Kimbell Royalty Partners (KRP) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Entity Registrant Name	Kimbell Royalty Partners, LP
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Central Index Key	0001657788
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Units
Entity Common Stock, Shares Outstanding		36,602,811
Class B
Entity Common Stock, Shares Outstanding		23,141,181

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 14,480,867	$ 14,204,250
Oil, natural gas and NGL receivables	14,257,713	19,170,762
Commodity derivative assets	7,339,322	687,933
Accounts receivable and other current assets	585,853	76,868
Total current assets	36,663,755	34,139,813
Property and equipment, net	1,297,203	1,327,057
Investment in affiliate (equity method)	4,372,757	2,952,264
Oil and natural gas properties
Oil and natural gas properties, using full cost method of accounting ($188,054,927 and $275,041,784 excluded from depletion at March 31, 2010 and December 31, 2019, respectively)	1,033,552,717	1,033,355,017
Less: accumulated depreciation, depletion and impairment	(413,039,389)	(328,913,425)
Total oil and natural gas properties, net	620,513,328	704,441,592
Deposits on oil and natural gas properties	9,681,408
Right-of-use assets, net	3,332,164	3,399,634
Commodity derivative assets	2,444,040	116,568
Loan origination costs, net	1,950,808	2,217,126
Total assets	680,255,463	748,594,054
Current liabilities
Accounts payable	757,157	1,207,736
Other current liabilities	3,421,985	4,231,579
Total current liabilities	4,179,142	5,439,315
Operating lease liabilities, excluding current portion	3,057,156	3,124,416
Long-term debt	101,223,602	100,135,477
Total liabilities	108,459,900	108,699,208
Commitments and contingencies (Note 15)
Mezzanine equity:
Series A preferred units (55,000 and 110,000 units issued and outstanding as of March 31, 2020 and December 31, 2019, respectively)	40,819,707	74,909,732
Unitholders' equity:
Common units (34,378,849 units issued and outstanding as of March 31, 2020 and 23,518,652 units issued and outstanding as of December 31, 2019)	367,263,993	282,549,841
Class B units (20,644,047 units issued and outstanding as of March 31, 2020 and 25,557,606 units issued and outstanding as of December 31, 2019)	1,032,202	1,277,880
Total unitholders' equity	368,296,195	283,827,721
Noncontrolling interest	162,679,661	281,157,393
Total equity	530,975,856	564,985,114
Total liabilities, mezzanine equity and unitholders' equity	$ 680,255,463	$ 748,594,054

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Oil and natural gas properties excluded from depletion	$ 188,054,927	$ 275,041,784
Temporary equity, issued (in units)	55,000	110,000
Temporary equity, outstanding (in units)	55,000	110,000
Common units, issued (in units)	34,378,849	23,518,652
Common units, outstanding (in units)	34,378,849	23,518,652
Class B units, issued (in units)	20,644,047	25,557,606
Class B units, outstanding (in units)	20,644,047	25,557,606

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Gain (loss) on commodity derivative instruments	$ 10,132,613	$ (4,969,790)
Total revenues	35,947,371	17,947,209
Costs and expenses
Production and ad valorem taxes	1,621,743	1,596,394
Depreciation and depletion expense	13,270,683	10,281,008
Impairment of oil and natural gas properties	70,925,731	2,802,198
Marketing and other deductions	2,131,552	1,857,043
General and administrative expense	6,524,311	5,333,366
Total costs and expenses	94,474,020	21,870,009
Operating loss	(58,526,649)	(3,922,800)
Other income (expense)
Equity income in affiliate	163,554
Interest expense	(1,421,304)	(1,422,563)
Net loss before income taxes	(59,784,399)	(5,345,363)
Net loss	(59,784,399)	(5,345,363)
Distribution and accretion on Series A preferred units	(3,076,684)	(3,469,584)
Net loss and distributions and accretion on Series A preferred units attributable to noncontrolling interests	23,584,856	5,151,509
Distribution on Class B units	(24,807)	(23,814)
Net loss attributable to common units	$ (39,301,034)	$ (3,687,252)
Net loss attributable to common units
Net loss attributable to common units per unit (basic) (in dollar per share)	$ (1.29)	$ (0.21)
Net loss attributable to common units per unit (diluted) (in dollar per share)	$ (1.29)	$ (0.21)
Weighted average number of common units outstanding
Weighted average number of common units outstanding Basic (in units)	30,528,819	17,971,300
Weighted average number of common units outstanding Diluted (in units)	30,528,819	17,971,300
Oil, natural gas and NGL revenues
Revenue	$ 25,585,439	$ 22,833,393
Lease bonus and other income
Revenue	$ 229,319	$ 83,606

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN UNITHOLDERS' EQUITY - USD ($)	Limited PartnersCommon Units	Limited PartnersClass B Common Units	Non Controlling Interest	Total
Unitholders' capital, beginning balance at Dec. 31, 2018	$ 299,821,901	$ 972,663	$ 291,932,233	$ 592,726,797
Unitholders' capital, beginning balance (in units) at Dec. 31, 2018	18,056,487	19,453,258
Increase (Decrease) in Unitholders' Capital
Units issued for Acquisition		$ 470,000	171,550,000	172,020,000
Units issued for Acquisition (in units)		9,400,000
Conversion of Class B units to common units	$ 23,507,402	$ (71,946)	(23,507,402)	(71,946)
Conversion of Class B units to common units (in units)	1,438,916	(1,438,916)
Unit-based compensation	$ 1,770,410			1,770,410
Unit-based compensation (in units)		27,414,342
Distributions to unitholders	(7,798,161)		(7,205,737)	(15,003,898)
Distribution and accretion on Series A preferred units	(1,441,938)		(2,027,646)	(3,469,584)
Distribution on Class B units	(23,814)			(23,814)
Net loss	(2,221,500)		(3,123,863)	(5,345,363)
Unitholders' capital, ending balance at Mar. 31, 2019	$ 313,614,300	$ 1,370,717	427,617,585	742,602,602
Unitholders' capital, ending balance (in units) at Mar. 31, 2019	19,495,403
Unitholders' capital, beginning balance at Dec. 31, 2019	$ 282,549,841	$ 1,277,880	281,157,393	$ 564,985,114
Unitholders' capital, beginning balance (in units) at Dec. 31, 2019	23,518,652	25,557,606		23,518,652
Increase (Decrease) in Unitholders' Capital
Common units issued	$ 73,601,668			$ 73,601,668
Common units issued for equity offering (in units)	5,000,000
Conversion of Class B units to common units	$ 75,578,037	$ (245,678)	(75,578,037)	(245,678)
Conversion of Class B units to common units (in units)	4,913,559	(4,913,559)
Redemption of Series A preferred units	$ (16,150,018)		(9,697,873)	(25,847,891)
Unit-based compensation	$ 2,107,587			2,107,587
Unit-based compensation (in units)	946,638
Distributions to unitholders	$ (11,122,088)		(9,616,966)	(20,739,054)
Distribution and accretion on Series A preferred units	(1,922,344)		(1,154,340)	(3,076,684)
Distribution on Class B units	(24,807)			(24,807)
Net loss	(37,353,883)		(22,430,516)	(59,784,399)
Unitholders' capital, ending balance at Mar. 31, 2020	$ 367,263,993	$ 1,032,202	$ 162,679,661	$ 530,975,856
Unitholders' capital, ending balance (in units) at Mar. 31, 2020	34,378,849	20,644,047		34,378,849

