News Releases Details

View all news

Natural Resource Partners L.P. Reports 2014 Results and Issues 2015 Guidance

02/12/2015
2014 Highlights
- Revenues and other income of $399.8 million
- Net income per unit of $0.94, or $1.17 excluding impairments
- Distributable cash flow of $217.7 million
- Adjusted EBITDA of $300.3 million

HOUSTON, Feb. 12, 2015 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported 2014 revenues and other income of $399.8 million compared to $358.1 million for 2013. Net income attributable to the limited partners for 2014 was $106.7 million, or $0.94 per unit, versus $168.6 million and $1.54 per unit for 2013.  Results for 2014 included a non-cash charge of $26.2 million, or $0.23 per unit, for the impairment of several coal and aggregates properties.   Distributable cash flow for 2014 was $217.7 million compared to $309.4 million for 2013.  Distributable cash flow in 2013 included a one-time special distribution of $44.8 million from OCI Wyoming and an additional $9.5 million in cash from the sale of assets.  NRP also reported adjusted EBITDA of $300.3 million for 2014 versus $340.3 million for 2013.  For reconciliations of the non-GAAP measures of distributable cash flow, adjusted EBITDA and net income per unit before considering non-cash impairments, see "Non-GAAP Financial Measures" and the reconciliation tables elsewhere in this release.

Natural Resource Partners LP logo

For the quarter ended December 31, 2014, revenues totaled $137.3 million compared to $94.7 million reported for the same period 2013.  The increase in revenues was principally due to contributions from the VantaCore construction aggregates business and producing oil and gas properties in the Sanish Field, both of which were acquired during the fourth quarter.  Net income attributable to the limited partners for the fourth quarter was $8.5 million, or $0.07 per unit, compared to $46.0 million and $0.42 per unit for the fourth quarter 2013. Results for the quarter included a non-cash charge of $20.6 million, or $0.17 per unit, for the impairment of several coal and aggregates properties.  Distributable cash flow for the fourth quarter was $56.1 million and adjusted EBITDA was $80.1 million, compared to $69.6 million and $69.1 million, respectively, for the fourth quarter 2013.

"In this challenging commodity price environment, our 2014 financial and operational results met or exceeded our guidance," said Wyatt Hogan, President of NRP.  "Our performance in 2014 is a testament not only to our NRP team and the quality and diversity of our assets, but also to the exceptional efforts of our coal lessees, oil and gas operators, OCI Wyoming soda ash operations and our recently acquired VantaCore construction aggregates business.  In 2014, we made two significant acquisitions that have established NRP as a diversified natural resource company.  Nevertheless, as we look forward to 2015, the markets for coal and oil and gas remain difficult, and we will continue to manage our business with a long-term perspective through this cycle."

 

Highlights

Quarter Ended


For the Year Ended


December 31,

December 31,

%


December 31,

December 31,

%


2014

2013

Change


2014

2013

Change


(in thousands except per
unit and per ton)



(in thousands except per
unit and per ton)


Revenues








Total revenues and other income

$ 137,273

$ 94,744

45%


$ 399,752

$ 358,117

12%

Coal production (tons)

12,986

11,089

17%


50,459

53,292

-5%

Average coal royalty revenue per ton

$       3.39

$     4.30

-21%


$       3.65

$       3.99

-9%

Total coal related revenues

$   53,797

$ 66,958

-20%


$ 226,724

$ 274,194

-17%

Aggregates and industrial minerals related revenue

$   44,510

$   3,817

1066%


$   54,124

$   13,479

302%

Oil and gas related revenue

$   22,085

$   7,338

201%


$   59,566

$   17,080

249%

Equity and other unconsolidated investment income

$   12,551

$ 12,018

4%


$   41,416

$   34,186

21%









Operating Expenses

$ 106,223

$ 27,992

279%


$ 210,833

$ 121,881

73%









Net income 








Net income to limited partners

$     8,472

$ 46,041

-82%


$ 106,653

$ 168,636

-37%

Net income per unit

$       0.07

$     0.42

-83%


$       0.94

$       1.54

-39%

Average units outstanding

121,449

109,812

11%


113,262

109,584

3%









Net income before considering any impairments(1)








Net income to limited partners

28,645

46,041

-38%


132,338

169,356

-22%

Net income per unit

$       0.24

$     0.42

-43%


$       1.17

$       1.55

-25%









Distributable cash flow(1)

$   56,066

$ 69,646

-19%


$ 217,710

$ 309,394

-30%









Adjusted EBITDA(1)

$   80,143

$ 69,092

16%


300,322

340,345

-12%

(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.

