Kimbell Royalty Partners Announces Fourth Quarter and Full Year 2020 Results
FORT WORTH, Texas, Feb. 25, 2021 /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 97,000 gross wells across 28 states, today announced financial and operating results for the quarter ended December 31, 2020.
Fourth Quarter 2020 Highlights
-- Q4 2020 daily production of 14,062 barrels of oil equivalent ("Boe") per
day (6:1)
-- Q4 2020 production was composed of approximately 59% from natural gas
and approximately 41% from liquids (27% from oil and 14% from natural
gas liquids ("NGL")) (6:1)
-- Q4 2020 oil, natural gas and NGL revenues of $25.9 million, an increase
of 6% from Q3 2020, reflecting improved realized commodity prices; full
year 2020 oil, natural gas and NGL revenues of $92.6 million
-- Q4 2020 net loss of $93.8 million and net loss attributable to common
units of $62.2 million, compared to Q4 2019 net loss of $103.6 million
and net loss attributable to common units of $51.3 million. The Q4 2020
net loss amount included a non-cash impairment expense of $92.9 million
-- Q4 2020 consolidated Adjusted EBITDA (a "Non-GAAP" financial measure as
defined and reconciled below) of $17.9 million, sequentially up 4% from
Q3 2020
-- As of December 31, 2020, Kimbell had 39 rigs actively drilling on its
acreage, which represented a 30% increase as compared to 30 rigs
actively drilling on its acreage as of September 30, 2020, led by
increased drilling activity in the Permian Basin. Kimbell's 39 active
drilling rig count at year-end 2020 represented 11.7%(1) market share of
all rigs drilling in the lower 48 or the continental United States
-- As of December 31, 2020, Kimbell's major properties had 697 gross (2.38
net) drilled but uncompleted wells ("DUCs") and 594 gross (1.94 net)
permitted locations on its acreage
-- On December 8, 2020, Kimbell amended and extended its secured revolving
credit facility through June 7, 2024 and increased total commitments
from $225.0 million to $265.0 million, an increase of 18%. On January
27, 2021, Kimbell entered into an interest rate swap with Citibank, N.A.
("Citi") and converted approximately 87% of outstanding borrowings under
its secured revolving credit facility to a three-year fixed rate of
approximately 3.9%
-- Q4 2020 cash distribution of $0.19 per common unit reflecting a payout
ratio of 75% of cash available for distribution; implies a 7.4%
annualized yield based on the February 24, 2021 closing price of $10.21
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 secured revolving credit facility
(1) Based on the Kimbell rig count of 39 and the Baker Hughes U.S. land rig count of 332 as of December 31, 2020.
Robert Ravnaas, Chairman and Chief Executive Officer of the Company commented, "Although 2020 was an extremely challenging year for everyone, I am very pleased with our strong operational execution. Throughout the year, we continued to pay an attractive, tax-efficient quarterly cash distribution while at the same time allocating a portion of our cash flow to prudently pay down more than $21 million of outstanding borrowings on our secured revolving credit facility. In addition, we closed the acquisition of Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC and grew our total production by approximately 16% in 2020, as compared to 2019. We also replaced 104% of our proved developed producing ("PDP") reserves, reduced cash general and administrative costs per Boe (a "Non-GAAP" financial measure as defined below) by approximately 5% in 2020, as compared to 2019, completed an oversubscribed equity offering, redeemed 50% of our outstanding Series A preferred units and amended and extended our secured revolving credit facility through June 2024. It was a very productive year for Kimbell.
"With the ongoing recovery of the U.S. oil and natural gas sector in the midst of the COVID-19 pandemic, we began to see a recovery in drilling activity on our acreage, as evidenced by the 30% increase in our rig count at the end of Q4 2020, as compared to Q3 2020, led by increased activity in the Permian Basin. As 2021 progresses, we are hopeful that we will continue to see a gradual improvement in drilling activity given the further increase in the lower 48 rig count during February 2021 as compared to year-end 2020. In addition, because approximately 2% of our acreage is federal land with active fracking, we expect no material impact from any potential suspension of permitting or fracking on federal lands in the U.S. under the new Presidential administration. In fact, we believe this could have the unintended consequence of driving up oil and natural gas prices."
