UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (date of earliest event reported): October 25, 2019

 

 

Kimbell Royalty Partners, LP

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

1-38005

 

47-5505475

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(I.R.S. Employer
Identification No.)

 

777 Taylor Street, Suite 810
Fort Worth, Texas

 

76102

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (817) 945-9700

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

 

o       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to 12(b) of the Act:

 

Title of each class:

 

Trading symbol(s):

 

Name of each exchange on which
registered:

Common Units Representing Limited Partnership Interests

 

KRP

 

New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company               x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  x

 

 

 

 

Item 8.01.             Other Events.

 

On October 25, 2019, Kimbell Royalty Partners, LP announced that the board of directors of Kimbell Royalty GP, LLC, its general partner, declared a quarterly cash distribution of $0.42 per common unit for the quarter ended September 30, 2019. The distribution will be paid on November 11, 2019 to common unitholders of record at the close of business on November 4, 2019.

 

Item 9.01.             Financial Statements and Exhibits.

 

(d) Exhibits.

 

Number

 

Description

99.1

 

News release issued by Kimbell Royalty Partners, LP dated October 25, 2019

 

2

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

KIMBELL ROYALTY PARTNERS, LP

 

 

 

By:

Kimbell Royalty GP, LLC,

 

 

its general partner

 

 

 

 

By:

/s/ Matthew S. Daly

 

 

Matthew S. Daly

 

 

Chief Operating Officer

 

 

 

Date: October 25, 2019

 

 

 

3

Exhibit 99.1

 

 

Kimbell Royalty Partners Announces Third Quarter 2019 Distribution

 

FORT WORTH, Texas, October 25, 2019 — Kimbell Royalty Partners, LP (NYSE: KRP) (“Kimbell”), a leading owner of oil and natural gas mineral and royalty interests in more than 92,000 gross producing wells across 28 states, today announced that the Board of Directors of Kimbell Royalty GP, LLC, its general partner, has approved a cash distribution of $0.42 per common unit for the third quarter of 2019.  The distribution will be payable on November 11, 2019 to common unitholders of record at the close of business on November 4, 2019.  Kimbell has a distribution policy to pay out all available cash (as defined in its partnership agreement) each quarter. Kimbell’s distributions may vary based on certain factors including, but not limited to, the price of oil, natural gas and natural gas liquids and production from Kimbell’s royalty assets, as well as cash needed for debt service obligations, fixed charges and reserves for future operating or capital needs.

 

Kimbell Royalty Partners - Supplemental Distribution Data

 

 

 

 

 

 

 

Percent

 

 

 

Q2 19

 

Q3 19

 

Change

 

WTI Average Crude Oil Price (1)

 

$

59.78

 

$

56.37

 

(5.7

)%

Henry Hub Average Natural Gas Price (1)

 

$

2.56

 

$

2.38

 

(7.0

)%

 

 

 

 

 

 

 

 

 

 

Common Unit Distribution Declared

 

$

0.39

 

$

0.42

 

7.7

%

 

 

 

 

 

 

 

 

Annualized Cash Yield (2)

 

 

 

12.3

%

 

 

 

DISTRIBUTIONS TO COMMON UNITHOLDERS EXPECTED TO BE SUBSTANTIALLY FREE OF DIVIDEND
INCOME TAXES AND INSTEAD CONSIDERED A RETURN OF CAPITAL THROUGH 2022 (3)

 

(1)   Average commodity prices are from EIA. Crude oil prices are in dollars per barrel and natural gas prices are in dollars per million Btu.

(2)   Based on the closing price of Kimbell common units on October 25, 2019.

(3)   Moreover, less than 25% of the distributions paid to common unitholders for the subsequent three years (2023 to 2025) are expected to be taxable dividend income. Please refer to the press release issued on May 13, 2019 for more information concerning the expected federal income tax treatment of distributions to common unitholders.

 

 

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 13 million gross acres in 28 states and in every major onshore basin in the continental United States, including ownership in more than 92,000 gross producing 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. These forward-looking statements involve numerous risks and uncertainties, including risks and uncertainties relating to the tax treatment of our distributions, our business and the securities markets generally. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in our filings with the Securities and Exchange Commission (SEC), available at the SEC’s website at www.sec.gov.  Except as required by law, Kimbell Royalty Partners, LP undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this news release.  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release.

 

Contact:

 

Rick Black

Dennard Lascar Investor Relations

krp@dennardlascar.com

(713) 529-6600

 

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