Record Q2 2023 Run-Rate Daily Production;
Post-MB Minerals Acquisition Production Exceeded 18,000 Boe/d (6:1)
for First Time Including a Full-Quarter of Acquired
Production
Record Market Share of U.S. Land Rig Count of
13.8% with 90 Active Rigs Drilling1
Increase in Borrowing Base and Elected
Commitment on Secured Revolving Credit Facility to $400 Million and Maturity Extended
Until June 2027
Superior Five-Year Annual PDP Decline Rate of
13% Requires Only an Estimated 4.9 Net Wells Annually to Maintain
Flat Production
Announces Q2 2023 Cash Distribution of
$0.39 per Common Unit
FORT WORTH, Texas,
Aug. 2,
2023 /PRNewswire/ -- Kimbell Royalty
Partners, LP (NYSE: KRP) ("Kimbell" or the "Company"), a
leading owner of oil and natural gas mineral and royalty interests
in over 125,000 gross wells across 28 states, today announced
financial and operating results for the quarter ended June 30, 2023.
Second Quarter 2023 Highlights
- Record Q2 2023 run-rate daily production of 17,573 barrels of
oil equivalent ("Boe") per day (6:1)
-
- Includes 45 days of production from the Company's $140.8 million acquisition of MB Minerals (the
"Acquired Production"), which closed on May
17, 2023 with an effective production date of April 1, 2023
- Including a full Q2 2023 impact of the Acquired Production, the
revenues of which will be received by the Company, run-rate
production was 18,554 Boe per day (6:1)
- Q2 2023 oil, natural gas and NGL revenues of $57.0 million, a decrease of 0.8% from Q1 2023,
primarily attributable to a decline in realized commodity
prices
- Q2 2023 net income of approximately $17.8 million and net income attributable to
common units of approximately $13.5
million, as compared to $28.9
million and $23.3 million,
respectively, from Q1 2023
- Q2 2023 consolidated Adjusted EBITDA of $45.0 million, as compared to $42.3 million in Q1 2023
- As of June 30,
2023, Kimbell's major properties2 had 6.86 net
drilled but uncompleted wells ("DUCs") and net permitted locations
on its acreage (3.89 net DUCs and 2.97 net permitted locations),
compared to an estimated 4.9 net wells needed to maintain flat
production
- Announced a Q2 2023 cash distribution of $0.39 per common unit, reflecting a payout ratio
of 75% of cash available for distribution; implies a 9.9%
annualized yield based on the August 1,
2023 closing price of $15.71
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
- On June 13, 2023, Kimbell amended
and extended its secured revolving credit facility through
June 7, 2027 and increased borrowing
base and elected commitments from $350
million to $400 million, an
increase of 14%
- Conservative Balance Sheet with Net Debt to Trailing Twelve
Month Consolidated Adjusted EBITDA of 1.1x
- Kimbell affirms its financial and operational guidance ranges
for 2023 previously disclosed in its May 18,
2023 press release
________________________
|
1 Based on
Kimbell rig count of 90 and Baker Hughes U.S. land rig count of 653
on June 30, 2023.
|
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 20% to Kimbell's net
inventory.
|
Robert Ravnaas, Chairman and Chief Executive Officer of
Kimbell Royalty GP, LLC, Kimbell's general partner (the "General
Partner"), commented, "We are very pleased with another record
quarter and continue to build on last quarter's momentum with the
recently closed MB Minerals royalty acquisition. The
Company's production mix materially shifted towards oil in the
second quarter, with oil now representing 33% of our production mix
on a 6:1 basis as compared to 29% in the first quarter.
Activity on our acreage remains resilient even in the face of a
lower overall U.S. land rig count. In fact, we now have the
highest market share ever of the overall U.S. land rig count at
13.8%. After giving effect to our two most recent
acquisitions, the Permian Basin leads all categories in terms of
production, inventory, rig count and line-of-sight wells.
Production in the Permian grew by 48% quarter over quarter
reflecting a full quarter of the MB Minerals acquisition with the
Permian rig count increasing by 11% during the same period.
Overall, we are very pleased with this quarter as well as our Q2
2023 distribution of $0.39 that we
declared today, an increase of 11% from Q1 2023.