 

Twelve Months 2014 compared to Twelve Months 2013

Revenues and Other Income
Total revenues and other income for 2014 increased 12% to $399.8 million from the same period of 2013 due to significant increases in aggregates related revenues, oil and gas related revenues and equity income from NRP's soda ash business.  These increases, mainly due to acquisitions that occurred in both 2013 and 2014, more than offset the $47.5 million decline in coal related revenues.  Coal related revenues decreased mainly due to decreases in prices for both metallurgical and thermal coal equating to a 9% reduction in average coal royalty revenue per ton; a 5% decline in coal production volumes; and a gain on sale of assets recorded in 2013.  Metallurgical coal represented 32% of coal production and 40% of coal royalty revenues for 2014.   

NRP benefitted from its diversification into other asset classes, as revenues and other income other than coal related revenues increased to 43% of total revenues and other income in 2014 as compared to 23% of total revenues and other income in 2013.  The most significant increase occurred in oil and gas revenues, which increased by $42.5 million due primarily to a full year of production realized on the two acquisitions that occurred in 2013 and the addition of six weeks of revenues accrued for the Sanish Field assets in the Williston Basin in the fourth quarter 2014.  NRP's average realized oil price in the Williston Basin, after differentials to WTI, was $77.85 in 2014.  Aggregates related revenues increased $40.6 million due to the revenues realized for VantaCore's construction aggregates business also purchased in the fourth quarter 2014.  NRP also recognized an increase related to the equity income recognized from the soda ash business.  Equity and other unconsolidated income increased $7.2 million, most of which was due to improved operating revenues. 

Operating Expenses
Total operating expenses increased $89.0 million to $210.8 million, including non-cash impairments of $26.2 million taken in 2014 and $0.7 million taken in 2013.  Although NRP still derives significant revenues from higher margin royalty assets, the acquisition of operating companies such as VantaCore in addition to non-operated oil and and gas interests have resulted in increased operating expenses for NRP.  NRP reported aggregates operating expenses of $32.3 million related to VantaCore's construction aggregates business acquired in the fourth quarter and $8.4 million of additional oil and gas operating expenses.  In addition, property, franchise and other taxes increased $4.8 million.  Depreciation, depletion and amortization increased $15.5 million resulting from more significant oil and gas operations. 

Net Income
Net income attributable to the limited partners decreased $61.9 million to $106.7 million, and net income per unit decreased $0.60 compared to the 2013 period.  Before considering non-cash impairments, net income to the limited partners decreased $37.1 million to $132.3 million for 2014 from $169.4 million in 2013.  Before considering non-cash impairments, net income per unit was $1.17 versus $1.55 for 2013. Impacting net income per unit was a 3.7 million unit increase in the weighted average number of units outstanding in 2014 versus the same period in 2013. 

Distributable Cash Flow
Distributable cash flow decreased by $91.7 million to $217.7 million due mainly to a $44.8 million special distribution received from OCI Wyoming in 2013; declines in the coal business resulting in a $36.3 million decrease in net cash provided by operations relative to 2013; an additional $21.0 million of interest paid in 2014; and a $9.5 million difference in proceeds from the sale of assets.

Adjusted EBITDA
Adjusted EBITDA declined 12% in 2014 to $300.3 million from $340.3 million generated in 2013.  The decrease is mainly related to the special distribution received in 2013 from OCI Wyoming. 

