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Natural Resource Partners L.P. Reports Second Quarter 2021 Results and Declares Second Quarter 2021 Distributions

08/06/2021

HOUSTON--(BUSINESS WIRE)-- Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2021 results as follows:

 

 

For the Three

Months Ended

 

Last Twelve

Months Ended

(In thousands) (Unaudited)

 

June 30, 2021

Net income

 

$

15,382

 

 

$

45,666

 

Asset impairments

 

16

 

 

7,661

 

Net income excluding asset impairments (1)

 

$

15,398

 

 

$

53,327

 

Adjusted EBITDA (1)

 

27,351

 

 

100,233

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

Operating activities

 

13,384

 

 

74,062

 

Investing activities

 

657

 

 

2,365

 

Financing activities

 

(12,900

)

 

(89,347

)

Free cash flow (1)

 

12,925

 

 

75,136

 

Cash flow cushion (last twelve months) (1)

 

 

 

(12,522

)

___________________

(1)

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

 

"NRP saw continued strength in demand for steel, glass and electricity in the second quarter of 2021, resulting in stable free cash flow generation and strong liquidity. We are continuing to reduce debt, maintain robust liquidity and maximize unitholder value as we navigate the ongoing effects of the COVID-19 pandemic," said Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $197.9 million at June 30, 2021, consisting of $97.9 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

NRP announced today that the Board of Directors of its general partner declared a second quarter 2021 cash distribution of $0.45 per common unit of NRP to be paid on August 26, 2021 to unitholders of record on August 19, 2021. In addition, the Board declared a $7.8 million distribution on the preferred units, which will be paid one-half in cash and one-half in kind through the issuance of additional preferred units. The preferred unit distribution includes interest on previously paid-in-kind units and will be paid one-half in cash and one-half in kind through the issuance of additional preferred units.

Segment Performance

Coal Royalty and Other

In the second quarter of 2021 net income increased $134.4 million as compared to the prior year period primarily due to a $132.3 million non-cash asset impairment expense recorded in the second quarter of 2020 that was primarily related to weakened coal markets compounded by the COVID-19 pandemic. Free cash flow was relatively flat in the second quarter of 2021 as compared to the prior year period as increased coal royalty cash flow due to stronger coal demand in the second quarter of 2021 was offset by $5 million of increased cash flow in the second quarter of 2020 related to the emergence of a lessee from bankruptcy. Approximately 65% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2021.

Metallurgical coal markets have rebounded from the lows seen in 2020 and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have significantly improved from the lows seen in 2020, but still face ongoing negative effects of the COVID-19 pandemic and the long-term challenges of lower electricity demand, competition from natural gas, and the secular shift to renewable energy. However, NRP does not have significant sensitivity to thermal coal price movements this year since the substantial majority of NRP's thermal cash flows are fixed through 2021 pursuant to a contract with Foresight Energy that went into effect as they emerged from bankruptcy last year.

In addition to actively managing its currently producing coal and hard mineral properties over the last year, NRP continues working to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities NRP is exploring include the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy. While the timing and likelihood of cash flows being realized from any of these activities is highly uncertain, NRP believes its large ownership footprint throughout the United States will provide opportunities to create value in this regard with minimal capital investment by NRP.

Soda Ash

Net income in the second quarter of 2021 increased $5.7 million as compared to the prior year period primarily as a result of increased sales volumes as demand for soda ash continued to rebound from its lows in 2020 caused by the global COVID-19 pandemic. Free cash flow was lower by $7.1 million as compared to the prior year period as a result of Ciner Wyoming's decision in August of 2020 to suspend its quarterly distributions in an effort to achieve greater financial and liquidity flexibility as a result of the COVID-19 pandemic. NRP does not expect Ciner Wyoming to resume regular cash distributions until they have greater visibility and confidence in the sustainability of the continuing improvement in global soda ash demand. Ciner Wyoming’s ability to pay future quarterly distributions will be dependent in part on its cash reserves, liquidity, total debt levels and anticipated capital expenditures.

NRP continues to believe Ciner Wyoming's facility is competitively positioned as one of the lowest cost producers of soda ash in the world, however, NRP expects the market to remain volatile as a result of ongoing uncertainties with COVID-19.

Corporate and Financing

Corporate and financing costs in the second quarter of 2021 improved $0.9 million as compared to the prior year period primarily due to lower interest expense as a result of less debt outstanding in 2021. Free cash flow improved $0.5 million in the second quarter of 2021 as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding in 2021.

As noted earlier, NRP declared a second quarter 2021 preferred unit distribution of $7.8 million which will be paid one-half in cash and one-half in kind. The indenture governing the 2025 parent company notes restricts NRP from paying more than one-half of the quarterly distribution on the preferred units in cash if NRP's consolidated leverage ratio exceeds 3.75x, and as of June 30, 2021, NRP's leverage ratio was 4.6x. NRP expects its leverage ratio to begin a sustained long-term decline as NRP continues to pay down debt. Under the terms of the partnership agreement, if NRP’s consolidated leverage ratio remains above 3.75x into 2022 and NRP remains unable to redeem any outstanding paid-in-kind preferred units, NRP would be required to temporarily suspend distributions on its common units until the leverage ratio drops below 3.75x and the outstanding paid-in-kind preferred units are redeemed. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs.

Conference Call

A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link http://www.directeventreg.com/registration/event/2296424. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website.

Withholding Information for Foreign Investors

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of mineral properties in the United States including interests in coal, industrial minerals and other natural resources. In addition, NRP owns an equity investment in Ciner Wyoming LLC, a trona ore mining and soda ash production business.

For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com.

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, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership’s common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, including Foresight Energy; Ciner Wyoming LLC’s trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; 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.

