and uncertainties relating to the tax treatment of Kimbell's distributions, Kimbell's business, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission ("SEC"). These include risks that the anticipated benefits of the Phillips acquisition are not realized, 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 Phillips 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.
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) | ||
June 30, | ||
2019 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 16,888 |
Oil, natural gas and NGL receivables | 18,872 | |
Commodity derivative assets | 1,957 | |
Accounts receivable and other current assets | 376 | |
Total current assets | 38,093 | |
Property and equipment, net | 817 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 987,748 | |
Less: accumulated depreciation, depletion and impairment | (161,301) | |
Total oil and natural gas properties, net | 826,447 | |
Right-of-use assets, net | 620 | |
Loan origination costs, net | 2,749 | |
Total assets | $ | 868,726 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 1,184 |
Other current liabilities | 4,206 | |
Total current liabilities | 5,390 | |
Commodity derivative liabilities | 291 | |
Operating lease liabilities | 616 | |
Long-term debt | 87,310 | |
Total liabilities | 93,607 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 71,820 | |
Unitholders' Equity: | ||
Common units | 337,096 | |
Class B units | 1,191 | |
Total unitholders' equity | 338,287 | |
Noncontrolling interest | 365,012 | |
Total equity | 703,299 | |
Total liabilities, mezzanine equity and unitholders' equity | $ | 868,726 |
Kimbell Royalty Partners, LP | |||||
Condensed Consolidated Statements of Operations | |||||
(Unaudited, in thousands, except per-unit data and unit count) | |||||
Three Months Ended | Three Months Ended | ||||
June 30, 2019 | June 30, 2018 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 27,914 | $ | 10,812 | |
Lease bonus and other income | 1,289 | 434 | |||
Gain (loss) on commodity derivative instruments | 2,734 | (538) | |||
Total revenues | 31,937 | 10,708 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 1,925 | 805 | |||
Depreciation and depletion expense | 12,311 | 3,432 | |||
Impairment of oil and natural gas properties | 28,147 | — | |||
Marketing and other deductions | 1,749 | 609 | |||
General and administrative expenses | 6,221 | 4,000 | |||
Total costs and expenses | 50,353 | 8,846 | |||
Operating (loss) income | (18,416) | 1,862 | |||
Other expense | |||||
Interest expense | 1,442 | 484 | |||
Net (loss) income before income taxes | (19,858) | 1,378 | |||
Provision for income taxes | 508 | — | |||
Net (loss) income | (20,366) | 1,378 | |||
Distribution and accretion on Series A preferred units | (3,470) | — | |||
Net loss attributable to noncontrolling interests | 12,101 | — | |||
Distributions on Class B units | (23) | — | |||
Net (loss) income attributable to common units | $ | (11,758) | $ | 1,378 | |
Basic | $ | (0.54) | $ | 0.08 | |
Diluted | $ | (0.54) | $ | 0.08 | |
Weighted average number of common units outstanding | |||||
Basic | 21,727,185 | 16,377,476 | |||
Diluted | 21,727,185 | 16,809,149 |
Kimbell Royalty Partners, LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define 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, transaction costs, 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. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | |||||
Supplemental Schedules | |||||
(Unaudited, in thousands) | |||||
Three Months Ended | Three Months Ended | ||||
June 30, 2019 | June 30, 2019 | ||||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA | |||||
Net cash provided by operating activities | $ | 23,332 | $ | 6,895 | |
Interest expense | 1,442 | 484 | |||
Provision for income taxes | 508 | — | |||
Impairment of oil and natural gas properties | (28,147) | — | |||
Amortization of right-of-use assets | (11) | — | |||
Amortization of loan origination costs | (260) | (16) | |||
Unit-based compensation | (2,113) | (723) | |||
Change in fair value of open commodity derivative instruments | 2,604 | (469) | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL revenues receivable | (2,600) | 38 | |||
Other receivables | (167) | (145) | |||
Accounts payable | 257 | (826) | |||
Other current liabilities | (960) | 56 | |||
Lease liabilities | 10 | — | |||
Consolidated EBITDA | $ | (6,105) | $ | 5,294 | |
Add: | |||||
Transaction costs | — | 1,189 | |||
Impairment of oil and natural gas properties | 28,147 | — | |||
Unit-based compensation | 2,113 | 723 | |||
Change in fair value of open commodity derivative instruments | (2,604) | 469 | |||
Consolidated Adjusted EBITDA | $ | 21,551 | $ | 7,675 | |
Adjusted EBITDA attributable to non-controlling interest | (10,941) | — | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 10,610 | $ | 7,675 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
June 30, 2019 | ||
Net loss | $ | (20,366) |
Depreciation and depletion expense | 12,311 | |
Interest expense | 1,442 | |
Provision for income taxes | 508 | |
Consolidated EBITDA | $ | (6,105) |
Impairment of oil and natural gas properties | 28,147 | |
Unit-based compensation | 2,113 | |
Change in fair value of open commodity derivative instruments | (2,604) | |
Consolidated Adjusted EBITDA | $ | 21,551 |
Adjusted EBITDA attributable to non-controlling interest | (10,941) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 10,610 |
Adjustments to reconcile Adjusted EBITDA to cash available | ||
for distribution | ||
Cash interest expense | 583 | |
Cash distributions on Series A preferred units | 948 | |
Cash income tax expense(1) | 504 | |
Cash distributions on Class B units | 23 | |
Cash reserves(1) | (504) | |
Cash available for distribution on common units | $ | 9,056 |
Common units outstanding on June 30, 2019 | 23,094,135 | |
Cash available for distribution per common unit outstanding | $ | 0.39 |
Common units outstanding on August 5, 2019 Record Date | 23,494,135 | |
Second quarter 2019 distribution declared | $ | 0.39 |
(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 | ||
March 31, 2019 | ||
Net loss | $ | (5,346) |
Depreciation and depletion expense | 10,281 | |
Interest expense | 1,423 | |
Consolidated EBITDA | $ | 6,358 |
Impairment of oil and natural gas properties | 2,802 | |
Unit-based compensation | 1,770 | |
Change in fair value of open commodity derivative instruments | 5,166 | |
Consolidated Adjusted EBITDA | $ | 16,096 |
Adjusted EBITDA attributable to non-controlling interest | (9,407) | |
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP | $ | 6,689 |
Adjustments to reconcile Adjusted EBITDA to cash available | ||
for distribution | ||
Cash interest expense | 624 | |
Cash distributions on Series A preferred units | 800 | |
Cash distributions on Class B units | 23 | |
Cash available for distribution on common units | $ | 5,242 |
Common units outstanding on March 31, 2019 | 19,495,403 | |
Cash available for distribution per common unit outstanding | $ | 0.27 |
Common units outstanding on May 6, 2019 Record Date | 23,095,403 | |
First quarter 2019 distribution declared(1) | $ | 0.37 |
(1)The difference between the declared distribution and the cash available for distribution is primarily attributable to the acquisition of the Phillips assets being effective on January 1, 2019, but only reflected in the condensed consolidated financial statements from March 25, 2019 onward. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
June 30, 2018 | ||
Net income | $ | 1,378 |
Depreciation and depletion expense | 3,432 | |
Interest expense | 484 | |
EBITDA | $ | 5,294 |
Transaction costs | 1,189 | |
Unit-based compensation | 723 | |
Unrealized loss on commodity derivative instruments | 469 | |
Adjusted EBITDA | $ | 7,675 |
Adjustments to reconcile Adjusted EBITDA to cash available | ||
for distribution | ||
Cash interest expense | (502) | |
Cash available for distribution | $ | 7,173 |
Limited partner units outstanding on June 30, 2018 | 16,839,462 | |
Cash available for distribution per common unit outstanding | $ | 0.43 |
Limited partner units outstanding on August 6, 2018 Record Date(1) | 26,839,462 | |
Second Quarter 2018 Distribution Declared(2) | $ | 0.43 |
(1) Includes 10 million units issued as partial consideration in the Haymaker acquisition. | ||
(2) Includes allocated post-April 1, 2018 effective date cash receipts from the acquired Haymaker assets. |
Kimbell Royalty Partners, LP | ||||
Supplemental Schedules | ||||
(Unaudited) | ||||
Fixed Price Swaps as of June 30, 2019 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
3Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
4Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
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 | 51,570 | 726,030 | $ 56.10 | $ 2.85 |
2Q 2021 | 59,423 | 836,381 | $ 54.52 | $ 2.43 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-record-second-quarter-2019-results-300898396.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 26, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 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 $0.39 per common unit for the second quarter of 2019. The distribution will be payable on August 12, 2019 to common unitholders of record at the close of business on August 5, 2019.
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 92,000 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 risks and uncertainties, including risks relating to our 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 our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners, LP 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
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-second-quarter-2019-distribution-300891811.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 5, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced its participation in the following upcoming conferences:
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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-upcoming-investor-conferences-300879364.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 1, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced it will release its second quarter 2019 financial results on Thursday, August 8, 2019, before the market opens. In conjunction with the release, Kimbell has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through August 15 by dialing 201-612-7415 and using the conference ID: 13691697#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-second-quarter-2019-earnings-release-and-conference-call-300878624.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, June 13, 2019 /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 92,000 gross producing wells across 28 states, today announced its participation in the upcoming Oil & Gas Council New York City Finance Assembly on Monday, June 17, 2019, and J.P. Morgan Energy Conference on Tuesday and Wednesday, June 18 – 19, 2019.
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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-oil--gas-council-new-york-city-finance-assembly-and-jp-morgan-energy-conference-300866887.html
SOURCE Kimbell Royalty Partners, LP
DENVER, June 12, 2019 /PRNewswire/ -- EnerCom has released the presentation schedule for the oil and gas companies presenting at its 24th annual The Oil & Gas Conference® on Aug. 11-14, 2019, in Denver, Colorado.
Day One Presenting Companies at the 2019 EnerCom Conference
Aug. 12, 2019, the first day of the EnerCom conference presentation schedule, features a large, established group of operators working across North America's shale basins and internationally, including:
The conference investor presentations begin at 7:30 a.m. and run through 4:30 p.m. on Monday, Aug. 12.
Expert Speakers: Global energy industry leaders, economists, market strategists, government officials, energy finance professionals and other energy experts will provide their insights on global commodities markets, energy exports, frac sand supply and logistics, and capital sources for energy development.
EnerCom is pleased to include Credit Agricole CIB's Chief Economist for the United States Michael Carey as a guest expert speaker at 11:30 a.m. on Monday, Aug. 12. Carey will provide his insight on energy markets, capital markets and market conditions going forward.
Monday's luncheon keynote address on Aug. 12, 2019 will be provided by Cedric Burgher, Occidental Petroleum (NYSE: OXY) CFO.
Online Registration is Open for EnerCom's 24TH Annual The Oil & Gas Conference®: Buyside investors and oil and gas company professionals may register for the event through the conference website registration page.
Conference Details: The Oil & Gas Conference® 24 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and to gain exposure to important energy topics affecting the global oil and gas industry.
The EnerCom conference forum fosters healthy dialogue and informal networking opportunities for attendees at several sponsored events the week of the conference.
Public and Private Company Presenters: The 2019 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations around the world including the U.S. shale basins, the Gulf of Mexico and Canada. A work-in-progress list of the 2019 presenting companies will be updated on the conference website. The daily schedule of presenters is also posted on the website (presenters, days, times are subject to change).
How to Hear the Luncheon Speakers: Completing online registration well in advance of The Oil & Gas Conference® will provide your best chance to gain insight from Occidental Petroleum SVP and chief financial officer Cedric Burgher, Continental Resources Chairman and CEO Harold Hamm, and global supermajor Eni, SpA VP of North America Investor Relations Andrew Lees.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, family offices, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2018, EnerCom arranged and managed more than 2,000 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies may register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; and Drillinginfo. Sponsors of The Oil & Gas Conference® 24 include CIBC; Credit Agricole CIB; McGriff, Seibels & Williams; Haynes and Boone; Moss Adams; PNC; Preng & Associates; Bank of America Merrill Lynch; DNB Bank ASA; Holland & Hart; MUFG; Petrie Partners; SMBC; and Wells Fargo.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized management consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor relations, media relations, external communications and visual communications design.
EnerCom produces and publishes numerous data products and external communications tools for public energy companies and oil and gas investors including:
Headquartered in Denver, with senior consultants in Dallas, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries. EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 11-14, 2019
EnerCom Dallas – Q1 - 2020
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About Drillinginfo
Drillinginfo delivers business-critical insights to the energy, power, and commodities markets. Its state-of-the-art SaaS platform offers sophisticated technology, powerful analytics, and industry-leading data. Drillinginfo's solutions deliver value across upstream, midstream and downstream markets, empowering exploration and production (E&P), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be more collaborative, efficient, and competitive. Drillinginfo delivers actionable intelligence over mobile, web, and desktop to analyze and reduce risk, conduct competitive benchmarking, and uncover market insights. Drillinginfo serves over 5,000 companies globally from its Austin, Texas headquarters and has more than 1,000 employees.
For more information visit drillinginfo.com
About CIBC
CIBC is a leading Canadian-based global financial institution with a reputation as a strong, reliable banking partner focused on delivering customized products and services built on innovative thinking and leading technology.
Through our major business units – Canadian Personal & Business Banking, Canadian Commercial Banking & Wealth Management, U.S. Commercial Banking & Wealth Management and Capital Markets – our more than 45,000 employees provide a full range of financial products and services to 10 million clients around the world.
With offices throughout North America and other major financial centers, we are widely recognized as a strong global financial institution with more than $634 billion in assets and a market capitalization of $50 billion. We are rated A+ by Standard & Poor's, Aa2 by Moody's Investor Service and AA- by Fitch Ratings.
Our dedicated industry specialists based in Houston, New York, Calgary, London, Hong Kong, Beijing, Tokyo, Singapore and Sydney draw on the breadth of our capabilities to support firms across the entire energy value chain. From credit commitments, A&D advisory, M&A, and capital markets, we help our clients achieve their objectives and unlock value across a range of market conditions.
Visit www.cibccm.com/energy to learn more about CIBC Capital Markets and our energy capabilities.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
McGriff, Seibels & Williams
As one of the most progressive insurance brokerage firms in the United States, McGriff, Seibels & Williams leads the way with innovative programs to protect our clients' financial interests. Our experienced professionals work with some of the world's largest corporations to design state-of-the-art solutions for a full range of needs "…from property and casualty exposures…to employee benefits, life and pension plans…to financial services and surety products…to specialty insurance programs."
Our philosophy of personal service and attention to individual needs puts the client at the top of our organizational chart. We work to make each relationship a long-term partnership that continues to grow in value.
For more information please visit mcgriff.com.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group. With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Holland & Hart
Holland & Hart's oil and gas clients include the major, large independent producers and small to medium sized independents.
The Mountain West is one of the nation's leading oil and gas producing regions, and we are the only law firm with established oil and gas lawyers in every state in the region. We provide clients broad-based, in-depth industry knowledge and legal capabilities by local practitioners who have long-standing professional relationships with decision makers in each of the Mountain West states.
We assist clients at every stage of the oil and gas business, from upstream activities including exploration, production, secondary and tertiary recovery, to midstream gathering and processing activities; and to downstream elements including refining, pipelines, local distribution, marketing, and Federal and State utility regulation. Within each segment of the oil and gas business, Holland & Hart's regional team has experience providing representation every step of the way.
For details, please contact Lisa Adelberg in the Denver office: (303) 295-8148.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Petrie Partners
Petrie Partners, LLC is a boutique investment banking firm offering financial advisory services to the oil and gas industry. We provide specialized advice on mergers, divestitures and acquisitions and private placements.
For more information please refer to petrie.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
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SOURCE EnerCom, Inc.
FORT WORTH, Texas, May 28, 2019 /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 92,000 gross producing wells across 28 states, today is pleased to announce the increase of the borrowing base and total commitments under the Company's revolving credit facility. In connection with the May 2019 redetermination under the revolving credit facility, the borrowing base was increased 50% from $200 million to $300 million and total commitments were increased from $200 million to $225 million (or up to $300 million if the accordion feature is exercised). Based on the increased amounts of the borrowing base and total commitments, the Company can borrow up to $225 million under the revolving credit facility. At March 31, 2019, the Company had $87.3 million outstanding and $112.7 million of undrawn capacity under its revolving credit facility. If the increases in the borrowing base and commitments had been effective on March 31, 2019, the Company's undrawn capacity under the revolving credit facility would have been $137.7 million (or $212.7 million if the accordion feature had been exercised). Increases in commitments pursuant to the revolving credit facility's accordion feature are subject to the satisfaction of certain conditions, including obtaining additional commitments from new or existing lenders.
Davis Ravnaas, President and Chief Financial Officer of the Company's general partner, said, "We are pleased with the increase of the borrowing base and total commitments under our revolving credit facility, which enhances our flexibility and liquidity. We are also appreciative of the continued support from the eight banks in our credit facility syndicate. We view these banks as our long-term partners and believe they have played a key role in facilitating our substantial growth over the last year."
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 17, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced its participation in the upcoming UBS Global Oil and Gas Conference in Austin, Texas on Tuesday and Wednesday, May 21 – 22, 2019.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-ubs-global-oil-and-gas-conference-300852188.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 13, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced the expected favorable federal income tax treatment of its future earnings and distributions paid to Kimbell common unitholders for at least the next seven years (through at least the year 2025).
The company expects that:
Distributions in excess of the amount taxable as dividend income will reduce an investor's tax basis in its units, or produce capital gain to the extent they exceed an investor's tax basis. The reduced tax basis will increase an investor's capital gain when it sells its units.
"This is a significant development for the company to be able to now provide this new level of tax detail. This favorable tax treatment significantly enhances the after-tax return from the distributions paid to our common unitholders for years to come," said Davis Ravnaas, President and Chief Financial Officer of Kimbell Royalty Partners' general partner. "We have spent a considerable amount of time working with our advisors in order to optimize the after-tax return to our common unitholders as we have grown the company significantly over the last two years. We are pleased with this outcome for our common unitholders and believe that this favorable tax treatment further strengthens the investment case for the company along with our world class mineral and royalty asset base, recent record operating results and significant free cash flow generation."
This expected favorable tax treatment is the result of certain non-cash expenses (principally depletion) substantially offsetting the company's taxable income and tax "earnings and profits." The company's estimates of the tax treatment of company earnings and distributions are based upon assumptions regarding the capital structure and earnings of our operating company, the capital structure of the company and the amount of the earnings of our operating company allocated to the company. Many factors may impact these estimates, including changes in drilling and production activity, commodity prices, future acquisitions or changes in the business, economic, regulatory, legislative, competitive or political environment in which the company operates. These estimates are based on current tax law and tax reporting positions that we have adopted and with which the Internal Revenue Service could disagree. These estimates are not fact and should not be relied upon as being necessarily indicative of future results, and no assurances can be made regarding these estimates. Investors are encouraged to consult with their tax advisor on this matter.
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 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. All statements in this news release concerning federal income tax treatment of future earnings and distributions are forward-looking statements. These forward-looking statements involve numerous risks and uncertainties, many of which are beyond our control, including (but not limited to) risks relating to drilling and production activity, commodity prices, future acquisitions or changes in the business, economic, regulatory, legislative, competitive or political environment in which the company operates and the securities markets generally. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners 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
FORT WORTH, Texas, May 9, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in over 92,000 gross producing wells across 28 states, today announced financial and operating results for the first quarter ended March 31, 2019. Q1 2019 revenue, consolidated net loss and consolidated adjusted EBITDA shown below only reflect seven days of production and operating activities from the Phillips assets.
First Quarter 2019 Highlights
Robert Ravnaas, chairman and chief executive officer of Kimbell Royalty Partners' general partner commented, "We are excited to announce our record first quarter 2019 average daily production of 11,958 Boe/d(1). The Phillips assets are performing above our expectations and we anticipate many years of additional development across this newly acquired mineral position. With our first quarter distribution of 37 cents per common unit, which will be paid on May 13, 2019, we will have paid out $3.27 per common unit in distributions in just over two years since our IPO, which is 18% of our IPO price. Our balance sheet remains conservative at approximately 1.1x debt to consolidated adjusted EBITDA (reflecting a full quarter of the Phillips assets) and deal flow is strong as we continue to evaluate a number of transactions across the minerals space."
