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Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2021 Results

03/15/2022

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

 

 

For the Three

Months Ended

 

For the Year

Ended

(In thousands) (Unaudited)

 

December 31, 2021

Operating cash flow

 

$

55,161

 

$

121,804

Free cash flow (1)

 

 

55,702

 

 

122,967

Cash flow cushion (last twelve months) (1)

 

 

 

 

36,172

 

 

 

 

 

Net income

 

$

55,641

 

$

108,902

Adjusted EBITDA (1)

 

 

66,850

 

 

161,354

 

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

"Strong demand for metallurgical coal, thermal coal and soda ash in the fourth quarter produced one of the best quarters in terms of free cash flow generation in the Partnership’s history," stated Craig Nunez, NRP's President & Chief Operating Officer. "While COVID-19 remains a risk factor for the global economy, we expect to generate robust free cash flow in the months ahead and plan to continue using that cash to pay down debt, solidify our capital structure and maintain common unit distributions."

Mr. Nunez continued, "We also closed our first carbon sequestration transaction in the fourth quarter, receiving $13.8 million in exchange for agreeing to sequester 1.1 million tonnes of carbon dioxide ("CO2") in our West Virginia forestland. We announced our second carbon sequestration transaction earlier this quarter after granting Denbury the right to develop a world-class subsurface CO2 sequestration project on 75,000 acres of underground pore space we control in southwest Alabama, which Denbury believes has the potential to store over 300 million tonnes of CO2. We expect this project, if developed, to be the first of what will potentially be numerous subsurface carbon sequestration projects conducted on the approximately 3.5 million acres where we own the rights to sequester CO2 underground across the United States. These projects have the potential to provide important benefits to the environment and add significant value to NRP over the coming years.”

NRP's liquidity was $235.5 million at December 31, 2021, consisting of $135.5 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

NRP redeemed at par all 19,321 of its paid-in-kind 12.0% Class A Convertible Preferred Units for $19.6 million in cash in accordance with their terms and including accrued interest. Following the redemption, no paid-in-kind preferred units remain outstanding. Additionally, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit and a $7.5 million cash distribution on the preferred units. 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.

Segment Performance

Mineral Rights (segment formerly named Coal Royalty and Other)

NRP has changed the name of its Coal Royalty and Other business segment to Mineral Rights. This name change highlights NRP’s vast mineral ownership interests as well as its intensifying focus on leveraging the Partnership's asset footprint across the United States, including subsurface carbon sequestration rights, to become a key player in the transitional energy economy for the years to come. There has been no change to the composition of this reportable business segment or the structure of NRP's internal organization in connection with this name change.

Mineral Rights net income for the fourth quarter and full year of 2021 increased $38.1 million and $183.6 million, respectively, as compared to the prior year periods. Free cash flow for the fourth quarter and full year of 2021 increased $34.1 million and $35.1 million, respectively, as compared to the prior year periods. These increases were primarily due to stronger metallurgical coal demand and pricing in 2021 and $13.8 million of cash received in the fourth quarter of 2021 from the forestland carbon sequestration transaction. In addition, full year 2021 net income improved due to $130.8 million of higher asset impairments recorded in 2020. Approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal in the fourth quarter of 2021.

Metallurgical coal markets have rebounded significantly from the lows seen in 2020 to record high pricing 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 also significantly improved from the lows seen in 2020, however NRP did not have meaningful sensitivity to thermal coal price movements in 2021 since the substantial majority of NRP's thermal cash flows were fixed pursuant to a contract with Foresight Energy that went into effect as it emerged from bankruptcy in 2020. That contract expired at the end of 2021 and NRP began receiving traditional royalty payments in January 2022. While NRP may benefit from improved thermal coal demand and pricing in the near term, thermal coal markets still face the long-term challenges presented by competition from natural gas and the secular shift to renewable energy.

In addition, NRP continues to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities 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 additional cash flows being realized from further activities is uncertain, NRP believes its large ownership footprint throughout the United States will provide additional opportunities to create value in this regard with minimal capital investment.

Soda Ash

In December, a publicly-traded Turkish conglomerate, Sisecam, acquired a majority stake in the managing partner of Sisecam Wyoming LLC, the business formerly known as Ciner Wyoming LLC. Sisecam brings extensive experience and knowledge to NRP's soda ash partnership given its soda ash operating experience in Turkey, Bulgaria and Europe, as well as its container and flat glass manufacturing around the world. NRP looks forward to working with Sisecam to build on the significant value realized by the soda ash partnership with the Ciner Group, which continues to own a minority stake in the partnership.

Soda ash net income in the fourth quarter and full year of 2021 increased $5.1 million and $11.2 million, respectively, as compared to the prior year period as demand and pricing for soda ash continues to improve globally from the lows caused by the COVID-19 pandemic. As a result of the soda ash segment's improved performance, Sisecam Wyoming reinstated regular quarterly cash distributions in the fourth quarter of 2021, which were previously suspended since the third quarter of 2020. Accordingly, free cash flow in the fourth quarter of 2021 increased $7.3 million as compared to the prior year period, but decreased $2.9 million for the full year of 2021 as compared to the prior year due to the regular quarterly cash distributions being suspended until the fourth quarter of 2021.

Corporate and Financing

Corporate and financing costs in the fourth quarter and full year of 2021 increased by $2.2 million and $1.0 million, respectively, as compared to the prior year periods, primarily due to an increase in incentive compensation as a result of significantly improved operating results in 2021, partially offset by lower interest expense as a result of less debt outstanding. Free cash flow in the fourth quarter and full year of 2021 improved $0.4 million and $2.1 million, respectively, as compared to prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2021.