Non-GAAP Financial Measures

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

“Distributable cash flow” or "DCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures and distributions to non-controlling interest. DCF 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. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

“Free cash flow” or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as investing or financing activities and distributions to non-controlling interest. FCF is calculated before mandatory debt repayments. Free 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. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

"Cash flow cushion" is a non-GAAP financial measure that we define as free cash flow less one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and common unit distributions. Cash flow cushion 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. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.

"Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. Return on capital employed should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. Return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. The measure provides an indication of operating performance before the impact of leverage in the capital structure.

-Financial Tables and Reconciliation of Non-GAAP Measures Follow-

 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

Consolidated Statements of Comprehensive Income (Loss)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

June 30,

 

March 31,

 

June 30,

(In thousands, except per unit data)

2021

 

2020

 

2021

 

2021

 

2020

Revenues and other income

 

 

 

 

 

 

 

 

 

Coal royalty and other

$

33,611

 

 

$

31,666

 

 

$

32,927

 

 

$

66,538

 

 

$

63,099

 

Transportation and processing services

2,182

 

 

1,938

 

 

2,192

 

 

4,374

 

 

4,447

 

Equity (loss) in earnings of Ciner Wyoming

2,601

 

 

(3,058

)

 

1,973

 

 

4,574

 

 

3,214

 

Gain on asset sales and disposals

116

 

 

465

 

 

59

 

 

175

 

 

465

 

Total revenues and other income

$

38,510

 

 

$

31,011

 

 

$

37,151

 

 

$

75,661

 

 

$

71,225

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

$

5,170

 

 

$

8,217

 

 

$

5,552

 

 

$

10,722

 

 

$

13,419

 

Depreciation, depletion and amortization

4,871

 

 

2,062

 

 

5,092

 

 

9,963

 

 

4,074

 

General and administrative expenses

3,388

 

 

3,621

 

 

4,110

 

 

7,498

 

 

7,534

 

Asset impairments

16

 

 

132,283

 

 

4,043

 

 

4,059

 

 

132,283

 

Total operating expenses

$

13,445

 

 

$

146,183

 

 

$

18,797

 

 

$

32,242

 

 

$

157,310

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

$

25,065

 

 

$

(115,172

)

 

$

18,354

 

 

$

43,419

 

 

$

(86,085

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

$

(9,683

)

 

$

(10,329

)

 

$

(9,973

)

 

$

(19,656

)

 

$

(20,637

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

15,382

 

 

$

(125,501

)

 

$

8,381

 

 

$

23,763

 

 

$

(106,722

)

Less: income attributable to preferred unitholders

(7,842

)

 

(7,613

)

 

(7,727

)

 

(15,569

)

 

(15,113

)

Net income (loss) attributable to common unitholders and the general partner

$

7,540

 

 

$

(133,114

)

 

$

654

 

 

$

8,194

 

 

$

(121,835

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common unitholders

$

7,389

 

 

$

(130,452

)

 

$

641

 

 

$

8,030

 

 

$

(119,398

)

Net income (loss) attributable to the general partner

151

 

 

(2,662

)

 

13

 

 

164

 

 

(2,437

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common unit

 

 

 

 

 

 

 

 

 

Basic

$

0.60

 

 

$

(10.64

)

 

$

0.05

 

 

$

0.65

 

 

$

(9.74

)

Diluted

0.56

 

 

(10.64

)

 

0.05

 

 

0.65

 

 

(9.74

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

15,382

 

 

$

(125,501

)

 

$

8,381

 

 

$

23,763

 

 

$

(106,722

)

Comprehensive income from unconsolidated investment and other

2,533

 

 

1,359

 

 

732

 

 

3,265

 

 

336

 

Comprehensive income (loss)

$

17,915

 

 

$

(124,142

)

 

$

9,113

 

 

$

27,028

 

 

$

(106,386

)

 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

Consolidated Statements of Cash Flows

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

June 30,

 

March 31,

 

June 30,

(In thousands)

2021

 

2020

 

2021

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net income (loss)

$

15,382

 

 

$

(125,501

)

 

$

8,381

 

 

$

23,763

 

 

$

(106,722

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations:

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

4,871

 

 

2,062

 

 

5,092

 

 

9,963

 

 

4,074

 

Distributions from unconsolidated investment

 

 

7,105

 

 

3,920

 

 

3,920

 

 

14,210

 

Equity earnings from unconsolidated investment

(2,601

)

 

3,058

 

 

(1,973

)

 

(4,574

)

 

(3,214

)

Gain on asset sales and disposals

(116

)

 

(465

)

 

(59

)

 

(175

)

 

(465

)

Asset impairments

16

 

 

132,283

 

 

4,043

 

 

4,059

 

 

132,283

 

Bad debt expense

(737

)

 

3,847

 

 

383

 

 

(354

)

 

3,657

 

Unit-based compensation expense

593

 

 

924

 

 

1,126

 

 

1,719

 

 

1,653

 

Amortization of debt issuance costs and other

977

 

 

(1,534

)

 

269

 

 

1,246

 

 

(1,086

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

162

 

 

8,446

 

 

(3,331

)

 

(3,169

)

 

3,373

 

Accounts payable

(83

)

 

(44

)

 

(10

)

 

(93

)

 

49

 

Accrued liabilities

1,838

 

 

(915

)

 

(3,034

)

 

(1,196

)

 

(3,776

)

Accrued interest

(7,424

)

 

(7,351

)

 

7,133

 

 

(291

)

 

(291

)

Deferred revenue

677

 

 

2,202

 

 

(146

)

 

531

 

 

10,467

 

Other items, net

(171

)

 

(4,182

)

 

1,406

 

 

1,235

 

 

(4,122

)

Net cash provided by operating activities of continuing operations

$

13,384

 

 

$

19,935

 

 

$

23,200

 

 

$

36,584

 

 

$

50,090

 

Net cash provided by operating activities of discontinued operations

 