We continue to experience the best of both worlds from our broad, stable and diverse portfolio of assets, featuring organic growth from our recently acquired assets, coupled with the stability of one of the industry's lowest PDP decline rate from Kimbell's legacy assets."
First Quarter 2019 Distribution
On April 26, 2019, Kimbell announced a cash distribution of $0.37 per common unit, a 7.5% reduction as compared to the fourth quarter of 2018 primarily due to a 9.4% reduction in realized prices between quarters. 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 a unitholder's common units. The reduced tax basis will increase a unitholder's capital gain (or decrease a unitholder's capital loss) when the unitholder sells its units.
Financial Highlights
Total first quarter 2019 revenues increased 65% from the first quarter of last year to $17.9 million. First quarter 2019 net loss attributable to common units was $3.7 million, or $0.21 per common unit, compared to net loss attributable to common units of $52.8 million (included a non-cash impairment expense of $54.8 million) in the first quarter of last year.
Total first quarter 2019 consolidated adjusted EBITDA was $16.1 million, versus $7.6 million in the first quarter of last year (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 first quarter 2019, average realized price per Bbl for oil was $50.89, natural gas per Mcf was $2.68, and NGLs per Bbl was $19.70.
Kimbell recorded a $2.8 million non-cash impairment expense in the first quarter of 2019 as a result of its full-cost ceiling analysis during the quarter. This non-cash impairment expense is not expected to impact the cash flow available for distribution generated by Kimbell nor its liquidity or ability to make acquisitions in the future.
General and administrative ("G&A") expenses were $5.3 million in Q1 2019, of which $3.6 million was cash G&A expense.
As of March 31, 2019, Kimbell had outstanding 19,495,403 common units and 27,414,342 Class B units. As of May 8, 2019, Kimbell had outstanding 23,095,403 common units and 23,814,342 Class B units. The change in the mix between units is due to an exchange of certain Class B units for an equal number of common units following the first quarter of 2019.
Production
First quarter 2019 average daily production increased 19% from the Q4 2018 and 228% from Q1 2018, to 11,958 Boe per day (reflects average daily production during the period from March 25, 2019 through March 31, 2019 after giving effect to the Phillips acquisition), for total production of 902,877 Boe. First quarter 2019 average daily production for the full quarter was 10,032 Boe per day. Production for Q1 2019 was composed of approximately 38% from liquids (25% from oil and 13% from NGLs) and 62% from natural gas on a 6:1 basis.
2019 Guidance
Kimbell reaffirms its financial guidance for 2019 that was initiated in the company's March 25, 2019 press release.
Liquidity
At March 31, 2019, Kimbell's debt to consolidated adjusted EBITDA was 1.1x (reflecting a full quarter of the Phillips assets) based on Q1 2019 annualized consolidated adjusted EBITDA.
At March 31, 2019, Kimbell had $87.3 million outstanding under its $200.0 million revolving credit facility and was in compliance with all related financial covenants.
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 March 31, 2019, Kimbell had hedged daily oil and natural gas production of approximately 20% of its production. Please see the supplemental schedule at the end of this news release for hedging details.
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 first 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 May 16, 2019 by dialing 201-612-7415 and using the conference ID 13688870#. A webcast of the call will also be available live and for later replay on Kimbell Royalty Partners' website at http://kimbellrp.investorroom.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 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 risks and uncertainties, including risks and uncertainties relating to the tax treatment of Kimbell's distributions, Kimbell's business, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission ("SEC"). These include risks that the anticipated benefits of the Phillips acquisition are not realized, 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 Phillips 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.
1 Reflects average daily production during the period from March 25, 2019 through March 31, 2019 after giving effect to the Phillips acquisition. Kimbell was entitled to the cash flows from the Phillips assets as of January 1, 2019 even though the acquisition closed on March 25, 2019.
2 Includes production attributable to the assets acquired in the Phillips acquisition for the period from March 25, 2019 through March 31, 2019 on a 6:1 basis.
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) | ||
March 31, | ||
2019 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 13,544 |
Oil, natural gas and NGL receivables | 21,471 | |
Commodity derivative assets | 30 | |
Other current assets | 543 | |
Total current assets | 35,588 | |
Property and equipment, net | 755 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 987,149 | |
Less: accumulated depreciation, depletion and accretion | (120,853) | |
Total oil and natural gas properties | 866,296 | |
Right-of-use assets, net | 598 | |
Loan origination costs, net | 2,921 | |
Total assets | $ | 906,158 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 1,164 |
Other current liabilities | 3,246 | |
Total current liabilities | 4,410 | |
Commodity derivative liabilities | 967 | |
Lease liabilities | 593 | |
Long-term debt | 87,310 | |
Total liabilities | 93,280 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 70,276 | |
Unitholders' Equity: | ||
Common units | 300,579 | |
Class B units | 1,371 | |
Total unitholders' equity | 301,950 | |
Noncontrolling interest | 440,652 | |
Total equity | 742,602 | |
Total liabilities, mezzanine equity, and equity | $ | 906,158 |
Kimbell Royalty Partners, LP | |||||
Condensed Consolidated Statements of Operations | |||||
(Unaudited, in thousands, except per-unit data and unit count) | |||||
Three Months Ended | Three Months Ended | ||||
March 31, 2019 | March 31, 2018 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 22,833 | $ | 10,808 | |
Lease bonus and other income | 84 | 368 | |||
Loss on commodity derivative instruments | (4,970) | (285) | |||
Total revenues | 17,947 | 10,891 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 1,597 | 816 | |||
Depreciation, depletion and accretion expenses | 10,281 | 4,456 | |||
Impairment of oil and natural gas properties | 2,802 | 54,753 | |||
Marketing and other deductions | 1,857 | 570 | |||
General and administrative expenses | 5,333 | 2,771 | |||
Total costs and expenses | 21,870 | 63,366 | |||
Operating loss | (3,923) | (52,475) | |||
Other expense | |||||
Interest expense | 1,423 | 350 | |||
Net loss | (5,346) | (52,825) | |||
Distribution and accretion on Series A preferred units | (3,470) | — | |||
Net loss attributable to noncontrolling interests | 5,152 | — | |||
Distributions on Class B units | (23) | — | |||
Net loss attributable to common units | $ | (3,687) | $ | (52,825) | |
Basic | $ | (0.21) | $ | (3.23) | |
Diluted | $ | (0.21) | $ | (3.23) | |
Weighted average number of common units outstanding | |||||
Basic | 17,971,300 | 16,345,117 | |||
Diluted | 17,971,300 | 16,345,117 |
Kimbell Royalty Partners, LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define 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, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | |||||
Supplemental Schedules | |||||
(Unaudited, in thousands) | |||||
Three Months Ended | Three Months Ended | ||||
March 31, 2019 | March 31, 2018 | ||||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA | |||||
Net cash provided by operating activities | $ | 15,812 | $ | 7,294 | |
Interest expense | 1,423 | 350 | |||
Impairment of oil and natural gas properties | (2,802) | (54,753) | |||
Amortization of right-of-use assets | (11) | — | |||
Amortization of loan origination costs | (258) | (16) | |||
Unit-based compensation | (1,770) | (669) | |||
Change in fair value of open commodity derivative instruments | (5,166) | (212) | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL revenues receivable | (1,294) | (233) | |||
Other receivables | 492 | 135 | |||
Accounts payable | 692 | (379) | |||
Other current liabilities | (777) | 464 | |||
Lease liabilities | 17 | — | |||
Consolidated EBITDA | $ | 6,358 | $ | (48,019) | |
Add: | |||||
Impairment of oil and natural gas properties | 2,802 | 54,753 | |||
Unit-based compensation | 1,770 | 669 | |||
Change in fair value of open commodity derivative instruments | 5,166 | 212 | |||
Consolidated Adjusted EBITDA | $ | 16,096 | $ | 7,615 | |
Adjusted EBITDA attributable to non-controlling interest | (9,407) | — | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners LP | $ | 6,689 | $ | 7,615 |
Kimbell Royalty Partners, LP | ||||||||||||
Supplemental Schedules | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, 2019 | ||||||||||||
Net loss | $ | (5,346) | ||||||||||
Depreciation, depletion and accretion expenses | 10,281 | |||||||||||
Interest expense | 1,423 | |||||||||||
Consolidated EBITDA | $ | 6,358 | ||||||||||
Impairment of oil and natural gas properties | 2,802 | |||||||||||
Unit-based compensation | 1,770 | |||||||||||
Change in fair value of open commodity derivative instruments | 5,166 | |||||||||||
Consolidated Adjusted EBITDA | $ | 16,096 | ||||||||||
Adjusted EBITDA attributable to non-controlling interest | (9,407) | |||||||||||
Adjusted EBITDA attributable to Kimbell Royalty Partners LP | $ | 6,689 | ||||||||||
Adjustments to reconcile Adjusted EBITDA to cash available | ||||||||||||
for distribution | ||||||||||||
Cash interest expense | 624 | |||||||||||
Cash distributions on Series A preferred units | 800 | |||||||||||
Cash distributions on Class B units | 23 | |||||||||||
Cash available for distribution on common units | $ | 5,242 | ||||||||||
Common units outstanding on March 31, 2019 | 19,495,403 | |||||||||||
Cash available for distribution per common unit outstanding | $ | 0.27 | ||||||||||
Common units outstanding on May 6, 2019 Record Date | 23,095,403 | |||||||||||
First quarter 2019 distribution declared(1) | $ | 0.37 |
(1) | The difference between the declared distribution and the cash available for distribution is primarily attributable to the acquisition of the Phillips assets being effective on January 1, 2019, but only reflected in the condensed consolidated financial statements from March 25, 2019 onward. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
March 31, 2018 | ||
Net loss | $ | (52,825) |
Depreciation, depletion and accretion expenses | 4,456 | |
Interest expense | 350 | |
EBITDA | $ | (48,019) |
Impairment of oil and natural gas properties | 54,753 | |
Unit-based compensation | 669 | |
Unrealized loss on commodity derivative instruments | 212 | |
Adjusted EBITDA | $ | 7,615 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution | ||
Cash interest expense | 475 | |
Cash available for distribution | $ | 7,140 |
Limited partner units outstanding(1) | 16,834,984 | |
Cash available for distribution per common unit outstanding | $ | 0.42 |
(1) As of first quarter 2018 distribution record date of May 7, 2018. |
Kimbell Royalty Partners, LP | ||||
Supplemental Schedules | ||||
(Unaudited) | ||||
Fixed Price Swaps as of March 31, 2019 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
2Q 2019 | 55,874 | 962,143 | $ 61.47 | $ 2.74 |
3Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
4Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
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 | 51,570 | 726,030 | $ 56.10 | $ 2.85 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-first-quarter-2019-results-300847075.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 26, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.37 per common unit for the first quarter of 2019. The distribution will be payable on May 13, 2019 to common unitholders of record at the close of business on May 6, 2019.
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 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 risks and uncertainties, including risks relating to our 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 our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners, LP 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
FORT WORTH, Texas, April 8, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that an updated investor presentation has been posted on the Investor Relations section of its website and is currently available in the Events and Presentations section at http://www.kimbellrp.investorroom.com.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 gross producing wells with over 40,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 1, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced it will release its first quarter 2019 financial results on Thursday, May 9, 2019, before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through May 16 by dialing 201-612-7415 and using the conference ID 13688870#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 13 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 92,000 gross producing wells with over 39,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-first-quarter-2019-earnings-release-and-conference-call-300822066.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 25, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has closed the previously announced purchase of certain oil and gas royalty assets from EnCap Investments L.P. ("EnCap") for 9.4 million newly issued units in Kimbell Royalty Operating, LLC valued at approximately $171.6 million (the "Acquisition"). Kimbell is entitled to the cash flow from production attributable to the Acquisition beginning on and after January 1, 2019. Revenues and certain other operating statistics under generally accepted accounting principles ("GAAP") will be recorded for the Acquisition beginning on the closing date of March 25, 2019.
The Acquisition includes oil and natural gas mineral and royalty interests previously controlled by EnCap through Phillips Energy Partners, Phillips Energy Partners II and Phillips Energy Partners III and is expected to be immediately accretive to distributable cash flow per unit. The Acquisition includes a diversified package of royalty interests with approximately 77% of revenues from oil and natural gas liquids and over 64% of production (6:1) from the Eagle Ford Shale, Permian Basin, Haynesville Shale and Powder River Basin. The Acquisition also adds approximately 1,600 Boe/d of production (6:1), as well as seventeen rigs that are actively drilling on the acreage. In addition, the Acquisition adds approximately 12,200 net royalty acres, increasing Kimbell's total net royalty acre position by 9% to 144,100 net royalty acres across the continental U.S. Finally, the Acquisition maintains Kimbell's five-year PDP decline rate – pro forma at approximately 12%.
"With the closing of this acquisition, we are off to a great start to 2019. We continue to see strong activity across our acreage position as evidenced by the 90 rigs currently drilling on our acreage, which is approximately 9% of the entire U.S. lower 48 active drilling fleet. As a result, our guidance for the second quarter through the fourth quarter of 2019, at its midpoint, implies approximately 15% percent growth from our fourth quarter 2018 average daily net production rate1, without any incremental capital spending required. Kimbell offers a unique investment opportunity with solid growth coupled with an approximate 9% distribution yield, which we expect to be substantially tax-free in 2019. We remain extremely focused on executing our business plan and creating long-term value for our unitholders," said Bob Ravnaas, Chief Executive Officer of Kimbell's general partner.
2019 Guidance
Below is Kimbell's guidance for the full year of 2019. The guidance for the first quarter of 2019 reflects only seven days of production and operating statistics from the Acquisition following the closing based on management estimates, while the remaining quarters of 2019 reflect full quarters of production and operating statistics from the Acquisition based on management estimates:
Kimbell Royalty | ||||
Partners LP | ||||
Q1 2019: | ||||
Net Production - Mboe/d (6:1) | 9.60 | - | 10.20 | |
Oil Production - % of Net Production | 22% | - | 26% | |
Natural Gas Production - % of Net Production | 60% | - | 64% | |
Natural Gas Liquids Production - % of Net Production | 12% | - | 16% | |
Unit Costs ($/boe) | ||||
Marketing and other deductions | $2.00 | - | $2.75 | |
Depreciation, depletion and accretion expenses | $10.00 | - | $13.00 | |
G&A | ||||
Cash G&A | $3.95 | - | $4.15 | |
Non-Cash G&A | $1.90 | - | $2.25 | |
Production and ad valorem taxes | 6.0% | - | 8.0% | |
Q2 - Q4 2019: | ||||
Net Production - Mboe/d (6:1) | 11.00 | - | 12.20 | |
Oil Production - % of Net Production | 24% | - | 28% | |
Natural Gas Production - % of Net Production | 59% | - | 63% | |
Natural Gas Liquids Production - % of Net Production | 11% | - | 15% | |
Unit Costs ($/boe) | ||||
Marketing and other deductions | $2.00 | - | $2.75 | |
Depreciation, depletion and accretion expenses | $10.00 | - | $13.00 | |
G&A | ||||
Cash G&A | $3.65 | - | $3.85 | |
Non-Cash G&A | $1.60 | - | $1.80 | |
Production and ad valorem taxes | 6.0% | - | 8.0% |
Taxation of Distributions Paid by Kimbell to Common Unitholders
Kimbell expects that a substantial portion of all distributions paid to common unitholders in 2019, including the distribution with respect to the fourth quarter of 2018, will be a return of capital for tax purposes. Return of capital distributions are not taxable dividend income reportable on the recipients' 2019 1099-DIV, but instead generally reduce the recipient's tax basis in its units. However, many factors may impact this assessment of the extent to which our distributions are currently taxable, including changes in commodity prices, future acquisitions and changes in tax law. No assurances can be made regarding this tax treatment and investors are encouraged to consult with their tax advisor on this matter.
Forward-Looking Statements
This news release includes forward-looking statements, in particular statements relating to Kimbell's future operating and production results and the tax treatment of Kimbell's distributions. These and other forward-looking statements involve risks and uncertainties, including risks and uncertainties relating to Kimbell's business, prospects for growth and acquisitions and the securities markets generally. 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 Securities and Exchange Commission (the "SEC"). These include risks that the anticipated benefits of the Acquisition are not realized, 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; 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 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 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 Acquisition; risks relating to tax matters; 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.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. 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 92,000 gross producing wells with over 39,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
1 Based on daily production of 10,066 Boe/d during the period from December 20, 2018 through year-end 2018 after giving effect to the drop down transaction.
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SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 21, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced its participation in the upcoming Scotia Howard Weil 2019 Energy Conference in New Orleans, Louisiana on Tuesday, March 26, 2019.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.2 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content to download multimedia:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-scotia-howard-weil-2019-energy-conference-300816722.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 12, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that Kimbell filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2018 with the U.S. Securities and Exchange Commission ("SEC"). Kimbell's Annual Report on Form 10-K is available through its website at http://kimbellrp.investorroom.com/sec-filings, as well as on the SEC's website at www.sec.gov. Interested investors may obtain a hard copy of the Annual Report on Form 10-K, including Kimbell's complete audited financial statements, free of charge, by sending a request to Kimbell, C/O Dennard Lascar Investor Relations, to: KRP@dennardlascar.com, or by telephone at (713) 529-6600.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.2 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
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SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 7, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced financial and operating results for the fourth quarter ended December 31, 2018.
Fourth Quarter 2018 Highlights
[1] | Reflects average daily production during the period from December 20, 2018 through year-end 2018 after giving effect to the Drop Down transaction. |
[2] | Includes production attributable to the assets acquired in the Drop Down for the period from December 20, 2018 through year-end 2018. |
On December 20, 2018, Kimbell closed the acquisition of certain oil and gas royalty assets from certain affiliated sellers (the "Drop Down") for approximately $90.0 million. Even though Kimbell was entitled to cash flows from these assets as of October 1, 2018, under accounting principles generally accepted in the United States ("GAAP"), Kimbell may only record production, revenues, net income and other financial measures as of and from the closing date. Thus, the above fourth quarter 2018 highlights only include eleven days of operational activity from the Drop Down assets.
Recent Development
As previously disclosed, on February 6, 2019, Kimbell agreed to acquire certain oil and gas royalty assets owned by certain affiliates of EnCap Investments L.P. for approximately $151.3 million (the "Phillips Acquisition"). The Phillips Acquisition is expected to close in late March 2019. The closing of the Phillips Acquisition remains subject to the satisfaction of certain closing conditions, and there can be no assurance that it will be completed as planned or at all.
"The fourth quarter generated record high production and revenues, providing an excellent close to the year as we continue to build on this momentum in 2019," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner. "Since our initial public offering in February 2017, we have more than tripled our production and are poised for continued growth in 2019.
"With our recently announced Phillips Acquisition, we will have announced or completed approximately $700 million in acquisitions in just over six months. These acquisitions have transformed our company and positioned Kimbell as one of the leading consolidators within the U.S. royalty and minerals space.
"The assets we acquired in 2018 from Haymaker and through the Drop Down are outperforming our expectations. Most notably, the Haymaker assets experienced significant growth from new wells coming online in the Haynesville shale during the fourth quarter of 2018. Moreover, the Drop Down assets generated production growth from new wells that came online in the Eagle Ford shale. We are experiencing the best of both worlds – organic growth from our recently acquired assets, coupled with the stability of the PDP decline rate from Kimbell's legacy assets.
"In 2019, we continue to see positive trends in the royalty sector, including potential opportunities for additional accretive acquisitions as deal-flow remains high. Our company is performing at a high level, and we will continue to work hard to enhance value for our unitholders."
Fourth Quarter 2018 Distribution
On January 25, 2019, Kimbell announced a cash distribution of $0.40 per common unit. This represented an 11% increase from the fourth quarter of last year. Since our initial public offering ("IPO") in February 2017, we have paid total cash distributions of $2.90 per common unit. In addition, we expect this distribution to be substantially tax free.
