false 0001657788 0001657788 2024-11-07 2024-11-07 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported): November 7, 2024

 

 

Kimbell Royalty Partners, LP

(Exact name of registrant as specified in its charter)

 

 

Delaware   1-38005   47-5505475

(State or other jurisdiction
of incorporation)

  

(Commission
File Number)

  

(I.R.S. Employer
Identification No.)

 

777 Taylor Street, Suite 810

Fort Worth, Texas

   76102
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (817) 945-9700

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to 12(b) of the Act:

 

Title of each class: Trading symbol(s): Name of each exchange on which
registered:
Common Units Representing Limited Partnership Interests KRP New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On November 7, 2024, Kimbell Royalty Partners, LP (the “Partnership”) issued a news release announcing its third quarter 2024 financial and operating results. A copy of the news release is attached hereto, furnished as Exhibit 99.1 and incorporated in this Item 2.02 by reference.

 

Item 7.01. Regulation FD Disclosure.

 

Also on November 7, 2024, the Partnership posted an updated investor presentation on its website. The presentation, titled “Winter 2024 Investor Presentation,” may be found at http://www.kimbellrp.com under the “Events and Presentations” section under the “Investor Relations” tab on the Partnership’s website. Investors should note that the Partnership announces financial information in filings with the Securities and Exchange Commission, press releases and public conference calls as well as on its website.

 

The information contained in Item 2.02, Item 7.01 and the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Number   Description
99.1   News release issued by Kimbell Royalty Partners, LP dated November 7, 2024.
     
104   Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

KIMBELL ROYALTY PARTNERS, LP  
   
By: Kimbell Royalty GP, LLC,  
  its general partner  

 

By: /s/ Matthew S. Daly  
  Matthew S. Daly  
  Chief Operating Officer  

 

Date: November 7, 2024

 

 

 

 

Exhibit 99.1 

 

NEWS RELEASE

 

 

 

Kimbell Royalty Partners Announces Third Quarter 2024 Results

 

Q3 2024 Run-Rate Daily Production of 23,846 Boe/d (6:1)

 

Activity on Acreage Remains Robust with 90 Active Rigs Drilling Representing 16%1 Market Share of U.S. Land Rig Count

 

Net Drilled But Uncompleted Wells (“DUCs”) Increased by 34% Quarter Over Quarter Led by the Permian Basin

 

Record Lease Bonuses Confirming Increased Operator Activity

 

Announces Q3 2024 Cash Distribution of $0.41 per Common Unit

 

FORT WORTH, Texas, November 7, 2024 – Kimbell Royalty Partners, LP (NYSE: KRP) (“Kimbell” or the “Company”), a leading owner of oil and natural gas mineral and royalty interests in over 129,000 gross wells across 28 states, today announced financial and operating results for the quarter ended September 30, 2024.

 

Third Quarter 2024 Highlights

 

·Q3 2024 run-rate daily production of 23,846 barrels of oil equivalent (“Boe”) per day (6:1)

 

·Q3 2024 oil, natural gas and NGL revenues of $71.1 million

 

·Q3 2024 net income of approximately $25.8 million and net income attributable to common units of approximately $17.4 million

 

·Q3 2024 consolidated Adjusted EBITDA of $63.1 million

 

·As of September 30, 2024, Kimbell’s major properties2 had 7.84 net DUCs and net permitted locations on its acreage (5.13 net DUCs and 2.71 net permitted locations) compared to an estimated 5.8 net wells needed to maintain flat production

 

·As of September 30, 2024, Kimbell had 90 rigs actively drilling on its acreage, representing 16% market share of all land rigs drilling in the continental United States as of such time

 

·Announced a Q3 2024 cash distribution of $0.41 per common unit, reflecting a payout ratio of 75% of cash available for distribution; implies a 10.0% annualized yield based on the November 6, 2024 closing price of $16.38 per common unit; Kimbell intends to utilize the remaining 25% of its cash available for distribution to repay a portion of the outstanding borrowings under Kimbell’s revolving credit facility

 

·Conservative Balance Sheet with Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA of 0.8x

 

 

1 Based on Kimbell rig count of 90 and Baker Hughes U.S. land rig count of 567 as of September 30, 2024.

2 These figures pertain only to Kimbell's major properties and do not include possible additional DUCs and permits from Kimbell's minor properties, which generally have a net revenue interest of 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell’s net inventory.