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (59,784,399)	$ (5,345,363)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and depletion expense	13,270,683	10,281,008
Impairment of oil and natural gas properties	70,925,731	2,802,198
Amortization of right-of-use assets	67,470	11,204
Amortization of loan origination costs	266,318	257,727
Equity income in affiliate	(163,554)
Unit-based compensation	2,107,587	1,770,410
(Gain) loss on commodity derivative instruments, net of settlements	(8,978,861)	5,165,884
Changes in operating assets and liabilities:
Oil, natural gas and NGL receivables	4,913,049	1,294,164
Accounts receivable and other current assets	(508,985)	(492,900)
Accounts payable	(450,579)	(692,149)
Other current liabilities	(809,594)	776,928
Operating lease liabilities	(67,260)	(16,779)
Net cash provided by operating activities	20,787,606	15,812,332
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(40,596)	(335,353)
Purchase of oil and natural gas properties	(197,700)	(503,079)
Deposits on oil and natural gas properties	(9,681,408)
Investment in affiliate	(1,274,900)
Cash distribution from equity method investee	17,961
Net cash used in investing activities	(11,176,643)	(838,432)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from equity offering	73,601,668
Contributions from Class B unitholders		470,000
Redemption of Class B contributions on converted units	(245,678)	(9,862)
Issuance costs paid on Series A preferred units		(717,612)
Redemption on Series A preferred units	(61,089,600)
Distributions to common unitholders	(11,122,088)	(7,798,161)
Distribution to OpCo unitholders	(9,616,966)	(7,205,737)
Distributions on Series A preferred units	(1,925,000)	(1,925,000)
Distributions to Class B unitholders	(24,807)	(18,014)
Borrowings on long-term debt	71,088,125
Repayments on long-term debt	(70,000,000)
Net cash used in financing activities	(9,334,346)	(17,204,386)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	276,617	(2,230,486)
CASH AND CASH EQUIVALENTS, beginning of period	14,204,250	15,773,987
CASH AND CASH EQUIVALENTS, end of period	14,480,867	13,543,501
Supplemental cash flow information:
Cash paid for interest	1,126,666	1,502,161
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease liabilities		609,486
Units issued in exchange for oil and natural gas properties		171,550,000
Non-cash deemed distribution to Series A preferred units	1,151,684	1,544,584
Noncash effect of Series A preferred unit redemption	$ 25,847,891
Distribution to Class B unitholders in accounts payable		23,814
Redemption of Class B contributions on converted units in accounts payable		62,084
Capital expenditures and consideration payable included in accounts payable and other liabilities		$ 35,382

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2020
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	Unless the context otherwise requi NOTE 1—ORGANIZATION Organization Kimbell Royalty Partners, LP is a Delaware limited partnership formed in 2015 to own and acquire mineral and royalty interests in oil and natural gas properties throughout the United States. Effective as of September 24, 2018, the Partnership has elected to be taxed as a corporation for United States federal income tax purposes. As an owner of mineral and royalty interests, the Partnership is entitled to a portion of the revenues received from the production of oil, natural gas and associated natural gas liquids (“NGL”) from the acreage underlying its interests, net of post-production expenses and taxes. The Partnership is not obligated to fund drilling and completion costs, lease operating expenses or plugging and abandonment costs at the end of a well’s productive life. The Partnership’s primary business objective is to provide increasing cash distributions to unitholders resulting from acquisitions from third parties, its Sponsors and the Contributing Parties and from organic growth through the continued development by working interest owners of the properties in which it owns an interest. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. As a result, the accompanying unaudited interim condensed consolidated financial statements do not include all disclosures required for complete annual financial statements prepared in conformity with GAAP. Accordingly, the accompanying unaudited interim condensed consolidated financial statements and related notes should be read in conjunction with the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2019, which contains a summary of the Partnership’s significant accounting policies and other disclosures. In the opinion of the Partnership’s management, the unaudited interim condensed consolidated financial statements contain all adjustments necessary to fairly present the financial position and results of operations for the interim periods in accordance with GAAP and all adjustments are of a normal recurring nature. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year. Preparation of the Partnership’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and notes. Actual results could differ from those estimates. Segment Reporting The Partnership operates in a single operating and reportable segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The Partnership’s chief operating decision maker allocates resources and assesses performance based upon financial information of the Partnership as a whole.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies For a description of the Partnership’s significant accounting policies, see Note 2 of the consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2019, as well as the items noted below. There have been no substantial changes in such policies or the application of such policies during the three months ended March 31, 2020, other than those discussed below in Recently Adopted Accounting Pronouncements. Reclassification of Prior Period Presentation Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on previously reported net income (loss), total cash flows from operations or working capital. New Accounting Pronouncements Recently Adopted Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. The Partnership adopted this update on January 1, 2020 and applied it prospectively. The adoption of this update did not have a material impact on the Partnership’s results of operations for the three months ended March 31, 2020. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the currently required incurred loss approach with an expected loss model for instruments measured at amortized cost. The Partnership adopted this update using the modified retrospective approach, effective January 1, 2020. The adoption of this update did not have a material impact on the Partnership’s results of operations for the three months ended March 31, 2020. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” that is expected to reduce cost and complexity related to accounting for income taxes. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Partnership is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact on its financial position, results of operations or liquidity.

ACQUISITIONS AND JOINT VENTURES

ACQUISITIONS AND JOINT VENTURES	3 Months Ended
	Mar. 31, 2020
ACQUISITIONS AND JOINT VENTURES
ACQUISITIONS And JOINT VENTURES	NOTE 3—ACQUISITIONS AND JOINT VENTURES Acquisitions On March 25, 2019, the Partnership acquired all of the equity interests in subsidiaries of PEP I Holdings, LLC, PEP II Holdings, LLC and PEP III Holdings, LLC that own oil and natural gas mineral and royalty interests (the “Phillips Acquisition”). The aggregate consideration for the Phillips Acquisition consisted of 9,400,000 common units of the Operating Company (“OpCo common units”) and an equal number of Class B units representing limited partner interests of the Partnership (“Class B units”) . The Class B units and OpCo common units are exchangeable together into an equal number of common units representing limited partner interests in the Partnership (“common units”) . The assets acquired in the Phillips Acquisition consisted of approximately 866,528 gross acres and 12,210 net royalty acres. Joint Ventures The Partnership has partial ownership in a joint venture (the “Joint Venture”) with Springbok SKR Capital Company, LLC and Rivercrest Capital Partners, LP, a related party. The Partnership’s ownership in the Joint Venture is 49.3% and its total capital commitment will not exceed $15.0 million. The Joint Venture is managed by Springbok Operating Company, LLC. The purpose of the Joint Venture is to make direct or indirect investments in royalty, mineral and overriding royalty interests and similar non-cost bearing interests in oil and gas properties, excluding leasehold or working interests. The Partnership currently utilizes the equity method of accounting for its investment in the Joint Venture. As of March 31, 2020, the Partnership has paid approximately $4.2 million under its capital commitment.