Financial Highlights
Total fourth quarter 2018 revenues increased 64% from the prior quarter to $30.3 million and were up $20.6 million from the fourth quarter of last year. Fourth quarter 2018 net loss attributable to common units was $1.6 million, or $0.10 per common unit, compared to net loss attributable to common units of $3.7 million in the prior quarter and net income attributable to common units of approximately $1.1 million in the fourth quarter of last year. Fourth quarter 2018 consolidated net loss was $3.3 million, compared to consolidated net loss of $3.8 million in the prior quarter and consolidated net income of $1.1 million in the fourth quarter of last year.
Consolidated Adjusted EBITDA for the quarter totaled $14.9 million, versus $14.0 million in the prior quarter and $6.3 million in the fourth quarter of last year. (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). Average realized price per Bbl for oil was $53.77, natural gas per Mcf was $3.21, and NGLs per Bbl was $22.39.
Kimbell recorded a $12.6 million non-cash impairment expense in the fourth quarter of 2018 as a result of the full-cost ceiling limitation. This non-cash impairment expense is not expected to impact the cash flow available for distribution generated by Kimbell, nor its liquidity or ability to make acquisitions in the future. We will reflect such impairment in our financial statements filed with our upcoming Form 10-K for the year ended December 31, 2018.
General and administrative ("G&A") expenses were $5.2 million in Q4 2018, of which $4.2 million was cash G&A expense and included $0.9 million in costs associated with the Transition Services Agreement (the "TSA"), which relates to the integration of the acquisition of certain subsidiaries of Haymaker Minerals & Royalties, LLC and Haymaker Properties, L.P. (the "Haymaker Acquisition"). The TSA expired at year-end 2018, and no further costs will be incurred relating to the TSA.
As of December 31, 2018, Kimbell had outstanding 18,056,487 common units and 19,453,258 Class B units.
Production
Fourth quarter 2018 average daily production increased 18% from the prior quarter to 10,066 Boe per day (reflects average daily production during the period from December 20, 2018 through year-end after giving effect to the Drop Down transaction), for total production of 823,311 Boe. Fourth quarter 2018 average daily production for the full quarter was 8,949 Boe per day. Revenues were derived 56% from liquids (46% from oil and 10% from NGLs) and 44% from natural gas. Production was composed of approximately 37% liquids (24% oil and 13% NGLs) and 63% natural gas on a 6:1 basis.
Reserves
Ryder Scott Company, L.P. prepared an estimate of Kimbell's proved reserves as of December 31, 2018. Average prices of $65.56 per Bbl of oil and $3.10 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 $60.60 per Bbl of oil, $2.24 per Mcf of natural gas and $20.78 per Bbl of natural gas liquids.
Proved developed reserves at year-end 2018 increased by approximately 118% year-over-year to almost 34 MMBoe, reflecting the acquisitions Kimbell made during the year along with continued development by the operators of Kimbell's acreage.
Crude Oil and | Natural Gas | Natural Gas | Total (MBOE) | |||||
Net proved developed reserves at December 31, 2017 | 5,284 | 47,501 | 2,202 | 15,403 | ||||
Revisions of previous estimates | 761 | 7,229 | 1,005 | 2,971 | ||||
Purchases of minerals in place | 3,729 | 69,465 | 2,166 | 17,473 | ||||
Production | (591) | (7,874) | (310) | (2,213) | ||||
Net proved developed reserves at December 31, 2018 | 9,183 | 116,321 | 5,063 | 33,634 | ||||
Liquidity
At December 31, 2018, Kimbell's consolidated debt to consolidated Adjusted EBITDA was 1.2x (reflecting a full quarter of the Drop Down assets) based on Q4 2018 annualized consolidated Adjusted EBITDA.
At December 31, 2018, Kimbell had $87.3 million outstanding under its $200.0 million revolving credit facility. As of December 31, 2018, Kimbell was in compliance with all related financial covenants.
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, 2018, Kimbell had hedged daily oil and natural gas production of approximately 24% of its production. Please see the supplemental schedule at the end of this news release for hedging details.
2019 Guidance
Kimbell plans to issue 2019 guidance after the closing of the Phillips Acquisition, which we anticipate to occur on or around March 29, 2019.
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 2018 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 14, 2019 by dialing 201-612-7415 and using the conference ID 13685988#. A webcast of the call will also be available live and for later replay on Kimbell Royalty Partners' website at http://kimbellrp.investorroom.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.2 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells, with over 38,000 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 risks and uncertainties, including risks relating to the tax treatment of Kimbell's fourth quarter 2018 distribution, the expected timing of the closing of the Phillips Acquisition, Kimbell's business, prospects for growth and acquisitions and the securities markets generally. 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. These include risks that the anticipated benefits of the Phillips Acquisition are not realized, 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 Haymaker Acquisition, the Drop Down and the Phillips Acquisition (if completed); 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.
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, | ||
2018 | ||
Assets: | ||
Current assets | ||
Cash and cash equivalents | $ | 15,774 |
Oil, natural gas and NGL receivables | 18,809 | |
Commodity derivative assets | 2,981 | |
Other current assets | 50 | |
Total current assets | 37,614 | |
Property and equipment, net | 430 | |
Oil and natural gas properties | ||
Oil and natural gas properties (full cost method) | 818,595 | |
Less: accumulated depreciation, depletion and accretion | (107,780) | |
Total oil and natural gas properties | 710,815 | |
Commodity derivative assets | 1,247 | |
Loan origination costs, net | 3,179 | |
Total assets | $ | 753,285 |
Liabilities, mezzanine equity and unitholders' equity: | ||
Current liabilities | ||
Accounts payable | $ | 1,331 |
Other current liabilities | 2,469 | |
Total current liabilities | 3,800 | |
Long-term debt | 87,310 | |
Total liabilities | 91,110 | |
Commitments and contingencies | ||
Mezzanine equity: | ||
Series A preferred units | 69,449 | |
Unitholders' Equity: | ||
Common units | 293,993 | |
Class B units | 972 | |
Total unitholders' equity | 294,965 | |
Noncontrolling interest | 297,761 | |
Total equity | 592,726 | |
Total liabilities, mezzanine equity, and equity | $ | 753,285 |
Kimbell Royalty Partners, LP | |||||
Condensed Consolidated Statement of Operations | |||||
(Unaudited, in thousands, except per-unit data and unit count) | |||||
Three Months Ended | Three Months Ended | ||||
December 31, 2018 | December 31, 2017 | ||||
Revenue | |||||
Oil, natural gas and NGL revenues | $ | 22,972 | $ | 9,464 | |
Lease bonus and other income | 89 | 544 | |||
Gain (loss) on commodity derivative instruments | 7,190 | (319) | |||
Total revenues | 30,251 | 9,689 | |||
Costs and expenses | |||||
Production and ad valorem taxes | 1,368 | 850 | |||
Depreciation, depletion and accretion expenses | 9,718 | 4,390 | |||
Impairment of oil and natural gas properties | 12,558 | — | |||
Marketing and other deductions | 1,784 | 580 | |||
General and administrative expenses | 5,197 | 2,485 | |||
Total costs and expenses | 30,625 | 8,305 | |||
Operating income (loss) | (374) | 1,384 | |||
Other expense | |||||
Interest expense | 1,415 | 323 | |||
Net income (loss) before income taxes | (1,789) | 1,061 | |||
Benefit from income taxes | (1,952) | — | |||
Net income before distribution and accretion on | 163 | 1,061 | |||
Series A preferred units | |||||
Distribution and accretion on Series A preferred units | (3,470) | — | |||
Net income (loss) | (3,307) | 1,061 | |||
Net income (loss) attributable to noncontrolling interests | (1,715) | — | |||
Net income (loss) attributable to Kimbell Royalty Partners LP | (1,592) | 1,061 | |||
Distribution on Class B units | (18) | — | |||
Net income (loss) attributable to common units | $ | (1,610) | $ | 1,061 | |
Basic | $ | (0.10) | $ | 0.06 | |
Diluted | $ | (0.10) | $ | 0.06 | |
Weighted average number of common units outstanding | |||||
Basic | 16,898,563 | 16,342,228 | |||
Diluted | 16,898,563 | 16,509,799 | |||
Kimbell Royalty Partners, LP | ||
Condensed Consolidated Statement of Operations | ||
(Unaudited, in thousands, except per-unit data and unit count) | ||
Twelve Months Ended | ||
December 31, 2018 | ||
Revenue | ||
Oil, natural gas and NGL revenues | $ | 65,713 |
Lease bonus and other income | 1,213 | |
Gain (loss) on commodity derivative instruments | 3,332 | |
Total revenues | 70,258 | |
Costs and expenses | ||
Production and ad valorem taxes | 4,400 | |
Depreciation, depletion and accretion expenses | 25,213 | |
Impairment of oil and natural gas properties | 67,312 | |
Marketing and other deductions | 4,652 | |
General and administrative expenses | 16,847 | |
Total costs and expenses | 118,424 | |
Operating loss | (48,166) | |
Other expense | ||
Interest expense | 4,092 | |
Net loss before income taxes | (52,258) | |
Provision for income taxes | 25 | |
Net loss before distribution and accretion on | (52,283) | |
Series A preferred units | ||
Distribution and accretion on Series A preferred units | (6,310) | |
Net loss | (58,593) | |
Net loss attributable to noncontrolling interests | (1,856) | |
Net loss attributable to Kimbell Royalty Partners LP | (56,737) | |
Distribution on Class B units | (31) | |
Net loss attributable to common units | $ | (56,768) |
Basic | $ | (3.08) |
Diluted | $ | (3.08) |
Weighted average number of common units outstanding | ||
Basic | 18,442,234 | |
Diluted | 18,442,234 | |
Kimbell Royalty Partners, LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define 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, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | |||||
Supplemental Schedules | |||||
(Unaudited, in thousands) | |||||
Three Months Ended | Three Months Ended | ||||
December 31, 2018 | December 31, 2017 | ||||
Reconciliation of net cash provided by operating activities | |||||
to Adjusted EBITDA | |||||
Net cash provided by operating activities | $ | 14,611 | $ | 4,608 | |
Interest expense | 1,415 | 323 | |||
Current income tax benefit | (478) | — | |||
Impairment of oil and natural gas properties | (12,558) | — | |||
Amortization of loan origination costs | (258) | (16) | |||
Unit-based compensation | (1,027) | (229) | |||
Change in fair value of open commodity derivative instruments | 8,042 | (319) | |||
Changes in operating assets and liabilities: | |||||
Oil, natural gas and NGL revenues receivable | (1,740) | 1,193 | |||
Other receivables | (376) | (22) | |||
Accounts payable | 200 | (164) | |||
Other current liabilities | 1,513 | 400 | |||
Consolidated EBITDA | $ | 9,344 | $ | 5,774 | |
Add: | |||||
Impairment of oil and natural gas properties | 12,558 | — | |||
Unit-based compensation | 1,027 | 229 | |||
Change in fair value of open commodity derivative instruments | (8,042) | 319 | |||
Consolidated Adjusted EBITDA | $ | 14,887 | $ | 6,322 | |
Adjusted EBITDA attributable to non-controlling interest | (7,721) | — | |||
Adjusted EBITDA attributable to Kimbell Royalty Partners LP | $ | 7,166 | $ | 6,322 | |
Kimbell Royalty Partners, LP | ||
Supplemental Schedules | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
December 31, 2018 | ||
Net income before distribution and accretion on Series A preferred units | $ | 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 | |
Change in fair value of open commodity derivative instruments | (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 | |
Cash 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, in thousands) | ||
Three Months Ended | ||
December 31, 2017 | ||
Net income | $ | 1,061 |
Depreciation, depletion and accretion expenses | 4,390 | |
Interest expense | 323 | |
EBITDA | $ | 5,774 |
Unit-based compensation | 229 | |
Loss on commodity derivative instruments | 319 | |
Adjusted EBITDA | $ | 6,322 |
Adjustments to reconcile Adjusted EBITDA to cash available | ||
for distribution | ||
Cash interest expense | 179 | |
Capital expenditures | — | |
Cash available for distribution | $ | 6,143 |
Limited partner units outstanding(1) | 16,836,453 | |
Cash available for distribution per common unit outstanding | $ | 0.36 |
(1) As of fourth quarter 2017 distribution record date of February 7, 2018. |
Kimbell Royalty Partners, LP | ||||
Supplemental Schedules | ||||
(Unaudited) | ||||
Fixed Price Swaps as of December 31, 2018 | ||||
Weighted Average | ||||
Volumes | Fixed Price | |||
Oil | Nat Gas | Oil | Nat Gas | |
BBL | MMBTU | $/BBL | $/MMBTU | |
1Q 2019 | 55,260 | 951,570 | $ 61.47 | $ 2.74 |
2Q 2019 | 55,874 | 962,143 | $ 61.47 | $ 2.74 |
3Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
4Q 2019 | 56,488 | 972,716 | $ 61.47 | $ 2.74 |
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 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-fourth-quarter-2018-results-record-production-and-revenue-300808301.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Feb. 21, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced its participation in the upcoming World Oilman's Mineral & Royalty Conference in Houston, Texas on April 22-23, 2019.
For more information about the conference, visit www.mineralconference.com.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-world-oilmans-mineral--royalty-conference-300799375.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Feb. 7, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that it has agreed to acquire certain oil and gas royalty assets from EnCap Investments L.P. ("EnCap") for approximately $151.3 million (the "Acquisition") in a 100% equity transaction.
Transaction Highlights
"With this acquisition, we have now completed over $700 million in acquisitions in less than six months and have positioned ourselves as one of the leading consolidators within the U.S. royalty and minerals space. We are gratified that EnCap is willing to put their trust in us and our business model by taking 100% equity in the transaction. Like the Haymaker acquisition and the recent dropdown transaction, we believe this acquisition is an excellent fit with our existing portfolio of mineral and royalty assets. We expect not only immediate cash flow accretion in the near term, but also additional future development from an outstanding list of leading operators," said Bob Ravnaas, Chief Executive Officer of Kimbell's general partner.
"Furthermore, this acquisition kicks off what we believe will be another year of consolidation within the oil and gas mineral and royalty space in the U.S. After giving effect to this transaction, we have nearly quadrupled our production since our IPO and will have royalty interests in approximately 95,000 wells across the U.S. I want to once again thank our team and advisors for their hard work in completing these transactions."
"EnCap is excited about this transaction and our expanding relationship with Kimbell. We have known Bob Ravnaas for over two decades and think very highly of him, his management team and the portfolio of mineral interests they have acquired at Kimbell. Kimbell's track record of success and proven growth trajectory paired with its low PDP decline rate is compelling. We believe that Kimbell is the right strategic partner for the Philips assets and that the combination represents a best-in-class diversified mineral company, which is well positioned to continue to make accretive acquisitions within the large and highly fragmented U.S. mineral and royalty market. EnCap has elected to receive 100% equity in this transaction, demonstrating our commitment to partner with the Kimbell team as they continue to execute on their impressive growth strategy," said Marty Phillips, Managing Partner and Founder of EnCap.
Baker Botts L.L.P. acted as legal advisor to Kimbell Royalty Partners in connection with the Acquisition. RBC Richardson Barr acted as exclusive financial advisor and Vinson & Elkins LLP acted as legal advisor to the sellers in the Acquisition. The sellers in the Acquisition will be subject to a 120 day lockup after the closing, which is expected to occur in late March 2019. The closing of the Acquisition remains subject to the satisfaction of certain closing conditions, and there can be no assurance that it will be completed as planned or at all.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells, with over 38,000 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 anticipated benefits of the Acquisition and the expected timing of the closing of the Acquisition, involve risks and uncertainties, including risks that the anticipated benefits of the Acquisition are not realized; risks relating to Kimbell's integration of the Acquisition assets; risks relating to the possibility that the 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 prospects for growth generally. 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 Securities and Exchange Commission ("SEC"). These include risks that the anticipated benefits of Kimbell's election to change to a taxable entity are not realized, 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 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 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 the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from and to integrate acquired assets, including the assets acquired in the 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-151-3-million-mineral-and-royalty-acquisition-from-encap-investments-lp-in-an-all-equity-transaction-300791610.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 25, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.40 per common unit for the fourth quarter of 2018. The distribution will be payable on February 11, 2019 to common unitholders of record at the close of business on February 4, 2019.
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 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 risks and uncertainties, including risks relating to our 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 our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners, LP 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
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-fourth-quarter-2018-distribution-300784400.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 2, 2019 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced it will release its fourth quarter 2018 financial results on Thursday, March 7, 2019, before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through March 14 by dialing 201-612-7415 and using the conference ID 13685988#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-fourth-quarter-2018-earnings-release-and-conference-call-300771599.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Dec. 21, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced its participation in three upcoming investor conferences. Members of management will be participating in meetings at the following conferences:
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-participation-at-upcoming-2019-investor-conferences-300770003.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Dec. 20, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has closed the previously announced purchase of certain oil and gas royalty assets from certain affiliated sellers for 6.5 million newly issued units in Kimbell Royalty Operating, LLC valued at approximately $90.0 million (the "Drop Down"). Kimbell is entitled to revenues from the Drop Down assets for production on and after October 1, 2018. Revenues under generally accepted accounting principles in the United States will be recorded beginning on the closing date of December 20, 2018.
The Drop Down acquisition includes a diversified package of royalty interests with over 70% of production (6:1) from premier resource plays, including the Eagle Ford Shale, Permian Basin, Appalachian Basin and Bakken Formation. In addition, the Drop Down adds approximately 1,190 Boe/d of production (6:1) and adds approximately 16,700 net royalty acres, increasing Kimbell's total net royalty acre position by 15% to approximately 131,900 net royalty acres across the continental United States.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 12.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 86,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-closes-drop-down-acquisition-300769952.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Nov. 30, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, announced today that an updated investor presentation has been posted on the Investor Relations section of its website and is currently available in the Events and Presentations section at http://www.kimbellrp.investorroom.com.
Members of management will be participating in meetings at the Credit Suisse Minerals Conference on December 4, 2018 in New York City and the Wells Fargo Midstream and Utility Symposium on December 5-6, 2018 in New York City.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a limited partnership based in Fort Worth, Texas, and is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-posts-updated-investor-presentation-300757987.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Nov. 21, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced the purchase of certain oil and gas royalty assets from certain affiliated sellers for approximately $107.8 million (the "Drop Down").
Transaction Highlights
"We are very pleased to announce our first drop down transaction. We believe this large and diversified minerals package not only enhances our existing high-quality portfolio, but also adds significantly to Kimbell's future distributable cash flow and production," said Bob Ravnaas, President and Chief Executive Officer of Kimbell's general partner.
"The drop down assets are predominately located in four of the premier onshore U.S. resource plays, the Eagle Ford Shale, Permian Basin, Appalachian Basin and Bakken Formation. With the majority of the reserves classified as proved undeveloped and the recent active drilling on many of the properties, we are confident that the assets will prove to be a significant driver of growth for the company for years to come. The fact that our contributing parties were willing to accept 100% equity as the purchase price in this transaction demonstrates confidence in the company and allows the company to grow meaningfully without assuming additional debt."
"This acquisition caps off an extraordinary year for the company. We have announced and completed over $550 million in accretive acquisitions in 2018. In addition, since our IPO in February 2017 and after giving effect to the Drop Down, we have more than doubled our net royalty acreage footprint across the U.S. and more than tripled our daily production in less than two years. I want to thank our team and advisors for their hard work in completing these transactions."