 

 

 

 

Kimbell Royalty Partners, LP – News Release

Page 2

 

·Kimbell affirms its financial and operational guidance ranges for 2024 previously disclosed in its Q4 2023 earnings release

 

Robert Ravnaas, Chairman and Chief Executive Officer of Kimbell Royalty GP, LLC, Kimbell’s general partner (the “General Partner”), commented, “Activity on Kimbell’s acreage remained strong with 90 rigs actively drilling on our acreage, which represents 16% market share of all rigs drilling in the lower 48. In addition, lease bonuses during the quarter were the highest in Kimbell’s history and reflect increased operator interest in developing Kimbell’s acreage. Line-of-site wells continue to be well above the number of wells needed to maintain flat production, giving us confidence in the resilience of our production as we wrap-up 2024. More specifically, the number of net DUCs increased by 34% quarter over quarter to 5.1 net DUCs, the second highest level in Kimbell’s history, led by the Permian Basin.

 

“We are pleased to declare the Q3 2024 distribution of 41 cents per common unit. We estimate that approximately 100% percent of this distribution is expected to be considered return of capital and not subject to dividend taxes, further enhancing the after-tax return to our common unitholders.”

 

Third Quarter 2024 Distribution and Debt Repayment

 

Today, the Board of Directors of the 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 2024, or $0.41 per common unit. The distribution will be payable on November 25, 2024 to common unitholders of record at the close of business on November 18, 2024. Kimbell plans to utilize the remaining 25% of cash available for distribution for the third quarter of 2024 to pay down a portion of the outstanding borrowings under its secured revolving credit facility. Since May 2020 (excluding the expected upcoming pay-down from the remaining 25% of Q3 2024 projected cash available for distribution), Kimbell has paid down approximately $179.0 million of outstanding borrowings under its secured revolving credit facility by allocating a portion of its cash available for distribution for debt pay-down.

 

Kimbell expects that approximately 100% of its third quarter 2024 distribution should not constitute dividends for U.S. federal income tax purposes, but instead are estimated to constitute non-taxable reductions to the basis of each distribution recipient’s ownership interest in Kimbell common units. The reduced tax basis will increase unitholders’ capital gain (or decrease unitholders’ capital loss) when unitholders sell their common units. The Form 8937 containing additional information may be found at www.kimbellrp.com under “Investor Relations” section of the site. Kimbell currently believes that the portion that constitute dividends for U.S. federal income tax purposes will be considered qualified dividends, subject to holding period and certain other conditions, which are subject to a tax rate of 0%, 15% or 20% depending on the income level and tax filing status of a unitholder for 2024. Kimbell believes these estimates are reasonable based on currently available information, but they are subject to change.

 

 

 

 

Kimbell Royalty Partners, LP – News Release

Page 3

 

Financial Highlights

 

Kimbell’s third quarter 2024 average realized price per Bbl of oil was $74.19, per Mcf of natural gas was $1.71, per Bbl of NGLs was $21.46 and per Boe combined was $31.57.

 

During the third quarter of 2024, the Company’s total revenues were $83.8 million, net income was approximately $25.8 million and net income attributable to common units was approximately $17.4 million, or $0.22 per common unit.

 

Total third quarter 2024 consolidated Adjusted EBITDA was $63.1 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 2024, G&A expense was $9.5 million, $5.6 million of which was Cash G&A expense, or $2.57 per BOE (Cash G&A and Cash G&A per Boe are non-GAAP financial measures. Please see definition under Non-GAAP Financial Measures in the Supplemental Schedules included in this news release). Unit-based compensation in the third quarter of 2024, which is a non-cash G&A expense, was $3.8 million or $1.75 per Boe.

 

As of September 30, 2024, Kimbell had approximately $252.2 million in debt outstanding under its secured revolving credit facility, had net debt to third quarter 2024 trailing twelve month consolidated Adjusted EBITDA of approximately 0.8x and was in compliance with all financial covenants under its secured revolving credit facility. Kimbell had approximately $297.8 million in undrawn capacity under its secured revolving credit facility as of September 30, 2024.

 

As of September 30, 2024, Kimbell had outstanding 80,969,651 common units and 14,524,120 Class B units. As of November 7, 2024, Kimbell had outstanding 80,969,651 common units and 14,524,120 Class B units.

 

Production

 

Third quarter 2024 run-rate average daily production was 23,846 Boe per day (6:1), which was composed of approximately 52% from natural gas (6:1) and approximately 48% from liquids (30% from oil and 18% from NGLs).