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2020
DERIVATIVES
DERIVATIVES	NOTE 4—DERIVATIVES The Partnership’s ongoing operations expose it to changes in the market price for oil and natural gas. To mitigate the inherent commodity price risk associated with its operations, the Partnership uses oil and natural gas commodity derivative financial instruments. From time to time, such instruments may include variable-to-fixed-price swaps, costless collars, fixed-price contracts, and other contractual arrangements. The Partnership enters into oil and natural gas derivative contracts that contain netting arrangements with each counterparty. As of March 31, 2020 , the Partnership’s commodity derivative contracts consisted of fixed price swaps, under which the Partnership receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. The Partnership hedges its daily production based on the amount of debt and/or preferred equity as a percent of its enterprise value. As of March 31, 2020, this amount constitutes approximately 19% of daily oil and natural gas production. The Partnership’s oil fixed price swap transactions are settled based upon the average daily prices for the calendar month of the contract period, and its natural gas fixed price swap transactions are settled based upon the last day settlement of the first nearby month futures contract of the contract period. Settlement for oil derivative contracts occurs in the succeeding month and natural gas derivative contracts are settled in the production month. The Partnership has not designated any of its derivative contracts as hedges for accounting purposes. The Partnership records all derivative contracts at fair value. Changes in the fair values of the Partnership’s derivative instruments are recognized as gains or losses in the current period and are presented on a net basis in the accompanying unaudited condensed consolidated statements of operations. Changes in fair value consisted of the following: Three Months Ended March 31, 2020 2019 Beginning fair value of commodity derivative instruments $ 804,501 $ 4,227,946 Gain (loss) on commodity derivative instruments 10,132,613 (4,969,790) Net cash received on settlements of derivative instruments (1,153,752) (196,094) Ending fair value of commodity derivative instruments $ 9,783,362 $ (937,938) The following table presents the fair value of the Partnership’s derivative contracts as of March 31, 2020 and December 31, 2019: March 31, December 31, Classification Balance Sheet Location 2020 2019 Assets: Current asset Commodity derivative assets $ 7,339,322 $ 687,933 Long-term asset Commodity derivative assets 2,444,040 116,568 Liabilities: Current liability Commodity derivative liabilities — — Long-term liability Commodity derivative liabilities — — $ 9,783,362 $ 804,501 As of March 31, 2020, the Partnership’s open commodity derivative contracts consisted of the following: Oil Price Swaps Notional Weighted Average Range (per Bbl) Volumes (Bbl) Fixed Price (per Bbl) Low High March 2020 - December 2020 187,516 $ 54.55 $ 50.45 $ 61.43 January 2021 - December 2021 238,307 $ 53.49 $ 50.79 $ 56.10 January 2022 - March 2022 71,730 $ 35.65 $ 35.65 $ 35.65 Natural Gas Price Swaps Notional Weighted Average Range (per MMBtu) Volumes (MMBtu) Fixed Price (per MMBtu) Low High April 2020 - December 2020 2,620,719 $ 2.55 $ 2.51 $ 2.63 January 2021 - December 2021 3,503,617 $ 2.49 $ 2.33 $ 2.85 January 2022 - March 2022 972,900 $ 2.54 $ 2.54 $ 2.54

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2020
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 5—FAIR VALUE MEASUREMENTS The Partnership measures and reports certain assets and liabilities on a fair value basis and has classified and disclosed its fair value measurements using the levels of the fair value hierarchy noted below. The carrying values of cash, oil, natural gas and NGL receivables, accounts receivable and other current assets and current and long-term liabilities included in the unaudited condensed consolidated balance sheets approximated fair value as of March 31, 2020 and December 31, 2019 due to their short-term duration and variable interest rates that approximate prevailing interest rates as of each reporting period. As a result, these financial assets and liabilities are not discussed below. · Level 1— Unadjusted quoted market prices for identical assets or liabilities in active markets. · Level 2—Quoted prices for similar assets or liabilities in non-active markets, or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3—Measurement based on prices or valuations models that require inputs that are both unobservable and significant to the fair value measurement (including the Partnership’s own assumptions in determining fair value). Assets and liabilities that are measured at fair value are classified based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Partnership recognizes transfers between fair value hierarchy levels as of the end of the reporting period in which the event or change in circumstances causing the transfer occurred. The Partnership did not have any transfers between Level 1, Level 2 or Level 3 fair value measurements during the three months ended March 31, 2020 and 2019. The Partnership’s commodity derivative instruments are classified within Level 2. The fair values of the Partnership’s oil and natural gas fixed price swaps are based upon inputs that are either readily available in the public market, such as oil and natural gas futures prices, volatility factors and discount rates, or can be corroborated from active markets. The following tables summarize the Partnership’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy: Fair Value Measurements Using Level 1 Level 2 Level 3 Effect of Counterparty Netting Total March 31, 2020 Assets Commodity derivative contracts $ — $ 9,783,362 $ — $ — $ 9,783,362 December 31, 2019 Assets Commodity derivative contracts $ — $ 804,501 $ — $ — $ 804,501

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	3 Months Ended
	Mar. 31, 2020
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES	NOTE 6—OIL AND NATURAL GAS PROPERTIES Oil and natural gas properties consist of the following: March 31, December 31, 2020 2019 Oil and natural gas properties Proved properties $ 845,497,790 $ 758,313,233 Unevaluated properties 188,054,927 275,041,784 Less: accumulated depreciation, depletion and impairment (413,039,389) (328,913,425) Total oil and natural gas properties $ 620,513,328 $ 704,441,592 Costs associated with unevaluated properties are excluded from the full cost pool until a determination as to the existence of proved reserves is able to be made. The Partnership assesses all items classified as unevaluated property on a periodic basis for possible impairment. The Partnership assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: economic and market conditions; operators’ intent to drill; remaining lease term; geological and geophysical evaluations; operators’ drilling results and activity; the assignment of proved reserves; and the economic viability of operator development if proved reserves are assigned. During any period in which these factors indicate an impairment, all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to amortization and to the full cost ceiling test. At March 31, 2020, the Partnership transferred $48.6 million to the full cost pool, which is included in the impairment charge disclosed below. The Partnership recorded an impairment on its oil and natural gas properties of $70.9 million and $2.8 million during the three months ended March 31, 2020 and 2019, respectively. The impairment recorded during the three months ended March 31, 2020 was due to the recent significant decline in oil and natural gas prices, as well as longer-term commodity price outlooks related to reduced demand for oil and natural gas as a result of the coronavirus (“COVID-19”) pandemic and other supply factors. After evaluating these external factors, the Partnership determined that significant drilling uncertainty existed regarding its proved undeveloped (“PUD”) reserves that were included in its total estimated proved reserves as of December 31, 2019, as well as its unevaluated oil and natural gas properties. Specifically, with respect to the Partnership’s PUD reserves (which accounted for approximately 6.1% of total estimated proved reserves as of December 31, 2019), the Partnership determined that it did not have reasonable certainty as to the timing of the development of the PUD reserves and, therefore, recorded an impairment on such properties. The Partnership similarly recorded an impairment on the value of its unevaluated oil and natural gas properties, which primarily were acquired in various acquisitions since its initial public offering. The Partnership intends not to book PUD reserves going forward. The impairment recorded for the three months ended March 31, 2019 was primarily a result of a decline in the 12-month average price of oil and natural gas.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2020
LEASES
LEASES	NOTE 7—LEASES Substantially all of the Partnership’s leases are long-term operating leases with fixed payment terms and will terminate in October 2028. The Partnership’s right-of-use (“ROU”) operating lease assets represent its right to use an underlying asset for the lease term, and its operating lease liabilities represent its obligation to make lease payments. ROU operating lease assets and operating lease liabilities are included in the accompanying unaudited condensed consolidated balance sheets. Short term operating lease liabilities are included in other current liabilities. The weighted average remaining lease term as of March 31, 2020 is 9.08 years. Both the ROU operating lease assets and liabilities are recognized at the present value of the remaining lease payments over the lease term and do not include lease incentives. The Partnership’s leases do not provide an implicit rate that can readily be determined; therefore, the Partnership used a discount rate based on its incremental borrowing rate, which is determined by the information available in the secured revolving credit facility. The incremental borrowing rate reflects the estimated rate of interest that the Partnership would pay to borrow, on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. The weighted average discount rate used for the operating lease was 6.75% for the three months ended March 31, 2020. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administrative expense in the accompanying unaudited condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019. The total operating lease expense recorded for the three months ended March 31, 2020 and 2019 was not material. Currently, the most substantial contractual arrangements that the Partnership has classified as operating leases are the main office spaces used for operations. In July 2019, the Partnership became the lessee in several other related lease agreements for additional office space. In addition, the Partnership was involved in the construction and design of the underlying assets. Future minimum lease commitments as of March 31, 2020 were as follows: Total 2020 2021 2022 2023 2024 Thereafter Operating leases $ 4,512,876 $ 363,164 $ 480,025 $ 478,837 $ 480,579 $ 486,323 $ 2,223,948 Less: Imputed Interest (1,187,477) Total $ 3,325,399