The Drop Down was approved by the Conflicts Committee of the Board of Directors of Kimbell Royalty Partners' general partner (the "Conflicts Committee") and the Board of Directors of Kimbell Royalty Partners' general partner on November 20, 2018. Evercore Group L.L.C. acted as financial advisor to the Conflicts Committee in connection with the Drop Down. Potter Anderson & Corroon LLP acted as legal advisor to the Conflicts Committee. Baker Botts L.L.P. acted as legal advisor to Kimbell Royalty Partners in connection with the Drop Down. UBS Investment Bank acted as financial advisor and Mayer Brown LLP acted as legal advisor to the sellers in the Drop Down. The sellers in the Drop Down will be subject to a 120 day lockup after the closing, which is expected to occur on or around December 20, 2018. The closing of the Drop Down remains subject to completion of due diligence and the satisfaction of other closing conditions, and there can be no assurance that it will be completed as planned or at all.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a limited partnership based in Fort Worth, Texas, and is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 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 anticipated benefits of the Drop Down and the expected timing of the closing of the Drop Down, involve risks and uncertainties, including risks that the anticipated benefits of the Drop Down are not realized; risks relating to Kimbell's integration of the Drop Down assets; risks relating to the possibility that the Drop Down 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 prospects for growth generally. 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 Securities and Exchange Commission ("SEC"). These include risks that the anticipated benefits of Kimbell's election to change to a taxable entity are not realized, 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 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 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 the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from and to integrate acquired assets, including the assets acquired in the Drop Down; 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-107-8-million-drop-down-acquisition-300754096.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Nov. 15, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced its participation in two upcoming investor conferences. Members of management will be participating in meetings at the following conferences:
The company will post an updated investor presentation to the Investor Relations section of its website prior to the conferences at http://kimbellrp.investorroom.com/
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is a limited partnership based in Fort Worth, Texas, and is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-participation-at-upcoming-investor-conferences-300751708.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Oct. 26, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.45 per common unit for the third quarter of 2018. The distribution will be payable on November 12, 2018 to common unitholders of record at the close of business on November 5, 2018.
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas, and managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 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 risks and uncertainties, including risks relating to our 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 our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners, LP 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 Associates
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-third-quarter-2018-distribution-300738745.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Oct. 2, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty-eight states, today announced it will release its third quarter 2018 financial results on November 8, 2018, before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: | Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through November 15 by dialing 201-612-7415 and using the conference ID 13683436#. |
By Webcast: | Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas, and is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 wells in the Permian Basin. To learn more, visit www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-third-quarter-2018-earnings-release-and-conference-call-schedule-300723118.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Sept. 27, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced the pricing of its public offering of 3,000,000 common units representing limited partner interests at a public offering price of $19.00 per common unit. The total gross proceeds of the offering, before underwriters' discounts and estimated offering expenses, will be approximately $57 million. Kimbell has granted the underwriters a 30-day option to purchase up to 450,000 additional common units.
The offering is expected to close on October 1, 2018, subject to customary closing conditions. Kimbell intends to use the net proceeds from the offering, including any net proceeds from the exercise of the underwriters' option to purchase additional common units, to repay a portion of the outstanding borrowings under its revolving credit facility.
Credit Suisse Securities (USA) LLC and UBS Investment Bank are acting as lead book-running managers for the offering. Raymond James & Associates, Inc. and RBC Capital Markets, LLC are also acting as bookrunners for the offering. When available, a copy of the prospectus for the offering may be obtained from:
Credit Suisse Securities (USA) LLC Eleven Madison Avenue, Level 1B New York, NY 10010 Attn: Prospectus Department Telephone: (800) 221-1037
| UBS Securities LLC 1285 Avenue of the Americas New York, NY 10019 Attn: Prospectus Department Telephone: (888) 827-7275
|
Raymond James & Associates, Inc. Attn: Equity Syndicate 880 Carillon Parkway St. Petersburg, FL 33716 Telephone: (800) 248-8863
| RBC Capital Markets, LLC Attn: Equity Syndicate Three World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Telephone: (877) 822-4089
|
To obtain a copy of the prospectus free of charge, visit the Securities and Exchange Commission's ("SEC") website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
About Kimbell Royalty Partners
Kimbell is an oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells with over 38,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements, including statements related to the public offering and the use of proceeds therefrom and other statements that are not historical facts. These forward-looking statements involve risks and uncertainties. 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 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-prices-public-offering-of-common-units-300720251.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Sept. 26, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has commenced an underwritten public offering of 3,000,000 common units representing limited partner interests, subject to market and other conditions. Kimbell expects to grant the underwriters a 30-day option to purchase up to 450,000 additional common units.
Kimbell intends to use the net proceeds from the offering, including any net proceeds from the exercise of the underwriters' option to purchase additional common units, to repay a portion of the outstanding borrowings under its revolving credit facility.
Credit Suisse Securities (USA) LLC and UBS Investment Bank are acting as lead book-running managers for the offering. Raymond James & Associates, Inc. and RBC Capital Markets, LLC are also acting as bookrunners for the offering. When available, a copy of the preliminary prospectus for the offering may be obtained from:
Credit Suisse Securities (USA) LLC Eleven Madison Avenue, Level 1B New York, NY 10010 Attn: Prospectus Department Telephone: (800) 221-1037 | UBS Securities LLC 1285 Avenue of the Americas New York, NY 10019 Attn: Prospectus Department Telephone: (888) 827-7275 |
Raymond James & Associates, Inc. Attn: Equity Syndicate 880 Carillon Parkway St. Petersburg, FL 33716 prospectus@raymondjames.com Telephone: (800) 248-8863 | RBC Capital Markets, LLC Attn: Equity Syndicate Three World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Telephone: (877) 822-4089 |
To obtain a copy of the preliminary prospectus free of charge, visit the Securities and Exchange Commission's ("SEC") website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
The common units will be issued and sold pursuant to an effective shelf registration statement on Form S-3 previously filed with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common units, nor shall there be any sale of the common units in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This offering may only be made by means of a prospectus supplement and related base prospectus.
About Kimbell Royalty Partners
Kimbell is an oil and gas mineral and royalty company based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells with over 38,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements, including statements related to the proposed public offering and the use of proceeds therefrom and other statements that are not historical facts. These forward-looking statements involve risks and uncertainties. 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 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-lp-announces-public-offering-of-common-units-300719388.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Sept. 24, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty-eight states, announced that its federal income tax status change from that of a pass-through partnership to that of a taxable entity via a "check-the-box" election became effective today, September 24, 2018.
Holders of Kimbell's common units will receive a final Schedule K-1 for the period from January 1, 2018 through the day prior to the effective date of the tax election. Beginning September 24, 2018, holders will receive a Form 1099-DIV. After the effectiveness of the tax status election and the completion of related transactions, Kimbell's minerals and royalty business will continue to be conducted through Kimbell Royalty Operating, LLC, its wholly owned subsidiary, which will be taxed as a partnership for federal and state income tax purposes.
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas, and is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 wells in the Permian Basin. To learn more, visit www.kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating to Kimbell's change to a taxable entity. 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 Securities and Exchange Commission ("SEC"). These include risks that the anticipated benefits of the election to change to a taxable entity are not realized 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-effectiveness-of-tax-status-change-from-pass-through-partnership-to-a-taxable-entity-300717331.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Aug. 9, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced financial and operating results for the second quarter ended June 30, 2018.
Second Quarter Highlights
Recent Developments
"This was a very exciting and transformative quarter for our company," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner.
"In mid-July, we closed the Haymaker Acquisition. This was a transformational acquisition for our company, and we are already pleased with the recent performance of the related acreage. Following the Haymaker Acquisition, we expect our distributable cash flow per unit will continue to increase, and as of August 1, 2018, we had 72 rigs actively working on our combined properties.
"Our unitholders benefitted from our continued strong financial performance through an increase in our second quarter distribution, which is our fifth consecutive increase since our initial public offering in February 2017. During the second quarter, crude oil pricing increased, although a decline in pricing for NGLs and natural gas resulted in flat overall pricing for the quarter. Average daily production was also essentially flat versus the first quarter but increased 18% compared to the second quarter a year ago. We expect to begin benefitting from production related to the assets acquired in the Haymaker Acquisition in the third quarter," Mr. Ravnaas said.
Second Quarter 2018 Distribution
On July 27, 2018, the board of directors of Kimbell Royalty GP, LLC, the general partner of Kimbell Royalty Partners, declared a cash distribution of $0.43 per common unit for the second quarter of 2018. The distribution will be paid on August 13, 2018 to common unitholders of record at the close of business on August 6, 2018. This represented a 2% increase from the prior quarter's distribution and a 43% increase from the second quarter last year.
The number of common units outstanding as of the record date for the second quarter distribution included 10 million common units issued as partial consideration in the Haymaker Acquisition. Under the terms of the definitive agreements for the Haymaker Acquisition, Kimbell is entitled to net revenues for production from the acquired properties on and after the effective date of April 1, 2018. Kimbell paid a portion of these net revenues (approximately $4.3 million) in the second quarter 2018 distribution. Net revenues for production from the acquired properties will be recorded on Kimbell's consolidated statement of operations for periods on or after July 12, 2018, the closing date of the transaction.
Financial Highlights
Total revenue including the impact of a $0.5 million loss on our commodity derivative instruments was roughly flat from the prior quarter, at $10.7 million, and up from $7.8 million from the second quarter last year. Second quarter net income was $1.4 million, or $0.08 per common unit, compared to a net loss of $52.8 million in the prior quarter and net income of $252,000 in the second quarter last year.
Adjusted EBITDA for the quarter totaled $7.7 million, versus $7.6 million in the prior quarter and $4.7 million in the second quarter last year. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release). Average realized price per barrel (Bbl) for oil was $63.45, natural gas per thousand cubic feet (Mcf) was $2.59, and natural gas liquids (NGLs) per Bbl was $25.03.
Production
Second quarter average daily production was essentially flat versus the prior quarter, with 3,633 barrels of oil equivalent (Boe) per day, for total production of 330,621 Boe. Revenues were derived 73% from liquids (61% from oil and 12% from NGLs), 23% from natural gas and 4% from lease bonuses. Production was composed of approximately 50% liquids (33% oil and 17% NGLs) and 50% natural gas on a 6:1 basis.
Acquisitions
On July 12, 2018, Kimbell closed the Haymaker Acquisition for $210 million in cash and 10 million common units, resulting in a total valuation of approximately $445 million based on a closing price of $23.54 per unit for Kimbell's common units as of July 12, 2018. Kimbell funded the cash portion of the purchase price with net proceeds from a private placement of 7.0% Series A Cumulative Convertible Preferred Units to certain affiliates of Apollo Capital Management, L.P. and with borrowings under its upsized $200 million revolving credit facility, each of which closed simultaneously with the Haymaker Acquisition.
Liquidity
At June 30, 2018, Kimbell had $43 million outstanding under its prior $50 million revolving credit facility (with an accordion feature permitting aggregate commitments to be increased up to $100 million). As of June 30, 2018, Kimbell was in compliance with all related financial covenants, and its total debt to Adjusted EBITDA ratio was 1.4x.
As of August 1, 2018 and following the closing of the Haymaker Acquisition, Kimbell had $148 million outstanding under its upsized $200 million revolving credit facility.
Hedging
Kimbell hedges its daily production based on the amount of debt and/or preferred equity as a percent of its enterprise value. Prior to the Haymaker Acquisition, this amount constituted approximately 10% of daily oil and natural gas production. Following the closing of the Haymaker Acquisition, Kimbell hedged daily oil and natural gas production of approximately 30% of its post-acquisition production. Please see the supplemental schedule at the end of this news release for hedging details.
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 second quarter 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 August 16 by calling (201) 612-7415 and using pass code 13681020#. A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas, and is managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 wells in the Permian Basin. To learn more, visit www.kimbellrp.com.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating Kimbell Royalty Partners' plans to change to a taxable entity, business, prospects for growth and acquisitions and the securities markets generally. Except as required by law, Kimbell Royalty Partners 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. These include risks that the anticipated benefits of the election to change to a taxable entity are not realized and that the election to change to a taxable entity does not occur when expected or at all, 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 Haymaker 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
Kimbell Royalty Partners, LP | ||
Consolidated Balance Sheet | ||
(Unaudited, in thousands) | ||
June 30, | ||
2018 | ||
Assets: |
||
Current assets |
||
Cash and cash equivalents |
$ |
8,335 |
Oil, natural gas and NGL receivables |
6,598 | |
Other current assets |
227 | |
Total current assets |
15,160 | |
Property and equipment, net |
108 | |
Oil and natural gas properties |
||
Oil and natural gas properties (full cost method) |
287,050 | |
Less: accumulated depreciation, depletion and accretion |
(77,946) | |
Total oil and natural gas properties |
209,104 | |
Deposits on oil and natural gas properties |
23,533 | |
Other assets |
1,190 | |
Loan origination costs, net |
224 | |
Total assets |
$ |
249,319 |
Liabilities and partners' capital: |
||
Current liabilities |
||
Accounts payable |
$ |
5,239 |
Other current liabilities |
1,227 | |
Commodity derivative liabilities |
401 | |
Total current liabilities |
6,867 | |
Long-term debt |
42,973 | |
Commodity derivative liabilities |
600 | |
Total liabilities |
50,440 | |
Commitments and contingencies |
||
Partners' capital |
198,879 | |
Total liabilities and partners' capital |
$ |
249,319 |
Kimbell Royalty Partners, LP | |||||
Consolidated Statement of Operations | |||||
(Unaudited, in thousands, except per-unit data and unit count) | |||||
Three Months Ended |
Three Months Ended | ||||
June 30, 2018 |
June 30, 2017 | ||||
Revenue |
|||||
Oil, natural gas and NGL revenues |
$ |
11,246 |
$ |
7,752 | |
Loss on commodity derivative instruments |
(538) |
- | |||
Total revenues |
10,708 |
7,752 | |||
Costs and expenses |
|||||
Production and ad valorem taxes |
805 |
618 | |||
Depreciation, depletion and accretion expenses |
3,432 |
4,132 | |||
Marketing and other deductions |
609 |
386 | |||
General and administrative expenses |
4,000 |
2,181 | |||
Total costs and expenses |
8,846 |
7,317 | |||
Operating income |
1,862 |
435 | |||
Interest expense |
484 |
183 | |||
Net income |
$ |
1,378 |
$ |
252 | |
Net income attributable to common units: |
|||||
Basic |
$ |
0.08 |
$ |
0.02 | |
Diluted |
$ |
0.08 |
$ |
0.02 | |
Weighted average number of common units outstanding |
|||||
Basic |
16,377,476 |
16,332,708 | |||
Diluted |
16,809,149 |
16,422,446 |
Kimbell Royalty Partners, LP
Supplemental Schedules
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define Adjusted EBITDA as net income (loss) before interest expense, net of capitalized interest, non-cash unit-based compensation, transaction costs, unrealized gains and losses on commodity derivative instruments, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by generally accepted accounting principles in the United States ("GAAP"). We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | |||||
Supplemental Schedule | |||||
(Unaudited, in thousands, except per unit data and unit count) | |||||
Three Months Ended |
Three Months Ended | ||||
June 30, 2017 |
June 30, 2017 | ||||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA |
|||||
Net cash provided by operating activities |
$ |
6,895 |
$ |
5,827 | |
Interest expense |
484 |
183 | |||
Amortization of loan origination costs |
(16) |
(15) | |||
Unit-based compensation |
(723) |
(136) | |||
Unrealized loss on commodity derivative instruments |
(469) |
— | |||
Changes in operating assets and liabilities: |
|||||
Oil, natural gas and NGL revenues receivable |
38 |
(1,745) | |||
Other receivables |
(145) |
(82) | |||
Accounts payable |
(826) |
284 | |||
Other current liabilities |
56 |
251 | |||
EBITDA |
$ |
5,294 |
$ |
4,567 | |
Add: |
|||||
Transaction costs |
1,189 |
— | |||
Unit-based compensation |
723 |
136 | |||
Loss on commodity derivative instruments |
469 |
— | |||
Adjusted EBITDA |
$ |
7,675 |
$ |
4,703 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
June 30, 2018 | ||
Net income |
$ |
1,378 |
Depreciation, depletion and accretion expenses |
3,432 | |
Interest expense |
484 | |
EBITDA |
$ |
5,294 |
Transaction costs |
1,189 | |
Unit-based compensation |
723 | |
Unrealized loss on commodity derivative instruments |
469 | |
Adjusted EBITDA |
$ |
7,675 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution |
||
Cash interest expense |
(502) | |
Cash available for distribution |
$ |
7,173 |
Limited partner units outstanding on June 30, 2018 |
16,839,462 | |
Cash available for distribution per common unit outstanding |
$ |
0.43 |
Limited partner units outstanding on August 6, 2018 Record Date(1) |
26,839,462 | |
Second Quarter 2018 Distribution Declared(2) |
$ |
0.43 |
(1) |
Includes 10 million units issued as partial consideration in the Haymaker Acquisition. |
(2) |
Includes allocated post-April 1, 2018 effective date cash receipts from the acquired Haymaker assets. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(Unaudited, in thousands) | ||
Three Months Ended | ||
March 31, 2018 | ||
Net loss |
$ |
(52,825) |
Depreciation, depletion and accretion expenses |
4,456 | |
Interest expense |
350 | |
EBITDA |
$ |
(48,019) |
Impairment of oil and natural gas properties |
54,753 | |
Unit-based compensation |
669 | |
Unrealized loss on commodity derivative instruments |
212 | |
Adjusted EBITDA |
$ |
7,615 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution |
||
Cash interest expense |
475 | |
Cash available for distribution |
$ |
7,140 |
Limited partner units outstanding(1) |
16,834,984 | |
Cash available for distribution per common unit outstanding |
$ |
0.42 |
First Quarter 2018 Distribution Declared |
$ |
0.42 |
(1) |
As of first quarter 2018 distribution record date of May 7, 2018. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(Unaudited, in thousands) | ||
For the three months | ||
June 30, 2017 | ||
Net income |
$ |
252 |
Depreciation, depletion and accretion expenses |
4,132 | |
Interest expense |
183 | |
Income taxes |
— | |
EBITDA |
$ |
4,567 |
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
136 | |
Adjusted EBITDA |
$ |
4,703 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution |
||
Cash interest expense |
106 | |
Capital expenditures |
— | |
Cash available for distribution |
$ |
4,597 |
Limited partner units outstanding(1) |
16,496,032 | |
Cash available for distribution per common unit outstanding |
$ |
0.28 |
Second Quarter 2017 Distribution Declared (2) |
$ |
0.30 |
(1) |
As of the record date of August 7, 2017. |
(2) |
Based on Kimbell's working capital position, a $0.30 per common unit distribution was declared, which is in excess of the cash available for distribution of $0.28 per common unit. |
Kimbell Royalty Partners, LP | ||||
Supplemental Schedule | ||||
(Unaudited) | ||||
Fixed Price Swaps as of June 30, 2018 | ||||
Volumes |
Average Price | |||
Oil |
Nat Gas |
Oil |
Nat Gas | |
BBL |
MMBTU |
$/BBL |
$/MMBTU | |
3Q 2018 |
12,626 |
88,872 |
$ 56.00 |
$ 2.71 |
4Q 2018 |
12,626 |
88,872 |
$ 56.00 |
$ 2.71 |
1Q 2019 |
10,620 |
86,940 |
$ 53.07 |
$ 2.76 |
2Q 2019 |
10,738 |
87,906 |
$ 53.07 |
$ 2.76 |
3Q 2019 |
10,856 |
88,872 |
$ 53.07 |
$ 2.76 |
4Q 2019 |
10,856 |
88,872 |
$ 53.07 |
$ 2.76 |
1Q 2020 |
11,011 |
96,915 |
$ 56.03 |
$ 2.94 |
2Q 2020 |
12,194 |
109,473 |
$ 61.43 |
$ 2.52 |
Fixed Price Swaps after Haymaker Close on July 12, 2018 | ||||
Volumes |
Average Price | |||
Oil |
Nat Gas |
Oil |
Nat Gas | |
BBL |
MMBTU |
$/BBL |
$/MMBTU | |
3Q 2018 |
52,810 |
867,055 |
$ 65.59 |
$ 2.77 |
4Q 2018 |
58,258 |
972,716 |
$ 64.03 |
$ 2.83 |
1Q 2019 |
55,260 |
951,570 |
$ 61.47 |
$ 2.74 |
2Q 2019 |
55,874 |
962,143 |
$ 61.47 |
$ 2.74 |
3Q 2019 |
56,488 |
972,716 |
$ 61.47 |
$ 2.74 |
4Q 2019 |
56,488 |
972,716 |
$ 61.47 |
$ 2.74 |
1Q 2020 |
55,874 |
962,143 |
$ 60.22 |
$ 2.89 |
2Q 2020 |
55,874 |
962,143 |
$ 60.68 |
$ 2.51 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-record-second-quarter-2018-results-300694491.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 27, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.43 per common unit for the second quarter of 2018. The distribution will be payable on August 13, 2018 to common unitholders of record at the close of business on August 6, 2018.
