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Natural Resource Partners L.P. Reports Second Quarter 2022 Results and Declares Second Quarter 2022 Distribution of $0.75 per Unit

08/04/2022

HOUSTON--(BUSINESS WIRE)-- Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2022 results as follows:

 

 

For the Three
Months Ended

 

Last Twelve
Months Ended

(In thousands) (Unaudited)

 

June 30, 2022

Operating cash flow

 

$

63,123

 

$

200,674

Free cash flow (1)

 

 

63,686

 

 

202,318

Cash flow cushion (last twelve months) (1)

 

 

 

 

84,673

 

 

 

 

 

Net income

 

$

66,820

 

$

215,858

Adjusted EBITDA (1)

 

 

80,709

 

 

260,842

_________________________
(1)

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

Highlights:

  • $64 million Free Cash Flow in the second quarter of 2022
  • Record Free Cash Flow for the first half of the year of $116 million
  • Paid down $120.5 million of debt in the second quarter of 2022
  • 1.2x Leverage Ratio at June 30, 2022, down from 4.6x at June 30, 2021

“The second quarter was another quarter of exceptional results for NRP with the generation of $64 million of free cash flow,” said Craig Nunez, NRP’s president and chief operating officer. “When combined with the $52 million of free cash flow generated in the first quarter, the first half of 2022 was the best annual start in the history of the Partnership. We took advantage of the strong financial results and positive outlook to retire $118 million of debt, driving our leverage ratio down to 1.2x at the end of the second quarter, which was a dramatic improvement from 4.6x just twelve months earlier. We believe current market conditions will allow us to continue de-risking the capital structure while continuing to provide distributions to our common unitholders.”

NRP announced today that the Board of Directors of its general partner declared a cash distribution of $0.75 per common unit to be paid on August 23, 2022 to unitholders of record on August 16, 2022. This is a 67% increase as compared to the distribution paid for the prior year quarter and is consistent with the previous quarter. In addition, the board declared 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.

NRP's liquidity was $159.4 million at June 30, 2022, consisting of $59.4 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

Segment Performance

Mineral Rights

Mineral Rights net income for the second quarter of 2022 increased $43.5 millionas compared to the prior year period. Free cash flow for the second quarter increased $39.3 million as compared to the prior year period. These increases were primarily due to stronger metallurgical coal demand and pricing in 2022. Approximately 75% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2022.

Metallurgical coal prices have declined from their record highs during the first quarter of 2022 but remain supported by the ongoing tightness in the supply-demand balance for metallurgical coal. Metallurgical coal production continues to face ongoing labor shortages and global supply chain interruptions which limits the ability of operators to increase metallurgical coal production and should provide continued support for domestic and international prices in the near term despite slowing global economic growth and softening demand for steel.

Thermal coal demand and pricing remains strong due to increased demand for electricity, high natural gas prices and constrained growth in thermal coal production. Boycotts on Russian coal caused by the war in Ukraine are amplifying the tightness in thermal coal markets caused by labor shortages, global supply chain interruptions, and environmental and political pressures limiting the ability of operators to increase thermal coal production to meet domestic and international demand. NRP continues to believe the near-term outlook for thermal coal prices is positive.

NRP continues to identify alternative revenue opportunities across its large portfolio of land and mineral assets specifically within the transitional energy economy. NRP owns the rights to sequester carbon dioxide ("CO2") on approximately 3.5 million mineral acres of pore space in the southern United States. As announced previously, in the first quarter of 2022 NRP executed on its first subsurface CO2 sequestration transaction by granting Denbury the right to develop a world-class subsurface CO2 sequestration project on 75,000 acres of underground pore space NRP owns in southwest Alabama with the potential to store over 300 million metric tons of CO2. 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 and position NRP to benefit from the transitional energy economy with minimal capital investment.

Soda Ash

Soda Ash net income in the second quarter of 2022 increased $12.1 million as compared to the prior year period primarily as a result of increased international sales prices. Free cash flow in the second quarter of 2022 increased $10.5 million as compared to the prior year period due to Sisecam Wyoming reinstating its regular quarterly cash distributions beginning in the fourth quarter of 2021.

Strong demand growth for soda ash, driven by global secular trends including investments in renewable energy, the electrification of the global auto fleet and urbanization, coupled with constrained soda ash supply due in part to COVID-19 flash lockdowns in China and a partial closure of a Green River competitor due to a force majeure event allowed Sisecam Wyoming to deliver improved financial results in the second quarter of 2022.

Corporate and Financing

Corporate and Financing costs in the second quarter increased $4.1 million as compared to the prior year period primarily due to the loss on extinguishment of debt associated with the early retirement of debt, partially offset by lower interest expense as a result of less debt outstanding. Free cash flow in the second quarter of 2022 increased $1.0 million as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding.