Fourth Quarter 2014 compared to Third Quarter 2014

Highlights

Quarter Ended


December 31

September 30

% Change


(in thousands, except per ton and per unit)


Revenues and other income




Total revenues and other income

$ 137,273

$ 91,609

50%

Coal production (tons)

12,986

13,370

-3%

Average coal royalty revenue per ton

$       3.39

$     3.80

-11%

Total coal related revenue

$   53,797

$ 65,193

-17%

Aggregates and industrial minerals related revenue

$   44,510

$   2,655

1576%

Oil and gas related revenue

$   22,085

$   9,601

130%

Equity and other unconsolidated investment income 

$   12,551

$   9,685

30%





Operating expenses

$ 106,223

$ 36,582

190%





Net income




Net income to limited partners

$     8,472

$ 35,450

-76%

Net income to the limited partners, before considering any impairments(1)

$   28,645

$ 35,450

-19%

Net income per unit

$       0.07

$     0.32

-78%

Net income per unit, before considering any impairments(1)

$       0.24

$     0.32

-25%

Average units outstanding

121,449

111,244

9%





Distributable cash flow(1)

$   56,066

$ 57,773

-3%





Adjusted EBITDA(1)

$   80,143

$ 74,261

8%

(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.

 

Revenues and Other Income
Total revenues and other income for the fourth quarter increased 50% to $137.3 million from the third quarter mainly due to revenue from VantaCore's construction aggregates business of $42.1 million, oil and gas revenues of $12.5 million due to increased production and activity from recent acquisitions and $2.9 million from improved soda ash operations offset by decreases in coal related revenues.  Average coal royalty revenue per ton decreased 11%, and coal production volumes decreased modestly.

Operating Expenses
Operating expenses increased $69.6 million due to aggregates operating expenses associated with VantaCore of $32.3 million, increased depreciation, depletion and amortization expenses of $11.6 million, increased general and administrative expenses due to additional personnel and expenses related to the fourth quarter acquisitions and $20.6 million of non-cash impairments recorded in the fourth quarter.

Net Income
Net income to the limited partners and net income per unit decreased 76% and 78% respectively in the fourth quarter from the previous quarter.  Before considering the non-cash impairment of $20.6 million, net income to the limited partners decreased $6.8 million or 19% to $28.6 million mainly due to increased interest expense of $3.6 million related to the two fourth quarter acquisitions.

Distributable Cash Flow
Distributable cash flow decreased $1.7 million in the fourth quarter to $56.1 million.

Adjusted EBITDA
Adjusted EBITDA for the fourth quarter 2014 increased $5.8 million to $80.1 million over the $74.3 million generated in the third quarter 2014. 

Acquisitions

In 2014, NRP invested approximately $540 million in non-coal-related acquisitions in an effort to diversify its revenues.  Those acquisitions included VantaCore, a construction aggregates company that now places NRP as one of the top 25 aggregates producers in the nation, and the purchase of non-operated oil and gas working interests in the Sanish Field in the Williston Basin.

2015 Outlook and Guidance

NRP expects its coal business to be down slightly from 2014 results and expects its soda ash business to improve over 2014.  NRP's aggregates-related revenues in 2015 are expected to increase substantially over 2014 due to the VantaCore acquisition made in the fourth quarter.  NRP's interests in oil and natural gas properties remain a small portion of NRP's business, and oil and gas revenues are expected to remain flat as compared to 2014, with increased production offset by significantly lower prices.  NRP will continue to monitor the development programs of the operators of its Williston Basin non-operated working interest properties and manage the capital expenditures associated with these properties by only participating in wells that are expected to provide acceptable economic returns. 

In spite of the expected increase in revenues, adjusted EBITDA is expected to remain relatively flat due to the lower margins of the VantaCore construction aggregates business. 

Distributable cash flow for 2015 is estimated to be $175 million to $200 million, which is calculated after deducting maintenance capital expenditures of approximately $23 million associated with NRP's non-operated working interests in oil and natural gas properties and VantaCore's construction aggregates mining and production operations. 

The following table sets forth NRP's guidance for the year ending December 31, 2015:



2014 Actuals

  2015 Guidance



(Range)


(in millions

(in millions)

Coal production  (mm tons)

50.5

44.0

-

51.0






Coal-related revenues(1)

$ 226.7

$ 207.0

-

$ 221.0

Aggregates and industrial minerals revenues(2)

54.1

163.0

-

179.0

Oil and gas revenues(3)

59.6

56.0

-

66.0

Equity and other unconsolidated investment income (soda ash revenues)

41.4

47.0

-

50.0

Total revenues

$ 399.8

$ 490.0

-

$ 535.0






Operating income

$ 188.9

$ 176.0

-

$ 206.0

Interest expense (net)

$   80.1

$   88.0

-

$   91.0

Adjusted EBITDA (4)

$ 300.3

$ 280.0

-

$ 310.0






Distributable cash flow (4)

$ 217.7

$ 175.0

-

$ 200.0


(1)  Includes coal royalty revenues, coal lease minimums recognized as revenues, coal overriding royalties, wheelage fees and coal-related processing and transportation fees.