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2020
LONG-TERM DEBT.
LONG-TERM DEBT	NOTE 8—LONG-TERM DEBT The Partnership maintains a secured revolving credit facility that is secured by substantially all of its assets, the Operating Company’s assets and the assets of their wholly owned subsidiaries. Availability under the secured revolving credit facility equals the lesser of the aggregate maximum commitments of the lenders and the borrowing base. Total commitments under the secured revolving credit facility are set at $225.0 million, and the borrowing base is set at $300.0 million. The secured revolving credit facility permits aggregate commitments under the secured revolving credit facility to be increased to up to $500.0 million, subject to the limitations of the Partnership’s borrowing base and the satisfaction of certain conditions and the procurement of additional commitments from new or existing lenders. The borrowing base will be redetermined semiannually on or about May 1 and November 1 of each year based on the value of the Partnership’s oil and natural gas properties and the oil and natural gas properties of the Partnership’s wholly owned subsidiaries. In connection with the November 1, 2019 redetermination under the secured revolving credit facility, the borrowing base was reaffirmed at $300.0 million and total commitments will remain at $225.0 million. The May borrowing base redetermination is currently being conducted and is expected to be finalized by the end of May 2020. The secured revolving credit facility matures on February 8, 2022. The Partnership intends to request from its lenders an amendment to extend the term of the secured revolving credit facility beyond the current maturity date prior to March 31, 2021. The secured revolving credit facility contains various affirmative, negative and financial maintenance covenants. These covenants limit the Partnership’s ability to, among other things, incur or guarantee additional debt, make distributions on, or redeem or repurchase, common units, make certain investments and acquisitions, incur certain liens or permit them to exist, enter into certain types of transactions with affiliates, merge or consolidate with another company and transfer, sell or otherwise dispose of assets. The secured revolving credit facility also contains covenants requiring the Partnership to maintain the following financial ratios or to reduce the Partnership’s indebtedness if the Partnership is unable to comply with such ratios: (i) a Debt to EBITDAX Ratio (as defined in the secured revolving credit facility) of not more than 4.0 to 1.0 and (ii) a ratio of current assets to current liabilities of not less than 1.0 to 1.0. The secured revolving credit facility also contains customary events of default, including non‑payment, breach of covenants, materially incorrect representations, cross‑default, bankruptcy and change of control. During the three months ended March 31, 2020, the Partnership borrowed an additional $71.1 million under the secured revolving credit facility and repaid approximately $70.0 million of the outstanding borrowings. As of March 31, 2020, the Partnership’s outstanding balance was $101.2 million. The Partnership was in compliance with all covenants included in the secured revolving credit facility as of March 31, 2020. As of March 31, 2020, borrowings under the secured revolving credit facility bore interest at LIBOR plus a margin of 2.25% or Prime Rate (as defined in the secured revolving credit facility) plus a margin of 1.25%. For the three months ended March 31, 2020, the weighted average interest rate on the Partnership’s outstanding borrowings was 4.70%.

PREFERRED UNITS

PREFERRED UNITS	3 Months Ended
	Mar. 31, 2020
PREFERRED UNITS
PREFERRED UNITS	NOTE 9—PREFERRED UNITS In July 2018 the Partnership completed the private placement of 110,000 Series A preferred units to certain affiliates of Apollo Capital Management, L.P. (the “Series A Purchasers”) for $1,000 per Series A preferred unit, resulting in gross proceeds to the Partnership of $110.0 million. Until the conversion of the Series A preferred units into common units or their redemption, holders of the Series A preferred units are entitled to receive cumulative quarterly distributions equal to 7.0% per annum plus accrued and unpaid distributions. In connection with the issuance of the Series A preferred units, the Partnership granted holders of the Series A preferred units board observer rights beginning on the third anniversary of the original issuance date, and board appointment rights beginning the fourth anniversary of the original issuance date and in the case of events of default with respect to the Series A preferred units. The Series A preferred units are convertible by the Series A Purchasers after two years at a 30% discount to the issue price, subject to certain conditions. The Partnership may redeem the Series A preferred units at any time. The Series A preferred units may be redeemed for a cash amount per Series A preferred unit equal to the product of (a) the number of outstanding Series A preferred units multiplied by (b) the greatest of (i) an amount (together with all prior distributions made in respect of such Series A preferred unit) necessary to achieve the Minimum IRR (as defined below), (ii) an amount (together with all prior distributions made in respect of such Series A preferred unit) necessary to achieve a return on investment equal to 1.2 times with respect to such Series A p referred unit and (iii) the Series A issue price plus accrued and unpaid distributions. For purposes of the Series A preferred units , “Minimum IRR” means as of any measurement date: (a) prior to the fifth anniversary of the July 12, 2018 (the “Series A Issuance Date”), a 13.0% internal rate of return with respect to the Series A preferred units; (b) on or after the fifth anniversary of the Series A Issuance Date and prior to the sixth anniversary of the Series A Issuance Date, a 14.0% internal rate of return with respect to the Series A preferred units; and (c) on or after the sixth anniversary of the Series A Issuance Date, a 15.0% internal rate of return with respect to the Series A preferred units. On February 12, 2020, the Partnership completed the redemption of 55,000 Series A preferred units, representing 50% of the then-outstanding Series A preferred units. The Series A preferred units were redeemed at a price of $1,110.72 per Series A preferred unit for an aggregate redemption price of $61.1 million. As the consideration transferred by the Partnership to redeem the Series A preferred units was greater than 50% of the carrying value of the Series A preferred units as of the redemption date and 50% of the original intrinsic value of the beneficial conversion feature, a deemed dividend distribution of $5.7 million was taken directly to unitholders’ equity and non-controlling interest during the three months ended March 31, 2020. The following table summarizes the changes in the number of the Series A preferred units: Series A Preferred Units Balance at December 31, 2019 110,000 Redemption of Series A preferred units (55,000) Balance at March 31, 2020 55,000

UNITHOLDERS' EQUITY AND PARTNER

UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS	3 Months Ended
	Mar. 31, 2020
UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS
UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS	NOTE 10—UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS The Partnership has limited partner units. As of March 31, 2020, the Partnership had a total of 34,378,849 common units issued and outstanding and 20,644,047 Class B units outstanding. In January 2020, the Partnership completed an underwritten public offering of 5,000,000 common units for net proceeds of approximately $73.6 million (the “2020 Equity Offering”). The Partnership used the net proceeds from the 2020 Equity Offering to purchase OpCo common units. The Operating Company in turn used the net proceeds to repay approximately $70.0 million of the outstanding borrowings under the Partnership’s secured revolving credit facility. In connection with the 2020 Equity Offering, certain selling unitholders sold 750,000 common units pursuant to the exercise of the underwriters’ option to purchase additional common units. The Partnership did not receive any proceeds from the sale of the common units by the selling unitholders. The following table summarizes the changes in the number of the Partnership’s common units: Common Units Balance at December 31, 2019 23,518,652 Common units issued for equity offering 5,000,000 Conversion of Class B units 4,913,559 Common units issued under the LTIP (1) 946,638 Balance at March 31, 2020 34,378,849 (1) Includes restricted units granted to certain employees, directors and consultants under the Kimbell Royalty GP, LLC 2017 Long-Term Incentive Plan (as amended, the “LTIP”) on February 28, 2020. The following table presents information regarding the common unit cash distributions approved by the General Partner’s Board of Directors (the “Board of Directors”) for the periods presented: Amount per Date Unitholder Payment Common Unit Declared Record Date Date Q1 2020 $ 0.17 April 24, 2020 May 4, 2020 May 11, 2020 Q1 2019 $ 0.37 April 26, 2019 May 6, 2019 May 13, 2019 The following table summarizes the changes in the number of the Partnership’s Class B units: Class B Units Balance at December 31, 2019 25,557,606 Conversion of Class B units (4,913,559) Balance at March 31, 2020 20,644,047 For each Class B unit issued, five cents has been paid to the Partnership as additional consideration (the “Class B Contribution”). Holders of the Class B units, are entitled to receive cash distributions equal to 2.0% per quarter on their respective Class B Contribution, subsequent to distributions on the Series A preferred units but prior to distributions on the common units and OpCo common units. The Class B units and OpCo common units are exchangeable together into an equal number of common units of the Partnership.