As noted earlier, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit of NRP and a $7.5 million cash distribution on the preferred units. NRP's consolidated leverage ratio fell from 4.6x at December 31, 2020 to 2.7x at December 31, 2021 and expects its leverage ratio to continue to decline for the foreseeable future.

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: https://conferencingportals.com/event/kfJdSHYP. 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.

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 properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash.

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 redemption of PIK units, common unit distributions and warrant cash settlements. 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 Year Ended

 

December 31,

 

September 30,

 

December 31,

(In thousands, except per unit data)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

Revenues and other income

 

 

 

 

 

 

 

 

 

Royalty and other mineral rights

$

70,774

 

$

31,327

 

$

47,884

 

$

185,196

 

 

$

120,166

 

Transportation and processing services

 

2,507

 

 

 

2,194

 

 

 

2,171

 

 

 

9,052

 

 

 

8,845

 

Equity in earnings of Sisecam Wyoming

 

10,625

 

 

 

5,528

 

 

 

6,672

 

 

 

21,871

 

 

 

10,728

 

Gain on asset sales and disposals

 

2

 

 

 

116

 

 

 

68

 

 

 

245

 

 

 

581

 

Total revenues and other income

$

83,908

 

 

$

39,165

 

 

$

56,795

 

 

$

216,364

 

 

$

140,320

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

$

7,973

 

 

$

5,595

 

 

$

8,354

 

 

$

27,049

 

 

$

24,795

 

Depreciation, depletion and amortization

 

3,930

 

 

 

3,013

 

 

 

5,182

 

 

 

19,075

 

 

 

9,198

 

General and administrative expenses

 

5,810

 

 

 

3,125

 

 

 

4,052

 

 

 

17,360

 

 

 

14,293

 

Asset impairments

 

986

 

 

 

2,668

 

 

 

57

 

 

 

5,102

 

 

 

135,885

 

Total operating expenses

$

18,699

 

 

$

14,401

 

 

$

17,645

 

 

$

68,586

 

 

$

184,171

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

$

65,209

 

 

$

24,764

 

 

$

39,150

 

 

$

147,778

 

 

$

(43,851

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

$

(9,568

)

 

$

(10,077

)

 

$

(9,652

)

 

$

(38,876

)

 

$

(40,968

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

55,641

 

 

$

14,687

 

 

$

29,498

 

 

$

108,902

 

 

$

(84,819

)

Less: income attributable to preferred unitholders

 

(8,079

)

 

 

(7,612

)

 

 

(7,961

)

 

 

(31,609

)

 

 

(30,225

)

Net income (loss) attributable to common unitholders and the

general partner

$

47,562

 

 

$

7,075

 

 

$

21,537

 

 

$

77,293

 

 

$

(115,044

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common unitholders

$

46,611

 

 

$

6,934

 

 

$

21,106

 

 

$

75,747

 

 

$

(112,743

)

Net income (loss) attributable to the general partner

 

951

 

 

 

141

 

 

 

431

 

 

 

1,546

 

 

 

(2,301

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per common unit

 

 

 

 

 

 

 

 

 

Basic

$

3.77

 

 

$

0.57

 

 

$

1.71

 

 

$

6.14

 

 

$

(9.20

)

Diluted

 

2.42

 

 

 

0.56

 

 

 

1.10

 

 

 

4.81

 

 

 

(9.20

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

55,641

 

 

$

14,687

 

 

$

29,498

 

 

$

108,902

 

 

$

(84,819

)

Comprehensive income (loss) from unconsolidated

investment and other

 

(4,580

)

 

 

152

 

 

 

4,204

 

 

 

2,889

 

 

 

2,916

 

Comprehensive income (loss)

$

51,061

 

 

$

14,839

 

 

$

33,702

 

 

$

111,791

 

 

$

(81,903

)

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

December 31,

 

September 30,

 

December 31,

(In thousands)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net income (loss)

$

55,641

 

 

$

14,687

 

 

$

29,498

 

 

$

108,902

 

 

$

(84,819

)

Adjustments to reconcile net income (loss) to net cash

provided by operating activities of continuing operations:

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

3,930

 

 

 

3,013

 

 

 

5,182

 

 

 

19,075

 

 

 

9,198

 

Distributions from unconsolidated investment

 

7,350

 

 

 

 

 

 

 

 

 

11,270

 

 

 

14,210

 

Equity earnings from unconsolidated investment

 

(10,625

)

 

 

(5,528

)

 

 

(6,672

)

 

 

(21,871

)

 

 

(10,728

)

Gain on asset sales and disposals

 

(2

)

 

 

(116

)

 

 

(68

)

 

 

(245

)

 

 

(581

)

Asset impairments

 

986

 

 

 

2,668

 

 

 

57

 

 

 

5,102

 

 

 

135,885

 

Bad debt expense

 

857

 

 

 

86

 

 

 

2,069

 

 

 

2,572

 

 

 

4,001

 

Unit-based compensation expense

 

1,202

 

 

 

1,004

 

 

 

1,118

 

 

 

4,039

 

 

 

3,570

 

Amortization of debt issuance costs and other

 

366

 

 

 

832

 

 

 

653

 

 

 

2,265

 

 

 

1,323

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(2,083

)

 

 

4,859

 

 

 

(9,163

)

 

 