(2)  Includes aggregate royalty revenues and revenues from VantaCore's construction aggregates operations


(3)  Includes revenues from NRP's Williston Basin non-operated working interest assets as well as oil and gas royalty revenues.  Assumes an average WTI price of $52 per Bbl. 


(4)  "Adjusted EBITDA" and "Distributable cash flow" are non-GAAP financial measures.  For an explanation of these measures, see "Non-GAAP Financial Measures" at the end of this release.

Liquidity and Capital Resources

At December 31, 2014, NRP had approximately $50.1 million in cash and $127.0 million available for borrowing under its revolving credit facilities, and does not anticipate any debt covenant compliance issues over the next year.  NRP has $81 million in principal payments due on NRP Operating's senior notes during each of 2015 and 2016, and NRP Operating's revolving credit facility and term loan facility both mature in 2016.  NRP remains committed to furthering its long-term goals of reducing debt and enhancing liquidity.

Distributions

In January 2015, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.35 per unit for the fourth quarter 2014.

Company Profile

Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX.  NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States.  A large percentage of NRP's revenues are generated from royalties and other passive income.  In addition, NRP owns an equity investment in OCI Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, a construction aggregates business, making NRP ranked as one of the top 25 aggregates producers in the United States.

For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com.  Further information about NRP is available on the partnership's website at http://www.nrplp.com.

Non-GAAP Financial Measures

"Distributable cash flow" represents cash flow from operations plus return on unconsolidated equity investments, proceeds from the sale of assets, and the return on direct financing lease and contractual overrides.  Distributable cash flow is a "non-GAAP financial measure" that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP's ability to make quarterly cash distributions to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. A reconciliation of historical distributable cash flow to net cash provided by operating activities is included in the tables attached to this release.  Distributable cash flow may not be calculated the same for NRP as other companies.

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income less equity and other unconsolidated investment income; plus cash distributions received from unconsolidated affiliates, interest expense, taxes, depreciation, depletion and amortization, and asset impairments. "Adjusted EBITDA," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDA provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Adjusted EBITDA does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes adjusted EBITDA is useful in evaluating our financial performance because this measure is widely used by analysts, investors and rating agencies for comparative purposes.  There are significant limitations to using adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies and the different methods of calculating adjusted EBITDA reported by different companies. A reconciliation of historical adjusted EBITDA to net income is included in the tables attached to this release. 

This press release contains information based upon forward-looking estimates of distributable cash flow and adjusted EBITDA for the year ending December 31, 2015. We do not provide financial guidance for projected net income or changes in working capital, and, therefore, we are unable to provide a reconciliation of our adjusted EBITDA or distributable cash flow projections to net income, operating income, or net cash flow provided by operating activities, the most comparable financial measures calculated in accordance with GAAP. 

Forward-Looking Statements

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.  Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership.  These risks include, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners'Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

-Financial statements follow-

 

Natural Resource Partners L.P.

Operating Statistics - Coal Related Revenue

(in thousands except per ton data)







Quarter Ended


For the Year Ended







December 31


December 31


December 31


December 31







2014


2013


2014


2013







(unaudited)


(unaudited)














Regional Statistics










Coal royalty production (tons):










Appalachia












Northern



2,802


1,454


9,339


11,505



Central



4,996


4,739


20,092


20,801



Southern



964


963


3,914


4,151




Total Appalachia


8,762


7,156


33,345


36,457


Illinois Basin



3,113


3,546


13,177


13,087


Northern Powder River Basin


738


279


2,844


2,778


Gulf Coast 



373


108


1,093


970

Total





12,986


11,089


50,459


53,292

Average royalty revenue per ton:










Appalachia












Northern



$     0.96


$     1.81


$       0.92


$       1.27



Central



4.07


4.88


4.46


5.05



Southern



5.00


5.75


5.18


6.30




Total Appalachia


3.18


4.38


3.55


4.00


Illinois Basin



4.21


4.27


4.10


4.28


Northern Powder River Basin


2.39


3.10


2.74


2.72


Gulf Coast 



3.54


3.63


3.47


3.39

Combined average royalty revenue per ton


$     3.39


$     4.30


$       3.65


$       3.99

Coal royalty revenues:











Appalachia












Northern



$   2,680


$   2,635


$     8,621


$   14,643



Central



20,338


23,143


89,627


105,004



Southern



4,823


5,533


20,292


26,156




Total Appalachia


$ 27,841


$ 31,311


$ 118,540


$ 145,803


Illinois Basin



13,093


15,137


54,049


56,001


Northern Powder River Basin


1,763


866


7,804


7,569


Gulf Coast 



1,320


392


3,793


3,290

Total coal royalty revenues


$ 44,017


$ 47,706


$ 184,186


$ 212,663














Other coal related revenues:










Override revenue



1,085


1,659


4,601


10,372


Transportation and processing fees


5,366


5,509


22,048


22,519


Minimums recognized as revenue


2,455


915


6,659


6,528


Reserve swap



-


-


5,690


8,149


DOH - Coal Property Sale


-


10,370


-


10,370


Coal Bonus



98


-


98


-


Wheelage



776


799


3,442


3,593



Total other coal related revenues

$   9,780


$ 19,252


$   42,538


$   61,531














Total coal related revenues


$ 53,797


$ 66,958


$ 226,724


$ 274,194

   

 

 

Natural Resource Partners L.P.

Operating Statistics - Aggregates and Industrial Minerals

(in thousands except per ton data)


Quarter Ended


For the Year Ended


December 31,


December 31,


December 31,


December 31,


2014


2013


2014


2013


(unaudited)


(unaudited)

VantaCore








Tonnage Sold

4,281


-


4,281


-

Revenues

$ 42,051


$           -


$ 42,051


$           -

Operating expenses

$ 32,309


$           -


$ 32,309


$           -









Aggregates royalty revenues and production








Tonnage

648


1,642


3,492


6,155

Aggregate royalty revenues

$      501


$   1,774


$   3,179


$   7,073









Other aggregate related revenue

$   1,958


$   2,043


$   8,894


$   6,406









Total aggregate related revenues

$ 44,510


$   3,817


$ 54,124


$ 13,479









Soda ash revenues and distributions








Equity and other unconsolidated investment earnings

$ 12,551


$ 12,018


$ 41,416


$ 34,186

Cash distributions received from OCI Wyoming

$ 10,780


$           -


$ 46,638


$ 72,946

 

 

Natural Resource Partners L.P.

Operating Statistics - Oil and Gas

($ in thousands)


Quarter Ended


Year Ended


December 31,


December 31,


December 31,


December 31,


2014


2013


2014


2013


(unaudited)


(unaudited)

Williston Basin non-operated working interests








Production volumes








Oil (MBbls)

295


 N/A 


578


 N/A 

Natural gas (Mcf)

207


 N/A 


408


 N/A 

NGL (MBoe)

33


 N/A 


53


 N/A 









Average sales price per unit








Oil ($/Bbl)

$   63.17


 N/A 


$   77.85


 N/A 

Natural gas ($/Mcf)

$     3.64


 N/A 


$     5.04


 N/A 

NGL ($/Boe)

$   26.42


 N/A 


$   33.64


 N/A 









Revenues








Oil 

$ 18,635


 N/A 


$ 44,995


 N/A 

Natural gas 

$      753


 N/A 


$   2,056


 N/A 

NGL

$      872


 N/A 


$   1,783


 N/A 

  Total

$ 20,260


 N/A 


$ 48,834


 N/A 









Other oil and gas related revenues








Royalty and overriding revenues

$   1,825


 N/A 


$ 10,732


 N/A 









Total oil and gas revenues

$ 22,085


$ 7,338


$ 59,566


$ 17,080

 

 

Natural Resource Partners L.P.