EARNINGS (LOSS) PER UNIT

EARNINGS (LOSS) PER UNIT	3 Months Ended
	Mar. 31, 2020
EARNINGS (LOSS) PER UNIT
EARNINGS (LOSS) PER UNIT	NOTE 11—EARNINGS (LOSS) PER UNIT Basic earnings (loss) per unit (“EPU”) is calculated by dividing net income (loss) attributable to common units by the weighted-average number of common units outstanding during the period. Diluted net income (loss) per common unit gives effect, when applicable, to unvested restricted units granted under the Partnership’s LTIP for its employees, directors and consultants and potential conversion of Class B units. The following table summarizes the calculation of weighted average common units outstanding used in the computation of diluted earnings (loss) per unit: Three Months Ended March 31, 2020 2019 Net loss attributable to common units $ (39,301,034) $ (3,687,252) Weighted average number of common units outstanding: Basic 30,528,819 17,971,300 Effect of dilutive securities: Series A preferred units — — Class B units — — Restricted units — — Diluted 30,528,819 17,971,300 Net loss attributable to common units Basic $ (1.29) $ (0.21) Diluted $ (1.29) $ (0.21) The calculation of diluted net loss per unit for the three months ended March 31, 2020 excludes the conversion of Series A preferred units to common units, the conversion of Class B units to common units and 1,686,117 of unvested restricted units because their inclusion in the calculation would be anti-dilutive. The calculation of diluted net loss per unit for the three months ended March 31, 2019 excludes the conversion of Series A preferred units to common units, the conversion of Class B units to common units and 1,157,924 unvested restricted units because their inclusion in the calculation would be anti-dilutive.

UNIT-BASED COMPENSATION

UNIT-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2020
UNIT-BASED COMPENSATION
UNIT-BASED COMPENSATION	NOTE 12—UNIT-BASED COMPENSATION On September 23, 2018, the General Partner entered into the First Amendment to the LTIP, which increased the number of common units eligible for issuance under the LTIP by 2,500,000 common units for a total of 4,541,600 common units. The Partnership’s LTIP authorizes grants to its employees, directors and consultants. The restricted units issued under the Partnership’s LTIP generally vest in one-third installments on each of the first three anniversaries of the grant date, subject to the grantee’s continuous service through the applicable vesting date. Compensation expense for such awards will be recognized over the term of the service period on a straight-line basis over the requisite service period for the entire award. Management elects not to estimate forfeiture rates and to account for forfeitures in compensation cost when they occur. Compensation expense for consultants is treated in the same manner as that of the employees and directors. Distributions related to the restricted units are paid concurrently with the Partnership’s distributions for common units. The fair value of the Partnership’s restricted units issued under the LTIP to the Partnership’s employees, directors and consultants is determined by utilizing the market value of the Partnership’s common units on the respective grant date. The following table presents a summary of the Partnership’s unvested restricted units. Weighted Weighted Average Average Grant-Date Remaining Fair Value Contractual Units per Unit Term Unvested at December 31, 2019 739,479 $ 18.059 1.335 years Awarded 946,638 11.540 — Unvested at March 31, 2020 1,686,117 $ 14.399 2.297 years

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 13—RELATED PARTY TRANSACTIONS The Partnership currently has a management services agreement with Kimbell Operating, which has separate services agreements with each of BJF Royalties, LLC (“BJF Royalties”), K3 Royalties, LLC (“K3 Royalties”), Nail Bay Royalties, LLC (“Nail Bay Royalties”) and Duncan Management, LLC (“Duncan Management”), pursuant to which they and Kimbell Operating provide management, administrative and operational services to the Partnership. In addition, under each of their respective services agreements, affiliates of the Partnership’s Sponsors may identify, evaluate and recommend to the Partnership acquisition opportunities and negotiate the terms of such acquisitions. Amounts paid to Kimbell Operating and such other entities under their respective services agreements will reduce the amount of cash available for distribution to the Partnership’s unitholders. During the three months ended March 31, 2020, no monthly services fee was paid to BJF Royalties. During the three months ended March 31, 2020, the Partnership made payments to K3 Royalties, Nail Bay Royalties and Duncan Management in the amount of $30,000, $66,054 and $140,364, respectively. Certain consultants who provide services under management services agreements are granted restricted units under the Partnership’s LTIP.