"As we look forward in 2023 and beyond, we remain bullish about
the U.S. oil and natural gas royalty industry, our role as a
leading consolidator in the sector and the prospects for Kimbell to
generate long-term unitholder value."
Second Quarter 2023 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
second quarter of 2023, or $0.39 per
common unit. The distribution will be payable on August 21, 2023 to common unitholders of record
at the close of business on August
14, 2023. Kimbell plans to utilize the remaining 25%
of cash available for distribution for the second quarter of 2023
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 Q2 2023 projected cash available
for distribution), Kimbell has paid down approximately $108.6 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 89% of its second quarter
2023 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 2023. Kimbell believes these
estimates are reasonable based on currently available information,
but they are subject to change.
Financial Highlights
Kimbell's second quarter 2023 average realized price per Bbl of
oil was $72.44, per Mcf of natural
gas was $1.92, per Bbl of NGLs was
$24.16 and per Boe combined was
$33.07.
During the second quarter of 2023, the Company's total revenues
were $60.8 million, net income was
approximately $17.8 million and net
income attributable to common units was approximately $13.5 million, or $0.24 per common unit.
Total second quarter 2023 consolidated Adjusted EBITDA was
$45.0 million (consolidated
Adjusted EBITDA is a non-GAAP financial measure. Please see
definition under Non-GAAP Financial Measures in the Supplemental
Schedules included in this news release and a reconciliation to the
nearest GAAP financial measures at the end of this news
release).
In the second quarter of 2023, G&A expense was $7.9
million, $4.6 million of which was Cash G&A expense,
or $2.90 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 second quarter of 2023, which is a non-cash G&A expense,
was $3.3 million or $2.06 per Boe.
On June 13, 2023, Kimbell amended
its existing credit agreement to, among other things, increase the
borrowing base and elected commitment amount from $350 million to $400
million on the secured revolving credit facility and extend
the maturity to June 7, 2027.
As of June 30, 2023, Kimbell had
approximately $269.6 million in debt
outstanding under its secured revolving credit facility, had net
debt to second quarter 2023 trailing twelve month consolidated
Adjusted EBITDA of approximately 1.1x and was in compliance with
all financial covenants under its secured revolving credit
facility. Kimbell had approximately $130.4 million in undrawn capacity under its
secured revolving credit facility as of June
30, 2023.
As of June 30, 2023, Kimbell had
outstanding 65,507,635 common units and 20,853,618 Class B
units. As of August 2, 2023,
Kimbell had outstanding 65,507,635 common units and 20,853,618
Class B units.
Production
Second quarter 2023 average daily production was 18,145 Boe per
day (6:1), which consisted of 572 Boe per day related to prior
period production recognized in Q2 2023, and 17,573 Boe per day of
run-rate production. The 17,573 Boe per day of run-rate
production was composed of approximately 54% from natural gas (6:1)
and approximately 46% from liquids (33% from oil and 13% from
NGLs). The prior period production recognized in Q2 2023 was
attributable to past production that came into pay status during
the second quarter of 2023. Including a full Q2 2023 impact
of the Acquired Production, the revenues from which will be
received by the Company, run-rate production was 18,554 Boe per day
(6:1).
Operational Update
As of June 30, 2023, Kimbell's
major properties had 767 gross (3.89 net) DUCs and 734 gross (2.97
net) permitted locations on its acreage. In addition, as of
June 30, 2023, Kimbell had 90 rigs
actively drilling on its acreage, which represents an approximate
13.8% market share of all land rigs drilling in the
continental United States as of
such time.
