EARNINGS (LOSS) PER COMMON UNIT

9 Months Ended

Sep. 30, 2022

EARNINGS (LOSS) PER COMMON UNIT

EARNINGS (LOSS) PER COMMON UNIT

NOTE 11—EARNINGS (LOSS) PER COMMON UNIT

Basic earnings (loss) per common unit 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 A&R LTIP (as defined in Note 12) for its employees, directors and consultants and potential conversion of Class B units. The Partnership uses the “if-converted” method to determine the potential dilutive effect of exchanges of outstanding Class B units (and corresponding units of Kimbell Royalty Partners, LP), and the treasury stock method to determine the potential dilutive effect of vesting of outstanding restricted units granted under the Partnership’s LTIP. The Partnership does not use the two-class method because the Class B units and the unvested restricted units granted under the Partnership’s LTIP are nonparticipating securities.

The following table summarizes the calculation of weighted average common units outstanding used in the computation of diluted earnings (loss) per common unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net income attributable to common units of Kimbell Royalty Partners, LP	$	38,343,786	$	1,837,579	$	83,536,606	$	2,624,532
Accretion of redeemable noncontrolling interest in Kimbell Tiger Acquisition Corporation		—		—		(17,845,231)		—
Net income attributable to common units of Kimbell Royalty Partners, LP after accretion of redeemable noncontrolling interest in Kimbell Tiger Acquisition Corporation		38,343,786		1,837,579		65,691,375		2,624,532
Diluted net income attributable to common units of Kimbell Royalty Partners, LP after accretion of redeemable noncontrolling interest in Kimbell Tiger Acquisition Corporation		38,343,786		1,837,579		65,691,375		2,624,532
Weighted average number of common units outstanding:
Basic		55,434,641		41,106,157		52,302,235		39,383,172
Effect of dilutive securities:
Class B units		8,211,579		17,611,579		11,245,161		19,253,448
Restricted units		1,897,192		1,793,578		1,850,067		1,712,915
Diluted		65,543,412		60,511,314		65,397,463		60,349,535
Net income per unit attributable to common units of Kimbell Royalty Partners, LP
Basic	$	0.69	$	0.04	$	1.26	$	0.07
Diluted	$	0.59	$	0.03	$	1.00	$	0.04

The calculation of diluted net income per share for the three and nine months ended September 30, 2022 and 2021 includes the conversion of all Class B units to common units calculated using the “if-converted” method and units of unvested restricted units calculated using the treasury stock method.