 

 

 

 

 

 

 

1,706

 

Net cash provided by operating activities

$

13,384

 

 

$

19,935

 

 

$

23,200

 

 

$

36,584

 

 

$

51,796

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

$

116

 

 

$

507

 

 

$

59

 

 

$

175

 

 

$

507

 

Return of long-term contract receivable

541

 

 

858

 

 

541

 

 

1,082

 

 

1,130

 

Acquisition of non-controlling interest in BRP

 

 

(1,000

)

 

 

 

 

 

(1,000

)

Net cash provided by investing activities of continuing operations

$

657

 

 

$

365

 

 

$

600

 

 

$

1,257

 

 

$

637

 

Net cash used in investing activities of discontinued operations

 

 

 

 

 

 

 

 

(66

)

Net cash provided by investing activities

$

657

 

 

$

365

 

 

$

600

 

 

$

1,257

 

 

$

571

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Debt repayments

$

(2,365

)

 

$

(2,365

)

 

$

(16,696

)

 

$

(19,061

)

 

$

(19,061

)

Distributions to common unitholders and the general partner

(5,672

)

 

 

 

(5,630

)

 

(11,302

)

 

(5,630

)

Distributions to preferred unitholders

(3,864

)

 

(7,613

)

 

(3,806

)

 

(7,670

)

 

(15,113

)

Contributions from discontinued operations

 

 

 

 

 

 

 

 

1,640

 

Acquisition of non-controlling interest in BRP

(1,000

)

 

 

 

 

 

(1,000

)

 

 

Other items

1

 

 

 

 

(691

)

 

(690

)

 

 

Net cash used in financing activities of continuing operations

$

(12,900

)

 

$

(9,978

)

 

$

(26,823

)

 

$

(39,723

)

 

$

(38,164

)

Net cash used in financing activities of discontinued operations

 

 

 

 

 

 

 

 

(1,640

)

Net cash used in financing activities

$

(12,900

)

 

$

(9,978

)

 

$

(26,823

)

 

$

(39,723

)

 

$

(39,804

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

$

1,141

 

 

$

10,322

 

 

$

(3,023

)

 

$

(1,882

)

 

$

12,563

 

Cash and cash equivalents at beginning of period

96,767

 

 

100,506

 

 

99,790

 

 

99,790

 

 

98,265

 

Cash and cash equivalents at end of period

$

97,908

 

 

$

110,828

 

 

$

96,767

 

 

$

97,908

 

 

$

110,828

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for interest

$

16,611

 

 

$

17,183

 

 

$

2,320

 

 

$

18,931

 

 

$

20,222

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Plant, equipment, mineral rights and other funded with accounts payable or accrued liabilities

$

 

 

$

924

 

 

$

992

 

 

$

 

 

$

924

 

Preferred unit distributions paid-in-kind

3,863

 

 

 

 

3,806

 

 

7,669

 

 

 

 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables

 

Consolidated Balance Sheets

 

 

June 30,

 

December 31,

(In thousands, except unit data)

2021

 

2020

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

97,908

 

 

$

99,790

 

Accounts receivable, net

15,322

 

 

12,322

 

Other current assets, net

4,038

 

 

5,080

 

Total current assets

$

117,268

 

 

$

117,192

 

Land

24,008

 

 

24,008

 

Mineral rights, net

447,155

 

 

460,373

 

Intangible assets, net

16,742

 

 

17,459

 

Equity in unconsolidated investment

266,433

 

 

262,514

 

Long-term contract receivable, net

32,514

 

 

33,264

 

Other long-term assets, net

6,085

 

 

7,067

 

Total assets

$

910,205

 

 

$

921,877

 

LIABILITIES AND CAPITAL

 

 

 

Current liabilities

 

 

 

Accounts payable

$

1,293

 

 

$

1,385

 

Accrued liabilities

5,746

 

 

7,733

 

Accrued interest

1,423

 

 

1,714

 

Current portion of deferred revenue

10,293

 

 

11,485

 

Current portion of long-term debt, net

39,060

 

 

39,055

 

Total current liabilities

$

57,815

 

 

$

61,372

 

Deferred revenue

51,793

 

 

50,069

 

Long-term debt, net

414,099

 

 

432,444

 

Other non-current liabilities

4,819

 

 

5,131

 

Total liabilities

$

528,526

 

 

$

549,016

 

Commitments and contingencies

 

 

 

Class A Convertible Preferred Units (261,420 and 253,750 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at June 30, 2021 and $1,700 per unit at December 31, 2020)

$

176,006

 

 

$

168,337

 

Partners’ capital:

 

 

 

Common unitholders’ interest (12,351,306 and 12,261,199 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

$

134,836

 

 

$

136,927

 

General partner’s interest

434

 

 

459

 

Warrant holders' interest

66,816

 

 

66,816

 

Accumulated other comprehensive income

3,587

 

 

322

 

Total partners’ capital

$

205,673

 

 

$

204,524

 

Total liabilities and capital

$

910,205

 

 

$

921,877

 

 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

Consolidated Statements of Partners' Capital

 

Common Unitholders

 

General

Partner

 

Warrant

Holders

 

Accumulated

Other

Comprehensive

Income

 

Partners'

Capital

Excluding

Non-

Controlling

Interest

 

Non-

Controlling

Interest

 

Total

Capital

 

(In thousands)

Units

 

Amounts

 

Balance at December 31, 2020

12,261

 

 

$

136,927

 

 

$

459

 

 

$

66,816

 

 

$

322

 

 

$

204,524

 

 

$

 

 

$

204,524

 

Net income (1)

 

 

8,213

 

 

168

 

 

 

 

 

 

8,381

 

 

 

 

8,381

 

Distributions to common unitholders and the general partner

 

 

(5,517

)

 

(113

)

 

 

 

 

 

(5,630

)