(14,415

)

 

 

12,853

 

Accounts payable

 

481

 

 

 

14

 

 

 

182

 

 

 

570

 

 

 

207

 

Accrued liabilities

 

3,859

 

 

 

780

 

 

 

357

 

 

 

3,020

 

 

 

(2,205

)

Accrued interest

 

(7,472

)

 

 

(7,559

)

 

 

7,262

 

 

 

(501

)

 

 

(602

)

Deferred revenue

 

2,428

 

 

 

(461

)

 

 

(2,652

)

 

 

307

 

 

 

9,733

 

Other items, net

 

(1,757

)

 

 

(1,124

)

 

 

2,236

 

 

 

1,714

 

 

 

(4,477

)

Net cash provided by operating activities of

continuing operations

$

55,161

 

 

$

13,155

 

 

$

30,059

 

 

$

121,804

 

 

$

87,568

 

Net cash provided by operating activities of

discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

1,706

 

Net cash provided by operating activities

$

55,161

 

 

$

13,155

 

 

$

30,059

 

 

$

121,804

 

 

$

89,274

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

$

 

 

$

116

 

 

$

74

 

 

$

249

 

 

$

623

 

Return of long-term contract receivable

 

541

 

 

 

660

 

 

 

540

 

 

 

2,163

 

 

 

2,122

 

Acquisition of non-controlling interest in BRP

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,000

)

Net cash provided by investing activities of continuing operations

$

541

 

 

$

776

 

 

$

614

 

 

$

2,412

 

 

$

1,745

 

Net cash provided by (used in) investing activities of discontinued operations

 

 

 

 

1

 

 

 

 

 

 

 

 

 

(65

)

Net cash provided by investing activities

$

541

 

 

$

777

 

 

$

614

 

 

$

2,412

 

 

$

1,680

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Debt repayments

$

(20,335

)

 

$

(20,335

)

 

$

 

 

$

(39,396

)

 

$

(46,176

)

Distributions to common unitholders and the general partner

 

(5,672

)

 

 

(5,630

)

 

 

(5,671

)

 

 

(22,645

)

 

 

(16,890

)

Distributions to preferred unitholders

 

(3,980

)

 

 

(3,750

)

 

 

(3,921

)

 

 

(15,571

)

 

 

(26,363

)

Warrant settlement

 

(9,183

)

 

 

 

 

 

 

 

 

(9,183

)

 

 

 

Contributions from discontinued operations

 

 

 

 

1

 

 

 

 

 

 

 

 

 

1,641

 

Acquisition of non-controlling interest in BRP

 

 

 

 

 

 

 

 

 

 

(1,000

)

 

 

 

Other items

 

(1

)

 

 

 

 

 

 

 

 

(691

)

 

 

 

Net cash used in financing activities of continuing operations

$

(39,171

)

 

$

(29,714

)

 

$

(9,592

)

 

$

(88,486

)

 

$

(87,788

)

Net cash used in financing activities of discontinued operations

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1,641

)

Net cash used in financing activities

$

(39,171

)

 

$

(29,715

)

 

$

(9,592

)

 

$

(88,486

)

 

$

(89,429

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

$

16,531

 

 

$

(15,783

)

 

$

21,081

 

 

$

35,730

 

 

$

1,525

 

Cash and cash equivalents at beginning of period

 

118,989

 

 

 

115,573

 

 

 

97,908

 

 

 

99,790

 

 

 

98,265

 

Cash and cash equivalents at end of period

$

135,520

 

 

$

99,790

 

 

$

118,989

 

 

$

135,520

 

 

$

99,790

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for interest

$

16,549

 

 

$

17,118

 

 

$

1,898

 

 

$

37,378

 

 

$

39,830

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Plant, equipment, mineral rights and other funded with

accounts payable or accrued liabilities

$

 

 

$

23

 

 

$

 

 

$

 

 

$

970

 

Preferred unit distributions paid-in-kind

 

3,980

 

 

 

3,750

 

 

 

3,921

 

 

 

15,571

 

 

 

3,750

 

 

Natural Resource Partners L.P.

Financial Tables

Consolidated Balance Sheets

 

 

December 31,

(In thousands, except unit data)

 

2021

 

 

2020

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

135,520

 

$

99,790

Accounts receivable, net

 

24,538

 

 

12,322

Other current assets, net

 

2,723

 

 

5,080

Total current assets

$

162,781

 

$

117,192

Land

 

24,008

 

 

24,008

Mineral rights, net

 

437,697

 

 

460,373

Intangible assets, net

 

16,130

 

 

17,459

Equity in unconsolidated investment

 

276,004

 

 

262,514

Long-term contract receivable, net

 

31,371

 

 

33,264

Other long-term assets, net

 

5,832

 

 

7,067

Total assets

$

953,823

 

$

921,877

LIABILITIES AND CAPITAL

 

 

 

Current liabilities

 

 

 

Accounts payable

$

1,956

 

$

1,385

Accrued liabilities

 

10,297

 

 

7,733

Accrued interest

 

1,213

 

 

1,714

Current portion of deferred revenue

 

11,817

 

 

11,485

Current portion of long-term debt, net

 

39,102

 

 

39,055

Total current liabilities

$

64,385

 

$

61,372

Deferred revenue

 

50,045

 

 

50,069

Long-term debt, net

 

394,443

 

 

432,444

Other non-current liabilities

 

5,018

 

 

5,131

Total liabilities

$

513,891

 

$

549,016

Commitments and contingencies

 

