Kimbell Royalty Partners, LP - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Kimbell Royalty Partners, LP on November 16, 2021. The Partnership is an emerging growth company incorporated in Delaware, with its principal executive offices in Fort Worth, Texas. The report addresses a specific corporate event regarding the redemption of preferred securities.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or margin data. The primary financial metric disclosed relates to a capital transaction:
- Redemption Price: Approximately $31 million.
- Securities Affected: 25,000 Series A Cumulative Convertible Preferred Units (representing 100% of the outstanding Preferred Units issued in 2018).
- Redemption Date: December 7, 2021.
Material Changes
The material change reported is the irrevocable notice of redemption delivered to holders of the Series A Cumulative Convertible Preferred Units. This action will result in the complete retirement of the Preferred Units originally issued in 2018, removing this specific class of equity from the Partnership's capital structure.
Outlook, Risks, and Management Commentary
Management notes that the redemption is based on current expectations and reasonable assumptions. The filing includes standard forward-looking statement disclaimers, highlighting that actual results may differ due to various factors, including:
- Terms of the redemption.
- Other sources and uses of funds.
- Actions by holders of Preferred Units.
- Results of operations and market conditions.
- Capital needs and uses.
The report explicitly states it does not constitute a formal notice of redemption or an offer to purchase or sell securities.
Key Facts for Investor Verification
- Verify the final settlement of the approximately $31 million redemption on December 7, 2021.
- Confirm the impact of this redemption on the Partnership's liquidity and cash reserves.
- Review the Partnership's Annual Report on Form 10-K for the year ended December 31, 2020, for detailed risk factors and historical financial context.
- Monitor subsequent filings for any changes in the capital structure following the removal of the Series A Preferred Units.