 

 

 

(5,630

)

Distributions to preferred unitholders

 

 

(7,461

)

 

(152

)

 

 

 

 

 

(7,613

)

 

 

 

(7,613

)

Issuance of unit-based awards

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

215

 

 

 

 

 

 

 

 

215

 

 

 

 

215

 

Capital contribution

 

 

 

 

32

 

 

 

 

 

 

32

 

 

 

 

32

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

732

 

 

732

 

 

 

 

732

 

Balance at March 31, 2021

12,351

 

 

$

132,377

 

 

$

394

 

 

$

66,816

 

 

$

1,054

 

 

$

200,641

 

 

$

 

 

$

200,641

 

Net income (2)

 

 

15,074

 

 

308

 

 

 

 

 

 

15,382

 

 

 

 

15,382

 

Distributions to common unitholders and general partner

 

 

(5,559

)

 

(113

)

 

 

 

 

 

(5,672

)

 

 

 

(5,672

)

Distributions to preferred unitholders

 

 

(7,571

)

 

(155

)

 

 

 

 

 

(7,726

)

 

 

 

(7,726

)

Unit-based awards amortization and vesting

 

 

515

 

 

 

 

 

 

 

 

515

 

 

 

 

515

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

2,533

 

 

2,533

 

 

 

 

2,533

 

Balance at June 30, 2021

12,351

 

 

$

134,836

 

 

$

434

 

 

$

66,816

 

 

$

3,587

 

 

$

205,673

 

 

$

 

 

$

205,673

 

___________________

(1)

Net income includes $7.7 million of income attributable to preferred unitholders that accumulated during the period, of which $7.6 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

(2)

Net income includes $7.8 million of income attributable to preferred unitholders that accumulated during the period, of which $7.7 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.
 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

 

Common Unitholders

 

General

Partner

 

Warrant

Holders

 

Accumulated

Other

Comprehensive

Loss

 

Partners'

Capital

Excluding

Non-

Controlling

Interest

 

Non-

Controlling

Interest

 

Total

Capital

 

(In thousands)

Units

 

Amounts

 

Balance at December 31, 2019

12,261

 

 

$

271,471

 

 

$

3,270

 

 

$

66,816

 

 

$

(2,594

)

 

$

338,963

 

 

$

(2,935

)

 

$

336,028

 

Cumulative effect of adoption of accounting standard

 

 

(3,833

)

 

(78

)

 

 

 

 

 

(3,911

)

 

 

 

(3,911

)

Net income (1)

 

 

18,403

 

 

376

 

 

 

 

 

 

18,779

 

 

 

 

18,779

 

Distributions to common unitholders and the general partner

 

 

(5,517

)

 

(113

)

 

 

 

 

 

(5,630

)

 

 

 

(5,630

)

Distributions to preferred unitholders

 

 

(7,350

)

 

(150

)

 

 

 

 

 

(7,500

)

 

 

 

(7,500

)

Unit-based awards amortization and vesting

 

 

673

 

 

 

 

 

 

 

 

673

 

 

 

 

673

 

Comprehensive loss from unconsolidated investment and other

 

 

 

 

 

 

 

 

(1,023

)

 

(1,023

)

 

 

 

(1,023

)

Balance at March 31, 2020

12,261

 

 

$

273,847

 

 

$

3,305

 

 

$

66,816

 

 

$

(3,617

)

 

$

340,351

 

 

$

(2,935

)

 

$

337,416

 

Net loss (2)

 

 

(122,991

)

 

(2,510

)

 

 

 

 

 

(125,501

)

 

 

 

(125,501

)

Distributions to preferred unitholders

 

 

(7,461

)

 

(152

)

 

 

 

 

 

(7,613

)

 

 

 

(7,613

)

Acquisition of non-controlling interest in BRP

 

 

(4,747

)

 

(97

)

 

 

 

 

 

(4,844

)

 

2,935

 

 

(1,909

)

Unit-based awards amortization and vesting

 

 

869

 

 

 

 

 

 

 

 

869

 

 

 

 

869

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

1,359

 

 

1,359

 

 

 

 

1,359

 

Balance at June 30, 2020

12,261

 

 

$

139,517

 

 

$

546

 

 

$

66,816

 

 

$

(2,258

)

 

$

204,621

 

 

$

 

 

$

204,621

 

___________________

(1)

Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

(2)

Net loss includes $7.6 million of income attributable to preferred unitholders that accumulated during the period, of which $7.5 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

The following tables present NRP's unaudited business results by segment for the three months ended June 30, 2021 and 2020 and March 31, 2021:

 

 

 

Operating Segments

 

 

 

 

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Revenues

 

$

35,793

 

 

$

2,601

 

 

$

 

 

$

38,394

 

Gain on asset sales and disposals

 

116

 

 

 

 

 

 

116

 

Total revenues and other income

 

$

35,909

 

 

$

2,601

 

 

$

 

 

$

38,510

 

Asset impairments

 

$

16

 

 

$

 

 

$

 

 

$

16

 

Net income (loss)

 

$

25,886

 

 

$

2,566

 

 

$

(13,070

)

 

$

15,382

 

Adjusted EBITDA (1)

 

$

30,774

 

 

$

(35

)

 

$

(3,388

)

 

$

27,351

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

32,028

 

 

$

(35

)

 

$

(18,609

)

 

$

13,384

 

Investing activities

 

$

657

 

 

$

 

 

$

 

 

$

657

 

Financing activities

 

$

(1,000

)

 

$

 

 

$

(11,900

)

 

$

(12,900

)

Distributable cash flow (1)

 

$

32,685

 

 

$

(35

)

 

$

(18,609

)

 

$

14,041

 

Free cash flow (1)

 

$

31,569

 

 

$

(35

)

 

$

(18,609

)

 

$

12,925

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

33,604

 

