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
- Q2 2020 run-rate daily production of 14,069 barrels of oil
equivalent ("Boe") per day (6:1)
- Including a full quarter of the production attributable to the
Springbok assets, Q2 2020 run-rate daily production of 14,090 Boe
per day (6:1), down 7% from Q1 2020 record production of 15,188 Boe
per day (6:1)
-
- Substantially all of the decrease in production between Q1 2020
and Q2 2020 was due to curtailments that occurred in Q2 2020
- Q2 2020 production was comprised of approximately 41% from
liquids (28% from oil and 13% from natural gas liquids ("NGL")) and
approximately 59% from natural gas (6:1)
- Q2 2020 oil, natural gas and NGL revenues of $16.8 million, reflecting impacts from the
COVID-19 pandemic and related supply/demand imbalances in the U.S.
oil and natural gas markets that significantly depressed production
prices
- Q2 2020 realized hedging gains of $2.9
million; substantial portion of projected oil and natural
gas production hedged through Q2 2022
- Q2 2020 net loss of $76.8 million
and Q2 2020 net loss attributable to common units of $48.0 million. The Q2 2020 net loss amount was
primarily due to a non-cash ceiling test impairment expense of
$65.5 million related to the
substantial weakness in commodity prices
- Q2 2020 consolidated Adjusted EBITDA of $12.1 million
- As of June 30, 2020, Kimbell had
806 gross (2.98 net) drilled but uncompleted wells ("DUCs") and 611
gross (2.25 net) permitted locations on its acreage
- As of June 30, 2020, Kimbell had
29 rigs actively drilling on our acreage, which represented
11.6%1 market share of all rigs drilling in the
continental United States as of
such time
- Announced a cash distribution of $0.13 per common unit and an increase in the
pay-out ratio of cash available for distribution from 50% in Q1
2020 to 75% in Q2 2020; implies a 5.8% annualized yield based on
the August 5, 2020 closing price of
$9.00 per common unit; Kimbell
intends to utilize the remaining 25% of its available cash to repay
a portion of the outstanding borrowings under Kimbell's credit
facility
- On June 1, 2020, Kimbell received
unanimous reaffirmation of its $300.0
million borrowing base and total commitments of $225.0 million
____________________________
|
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
June 30, 2020(1)
|
Gross Permits as
of
June 30, 2020(1)
|
Net DUCs as of
June 30, 2020(1)
|
Net Permits as
of
June 30, 2020(1)
|
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