 

Operational Update

 

As of September 30, 2024, Kimbell’s major properties had 831 gross (5.13 net) DUCs and 527 gross (2.71 net) permitted locations on its acreage. In addition, as of September 30, 2024, Kimbell had 90 rigs actively drilling on its acreage, which represents an approximate 15.9% market share of all land rigs drilling in the continental United States as of such time.

 

 

 

 

Kimbell Royalty Partners, LP – News Release

Page 4

 

   Gross DUCs as of  Gross Permits as of  Net DUCs as of  Net Permits as of 
Basin  September 30, 2024(1)  September 30, 2024(1)  September 30, 2024(1)  September 30, 2024(1) 
Permian   457   349   2.62   1.71 
Eagle Ford   100   32   0.63   0.13 
Haynesville   50   10   0.54   0.13 
Mid-Continent   131   54   1.04   0.43 
Bakken   79   75   0.20   0.28 
Appalachia   5   3   0.02   0.01 
Rockies   9   4   0.08   0.02 
Total   831   527   5.13   2.71 

 

 

(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 generally have a net revenue interest of 0.1% or below and are time consuming to quantify but, in the estimation of Kimbell's management, could add an additional 15% to Kimbell's net inventory.

 

Hedging Update

 

The following provides information concerning Kimbell’s hedge book as of September 30, 2024:

 

   Fixed Price Swaps as of September 30, 2024    
         Weighted Average 
   Volumes  Fixed Price
   Oil  Nat Gas  Oil  Nat Gas 
   BBL  MMBTU  $/BBL  $/MMBTU 
4Q 2024  141,588  1,332,712  $74.60  $4.19 
1Q 2025  140,400  1,289,520  $71.55  $4.32 
2Q 2025  140,686  1,310,127  $67.64  $3.52 
3Q 2025  136,068  1,261,964  $74.20  $3.74 
4Q 2025  146,372  1,291,680  $68.26  $3.68 
1Q 2026  146,880  1,296,000  $70.38  $4.07 
2Q 2026  148,512  1,310,400  $70.78  $3.33 
3Q 2026  150,144  1,324,800  $66.60  $3.42 

 

Conference Call

 

Kimbell Royalty Partners will host a conference call and webcast today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss third quarter 2024 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, 2024 by dialing 201-612-7415 and using the conference ID 13748350#. 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.

 

 

 

 

Kimbell Royalty Partners, LP – News Release

Page 5

 

Presentation

 

On November 7, 2024, 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 17 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 129,000 gross wells. 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 (including financial and operational guidance), drilling inventory, growth potential, identified locations and all other estimates and predictions resulting from Kimbell’s portfolio review, the tax treatment of Kimbell's distributions, changes in Kimbell’s capital structure, future natural gas and other commodity prices and changes to supply and demand for oil, natural gas and NGLs. These and other forward-looking statements involve risks and uncertainties, including risks that the anticipated benefits of acquisitions are not realized 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 potential declines in 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 Acquired Production, 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 – News Release

Page 6

 

Kimbell Royalty Partners, LP

Condensed Consolidated Balance Sheet

(Unaudited, in thousands)

  

   September 30, 
   2024 
Assets:     
Current assets     
Cash and cash equivalents  $34,706 
Oil, natural gas and NGL receivables   48,975 
Derivative assets   6,818 
Accounts receivable and other current assets   1,671 
Total current assets   92,170 
Property and equipment, net   361 
Oil and natural gas properties     
Oil and natural gas properties (full cost method)   2,048,712 
Less: accumulated depreciation, depletion and impairment   (936,054)
Total oil and natural gas properties, net   1,112,658 
Right-of-use assets, net   1,929 
Derivative assets   1,763 
Loan origination costs, net   5,790 
Total assets  $1,214,671 
Liabilities and unitholders' equity:     
Current liabilities     
Accounts payable  $6,865 
Other current liabilities   10,875 
Total current liabilities   17,740 
Operating lease liabilities, excluding current portion   1,605 
Derivative liabilities   2 
Long-term debt   252,160 
Other liabilities   104 
Total liabilities   271,611 
Commitments and contingencies     
Mezzanine equity:     
Series A preferred units   315,608 
Kimbell Royalty Partners, LP unitholders' equity:     
Common units   531,294 
Class B units   726 
Total Kimbell Royalty Partners, LP unitholders' equity   532,020 
Non-controlling interest in OpCo   95,432 
Total unitholders' equity   627,452 
Total liabilities, mezzanine equity and unitholders' equity  $1,214,671 