 

 

Class A Convertible Preferred Units (269,321 and 253,750 units issued and outstanding at

December 31, 2021 and 2020, respectively, at $1,000 par value per unit; liquidation

preference of $1,850 per unit and $1,700 per unit at December 31, 2021 and 2020,

respectively)

$

183,908

 

$

168,337

Partners’ capital:

 

 

 

Common unitholders’ interest (12,351,306 and 12,261,199 units issued and outstanding

at December 30, 2021 and 2020, respectively)

$

203,062

 

$

136,927

General partner’s interest

 

1,787

 

 

459

Warrant holders' interest

 

47,964

 

 

66,816

Accumulated other comprehensive income

 

3,211

 

 

322

Total partners’ capital

$

256,024

 

$

204,524

Total liabilities and capital

$

953,823

 

$

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 (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 loss (1)

 

 

(83,123

)

 

 

(1,696

)

 

 

 

 

 

 

 

 

(84,819

)

 

 

 

 

 

(84,819

)

Distributions to common

unitholders and the general

partner

 

 

(16,552

)

 

 

(338

)

 

 

 

 

 

 

 

 

(16,890

)

 

 

 

 

 

(16,890

)

Distributions to preferred

unitholders

 

 

(29,511

)

 

 

(602

)

 

 

 

 

 

 

 

 

(30,113

)

 

 

 

 

 

(30,113

)

Acquisition of non-controlling

interest in BRP

 

 

(4,747

)

 

 

(97

)

 

 

 

 

 

 

 

 

(4,844

)

 

 

2,935

 

 

 

(1,909

)

Unit-based awards amortization and vesting

 

 

3,222

 

 

 

 

 

 

 

 

 

 

 

 

3,222

 

 

 

 

 

 

3,222

 

Comprehensive income from

unconsolidated investment and

other

 

 

 

 

 

 

 

 

 

 

 

2,916

 

 

 

2,916

 

 

 

 

 

 

2,916

 

Balance at December 31, 2020

12,261

 

$

136,927

 

 

$

459

 

 

$

66,816

 

 

$

322

 

 

$

204,524

 

 

$

 

 

$

204,524

 

Net income (2)

 

 

106,724

 

 

 

2,178

 

 

 

 

 

 

 

 

 

108,902

 

 

 

 

 

 

108,902

 

Distributions to common unitholders and the general partner

 

 

(22,192

)

 

 

(453

)

 

 

 

 

 

 

 

 

(22,645

)

 

 

 

 

 

(22,645

)

Distributions to preferred unitholders

 

 

(30,519

)

 

 

(623

)

 

 

 

 

 

 

 

 

(31,142

)

 

 

 

 

 

(31,142

)

Issuance of unit-based awards

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting

 

 

2,647

 

 

 

 

 

 

 

 

 

 

 

 

2,647

 

 

 

 

 

 

2,647

 

Capital contribution

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

32

 

Warrant settlement

 

 

9,475

 

 

 

194

 

 

 

(18,852

)

 

 

 

 

 

(9,183

)

 

 

 

 

 

(9,183

)

Comprehensive income from

unconsolidated investment and

other

 

 

 

 

 

 

 

 

 

 

 

2,889

 

 

 

2,889

 

 

 

 

 

 

2,889

 

Balance at December 31, 2021

12,351

 

$

203,062

 

 

$

1,787

 

 

$

47,964

 

 

$

3,211

 

 

$

256,024

 

 

$

 

 

$

256,024

 

 

(1) Net loss includes $30.2 million of income attributable to preferred unitholders that accumulated during the period, of which $29.6 million is allocated to the common unitholders and $0.6 million is allocated to the general partner.

(2) Net income includes $31.6 million of income attributable to preferred unitholders that accumulated during the period, of which $31.0 million is allocated to the common unitholders and $0.6 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 December 31, 2021 and 2020 and September 30, 2021:

 

 

Operating Segments

 

 

 

 

 

 

Mineral Rights

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended December 31, 2021

 

 

 

 

 

 

 

 

Revenues

 

$

73,281

 

$

10,625

 

 

$

 

 

$

83,906

 

Gain on asset sales and disposals

 

 

2

 

 

 

 

 

 

 

 

2

 

Total revenues and other income

 

$

73,283

 

$

10,625

 

 

$

 

 

$

83,908

 

Asset impairments

 

$

986

 

$

 

 

$

 

 

$

986

 

Net income (loss)

 

$

60,432

 

$

10,587

 

 

$

(15,378

)

 

$

55,641

 

Adjusted EBITDA (1)

 

$

65,348

 

$

7,312

 

 

$

(5,810

)

 

$

66,850

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

67,887

 

$

7,289

 

 

$

(20,015

)

 

$

55,161

 

Investing activities

 

$

541

 

$

 

 

$

 

 

$

541

 

Financing activities

 

$

 

$

 

 

$

(39,171

)

 

$

(39,171

)

Distributable cash flow (1)

 

$

68,428

 

$

7,289

 

 

$

(20,015

)

 

$

55,702

 

Free cash flow (1)

 

$

68,428

 

$

7,289

 

 

$

(20,015

)

 

$

55,702

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

33,521

 

$

5,528

 

 

$

 

 

$

39,049

 

Gain on asset sales and disposals

 

 

116

 

 

 

 

 

 

 

 

116

 

Total revenues and other income

 

$

33,637

 

$

5,528

 

 

$

 

 

$

39,165

 

Asset impairments

 

