Kimbell Royalty Partners Declares Fourth Quarter 2020 Distribution

Rhea-AI Summary

On January 22, 2021, Kimbell Royalty Partners (NYSE: KRP) announced a fourth-quarter 2020 cash distribution of $0.19 per common unit, representing 75% of projected cash available for distribution. The payment will be issued on February 8, 2021, to unitholders of record by February 1, 2021. Additionally, Kimbell plans to allocate 25% of the cash for distribution to reduce outstanding borrowings, having previously paid down $21.2 million in 2020. The average crude oil price was reported at $42.45, a 3.8% increase, while natural gas prices rose 26.5% to $2.53.

Positive

• Approved cash distribution of $0.19 per unit for Q4 2020.
• 75% of projected cash allocated for distribution, ensuring returns for investors.
• Kimbell reduced its borrowings by $21.2 million in 2020, showcasing financial management.

Negative

• None.

FORT WORTH, Texas, Jan. 22, 2021 /PRNewswire/ -- Kimbell Royalty Partners, LP (NYSE: KRP) ("Kimbell"), a leading owner of oil and natural gas mineral and royalty interests in more than 96,000 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 fourth quarter of 2020, or $0.19 per common unit.  The distribution will be payable on February 8, 2021 to common unitholders of record at the close of business on February 1, 2021.  Kimbell intends to utilize the remaining 25% of Q4 2020 projected cash available for distribution to pay down a portion of the outstanding borrowings under Kimbell's credit facility.  During 2020, Kimbell paid down $21.2 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
		Q3 2020		Q4 2020		Change
WTI Average Crude Oil Price(1)		$40.89		$42.45		3.8%
Henry Hub Average Natural Gas Price (1)		$2.00		$2.53		26.5%
Common Unit Distribution Declared		$0.19		$0.19		0.0%
Pay-Out Ratio (2)		75%		75%		0.0%
Annualized Cash Yield (3)				8.7%
Cash Received from Lease Bonuses and Other Income		$15,916		$31,927
SUBSTANTIALLY ALL OF THE DISTRIBUTION TO COMMON UNITHOLDERS FOR THE FOURTH QUARTER OF 2020
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 January 22, 2021.
(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 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 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

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SOURCE Kimbell Royalty Partners, LP

FAQ

What is the cash distribution amount declared by Kimbell Royalty Partners for Q4 2020?

Kimbell Royalty Partners declared a cash distribution of $0.19 per common unit for Q4 2020.

When will Kimbell Royalty Partners distribute the cash payment?

The distribution will be payable on February 8, 2021, to unitholders of record by February 1, 2021.

What percentage of projected cash will Kimbell distribute to common unitholders?

Kimbell plans to distribute 75% of the projected cash available for distribution for Q4 2020.

How much of Kimbell's outstanding borrowings did they pay down in 2020?

Kimbell paid down $21.2 million of outstanding borrowings in 2020.

What was the average crude oil price reported by Kimbell for Q4 2020?

The average crude oil price reported was $42.45.

What was the average natural gas price reported for Kimbell in Q4 2020?

The average natural gas price reported was $2.53, a 26.5% increase.