Basin
|
Gross DUCs as of
June 30, 2023(1)
|
Gross Permits as of
June 30, 2023(1)
|
Net DUCs as of
June 30, 2023(1)
|
Net Permits as of
June 30, 2023(1)
|
|
|
Permian
|
462
|
388
|
2.27
|
1.47
|
|
|
Eagle Ford
|
43
|
61
|
0.39
|
0.47
|
|
|
Haynesville
|
105
|
27
|
0.81
|
0.49
|
|
|
Mid-Continent
|
76
|
49
|
0.14
|
0.10
|
|
|
Bakken
|
68
|
175
|
0.23
|
0.20
|
|
|
Appalachia
|
5
|
12
|
0.01
|
0.03
|
|
|
Rockies
|
8
|
22
|
0.04
|
0.21
|
|
|
Total
|
767
|
734
|
3.89
|
2.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
20% to Kimbell's net inventory.
|
|
|
|
|
|
|
Hedging Update
Kimbell maintains a consistent hedging methodology, and hedges
out two years on a rolling quarterly basis. The Company's
commodity derivative contracts consist of fixed price swaps, under
which Kimbell receives a fixed price for the contract and pays a
floating market price to the counterparty over a specified period
for a contracted volume. Kimbell hedges expected daily
production based on the amount of debt as a percent of total
enterprise value. These economic hedges constituted
approximately 15% of daily production for the second quarter of
2023.
The following provides information concerning Kimbell's hedge
book as of June 30, 2023:
|
Fixed Price Swaps as of June 30, 2023
|
|
|
|
|
Weighted Average
|
|
|
Volumes
|
Fixed Price
|
|
|
Oil
|
Nat Gas
|
Oil
|
Nat Gas
|
|
|
BBL
|
MMBTU
|
$/BBL
|
$/MMBTU
|
|
3Q 2023
|
72,680
|
1,047,880
|
$
61.70
|
$
3.09
|
|
4Q 2023
|
67,988
|
995,532
|
$
63.00
|
$
3.28
|
|
1Q 2024
|
54,509
|
823,186
|
$
76.32
|
$
4.15
|
|
2Q 2024
|
56,511
|
809,354
|
$
82.40
|
$
4.31
|
|
3Q 2024
|
48,576
|
785,588
|
$
69.30
|
$
4.45
|
|
4Q 2024
|
68,448
|
811,164
|
$
70.02
|
$
4.48
|
|
1Q 2025
|
71,640
|
848,070
|
$
66.31
|
$
4.37
|
|
2Q 2025
|
99,918
|
917,098
|
$
64.35
|
$
3.53
|
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
second quarter 2023 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 9, 2023 by dialing 201-612-7415 and using
the conference ID 13735459#. 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 2, 2023, 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 16 million gross acres in 28 states and in every
major onshore basin in the continental United States, including ownership in more
than 125,000 gross wells with over 48,000 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, 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
Condensed
Consolidated Balance Sheet
(Unaudited, in
thousands)
|
|
|
June 30,
|
|
2023
|
Assets:
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
$
|
20,779
|
Oil, natural gas and
NGL receivables
|
|
45,006
|
Derivative
assets
|
|
1,795
|
Accounts receivable
and other current assets
|
|
3,136
|
Total current
assets
|
|
70,716
|
Property and equipment,
net
|
|
772
|
Oil and natural gas
properties
|
|
|
Oil and natural gas
properties (full cost method)
|
|
1,602,200
|
Less: accumulated
depreciation, depletion and impairment
|
|
(749,746)
|
Total oil and natural
gas properties, net
|
|
852,454
|
Right-of-use assets,
net
|
|
2,358
|
Derivative
assets
|
|
1,580
|
Loan origination costs,
net
|
|
6,308
|
Total
assets
|
$
|
934,188
|
Liabilities and unitholders'
equity:
|
|
|
Current
liabilities
|
|
|
Accounts
payable
|
$
|
1,370
|
Other current
liabilities
|
|
8,341
|
Derivative
liabilities
|
|
428
|
Total current
liabilities
|
|
10,139
|
Operating lease
liabilities, excluding current portion
|
|
2,066