$

2,668

 

$

 

 

$

 

 

$

2,668

 

Net income (loss)

 

$

22,382

 

$

5,484

 

 

$

(13,179

)

 

$

14,687

 

Adjusted EBITDA (1)

 

$

28,086

 

$

(44

)

 

$

(3,125

)

 

$

24,917

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

33,655

 

$

(54

)

 

$

(20,446

)

 

$

13,155

 

Investing activities

 

$

776

 

$

 

 

$

 

 

$

776

 

Financing activities

 

$

 

$

 

 

$

(29,714

)

 

$

(29,714

)

Distributable cash flow (1) (2)

 

$

34,431

 

$

(54

)

 

$

(20,446

)

 

$

13,932

 

Free cash flow (1)

 

$

34,315

 

$

(54

)

 

$

(20,446

)

 

$

13,815

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

Revenues

 

$

50,055

 

$

6,672

 

 

$

 

 

$

56,727

 

Gain on asset sales and disposals

 

 

68

 

 

 

 

 

 

 

 

68

 

Total revenues and other income

 

$

50,123

 

$

6,672

 

 

$

 

 

$

56,795

 

Asset impairments

 

$

57

 

$

 

 

$

 

 

$

57

 

Net income (loss)

 

$

36,606

 

$

6,596

 

 

$

(13,704

)

 

$

29,498

 

Adjusted EBITDA (1)

 

$

41,845

 

$

(76

)

 

$

(4,052

)

 

$

37,717

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

33,968

 

$

(36

)

 

$

(3,873

)

 

$

30,059

 

Investing activities

 

$

614

 

$

 

 

$

 

 

$

614

 

Financing activities

 

$

 

$

 

 

$

(9,592

)

 

$

(9,592

)

Distributable cash flow (1)

 

$

34,582

 

$

(36

)

 

$

(3,873

)

 

$

30,673

 

Free cash flow (1)

 

$

34,508

 

$

(36

)

 

$

(3,873

)

 

$

30,599

 

 

(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)

The following table presents NRP's unaudited business results by segment for the year ended December 31, 2021 and 2020:

 

 

Operating Segments

 

 

 

 

 

 

Mineral Rights

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Year Ended December 31, 2021

 

 

 

 

 

 

 

 

Revenues

 

$

194,248

 

 

$

21,871

 

$

 

 

$

216,119

 

Gain on asset sales and disposals

 

 

245

 

 

 

 

 

 

 

 

245

 

Total revenues and other income

 

$

194,493

 

 

$

21,871

 

$

 

 

$

216,364

 

Asset impairments

 

$

5,102

 

 

$

 

$

 

 

$

5,102

 

Net income (loss)

 

$

143,412

 

 

$

21,702

 

$

(56,212

)

 

$

108,902

 

Adjusted EBITDA (1)

 

$

167,613

 

 

$

11,101

 

$

(17,360

)

 

$

161,354

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

159,845

 

 

$

11,106

 

$

(49,147

)

 

$

121,804

 

Investing activities

 

$

2,412

 

 

$

 

$

 

 

$

2,412

 

Financing activities

 

$

(1,132

)

 

$

 

$

(87,354

)

 

$

(88,486

)

Distributable cash flow (1)

 

$

162,257

 

 

$

11,106

 

$

(49,147

)

 

$

124,216

 

Free cash flow (1)

 

$

161,008

 

 

$

11,106

 

$

(49,147

)

 

$

122,967

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

129,011

 

 

$

10,728

 

$

 

 

$

139,739

 

Gain on asset sales and disposals

 

 

581

 

 

 

 

 

 

 

 

581

 

Total revenues and other income

 

$

129,592

 

 

$

10,728

 

$

 

 

$

140,320

 

Asset impairments

 

$

135,885

 

 

$

 

$

 

 

$

135,885

 

Net income (loss)

 

$

(40,180

)

 

$

10,543

 

$

(55,182

)

 

$

(84,819

)

Adjusted EBITDA (1)

 

$

104,982

 

 

$

14,025

 

$

(14,293

)

 

$

104,714

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

124,737

 

 

$

14,037

 

$

(51,206

)

 

$

87,568

 

Investing activities

 

$

1,745

 

 

$

 

$

 

 

$

1,745

 

Financing activities

 

$

 

 

$

 

$

(87,788

)

 

$

(87,788

)

Distributable cash flow (1) (2)

 

$

127,482

 

 

$

14,037

 

$

(51,206

)

 

$

90,248

 

Free cash flow (1)

 

$

125,859

 

 

$

14,037

 

$

(51,206

)

 

$

88,690

 

 

(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 - Mineral Rights

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

December 31,

 

September 30,

 

December 31,

(In thousands, except per ton data)

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2021

 

 

 

2020

 

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern

 

 

388

 

 

 

131

 

 

 

422

 

 

 

1,335

 

 

 

647

 

Central

 

 

3,455

 

 

 

2,468

 

 

 

3,199

 

 

 

12,279

 

 

 

10,111

 

Southern

 

 

513

 

 

 

69

 

 

 

642

 

 

 

1,571

 

 

 

889

 

Total Appalachia

 

 

4,356

 

 

 

2,668

 

 

 

4,263

 

 

 

15,185

 

 

 

11,647

 

Illinois Basin

 

 

1,401

 

 

 

1,540

 

 

 

2,689

 

 

 

9,388

 

 

 

3,381

 

Northern Powder River Basin

 

 

860

 

 

 

506

 

 

 