ADMINISTRATIVE SERVICES

ADMINISTRATIVE SERVICES	3 Months Ended
	Mar. 31, 2020
ADMINISTRATIVE SERVICES
ADMINISTRATIVE SERVICES	NOTE 14—ADMINISTRATIVE SERVICES The Partnership relies upon its officers, directors, Sponsors and outside consultants to further its business operations. The Partnership also hires independent contractors and consultants involved in land, technical, regulatory and other disciplines to assist its officers and directors. See Note 13―Related Party Transactions.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2020
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	NOTE 15—COMMITMENTS AND CONTINGENCIES During the normal course of business, the Partnership may experience situations where disagreements occur relating to the ownership of certain mineral or overriding royalty interest acreage. Management is not aware of any legal, environmental or other commitments or contingencies that would have a material effect on the Partnership’s financial condition, results of operations or liquidity as of March 31, 2020.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16—SUBSEQUENT EVENTS The Partnership has evaluated events that occurred subsequent to March 31, 2020 in the preparation of its condensed consolidated financial statements. Acquisitions On April 17, 2020, the Partnership completed the acquisition of the equity interests in Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC (the “Springbok Acquisition”) from the owners of such. While certain members of Springbok Operating Company, LLC, manager of the Joint Venture, are affiliated with the entities acquired as part of the Springbok Acquisition, none of the assets held by the Joint Venture were included in the Springbok Acquisition. The aggregate consideration for the Springbok Acquisition consisted of (i) $95.0 million in cash, subject to standard pre-closing adjustments (ii) the issuance of 2,224,358 common units and (iii) the issuance of 2,497,134 OpCo common units and an equal number of Class B units. In connection with the execution of the related purchase agreements, the Partnership paid a deposit of approximately $9.5 million on the cash portion of the purchase price, which was funded by borrowings under its senior secured credit facility. As of March 31, 2020, the acreage acquired in the Springbok Acquisition had over 90 operators on 2,160 net royalty acres across core areas of the Delaware Basin, DJ Basin, Haynesville, STACK, Eagle Ford and other leading basins. In connection with the Springbok Acquisition, the Partnership entered into a Transition Services Agreement (the “Transition Services Agreement”) with Springbok Investment Management, LP (“SIM”) . Pursuant to the Transition Services Agreement, SIM will provide certain administrative services and accounting assistance on a transitional basis for total compensation of $300,000 from April 17, 2020 through June 17, 2020, at which point, the Transition Services Agreement will terminate, unless the Partnership exercises its option to extend the term of the Transition Services Agreement for an additional month. Derivative Transactions On April 17, 2020, the Partnership entered into additional oil and natural gas commodity derivative agreements with Frost Bank for the period beginning April 1, 2020 through March 31, 2022. The commodity derivative contracts consist of fixed price swaps, under which the Partnership receives a fixed price for the contract and pays a floating market price to the counterparty over a specified period for a contracted volume. The Partnership hedges its daily production based on the amount of debt and/or preferred equity as a percent of its enterprise value. Prior to the Springbok Acquisition, this amount constituted approximately 19% of daily oil and natural gas production. Following the closing of the Springbok Acquisition, the Partnership hedged daily oil and natural gas production of approximately 31% of its production. The additional oil and natural gas commodity derivative agreements represent the Partnership’s mitigation of the inherent commodity price risk associated with the oil and natural gas production from the properties acquired in the Springbok Acquisition. Distributions On May 6, 2020, the Partnership paid a quarterly cash distribution on the Series A preferred units of approximately $1.0 million for the quarter ended March 31, 2020. On May 6, 2020, the Partnership paid a quarterly cash distribution to each Class B unitholder equal to 2.0% of such unitholder’s respective Class B Contribution, resulting in a total quarterly distribution of $20,644 for the quarter ended March 31, 2020 . On April 24, 2020, the Board of Directors declared a quarterly cash distribution of $0.17 per common unit for the quarter ended March 31, 2020. The distribution will be paid on May 11, 2020 to common unitholders and OpCo common unitholders of record as of the close of business on May 4, 2020. COVID-19 Pandemic and Impact on Global Demand for Oil and Natural Gas On March 11, 2020, the World Health Organization (the “WHO”) declared the ongoing COVID-19 outbreak a pandemic and recommended containment and mitigation measures worldwide. The pandemic has reached more than 200 countries and has resulted in widespread adverse impacts on the global economy, the Partnership’s oil, natural gas, and NGL operators and other parties with whom the Partnership has business relations. The Partnership has modified certain business practices (including those related to employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences) to conform to government restrictions and best practices encouraged by the Centers for Disease Control and Prevention, the WHO and other governmental and regulatory authorities. Since mid-March, the Partnership has restricted access to its offices to only essential employees, and has directed the remainder of its employees to work from home to the extent possible. These restrictions have had minimal impact on the Partnership’s operations to date and have allowed the Partnership to maintain the engagement and connectivity of its personnel, as well as minimize the number of employees required in the office. The ultimate impacts of COVID-19 and the volatility currently being experienced in the oil and natural gas markets on the Partnership’s business, cash flows, liquidity, financial condition and results of operations will depend on future developments, including, among others, the ultimate geographic spread of the virus, the consequences of governmental and other measures designed to prevent the spread of the virus, the development of effective treatments, the duration of the outbreak, actions taken by members of the Organization of Petroleum Exporting Countries (“OPEC”) and other foreign, oil-exporting countries, governmental authorities and other thirds parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume. For additional discussion regarding the risks associated with the COVID-19 pandemic and OPEC decisions, see Part I, Item II. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item IA. Risk Factors.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reclassification of Prior Period Presentation	Reclassification of Prior Period Presentation Certain prior period amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on previously reported net income (loss), total cash flows from operations or working capital.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement.” This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. The Partnership adopted this update on January 1, 2020 and applied it prospectively. The adoption of this update did not have a material impact on the Partnership’s results of operations for the three months ended March 31, 2020. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard replaced the currently required incurred loss approach with an expected loss model for instruments measured at amortized cost. The Partnership adopted this update using the modified retrospective approach, effective January 1, 2020. The adoption of this update did not have a material impact on the Partnership’s results of operations for the three months ended March 31, 2020. Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” that is expected to reduce cost and complexity related to accounting for income taxes. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Partnership is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact on its financial position, results of operations or liquidity.

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2020
DERIVATIVES
Schedule of changes in fair value of derivative instruments	Three Months Ended March 31, 2020 2019 Beginning fair value of commodity derivative instruments $ 804,501 $ 4,227,946 Gain (loss) on commodity derivative instruments 10,132,613 (4,969,790) Net cash received on settlements of derivative instruments (1,153,752) (196,094) Ending fair value of commodity derivative instruments $ 9,783,362 $ (937,938)
Schedule of derivative contracts	March 31, December 31, Classification Balance Sheet Location 2020 2019 Assets: Current asset Commodity derivative assets $ 7,339,322 $ 687,933 Long-term asset Commodity derivative assets 2,444,040 116,568 Liabilities: Current liability Commodity derivative liabilities — — Long-term liability Commodity derivative liabilities — — $ 9,783,362 $ 804,501
Schedule of commodity derivative contracts	As of March 31, 2020, the Partnership’s open commodity derivative contracts consisted of the following: Oil Price Swaps Notional Weighted Average Range (per Bbl) Volumes (Bbl) Fixed Price (per Bbl) Low High March 2020 - December 2020 187,516 $ 54.55 $ 50.45 $ 61.43 January 2021 - December 2021 238,307 $ 53.49 $ 50.79 $ 56.10 January 2022 - March 2022 71,730 $ 35.65 $ 35.65 $ 35.65 Natural Gas Price Swaps Notional Weighted Average Range (per MMBtu) Volumes (MMBtu) Fixed Price (per MMBtu) Low High April 2020 - December 2020 2,620,719 $ 2.55 $ 2.51 $ 2.63 January 2021 - December 2021 3,503,617 $ 2.49 $ 2.33 $ 2.85 January 2022 - March 2022 972,900 $ 2.54 $ 2.54 $ 2.54

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2020
FAIR VALUE MEASUREMENTS
Schedule of assets and liabilities measured at fair value on a recurring basis	Fair Value Measurements Using Level 1 Level 2 Level 3 Effect of Counterparty Netting Total March 31, 2020 Assets Commodity derivative contracts $ — $ 9,783,362 $ — $ — $ 9,783,362 December 31, 2019 Assets Commodity derivative contracts $ — $ 804,501 $ — $ — $ 804,501

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2020
OIL AND NATURAL GAS PROPERTIES
Schedule of oil and natural gas properties	March 31, December 31, 2020 2019 Oil and natural gas properties Proved properties $ 845,497,790 $ 758,313,233 Unevaluated properties 188,054,927 275,041,784 Less: accumulated depreciation, depletion and impairment (413,039,389) (328,913,425) Total oil and natural gas properties $ 620,513,328 $ 704,441,592

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2020
LEASES
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	Future minimum lease commitments as of March 31, 2020 were as follows: Total 2020 2021 2022 2023 2024 Thereafter Operating leases $ 4,512,876 $ 363,164 $ 480,025 $ 478,837 $ 480,579 $ 486,323 $ 2,223,948 Less: Imputed Interest (1,187,477) Total $ 3,325,399

PREFERRED UNITS (Tables)

PREFERRED UNITS (Tables)	3 Months Ended
	Mar. 31, 2020
Series A Preferred Units
Preferred units
Summary of the changes in the number of the Series A Preferred Units	Series A Preferred Units Balance at December 31, 2019 110,000 Redemption of Series A preferred units (55,000) Balance at March 31, 2020 55,000

UNITHOLDERS' EQUITY AND PARTN_2

UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS (Tables)	3 Months Ended
	Mar. 31, 2020
Common units
Schedule of distributions approved by the Board of Directors	Amount per Date Unitholder Payment Common Unit Declared Record Date Date Q1 2020 $ 0.17 April 24, 2020 May 4, 2020 May 11, 2020 Q1 2019 $ 0.37 April 26, 2019 May 6, 2019 May 13, 2019
Common Units
Common units
Schedule of changes in Partnership's units	Common Units Balance at December 31, 2019 23,518,652 Common units issued for equity offering 5,000,000 Conversion of Class B units 4,913,559 Common units issued under the LTIP (1) 946,638 Balance at March 31, 2020 34,378,849 (1) Includes restricted units granted to certain employees, directors and consultants under the Kimbell Royalty GP, LLC 2017 Long-Term Incentive Plan (as amended, the “LTIP”) on February 28, 2020.
Class B
Common units
Schedule of changes in Partnership's units	Class B Units Balance at December 31, 2019 25,557,606 Conversion of Class B units (4,913,559) Balance at March 31, 2020 20,644,047