|
Derivative
liabilities
|
|
171
|
Long-term
debt
|
|
269,600
|
Other
liabilities
|
|
260
|
Total
liabilities
|
|
282,236
|
Commitments and
contingencies
|
|
|
Kimbell Royalty
Partners, LP unitholders' equity:
|
|
|
Common
units
|
|
596,177
|
Class B
units
|
|
1,043
|
Total Kimbell Royalty
Partners, LP unitholders' equity
|
|
597,220
|
Noncontrolling interest
in OpCo
|
|
54,732
|
Total
equity
|
|
651,952
|
Total liabilities,
mezzanine equity and unitholders' equity
|
$
|
934,188
|
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, 2023
|
|
June 30, 2022
|
Revenue
|
|
|
|
|
|
Oil, natural gas and
NGL revenues
|
$
|
56,982
|
|
$
|
78,592
|
Lease bonus and other
income
|
|
2,041
|
|
|
1,213
|
Gain (loss) on
commodity derivative instruments, net
|
|
1,729
|
|
|
(7,094)
|
Total
revenues
|
|
60,752
|
|
|
72,711
|
Costs and expenses
|
|
|
|
|
|
Production and ad
valorem taxes
|
|
5,405
|
|
|
5,003
|
Depreciation and
depletion expense
|
|
19,657
|
|
|
11,274
|
Marketing and other
deductions
|
|
2,908
|
|
|
4,063
|
General and
administrative expenses
|
|
7,925
|
|
|
7,866
|
Consolidated variable
interest entities related:
|
|
|
|
|
|
General and
administrative expenses
|
|
219
|
|
|
591
|
Total costs and
expenses
|
|
36,114
|
|
|
28,797
|
Operating income
|
|
24,638
|
|
|
43,914
|
Other income (expense)
|
|
|
|
|
|
Equity income in
affiliate
|
|
—
|
|
|
3,385
|
Interest
expense
|
|
(6,341)
|
|
|
(3,323)
|
Loss on extinguishment
of debt
|
|
(480)
|
|
|
—
|
Other (expense)
income
|
|
(181)
|
|
|
898
|
Consolidated variable
interest entities related:
|
|
|
|
|
|
Interest earned on
marketable securities in trust account
|
|
1,070
|
|
|
223
|
Net income before income taxes
|
|
18,706
|
|
|
45,097
|
Income tax
expense
|
|
909
|
|
|
1,803
|
Net income
|
|
17,797
|
|
|
43,294
|
Net income
attributable to noncontrolling interests
|
|
(4,297)
|
|
|
(5,424)
|
Distributions on Class
B units
|
|
(32)
|
|
|
(8)
|
Net income attributable to common units of Kimbell
Royalty Partners, LP
|
$
|
13,468
|
|
$
|
37,862
|
|
|
|
|
|
|
Basic
|
$
|
0.24
|
|
$
|
0.66
|
Diluted
|
$
|
0.23
|
|
$
|
0.55
|
Weighted average number of common units
outstanding
|
|
|
|
|
|
Basic
|
|
63,274,492
|
|
|
55,424,930
|
Diluted
|
|
82,959,981
|
|
|
65,543,669
|
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, non cash unit
based compensation, loss on extinguishment of debt, unrealized
gains and losses on derivative instruments, cash distribution from
affiliate, equity income (loss) in affiliate, gains and losses on
sales of assets 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
Supplemental Schedules
(Unaudited, in thousands)
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
June 30, 2023
|
|
June 30, 2022
|
Reconciliation of net cash provided by operating
activities
|
|
|
|
|
|
to Adjusted EBITDA and cash available for
distribution
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
31,519
|
|
$
|
40,423
|
Interest
expense
|
|
6,341
|
|
|
3,323
|
Income tax
expense
|
|
909
|
|
|
1,803
|
Amortization of
right-of-use assets
|
|
(84)
|
|
|
(79)
|
Amortization of loan
origination costs
|
|
(493)
|
|
|
(459)
|
Loss on extinguishment
of debt
|
|
(480)
|
|
|
—
|
Forfeiture of
restricted units
|
|
—
|
|
|
20
|
Unit-based
compensation
|
|
(3,290)
|
|
|
(2,949)
|
Gain on derivative
instruments, net of settlements
|
|
2,600
|
|
|
6,564
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Oil, natural