Ravnaas continued, "We are providing full-year 2021 guidance, which includes production guidance that, at its midpoint, reflects roughly flat daily production relative to our Q4 2020 daily production. We believe that most operators will focus their 2021 budgets on arresting declines, with a goal of flat to low single digit production growth in 2021.
"Finally, we remain focused on our role as a major consolidator in the highly fragmented U.S. oil and natural gas royalty sector, as well as assembling a high-quality, low-PDP decline and diversified royalty portfolio that generates significant cash flow with organic and acquisitive growth potential with no fixed capital requirements. We are excited about the opportunities to further expand in the future."
Fourth Quarter 2020 Distribution and Debt Repayment
On January 22, 2021, 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 fourth quarter of 2020, or $0.19 per common unit. The distribution was payable on February 8, 2021 to common unitholders of record at the close of business on February 1, 2021. Kimbell plans to utilize the remaining 25% of cash available for distribution for the fourth quarter of 2020 to pay down a portion of the outstanding borrowings under its secured revolving credit facility. In 2020, Kimbell paid down $21.2 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 substantially all of its fourth 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 2021 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 fourth quarter 2020 average realized price per Bbl of oil was $39.72, per Mcf of natural gas was $2.04, per Bbl of NGLs was $14.98 and per Boe combined was $20.02.
Total fourth quarter 2020 revenues were $23.3 million, compared to $25.4 million in the fourth quarter of 2019. Fourth quarter 2020 net loss was $93.8 million and net loss attributable to common units was $62.2 million, or $1.66 per common unit, compared to net loss of $103.6 million and net loss attributable to common units of $51.3 million in the fourth quarter of 2019. The net loss during the fourth quarter of 2020 was primarily due to a $92.9 million non-cash impairment expense recorded during the quarter as a result of a full-cost ceiling test, which was primarily due 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.
Total fourth quarter 2020 consolidated Adjusted EBITDA was $17.9 million, compared to $20.2 million in the fourth 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).
In the fourth quarter of 2020, G&A expense was $6.4 million, $4.2 million of which was Cash G&A expense, or $3.26 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 fourth quarter of 2020, which is a non-cash G&A expense, was $2.2 million or $1.68 per Boe.
Despite 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 first half of 2021.
Kimbell had outstanding 38,918,689 common units and 20,779,781 Class B units as of December 31, 2020 and February 25, 2021.
Production
Fourth quarter 2020 average daily production was 14,062 Boe per day (6:1), composed of approximately 59% from natural gas (6:1) and approximately 41% from liquids (27% from oil and 14% from NGLs).
Operational Update
As of December 31, 2020, Kimbell's major properties had 697 gross (2.38 net) DUCs and 594 gross (1.94 net) permitted locations on its acreage. As of December 31, 2020, Kimbell had 39 rigs actively drilling on its acreage, which represents an approximate 11.7% market share of all land rigs drilling in the continental United States as of such time. Rig count has further increased into 2021 at the time of this release.
Basin
Gross DUCs as of
Gross Permits as of
Net DUCs as of
Net Permits as of
December 31, 2020(1) December 31, 2020(1) December 31, 2020(1) December 31, 2020(1)
--- ---
Permian 245 220 0.81 0.73
Mid-Continent 119 63 0.30 0.11
Haynesville 60 23 0.39 0.05
Bakken 141 151 0.15 0.27
Eagle Ford 57 64 0.48 0.36
Appalachia 18 41 0.06 0.13
Rockies 57 32 0.19 0.29
---
Total 697 594 2.38 1.94
---
(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.