During the second quarter of 2022, NRP retired $118.1 million of its 9.125% Senior Notes due 2025, which will save approximately $10.8 million annually in interest costs. These notes were purchased on the open market at a weighted average price of 102.275%, a discount to the current redemption price of 104.563%. In July, NRP was able to retire an additional $38.8 million of its 2025 Senior Notes, which will save an additional $3.5 million annually in interest costs. The current outstanding amount of 9.125% Senior Notes due 2025 is $143.1 million.

In addition, in May of 2022 NRP paid a first quarter 2022 cash distribution of $0.75 per common unit of NRP and a $7.5 million cash distribution on the preferred units.

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.

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 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; Sisecam 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; 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. 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 and cash flow used in acquisition costs classified as investing or financing activities. 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.

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Comprehensive Income

 

 

For the Three Months Ended

 

For the Six Months Ended

 

June 30,

 

March 31,

 

June 30,

(In thousands, except per unit data)

2022

 

2021

 

2022

 

2022

 

2021

Revenues and other income

 

 

 

 

 

 

 

 

 

Royalty and other mineral rights

$

79,333

 

 

$

33,611

 

 

$

71,083

 

 

$

150,416

 

 

$

66,538

 

Transportation and processing services

 

5,612

 

 

 

2,182

 

 

 

3,796

 

 

 

9,408

 

 

 

4,374

 

Equity in earnings of Sisecam Wyoming

 

14,643

 

 

 

2,601

 

 

 

14,837

 

 

 

29,480

 

 

 

4,574

 

Gain on asset sales and disposals

 

345

 

 

 

116

 

 

 

 

 

 

345

 

 

 

175

 

Total revenues and other income

$

99,933

 

 

$

38,510

 

 

$

89,716

 

 

$

189,649

 

 

$

75,661

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

$

10,015

 

 

$

5,170

 

 

$

8,076

 

 

$

18,091

 

 

$

10,722

 

Depreciation, depletion and amortization

 

5,847

 

 

 

4,871

 

 

 

3,868

 

 

 

9,715

 

 

 

9,963

 

General and administrative expenses

 

5,052

 

 

 

3,388

 

 

 

4,467

 

 

 

9,519

 

 

 

7,498

 

Asset impairments

 

43

 

 

 

16

 

 

 

19

 

 

 

62

 

 

 

4,059

 

Total operating expenses

$

20,957

 

 

$

13,445

 

 

$

16,430

 

 

$

37,387

 

 

$

32,242

 

 

 

 

 

 

 

 

 

 

 

Income from operations

$

78,976

 

 

$

25,065

 

 

$

73,286

 

 

$

152,262

 

 

$

43,419

 

 

 

 

 

 

 

 

 

 

 

Other expenses, net

 

 

 

 

 

 

 

 

 

Interest expense, net

$

(8,108

)

 

$

(9,683

)

 

$

(9,387

)

 

$

(17,495

)

 

$

(19,656

)

Loss on extinguishment of debt

 

(4,048

)

 

 

 

 

 

 

 

 

(4,048

)

 

 

 

Total other expenses, net

$

(12,156

)

 

$

(9,683

)

 

$

(9,387

)

 

$

(21,543

)

 

$

(19,656

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

66,820

 

 

$

15,382

 

 

$

63,899

 

 

$

130,719

 

 

$

23,763

 

Less: income attributable to preferred unitholders

 

(7,500

)

 

 

(7,842

)

 

 

(7,500

)

 

 

(15,000

)

 

 

(15,569

)

Net income attributable to common unitholders and the general partner

$

59,320

 

 

$

7,540

 

 

$

56,399

 

 

$

115,719

 

 

$

8,194

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common unitholders

$

58,134

 

 

$

7,389

 

 

$

55,271

 

 

$

113,405

 

 

$

8,030

 

Net income attributable to the general partner

 

1,186

 

 

 

151

 

 

 

1,128

 

 

 

2,314

 

 

 

164

 

 

 

 

 

 

 

 

 

 

 

Net income per common unit

 

 

 

 

 

 

 

 

 

Basic

$

4.65

 

 

$

0.60

 

 

$

4.45

 

 

$

9.10

 

 

$

0.65

 

Diluted

 

3.29

 

 

 

0.56

 

 

 

3.11

 

 

 

6.50

 

 

 

0.65

 

 

 

 

 

 

 

 

 

 

 

Net income

$

66,820

 

 

$

15,382

 

 

$

63,899

 

 

$

130,719

 

 

$

23,763

 

Comprehensive income (loss) from unconsolidated investment and other

 

(4,013

)

 

 

2,533

 

 

 

2,545

 

 

 

(1,468

)

 

 

3,265

 

Comprehensive income

$

62,807

 

 

$

17,915

 

 

$

66,444

 

 

$

129,251

 

 

$

27,028

 

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)

2022

 

2021

 

2022

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net income

$

66,820

 

 

$

15,382

 

 

$

63,899

 

 

$

130,719

 

 

$

23,763

 

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

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

5,847

 

