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

11/03/2022

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

 

 

For the Three Months
Ended

 

Last Twelve Months
Ended

(In thousands) (Unaudited)

 

September 30, 2022

Operating cash flow (1)

 

$

82,496

 

 

$

253,111

 

Free cash flow (2)

 

 

83,012

 

 

 

254,731

 

Cash flow cushion (last twelve months) (2)

 

 

 

 

 

 

129,607

 

 

 

 

 

 

 

 

 

 

Net income

 

$

74,555

 

 

$

260,915

 

Adjusted EBITDA (2)

 

 

85,625

 

 

 

308,750

 

______________________________

(1)

Operating cash flow for the nine months ended September 30, 2022 was $197,950.

(2)

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

Highlights:

  • G enerated record free cash flow of $83 million in the third quarter of 2022, and $199 million in the first nine months of 2022
  • Closed new five-year, $130 million revolving credit facility
  • Announced full repayment of outstanding 9.125% Senior Notes due 2025
  • Executed second subsurface carbon dioxide ("CO2") sequestration lease
  • Pro-forma leverage ratio of 0.6x following the repayment of 9.125% Senior Notes, down from 4.6x as of June 30, 2021

“NRP's record year continues with third quarter free cash flow generation of $83 million, bringing our year-to-date free cash flow to $199 million, primarily due to the strong results of our Mineral Rights segment," stated Craig Nunez, NRP’s president and chief operating officer. “It is fitting that the 20th anniversary of the Partnership's initial public offering coincides with the best operating performance in our history. Not only has this year been exceptional from a free cash flow perspective, but we continue to execute on our strategy to de-risk the capital structure and grow our carbon neutral portfolio. During the third quarter, we closed a new five-year revolving credit facility that increased our borrowing capacity from $100 million to $130 million. We also announced the redemption of our outstanding 9.125% Senior Notes due 2025 and fully repaid the Senior Notes in October. After giving effect to the redemption, NRP has permanently retired $249 million of debt this year. In the third quarter we also executed our second subsurface CO2 sequestration lease for an estimated carbon storage capacity of at least 500 million metric tons of CO2. NRP currently has approximately 140,000 acres of pore space under lease for carbon sequestration with estimated potential CO2 storage capacity of at least 800 million metric tons. We continue to believe that de-risking the Partnership and leveraging our asset footprint in this regard, while continuing to provide unitholder distributions, is the right strategy to maximize unitholder value.”

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 November 22, 2022 to unitholders of record on November 15, 2022. In addition, the board declared a $7.5 million cash distribution on its outstanding 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 $190.9 million at September 30, 2022, consisting of $60.9 million of cash and $130.0 million of borrowing capacity available under its recently amended revolving credit facility.

Segment Performance

Mineral Rights

Mineral Rights net income for the third quarter of 2022 increased $35.6 million as compared to the prior year period. Free cash flow for the third quarter increased $42.0 million as compared to the prior year period. These increases were primarily due to stronger metallurgical coal demand and pricing in 2022. Approximately 65% of coal royalty revenues and approximately 40% of coal royalty sales volumes were derived from metallurgical coal in the third quarter of 2022.

Metallurgical and thermal coal prices remain supported by ongoing tightness in the supply-demand balance for coal. Many operators are limited in their ability to increase production due to ongoing labor shortages, global supply chain interruptions, and access to capital. Thermal coal prices are further supported by the European Union's ban on Russian coal due to the war in Ukraine, as well as increased natural gas prices and demand for electricity. While metallurgical markets are seeing weakened demand for steel, and thermal markets continue to face ongoing environmental and political pressures, supply constraints should provide continued support for metallurgical and thermal coal prices for the foreseeable future.