Kimbell Royalty Partners, LP
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas, and managed by its general partner, Kimbell Royalty GP, LLC. Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells, with over 38,000 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 risks and uncertainties, including risks relating to our 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 our filings with the Securities and Exchange Commission (SEC), available at the SEC's website at www.sec.gov. Except as required by law, Kimbell Royalty Partners, LP 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 Associates
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-second-quarter-2018-distribution-300687869.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 13, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell") today announced that it has closed the previously announced acquisition (the "Haymaker Closing") of mineral and royalty interests held by Houston-based Haymaker Minerals & Royalties, LLC and Haymaker Resources, LP (collectively, "Haymaker") for $210 million in cash and 10 million common units, resulting in a total valuation of approximately $445 million based on a closing price of $23.54 per unit for Kimbell's common units as of July 12, 2018.
As a result of the Haymaker Closing, Haymaker's private equity sponsors, KKR & Co. L.P. ("KKR") and Kayne Anderson Capital Advisors, L.P. ("Kayne"), along with Haymaker management, now collectively own approximately 37% of the outstanding common units of Kimbell.
Simultaneous with the Haymaker Closing, Kimbell closed the previously announced private placement of 7.0% Series A Cumulative Convertible Preferred Units to certain affiliates of Apollo Capital Management, L.P. (collectively, "Apollo") for gross proceeds of $110 million, as well as the previously announced fully underwritten $200 million revolving credit facility.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC. As a result of the Haymaker Closing, Kimbell owns mineral and royalty interests in approximately 11.1 million gross acres in 28 states and in nearly every major onshore basin in the continental United States, including ownership in more than 84,000 gross producing wells with over 38,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Advisors
Credit Suisse Securities (USA) LLC acted as exclusive financial advisor and sole placement agent on the Series A Cumulative Convertible Preferred Units to Kimbell and Baker Botts L.L.P. acted as legal counsel to Kimbell. RBC Richardson Barr acted as exclusive financial advisor to Haymaker, Kirkland & Ellis LLP acted as legal counsel to KKR and Haymaker and DLA Piper LLP acted as legal counsel to Kayne and Haymaker. Kirkland & Ellis LLP also represented Apollo in connection with the Series A Cumulative Convertible Preferred Units offering.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 29, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a leading owner of oil and gas mineral and royalty interests across 20 states, today announced that it has agreed to acquire the mineral and royalty interests held by Houston-based Haymaker Minerals & Royalties, LLC and Haymaker Resources, LP (collectively, "Haymaker") in a transaction valued at approximately $404 million. The purchase price for the acquisition is comprised of $210 million in cash and 10 million common units of Kimbell, valued at approximately $194 million.1 Kimbell will raise the cash portion of the purchase price through a private placement of 7.00% Series A Cumulative Convertible Preferred Units ("Series A Preferred Units") to an affiliate of Apollo Global Management, LLC ("Apollo") for gross proceeds of $110 million and through borrowings of $1142 million under a new $200 million revolving credit facility. The Boards of Kimbell and Haymaker have unanimously approved the acquisition, which is expected to close in the third quarter of 2018, subject to customary closing conditions. The effective date of the acquisition is April 1, 2018.
Following the closing of the acquisition, Haymaker's private equity sponsors, KKR & Co. L.P. ("KKR") and Kayne Anderson Capital Advisors, L.P. ("Kayne"), along with Haymaker management, will collectively own approximately 37% of the then outstanding common units of Kimbell.
Bob Ravnaas, Chairman and CEO of Kimbell, said, "This is a transformative acquisition for our company which we expect to deliver significant value and benefits through both increased scale and significant operating leverage that will drive improved profitability. Through this combination of highly complementary minerals portfolios, Kimbell is uniquely positioned to be a major participant in the best-performing, highest-growth oil and gas basins in the Lower 48. We expect the acquisition to be immediately accretive to distributable cash flow per unit and look forward to continued successes in this new and exciting chapter for Kimbell."
Karl Brensike, CEO of Haymaker, said, "We are extremely proud of the Haymaker team for assembling this world-class portfolio. Diversified minerals and royalties are just starting to get the recognition they deserve as a lower risk strategy to capitalize on the tremendous advancements being made in the U.S. oil and natural gas industry. We believe this acquisition will kick off a new phase of consolidation across the sector, as private equity looks to divest their mineral interests to longer term holders. Kimbell's diversified asset base and access to capital through their proposed tax structure will position them to continue to make accretive acquisitions over the coming years."
Acquisition Highlights3
Creating a Leading Energy Yield Company
Following the closing, Kimbell will have an 11.1 million gross acre position with a total of 73 active rigs on its properties, which represents 7% of total active rigs in the U.S. In addition, 95% of all rigs in the Lower 48 are located in counties where Kimbell will hold mineral interest positions. The acquisition further solidifies Kimbell's position in the Permian by adding mineral interests in the Midland Basin and further bolstering its Mid-Continent position, which includes the SCOOP / STACK. Going forward, Kimbell will remain a liquids-focused company with oil and NGLs accounting for approximately 67% of estimated pro forma 1Q 2018 production.
Estimated pro forma net debt / EBITDA will be below 2.0x5 at the closing of the acquisition, with a prudent hedging program in place that will target between 30% and 40% of production on a rolling two-year basis to protect cash flows.
Kimbell's management team, led by Kimbell CEO Bob Ravnaas, will operate the combined company following the closing.
Series A Cumulative Convertible Preferred Units
Kimbell signed a purchase agreement with Apollo for $110 million of the Series A Preferred Units. The private placement of the Series A Preferred Units will close at the same time as the closing of the acquisition.
Summary terms of the Series A Preferred Units include:
New Revolving Credit Facility
In conjunction with the closing of the acquisition, Kimbell has received commitments for a fully-underwritten $200 million revolving credit facility with Frost Bank, Wells Fargo Bank and Credit Suisse AG. The borrowing base of Kimbell's current revolving credit facility is $100 million which will increase to $200 million upon closing of the acquisition. At the closing, the Company will have approximately $64 million of availability under its new revolving credit facility, providing for significant liquidity.
Proposed Election to Change Tax Status
Kimbell believes that the conversion to a taxable entity will enable it to target a significantly larger investor base both domestic and international, increase its liquidity and support its continued growth and consolidation strategy. KKR and Kayne, together with Haymaker management, as well as Apollo have agreed to vote in favor of the Company's proposed election to change to a taxable entity, with the precise structure to be determined by the Board of Directors of Kimbell. Upon consummation of the acquisition and the Series A Preferred Units offering, KKR, Kayne, Haymaker management and Apollo, together with outstanding common units that are controlled by Kimbell's management and Board of Directors, will constitute the requisite majority of unitholders necessary to approve the tax election. The Company will file with the Securities and Exchange Commission ("SEC") an information statement regarding the approval of the tax election and distribute that information statement to its other unitholders.
Advisors
Credit Suisse Securities (USA) LLC acted as exclusive financial advisor and sole placement agent on the Series A Preferred Units to Kimbell and Baker Botts L.L.P. acted as legal counsel to Kimbell. UBS Investment Bank acted as exclusive capital markets advisor to Kimbell in connection with the election to change to a taxable entity. RBC Richardson Barr acted as exclusive financial advisor to Haymaker, Kirkland & Ellis LLP acted as legal counsel to KKR and Haymaker and DLA Piper LLP acted as legal counsel to Kayne and Haymaker. Kirkland & Ellis LLP also represented Apollo in connection with the Series A Preferred Units offering.
Investor and Analyst Conference Call
Kimbell will host a conference call and webcast today at 8:30 a.m. Eastern Time (7:30 a.m. Central Time) to discuss this transaction. 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 webcast of the call will also be available live and for later replay on Kimbell's website at http://www.kimbellrp.com under Events and Presentations. The company also has an investor presentation on their website with additional information about the transaction.
About Kimbell Royalty Partners
Kimbell (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 30,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
About Haymaker Minerals & Royalties
Founded in 2013, Haymaker has invested capital on behalf of Kayne Anderson and KKR to acquire over 5 million gross mineral acres through over 700 individual transactions. Using sophisticated practices from the software, finance, and upstream E&P industries, Haymaker was able to assemble a diversified portfolio of mineral and royalty interests in over 35,000 producing wells across 26 states and over 500 counties. To learn more, visit www.haymakermineralsandroyalties.com
About Kayne Anderson
Kayne Anderson Capital Advisors, L.P., founded in 1984, is a leading alternative investment management firm focused on niche investing in upstream oil and gas companies, energy and infrastructure, specialized real estate, growth equity and both private credit and diversified liquid credit. Kayne Anderson's investment philosophy is to pursue niches, with an emphasis on cash flow, where our knowledge and sourcing advantages enable us to deliver above average, risk-adjusted investment returns. Kayne manages over $26 billion in assets (as of 4/30/2018) for institutional investors, family offices, high net worth and retail clients and employs over 300 professionals in eight offices across the U.S. Through Kayne Anderson Energy Funds ("KAEF"), the firm has raised $7.0 billion of committed capital dedicated to energy private equity investments in primarily upstream and midstream oil and gas companies. Currently, KAEF has over 20 active portfolio companies focused on upstream and midstream oil and gas assets across North America. For more information, please visit www.kaynecapital.com.
About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including certain plans, expectations, goals and statements about the benefits of the proposed acquisition and election to change to a taxable entity, Kimbell's plans, objectives, expectations and intentions, the expected timing of completion of the acquisition, and other statements that are not historical facts. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. 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. These include 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 that the anticipated benefits of the election to change to a taxable entity are not realized; risks related to Kimbell's acquisition and integration of the acquired businesses and assets; the possibility that the proposed 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 risk that the financing required to fund the acquisition is not obtained; uncertainties as to the timing of the acquisition; the possibility that the anticipated benefits of the acquisition are not realized when expected or at all; 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 the absence or delay in receipt of government approvals or third-party consents; 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
1 Based on closing unit price of $19.40 on May 25, 2018.
2 Includes revolving credit facility draw related to estimated fees and expenses of the acquisition.
3 For additional information regarding the assumptions used with respect to the acquisition highlights, see the investor presentation available on Kimbell's website.
4 Kimbell defines free cash flow as cash flow from operating activities less capital expenditures divided by market capitalization as of May 25, 2018.
5 As of March 31, 2018 and pro forma for the Delaware Basin asset sale.
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 15, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, announced today that the partnership's senior management will participate in the 2nd Annual Stephens Energy Executive Summit in Little Rock, Arkansas on Wednesday, May 16. An updated investor presentation is accessible in the Investor Relations section of the partnership's website at www.kimbellrp.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 30,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-to-participate-in-the-stephens-energy-executive-summit-300648279.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 10, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced financial and operating results for the first quarter ended March 31, 2018.
First Quarter Highlights
"We delivered another record quarter across the board in Q1," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner.
"On a top-line basis, we benefitted from a significant improvement in oil, gas and NGLs pricing that could drive additional development activity across a portion of our royalty acreage in the coming quarters. A record 25 drilling rigs are currently drilling wells on our properties, with approximately 60% of those rigs at work in the Permian Basin in West Texas. Our average daily production increased by 4% versus Q4 even though we did not complete any additional acquisitions in the first quarter.
"Our unitholders benefitted from our continued strong financial performance through a 17% sequential increase in our first quarter distribution, or 6 cents per common unit.
"On May 4th, we executed a purchase and sale agreement to sell a small portion of our Delaware Basin acreage for $9 million. We believe that this transaction proves the significant intrinsic value of our West Texas acreage and represents less than 0.06% of our total net royalty acres. We will continue to evaluate incoming offers for our acreage and transact opportunistically to enhance unitholder value.
"We are continuing to work toward a drop-down of oil and gas assets from our sponsors that is targeted for later this year. Since our February 2017 IPO, we have completed approximately $30 million of accretive acquisitions, and our goal is to continue to grow production, reserves and distributable cash flow both through a potential dropdown and through additional acquisition opportunities that we are continuously evaluating," Mr. Ravnaas said.
First Quarter 2018 Distribution
On April 27, 2018, the board of directors of Kimbell Royalty GP, LLC, the general partner of Kimbell Royalty Partners, declared a cash distribution of $0.42 per common unit for the first quarter of 2018. The distribution will be paid on May 14, 2018 to unitholders of record at the close of business on May 7, 2018. This represented a 17% increase from the prior quarter's distribution.
Financial Highlights
Total revenue including the impact of an approximate $285,000 loss on our commodity derivative instruments was $10.9 million. First quarter net loss was $52.8 million, or a loss of $3.23 per common unit, which was the result of a $54.8 million full-cost ceiling test impairment.
First quarter results benefitted primarily from a 12% increase in realized average commodity prices, combined with an increase of 4% in average daily production.
Adjusted EBITDA for the quarter totaled $7.6 million. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release). Average realized price per barrel (Bbl) for oil was $60.97, natural gas per thousand cubic feet (Mcf) was $2.69 and natural gas liquids per Bbl was $26.69.
Production
First quarter average daily production increased by 4% from the prior quarter to 3,650 Boe per day, for total production of 328,530 Boe. The increase was due to higher natural gas output, higher NGLs production from the Permian Basin and Eagle Ford Shale, increased oil production from 14 new wells that came on line in Weld County, Colorado during the first quarter, and from the full impact of acquisitions completed in the fourth quarter of 2017.
First quarter revenues were derived 60% from oil, 24% from natural gas, 13% from natural gas liquids sales and 3% from other sales. Production was composed of approximately 33% oil, 50% natural gas and 17% natural gas liquids.
Hedging Program
At March 31, 2018, fixed price swaps for the remainder of 2018 consisted of 32,450 Bbl of oil (fixed rate at $56.00 per Bbl) and 265,650 MMBtu of natural gas (fixed rate at $2.71 per MMBtu). These derivative instruments cover approximately 10% of our current oil and natural gas production.
Fixed price swaps for 2019 consisted of 43,070 Bbl of oil (fixed rate at $53.07 per Bbl) and 352,590 MMBtu of natural gas (fixed rate at $2.76 per MMBtu).
On March 29, 2018, we entered into additional fixed price swaps for the first quarter of 2020 consisting of 11,011 Bbl of oil (fixed rate at $56.03 per Bbl) and 96,915 MMBtu of natural gas (fixed rate at $2.94 per MMBtu).
Acquisitions and Divestitures
On May 4, 2018, the partnership executed a purchase and sale agreement to sell a small portion of its Delaware Basin acreage for $9 million. This sale represents approximately 24 Boe per day of production (less than 0.7% of total current production) and 41 net royalty acres (less than 0.06% of total net royalty acres). The transaction is expected to close in the second quarter of 2018. This sale is part of the partnership's strategy to continually optimize its portfolio of royalty assets to create maximum value for unitholders.
Liquidity
At March 31, 2018, Kimbell had $30.8 million outstanding under its $50 million revolving credit facility and was in compliance with all related financial covenants. Based on the most recent redetermination under the partnership's revolving credit facility, the borrowing base is $100 million. We reduced our debt to adjusted EBITDA ratio from 1.2x at year-end 2017 to 1.0x at the end of the first quarter of 2018.
Full-Cost Ceiling Limitation Impairment
The partnership recognized a charge of $54.8 million in the first quarter of 2018 related to a full-cost ceiling limitation impairment. This previously disclosed impairment is a one-time, non-cash charge that is not expected to impact the cash flow available for distribution generated by the partnership, its liquidity or ability to make acquisitions in the future.
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 first quarter 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 May 17 by calling (201) 612-7415 and using pass code 13677553#. A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 30,000 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 risks and uncertainties, including risks relating Kimbell Royalty Partners' business, prospects for growth, acquisitions, drop downs and the securities markets generally. Except as required by law, Kimbell Royalty Partners 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 Securities and Exchange Commission ("SEC"). These include 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 disclosed above; 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 agreements 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 acquired assets; 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
Kimbell Royalty Partners, LP | |||
Consolidated Balance Sheet | |||
(Unaudited, in thousands) | |||
March 31, | |||
2018 | |||
Assets: |
|||
Current assets |
|||
Cash and cash equivalents |
$ |
6,837 | |
Oil, natural gas and NGL receivables |
6,560 | ||
Other current assets |
372 | ||
Total current assets |
13,769 | ||
Property and equipment, net |
129 | ||
Oil and natural gas properties |
|||
Oil and natural gas properties (full cost method) |
297,624 | ||
Less: accumulated depreciation, depletion and accretion |
(74,560) | ||
Total oil and natural gas properties |
223,064 | ||
Loan origination costs, net |
240 | ||
Total assets |
$ |
237,202 | |
Liabilities and partners' capital: |
|||
Current liabilities |
|||
Accounts payable |
$ |
695 | |
Other current liabilities |
1,283 | ||
Commodity derivative liabilities |
290 | ||
Total current liabilities |
2,268 | ||
Long-term debt |
30,844 | ||
Commodity derivative liabilities |
241 | ||
Total liabilities |
33,353 | ||
Commitments and contingencies |
|||
Partners' capital |
203,849 | ||
Total liabilities and partners' capital |
$ |
237,202 |
Kimbell Royalty Partners, LP | |||
Consolidated Statement of Operations | |||
(Unaudited, in thousands, except per-unit data and unit count) | |||
Three Months Ended | |||
March 31, 2018 | |||
Revenue |
|||
Oil, natural gas and NGL revenues |
$ |
11,176 | |
Loss on commodity derivative instruments |
(285) | ||
Total revenues |
10,891 | ||
Costs and expenses |
|||
Production and ad valorem taxes |
816 | ||
Depreciation, depletion and accretion expenses |
4,456 | ||
Impairment of oil and natural gas properties |
54,753 | ||
Marketing and other deductions |
570 | ||
General and administrative expenses |
2,771 | ||
Total costs and expenses |
63,366 | ||
Operating loss |
(52,475) | ||
Interest expense |
350 | ||
Net loss |
$ |
(52,825) | |
Net loss attributable to common units: |
|||
Basic |
$ |
(3.23) | |
Diluted |
$ |
(3.23) | |
Weighted average number of common units outstanding |
|||
Basic |
16,345,117 | ||
Diluted |
16,345,117 | ||
Kimbell Royalty Partners, LP
Supplemental Schedule
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define 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, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by generally accepted accounting principles in the United States ("GAAP"). We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | |||
Supplemental Schedule | |||
(Unaudited, in thousands, except per unit data and unit count) | |||
Three Months Ended | |||
March 31, 2018 | |||
Net loss |
$ |
(52,825) | |
Depreciation, depletion and accretion expenses |
4,456 | ||
Interest expense |
350 | ||
EBITDA |
$ |
(48,019) | |
Impairment of oil and natural gas properties |
54,753 | ||
Unit-based compensation |
669 | ||
Unrealized loss on commodity derivative instruments |
212 | ||
Adjusted EBITDA |
$ |
7,615 | |
Adjustments to reconcile Adjusted EBITDA to cash available |
|||
for distribution |
|||
Cash interest expense |
475 | ||
Cash available for distribution |
$ |
7,140 | |
Limited partner units outstanding(1) |
16,834,984 | ||
Cash available for distribution per common unit outstanding |
$ |
0.42 | |
(1) |
As of first quarter 2018 distribution record date of May 7, 2018. |
Kimbell Royalty Partners, LP | |||
Supplemental Schedule | |||
(Unaudited, in thousands) | |||
Three Months Ended | |||
March 31, 2018 | |||
Reconciliation of net cash provided by operating activities |
|||
to Adjusted EBITDA |
|||
Net cash provided by operating activities |
$ |
7,294 | |
Interest expense |
350 | ||
Impairment of oil and natural gas properties |
(54,753) | ||
Amortization of loan origination costs |
(16) | ||
Unit-based compensation |
(669) | ||
Unrealized loss on commodity derivative instruments |
(212) | ||
Changes in operating assets and liabilities: |
|||
Oil, natural gas and NGL revenues receivable |
(233) | ||
Other receivables |
135 | ||
Accounts payable |
(379) | ||
Other current liabilities |
464 | ||
EBITDA |
$ |
(48,019) | |
Add: |
|||
Impairment of oil and natural gas properties |
54,753 | ||
Unit-based compensation |
669 | ||
Loss on commodity derivative instruments |
212 | ||
Adjusted EBITDA |
$ |
7,615 | |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-record-first-quarter-2018-results-300646082.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 9, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced it will release its first quarter 2018 financial results on May 10, 2018, before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: |
Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through May 17 by dialing 201-612-7415 and using the conference ID 13677553#. |
By Webcast: |
Connect to the webcast via the Events and Presentations pages of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
The partnership also announced today that it has filed its Form 10-K for the fiscal year ended December 31, 2017 with the U.S. Securities and Exchange Commission (SEC). The Form 10-K is available in the Investor Relations section of Kimbell's website under Financial Reports/SEC Filings. Kimbell will also provide a printed copy of the Form 10-K free of charge upon request. Requests should be directed in writing via email to KRP@dennardlascar.com or by mail to Investor Relations, Kimbell Royalty Partners, 777 Taylor St., Suite 810 Fort Worth, Texas 76102.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 30,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-first-quarter-2018-earnings-release-and-conference-call-schedule-and-files-form-10-k-for-2017-300611742.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 8, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced financial and operating results for the fourth quarter ended December 31, 2017.