 

 

4,871

 

 

 

3,868

 

 

 

9,715

 

 

 

9,963

 

Distributions from unconsolidated investment

 

10,486

 

 

 

 

 

 

13,230

 

 

 

23,716

 

 

 

3,920

 

Equity earnings from unconsolidated investment

 

(14,643

)

 

 

(2,601

)

 

 

(14,837

)

 

 

(29,480

)

 

 

(4,574

)

Gain on asset sales and disposals

 

(345

)

 

 

(116

)

 

 

 

 

 

(345

)

 

 

(175

)

Loss on extinguishment of debt

 

4,048

 

 

 

 

 

 

 

 

 

4,048

 

 

 

 

Asset impairments

 

43

 

 

 

16

 

 

 

19

 

 

 

62

 

 

 

4,059

 

Bad debt expense

 

(388

)

 

 

(737

)

 

 

1,028

 

 

 

640

 

 

 

(354

)

Unit-based compensation expense

 

1,339

 

 

 

593

 

 

 

1,448

 

 

 

2,787

 

 

 

1,719

 

Amortization of debt issuance costs and other

 

1,297

 

 

 

977

 

 

 

375

 

 

 

1,672

 

 

 

1,246

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

(5,033

)

 

 

162

 

 

 

(7,579

)

 

 

(12,612

)

 

 

(3,169

)

Accounts payable

 

73

 

 

 

(83

)

 

 

(60

)

 

 

13

 

 

 

(93

)

Accrued liabilities

 

2,047

 

 

 

1,838

 

 

 

(7,156

)

 

 

(5,109

)

 

 

(1,196

)

Accrued interest

 

(7,413

)

 

 

(7,424

)

 

 

7,250

 

 

 

(163

)

 

 

(291

)

Deferred revenue

 

(2,259

)

 

 

677

 

 

 

(7,316

)

 

 

(9,575

)

 

 

531

 

Other items, net

 

1,204

 

 

 

(171

)

 

 

(1,838

)

 

 

(634

)

 

 

1,235

 

Net cash provided by operating activities

$

63,123

 

 

$

13,384

 

 

$

52,331

 

 

$

115,454

 

 

$

36,584

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

$

346

 

 

$

116

 

 

$

 

 

$

346

 

 

$

175

 

Return of long-term contract receivable

 

563

 

 

 

541

 

 

 

 

 

 

563

 

 

 

1,082

 

Net cash provided by investing activities

$

909

 

 

$

657

 

 

$

 

 

$

909

 

 

$

1,257

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Debt repayments

$

(120,474

)

 

$

(2,365

)

 

$

(16,697

)

 

$

(137,171

)

 

$

(19,061

)

Distributions to common unitholders and the general
partner

 

(9,570

)

 

 

(5,672

)

 

 

(5,672

)

 

 

(15,242

)

 

 

(11,302

)

Distributions to preferred unitholders

 

(7,500

)

 

 

(3,864

)

 

 

(7,500

)

 

 

(15,000

)

 

 

(7,670

)

Redemption of preferred units paid-in-kind

 

 

 

 

 

 

 

(19,579

)

 

 

(19,579

)

 

 

 

Acquisition of non-controlling interest in BRP

 

 

 

 

(1,000

)

 

 

 

 

 

 

 

 

(1,000

)

Other items, net

 

(2,722

)

 

 

1

 

 

 

(2,813

)

 

 

(5,535

)

 

 

(690

)

Net cash used in financing activities

$

(140,266

)

 

$

(12,900

)

 

$

(52,261

)

 

$

(192,527

)

 

$

(39,723

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

$

(76,234

)

 

$

1,141

 

 

$

70

 

 

$

(76,164

)

 

$

(1,882

)

Cash and cash equivalents at beginning of period

 

135,590

 

 

 

96,767

 

 

 

135,520

 

 

 

135,520

 

 

 

99,790

 

Cash and cash equivalents at end of period

$

59,356

 

 

$

97,908

 

 

$

135,590

 

 

$

59,356

 

 

$

97,908

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for interest

$

15,128

 

 

$

16,611

 

 

$

1,644

 

 

$

16,772

 

 

$

18,931

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Preferred unit distributions paid-in-kind

$

 

 

$

3,863

 

 

$

 

 

$

 

 

$

7,669

 

Natural Resource Partners L.P.