NRP continues to identify alternative revenue opportunities across its large portfolio of land and mineral assets. NRP owns the rights to sequester CO2 on approximately 3.5 million acres of pore space in the southern United States. As announced previously, in the first quarter of 2022 NRP executed its first subsurface CO2 sequestration lease 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. In October of 2022, NRP announced its second subsurface CO2 transaction with the execution of a lease for approximately 65,000 acres of pore space controlled by NRP near southeast Texas with estimated storage capacity of at least 500 million metric tons of CO2. In total, NRP has approximately 140,000 acres of pore space under lease for carbon sequestration with estimated CO2 storage capacity of 800 million metric tons. While the timing and likelihood of additional cash flows being realized from these 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 as a key beneficiary of the transitional energy economy with minimal capital investment.

Soda Ash

Soda Ash net income in the third quarter of 2022 increased $7.9 million as compared to the prior year period primarily as a result of increased international sales prices. Free cash flow in the third quarter of 2022 increased $10.3 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.

Supply interruptions in China and input cost inflation which significantly increased the global marginal cost of soda ash production led to historically high soda ash prices in the third quarter of 2022. Though soda ash demand weakened in many parts of the world during the third quarter due to slowing global economic growth and lower construction activity in China, Sisecam Wyoming remained sold-out as it took advantage of its low-cost position to profitably export soda ash. Consequently, Sisecam Wyoming delivered strong financial results in the third quarter of 2022.

Corporate and Financing

Corporate and Financing costs in the third quarter of 2022 decreased $1.6 million as compared to the prior year period primarily due to lower interest expense resulting from less debt outstanding, partially offset by the loss on early extinguishment of debt. Free cash flow in the third quarter of 2022 was relatively flat as compared to the prior year period.

During the third quarter of 2022, NRP repaid $60.5 million of debt and refinanced, upsized, and extended its credit facility to $130 million due 2027. In October of 2022, NRP fully retired its outstanding $121.4 million of 9.125% Senior Notes due 2025 at its redemption price of 102.281%, utilizing cash on hand and $70 million of borrowings under its new credit facility. After giving effect to this redemption, NRP's remaining total debt outstanding is $189.4 million.

Additionally, in August of 2022, NRP paid a second 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 Partnerships 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; Sisecam Wyoming LLCs 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 othersto 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 othersto 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 Nine Months
Ended

 

 

September 30,

 

June 30,

 

September 30,

(In thousands, except per unit data)

 

2022

 

2021

 

2022

 

2022

 

2021

Revenues and other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty and other mineral rights

 

$

81,379

 

 

$

47,884

 

 

$

79,333

 

 

$

231,795

 

 

$

114,422

 

Transportation and processing services

 

 

5,969

 

 

 

2,171

 

 

 

5,612

 

 

 

15,377

 

 

 

6,545

 

Equity in earnings of Sisecam Wyoming

 

 

14,556

 

 

 

6,672

 

 

 

14,643

 

 

 

44,036

 

 

 

11,246

 

Gain on asset sales and disposals

 

 

354

 

 

 

68

 

 

 

345

 

 

 

699

 

 

 

243

 

Total revenues and other income

 

$

102,258

 

 

$

56,795

 

 

$

99,933

 

 

$

291,907

 

 

$

132,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

 

$

7,898

 

 

$

8,354

 

 

$

10,015

 

 

$

25,989

 

 

$

19,076

 

Depreciation, depletion and amortization

 

 

6,850

 

 

 

5,182

 

 

 

5,847

 

 

 

16,565

 

 

 

15,145

 

General and administrative expenses

 

 

4,518

 

 

 

4,052

 

 

 

5,052

 

 

 

14,037

 

 

 

11,550

 

Asset impairments

 

 

812

 

 

 

57

 

 

 

43

 

 

 

874

 

 

 

4,116

 

Total operating expenses

 

$

20,078

 

 

$

17,645

 

 

$

20,957

 

 

$

57,465

 

 

$

49,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

82,180

 

 

$

39,150

 

 

$

78,976

 

 

$

234,442

 

 