Consolidated Statements of Comprehensive Income

(in thousands, except per unit data)




















Quarter Ended


For the Year Ended







December 31,


December 31,


December 31,


December 31,







2014


2013


2014


2013







(unaudited)


(unaudited)















Revenues and other income:












Coal related revenues




$ 53,797


$ 66,958


$ 226,724


$ 274,194


Aggregate related revenues




44,510


3,817


54,124


13,479


Oil and gas related revenues



22,085


7,338


59,566


17,080


Equity and other unconsolidated investment income


12,551


12,018


41,416


34,186


Property taxes




2,744


3,611


13,609


15,416


Other




1,586


1,002


4,313


3,762



Total revenues and other income



137,273


94,744


399,752


358,117

Operating expenses:












Depreciation, depletion and amortization


30,258


14,352


79,876


64,377


Asset impairments




20,585


-


26,209


734


General and administrative




13,887


9,052


36,437


36,821


Property, franchise and other taxes



5,443


3,653


21,279


16,463


Oil and gas lease operating expenses



2,785


256


9,144


739


Aggregate operating expenses



32,309


-


32,309


-


Transportation costs




366


402


1,604


1,644


Royalty payments




590


277


3,975


1,103



Total operating expenses



106,223


27,992


210,833


121,881

Income from operations




31,050


66,752


188,919


236,236

Other income (expense)










-


Interest expense




(22,426)


(19,777)


(80,185)


(64,396)


Interest income




21


6


96


238

Net income 




$   8,645


$ 46,981


$ 108,830


$ 172,078

Net income attributable to:












General partner




$      173


$      940


$     2,177


$     3,442


Limited partners




$   8,472


$ 46,041


$ 106,653


$ 168,636











Basic and diluted net income per limited partner unit:




$     0.07


$     0.42


$       0.94


$       1.54














Weighted average number of units outstanding:


121,449


109,812


113,262


109,584














Comprehensive income 




$   8,458


$ 46,900


$ 108,749


$ 172,143

 

 

Natural Resource Partners L.P.

Consolidated Statements of Cash Flow

(in thousands, except per unit data)






Quarter Ended


For the Year Ended






December 31,


December 31,


December 31,


December 31,






2014


2013


2014


2013






(unaudited)


(unaudited)


Cash flows from operating activities:










Net income 


$    8,645


$ 46,981


$ 108,830


$ 172,078


Adjustments to reconcile net income to net cash provided by operating activities:











Depreciation, depletion and amortization


30,258


14,352


79,876


64,377



Gain on reserve swap


-


-


(5,690)


(8,149)



Equity and other unconsolidated investment income


(12,551)


(12,018)


(41,416)


(34,186)



Distributions of earnings from unconsolidated investments


10,780


-


43,005


24,113



Non-cash interest charge, net


1,183


746


3,328


2,200



Gain on sale of assets


(1,383)


(10,370)


(1,386)


(10,921)



Asset impairment


20,585


-


26,209


734


Change in operating assets and liabilities:











Inventory


748


-


748


-



Accounts receivable


(3,151)


(2,651)


(10,693)


6,826



Other assets


(1,545)


(1,380)


(795)


(516)



Accounts payable and accrued liabilities


(6,034)


1,405


(4,411)


2,197



Accrued interest


(2,160)


9,517


1,032


6,919



Deferred revenue


6,329


5,909


17,674


19,240



Accrued incentive plan expenses


180


2,364


(5,265)


2,284



Property, franchise and other taxes payable


1,775


2,704


(291)


(122)




Net cash provided by operating activities:


53,659


57,559


210,755


247,074

Cash flows from investing activities:











Acquisition of plant and equipment


(2,247)


-


(2,454)


-



Acquisition of land, coal, other mineral rights, and related intangibles

(339,000)


(33,697)


(339,768)


(72,000)



Acquisition of equity interests


-


(8)


-


(293,085)



Acquisition of aggregate operations


(168,978)


-


(168,978)


-



Oil and gas capital expenditures


(2,991)


-


(16,258)


-



Return on unconsolidated equity investments


-


-


3,633


48,833



Proceeds from sale of assets


1,413


10,370


1,418


10,929



Return on direct financing lease and contractual override


994


1,717


1,904


2,558




Net cash used in investing activities


(510,809)