Reserves
Ryder Scott Company, L.P. prepared an estimate of Kimbell's proved reserves as of December 31, 2020. Average prices of $39.57 per barrel of oil and $1.99 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 $37.12 per barrel of oil, $1.34 per Mcf of natural gas and $9.06 per barrel of NGLs.
Proved developed reserves at year-end 2020 increased by approximately 4% year-over-year to over 42 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)
Condensate (MMcf)
(MBbls) Liquids
(MBbls)
Net proved developed reserves at December 31, 2019 11,303 141,181 6,079 40,912
Revisions of previous estimates 1,033 5,305 374 2,292
Purchases of minerals in place 1,367 15,637 313 4,286
Production (1,409) (17,890) (681) (5,072)
Net proved developed reserves at December 31, 2020 12,294 144,233 6,085 42,418
Liquidity
On December 8, 2020, Kimbell amended its existing credit agreement to, among other things, change the administrative agent to Citi, increase the aggregate commitments from $225 million to $265 million on the secured revolving credit facility, set the borrowing base at $265 million and extend the maturity to June 7, 2024. Based on the current utilization percentage, the interest rate is 350 basis points plus a LIBOR floor of 25 basis points, or 3.75%.
As of December 31, 2020, Kimbell had approximately $171.6 million in debt outstanding under its secured revolving credit facility, had net debt to fourth quarter 2020 trailing twelve month consolidated Adjusted EBITDA of approximately 2.3x and was in compliance with all financial covenants under its secured revolving credit facility. Kimbell had approximately $93.4 million in undrawn capacity under its secured revolving credit facility as of December 31, 2020.
On January 27, 2021, the Company entered into an interest rate swap with Citi, which fixed the interest rate on $150 million of notional, or approximately 87% of Kimbell's outstanding balance on its secured revolving credit facility, at approximately 3.9% for three years.
Hedging
The following provides information concerning Kimbell's hedge book as of December 31, 2020:
Fixed Price Swaps as of December 31, 2020
---
Weighted Average
Volumes Fixed Price
Oil Nat Gas
Oil
Nat Gas
BBL MMBTU
$/BBL
$/MMBTU
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
4Q 2022 109,388 1,383,496 $46.00 $2.58
2021 Guidance
Kimbell is providing financial and operational guidance ranges for 2021 as follows:
Kimbell Royalty
Partners LP
2021
---
Net Production -Mboe/d (6:1) 13.3 14.7
Oil Production -% of Net
Production 25% 29%
Natural Gas Production -% of
Net Production 57% 61%
Natural Gas Liquids Production
-% of Net Production 12% 16%
Unit Costs ($/boe)
Marketing and other deductions $1.60 $2.40
Depreciation, depletion and
accretion expenses $8.00 $12.00
G&A
Cash G&A $3.20 $3.40
Non-Cash G&A $1.70 $2.10
Production and ad valorem
taxes 6.5% 8.5%
Payout Ratio (1) 75%
(1) The Company intends to payout 75% of its projected cash available for distribution in quarterly
distributions and utilize 25% of projected cash available for distribution to paydown a portion of the
outstanding borrowings under its secured revolving credit facility each quarter.