EARNINGS (LOSS) PER UNIT (Table

EARNINGS (LOSS) PER UNIT (Tables)	3 Months Ended
	Mar. 31, 2020
EARNINGS (LOSS) PER UNIT
Schedule of earnings (loss) per unit	Three Months Ended March 31, 2020 2019 Net loss attributable to common units $ (39,301,034) $ (3,687,252) Weighted average number of common units outstanding: Basic 30,528,819 17,971,300 Effect of dilutive securities: Series A preferred units — — Class B units — — Restricted units — — Diluted 30,528,819 17,971,300 Net loss attributable to common units Basic $ (1.29) $ (0.21) Diluted $ (1.29) $ (0.21)

UNIT-BASED COMPENSATION (Tables

UNIT-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2020
UNIT-BASED COMPENSATION
Schedule of unvested restricted stock activity	Weighted Weighted Average Average Grant-Date Remaining Fair Value Contractual Units per Unit Term Unvested at December 31, 2019 739,479 $ 18.059 1.335 years Awarded 946,638 11.540 — Unvested at March 31, 2020 1,686,117 $ 14.399 2.297 years

ORGANIZATION AND BASIS OF PRE_2

ORGANIZATION AND BASIS OF PRESENTATION (Details)	3 Months Ended
	Mar. 31, 2020segment
Segment Reporting
Number of operating units	1
Number of reporting units	1

ACQUISITIONS AND JOINT VENTUR_2

ACQUISITIONS AND JOINT VENTURES (Details) $ in Millions	Jun. 19, 2019USD ($)	Mar. 25, 2019ashares	Mar. 31, 2020USD ($)
Phillips Acquisition
Acquisitions
Gross acres acquired (in acres) | a		866,528
Net royalty acres acquired (in acres) | a		12,210
Phillips Acquisition | OpCo Units
Acquisitions
Purchase price units (in units) | shares		9,400,000
Phillips Acquisition | Class B
Acquisitions
Purchase price units (in units) | shares		9,400,000
Springbok SKR Capital Company, LLC and Rivercrest Capital Partners, LP.
Acquisitions
Transaction value of acquisition | $			$ 4.2
Ownership interest (as a percent)	49.30%
Springbok SKR Capital Company, LLC and Rivercrest Capital Partners, LP. | Maximum
Acquisitions
Purchase price units value | $	$ 15

DERIVATIVES (Details)

DERIVATIVES (Details)	3 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2020USD ($)$ / bblMMBbls	Dec. 31, 2019USD ($)
Derivatives
Daily oil and natural gas production before Phillips acquisition hedged (as a percent)			19.00%
Change in fair values of derivative instruments
Beginning fair value of commodity derivative instruments | $	$ 804,501	$ 4,227,946
Gain (loss) on commodity derivative instruments | $	10,132,613	(4,969,790)
Net cash received on settlements of derivative instruments | $	(1,153,752)	(196,094)
Ending fair value of commodity derivative instruments | $	9,783,362	(937,938)
Assets:
Current asset | $			$ 7,339,322	$ 687,933
Long-term asset | $			2,444,040	116,568
Derivative assets (liabilities) | $	$ 9,783,362	$ (937,938)	$ 9,783,362	$ 804,501
Oil Price Swaps - March 2020 - December 2020
Derivatives
Notional Volumes | MMBbls			187,516
Weighted Average Fixed Price			54.55
Oil Price Swaps - January 2021 - December 2021
Derivatives
Notional Volumes | MMBbls			238,307
Weighted Average Fixed Price			53.49
Oil Price Swaps - January 2022 - March 2022
Derivatives
Notional Volumes | MMBbls			71,730
Weighted Average Fixed Price			35.65
Natural Gas Price Swaps - March 2020 - December 2020
Derivatives
Notional Volumes | MMBbls			2,620,719
Weighted Average Fixed Price			2.55
Natural Gas Price Swaps - January 2021 - December 2021
Derivatives
Notional Volumes | MMBbls			3,503,617
Weighted Average Fixed Price			2.49
Natural Gas Price Swaps - January 2022 -March 2022
Derivatives
Notional Volumes | MMBbls			972,900
Weighted Average Fixed Price			2.54
Minimum | Oil Price Swaps - March 2020 - December 2020
Derivatives
Weighted Average Fixed Price			50.45
Minimum | Oil Price Swaps - January 2021 - December 2021
Derivatives
Weighted Average Fixed Price			50.79
Minimum | Oil Price Swaps - January 2022 - March 2022
Derivatives
Weighted Average Fixed Price			35.65
Minimum | Natural Gas Price Swaps - March 2020 - December 2020
Derivatives
Weighted Average Fixed Price			2.51
Minimum | Natural Gas Price Swaps - January 2021 - December 2021
Derivatives
Weighted Average Fixed Price			2.33
Minimum | Natural Gas Price Swaps - January 2022 -March 2022
Derivatives
Weighted Average Fixed Price			2.54
Maximum | Oil Price Swaps - March 2020 - December 2020
Derivatives
Weighted Average Fixed Price			61.43
Maximum | Oil Price Swaps - January 2021 - December 2021
Derivatives
Weighted Average Fixed Price			56.10
Maximum | Oil Price Swaps - January 2022 - March 2022
Derivatives
Weighted Average Fixed Price			35.65
Maximum | Natural Gas Price Swaps - March 2020 - December 2020
Derivatives
Weighted Average Fixed Price			2.63
Maximum | Natural Gas Price Swaps - January 2021 - December 2021
Derivatives
Weighted Average Fixed Price			2.85
Maximum | Natural Gas Price Swaps - January 2022 -March 2022
Derivatives
Weighted Average Fixed Price			2.54

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Commodity Contract - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodity derivative contracts	$ 9,783,362	$ 804,501
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodity derivative contracts	$ 9,783,362	$ 804,501

OIL AND NATURAL GAS PROPERTIE_2

OIL AND NATURAL GAS PROPERTIES (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
OIL AND NATURAL GAS PROPERTIES
Proved properties	$ 845,497,790		$ 758,313,233
Unevaluated properties	188,054,927		275,041,784
Less: accumulated depreciation, depletion, and impairment	(413,039,389)		(328,913,425)
Total oil and natural gas properties, net	620,513,328		$ 704,441,592
Transfer to full cost pool	48,600,000
Impairment of oil and natural gas properties	$ 70,925,731	$ 2,802,198
Percent of proved undeveloped reserves of estimated proved reserves (as a percent)			6.10%

LEASES (Details)

LEASES (Details)	Mar. 31, 2020USD ($)
LEASES
Operating lease weighted average remaining lease term	9 years 29 days
Operating lease weighted average discount rate (as a percent)	6.75%
Remainder of 2020	$ 363,164
2021	480,025
2022	478,837
2023	480,579
2024	486,323
Thereafter	2,223,948
Total operating leases	4,512,876
Less Imputed Interest	(1,187,477)
Total	$ 3,325,399

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	May 31, 2019	Jul. 12, 2018	Feb. 08, 2017
Long-term debt
Borrowings of debt	$ 71,088,125
Repayment of debt	70,000,000
Revolving credit facility
Long-term debt
Revolving credit facility maximum borrowings		$ 225,000,000
Revolving credit facility increased maximum borrowing capacity if certain conditions are met			$ 500,000,000
Revolving credit facility outstanding	$ 101,200,000
Interest rate on outstanding borrowings (as a percent)	4.70%
Borrowing base		$ 300,000,000	$ 300,000,000
Borrowings of debt	$ 71,100,000
Repayment of debt	$ 70,000,000
Revolving credit facility | LIBOR
Long-term debt
Variable rate	LIBOR
Margin (as a percent)	2.25%
Revolving credit facility | Prime
Long-term debt
Variable rate	Prime Rate
Margin (as a percent)	1.25%
Revolving credit facility | Maximum
Long-term debt
Debt to EBITDAX ratio				400.00%
Revolving credit facility | Minimum
Long-term debt
Current assets to current liabilities ratio				100.00%