(21,618)


(520,503)


(302,765)

Cash flows from financing activities:











Proceeds from loans


635,375


20,000


637,375


567,020



Repayment of loans


(258,808)


-


(327,983)


(386,230)



Deferred financing costs


(5,094)


(148)


(5,094)


(9,209)



Proceeds from issuance of common units


102,376


-


127,202


75,000



Capital contribution by general partner


2,733


-


3,240


1,531



Costs associated with equity transactions


(3,812)


(233)


(4,413)


(293)



Distributions to partners


(43,670)


(62,722)


(163,016)


(249,039)




Net cash provided by (used in) financing activities


429,100


(43,103)


267,311


(1,220)

Net increase (decrease)  in cash and cash equivalents


(28,050)


(7,162)


(42,437)


(56,911)

Cash and cash equivalents at beginning of period


78,126


99,675


92,513


149,424

Cash and cash equivalents at end of period


$  50,076


$ 92,513


$   50,076


$   92,513

Supplemental cash flow information:











Cash paid during the period for interest


$  23,889


$   9,475


$   76,155


$   55,191


Non-cash  activities:











Units issued for aggregate operations


$  31,604


$           -


$   31,604


$             -



Non-cash contingent consideration on equity investments


$            -


$ 15,000


$             -


$   15,000

 

 

Natural Resource Partners L.P.

Consolidated Balance Sheets

(in thousands, except for unit information)













ASSETS










December 31


December 31,










2014


2013










(unaudited)



Current assets:










Cash and cash equivalents






$      50,076


$      92,513


Accounts receivable, net of allowance for doubtful accounts



66,455


33,737


Accounts receivable - affiliates





9,494


7,666


Inventory






5,814


-


Other







4,279


1,691



Total current assets






136,118


135,607

Land








25,243


24,340

Plant and equipment, net






60,093


26,435

Mineral rights, net






1,781,896


1,405,455

Intangible assets, net






60,689


66,950

Goodwill







52,012


-

Equity and other unconsolidated investments





264,020


269,338

Loan financing costs, net






13,905


11,502

Long-term contracts receivable - affiliate





50,008


51,732

Other assets






740


497



Total assets






$ 2,444,724


$ 1,991,856













LIABILITIES AND PARTNERS' CAPITAL













Current liabilities:










Accounts payable and accrued liabilities





$      32,416


$        8,659


Accounts payable - affiliates






950


391


Current portion of long-term debt





80,983


80,983


Accrued incentive plan expenses - current portion




7,048


8,341


Property, franchise and other taxes payable




8,318


7,830


Accrued interest






18,216


17,184



Total current liabilities






147,931


123,388

Deferred revenue






160,260


142,586

Accrued incentive plan expenses






6,554


10,526

Asset retirement obligation






4,905


-

Other non-current liabilities






10,679


14,341

Long-term debt






1,394,240


1,084,226

Partners' capital:










Common units outstanding ( 122,299,825 and 109,812,408)



709,018


606,774


General partner's interest






12,246


10,069


Non-controlling interest






(650)


324


Accumulated other comprehensive loss





(459)


(378)



Total partners' capital






720,155


616,789



Total liabilities and partners' capital





$ 2,444,724


$ 1,991,856

 

 

Natural Resource Partners L.P.

Reconciliation of GAAP Financial Measures

to Non-GAAP Financial Measures

(in thousands)

Reconciliation of GAAP "Net cash provided by operating activities"

to Non-GAAP "Distributable cash flow"





Quarter Ended


For the Year Ended





December 31,


December 31,


December 31,


December 31,





2014


2013


2014


2013





(unaudited)


(unaudited)












Net cash provided by operating activities




$ 53,659


$ 57,559


$ 210,755


$ 247,074

Return on direct financing lease and contractual override




994


1,717


1,904


2,558

Return on unconsolidated equity investments 




-


-


3,633


48,833

Proceeds from sale of assets




1,413


10,370


1,418


10,929

Distributable cash flow




$ 56,066


$ 69,646


$ 217,710


$ 309,394













































Reconciliation of GAAP "Net cash provided by operating activities"

to Non-GAAP "Distributable cash flow"
















Quarter Ended







December 31,


September 30,









2014


2014









(unaudited)














Net cash provided by operating activities




$ 53,659


$ 57,458





Return on direct financing lease and contractual override




994


310





Return on unconsolidated equity investments 




-


-





Proceeds from sale of assets




1,413


5





Distributable cash flow




$ 56,066


$ 57,773





 

 

Natural Resource Partners L.P.