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 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 March 4, 2021, by dialing 201-612-7415 and using the conference ID 13714305#. 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 25, 2021, 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 97,000 gross wells with over 41,000 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 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,
2020
Assets:
Current assets
Cash and
cash
equivalents $
9,805
Oil, natural gas and
NGL receivables 17,553
Accounts receivable
and other current
assets 974
Total current assets 28,332
Property and
equipment, net 1,965
Investment in
affiliate (equity
method) 5,135
Oil and natural gas
properties
Oil and natural gas
properties (full cost
method) 1,149,095
Less: accumulated
depreciation,
depletion and
impairment (628,102)
Total oil and natural
gas properties, net 520,993
Right-of-use assets,
net 3,123
Loan origination
costs, net 5,086
Total assets $
564,634
===
Liabilities, mezzanine
equity and
unitholders' equity:
Current liabilities
Accounts
payable $
889
Other current
liabilities 4,765
Commodity derivative
liabilities 3,113
Total current
liabilities 8,767
Operating lease
liabilities,
excluding current
portion 2,848
Commodity derivative
liabilities 3,168
Long-term debt 171,550
Total liabilities 186,333
Commitments and
contingencies
Mezzanine equity:
Series A preferred
units 42,666
Unitholders' equity:
Common units 257,593
Class B units 1,039
Total unitholders'
equity 258,632
Noncontrolling
interest 77,003
Total equity 335,635
Total
liabilities,
mezzanine
equity and
unitholders'
equity $
564,634
===
Kimbell Royalty Partners, LP
Condensed Consolidated
Statements of Operations
(Unaudited, in thousands,
except per-unit data and unit counts)
Three Months Three Months
Ended Ended
December 31, December 31,
2020 2019
Revenue
Oil, natural gas and NGL
revenues $
25,900 $
27,202
Lease bonus and other
income 32 164
Loss on commodity
derivative instruments,
net (2,645) (2,003)
Total revenues 23,287 25,363
Costs and expenses
Production and ad valorem
taxes 1,472 1,962
Depreciation and
depletion expense 11,987 14,428
Impairment of oil and
natural gas properties 92,860 103,321
Marketing and other
deductions 2,684 2,208
General and
administrative expenses 6,402 5,418
Total costs and expenses 115,405 127,337
Operating loss (92,118) (101,974)
Other income (expense)
Equity income in
affiliate 304 161
Interest expense (1,740) (1,481)
Loss on extinguishment of
debt (476)
Net loss before income
taxes (94,030) (103,294)
(Benefit from) provision
for income taxes (190) 289
Net loss (93,840) (103,583)
Distribution and
accretion on Series A
preferred units (1,578) (3,470)
Net loss attributable to
noncontrolling interests 33,213 55,750
Distributions on Class B
units (21) (23)
Net loss attributable to
common units $
(62,226) $
(51,326)
Basic $
(1.66) $
(2.27)
Diluted $
(1.66) $
(2.27)
Weighted average number
of common units
outstanding
Basic 37,477,152 22,608,400
Diluted 37,477,152 22,608,400
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, December 31,
2020 2019
---
Revenue
Oil, natural gas and NGL
revenues $
92,587 $
107,480
Lease bonus and other income 346 2,477
Loss on commodity derivative
instruments, net (2,451) (1,732)
Total revenues 90,482 108,225
Costs and expenses
Production and ad valorem taxes 6,389 7,720
Depreciation and depletion expense 47,989 52,118
Impairment of oil and natural gas
properties 251,559 169,150
Marketing and other deductions 9,377 8,145
General and administrative expenses 25,902 22,667
Total costs and expenses 341,216 259,800
Operating loss (250,734) (151,575)
Other income (expense)
Equity income in affiliate 764 80
Interest expense (6,430) (5,814)
Loss on extinguishment of debt (476)
Other expense (100)
Net loss before income taxes (256,976) (157,309)
(Benefit from) provision for income
taxes (885) 899
Net loss (256,091) (158,208)
Distribution and accretion on
Series A preferred units (7,810) (13,878)
Net loss attributable to
noncontrolling interests 96,642 89,148
Distributions on Class B units (92) (94)
Net loss attributable to