Fourth Quarter Highlights
"We are extremely pleased with our performance in the fourth quarter and throughout our first year as a publicly-traded MLP," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner.
"We once again generated sequential production growth with 6% quarter-to-quarter growth in our average daily production. We also benefitted from a strong improvement in oil and natural gas liquids pricing that boosted revenues and EBITDA to record levels. Our strong financial performance enabled us to increase our Q4 distribution by 16% from Q3.
"Our total proved reserves grew by 19% in 2017 on an MMBoe basis as a result of a combination of the acquisitions we made over the course of the year, new activity on our existing properties and the impact of improved commodity pricing. This growth represents significant value for investors that we expect to be realized over the life of these producing fields.
"Since our IPO in February 2017, we have completed almost $30 million of accretive acquisitions, including a small asset package acquired in Q4. We expect to continue to grow both production and reserves in 2018 primarily through additional accretive acquisitions and a potential dropdown of assets from our sponsors," Mr. Ravnaas said.
Acquisitions
Kimbell completed an acquisition of royalty interests in multiple states in the fourth quarter for $1.3 million. These include long-life, shallow decline interests in mature fields with significant hydrocarbons in place and infill drilling locations. The purchase was funded using amounts available under our revolving credit facility. Since its initial public offering in early February 2017, Kimbell has completed acquisitions totaling $29.3 million, the largest of which was the Anadarko Basin acquisition from Maxus Energy Corporation for $15.9 million.
Fourth Quarter 2017 Distribution
On January 26, 2018, the board of directors of Kimbell Royalty GP, LLC, the general partner of Kimbell Royalty Partners, declared a cash distribution of $0.36 per common unit for the fourth quarter of 2017. The distribution was paid on February 14, 2018 to unitholders of record at the close of business on February 7, 2018. This represented a 16% increase from the prior quarter's distribution.
Financial Highlights
Kimbell had fourth quarter revenue of $10.0 million, net income of $1.1 million and earnings per common unit of $0.06. An increase in net income from the prior quarter was primarily the result of increased production and a 9% increase in realized average commodity prices. Adjusted EBITDA was $6.3 million. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release). Average realized price per barrel (Bbl) for oil was $51.78, natural gas per thousand cubic feet (Mcf) was $2.65 and natural gas liquids per Bbl was $22.95.
Production
Kimbell reported total fourth quarter production of 322,726 Boe, or 3,508 Boe per day, an increase of 6% from the prior quarter. The increase was primarily due to additional production realized from certain royalty interests purchased during the fourth quarter.
Fourth quarter revenues were derived 58% from oil, 26% from natural gas, 11% from natural gas liquids sales and 5% from other sales. Production was composed of approximately 34% oil, 51% natural gas and 15% natural gas liquids.
Reserves
Ryder Scott Company, L.P. prepared an estimate of Kimbell's proved reserves as of December 31, 2017. Average prices of $51.34 per barrel of oil and $2.98 per MMBtu of natural gas were used in accordance with applicable rules of the Securities and Exchange Commission. Realized prices with applicable differentials were $47.85 per barrel of oil, $2.37 per Mcf of natural gas and $19.26 per barrel of natural gas liquids.
Proved reserves at year-end 2017 increased by approximately 19% year-over-year to almost 21 MMBoe, of which 74% was proved developed reserves and 49% was in the form of crude oil and natural gas liquids.
Proved developed reserves increased by 27% to 15.4 MMBoe from December 31, 2016 to December 31, 2017, reflecting the acquisitions Kimbell made during the year along with continued development by the operators of Kimbell's acreage.
Net proved reserve additions of 4.5 MMBoe resulted in a reserve replacement ratio of 385% (defined as the sum of extensions, discoveries, revisions and purchases, divided by annual production). The organic reserve replacement ratio was 101% (defined as the sum of extensions, discoveries and revisions, divided by annual production).
Crude Oil and |
Natural Gas |
||||||
Condensate |
Natural Gas |
Liquids |
Total | ||||
(MBbls) |
(MMcf) |
(MBbls) |
(MBOE) | ||||
Net proved reserves at December 31, 2016 |
7,210 |
50,390 |
1,982 |
17,590 | |||
Revisions of previous estimates |
(193) |
(1,535) |
666 |
218 | |||
Purchases of minerals in place |
362 |
16,312 |
274 |
3,355 | |||
Extensions, discoveries and other additions |
505 |
2,261 |
91 |
973 | |||
Production |
(421) |
(3,512) |
(175) |
(1,182) | |||
Net proved reserves at December 31, 2017 |
7,463 |
63,916 |
2,838 |
20,954 |
Hedging Program
In mid-December 2017, Kimbell implemented a hedging program for calendar years 2018 and 2019 in the form of fixed price swaps for approximately 10% of our oil and natural gas production. At December 31, 2017, fixed price swaps for 2018 consisted of 43,070 Bbl of oil (fixed rate at $56.00 per Bbl) and 352,590 MMBtu of natural gas (fixed rate at $2.71 per MMBtu). In addition, as of year-end 2017, fixed price swaps for 2019 consisted of 43,070 Bbl of oil (fixed rate at $53.07 per Bbl) and 352,590 MMBtu of natural gas (fixed rate at $2.76 per MMBtu).
Liquidity
In connection with the February 2018 redetermination under the partnership's revolving credit facility, the borrowing base was reaffirmed at $100 million. Aggregate commitments remain at $50 million, providing for maximum availability under the revolving credit facility of $50 million. At December 31, 2017, Kimbell had $30.8 million outstanding under its revolving credit facility and was in compliance with all related financial covenants.
Full-Cost Ceiling Limitation Impairment
As previously disclosed, the partnership will recognize an impairment in Q1 2018. This non-cash impairment charge is not expected to impact the cash flow available for distribution generated by the partnership, nor its liquidity or ability to make acquisitions in the future. We will reflect such impairment in our financial statements filed with our upcoming Form 10-Q for the quarter ended March 31, 2018.
K-1 Tax Information for Unitholders
Kimbell Royalty Partners expects to mail K-1 information for tax year 2017 to common unitholders beginning in late March 2018. K-1 tax information will be also available at that time to unitholders online in the investor relations section of our website at https://www.taxpackagesupport.com/krp.
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 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 15 by calling (201) 612-7415 and using pass code 13675333#. A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 30,000 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 risks and uncertainties, including risks relating Kimbell Royalty Partners' business and prospects for growth and securities markets generally. Except as required by law, Kimbell Royalty Partners 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 Securities and Exchange Commission ("SEC"). These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks related to the impairment disclosed above, 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 agreements 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 Kimbell's ability to realize the anticipated benefits from acquired assets; 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
Kimbell Royalty Partners, LP | ||
Consolidated Balance Sheet | ||
(Unaudited, in thousands) | ||
December 31, | ||
2017 | ||
Assets: |
(In thousands) | |
Current assets |
||
Cash and cash equivalents |
$ |
5,625 |
Oil, natural gas and NGL receivables |
6,793 | |
Other current assets |
237 | |
Total current assets |
12,655 | |
Property and equipment, net |
165 | |
Oil and natural gas properties |
||
Oil and natural gas properties (full cost method) |
297,610 | |
Less: accumulated depreciation, depletion and accretion |
(15,394) | |
Total oil and natural gas properties |
282,216 | |
Loan origination costs, net |
255 | |
Total assets |
$ |
295,291 |
Liabilities and partners' capital: |
||
Current liabilities |
||
Accounts payable |
$ |
316 |
Other current liabilities |
1,747 | |
Commodity derivative liabilities |
184 | |
Total current liabilities |
2,247 | |
Long-term debt |
30,844 | |
Commodity derivative liabilities |
135 | |
Total liabilities |
33,226 | |
Commitments and contingencies |
||
Partners' capital |
262,065 | |
Total liabilities and partners' capital |
$ |
295,291 |
Kimbell Royalty Partners, LP | ||
Consolidated Statement of Operations | ||
(unaudited, in thousands, except per-unit data and unit count) | ||
Three Months Ended | ||
December 31, 2017 | ||
(In thousands) | ||
Revenue |
||
Oil, natural gas and NGL revenues |
$ |
10,008 |
Loss on commodity derivative instruments |
(319) | |
Total revenues |
9,689 | |
Costs and expenses |
||
Production and ad valorem taxes |
850 | |
Depreciation, depletion and accretion expenses |
4,390 | |
Impairment of oil and natural gas properties |
— | |
Marketing and other deductions |
580 | |
General and administrative expenses |
2,485 | |
Total costs and expenses |
8,305 | |
Operating income |
1,384 | |
Interest expense |
323 | |
Net income |
$ |
1,061 |
Net income attributable to common units: |
||
Basic |
$ |
0.06 |
Diluted |
$ |
0.06 |
Weighted average number of common units outstanding |
||
Basic |
16,342,228 | |
Diluted |
16,509,799 |
Kimbell Royalty Partners, LP
Supplemental Schedule
(unaudited, in thousands, except per unit data and unit count)
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define 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, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by generally accepted accounting principles in the United States ("GAAP"). We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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.
Reserve Replacement
Reserve replacement is a non-GAAP metric commonly used by management, as well as analysts and investors, to evaluate Kimbell's ability to replenish annual production and grow its proved reserves. Total reserve replacement and organic reserve replacement can be computed from information provided in this press release.
Total reserve replacement is defined as the sum of proved reserve extensions, discoveries and other additions, revisions of previous estimates and purchases of minerals in place divided by production for the corresponding period. Organic reserve replacement is defined as the sum of proved reserve extensions, discoveries and other additions and revisions of previous estimates divided by production for the corresponding period. These definitions of reserve replacement may differ significantly from definitions used by other companies to compute similar measures. As a result, reserve replacement as defined above may not be comparable to similar measures provided by other companies.
Reserve replacement is limited because it typically varies widely based on the extent and timing of new discoveries and property acquisitions. Its predictive and comparative value is also limited for the same reasons. Reserve replacement does not distinguish between changes in reserve quantities that are producing and those that will require additional time and capital to begin producing. In addition, since reserve replacement does not take into consideration the cost or timing of future production of new reserves, it cannot be used as a measure of value creation.
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands, except per unit data and unit count) | ||
Three Months Ended | ||
December 31, 2017 | ||
Net income |
$ |
1,061 |
Depreciation, depletion and accretion expenses |
4,390 | |
Interest expense |
323 | |
EBITDA |
$ |
5,774 |
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
229 | |
Loss on commodity derivative instruments |
319 | |
Adjusted EBITDA |
$ |
6,322 |
Adjustments to reconcile Adjusted EBITDA to cash available |
||
for distribution |
||
Cash interest expense |
179 | |
Capital expenditures |
— | |
Cash available for distribution |
$ |
6,143 |
Limited partner units outstanding (1) |
16,836,453 | |
Cash available for distribution per common unit outstanding |
$ |
0.36 |
(1) As of fourth quarter 2017 distribution record date of February 7, 2018. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands) | ||
Three Months Ended | ||
December 31, 2017 | ||
Reconciliation of net cash provided by operating activities |
||
to Adjusted EBITDA |
||
Net cash provided by operating activities |
$ |
4,608 |
Interest expense |
323 | |
Impairment of oil and natural gas properties |
— | |
Amortization of loan origination costs |
(16) | |
Unit-based compensation |
(229) | |
Loss on commodity derivative instruments |
(319) | |
Changes in operating assets and liabilities: |
||
Oil, natural gas and NGL revenues receivable |
1,193 | |
Other receivables |
(22) | |
Accounts payable |
(164) | |
Other current liabilities |
400 | |
EBITDA |
$ |
5,774 |
Add: |
||
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
229 | |
Loss on commodity derivative instruments |
319 | |
Adjusted EBITDA |
$ |
6,322 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-fourth-quarter-2017-results-record-production-revenue-and-ebitda-300610545.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 29, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) is saddened to announce the passing of board member Ted Collins, Jr. Mr. Collins joined the board of directors of KRP's general partner at the time of KRP's initial public offering in early 2017.
"Ted's distinguished career in the oil and gas exploration and production business spanned more than five decades, and we are very sad to lose him both as a good friend and as a wise counselor to Kimbell Royalty Partners. We will miss his advice, sense of humor and friendship," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-mourns-the-death-of-board-member-ted-collins-jr-300589860.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 26, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.36 per common unit for the fourth quarter of 2017. The distribution will be payable on February 14, 2018 to unitholders of record at the close of business on February 7, 2018.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission (SEC). These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-fourth-quarter-2017-distribution-300588908.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 16, 2018 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced it will release its fourth quarter 2017 financial results on Thursday, March 8, 2018, before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: |
Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through March 15 by dialing 201-612-7415 and using the conference ID 13675333#. |
By Webcast: |
Connect to the webcast via the Events and Presentations page of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin. To learn more, visit http://www.kimbellrp.com.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-fourth-quarter-2017-earnings-release-and-conference-call-300583309.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Nov. 9, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced financial and operating results for the third quarter ended Sept. 30, 2017.
Third Quarter Highlights
"Since we announced the $16 million Maxus acquisition in April through the date of this press release, the partnership has closed on an additional $12 million of high-quality mineral and royalty interest acquisitions that add approximately 300 net Boe per day to our current production levels," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner. "Each of these acquisitions is immediately accretive to our distributable cash flow on a per-unit basis. They feature shallow decline rates and significant in-place hydrocarbon reserves in basins where producers are currently very active. These acquisitions were funded using amounts available under our revolving credit facility.
"Since our IPO in February through the date of this press release, we have completed a total of $28 million in mineral and royalty interest acquisitions in keeping with our strategy to grow unitholder value and distributions primarily through accretive acquisitions. In addition to these latest purchases, we are evaluating a number of additional properties on the market that fit our rigorous investment criteria, and we will continue to add to our portfolio of royalty interests in fields where there is significant existing production as well as opportunities for additional organic growth.
"We are very pleased with the performance of our existing portfolio during Q3, with total production increasing by approximately 9% from the second quarter. Despite the impact of slightly lower commodity prices, this allowed us to increase our distribution to common unitholders by approximately 3%," Mr. Ravnaas added.
Acquisitions
Since the $16 million Maxus acquisition in April, Kimbell has closed three additional acquisitions totaling $12 million. These additional acquisitions are located in the Fayetteville/Moorefield Shale in Arkansas and the Uinta Basin in Utah, each of which closed in the fourth quarter, and the Williston Basin in North Dakota, which closed in the second quarter. Collectively, these acquisitions add approximately 300 net barrels of oil (Boe) per day of production, 84,000 gross acres and 3,770 net royalty acres to the partnership.
Third Quarter 2017 Distribution
On Oct. 27, 2017, the board of directors of Kimbell Royalty GP, LLC, the general partner of Kimbell Royalty Partners, declared a cash distribution of $0.31 per common unit for the third quarter of 2017. The distribution will be payable on Nov. 13, 2017 to unitholders of record at the close of business on Nov. 6, 2017. This represents a 3% increase from the prior quarter's distribution.
Financial Highlights
In the third quarter, Kimbell had revenue of $8.4 million, net income of approximately $119,000 and earnings per common unit of $0.01. The reduction in net income relative to the prior quarter was primarily due to non-cash unit based compensation. Adjusted EBITDA was $5.3 million. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release.) Average realized price per barrel (Bbl) for oil was $43.95, natural gas per thousand cubic feet (Mcf) was $2.79, and natural gas liquids per Bbl was $19.75.
Production
Kimbell reported total third quarter production of 303,301 Boe, or 3,297 Boe per day, an increase of 9% or 8%, respectively, from the prior quarter. The increase was primarily due to additional production realized from certain overriding royalty interests purchased from Maxus Energy Corporation during the prior quarter. Third quarter revenues were derived 57% from oil, 30% from natural gas, 11% from natural gas liquids sales and 2% from other sales. Production was composed of approximately 36% oil, 49% natural gas and 15% natural gas liquids.
Liquidity
In connection with the August 1 redetermination under the partnership's revolving credit facility, the borrowing base was reaffirmed at $100 million. Aggregate commitments remain at $50 million, providing for maximum availability under the revolving credit facility of $50 million. At Sept. 30, 2017, Kimbell had $22.2 million outstanding under its revolving credit facility and was in compliance with all related financial covenants. Including additional amounts used to fund the acquisition in Arkansas completed in early November, the outstanding balance is currently $29.6 million.