 

$

(3,058

)

 

$

 

 

$

30,546

 

Gain on asset sales and disposals

 

465

 

 

 

 

 

 

465

 

Total revenues and other income

 

$

34,069

 

 

$

(3,058

)

 

$

 

 

$

31,011

 

Asset impairments

 

$

132,283

 

 

$

 

 

$

 

 

$

132,283

 

Net loss

 

$

(108,479

)

 

$

(3,087

)

 

$

(13,935

)

 

$

(125,501

)

Adjusted EBITDA (1)

 

$

25,881

 

 

$

7,076

 

 

$

(3,621

)

 

$

29,336

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

31,953

 

 

$

7,077

 

 

$

(19,095

)

 

$

19,935

 

Investing activities

 

$

365

 

 

$

 

 

$

 

 

$

365

 

Financing activities

 

$

 

 

$

 

 

$

(9,978

)

 

$

(9,978

)

Distributable cash flow (1)

 

$

33,318

 

 

$

7,077

 

 

$

(19,095

)

 

$

21,300

 

Free cash flow (1)

 

$

31,811

 

 

$

7,077

 

 

$

(19,095

)

 

$

19,793

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

Revenues

 

$

35,119

 

 

$

1,973

 

 

$

 

 

$

37,092

 

Gain on asset sales and disposals

 

59

 

 

 

 

 

 

59

 

Total revenues and other income

 

$

35,178

 

 

$

1,973

 

 

$

 

 

$

37,151

 

Asset impairments

 

$

4,043

 

 

$

 

 

$

 

 

$

4,043

 

Net income (loss)

 

$

20,488

 

 

$

1,953

 

 

$

(14,060

)

 

$

8,381

 

Adjusted EBITDA (1)

 

$

29,646

 

 

$

3,900

 

 

$

(4,110

)

 

$

29,436

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

25,962

 

 

$

3,888

 

 

$

(6,650

)

 

$

23,200

 

Investing activities

 

$

600

 

 

$

 

 

$

 

 

$

600

 

Financing activities

 

$

(132

)

 

$

 

 

$

(26,691

)

 

$

(26,823

)

Distributable cash flow (1)

 

$

26,562

 

 

$

3,888

 

 

$

(6,650

)

 

$

23,800

 

Free cash flow (1)

 

$

26,503

 

 

$

3,888

 

 

$

(6,650

)

 

$

23,741

 

___________________

(1)

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

 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

The following table presents NRP's unaudited business results by segment for the six months ended June 30, 2021 and 2020:

 

 

 

Operating Business Segments

 

 

 

 

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Revenues

 

$

70,912

 

 

$

4,574

 

 

$

 

 

$

75,486

 

Gain on asset sales and disposals

 

175

 

 

 

 

 

 

175

 

Total revenues and other income

 

$

71,087

 

 

$

4,574

 

 

$

 

 

$

75,661

 

Asset impairments

 

$

4,059

 

 

$

 

 

$

 

 

$

4,059

 

Net income (loss)

 

$

46,374

 

 

$

4,519

 

 

$

(27,130

)

 

$

23,763

 

Adjusted EBITDA (1)

 

$

60,420

 

 

$

3,865

 

 

$

(7,498

)

 

$

56,787

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

57,990

 

 

$

3,853

 

 

$

(25,259

)

 

$

36,584

 

Investing activities

 

$

1,257

 

 

$

 

 

$

 

 

$

1,257

 

Financing activities

 

$

(1,132

)

 

$

 

 

$

(38,591

)

 

$

(39,723

)

Distributable cash flow (1)

 

$

59,247

 

 

$

3,853

 

 

$

(25,259

)

 

$

37,841

 

Free cash flow (1)

 

$

58,072

 

 

$

3,853

 

 

$

(25,259

)

 

$

36,666

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

67,546

 

 

$

3,214

 

 

$

 

 

$

70,760

 

Gain on asset sales and disposals

 

465

 

 

 

 

 

 

465

 

Total revenues and other income

 

$

68,011

 

 

$

3,214

 

 

$

 

 

$

71,225

 

Asset impairments

 

$

132,283

 

 

$

 

 

$

 

 

$

132,283

 

Net income (loss)

 

$

(81,735

)

 

$

3,169

 

 

$

(28,156

)

 

$

(106,722

)

Adjusted EBITDA (1)

 

$

54,637

 

 

$

14,165

 

 

$

(7,534

)

 

$

61,268

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

62,509

 

 

$

14,166

 

 

$

(26,585

)

 

$

50,090

 

Investing activities

 

$

637

 

 

$

 

 

$

 

 

$

637

 

Financing activities

 

$

 

 

$

 

 

$

(38,164

)

 

$

(38,164

)

Distributable cash flow (1) (2)

 

$

64,146

 

 

$

14,166

 

 

$

(26,585

)

 

$

51,661

 

Free cash flow (1)

 

$

62,639

 

 

$

14,166

 

 

$

(26,585

)

 

$

50,220

 

___________________

(1)

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

(2)

Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations.