1,047

 

 

 

3,151

 

 

 

1,738

 

Gulf Coast

 

 

42

 

 

 

 

 

 

13

 

 

 

55

 

 

 

 

Total coal sales volumes

 

 

6,659

 

 

 

4,714

 

 

 

8,012

 

 

 

27,779

 

 

 

16,766

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern

 

$

8.81

 

 

$

2.92

 

 

$

7.18

 

 

$

6.51

 

 

$

2.36

 

Central

 

 

7.77

 

 

 

3.84

 

 

 

5.74

 

 

 

5.71

 

 

 

4.17

 

Southern

 

 

7.73

 

 

 

5.28

 

 

 

11.61

 

 

 

9.14

 

 

 

4.75

 

Illinois Basin

 

 

2.05

 

 

 

2.21

 

 

 

2.33

 

 

 

2.12

 

 

 

2.36

 

Northern Powder River Basin

 

 

3.41

 

 

 

3.11

 

 

 

3.71

 

 

 

3.54

 

 

 

3.50

 

Gulf Coast

 

 

0.62

 

 

 

 

 

 

0.54

 

 

 

0.60

 

 

 

 

Combined average coal royalty revenue per ton

 

 

6.01

 

 

 

3.23

 

 

 

4.87

 

 

 

4.47

 

 

 

3.70

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern

 

$

3,419

 

 

$

383

 

 

$

3,031

 

 

$

8,691

 

 

$

1,526

 

Central

 

 

26,841

 

 

 

9,481

 

 

 

18,357

 

 

 

70,149

 

 

 

42,207

 

Southern

 

 

3,965

 

 

 

364

 

 

 

7,452

 

 

 

14,355

 

 

 

4,221

 

Total Appalachia

 

 

34,225

 

 

 

10,228

 

 

 

28,840

 

 

 

93,195

 

 

 

47,954

 

Illinois Basin

 

 

2,873

 

 

 

3,403

 

 

 

6,261

 

 

 

19,917

 

 

 

7,973

 

Northern Powder River Basin

 

 

2,929

 

 

 

1,576

 

 

 

3,881

 

 

 

11,151

 

 

 

6,086

 

Gulf Coast

 

 

26

 

 

 

 

 

 

7

 

 

 

33

 

 

 

 

Unadjusted coal royalty revenues

 

 

40,053

 

 

 

15,207

 

 

 

38,989

 

 

 

124,296

 

 

 

62,013

 

Coal royalty adjustment for minimum leases

 

 

(2,059

)

 

 

(3,898

)

 

 

(6,557

)

 

 

(20,207

)

 

 

(10,145

)

Total coal royalty revenues

 

$

37,994

 

 

$

11,309

 

 

$

32,432

 

 

$

104,089

 

 

$

51,868

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

4,028

 

 

$

8,195

 

 

$

3,235

 

 

$

14,269

 

 

$

21,749

 

Minimum lease straight-line revenues

 

 

4,791

 

 

 

4,447

 

 

 

4,808

 

 

 

20,564

 

 

 

16,796

 

Forest CO2 sequestration revenues

 

 

13,790

 

 

 

 

 

 

 

 

 

13,790

 

 

 

 

Wheelage revenues

 

 

4,476

 

 

 

1,557

 

 

 

1,964

 

 

 

10,065

 

 

 

7,025

 

Property tax revenues

 

 

1,506

 

 

 

1,530

 

 

 

1,466

 

 

 

6,028

 

 

 

5,786

 

Coal overriding royalty revenues

 

 

775

 

 

 

1,658

 

 

 

757

 

 

 

4,367

 

 

 

4,977

 

Lease amendment revenues

 

 

1,537

 

 

 

859

 

 

 

1,519

 

 

 

4,696

 

 

 

3,450

 

Aggregates royalty revenues

 

 

550

 

 

 

649

 

 

 

429

 

 

 

1,889

 

 

 

1,717

 

Oil and gas royalty revenues

 

 

1,086

 

 

 

893

 

 

 

1,154

 

 

 

4,506

 

 

 

5,816

 

Other revenues

 

 

241

 

 

 

230

 

 

 

120

 

 

 

933

 

 

 

982

 

Total other revenues

 

$

32,780

 

 

$

20,018

 

 

$

15,452

 

 

$

81,107

 

 

$

68,298

 

Royalty and other mineral rights

 

$

70,774

 

 

$

31,327

 

 

$

47,884

 

 

$

185,196

 

 

$

120,166

 

Transportation and processing services revenues

 

 

2,507

 

 

 

2,194

 

 

 

2,171

 

 

 

9,052

 

 

 

8,845

 

Gain on asset sales and disposals

 

 

2

 

 

 

116

 

 

 

68

 

 

 

245

 

 

 

581

 

Total Mineral Rights segment revenues and other income

 

$

73,283

 

 

$

33,637

 

 

$

50,123

 

 

$

194,493

 

 

$

129,592

 

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Adjusted EBITDA

 

 

 

 

 

Mineral Rights

 

 

 

Corporate and Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended December 31, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

60,432

 

$

10,587

 

 

$

(15,378

)

 

$

55,641

 

Less: equity earnings from unconsolidated investment

 

 

 

 

(10,625

)

 

 

 

 

 

(10,625

)

Add: total distributions from unconsolidated investment

 

 

 

 

7,350

 

 

 

 

 

 

7,350

 

Add: interest expense, net

 

 

 

 

 

 

 

9,568

 

 

 

9,568

 