Financial Tables

 

Consolidated Balance Sheets

 

 

June 30,

 

December 31,

(In thousands, except unit data)

2022

 

2021

ASSETS

(Unaudited)

 

 

Current assets

 

 

 

Cash and cash equivalents

$

59,356

 

$

135,520

Accounts receivable, net

 

37,288

 

 

24,538

Other current assets, net

 

3,204

 

 

2,723

Total current assets

$

99,848

 

$

162,781

Land

 

24,008

 

 

24,008

Mineral rights, net

 

428,505

 

 

437,697

Intangible assets, net

 

15,634

 

 

16,130

Equity in unconsolidated investment

 

280,300

 

 

276,004

Long-term contract receivable, net

 

30,182

 

 

31,371

Other long-term assets, net

 

4,664

 

 

5,832

Total assets

$

883,141

 

$

953,823

LIABILITIES AND CAPITAL

 

 

 

Current liabilities

 

 

 

Accounts payable

$

1,969

 

$

1,956

Accrued liabilities

 

5,507

 

 

10,297

Accrued interest

 

1,050

 

 

1,213

Current portion of deferred revenue

 

11,475

 

 

11,817

Current portion of long-term debt, net

 

39,070

 

 

39,102

Total current liabilities

$

59,071

 

$

64,385

Deferred revenue

 

40,811

 

 

50,045

Long-term debt, net

 

259,296

 

 

394,443

Other non-current liabilities

 

5,012

 

 

5,018

Total liabilities

$

364,190

 

$

513,891

Commitments and contingencies

 

 

 

Class A Convertible Preferred Units (250,000 and 269,321 units issued and outstanding at
June 30, 2022 and December 31, 2021, respectively, at $1,000 par value per unit;
liquidation preference of $1,850 per unit at June 30, 2022 and December 31, 2021)

$

164,587

 

$

183,908

Partners’ capital:

 

 

 

Common unitholders’ interest (12,505,996 and 12,351,306 units issued and outstanding
at June 30, 2022 and December 31, 2021, respectively),

$

300,753

 

$

203,062

General partner’s interest

 

3,904

 

 

1,787

Warrant holders' interest

 

47,964

 

 

47,964

Accumulated other comprehensive income

 

1,743

 

 

3,211

Total partners’ capital

$

354,364

 

$

256,024

Total liabilities and partners' capital

$

883,141

 

$

953,823

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Partners' Capital

 

Common Unitholders

 

General
Partner

 

Warrant
Holders

 

Accumulated
Other
Comprehensive
Income

 

Total Partners'
Capital

 

(In thousands)

Units

 

Amounts

 

Balance at December 31, 2021

12,351

 

$

203,062

 

 

$

1,787

 

 

$

47,964

 

$

3,211

 

 

$

256,024

 

Net income (1)

 

 

62,621

 

 

 

1,278

 

 

 

 

 

 

 

 

63,899

 

Distributions to common unitholders and the general partner

 

 

(5,559

)

 

 

(113

)

 

 

 

 

 

 

 

(5,672

)

Distributions to preferred unitholders

 

 

(7,603

)

 

 

(155

)

 

 

 

 

 

 

 

(7,758

)

Issuance of unit-based awards

155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

(1,754

)

 

 

 

 

 

 

 

 

 

 

(1,754

)

Capital contribution

 

 

 

 

 

112

 

 

 

 

 

 

 

 

112

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

2,545

 

 

 

2,545

 

Balance at March 31, 2022

12,506

 

$

250,767

 

 

$

2,909

 

 

$

47,964

 

$

5,756

 

 

$

307,396

 

Net income (1)

 

 

65,484

 

 

 

1,336

 

 

 

 

 

 

 

 

66,820

 

Distributions to common unitholders and the general partner

 

 

(9,379

)

 

 

(191

)

 

 

 

 

 

 

 

(9,570

)

Distributions to preferred unitholders

 

 

(7,350

)

 

 

(150

)

 

 

 

 

 

 

 

(7,500

)

Unit-based awards amortization and vesting

 

 

1,231

 

 

 

 

 

 

 

 

 

 

 

1,231

 

Comprehensive loss from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

(4,013

)

 

 

(4,013

)

Balance at June 30, 2022

12,506

 

$

300,753

 

 

$

3,904

 

 

$

47,964

 

$

1,743

 

 

$

354,364

 

________________
(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.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

 

Common Unitholders

 

General
Partner

 

Warrant
Holders

 

Accumulated
Other
Comprehensive
Income

 

Total Partners'
Capital

 

(In thousands)

Units

 

Amounts

 

Balance at December 31, 2020

12,261

 

$

136,927

 

 

$

459

 

 

$

66,816

 

$

322

 

$

204,524

 

Net income (1)

 

 

8,213

 

 

 

168

 

 

 

 

 

 

 

8,381

 

Distributions to common unitholders and the general partner

 

 

(5,517

)

 

 

(113

)

 

 

 

 

 

 

(5,630

)

Distributions to preferred unitholders

 

 

(7,461

)

 

 

(152

)

 

 

 

 

 

 

(7,613

)

Issuance of unit-based awards

90

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

215

 

 

 

 

 

 

 

 

 

 

215

 

Capital contribution

 

 

 

 

 

32

 

 

 

 

 

 

 

32

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

732

 

 

732

 

Balance at March 31, 2021

12,351

 

$

132,377

 

 

$

394

 

 

$

66,816

 

$

1,054

 

$

200,641

 

Net income (2)