 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

Operating Statistics - Coal Royalty and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(In thousands, except per ton data)

 

2021

 

2020

 

2021

 

2021

 

2020

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

405

 

 

87

 

 

120

 

 

525

 

 

414

 

Central

 

2,975

 

 

2,463

 

 

2,650

 

 

5,625

 

 

5,396

 

Southern

 

316

 

 

426

 

 

100

 

 

416

 

 

648

 

Total Appalachia

 

3,696

 

 

2,976

 

 

2,870

 

 

6,566

 

 

6,458

 

Illinois Basin

 

2,640

 

 

578

 

 

2,658

 

 

5,298

 

 

1,083

 

Northern Powder River Basin

 

185

 

 

340

 

 

1,059

 

 

1,244

 

 

867

 

Total coal sales volumes

 

6,521

 

 

3,894

 

 

6,587

 

 

13,108

 

 

8,408

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

$

4.45

 

 

$

2.74

 

 

$

3.64

 

 

$

4.27

 

 

$

2.01

 

Central

 

4.62

 

 

4.04

 

 

4.22

 

 

4.44

 

 

4.47

 

Southern

 

7.63

 

 

4.96

 

 

5.28

 

 

7.06

 

 

4.68

 

Illinois Basin

 

2.01

 

 

1.97

 

 

2.06

 

 

2.04

 

 

3.08

 

Northern Powder River Basin

 

4.15

 

 

3.15

 

 

3.37

 

 

3.49

 

 

3.75

 

Combined average coal royalty revenue per ton

 

3.69

 

 

3.73

 

 

3.22

 

 

3.45

 

 

4.11

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

$

1,804

 

 

$

238

 

 

$

437

 

 

$

2,241

 

 

$

831

 

Central

 

13,756

 

 

9,951

 

 

11,195

 

 

24,951

 

 

24,124

 

Southern

 

2,410

 

 

2,111

 

 

528

 

 

2,938

 

 

3,034

 

Total Appalachia

 

17,970

 

 

12,300

 

 

12,160

 

 

30,130

 

 

27,989

 

Illinois Basin

 

5,300

 

 

1,137

 

 

5,483

 

 

10,783

 

 

3,336

 

Northern Powder River Basin

 

768

 

 

1,071

 

 

3,573

 

 

4,341

 

 

3,248

 

Unadjusted coal royalty revenues

 

24,038

 

 

14,508

 

 

21,216

 

 

45,254

 

 

34,573

 

Coal royalty adjustment for minimum leases (2)

 

(5,740

)

 

(3,661

)

 

(5,851

)

 

(11,591

)

 

(4,624

)

Total coal royalty revenues

 

$

18,298

 

 

$

10,847

 

 

$

15,365

 

 

$

33,663

 

 

$

29,949

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues (2)

 

$

3,556

 

 

$

8,485

 

 

$

3,450

 

 

$

7,006

 

 

$

9,287

 

Minimum lease straight-line revenues (2)

 

4,869

 

 

4,987

 

 

6,096

 

 

10,965

 

 

8,796

 

Property tax revenues

 

1,587

 

 

761

 

 

1,469

 

 

3,056

 

 

2,360

 

Wheelage revenues

 

1,844

 

 

1,584

 

 

1,781

 

 

3,625

 

 

3,788

 

Coal overriding royalty revenues

 

976

 

 

683

 

 

1,859

 

 

2,835

 

 

2,005

 

Lease amendment revenues

 

772

 

 

890

 

 

868

 

 

1,640

 

 

1,733

 

Aggregates royalty revenues

 

456

 

 

271

 

 

454

 

 

910

 

 

847

 

Oil and gas royalty revenues

 

900

 

 

2,742

 

 

1,366

 

 

2,266

 

 

3,845

 

Other revenues

 

353

 

 

416

 

 

219

 

 

572

 

 

489

 

Total other revenues

 

$

15,313

 

 

$

20,819

 

 

$

17,562

 

 

$

32,875

 

 

$

33,150

 

Coal royalty and other

 

$

33,611

 

 

$

31,666

 

 

$

32,927

 

 

$

66,538

 

 

$

63,099

 

Transportation and processing services revenues

 

2,182

 

 

1,938

 

 

2,192

 

 

4,374

 

 

4,447

 

Gain on asset sales and disposals

 

116

 

 

465

 

 

59

 

 

175

 

 

465

 

Total Coal Royalty and Other segment revenues and other income

 

$

35,909

 

 

$

34,069

 

 

$

35,178

 

 

$

71,087

 

 

$

68,011

 

___________________

(1)

Northern Appalachia includes NRP's Hibbs Run property that has significant sales volumes, but a low fixed rate per ton.

(2)

Beginning April 1, 2020 and effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or minimum lease straight-line revenues due to contract modifications with Foresight Energy Resources LLC that fixed consideration paid to us over a two-year period.

 
 
 
 
 

Natural Resource Partners L.P.
Financial Tables
(Unaudited)

 

Adjusted EBITDA

 

 

 

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

25,886

 

 

$

2,566

 

 

$

(13,070

)

 

$

15,382

 

Less: equity earnings from unconsolidated investment

 

 

 

(2,601

)

 

 

 

(2,601

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

 

 

 

Add: interest expense, net

 

1

 

 

 

 

9,682

 

 

9,683

 

Add: depreciation, depletion and amortization

 

4,871

 

 

 

 

 

 

4,871

 

Add: asset impairments

 

16

 

 

 

 

 

 

16

 

Adjusted EBITDA

 

$

30,774

 

 

$

(35

)

 

$

(3,388

)

 

$

27,351

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Net loss

 

$

(108,479

)

 

$

(3,087

)

 

$

(13,935

)

 

$

(125,501

)

Less: equity earnings from unconsolidated investment

 

 

 

3,058

 

 

 

 

3,058

 

Add: total distributions from unconsolidated investment

 

 

 

7,105

 

 

 

 

7,105

 

Add: interest expense, net

 

15

 

 

 

 

10,314

 

 

10,329

 

Add: depreciation, depletion and amortization

 

2,062

 

 

 

 

 

 

2,062

 

Add: asset impairments

 

132,283

 

 

 

 

 

 

132,283

 

Adjusted EBITDA

 

$

25,881

 

 

$

7,076

 

 

$

(3,621

)

 

$

29,336

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

20,488

 

 

$

1,953

 

 

(14,060

)

 

$

8,381

 

Less: equity earnings from unconsolidated investment

 

 

 

(1,973

)

 

 

 

(1,973

)

Add: total distributions from unconsolidated investment

 

 

 

3,920

 

 

 

 