common units $
(167,351) $
(83,032)
===
Basic $
(4.85) $
(3.92)
===
Diluted $
(4.85) $
(3.92)
===
Weighted average number of common
units outstanding
Basic 34,530,398 21,192,714
Diluted 34,530,398 21,192,714
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 Three Months
Ended Ended
December 31, December 31,
2020 2019
---
Reconciliation of net cash provided
by operating activities
to Adjusted EBITDA
Net cash provided by
operating activities $
13,870 $
16,522
Interest expense 1,740 1,481
(Benefit from) provision for income
taxes (190) 289
Impairment of oil and natural gas
properties (92,860) (103,321)
Amortization of right-of-use
assets (71) (66)
Amortization of loan origination
costs (300) (266)
Loss on extinguishment of debt (476)
Equity income in affiliate 304 161
Forfeiture of restricted units 9
Unit-based compensation (2,180) (1,810)
Loss on commodity derivative
instruments, net of settlements (2,589) (2,545)
Changes in operating assets and
liabilities:
Oil, natural gas and NGL revenues
receivable 1,513 860
Accounts receivable and other
current assets 27 (364)
Accounts payable 107 (74)
Other current liabilities 1,077 1,435
Operating lease liabilities 71 313
Consolidated EBITDA $
(79,948) $
(87,385)
---
Add:
Impairment of oil and natural gas
properties 92,860 103,321
Unit-based compensation 2,180 1,810
Loss on extinguishment of debt 476
Loss on commodity derivative
instruments, net of settlements 2,589 2,545
Cash distribution from affiliate 94
Equity income in affiliate (304) (161)
Consolidated Adjusted
EBITDA $
17,853 $
20,224
Adjusted EBITDA attributable to
noncontrolling interest (6,214) (10,532)
Adjusted EBITDA
attributable to Kimbell
Royalty Partners, LP $
11,639 $
9,692
===
Kimbell Royalty Partners, LP
Supplemental Schedules
(Unaudited, in thousands, except per-unit data and unit counts)
Three Months
Ended
December 31,
2020
Net loss $
(93,840)
Depreciation and depletion expense 11,987
Interest expense 1,740
Cash distribution from affiliate 355
Benefit from income taxes (190)
Consolidated EBITDA $
(79,948)
---
Impairment of oil and natural gas
properties 92,860
Unit-based compensation 2,180
Loss on extinguishment of debt 476
Loss on commodity derivative
instruments, net of settlements 2,589
Equity income in affiliate (304)
Consolidated Adjusted
EBITDA $
17,853
Adjusted EBITDA attributable to
noncontrolling interest (6,214)
Adjusted EBITDA
attributable to Kimbell
Royalty Partners, LP $
11,639
===
Adjustments to reconcile Adjusted
EBITDA to cash available
for distribution
Cash interest expense 925
Cash distributions on Series A
preferred units 627
Distributions on Class B units 21
Cash available for
distribution on common
units $
10,066
===
Common units outstanding on
December 31, 2020 38,918,689
Cash available for
distribution per common
unit outstanding $
0.26
Common units outstanding on
February 1, 2020 Record Date 38,918,689
Fourth 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 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 affiliate 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)
Three Months
Ended
December 31,
2020
Net loss $
(93,840)
Depreciation and depletion expense 11,987
Interest expense 1,740
Cash distribution from affiliate 355
Benefit from income taxes (190)
Consolidated EBITDA $
(79,948)
---
Impairment of oil and natural gas
properties 92,860
Unit-based compensation 2,180
Loss on extinguishment of debt 476
Loss on commodity derivative
instruments, net of settlements 2,589
Equity income in affiliate (304)
Consolidated Adjusted
EBITDA $
17,853
===
Q1 2020 -Q3 2020 Consolidated
Adjusted EBITDA (1) 54,003
Trailing Twelve Month
Consolidated Adjusted
EBITDA $
71,856
===
Long-term debt (as of 12/31/20) 171,550
Cash and cash equivalents (as of
12/31/20) (9,805)
Net debt (as of 12/31/20) $
161,745
===
Net Debt to Trailing Twelve Month
Consolidated Adjusted EBITDA
2.3x
(1) Consolidated Adjusted EBITDA for each of the quarters
ended March 31, 2020, June 30, 2020 and September
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-fourth-quarter-and-full-year-2020-results-301235345.html
SOURCE Kimbell Royalty Partners, LP