 

 

 

 

Kimbell Royalty Partners, LP – News Release

Page 7

 

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, 2024   September 30, 2023 
Revenue        
Oil, natural gas and NGL revenues  $71,069   $69,238 
Lease bonus and other income   3,163    2,543 
Gain (loss) on commodity derivative instruments, net   9,553    (4,577)
Total revenues   83,785    67,204 
Costs and expenses          
Production and ad valorem taxes   4,347    4,986 
Depreciation and depletion expense   32,155    23,060 
Marketing and other deductions   3,607    3,509 
General and administrative expense   9,472    10,359 
Total costs and expenses   49,581    41,914 
Operating income   34,204    25,290 
Other expense          
Interest expense   (6,492)   (6,681)
Net income before income taxes   27,712    18,609 
Income tax expense   1,907    128 
Net income   25,805    18,481 
Distribution and accretion on Series A preferred units   (5,296)   (1,041)
Net income attributable to non-controlling interests   (3,119)   (3,839)
Distributions on Class B units   (15)   (21)
Net income attributable to common units of Kimbell Royalty Partners, LP  $17,375   $13,580 
           
Basic  $0.22   $0.20 
Diluted  $0.22   $0.19 
Weighted average number of common units outstanding          
Basic   78,977,450    68,540,786 
Diluted   116,414,205    94,969,077 

 

 

 

 

Kimbell Royalty Partners, LP – News Release

Page 8

 

Kimbell Royalty Partners, LP
Supplemental Schedules

 

NON-GAAP FINANCIAL MEASURES

 

Adjusted EBITDA, Cash G&A and Cash G&A per Boe are used as 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), net of depreciation and depletion expense, interest expense, income taxes, impairment of oil and natural gas properties, non-cash unit-based compensation, loss on extinguishment of debt, unrealized gains and losses on derivative instruments and operational impacts of variable interest entities, which include general and administrative expense and interest income.  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, tax 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 – News Release

Page 9

 

Kimbell Royalty Partners, LP

Supplemental Schedules

(Unaudited, in thousands)

 

   Three Months Ended   Three Months Ended 
   September 30, 2024   September 30, 2023 
Reconciliation of net cash provided by operating activities to Adjusted EBITDA and cash available for distribution          
Net cash provided by operating activities  $62,417   $36,387 
Interest expense   6,492    6,681 
Income tax expense   1,907    128 
Amortization of right-of-use assets   (87)   (84)
Amortization of loan origination costs   (532)   (405)
Unit-based compensation   (3,830)   (3,326)
Gain (loss) on derivative instruments, net of settlements   7,066    (4,098)
Changes in operating assets and liabilities:          
Oil, natural gas and NGL revenues receivable   (4,243)   16,314 
Accounts receivable and other current assets   (719)   (280)
Accounts payable   (310)   (855)
Other current liabilities   (1,899)   (2,200)
Operating lease liabilities   97    88 
Consolidated EBITDA  $66,359   $48,350 
Add:          
Unit-based compensation   3,830    3,326 
(Gain) loss on derivative instruments, net of settlements   (7,066)   4,098 
Consolidated Adjusted EBITDA  $63,123   $55,774 
Adjusted EBITDA attributable to non-controlling interest   (9,601)   (12,279)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP  $53,522   $43,495 
           
Adjustments to reconcile Adjusted EBITDA to cash available for distribution          
Less:          
Cash interest expense   5,123    4,645 
Cash distributions on Series A preferred units   4,156    750 
Distributions on Class B units   15    21 
Cash available for distribution on common units  $44,228   $38,079 

 

 

 

 

Kimbell Royalty Partners, LP – News Release
Page 10

 

Kimbell Royalty Partners, LP

Supplemental Schedules

(Unaudited, in thousands, except for per-unit data and unit counts)

 

   Three Months Ended.
September 30, 2024		 
Net income  $25,805 
Depreciation and depletion expense   32,155 
Interest expense   6,492 
Income tax expense   1,907 
Consolidated EBITDA  $66,359 
Unit-based compensation   3,830 
Gain on derivative instruments, net of settlements   (7,066)
Consolidated Adjusted EBITDA  $63,123 
Adjusted EBITDA attributable to non-controlling interest   (9,601)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP  $53,522 
      
Adjustments to reconcile Adjusted EBITDA to cash available for distribution
Less:     
Cash interest expense   5,123 
Cash distributions on Series A preferred units   4,156 
Distributions on Class B units   15 
Cash available for distribution on common units  $44,228 
      
Common units outstanding on September 30, 2024   80,969,651 
      
Common units outstanding on November 18, 2024 Record Date   80,969,651 
      
Cash available for distribution per common unit outstanding  $0.55 
      
Third quarter 2024 distribution declared (1)  $0.41 

 

(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 secured revolving credit facility.