 

 

15,074

 

 

 

308

 

 

 

 

 

 

 

15,382

 

Distributions to common unitholders and the general partner

 

 

(5,559

)

 

 

(113

)

 

 

 

 

 

 

(5,672

)

Distributions to preferred unitholders

 

 

(7,571

)

 

 

(155

)

 

 

 

 

 

 

(7,726

)

Unit-based awards amortization and vesting

 

 

515

 

 

 

 

 

 

 

 

 

 

515

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

2,533

 

 

2,533

 

Balance at June 30, 2021

12,351

 

$

134,836

 

 

$

434

 

 

$

66,816

 

$

3,587

 

$

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)

 

The following tables present NRP's unaudited business results by segment for the three months ended June 30, 2022 and 2021 and March 31, 2022:

 

 

 

Operating Segments

 

 

 

 

 

 

Mineral Rights

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Revenues

 

$

84,945

 

 

$

14,643

 

 

$

 

 

$

99,588

 

Gain on asset sales and disposals

 

 

345

 

 

 

 

 

 

 

 

 

345

 

Total revenues and other income

 

$

85,290

 

 

$

14,643

 

 

$

 

 

$

99,933

 

Asset impairments

 

$

43

 

 

$

 

 

$

 

 

$

43

 

Net income (loss)

 

$

69,408

 

 

$

14,620

 

 

$

(17,208

)

 

$

66,820

 

Adjusted EBITDA (1)

 

$

75,298

 

 

$

10,463

 

 

$

(5,052

)

 

$

80,709

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

70,351

 

 

$

10,430

 

 

$

(17,658

)

 

$

63,123

 

Investing activities

 

$

909

 

 

$

 

 

$

 

 

$

909

 

Financing activities

 

$

 

 

$

 

 

$

(140,266

)

 

$

(140,266

)

Distributable cash flow (1)

 

$

71,260

 

 

$

10,430

 

 

$

(17,658

)

 

$

64,032

 

Free cash flow (1)

 

$

70,914

 

 

$

10,430

 

 

$

(17,658

)

 

$

63,686

 

 

 

 

 

 

 

 

 

 

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 March 31, 2022

 

 

 

 

 

 

 

 

Revenues

 

$

74,879

 

 

$

14,837

 

 

$

 

 

$

89,716

 

Gain on asset sales and disposals

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income

 

$

74,879

 

 

$

14,837

 

 

$

 

 

$

89,716

 

Asset impairments

 

$

19

 

 

$

 

 

$

 

 

$

19

 

Net income (loss)

 

$

62,967

 

 

$

14,786

 

 

$

(13,854

)

 

$

63,899

 

Adjusted EBITDA (1)

 

$

66,854

 

 

$

13,179

 

 

$

(4,467

)

 

$

75,566

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

48,176

 

 

$

13,195

 

 

$

(9,040

)

 

$

52,331

 

Investing activities

 

$

 

 

$

 

 

$

 

 

$

 

Financing activities

 

$

(614

)

 

$

 

 

$

(51,647

)

 

$

(52,261

)

Distributable cash flow (1)

 

$

48,176

 

 

$

13,195

 

 

$

(9,040

)

 

$

52,331

 

Free cash flow (1)

 

$

48,176

 

 

$

13,195

 

 

$

(9,040

)

 

$

52,331

 

_____________________
(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, 2022 and 2021:

 

 

 

Operating Segments

 

 

 

 

 

 

Mineral Rights

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Revenues

 

$

159,824

 

 

$

29,480

 

$

 

 

$

189,304

 

Gain on asset sales and disposals

 

 

345

 

 

 

 

 

 

 

 

345

 

Total revenues and other income

 

$

160,169

 

 

$

29,480

 

$

 

 

$

189,649

 

Asset impairments

 

$

62

 

 

$

 

$

 

 

$

62

 

Net income (loss)

 

$

132,375

 

 

$

29,406

 

$

(31,062

)

 

$

130,719

 

Adjusted EBITDA (1)

 

$

142,152

 

 

$

23,642

 

$

(9,519

)

 

$

156,275

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

118,527

 

 

$

23,625

 

$

(26,698

)

 

$

115,454

 

Investing activities

 

$

909

 

 

$

 

$

 

 

$

909

 

Financing activities

 

$

(614

)

 

$

 

$

(191,913

)

 

$

(192,527

)

Distributable cash flow (1)

 

$

119,436

 

 

$

23,625

 

$

(26,698

)

 

$

116,363

 

Free cash flow (1)

 

$

119,090

 

 

$

23,625

 

$

(26,698

)

 

$

116,017

 

 

 

 

 

 

 

 

 

 

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

 

___________________
(1)

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Operating Statistics - Mineral Rights

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

(In thousands, except per ton data)

 

2022

 

2021

 

2022

 

2022

 

2021

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern

 

 

392

 

 

 

405

 

 

 

428

 

 

 