gas and NGL revenues receivable
|
|
9,071
|
|
|
12,039
|
Accounts
receivable and other current assets
|
|
87
|
|
|
(176)
|
Accounts
payable
|
|
(450)
|
|
|
341
|
Other current
liabilities
|
|
(3,176)
|
|
|
(1,396)
|
Operating lease
liabilities
|
|
85
|
|
|
80
|
Consolidated
variable interest entities related:
|
|
|
|
|
|
Interest earned on
marketable securities in Trust Account
|
|
1,070
|
|
|
223
|
Other assets and
liabilities
|
|
995
|
|
|
(63)
|
Consolidated
EBITDA
|
$
|
44,704
|
|
$
|
59,694
|
Add:
|
|
|
|
|
|
Unit-based
compensation
|
|
3,290
|
|
|
2,949
|
Loss on extinguishment
of debt
|
|
480
|
|
|
—
|
Gain on derivative
instruments, net of settlements
|
|
(2,600)
|
|
|
(6,564)
|
Cash distribution from
affiliate
|
|
—
|
|
|
432
|
Equity income in
affiliate
|
|
—
|
|
|
(3,385)
|
Consolidated variable
interest entities related:
|
|
|
|
|
|
Interest earned on
marketable securities in Trust Account
|
|
(1,070)
|
|
|
(223)
|
General and
administrative expenses
|
|
219
|
|
|
591
|
Consolidated Adjusted
EBITDA
|
$
|
45,023
|
|
$
|
53,494
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(10,872)
|
|
|
(6,702)
|
Adjusted EBITDA attributable to Kimbell Royalty
Partners, LP
|
$
|
34,151
|
|
$
|
46,792
|
|
|
|
|
|
|
Adjustments to reconcile Adjusted EBITDA to cash
available
|
|
|
|
|
|
for distribution
|
|
|
|
|
|
Less:
|
|
|
|
|
|
Cash interest
expense
|
|
4,442
|
|
|
2,442
|
Cash income tax
expense
|
|
—
|
|
|
2,043
|
Distributions on Class
B units
|
|
32
|
|
|
8
|
Cash available for distribution on common
units
|
$
|
29,677
|
|
$
|
42,299
|
Kimbell Royalty
Partners, LP
Supplemental
Schedules
(Unaudited, in
thousands, except for per-unit data and unit counts)
|
|
|
Three Months Ended
|
|
|
|
June 30, 2023
|
|
|
|
|
|
|
|
Net income
|
$
|
17,797
|
|
|
Depreciation and
depletion expense
|
|
19,657
|
|
|
Interest
expense
|
|
6,341
|
|
|
Income tax
expense
|
|
909
|
|
|
Consolidated EBITDA
|
$
|
44,704
|
|
|
Unit-based
compensation
|
|
3,290
|
|
|
Loss on extinguishment
of debt
|
|
480
|
|
|
Gain on derivative
instruments, net of settlements
|
|
(2,600)
|
|
|
Consolidated variable
interest entities related:
|
|
|
|
|
Interest earned on
marketable securities in Trust Account
|
|
(1,070)
|
|
|
General and
administrative expenses
|
|
219
|
|
|
Consolidated Adjusted
EBITDA
|
$
|
45,023
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(10,872)
|
|
|
Adjusted EBITDA attributable to Kimbell Royalty
Partners, LP
|
$
|
34,151
|
|
|
|
|
|
|
|
Adjustments to reconcile Adjusted EBITDA to cash
available
|
|
|
|
|
for distribution
|
|
|
|
|
Less:
|
|
|
|
|
Cash interest
expense
|
|
4,442
|
|
|
Distributions on Class
B units
|
|
32
|
|
|
Cash available for distribution on common
units
|
$
|
29,677
|
|
|
|
|
|
|
|
Common units outstanding on June 30,
2023
|
|
65,507,635
|
|
|
|
|
|
|
|
Cash available for distribution per common unit
outstanding
|
$
|
0.45
|
|
|
|
|
|
|
|
Common units outstanding on August 14, 2023 Record
Date
|
|
65,507,635
|
|
|
|
|
|
|
|
Second quarter 2023 distribution declared
(1)
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
cash flows received from the Q2 2023 Acquired Production
after the effective date of April 1, 2023, but prior to the closing
date of May 17, 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 Q2 2023 acquisition
are reflected in Kimbell's condensed consolidated
financial statements from May 17, 2023 onward.