3,920

 

Add: interest expense, net

 

23

 

 

 

 

9,950

 

 

9,973

 

Add: depreciation, depletion and amortization

 

5,092

 

 

 

 

 

 

5,092

 

Add: asset impairments

 

4,043

 

 

 

 

 

 

4,043

 

Adjusted EBITDA

 

$

29,646

 

 

$

3,900

 

 

$

(4,110

)

 

$

29,436

 

 
 
 
 
 

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)

 

Adjusted EBITDA

 

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

46,374

 

 

$

4,519

 

 

$

(27,130

)

 

$

23,763

 

Less: equity earnings from unconsolidated investment

 

 

 

(4,574

)

 

 

 

(4,574

)

Add: total distributions from unconsolidated investment

 

 

 

3,920

 

 

 

 

3,920

 

Add: interest expense, net

 

24

 

 

 

 

19,632

 

 

19,656

 

Add: depreciation, depletion and amortization

 

9,963

 

 

 

 

 

 

9,963

 

Add: asset impairments

 

4,059

 

 

 

 

 

 

4,059

 

Adjusted EBITDA

 

$

60,420

 

 

$

3,865

 

 

$

(7,498

)

 

$

56,787

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(81,735

)

 

$

3,169

 

 

$

(28,156

)

 

$

(106,722

)

Less: equity earnings from unconsolidated investment

 

 

 

(3,214

)

 

 

 

(3,214

)

Add: total distributions from unconsolidated investment

 

 

 

14,210

 

 

 

 

14,210

 

Add: interest expense, net

 

15

 

 

 

 

20,622

 

 

20,637

 

Add: depreciation, depletion and amortization

 

4,074

 

 

 

 

 

 

4,074

 

Add: asset impairments

 

132,283

 

 

 

 

 

 

132,283

 

Adjusted EBITDA

 

$

54,637

 

 

$

14,165

 

 

$

(7,534

)

 

$

61,268

 

 
 
 
 
 

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)

 

Distributable Cash Flow and Free Cash Flow

 

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

32,028

 

 

$

(35

)

 

$

(18,609

)

 

$

13,384

 

Add: proceeds from asset sales and disposals

 

116

 

 

 

 

 

 

116

 

Add: return of long-term contract receivable

 

541

 

 

 

 

 

 

541

 

Distributable cash flow

 

$

32,685

 

 

$

(35

)

 

$

(18,609

)

 

$

14,041

 

Less: proceeds from asset sales and disposals

 

(116

)

 

 

 

 

 

(116

)

Less: acquisition costs

 

(1,000

)

 

 

 

 

 

(1,000

)

Free cash flow

 

$

31,569

 

 

$

(35

)

 

$

(18,609

)

 

$

12,925

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

31,953

 

 

$

7,077

 

 

$

(19,095

)

 

$

19,935

 

Add: proceeds from asset sales and disposals

 

507

 

 

 

 

 

 

507

 

Add: return of long-term contract receivable

 

858

 

 

 

 

 

 

858

 

Distributable cash flow

 

$

33,318

 

 

$

7,077

 

 

$

(19,095

)

 

$

21,300

 

Less: proceeds from asset sales and disposals

 

(507

)

 

 

 

 

 

(507

)

Less: acquisition costs

 

(1,000

)

 

 

 

 

 

(1,000

)

Free cash flow

 

$

31,811

 

 

$

7,077

 

 

$

(19,095

)

 

$

19,793

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2021

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

25,962

 

 

$

3,888

 

 

$

(6,650

)

 

$

23,200

 

Add: proceeds from asset sales and disposals

 

59

 

 

 

 

 

 

59

 

Add: return of long-term contract receivable

 

541

 

 

 

 

 

 

541

 

Distributable cash flow

 

$

26,562

 

 

$

3,888

 

 

$

(6,650

)

 

$

23,800

 

Less: proceeds from asset sales and disposals

 

(59

)

 

 

 

 

 

(59

)

Less: acquisition costs

 

 

 

 

 

 

 

 

Free cash flow

 

$

26,503

 

 

$

3,888

 

 

$

(6,650

)

 

$

23,741

 

 
 
 
 
 

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)

 

Distributable Cash Flow and Free Cash Flow

 

 

 

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

57,990

 

 

$

3,853

 

 

$

(25,259

)

 

$

36,584

 

Add: proceeds from asset sales and disposals

 

175

 

 

 

 

 

 

175

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

Add: return of long-term contract receivable

 

1,082

 

 

 

 

 

 

1,082

 

Distributable cash flow

 

$

59,247

 

 

$

3,853

 

 

$

(25,259

)

 

$

37,841

 

Less: proceeds from asset sales and disposals

 

(175

)

 

 

 

 

 

(175

)

Less: acquisition costs

 

(1,000

)

 

 

 

 

 

(1,000

)

Free cash flow

 

$

58,072

 

 

$

3,853

 

 

$

(25,259

)

 

$

36,666

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

62,509

 

 

$

14,166

 

 

$

(26,585

)

 

$

50,090

 

Add: proceeds from asset sales and disposals

 

507

 

 

 

 

 

 

507

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(66

)

Add: return of long-term contract receivable

 

1,130

 

 

 

 

 

 

1,130

 

Distributable cash flow

 

$

64,146

 

 

$

14,166

 

 

$

(26,585

)

 

$

51,661

 

Less: proceeds from asset sales and disposals

 

(507

)

 

 

 

 

 

(507

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

66

 

Less: acquisition costs

 

(1,000

)

 

 

 

 

 

(1,000

)

Free cash flow

 

$

62,639

 

 

$

14,166

 

 

$

(26,585

)

 

$

50,220

 

 
 
 

LTM Free Cash Flow and Cash Flow Cushion

 

 

 

 

 

 

 

For the Three Months Ended

 

 

(In thousands)