820

 

 

 

525

 

Central

 

 

3,484

 

 

 

2,975

 

 

 

3,251

 

 

 

6,735

 

 

 

5,625

 

Southern

 

 

312

 

 

 

316

 

 

 

361

 

 

 

673

 

 

 

416

 

Total Appalachia

 

 

4,188

 

 

 

3,696

 

 

 

4,040

 

 

 

8,228

 

 

 

6,566

 

Illinois Basin

 

 

3,403

 

 

 

2,640

 

 

 

1,502

 

 

 

4,905

 

 

 

5,298

 

Northern Powder River Basin

 

 

699

 

 

 

185

 

 

 

1,238

 

 

 

1,937

 

 

 

1,244

 

Gulf Coast

 

 

67

 

 

 

 

 

 

69

 

 

 

136

 

 

 

 

Total coal sales volumes

 

 

8,357

 

 

 

6,521

 

 

 

6,849

 

 

 

15,206

 

 

 

13,108

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern

 

$

11.84

 

 

$

4.45

 

 

$

10.14

 

 

$

10.95

 

 

$

4.27

 

Central

 

 

12.19

 

 

 

4.62

 

 

 

11.37

 

 

 

11.80

 

 

 

4.44

 

Southern

 

 

17.67

 

 

 

7.63

 

 

 

17.56

 

 

 

17.61

 

 

 

7.06

 

Illinois Basin

 

 

2.07

 

 

 

2.01

 

 

 

2.20

 

 

 

2.11

 

 

 

2.04

 

Northern Powder River Basin

 

 

4.74

 

 

 

4.15

 

 

 

3.74

 

 

 

4.10

 

 

 

3.49

 

Gulf Coast

 

 

0.57

 

 

 

 

 

 

0.55

 

 

 

0.56

 

 

 

 

Combined average coal royalty revenue per ton

 

 

7.54

 

 

 

3.69

 

 

 

8.12

 

 

 

7.80

 

 

 

3.45

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern

 

$

4,640

 

 

$

1,804

 

 

$

4,341

 

 

$

8,981

 

 

$

2,241

 

Central

 

 

42,461

 

 

 

13,756

 

 

 

36,980

 

 

 

79,441

 

 

 

24,951

 

Southern

 

 

5,513

 

 

 

2,410

 

 

 

6,340

 

 

 

11,853

 

 

 

2,938

 

Total Appalachia

 

 

52,614

 

 

 

17,970

 

 

 

47,661

 

 

 

100,275

 

 

 

30,130

 

Illinois Basin

 

 

7,061

 

 

 

5,300

 

 

 

3,303

 

 

 

10,364

 

 

 

10,783

 

Northern Powder River Basin

 

 

3,314

 

 

 

768

 

 

 

4,632

 

 

 

7,946

 

 

 

4,341

 

Gulf Coast

 

 

38

 

 

 

 

 

 

38

 

 

 

76

 

 

 

 

Unadjusted coal royalty revenues

 

 

63,027

 

 

 

24,038

 

 

 

55,634

 

 

 

118,661

 

 

 

45,254

 

Coal royalty adjustment for minimum leases

 

 

(82

)

 

 

(5,740

)

 

 

(185

)

 

 

(267

)

 

 

(11,591

)

Total coal royalty revenues

 

$

62,945

 

 

$

18,298

 

 

$

55,449

 

 

$

118,394

 

 

$

33,663

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

65

 

 

$

3,556

 

 

$

1,592

 

 

$

1,657

 

 

$

7,006

 

Minimum lease straight-line revenues

 

 

4,674

 

 

 

4,869

 

 

 

4,783

 

 

 

9,457

 

 

 

10,965

 

Wheelage revenues

 

 

4,379

 

 

 

1,844

 

 

 

3,717

 

 

 

8,096

 

 

 

3,625

 

Property tax revenues

 

 

1,695

 

 

 

1,587

 

 

 

1,472

 

 

 

3,167

 

 

 

3,056

 

Coal overriding royalty revenues

 

 

682

 

 

 

976

 

 

 

258

 

 

 

940

 

 

 

2,835

 

Lease amendment revenues

 

 

811

 

 

 

772

 

 

 

880

 

 

 

1,691

 

 

 

1,640

 

Aggregates royalty revenues

 

 

1,037

 

 

 

456

 

 

 

770

 

 

 

1,807

 

 

 

910

 

Oil and gas royalty revenues

 

 

2,906

 

 

 

900

 

 

 

1,814

 

 

 

4,720

 

 

 

2,266

 

Other revenues

 

 

139

 

 

 

353

 

 

 

348

 

 

 

487

 

 

 

572

 

Total other revenues

 

$

16,388

 

 

$

15,313

 

 

$

15,634

 

 

$

32,022

 

 

$

32,875

 

Royalty and other mineral rights

 

$

79,333

 

 

$

33,611

 

 

$

71,083

 

 