|
|
|
|
|
|
|
|
|
|
|
|
|
Kimbell Royalty
Partners, LP
Supplemental
Schedules
(Unaudited, in
thousands, except for per-unit data and unit counts)
|
|
|
Three Months Ended
|
|
|
|
June 30, 2022
|
|
|
|
|
|
|
|
Net income
|
$
|
43,294
|
|
|
Depreciation and
depletion expense
|
|
11,274
|
|
|
Interest
expense
|
|
3,323
|
|
|
Income tax
expense
|
|
1,803
|
|
|
Consolidated EBITDA
|
$
|
59,694
|
|
|
Unit-based
compensation
|
|
2,949
|
|
|
Gain on commodity
derivative instruments, net of settlements
|
|
(6,564)
|
|
|
Cash distribution from
affiliate
|
|
432
|
|
|
Equity income in
affiliate
|
|
(3,385)
|
|
|
Consolidated variable
interest entities related:
|
|
|
|
|
Interest earned on
marketable securities in Trust Account
|
|
(223)
|
|
|
General and
administrative expenses
|
|
591
|
|
|
Consolidated Adjusted
EBITDA
|
$
|
53,494
|
|
|
Adjusted EBITDA
attributable to noncontrolling interest
|
|
(6,702)
|
|
|
Adjusted EBITDA attributable to Kimbell Royalty
Partners, LP
|
$
|
46,792
|
|
|
|
|
|
|
|
Adjustments to reconcile Adjusted EBITDA to cash
available
|
|
|
|
|
for distribution
|
|
|
|
|
Less:
|
|
|
|
|
Cash interest
expense
|
|
2,442
|
|
|
Cash income tax
expense
|
|
2,043
|
|
|
Distributions on Class
B units
|
|
8
|
|
|
Cash available for distribution on common
units
|
$
|
42,299
|
|
|
|
|
|
|
|
Common units outstanding on June 30,
2022
|
|
57,331,833
|
|
|
|
|
|
|
|
Cash available for distribution per common unit
outstanding
|
$
|
0.74
|
|
|
|
|
|
|
|
Common units outstanding on August 15, 2022 Record
Date
|
|
57,331,833
|
|
|
|
|
|
|
|
Second quarter 2022 distribution declared
(1)
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
Three Months Ended
|
|
|
|
June 30, 2023
|
|
|
|
|
|
|
|
Net income
|
$
|
17,797
|
|
|
Depreciation and
depletion expense
|
|
19,657
|
|
|
Interest
expense
|
|
6,341
|
|
|
Income tax
expense
|
|
909
|
|
|
Consolidated EBITDA
|
$
|
44,704
|
|
|
Unit-based
compensation
|
|
3,290
|
|
|
Loss on extinguishment
of debt
|
|
480
|
|
|
Gain on derivative
instruments, net of settlements
|
|
(2,600)
|
|
|
Consolidated variable
interest entities related:
|
|
|
|
|
Interest earned on
marketable securities in Trust Account
|
|
(1,070)
|
|
|
General and
administrative expenses
|
|
219
|
|
|
Consolidated Adjusted
EBITDA
|
$
|
45,023
|
|
|
|
|
|
|
|
Q3 2022 - Q1 2023
Consolidated Adjusted EBITDA (1)
|
|
176,276
|
|
|
Trailing Twelve Month
Consolidated Adjusted EBITDA
|
$
|
221,299
|
|
|
|
|
|
|
|
Long-term debt (as of
6/30/23)
|
|
269,600
|
|
|
Cash and cash
equivalents (as of 6/30/23)
|
|
(20,779)
|
|
|
Net debt (as of
6/30/23)
|
$
|
248,821
|
|
|
|
|
|
|
|
Net Debt to Trailing
Twelve Month Consolidated Adjusted EBITDA
|
|
1.1x
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Consolidated
Adjusted EBITDA for each of the quarters ended September 30, 2022,
December 31, 2022 and March 31, 2023
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. This also includes the trailing twelve months pro
forma
results from the Q4 2022 acquisition that closed in December 2022
and the Q2 2023 acquisition that closed in May 2023 in
accordance
with Kimbell's secured revolving credit facility.
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-announces-record-second-quarter-2023-results-301891020.html
SOURCE Kimbell Royalty Partners, LP