Reconciliation of GAAP Financial Measures

to Non-GAAP Financial Measures

(in thousands)












Reconciliation of GAAP "Net income"

to Non-GAAP "Adjusted EBITDA"
















Quarter Ended


For the Year Ended





December 31,


December 31,


December 31,


December 31,





2014


2013


2014


2013





(unaudited)


(unaudited)












Net income




$   8,645


$ 46,981


$ 108,830


$ 172,078

Less: Equity and other unconsolidated investment income



(12,551)


(12,018)


(41,416)


(34,186)

Add: Distributions from unconsolidated affiliates




10,780


-


46,638


72,946

Add depreciation, depletion and amortization




30,258


14,352


79,876


64,377

Add asset impairments




20,585


-


26,209


734

Add interest expense, gross




22,426


19,777


80,185


64,396

Adjusted EBITDA




$ 80,143


$ 69,092


$ 300,322


$ 340,345























Reconciliation of GAAP "Net income"

to Non-GAAP "Adjusted EBITDA"
















Quarter Ended







December 31,


September 30,









2014


2014









(unaudited)














Net income




$   8,645


$ 36,173





Less: Equity and other unconsolidated investment income



(12,551)


(9,685)





Add: Distributions from unconsolidated affiliates




10,780


10,290





Add depreciation, depletion and amortization




30,258


18,621





Add asset impairments




20,585


-





Add interest expense, gross




22,426


18,862





Adjusted EBITDA




$ 80,143


$ 74,261





 

 

Reconciliation of GAAP "Total operating costs and expenses"

to Non-GAAP "Total operating expenses before considering any impairments"












Quarter Ended


For the Year  Ended


September 30,


December 31,


December 31,


December 31,


December 31,


2014


2014


2013


2014


2013


(unaudited)


(unaudited)

Operating expenses










Total operating expenses as reported

$ 36,582


$ 106,223


$ 27,992


$ 210,833


$ 121,881

Impairments

$           -


$ (20,585)


$           -


$ (26,209)


$      (734)

Total operating costs before considering any impairments

$ 36,582


$   85,638


$ 27,992


$ 184,624


$ 121,147











Reconciliation of GAAP "Net income attributable to the limited partners"

to Non-GAAP "Net income attributable to the limited partners before considering any impairments"












Quarter Ended


For the Year  Ended


September


December


December


December


December


2014


2014


2013


2014


2013


(unaudited)


(unaudited)

Net income attributable to the limited partners










Net income as reported

$ 36,173


$     8,645


$ 46,981


$ 108,830


$ 172,078

Impairments

-


20,585


-


$   26,209


$        734

Net income before considering any impairments

$ 36,173


$   29,230


$ 46,981


$ 135,039


$ 172,812

Net income, before considering any impairments, attributable to:










  General partner

$      723


$        585


$      940


$     2,701


$     3,456

  Limited partners

$ 35,450


$   28,645


$ 46,041


$ 132,338


$ 169,356











Reconciliation of GAAP "Basic and diluted net income per unit"

to Non-GAAP "Net income per unit before considering any impairments"












Quarter Ended


For the Year Ended


September


December


December


December


December


2014


2014


2013


2014


2013


(unaudited)


(unaudited)

Net income per unit







 * 



Net income per unit as reported

$     0.32


$       0.07


$     0.42


$       0.94


$       1.54

Adjustment for impairments

-


0.17


-


0.23


0.01

Net income per limited partner unit, before considering any impairments

$     0.32


$       0.24


$     0.42


$       1.17


$       1.55











Weighted number of units outstanding

111,244


121,449


109,812


113,262


109,584











* Numbers may not add due to rounding

 

Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/natural-resource-partners-lp-reports-2014-results-and-issues-2015-guidance-300034770.html

SOURCE Natural Resource Partners L.P.

Multimedia Files:

View all news