$

150,416

 

 

$

66,538

 

Transportation and processing services revenues

 

 

5,612

 

 

 

2,182

 

 

 

3,796

 

 

 

9,408

 

 

 

4,374

 

Gain on asset sales and disposals

 

 

345

 

 

 

116

 

 

 

 

 

 

345

 

 

 

175

 

Total Mineral Rights segment revenues and other income

 

$

85,290

 

 

$

35,909

 

 

$

74,879

 

 

$

160,169

 

 

$

71,087

 

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 June 30, 2022

 

 

 

 

 

 

 

 

Net income (loss)

 

$

69,408

 

$

14,620

 

 

$

(17,208

)

 

$

66,820

 

Less: equity earnings from unconsolidated investment

 

 

 

 

(14,643

)

 

 

 

 

 

(14,643

)

Add: total distributions from unconsolidated investment

 

 

 

 

10,486

 

 

 

 

 

 

10,486

 

Add: interest expense, net

 

 

 

 

 

 

 

8,108

 

 

 

8,108

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

4,048

 

 

 

4,048

 

Add: depreciation, depletion and amortization

 

 

5,847

 

 

 

 

 

 

 

 

5,847

 

Add: asset impairments

 

 

43

 

 

 

 

 

 

 

 

43

 

Adjusted EBITDA

 

$

75,298

 

$

10,463

 

 

$

(5,052

)

 

$

80,709

 

 

 

 

 

 

 

 

 

 

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: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

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 March 31, 2022

 

 

 

 

 

 

 

 

Net income (loss)

 

$

62,967

 

$

14,786

 

 

 

(13,854

)

 

$

63,899

 

Less: equity earnings from unconsolidated investment

 

 

 

 

(14,837

)

 

 

 

 

 

(14,837

)

Add: total distributions from unconsolidated investment

 

 

 

 

13,230

 

 

 

 

 

 

13,230

 

Add: interest expense, net

 

 

 

 

 

 

 

9,387

 

 

 

9,387

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

 

3,868

 

 

 

 

 

 

 

 

3,868

 

Add: asset impairments

 

 

19

 

 

 

 

 

 

 

 

19

 

Adjusted EBITDA

 

$

66,854

 

$

13,179

 

 

$

(4,467

)

 

$

75,566

 

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 Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

Net income (loss)

 

$

132,375

 

$

29,406

 

 

$

(31,062

)

 

$

130,719

 

Less: equity earnings from unconsolidated investment

 

 

 

 

(29,480

)

 

 

 

 

 

(29,480

)

Add: total distributions from unconsolidated investment

 

 

 

 

23,716

 

 

 

 

 

 

23,716

 

Add: interest expense, net

 

 

 

 

 

 

 

17,495

 

 

 

17,495

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

4,048

 

 

 

4,048

 

Add: depreciation, depletion and amortization

 

 

9,715

 

 

 

 

 

 

 

 

9,715

 

Add: asset impairments

 

 

62

 

 

 

 

 

 

 

 

62

 

Adjusted EBITDA

 

$

142,152

 

$

23,642

 

 

$

(9,519

)

 

$

156,275

 

 

 

 

 

 

 

 

 

 

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: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

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

 

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 June 30, 2022

 

 

 

 

 

 

 

 

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

 

$

70,351

 

 

$

10,430

 

 

$

(17,658

)

 

$

63,123

 

Add: proceeds from asset sales and disposals

 

 

346

 

 

 

 

 

 

 

 

 

346

 

Add: return of long-term contract receivable

 

 

563

 

 

 

 

 

 

 

 

 

563

 

Distributable cash flow

 

$

71,260

 

 

$

10,430

 

 

$

(17,658

)

 

$

64,032

 

Less: proceeds from asset sales and disposals

 

 

(346

)

 

 

 

 

 

 

 

 

(346

)

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

70,914

 

 

$

10,430

 

 

$

(17,658

)

 

$

63,686

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

909

 

 

$

 

 

$

 

 

$

909

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(140,266

)

 

 

(140,266

)

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

657

 

 

$

 

 

$

 

 

$

657

 

Net cash used in financing activities

 

 

(1,000

)

 

 

 

 

 

(11,900

)

 

 

(12,900

)

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

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

 

$

48,176

 

 

$

13,195

 

 

$

(9,040

)

 

$

52,331

 

Add: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

 

 

 

 

Add: return of long-term contract receivable

 

 

 

 

 

 

 

 

 

 

 

 

Distributable cash flow

 

$

48,176

 

 

$

13,195

 

 

$

(9,040

)

 

$

52,331

 

Less: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

 

 

 

 

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

48,176

 

 

$

13,195

 

 

$

(9,040

)

 

$

52,331

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

 

 

$

 

 

$

 

 

$

 

Net cash used in financing activities

 

 

(614

)

 

 

 

 

 

(51,647

)

 

 

(52,261

)

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 Six Months Ended June 30, 2022