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 its third quarter 2017 results. To access the call live by phone, dial (201) 389-0869 and use the conference ID number 13671601# at least 10 minutes prior to the start time. A telephonic replay will be available through Nov. 16 by calling (201) 612-7415 and using pass code 13671601#. A webcast of the call will also be available live and for later replay on Kimbell's website at http://kimbellrp.investorroom.com under Events and Presentations.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.7 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 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 risks and uncertainties, including risks relating Kimbell Royalty Partners' business and the securities markets generally. Except as required by law, Kimbell Royalty Partners 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 Securities and Exchange Commission ("SEC"). These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks related to its potential impairment as disclosed above, 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 agreements or its ability to obtain amendments or waivers to effect such compliance; 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 Kimbell's ability to realize the anticipated benefits from acquired assets; 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.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
– Financial statements follow –
Kimbell Royalty Partners, LP | ||
Consolidated Balance Sheet | ||
(Unaudited, in thousands) | ||
September 30, | ||
2017 | ||
Assets: |
(In thousands) | |
Current assets |
||
Cash and cash equivalents |
$ |
6,226 |
Oil, natural gas and NGL receivables |
5,502 | |
Other current assets |
259 | |
Total current assets |
11,987 | |
Property and equipment, net |
204 | |
Oil and natural gas properties |
||
Oil and natural gas properties (full cost method) |
285,043 | |
Less: accumulated depreciation, depletion, accretion and impairment |
(11,047) | |
Total oil and natural gas properties |
273,996 | |
Deposits on oil and natural gas properties |
3,949 | |
Loan origination costs, net |
271 | |
Total assets |
$ |
290,407 |
Liabilities and partners' capital: |
||
Current liabilities |
||
Accounts payable |
$ |
153 |
Other current liabilities |
2,147 | |
Total current liabilities |
2,300 | |
Long-term debt |
22,214 | |
Total liabilities |
24,514 | |
Commitments and contingencies |
||
Partners' capital |
265,893 | |
Total liabilities and partners' capital |
$ |
290,407 |
Kimbell Royalty Partners, LP | ||
Consolidated Statement of Operations | ||
(unaudited, in thousands, except per-unit data and unit count) | ||
Three Months Ended | ||
September 30, 2017 | ||
(In thousands) | ||
Oil, natural gas and NGL revenues |
$ |
8,351 |
Costs and expenses |
||
Production and ad valorem taxes |
779 | |
Depreciation, depletion and accretion expenses |
4,489 | |
Impairment of oil and natural gas properties |
— | |
Marketing and other deductions |
424 | |
General and administrative expenses |
2,315 | |
Total costs and expenses |
8,007 | |
Operating income |
344 | |
Interest expense |
225 | |
Net income |
$ |
119 |
Net income attributable to common units: |
||
Basic |
$ |
0.01 |
Diluted |
$ |
0.01 |
Weighted average number of common units outstanding |
||
Basic |
16,337,985 | |
Diluted |
16,503,664 |
Kimbell Royalty Partners, LP
Supplemental Schedule
(unaudited, in thousands, except per unit data and unit count)
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define Adjusted EBITDA as net income (loss) plus interest expense, net of capitalized interest, non-cash unit-based compensation, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by generally accepted accounting principles in the United States ("GAAP"). We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands, except per unit data and unit count) | ||
Three Months Ended | ||
September 30, 2017 | ||
Net income |
$ |
119 |
Depreciation, depletion and accretion expenses |
4,489 | |
Interest expense |
225 | |
Income taxes |
— | |
EBITDA |
$ |
4,833 |
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
434 | |
Adjusted EBITDA |
$ |
5,267 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution |
||
Cash interest expense |
167 | |
Capital expenditures |
— | |
Cash available for distribution |
$ |
5,100 |
Weighted average number of common units outstanding |
||
Basic |
16,337,985 | |
Diluted |
16,503,664 | |
Cash available for distribution per common unit outstanding |
$ |
0.31 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands) | ||
Three Months Ended | ||
September 30, 2017 | ||
Reconciliation of net cash provided by operating activities to Adjusted EBITDA |
||
Net cash provided by operating activities |
$ |
5,387 |
Interest expense |
225 | |
State income taxes |
— | |
Impairment of oil and natural gas properties |
— | |
Amortization of loan origination costs |
(15) | |
Amortization of tenant improvement allowance |
— | |
Unit-based compensation |
(434) | |
Changes in operating assets and liabilities: |
||
Oil, natural gas and NGL revenues receivable |
556 | |
Prepaid expenses and other receivables |
65 | |
Accounts payable |
228 | |
Other current liabilities |
(1,179) | |
EBITDA |
$ |
4,833 |
Add: |
||
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
434 | |
Adjusted EBITDA |
$ |
5,267 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-third-quarter-2017-results-completes-additional-accretive-acquisitions-300552575.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Oct. 27, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.31 per common unit for the third quarter of 2017. The distribution will be payable on November 13, 2017 to unitholders of record at the close of business on November 6, 2017.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission (SEC). These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-third-quarter-2017-distribution-300544667.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Oct. 2, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced it will release its third quarter 2017 financial results on Thursday, November 9, 2017, before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: |
Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through November 16 by dialing 201-612-7415 and using the conference ID 13671601#. |
By Webcast: |
Connect to the webcast via the Events and Presentations pages of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-timing-of-third-quarter-2017-earnings-release-and-conference-call-300529246.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Aug. 10, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell Royalty Partners" or "Kimbell"), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced results for the quarter ended June 30, 2017. Highlights include:
"We are very pleased with the solid performance of our world class portfolio of royalty assets, which allowed us to declare a distribution of $0.30 per common unit for the second quarter," said Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty Partners' general partner. "The active rig count across our acreage held steady at 24 rigs, which is significantly higher than the rig count at year-end 2016. This is a testament to the quality of our acreage and the attractive development opportunity it provides to operators. We will continue to implement a proactive strategy to create growth through a proven investment process for third-party acquisitions and to actively enhance the value of our portfolio of mineral and royalty assets," Ravnaas concluded.
Second Quarter 2017 Distribution
On July 28, 2017, the board of directors of Kimbell Royalty GP, LLC, the general partner of Kimbell Royalty Partners, declared a cash distribution of $0.30 per common unit for the second quarter of 2017. The distribution will be payable on August 14, 2017 to unitholders of record at the close of business on August 7, 2017.
Financial Highlights
In the second quarter, Kimbell had revenue of $7.8 million, net income of $251,651 and earnings per common unit of $0.02. Average realized price for oil per barrel was $45.10, natural gas per thousand cubic feet (Mcf) was $2.89 and natural gas liquids was $20.83 per barrel. Adjusted EBITDA was $4.7 million. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release.)
Production
Kimbell reported total second quarter production of 279,090 barrels of oil equivalent (BOE), or 3,067 BOE per day. This production includes a partial quarter of production from the acquisition of overriding royalty interests from Maxus Energy Corporation, which closed on April 21, 2017. For the second quarter of 2017, Kimbell's revenues were derived 58% from oil, 31% from natural gas and 11% from natural gas liquids sales. Kimbell's second quarter production was composed of approximately 36% oil, 49% natural gas and 15% natural gas liquids.
Liquidity
In connection with its initial public offering in early February 2017, Kimbell entered into a new $50 million revolving credit facility with an accordion feature permitting aggregate commitments to be increased up to $100 million. In connection with the August 1 redetermination under the revolving credit facility, the borrowing base was reaffirmed at $100 million. Aggregate commitments remain at $50 million, providing for maximum availability under the revolving credit facility of $50 million. At June 30, 2017, Kimbell had $18.3 million outstanding under its revolving credit facility and was in compliance with all related financial covenants.
Conference Call
Kimbell Royalty Partners will host a conference call and webcast, August 10, 2017, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss its second quarter 2017 results. To access the call live, dial (201) 389-0869 and use the conference ID number 13665017# at least 10 minutes prior to the start time. Alternatively, investors can listen live over the Internet by visiting the Kimbell's website at http://kimbellrp.investorroom.com. For those who cannot listen to the live call, a telephonic replay will be available through August 17, 2017 and may be accessed by calling (201) 612-7415 and using pass code 13665017#. Also, an archive of the webcast will be available after the call for at least 90 days on the "Investor Relations" section of the Kimbell's website at http://www.kimbellrp.com.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. Kimbell Royalty Partners is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 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 risks and uncertainties, including risks relating Kimbell Royalty Partners' business and the securities markets generally. Except as required by law, Kimbell Royalty Partners 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 Securities and Exchange Commission ("SEC"). These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks related to its potential impairment as disclosed above, 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 agreements or its ability to obtain amendments or waivers to effect such compliance; 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 Kimbell's ability to realize the anticipated benefits from acquired assets; 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
Kimbell Royalty Partners, LP | ||
Consolidated Balance Sheets | ||
(Unaudited, in thousands) | ||
As of June 30, | ||
2017 | ||
Assets: |
(In thousands) | |
Current assets |
||
Cash and cash equivalents |
$ |
5,827 |
Oil, natural gas and NGL receivables |
4,962 | |
Prepaid expenses |
194 | |
Total current assets |
10,983 | |
Property and equipment, net |
210 | |
Oil and natural gas properties |
||
Oil and natural gas properties (full cost method) |
285,040 | |
Less: accumulated depreciation, depletion, accretion and impairment |
(6,601) | |
Total oil and natural gas properties |
278,439 | |
Deposits on oil and natural gas properties |
— | |
Loan origination costs, net |
287 | |
Total assets |
$ |
289,919 |
Liabilities and partners' capital: |
||
Current liabilities |
||
Accounts payable |
$ |
397 |
Other current liabilities |
968 | |
Total current liabilities |
1,365 | |
Long-term debt |
18,265 | |
Total liabilities |
19,630 | |
Commitments and contingencies |
||
Partners' capital |
270,289 | |
Total liabilities and partners' capital |
$ |
289,919 |
Kimbell Royalty Partners, LP | ||
Consolidated Statements of Operations | ||
(unaudited, in thousands, except per-unit data and unit count) | ||
For the three months | ||
June 30, 2017 | ||
(In thousands) | ||
Oil, natural gas and NGL revenues |
$ |
7,752 |
Costs and expenses |
||
Production and ad valorem taxes |
618 | |
Depreciation, depletion and accretion expenses |
4,132 | |
Impairment of oil and natural gas properties |
— | |
Marketing and other deductions |
386 | |
General and administrative expenses |
2,181 | |
Total costs and expenses |
7,317 | |
Operating income (loss) |
435 | |
Interest expense |
183 | |
Net income (loss) |
$ |
252 |
Net income (loss) attributable to common units: |
||
Basic |
$ |
0.02 |
Diluted |
$ |
0.02 |
Weighted average number of common units outstanding |
||
Basic |
16,332,708 | |
Diluted |
16,422,446 |
Kimbell Royalty Partners, LP
Supplemental Schedule
(unaudited, in thousands, except per unit data and unit count)
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define Adjusted EBITDA as net income (loss) plus interest expense, net of capitalized interest, non-cash unit-based compensation, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by generally accepted accounting principles in the United States ("GAAP"). We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands, except per unit data and unit count) | ||
For the three months | ||
June 30, 2017 | ||
Net income (loss) |
$ |
252 |
Depreciation, depletion and accretion expenses |
4,132 | |
Interest expense |
183 | |
Income taxes |
— | |
EBITDA |
$ |
4,567 |
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
136 | |
Adjusted EBITDA |
$ |
4,703 |
Adjustments to reconcile Adjusted EBITDA to cash available |
||
for distribution |
||
Cash interest expense |
106 | |
Capital expenditures |
— | |
Cash available for distribution |
$ |
4,597 |
Weighted average number of common units outstanding |
||
Basic |
16,332,708 | |
Diluted |
16,422,446 | |
Cash available for distribution per common unit outstanding |
||
Basic |
$ |
0.28 |
Diluted |
$ |
0.28 |
Cash Distribution for Q2 (1) |
$ |
0.30 |
(1) |
Based on Kimbell's working capital position, a $0.30 per common unit distribution was declared, which is in excess of the cash available for distribution of $0.28 per common unit. |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands) | ||
For the three months | ||
June 30, 2017 | ||
Reconciliation of net cash provided by operating activities |
||
to Adjusted EBITDA |
||
Net cash provided by operating activities |
$ |
5,827 |
Interest expense |
183 | |
State income taxes |
— | |
Impairment of oil and natural gas properties |
— | |
Amortization of loan origination costs |
(15) | |
Amortization of tenant improvement allowance |
— | |
Unit-based compensation |
(136) | |
Changes in operating assets and liabilities: |
||
Oil, natural gas and NGL revenues receivable |
(1,745) | |
Prepaid expenses |
(82) | |
Other receivables |
— | |
Accounts payable |
284 | |
Other current liabilities |
251 | |
EBITDA |
$ |
4,567 |
Add: |
||
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
136 | |
Adjusted EBITDA |
$ |
4,703 |
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-second-quarter-2017-financial-and-operating-results-300502394.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, July 28, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.30 per common unit for the second quarter of 2017. The distribution will be payable on August 14, 2017 to unitholders of record at the close of business on August 7, 2017.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission (SEC). These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
View original content:http://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-second-quarter-2017-distribution-300496143.html
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, June 30, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced it will release its second quarter 2017 financial results on Thursday, August 10, 2017 before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet the same day at 10:00 a.m. Central (11:00 a.m. Eastern).
By Phone: |
Dial 201-389-0869 at least 10 minutes before the call. A replay will be available through August 17 by dialing 201-612-7415 and using the conference ID 13665017#. |
By Webcast: |
Connect to the webcast via the Events and Presentations pages of Kimbell's Investor Relations website at http://kimbellrp.investorroom.com/. Please log in at least 10 minutes in advance to register and download any necessary software. A replay will be available shortly after the call. |
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 17, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced the promotion of Matthew S. Daly to Chief Operating Officer, effective immediately. In this role, Mr. Daly will be responsible for all aspects of Kimbell's day-to-day operations and will report directly to Kimbell's President and Chief Financial Officer, R. Davis Ravnaas.
"Matt played a major role in the transition of Kimbell Royalty Partners from a private company to a public company, and has provided valued leadership and expertise to sharpen our strategic focus in his Corporate Development role," said Davis Ravnaas, Kimbell President and Chief Financial Officer. "In the newly created Chief Operating Officer role, we expect Matt to help us continue to enhance all aspects of our business and daily operations, with a goal of maximizing the value of our existing portfolio of royalty assets and growing the business through our disciplined acquisition strategy," he added.
Mr. Daly joined Kimbell in September 2016 as Senior Vice President – Corporate Development. Prior to joining Kimbell, Mr. Daly spent 11 years in investment management, most recently at Kleinheinz Capital Partners, Inc. and Hirzel Capital Management, LLC, two Texas-based investment firms each with over $1 billion in assets under management, where he helped manage both the public and private energy investments. He was also Chairman of Delta Biofuels, Inc., a portfolio company of Kleinheinz Capital Partners, Inc.
Prior to this, Mr. Daly was an investment banker at Wasserstein Perella & Co. in New York City and later Lazard Frères & Co., where he was a Vice President in the Mergers and Acquisitions group. Within this role, he advised on transactions totaling over $10 billion in value including acquisitions, divestitures, corporate restructurings and special committee assignments relating to takeover defense. He began his career at Arthur Andersen LLP in Dallas. He has a BBA from the University of Texas at Austin and an MBA from the Booth School at the University of Chicago.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission. These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks related to our potential impairment as disclosed above, 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 12, 2017 /PRNewswire/ --
Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced the filing of its Form 10-Q for the first quarter 2017, final financial and operational results for the first quarter ended March 31, 2017 and an update on the potential full-cost ceiling test impairment.
The following results reflect the period from the date of closing of our initial public offering on February 8, 2017 through March 31, 2017:
The final operational results for the quarter ended March 31, 2017 reflect the accrual of revenue from the closing of the initial public offering ("IPO") on February 8, 2017 rather than the effective date of the acquisition of oil and natural gas properties on February 1, 2017 as shown on the earnings release dated May 8, 2017. Under the terms of the contribution agreement entered into by and among the Partnership and the Contributing Parties prior to the IPO, the MLP is entitled to receive royalty payments with respect to the acquired properties from and after February 1, 2017. However, for GAAP purposes, the final operational results reflect a revenue accrual from the closing of the IPO on February 8, 2017. This revision does not change the amount of cash received from the partnership's properties during the quarter, nor the partnership's previously announced cash distribution for the quarter ended March 31, 2017.
Financial Highlights
In the first quarter, the partnership had revenues of $4.6 million, net income of $283,000 and earnings per common unit of $0.02. Averaged realized price for oil per Bbl was $47.35, natural gas per Mcf was $2.55 and natural gas liquids was $23.35 per Bbl. Adjusted EBITDA was $2.9 million. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release.)
Production
The partnership reported total first quarter production for the period from February 8, 2017 through March 31, 2017 of 162,053 BOE, or 3,116 BOE per day. On a revenue basis, 62% was oil, 11% was natural gas liquids and 27% was natural gas. On a production basis, approximately 37% was oil, 13% was natural gas liquids and 50% was natural gas.
Update to Potential Full-Cost Ceiling Limitation Impairment
The oil and natural gas properties that were acquired in connection with the IPO were recorded at the acquisition price of those assets at the time of the IPO. As previously disclosed in our filings with the SEC, as a result of the significant difference between the acquisition price at the time of the IPO and the full-cost ceiling limitation, we could have been required to record a significant impairment to our oil and natural gas properties in the quarter ending March 31, 2017. However, we requested and received an exemption from the SEC to exclude the recently acquired properties from the ceiling test calculation. The Partnership will continue to assess the fair value of the acquired assets at each periodic reporting date to ensure inclusion in the ceiling calculation is not required through the December 31, 2017 reporting period, the period of the exemption provided by the SEC.
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission. These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks related to our potential impairment as disclosed above, 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
Kimbell Royalty Partners, LP | ||
Consolidated Balance Sheets | ||
(Unaudited, in thousands) | ||
As of March 31, | ||
2017 | ||
Assets: |
(In thousands) | |
Current assets |
||
Cash and cash equivalents |
$ |
3,892 |
Oil, natural gas and NGL receivables |
6,610 | |
Prepaid expenses |
276 | |
Total current assets |
10,778 | |
Property and equipment, net |
237 | |
Oil and natural gas properties |
||
Oil and natural gas properties (full cost method) |
268,234 | |
Less: accumulated depreciation, depletion, accretion and impairment |
(2,509) | |
Total oil and natural gas properties |
265,725 | |
Deposits on oil and natural gas properties |
2,377 | |
Loan origination costs, net |
302 | |
Total assets |
$ |
279,419 |
Liabilities and partners' capital: |
||
Current liabilities |
||
Accounts payable |
$ |
665 |
Other current liabilities |
1,219 | |
Total current liabilities |
1,884 | |
Long-term debt |
3,877 | |
Total liabilities |
5,761 | |
Commitments and contingencies |
||
Partners' capital |
273,658 | |
Total liabilities and partners' capital |
$ |
279,419 |
Kimbell Royalty Partners, LP | |||
Consolidated Statement of Operations | |||
(Unaudited, in thousands, except per unit data and unit count) | |||
For the period from | |||
March 31, 2017 | |||
(In thousands) | |||
Oil, natural gas and NGL revenues |
$ |
4,553 | |
Costs and expenses |
|||
Production and ad valorem taxes |
206 | ||
Depreciation, depletion and accretion expenses |
2,536 | ||
Impairment of oil and natural gas properties |
— | ||
Marketing and other deductions |
257 | ||
General and administrative expenses |
1,211 | ||
Total costs and expenses |
4,210 | ||
Operating income (loss) |
343 | ||
Interest expense |
60 | ||
Net income (loss) |
$ |
283 | |
Net income (loss) attributable to common units: |
|||
Basic and diluted |
$ |
0.02 | |
Weighted average number of common units outstanding |
|||
Basic and diluted |
16,332,708 |
Kimbell Royalty Partners, LP
Supplemental Schedule
(unaudited, in thousands, except per unit data and unit count)
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP (as defined below) financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders.
We define Adjusted EBITDA as net income (loss) plus interest expense, net of capitalized interest, non‑cash unit‑based compensation, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of the income (loss) as determined by the generally accepted accounting principles in the United States ("GAAP" or "U.S. GAAP"). We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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 flows provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
The following tables present a reconciliation of Adjusted EBITDA to net income and net cash provided by operating activities, the most directly comparable GAAP financial measures, for the periods indicated (unaudited):
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands, except per unit data and unit count) | ||
For the period from | ||
March 31, 2017 | ||
Net income (loss) |
$ |
283 |
Depreciation, depletion and accretion expenses |
2,536 | |
Interest expense |
60 | |
Income taxes |
— | |
EBITDA |
$ |
2,879 |
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
— | |
Adjusted EBITDA |
$ |
2,879 |
Adjustments to reconcile Adjusted EBITDA to cash available |
||
for distribution |
||
Cash interest expense |
4 | |
Capital expenditures |
— | |
Cash available for distribution |
$ |
2,875 |
Weighted average number of common units outstanding |
||
Basic and diluted |
16,332,708 | |
Cash available for distribution per common unit outstanding |
$ |
0.18 |
Kimbell Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands) | ||
For the period from | ||
March 31, 2017 | ||
Reconciliation of net cash provided by operating activities |
||
to Adjusted EBITDA |
||
Net cash provided by operating activities |
$ |
2,712 |
Interest expense |
60 | |
State income taxes |
— | |
Impairment of oil and natural gas properties |
— | |
Amortization of loan origination costs |
(10) | |
Amortization of tenant improvement allowance |
— | |
Unit-based compensation |
— | |
Changes in operating assets and liabilities: |
||
Oil, natural gas and NGL revenues receivable |
1,658 | |
Prepaid expenses |
276 | |
Other receivables |
— | |
Accounts payable |
(665) | |
Other current liabilities |
(1,152) | |
EBITDA |
$ |
2,879 |
Add: |
||
Impairment of oil and natural gas properties |
— | |
Unit-based compensation |
— | |
Adjusted EBITDA |
$ |
2,879 |
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, May 8, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across 20 states, today announced preliminary results for the first quarter ended March 31, 2017. The following results reflect the period from the date of closing of our initial public offering on February 8, 2017 through March 31, 2017. Highlights include:
"We are excited to complete our first quarter as a public company," said Robert Ravnaas, Kimbell Chairman and Chief Executive Officer. "Our world-class portfolio of royalty assets continues to perform as expected. The active rig count across our acreage has increased from 15 to 24 since year-end 2016, with most of the increase coming from the Permian Basin. This is a testament to the quality of our acreage and the attractive investment opportunity it provides to operators."