Add: depreciation, depletion and amortization

 

 

3,930

 

 

 

 

 

 

 

 

3,930

 

Add: asset impairments

 

 

986

 

 

 

 

 

 

 

 

986

 

Adjusted EBITDA

 

$

65,348

 

$

7,312

 

 

$

(5,810

)

 

$

66,850

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

Net income (loss)

 

$

22,382

 

$

5,484

 

 

$

(13,179

)

 

$

14,687

 

Less: equity earnings from unconsolidated investment

 

 

 

 

(5,528

)

 

 

 

 

 

(5,528

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

 

 

 

 

 

 

Add: interest expense, net

 

 

23

 

 

 

 

 

10,054

 

 

 

10,077

 

Add: depreciation, depletion and amortization

 

 

3,013

 

 

 

 

 

 

 

 

3,013

 

Add: asset impairments

 

 

2,668

 

 

 

 

 

 

 

 

2,668

 

Adjusted EBITDA

 

$

28,086

 

$

(44

)

 

$

(3,125

)

 

$

24,917

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

36,606

 

$

6,596

 

 

 

(13,704

)

 

$

29,498

 

Less: equity earnings from unconsolidated investment

 

 

 

 

(6,672

)

 

 

 

 

 

(6,672

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

 

 

 

 

 

 

Add: interest expense, net

 

 

 

 

 

 

 

9,652

 

 

 

9,652

 

Add: depreciation, depletion and amortization

 

 

5,182

 

 

 

 

 

 

 

 

5,182

 

Add: asset impairments

 

 

57

 

 

 

 

 

 

 

 

57

 

Adjusted EBITDA

 

$

41,845

 

$

(76

)

 

$

(4,052

)

 

$

37,717

 

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Adjusted EBITDA

 

 

 

Mineral Rights

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Year Ended December 31, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

143,412

 

 

$

21,702

 

 

$

(56,212

)

 

$

108,902

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(21,871

)

 

 

 

 

 

(21,871

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

11,270

 

 

 

 

 

 

11,270

 

Add: interest expense, net

 

 

24

 

 

 

 

 

 

38,852

 

 

 

38,876

 

Add: depreciation, depletion and amortization

 

 

19,075

 

 

 

 

 

 

 

 

 

19,075

 

Add: asset impairments

 

 

5,102

 

 

 

 

 

 

 

 

 

5,102

 

Adjusted EBITDA

 

$

167,613

 

 

$

11,101

 

 

$

(17,360

)

 

$

161,354

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(40,180

)

 

$

10,543

 

 

$

(55,182

)

 

$

(84,819

)

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(10,728

)

 

 

 

 

 

(10,728

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

14,210

 

 

 

 

 

 

14,210

 

Add: interest expense, net

 

 

79

 

 

 

 

 

 

40,889

 

 

 

40,968

 

Add: depreciation, depletion and amortization

 

 

9,198

 

 

 

 

 

 

 

 

 

9,198

 

Add: asset impairments

 

 

135,885

 

 

 

 

 

 

 

 

 

135,885

 

Adjusted EBITDA

 

$

104,982

 

 

$

14,025

 

 

$

(14,293

)

 

$

104,714

 

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

 

 

 

Mineral Rights

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended December 31, 2021

 

 

 

 

 

 

 

 

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

operations

 

$

67,887

 

 

$

7,289

 

 

$

(20,015

)

 

$

55,161

 

Add: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

 

 

 

 

Add: return of long-term contract receivable

 

 

541

 

 

 

 

 

 

 

 

 

541

 

Distributable cash flow

 

$

68,428

 

 

$

7,289

 

 

$

(20,015

)

 

$

55,702

 

Less: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

 

 

 

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

68,428

 

 

$

7,289

 

 

$

(20,015

)

 

$

55,702

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

541

 

 

$

 

 

$

 

 

$

541

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(39,171

)

 

 

(39,171

)

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

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

operations

 

$

33,655

 

 

$

(54

)

 

$

(20,446

)

 

$

13,155

 

Add: proceeds from asset sales and disposals

 

 

116

 

 

 

 

 

 

 

 

 

116

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

1

 

Add: return of long-term contract receivable

 

 

660

 

 

 

 

 

 

 

 

 

660

 

Distributable cash flow

 

$

34,431

 

 

$

(54

)

 

$

(20,446

)

 

$

13,932

 

Less: proceeds from asset sales and disposals

 

 

(116

)

 

 

 

 

 

 

 

 

(116

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(1

)

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

34,315

 

 

$

(54

)

 

$

(20,446

)

 

$

13,815

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

776

 

 

$

 

 

$

 

 

$

776

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(29,714

)

 

 

(29,714

)

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

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

operations

 

$

33,968

 

 

$

(36

)

 

$

(3,873

)

 

$

30,059

 

Add: proceeds from asset sales and disposals

 

 

74

 

 

 

 

 

 

 

 

 

74

 

Add: return of long-term contract receivable

 

 

540

 

 

 

 

 

 

 

 

 

540

 

Distributable cash flow

 

$

34,582

 

 

$

(36

)

 

$

(3,873

)

 

$

30,673

 

Less: proceeds from asset sales and disposals

 

 

(74

)

 

 

 

 

 

 

 

 

(74

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

34,508

 

 

$

(36

)

 

$

(3,873

)

 

$

30,599

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

614

 

 

$

 

 

$

 

 

$

614

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(9,592

)

 

 

(9,592

)

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

 

 

 

 

 