 

 

 

 

 

 

 

 

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

 

$

118,527

 

 

$

23,625

 

$

(26,698

)

 

$

115,454

 

Add: proceeds from asset sales and disposals

 

 

346

 

 

 

 

 

 

 

 

346

 

Add: return of long-term contract receivable

 

 

563

 

 

 

 

 

 

 

 

563

 

Distributable cash flow

 

$

119,436

 

 

$

23,625

 

$

(26,698

)

 

$

116,363

 

Less: proceeds from asset sales and disposals

 

 

(346

)

 

 

 

 

 

 

 

(346

)

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

119,090

 

 

$

23,625

 

$

(26,698

)

 

$

116,017

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

909

 

 

$

 

$

 

 

$

909

 

Net cash used in financing activities

 

 

(614

)

 

 

 

 

(191,913

)

 

 

(192,527

)

 

 

 

 

 

 

 

 

 

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: 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

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

1,257

 

 

$

 

$

 

 

$

1,257

 

Net cash used in financing activities

 

 

(1,132

)

 

 

 

 

(38,591

)

 

 

(39,723

)

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Cushion

 

 

 

 

 

 

 

For the Three Months Ended

 

 

(In thousands)

 

September 30,
2021

 

December 31,
2021

 

March 31,
2022

 

June 30,
2022

 

Last 12
Months

Net cash provided by operating activities of continuing operations

 

$

30,059

 

 

$

55,161

 

 

$

52,331

 

 

$

63,123

 

 

$

200,674

 

Add: proceeds from asset sales and disposals

 

 

74

 

 

 

 

 

 

 

 

 

346

 

 

 

420

 

Add: return of long-term contract receivable

 

 

540

 

 

 

541

 

 

 

 

 

 

563

 

 

 

1,644

 

Distributable cash flow

 

$

30,673

 

 

$

55,702

 

 

$

52,331

 

 

$

64,032

 

 

$

202,738

 

Less: proceeds from asset sales and disposals

 

 

(74

)

 

 

 

 

 

 

 

 

(346

)

 

 

(420

)

Free cash flow

 

$

30,599

 

 

$

55,702

 

 

$

52,331

 

 

$

63,686

 

 

$

202,318

 

Less: mandatory Opco debt repayments

 

 

 

 

 

(20,335

)

 

 

(16,697

)

 

 

(2,365

)

 

 

(39,397

)

Less: preferred unit distributions and redemption of PIK units

 

 

(3,921

)

 

 

(3,980

)

 

 

(27,079

)

 

 

(7,500

)

 

 

(42,480

)

Less: common unit distributions

 

 

(5,671

)

 

 

(5,672

)

 

 

(5,672

)

 

 

(9,570

)

 

 

(26,585

)

Less: warrant cash settlement

 

 

 

 

 

(9,183

)

 

 

 

 

 

 

 

 

(9,183

)

Cash flow cushion

 

$

21,007

 

 

$

16,532

 

 

$

2,883

 

 

$

44,251

 

 

$

84,673

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Leverage Ratio

 

 

 

For the Three Months Ended

 

 

(In thousands)

 

September 30,
2021

 

December 31,
2021

 

March 31,
2022

 

June 30,
2022

 

Last Twelve
Months

Net income

 

$

29,498

 

 

$

55,641

 

 

$

63,899

 

 

$

66,820

 

 

$

215,858

 

Less: equity earnings from unconsolidated investment

 

 

(6,672

)

 

 

(10,625

)

 

 

(14,837

)

 

 

(14,643

)

 

 

(46,777

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

7,350

 

 

 

13,230

 

 

 

10,486

 

 

 

31,066

 

Add: interest expense, net

 

 

9,652

 

 

 

9,568

 

 

 

9,387

 

 

 

8,108

 

 

 

36,715

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

4,048

 

 

 

4,048

 

Add: depreciation, depletion and amortization

 

 

5,182

 

 

 

3,930

 

 

 

3,868

 

 

 

5,847

 

 

 

18,827

 

Add: asset impairments

 

 

57

 

 

 

986

 

 

 

19

 

 

 

43

 

 

 

1,105

 

Adjusted EBITDA

 

$

37,717

 

 

$

66,850

 

 

$

75,566

 

 

$

80,709

 

 

$

260,842

 

 

 

 

 

 

 

 

 

 

 

 

Debt—at June 30, 2022

 

 

 

 

 

 

 

 

 

$

301,313

 

 

 

 

 

 

 

 

 

 

 

 

Leverage Ratio (1)

 

 

 

 

 

 

 

 

 

1.2 x

___________________
(1)

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of June 30, 2022 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, 2022, was 1.2x as calculated under the indenture governing NRP's 2025 parent company notes.

 

 

For the Three Months Ended

 

 

(In thousands)

 

September 30,
2020

 

December 31,
2020

 

March 31,
2021

 

June 30,
2021

 

Last Twelve
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