 

September 30,

2020

 

December 31,

2020

 

March 31,

2021

 

June 30,

2021

 

Last 12

Months

Net cash provided by operating activities of continuing operations

 

$

24,323

 

 

$

13,155

 

 

$

23,200

 

 

$

13,384

 

 

$

74,062

 

Add: proceeds from asset sales and disposals

 

 

 

116

 

 

59

 

 

116

 

 

291

 

Add: proceeds from sale of discontinued operations

 

 

 

1

 

 

 

 

 

 

1

 

Add: return of long-term contract receivable

 

332

 

 

660

 

 

541

 

 

541

 

 

2,074

 

Distributable cash flow

 

$

24,655

 

 

$

13,932

 

 

$

23,800

 

 

$

14,041

 

 

$

76,428

 

Less: proceeds from asset sales and disposals

 

 

 

(116

)

 

(59

)

 

(116

)

 

(291

)

Less: proceeds from sale of discontinued operations

 

 

 

(1

)

 

 

 

 

 

(1

)

Less: acquisition costs

 

 

 

 

 

 

 

(1,000

)

 

(1,000

)

Free cash flow

 

$

24,655

 

 

$

13,815

 

 

$

23,741

 

 

$

12,925

 

 

$

75,136

 

Less: mandatory Opco debt repayments

 

(6,780

)

 

(20,335

)

 

(16,696

)

 

(2,365

)

 

(46,176

)

Less: preferred unit distributions

 

(7,500

)

 

(3,750

)

 

(3,806

)

 

(3,864

)

 

(18,920

)

Less: common unit distributions

 

(5,630

)

 

(5,630

)

 

(5,630

)

 

(5,672

)

 

(22,562

)

Cash flow cushion

 

$

4,745

 

 

$

(15,900

)

 

$

(2,391

)

 

$

1,024

 

 

$

(12,522

)

 
 
 
 
 

Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)

 

Leverage Ratio

 

 

 

For the Three Months Ended

 

 

(In thousands)

 

September 30,

2020

 

December 31,

2020

 

March 31,

2021

 

June 30,

2021

 

Last 12

Months

Net income

 

$

7,216

 

 

$

14,687

 

 

$

8,381

 

 

$

15,382

 

 

$

45,666

 

Less: equity earnings from unconsolidated investment

 

(1,986

)

 

(5,528

)

 

(1,973

)

 

(2,601

)

 

(12,088

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

3,920

 

 

 

 

3,920

 

Add: interest expense, net

 

10,254

 

 

10,077

 

 

9,973

 

 

9,683

 

 

39,987

 

Add: depreciation, depletion and amortization

 

2,111

 

 

3,013

 

 

5,092

 

 

4,871

 

 

15,087

 

Add: asset impairments

 

934

 

 

2,668

 

 

4,043

 

 

16

 

 

7,661

 

Adjusted EBITDA

 

$

18,529

 

 

$

24,917

 

 

$

29,436

 

 

$

27,351

 

 

$

100,233

 

Debt—at June 30, 2021

 

 

 

 

 

 

 

 

 

$

458,819

 

Leverage Ratio (1)

 

 

 

 

 

 

 

 

 

4.6x

___________________

(1)

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of June 30, 2021 divided by the last twelve months' Adjusted EBITDA. Note that Adjusted EBITDA under the indenture governing NRP's 2025 parent company notes may be different than the amount shown above. However, NRP's last twelve months Leverage ratio as of June 30, 2021, was 4.6x as calculated under the indenture governing NRP's 2025 parent company notes.

 
 
 

Return on Capital Employed ("ROCE")

 

 

Coal Royalty

and Other

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

LTM Ended June 30, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

87,929

 

 

$

11,893

 

 

$

(54,156

)

 

$

45,666

 

Financing costs

 

94

 

 

 

 

39,955

 

 

40,049

 

Return

 

$

88,023

 

 

$

11,893

 

 

$

(14,201

)

 

$

85,715

 

 

 

 

 

 

 

 

 

 

As of June 30, 2020

 

 

 

 

 

 

 

 

Total assets

 

$

688,828

 

 

$

252,420

 

 

$

2,317

 

 

$

943,565

 

Less: total current liabilities excluding current debt

 

(14,202

)

 

 

 

(3,936

)

 

(18,138

)

Less: total long-term liabilities excluding long-term debt

 

(57,886

)

 

 

 

(446

)

 

(58,332

)

Capital employed

 

$

616,740

 

 

$

252,420

 

 

$

(2,065

)

 

$

867,095

 

 

 

 

 

 

 

 

 

 

Total partners' capital

 

$

616,740

 

 

$

252,420

 

 

$

(664,539

)

 

$

204,621

 

Class A convertible preferred units

 

 

 

 

 

164,587

 

 

164,587

 

Debt

 

 

 

 

 

497,887

 

 

497,887

 

Capital employed

 

$

616,740

 

 

$

252,420

 

 

$

(2,065

)

 

$

867,095

 

 

 

 

 

 

 

 

 

 

ROCE

 

14.3

%

 

4.7

%

 

N/A

 

 

9.9

%

 

 

 

 

 

 

 

 

 

Excluding asset impairments:

 

 

 

 

 

 

 

 

Return

 

$

88,023

 

 

$

11,893

 

 

$

(14,201

)

 

$

85,715

 

Add: asset impairments

 

7,661

 

 

 

 

 

 

7,661

 

Return excluding asset impairments

 

$

95,684

 

 

$

11,893

 

 

$

(14,201

)

 

$

93,376

 

 

 

 

 

 

 

 

 

 

ROCE excluding asset impairments

 

15.5

%

 

4.7

%

 

N/A

 

 

10.8

%

 

 

Tiffany Sammis
713-751-7515
tsammis@nrplp.com

Source: Natural Resource Partners L.P.

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