PREFERRED UNITS - Other (Detail

PREFERRED UNITS - Other (Details) - USD ($)	Feb. 12, 2020	Jul. 31, 2018	Mar. 31, 2020
Series A Preferred Units
Preferred units
Redemption of Series A preferred units	55,000		55,000
Deemed distribution amount	$ 5,700,000
Percentage of Series A preferred units redeemed	50.00%
Unit price (in dollars per unit)	$ 1,110.72
Series A preferred units redemption price	$ 61,100,000
Series A Preferred Units | Minimum
Preferred units
Percent of consideration transferred to carrying value of units (as a percent)	50.00%
Percent of consideration transferred to original intrinsic value of units (as a percent)	50.00%
Affiliates of Apollo Capital Management, L.P.
Preferred units
Series A preferred units issued		110,000
Share price (in dollars per unit)		$ 1,000
Proceeds from the issuance of preferred units		$ 110,000,000
Distribution rate (as a percent)		7.00%
The period after issuance securities become convertible		2 years
Discount rate to the issue price (as a percent)		$ 30
Percent of redemption price exceeding invested capital for the Partnership to initiate redemption (as a percent)		120.00%
Minimum IRR prior to the fifth anniversary of Series A Issuance Date (as a percent)			13.00%
Minimum IRR on or after the fifth anniversary of Series A Issuance Date (as a percent)			14.00%
Minimum IRR on or after the sixth anniversary of Series A Issuance Date (as a percent)			15.00%

PREFERRED UNITS - Rollforward (

PREFERRED UNITS - Rollforward (Details) - Series A Preferred Units - shares	Feb. 12, 2020	Mar. 31, 2020
Preferred units rollforward
Balance at beginning of period		110,000
Redemption of Series A preferred units	(55,000)	(55,000)
Balance at end of period		55,000

UNITHOLDERS' EQUITY AND PARTN_3

UNITHOLDERS' EQUITY AND PARTNERSHIP DISTRIBUTIONS (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019
Common units
Units issued (in units)				34,378,849	23,518,652
Units outstanding (in units)	23,518,652	34,378,849		34,378,849	23,518,652
Repayment of debt		$ 70,000,000
Capital rollforward
Unitholders' capital, beginning balance (in units)	23,518,652	23,518,652
Unitholders' capital, ending balance (in units)		34,378,849
Cash distributions declared and paid (in dollars per unit)		$ 0.17	$ 0.37
Common Units
Common units
Units issued (in units)				34,378,849
Units outstanding (in units)	23,518,652	34,378,849		34,378,849	23,518,652
Capital rollforward
Unitholders' capital, beginning balance (in units)	23,518,652	23,518,652
Common units issued for equity offering (in units)		5,000,000
Conversion of Class B Units (in units)		4,913,559
Common units issued under the LTIP (in units)		946,638
Unitholders' capital, ending balance (in units)		34,378,849
Class B
Common units
Units outstanding (in units)	25,557,606	20,644,047		20,644,047	25,557,606
Capital rollforward
Unitholders' capital, beginning balance (in units)	25,557,606	25,557,606
Conversion of Class B Units (in units)		(4,913,559)
Unitholders' capital, ending balance (in units)		20,644,047
Cash distributions (as a percent)		2.00%
Class B Common Units
Capital rollforward
Additional consideration paid per unit (in dollars per unit)		$ 0.05
Public Offering
Common units
Units issued (in units)	5,000,000
Proceeds from equity offering	$ 73,600,000
Repayment of debt	$ 70,000,000
Underwriters option to purchase additional units
Common units
Units issued (in units)	750,000

EARNINGS (LOSS) PER UNIT (Detai

EARNINGS (LOSS) PER UNIT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings per unit
Net loss attributable to common units	$ (39,301,034)	$ (3,687,252)
Weighted average number of common units outstanding Basic (in units)	30,528,819	17,971,300
Weighted average number of common units outstanding Diluted (in units)	30,528,819	17,971,300
Net (loss) income attributable to common units per unit (basic)	$ (1.29)	$ (0.21)
Net (loss) income attributable to common units per unit (diluted)	$ (1.29)	$ (0.21)
Restricted Units
Earnings per unit
Anti-dilutive options outstanding	1,686,117	1,157,924

UNIT-BASED COMPENSATION (Detail

UNIT-BASED COMPENSATION (Details) - Long-Term Incentive Plan - $ / shares	Sep. 23, 2018	Mar. 31, 2020	Dec. 31, 2019
Unit-based compensation
Additional common units authorized for issuance	2,500,000
Vesting period		3 years
Authorized issuance of units	4,541,600
First Anniversary
Unit-based compensation
Vesting percent		33.30%
Second Anniversary
Unit-based compensation
Vesting percent		33.30%
Third Anniversary
Unit-based compensation
Vesting percent		33.30%
Restricted Units
Unvested Units
Unvested at beginning of period (in units)		739,479
Awarded (in units)		946,638
Unvested at end of period (in units)		1,686,117	739,479
Unvested Weighted Average Grant-Date Fair Value
Unvested at beginning of period (in dollars per unit)		$ 18.059
Awarded (in dollars per unit)		11.540
Unvested at end of period (in dollars per unit)		$ 14.399	$ 18.059
Weighted Average Remaining Contractual Term
Unvested contractual term, at end of period		2 years 3 months 17 days	1 year 4 months 1 day

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended
	Mar. 31, 2020USD ($)
BJF Royalties
Related Party Transactions
Payments made to related parties	$ 0
K3 Royalties
Related Party Transactions
Payments made to related parties	30,000
Nail Bay Royalties
Related Party Transactions
Payments made to related parties	66,054
Duncan Management
Related Party Transactions
Payments made to related parties	$ 140,364

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	May 06, 2020USD ($)	Apr. 24, 2020$ / shares	Apr. 20, 2020USD ($)shares	Apr. 17, 2020USD ($)shares	May 31, 2020USD ($)	Mar. 31, 2020USD ($)aitem	Mar. 31, 2019USD ($)	Apr. 16, 2020
Subsequent events
Distributions to Class B unitholders						$ 24,807	$ 18,014
Distributions on Series A redeemable preferred units						$ 1,925,000	$ 1,925,000
Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC
Subsequent events
Net acres acquired | a						2,160
Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC | Minimum
Subsequent events
The number of operators acquired | item						90
Subsequent Event
Subsequent events
Distributions to Class B unitholders	$ 20,644
Daily oil and natural gas production hedged (as a percent)				31.00%				19.00%
Distributions on Series A redeemable preferred units	$ 1,000,000
Cash distributions declared (in dollars per unit) | $ / shares		$ 0.17
Subsequent Event | Class B Common Units
Subsequent events
Cash distributions (as a percent)	2.00%
Subsequent Event | Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC
Subsequent events
Cash consideration				$ 95,000,000
Business Acquisition cash deposit paid			$ 9,500,000
Payments made to related parties					$ 300,000
Subsequent Event | Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC | OpCo Units
Subsequent events
Business Acquisition issuance of common units | shares				2,497,134
Subsequent Event | Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC | Class B Common Units
Subsequent events
Business Acquisition issuance of common units | shares			2,497,134
Subsequent Event | Springbok Energy Partners, LLC and Springbok Energy Partners II, LLC | Common Units
Subsequent events
Business Acquisition issuance of common units | shares				2,224,358