"We are also excited to announce our first acquisition of overriding royalty interests located in the Mid-Continent. This is high-quality, producing acreage with significant amounts of recoverable oil and gas, a complementary geographic footprint and long-life, shallow decline expectations. We believe this acreage is well positioned for continued growth and is an excellent asset to add to our portfolio."
"Our strategy is to actively manage our portfolio of mineral and royalty assets and to also grow the business through third-party acquisitions and drop-downs," Ravnaas said. "We will continue to implement our proven investment process, which we have employed since 1998. I want to thank our team for their hard work in completing this transaction."
First Quarter 2017 Distribution
The Board of Directors of Kimbell Royalty Partners' General Partner declared on May 2, 2017 the partnership's inaugural cash distribution of $0.23 per common unit. The amount of the first quarter 2017 distribution for KRP was adjusted for the period from the date of the closing of our initial public offering on February 8, 2017 through March 31, 2017.
Financial Highlights
In the first quarter, the partnership had revenues of $5.2 million, net income of $651,000 and earnings per common unit of $0.04. Averaged realized price for oil per Bbl was $47.83, natural gas per Mcf was $2.57 and natural gas liquids was $23.45 per Bbl. Adjusted EBITDA was $3.5 million. (Adjusted EBITDA is a non-GAAP measure. Please see a reconciliation to the nearest GAAP measures at the end of this news release.)
Production
The partnership reported total first quarter production of 181,692 BOE, or 3,080 BOE per day. On a revenue basis, 62% was oil, 11% was natural gas liquids and 27% was natural gas. On a production basis, approximately 37% was oil, 13% was natural gas liquids and 50% was natural gas.
Liquidity
In connection with its initial public offering in early February, the Partnership entered into a new $50 million revolving credit facility with an accordion feature that could expand the borrowing base to as much as $100 million. At March 31, 2017, Kimbell had $3.9 million outstanding on our credit facility and it is in compliance with all related financial covenants.
Following the closing of the Mid-Continent acquisition on April 21, 2017, which was financed using amounts available under our revolving credit facility, Kimbell had a total of $17.4 million outstanding on the credit facility.
Potential Full-Cost Ceiling Limitation Impairment
The oil and natural gas properties that were acquired in connection with the initial public offering ("IPO") were recorded at the acquisition price of those assets at the time of the IPO. The fair value acquisition price of those assets was based on the number of the common units received by our contributors, other than our predecessor, multiplied by the IPO price of $18 per unit plus the net proceeds of the IPO that were distributed to our contributors, other than our predecessor. The full-cost ceiling limitation implemented by SEC regulations requires that future net revenues from oil and natural gas properties be based on a historical twelve-month average pricing and be discounted at 10%. As previously disclosed in our filings with the SEC, as a result of the significant difference between the acquisition price at the time of the IPO and the full-cost ceiling limitation calculated as described above, we may be required to record a significant impairment to our oil and natural gas properties in the quarter ending March 31, 2017. We are currently seeking an exemption under Staff Accounting Bulletin ("SAB") Topic 12Dfrom the SEC that would allow us to defer the full-cost ceiling limitation test for these assets. If this exemption is not granted by the SEC, we will be required to record an impairment charge that could be in excess of $90 million for the quarter ending March 31, 2017. This non-cash impairment charge would not impact the cash flow available for distribution generated by the Partnership, nor its liquidity or ability to make acquisitions in the future. If we are required to record an impairment charge, we will reflect such impairment in our financial statements filed with our upcoming Form 10-Q for the quarter ended March 31, 2017.
Conference Call
Kimbell Royalty Partners will host a conference call and webcast to discuss first quarter results today at 10 a.m. Central Time (11 a.m. Eastern Time).
By Phone: |
Dial (201) 389-0869 approximately 10 minutes before the call and ask for the Kimbell Royalty Partners call. A telephone replay will be available through May 15 by dialing (201) 612-7415 and using the access code 13657550#. |
By Webcast: |
Log onto Kimbell's Investor Relations page at http://kimbellrp.investorroom.com. The audio webcast can be accessed under "Events and Presentations." A replay will be available shortly after the call. |
For more information, please contact Donna Washburn at Dennard-Lascar Associates at dwashburn@dennardlascar.com or 713-529-6600. |
About Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 5.6 million gross acres in 20 states and in nearly every major onshore basin in the continental United States, including ownership in more than 50,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission. These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; risks related to our potential impairment as disclosed above, 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
Kimbell Royalty Partners, LP | ||
Preliminary Consolidated Balance Sheets | ||
(Unaudited, in thousands) | ||
As of March 31, | ||
2017 | ||
Assets: |
(In thousands) | |
Current assets |
||
Cash and cash equivalents |
$ |
3,892 |
Oil, natural gas and NGL receivables |
6,610 | |
Prepaid expenses |
276 | |
Total current assets |
10,778 | |
Property and equipment, net |
237 | |
Oil and natural gas properties |
||
Oil and natural gas properties (full cost method) |
268,806 | |
Less: accumulated depreciation, depletion, accretion and impairment |
(2,713) | |
Total oil and natural gas properties |
266,093 | |
Deposits on oil and natural gas properties |
2,378 | |
Loan origination costs, net |
302 | |
Total assets |
$ |
279,788 |
Liabilities and members' equity: |
||
Current liabilities |
||
Accounts payable |
$ |
665 |
Other current liabilities |
1,219 | |
Total current liabilities |
1,884 | |
Long-term debt |
3,878 | |
Total liabilities |
5,762 | |
Commitments and contingencies |
||
Members' equity |
274,026 | |
Total liabilities and members' equity |
$ |
279,788 |
Note: The information above is preliminary and may change. Please refer to the discussion of the potential full-cost ceiling limitation impairment described elsewhere in this release. |
Kimbell Royalty Partners, LP | ||
Preliminary Consolidated Statement of Operations | ||
(Unaudited, in thousands, except per unit data and unit count) | ||
For the period from | ||
March 31, | ||
(In thousands) | ||
Oil, natural gas and NGL revenues |
$ |
5,173 |
Costs and expenses |
||
Production and ad valorem taxes |
234 | |
Depreciation, depletion and accretion expenses |
2,739 | |
Impairment of oil and natural gas properties |
— | |
Marketing and other deductions |
278 | |
General and administrative expenses |
1,211 | |
Total costs and expenses |
4,462 | |
Operating income (loss) |
711 | |
Interest expense |
60 | |
Net income (loss) |
$ |
651 |
Net income (loss) attributable to common units: |
||
Basic and diluted |
$ |
0.04 |
Weighted average number of common units outstanding |
||
Basic and diluted |
16,332,708 |
Note: The information above is preliminary and may change. Please refer to the discussion of the potential full-cost ceiling limitation impairment described elsewhere in this release. |
Kimbell Royalty Partners, LP
Supplemental Schedule
(unaudited, in thousands, except per unit data and unit count)
NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA is used as a supplemental non-GAAP financial measure by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA to evaluate cash flow available to pay distributions to our unitholders. We define Adjusted EBITDA as net income (loss) plus interest expense, net of capitalized interest, non-cash unit-based compensation, impairment of oil and natural gas properties, income taxes and depreciation, depletion and accretion expense. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our 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. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We expect that cash available for distribution for each quarter will generally equal our 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 Royalty Partners, LP | ||
Supplemental Schedule | ||
(unaudited, in thousands, except per unit data and unit count) | ||
For the period from | ||
March 31, | ||
Reconciliation of net income to cash available for distribution: |
||
Net income (loss) |
$ |
651 |
Adjustments to reconcile to pro forma Adjusted EBITDA: |
||
Depreciation, depletion and accretion expenses |
2,739 | |
Interest expense |
60 | |
Adjusted EBITDA |
$ |
3,450 |
Adjustments to reconcile Adjusted EBITDA to cash available for distribution: |
||
Cash interest expense |
4 | |
Capital expenditures |
— | |
Cash available for distribution |
$ |
3,446 |
Weighted average number of common units outstanding |
||
Basic and diluted |
16,332,708 | |
Cash available for distribution per common unit outstanding |
$ |
0.21 |
Note: The information above is preliminary and may change. Please refer to the discussion of the potential full-cost ceiling limitation impairment described elsewhere in this release. |
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 25, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced the following dates for its first quarter 2017 distribution:
Declaration Date: |
May 2, 2017 |
Record Date: |
May 8, 2017 |
Payment Date: |
May 15, 2017 |
The amount of the first quarter 2017 distribution for KRP will be adjusted for the period from the date of the closing of our initial public offering on February 8, 2017 through March 31, 2017. Common unitholders will not receive any distribution based on any period prior to the closing of our initial public offering.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission. These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 24, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced that its President and Chief Financial Officer, Davis Ravnaas, will present at the Raymond James Financial Services National Conference in Orlando on Thursday, April 27, 2017.
Presentation materials for the conference are now available in the Investor Relations section of Kimbell's website at http://kimbellrp.investorroom.com under Events and Webcasts.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, April 24, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced the closing of the acquisition of 1.1 million gross acres (6,700 net royalty acres) of overriding royalty interests in the Anadarko Basin from Maxus Energy Corporation for $15.9 million. This acquisition primarily includes assets located in the panhandle of Texas and Northwest portion of Oklahoma.
This diversified package, which is substantially all held by production, includes production from multiple stacked pay zones in over 2,600 producing wells located across 32 counties in five states throughout the Mid-Continent, including Texas, Oklahoma, Louisiana, Wyoming and New Mexico. A total of 145 wells have been drilled on the acquired interest since 2014. Management has estimated the average daily production is approximately 272 net Boe/d (6:1) for the first quarter of 2017 and total proved reserves are 1,873 MBoe (6:1) as of April 1, 2017, which consists of 74% natural gas, 16% natural gas liquids and 10% oil. The transaction was funded through the Partnership's credit facility.
Commenting on the transaction, Bob Ravnaas, Chairman and CEO of Kimbell Royalty Partners, said, "The completion of this acquisition from a seller in a bankruptcy for acreage in the active Anadarko Basin demonstrates our opportunistic and disciplined approach to growth. One of our primary objectives has been to acquire high quality, producing acreage with significant amounts of recoverable oil and gas, a complementary geographic footprint and long-life and shallow decline expectations. In addition, current production rates in the Anadarko Basin are expected to rise through increased rig activity due to an expanding infrastructure and technological advancements. Furthermore, from a valuation and operational standpoint, the transaction is expected to be accretive to KRP on enterprise value/net production, enterprise value/net acreage and cash flow per unit basis. We believe this acreage is well positioned for continued growth and is an excellent asset base to add to our portfolio."
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating our business and the securities markets generally. Except as required by law, Kimbell Royalty Partners, LP 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 our filings with the Securities and Exchange Commission. These include risks inherent in oil and natural gas drilling and production activities, including risks with respect to continued low or further declining prices for oil and natural gas that could result in downward revisions to the value of proved reserves or otherwise cause Kimbell to delay or suspend planned drilling and completion operations or reduce production levels, which would adversely impact cash flow; 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 agreements or the ability to obtain amendments or waivers to effect such compliance; 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; delays in receipt of drilling permits; risks relating to unexpected adverse developments in the status of properties; borrowing base redeterminations by Kimbell's banks; risks relating to the absence or delay in receipt of government approvals or third-party consents; risks relating to Kimbell's ability to realize the anticipated benefits from acquired assets; and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission, 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.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, March 30, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced it will release its first quarter 2017 financial results on Monday, May 8, 2017 before the market opens. In conjunction with the release, Kimbell Royalty Partners has scheduled a conference call, which will be broadcast live over the Internet, on Monday, May 8, 2017 at 10:00 a.m. Central (11:00 a.m. Eastern).
What: |
Kimbell Royalty Partners First Quarter 2017 Earnings Conference Call |
When: |
Monday, May 8, 2017 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) |
How: |
Live via phone – by dialing (201) 389-0869. Please access the call at least 10 minutes prior to the start time, or live over the Internet – by logging onto the web at the address below |
Where: |
The webcast link is also posted on the investor relations home page at http://kimbellrp.investorroom.com/ |
For those who cannot listen to the live call, a replay will be available through May 15, 2017 and may be accessed by dialing (201) 612-7415 and using pass code 13657550#. Also, an archive of the webcast will be available shortly after the call at http://kimbellrp.investorroom.com/ for at least 90 days.
Kimbell Royalty Partners today filed its Form 10-K with the Securities and Exchange Commission for the fiscal year ended 2016. Kimbell Royalty Partners began publicly trading common units representing limited partner interests on the New York Stock Exchange under the ticker symbol "KRP" on February 3, 2017, and Kimbell Royalty Partners acquired its initial assets in connection with the closing of its initial public offering on February 8, 2017. Since Kimbell Royalty Partners had not yet acquired its initial assets as of December 31, 2016, the financial results included in the Form 10-K are solely those of its predecessor entity, Rivercrest Royalties, LLC. However, the Form 10-K includes reserve and certain operating data for all the assets that were acquired by Kimbell Royalty Partners in connection with its initial public offering. A copy of the 10-K may be found on KRP's website, www.kimbellrp.com, by selecting "Investors" and then "Financial Reports." Investors may also request a hard copy of the 10-K, free of charge, by e-mailing krp@dennardlascar.com.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (NYSE: KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating to the securities markets generally. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the preliminary prospectus. Kimbell Royalty Partners, LP 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 Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Feb. 3, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (the Partnership), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced the pricing of its initial public offering of 5,000,000 common units representing limited partner interests at a price of $18.00 per common unit. The common units will begin trading on the New York Stock Exchange under the ticker symbol "KRP" on February 3, 2017. The offering is expected to close on February 8, 2017, subject to customary closing conditions.
The Partnership has granted the underwriters of the offering a 30-day option to purchase up to an additional 750,000 common units. At the conclusion of the offering, the public will own an approximate 30.6% limited partner interest in the Partnership (or an approximate 35.2% limited partner interest if the underwriters exercise in full their option to purchase additional common units). Certain parties who are contributing oil and natural gas mineral and royalty interests to the Partnership at the closing of the offering will collectively own the remaining limited partner interests in the Partnership. The Partnership intends to use all of the net proceeds from the offering to make a cash distribution to the parties who are contributing oil and natural gas mineral and royalty interests to the Partnership.
Raymond James is acting as the lead book-running manager in the offering. RBC Capital Markets and Stifel are also acting as joint book-running managers. Stephens Inc. and Wunderlich are acting as co-managers. The offering is being made only by means of a prospectus. A copy of the prospectus related to the offering may be obtained, when available, from:
Raymond James Attn: Equity Syndicate 880 Carillon Parkway St. Petersburg, FL 33716 prospectus@raymondjames.com Telephone: (800) 248-8863 |
RBC Capital Markets Attn: Equity Syndicate Three World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Telephone: (877) 822-4089
|
Stifel Attn: Equity Syndicate 1 South Street, 15th Floor Baltimore, MD 21202 syndprospectus@stifel.com Telephone: (855) 300-7136
|
A registration statement relating to these securities has been filed with, and declared effective by, the U.S. Securities and Exchange Commission (SEC). To obtain a copy of the prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
This news release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating to the securities markets generally. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the preliminary prospectus. Kimbell Royalty Partners, LP 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 Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 25, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP (the Partnership), a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced that it has launched an underwritten initial public offering of 5,000,000 common units representing limited partner interests pursuant to a registration statement on Form S-1 previously filed with the U.S. Securities and Exchange Commission (SEC). The common units are expected to trade on the New York Stock Exchange under the ticker symbol "KRP."
The Partnership expects to grant the underwriters of the offering a 30-day option to purchase up to an additional 750,000 common units. The common units being offered represent an approximate 30.6% limited partner interest in the Partnership (or an approximate 35.2% limited partner interest if the underwriters exercise in full their option to purchase additional common units). Certain parties who are contributing oil and natural gas mineral and royalty interests to the Partnership at the closing of the offering will collectively own the remaining limited partner interests in the Partnership.
Raymond James is acting as the lead book-running manager in the offering. RBC Capital Markets and Stifel are also acting as joint book-running managers. Stephens Inc. and Wunderlich are acting as co-managers. The offering will be made only by means of a prospectus. A copy of the preliminary prospectus related to the offering may be obtained, when available, from:
Raymond James Attn: Equity Syndicate 880 Carillon Parkway St. Petersburg, FL 33716 prospectus@raymondjames.com Telephone: (800) 248-8863 |
RBC Capital Markets Attn: Equity Syndicate Three World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Telephone: (877) 822-4089 |
Stifel Attn: Equity Syndicate 1 South Street, 15th Floor Baltimore, MD 21202 syndprospectus@stifel.com Telephone: (855) 300-7136 |
To obtain a copy of the preliminary prospectus free of charge, visit the SEC's website (www.sec.gov) and search under the registrant's name, "Kimbell Royalty Partners, LP."
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (KRP) is an oil and gas mineral and royalty variable rate master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC, and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Forward-Looking Statements
This news release includes forward-looking statements. These forward-looking statements involve risks and uncertainties, including risks relating to the securities markets generally. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the preliminary prospectus. Kimbell Royalty Partners, LP 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 Associates
krp@dennardlascar.com
(713) 529-6600
SOURCE Kimbell Royalty Partners, LP
FORT WORTH, Texas, Jan. 6, 2017 /PRNewswire/ -- Kimbell Royalty Partners, LP, a leading owner of oil and natural gas mineral and royalty interests across twenty states, today announced the filing of a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) related to its proposed initial public offering.
The registration statement filed today represents Kimbell Royalty Partners' initial public filing pursuant to the provisions of the Jumpstart Our Business Startups (JOBS) Act of 2012. This offering is for common units representing limited partner interests. The number of units to be offered and the price range for the proposed offering have not yet been determined. Kimbell Royalty Partners has been approved to list its common units on the New York Stock Exchange, subject to official notice of issuance, under the ticker symbol "KRP."
Raymond James is acting as the lead book-running manager in the proposed offering. RBC Capital Markets and Stifel are also acting as joint book-running managers. Stephens Inc. and Wunderlich are acting as co-managers.
The offering will be made only by means of a prospectus. A copy of the preliminary prospectus related to the offering may be obtained, when available, from:
Raymond James Attn: Equity Syndicate 880 Carillon Parkway St. Petersburg, FL 33716 Telephone: (800) 248-8863 |
RBC Capital Markets Attn: Equity Syndicate Three World Financial Center 200 Vesey Street, 8th Floor New York, NY 10281 Telephone: (877) 822-4089 |
Stifel Attn: Equity Syndicate 1 South Street, 15th Floor Baltimore, MD 21202 Telephone: (855) 300-7136 |
A registration statement on Form S-1 relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Kimbell Royalty Partners, LP
Kimbell Royalty Partners, LP (KRP) is an oil and gas mineral and royalty master limited partnership based in Fort Worth, Texas. KRP is managed by its general partner, Kimbell Royalty GP, LLC and owns mineral and royalty interests in approximately 4.5 million gross acres in twenty states and in nearly every major onshore basin in the continental United States, including ownership in more than 48,000 gross producing wells with over 29,000 wells in the Permian Basin.
Contact:
Rick Black
Dennard-Lascar Associates
krp@dennardlascar.com
Telephone: (713) 529-6600
SOURCE Kimbell Royalty Partners, LP
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