$

82,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

$

(5,141

)

 

$

(9,652

)

 

$

(8,108

)

 

$

(22,636

)

 

$

(29,308

)

Loss on extinguishment of debt

 

 

(2,484

)

 

 

 

 

 

(4,048

)

 

 

(6,532

)

 

 

 

Total other expenses, net

 

$

(7,625

)

 

$

(9,652

)

 

$

(12,156

)

 

$

(29,168

)

 

$

(29,308

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

74,555

 

 

$

29,498

 

 

$

66,820

 

 

$

205,274

 

 

$

53,261

 

Less: income attributable to preferred unitholders

 

 

(7,500

)

 

 

(7,961

)

 

 

(7,500

)

 

 

(22,500

)

 

 

(23,530

)

Net income attributable to common unitholders and the general partner

 

$

67,055

 

 

$

21,537

 

 

$

59,320

 

 

$

182,774

 

 

$

29,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common unitholders

 

$

65,714

 

 

$

21,106

 

 

$

58,134

 

 

$

179,119

 

 

$

29,136

 

Net income attributable to the general partner

 

 

1,341

 

 

 

431

 

 

 

1,186

 

 

 

3,655

 

 

 

595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

5.25

 

 

$

1.71

 

 

$

4.65

 

 

$

14.36

 

 

$

2.36

 

Diluted

 

 

3.71

 

 

 

1.10

 

 

 

3.29

 

 

 

10.24

 

 

 

1.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

74,555

 

 

$

29,498

 

 

$

66,820

 

 

$

205,274

 

 

$

53,261

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

289

 

 

 

4,204

 

 

 

(4,013

)

 

 

(1,179

)

 

 

7,469

 

Comprehensive income

 

$

74,844

 

 

$

33,702

 

 

$

62,807

 

 

$

204,095

 

 

$

60,730

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows

 

 

For the Three Months
Ended

 

For the Nine Months
Ended

 

 

September 30,

 

June 30,

 

September 30,

(In thousands)

 

2022

 

2021

 

2022

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

74,555

 

 

$

29,498

 

 

$

66,820

 

 

$

205,274

 

 

$

53,261

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

6,850

 

 

 

5,182

 

 

 

5,847

 

 

 

16,565

 

 

 

15,145

 

Distributions from unconsolidated investment

 

 

10,339

 

 

 

 

 

 

10,486

 

 

 

34,055

 

 

 

3,920

 

Equity earnings from unconsolidated investment

 

 

(14,556

)

 

 

(6,672

)

 

 

(14,643

)

 

 

(44,036

)

 

 

(11,246

)

Gain on asset sales and disposals

 

 

(354

)

 

 

(68

)

 

 

(345

)

 

 

(699

)

 

 

(243

)

Loss on extinguishment of debt

 

 

2,484

 

 

 

 

 

 

4,048

 

 

 

6,532

 

 

 

 

Asset impairments

 

 

812

 

 

 

57

 

 

 

43

 

 

 

874

 

 

 

4,116

 

Bad debt expense

 

 

1

 

 

 

2,069

 

 

 

(388

)

 

 

641

 

 

 

1,715

 

Unit-based compensation expense

 

 

1,429

 

 

 

1,118

 

 

 

1,339

 

 

 

4,216

 

 

 

2,837

 

Amortization of debt issuance costs and other

 

 

215

 

 

 

653

 

 

 

1,297

 

 

 

1,887

 

 

 

1,899

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,494

 

 

 

(9,163

)

 

 

(5,033

)

 

 

(10,118

)

 

 

(12,332

)

Accounts payable

 

 

210

 

 

 

182

 

 

 

73

 

 

 

223

 

 

 

89

 

Accrued liabilities

 

 

278

 

 

 

357

 

 

 

2,047

 

 

 

(4,831

)

 

 

(839

)

Accrued interest

 

 

3,177

 

 

 

7,262

 

 

 

