Kimbell Royalty Partners Declares First Quarter 2022 Distribution

Rhea-AI Summary

Kimbell Royalty Partners, LP (NYSE: KRP) announced a cash distribution of $0.47 per common unit for Q1 2022, representing 75% of projected cash available for distribution. This payment is set for May 9, 2022, to unitholders recorded by May 2, 2022. Kimbell will allocate 25% of the available cash to reduce outstanding borrowings, contributing to a total of approximately $52.5 million paid down since May 2020. The distribution is expected to be free of dividend income taxes, categorized as a return of capital.

Positive

• Declared a cash distribution of $0.47 per common unit for Q1 2022, affirming commitment to unitholders.
• Utilizing 25% of cash available for distribution for debt reduction, contributing to a total of $52.5 million paid down since May 2020.
• Expected distribution is free of dividend income taxes, enhancing investor returns.

Negative

• None.

FORT WORTH, Texas, April 22, 2022 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 122,000 gross wells across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, Kimbell's general partner, approved a cash distribution payment of 75% of projected cash available for distribution for the first quarter of 2022, or $0.47 per common unit.  The distribution will be payable on May 9, 2022 to common unitholders of record at the close of business on May 2, 2022.  Kimbell intends to utilize the remaining 25% of Q1 2022 projected cash available for distribution to pay down a portion of the outstanding borrowings under Kimbell's credit facility.  Since May 2020 (excluding the expected upcoming pay down from the remaining 25% of Q1 2022 projected cash available for distribution), Kimbell has paid down approximately $52.5 million of outstanding borrowings under its credit facility from allocating a portion of its cash available for distribution for debt pay down. 

Kimbell - Supplemental Distribution Data
						Percent
		Q4 2021		Q1 2022		Change
WTI Average Crude Oil Price (1)		$77.45		$94.45		21.9%
Henry Hub Average Natural Gas Price (1)		$4.77		$4.66		(2.3%)
Common Unit Distribution Declared		$0.37		$0.47		27.0%
Pay-Out Ratio (2)		75%		75%		0.0%
Annualized Cash Yield (3)				11.1%
Cash Received from Lease Bonuses and Other Income		$306,063		$654,130
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE FIRST QUARTER OF 2022
EXPECTED TO BE FREE OF DIVIDEND INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL(4)
(1)  Average monthly commodity prices are from the Energy Information Administration.  Crude oil prices are in dollars per barrel and natural gas prices are in dollars per million Btu.
(2)  Represents percentage of projected cash available for distribution to be paid in quarterly distribution declared.
(3)  Based on the closing price of Kimbell common units on April 22, 2022.
(4)  This estimate is based upon assumptions Kimbell has made regarding, among other things, Kimbell Royalty Operating, LLC's income and depletion deductions and production from the mineral and royalty interests owned by Kimbell Royalty Operating, LLC.  This estimate is based on current tax law and tax reporting positions that Kimbell has adopted and with which the Internal Revenue Service could disagree.  This estimate is not a fact, and no assurances can be made regarding this estimate.

About Kimbell Royalty Partners

Kimbell (NYSE: KRP) is a leading oil and gas mineral and royalty company based in Fort Worth, Texas.  Kimbell owns mineral and royalty interests in approximately 16 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 122,000 gross wells with over 46,000 wells in the Permian Basin.  To learn more, visit kimbellrp.com.

Forward-Looking Statements

This news release includes forward-looking statements, including statements relating to the tax treatment of Kimbell's distributions. These and other forward-looking statements involve risks and uncertainties, including risks and uncertainties relating to Kimbell Royalty Operating, LLC's realized income and depletions deductions and production from the mineral and royalty interests owed by Kimbell Royalty Operating, LLC, Kimbell's business and the securities markets generally and other risks described in Kimbell's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission (the "SEC"), available at the SEC's website at www.sec.gov. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Kimbell's filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Except as required by law, Kimbell undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release.

Contact:
Rick Black
Dennard Lascar Investor Relations
krp@dennardlascar.com
(713) 529-6600

View original content:https://www.prnewswire.com/news-releases/kimbell-royalty-partners-declares-first-quarter-2022-distribution-301531312.html

SOURCE Kimbell Royalty Partners, LP

FAQ

What is the cash distribution declared by Kimbell Royalty Partners for Q1 2022?

Kimbell Royalty Partners declared a cash distribution of $0.47 per common unit for Q1 2022.

When will Kimbell Royalty Partners pay the Q1 2022 distribution?

The distribution will be payable on May 9, 2022, to common unitholders of record on May 2, 2022.

How much cash is Kimbell Royalty Partners using for debt reduction?

Kimbell plans to use 25% of the projected cash available for distribution to reduce its outstanding borrowings.

What is the total amount paid down under Kimbell Royalty Partners' credit facility since May 2020?

Kimbell has paid down approximately $52.5 million of outstanding borrowings since May 2020.

Is the distribution from Kimbell Royalty Partners subject to dividend income taxes?

The distribution is expected to be free of dividend income taxes, considered a return of capital.