Mineral Rights

 

 

 

Corporate and

Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Year Ended December 31, 2021

 

 

 

 

 

 

 

 

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

operations

 

$

159,845

 

 

$

11,106

 

$

(49,147

)

 

$

121,804

 

Add: proceeds from asset sales and disposals

 

 

249

 

 

 

 

 

 

 

 

249

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Add: return of long-term contract receivable

 

 

2,163

 

 

 

 

 

 

 

 

2,163

 

Distributable cash flow

 

$

162,257

 

 

$

11,106

 

$

(49,147

)

 

$

124,216

 

Less: proceeds from asset sales and disposals

 

 

(249

)

 

 

 

 

 

 

 

(249

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Less: acquisition costs

 

 

(1,000

)

 

 

 

 

 

 

 

(1,000

)

Free cash flow

 

$

161,008

 

 

$

11,106

 

$

(49,147

)

 

$

122,967

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

2,412

 

 

$

 

$

 

 

$

2,412

 

Net cash used in financing activities

 

 

(1,132

)

 

 

 

 

(87,354

)

 

 

(88,486

)

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

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

operations

 

$

124,737

 

 

$

14,037

 

$

(51,206

)

 

$

87,568

 

Add: proceeds from asset sales and disposals

 

 

623

 

 

 

 

 

 

 

 

623

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

(65

)

Add: return of long-term contract receivable

 

 

2,122

 

 

 

 

 

 

 

 

2,122

 

Distributable cash flow

 

$

127,482

 

 

$

14,037

 

$

(51,206

)

 

$

90,248

 

Less: proceeds from asset sales and disposals

 

 

(623

)

 

 

 

 

 

 

 

(623

)

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

 

 

65

 

Less: acquisition costs

 

 

(1,000

)

 

 

 

 

 

 

 

(1,000

)

Free cash flow

 

$

125,859

 

 

$

14,037

 

$

(51,206

)

 

$

88,690

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

1,745

 

 

$

 

$

 

 

$

1,745

 

Net cash used in financing activities

 

 

 

 

 

 

 

(87,788

)

 

 

(87,788

)

 

Cash Flow Cushion

 

For the Year Ended December 31,

(In thousands)

 

2021

 

 

 

2020

 

Free cash flow

$

122,967

 

 

$

88,690

 

Less: mandatory Opco debt repayments

 

(39,396

)

 

 

(46,176

)

Less: preferred unit distributions

 

(15,571

)

 

 

(26,363

)

Less: common unit distributions

 

(22,645

)

 

 

(16,890

)

Less: warrant cash settlement

 

(9,183

)

 

 

 

Cash flow cushion

$

36,172

 

 

$

(739

)

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Leverage Ratio

 

 

 

 

(In thousands)

 

For the Year Ended December 31, 2021

Adjusted EBITDA

 

$

161,354

Debt—at December 31, 2021

 

$

438,484

Leverage Ratio (1)

 

2.7 x

 

(1) Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 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 December 31, 2021, was 2.7x as calculated under the indenture governing NRP's 2025 parent company notes.

Return on Capital Employed ("ROCE")

 

 

Mineral Rights

 

 

 

Corporate and Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

LTM Ended December 31, 2021

 

 

 

 

 

 

 

 

Net income (loss)

 

$

143,412

 

 

$

21,702

 

 

$

(56,212

)

 

$

108,902

 

Financing costs

 

 

30

 

 

 

 

 

 

38,908

 

 

 

38,938

 

Return

 

$

143,442

 

 

$

21,702

 

 

$

(17,304

)

 

$

147,840

 

 

 

 

 

 

 

 

 

 

As of December 31, 2020

 

 

 

 

 

 

 

 

Total assets

 

$

656,505

 

 

$

262,514

 

 

$

2,858

 

 

$

921,877

 

Less: total current liabilities excluding current debt, net

 

 

(17,957

)

 

 

(12

)

 

 

(4,348

)

 

 

(22,317

)

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

 

 

(54,640

)

 

 

 

 

 

(560

)

 

 

(55,200

)

Capital employed

 

$

583,908

 

 

$

262,502

 

 

$

(2,050

)

 

$

844,360

 

 

 

 

 

 

 

 

 

 

Total partners' capital

 

$

583,908

 

 

$

262,502

 

 

$

(641,886

)

 

$

204,524

 

Class A convertible preferred units

 

 

 

 

 

 

 

 

168,337

 

 

 

168,337

 

Debt, net

 

 

 

 

 

 

 

 

471,499

 

 

 

471,499

 

Capital employed

 

$

583,908

 

 

$

262,502

 

 

$

(2,050

)

 

$

844,360

 

 

 

 

 

 

 

 

 

 

ROCE

 

 

24.6

%

 

 

8.3

%

 

 

N/A

 

 

 

17.5

%

 

 

 

 

 

 

 

 

 

Excluding asset impairments:

 

 

 

 

 

 

 

 

Return

 

$

143,442

 

 

$

21,702

 

 

$

(17,304

)

 

$

147,840

 

Add: asset impairments

 

 

5,102

 

 

 

 

 

 

 

 

 

5,102

 

Return excluding asset impairments

 

$

148,544

 

 

$

21,702

 

 

$

(17,304

)

 

$

152,942

 

 

 

 

 

 

 

 

 

 

ROCE excluding asset impairments

 

 

25.4

%

 

 

8.3

%

 

 

N/A

 

 

 

18.1

%

 

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

Source: Natural Resource Partners L.P.

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