 

 

 

 

Kimbell Royalty Partners, LP – News Release
Page 11

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands, except for per-unit data and unit counts)

 

   Three Months Ended
September 30, 2023		 
Net income  $18,481 
Depreciation and depletion expense   23,060 
Interest expense   6,681 
Income tax expense   128 
Consolidated EBITDA  $48,350 
Unit-based compensation   3,326 
Loss on derivative instruments, net of settlements   4,098 
Consolidated Adjusted EBITDA  $55,774 
Adjusted EBITDA attributable to non-controlling interest   (12,279)
Adjusted EBITDA attributable to Kimbell Royalty Partners, LP  $43,495 
      
Adjustments to reconcile Adjusted EBITDA to cash available for distribution     
Less:     
Cash interest expense   4,645 
Cash distributions on Series A preferred units   750 
Distributions on Class B units   21 
Cash available for distribution on common units  $38,079 
      
Common units outstanding on September 30, 2023   73,851,458 
      
Common units outstanding on November 13, 2023 Record Date   73,851,458 
      
Cash available for distribution per common unit outstanding  $0.52 
      
Third quarter 2023 distribution declared (1)  $0.51 

 

(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 secured revolving credit facility. Additionally, Kimbell utilized approximately $12.4 million of cash flows received from the Q3 2023 Acquired Production after the effective date of June 1, 2023, but prior to the closing date of September 13, 2023, to pay outstanding borrowings under its credit facility and to distribute the additional cash flows to common unitholders. Revenues, production and other financial and operating results from the Q3 2023 acquisition are reflected in Kimbell's condensed consolidated financial statements from September 13, 2023 onward.

 

 

 

 

Kimbell Royalty Partners, LP – News Release
Page 12

 

Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands)

 

  

Three Months Ended

September 30, 2024

 
Net income  $25,805 
Depreciation and depletion expense   32,155 
Interest expense   6,492 
Income tax expense   1,907 
Consolidated EBITDA  $66,359 
Unit-based compensation   3,830 
Gain on derivative instruments, net of settlements   (7,066)
Consolidated Adjusted EBITDA  $63,123 
      

Q4 2023 - Q2 2024 Consolidated Adjusted EBITDA (1)

   208,927 
Trailing Twelve Month Consolidated Adjusted EBITDA  $272,050 
      

Long-term debt (as of 9/30/24)

   252,160 
Cash and cash equivalents (as of 9/30/24) (2)   (25,000)
Net debt (as of 9/30/24)  $227,160 
      
Net Debt to Trailing Twelve Month Consolidated Adjusted EBITDA   0.8x

 

(1) Consolidated Adjusted EBITDA for each of the quarters ended December 31, 2023, March 31, 2024 and June 30, 2024 was previously reported in a news release relating to the applicable quarter, and the reconciliation of net income to consolidated Adjusted EBITDA for each quarter is included in the applicable news release.

 

(2) In accordance with Kimbell's secured revolving credit facility, the maximum deduction of cash and cash equivalents to be included in the net debt calculation for compliance purposes is $25 million.

 

 

 

 

v3.24.3
Cover
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Nov. 07, 2024
Entity File Number 1-38005
Entity Registrant Name Kimbell Royalty Partners, LP
Entity Central Index Key 0001657788
Entity Tax Identification Number 47-5505475
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 777 Taylor Street
Entity Address, Address Line Two Suite 810
Entity Address, City or Town Fort Worth
Entity Address, State or Province TX
Entity Address, Postal Zip Code 76102
City Area Code 817
Local Phone Number 945-9700
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Units Representing Limited Partnership Interests
Trading Symbol KRP
Security Exchange Name NYSE
Entity Emerging Growth Company false
Kimbell Royalty Partners (NYSE:KRP)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Kimbell Royalty Partners Charts.
Kimbell Royalty Partners (NYSE:KRP)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Kimbell Royalty Partners Charts.