(7,413

)

 

 

3,014

 

 

 

6,971

 

Deferred revenue

 

 

(7,519

)

 

 

(2,652

)

 

 

(2,259

)

 

 

(17,094

)

 

 

(2,121

)

Other items, net

 

 

2,081

 

 

 

2,236

 

 

 

1,204

 

 

 

1,447

 

 

 

3,471

 

Net cash provided by operating activities

 

$

82,496

 

 

$

30,059

 

 

$

63,123

 

 

$

197,950

 

 

$

66,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

 

$

353

 

 

$

74

 

 

$

346

 

 

$

699

 

 

$

249

 

Return of long-term contract receivable

 

 

575

 

 

 

540

 

 

 

563

 

 

 

1,138

 

 

 

1,622

 

Capital expenditures

 

 

(59

)

 

 

 

 

 

 

 

 

(59

)

 

 

 

Net cash provided by investing activities

 

$

869

 

 

$

614

 

 

$

909

 

 

$

1,778

 

 

$

1,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt repayments

 

$

(60,494

)

 

$

 

 

$

(120,474

)

 

$

(197,665

)

 

$

(19,061

)

Distributions to common unitholders and the general partner

 

 

(9,571

)

 

 

(5,671

)

 

 

(9,570

)

 

 

(24,813

)

 

 

(16,973

)

Distributions to preferred unitholders

 

 

(7,500

)

 

 

(3,921

)

 

 

(7,500

)

 

 

(22,500

)

 

 

(11,591

)

Acquisition of non-controlling interest in BRP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,000

)

Redemption of preferred units paid-in-kind

 

 

 

 

 

 

 

 

 

 

 

(19,579

)

 

 

 

Other items, net

 

 

(4,219

)

 

 

 

 

 

(2,722

)

 

 

(9,754

)

 

 

(690

)

Net cash used in financing activities

 

$

(81,784

)

 

$

(9,592

)

 

$

(140,266

)

 

$

(274,311

)

 

$

(49,315

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

$

1,581

 

 

$

21,081

 

 

$

(76,234

)

 

$

(74,583

)

 

$

19,199

 

Cash and cash equivalents at beginning of period

 

 

59,356

 

 

 

97,908

 

 

 

135,590

 

 

 

135,520

 

 

 

99,790

 

Cash and cash equivalents at end of period

 

$

60,937

 

 

$

118,989

 

 

$

59,356

 

 

$

60,937

 

 

$

118,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

1,729

 

 

$

1,898

 

 

$

15,128

 

 

$

18,501

 

 

$

20,829

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred unit distributions paid-in-kind

 

 

 

 

 

3,921

 

 

 

 

 

 

 

 

 

11,591

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Balance Sheets

 

 

September 30,

 

December 31,

(In thousands, except unit data)

 

2022

 

2021

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

60,937

 

 

$

135,520

 

Accounts receivable, net

 

 

34,726

 

 

 

24,538

 

Other current assets, net

 

 

1,228

 

 

 

2,723

 

Total current assets

 

$

96,891

 

 

$

162,781

 

Land

 

 

24,008

 

 

 

24,008

 

Mineral rights, net

 

 

421,351

 

 

 

437,697

 

Intangible assets, net

 

 

15,168

 

 

 

16,130

 

Equity in unconsolidated investment

 

 

284,806

 

 

 

276,004

 

Long-term contract receivable, net

 

 

29,570

 

 

 

31,371

 

Other long-term assets, net

 

 

7,216

 

 

 

5,832

 

Total assets

 

$

879,010

 

 

$

953,823

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,179

 

 

$

1,956

 

Accrued liabilities

 

 

5,913

 

 

 

10,297

 

Accrued interest

 

 

4,227

 

 

 

1,213

 

Current portion of deferred revenue

 

 

8,886

 

 

 

11,817

 

Current portion of long-term debt, net

 

 

89,989

 

 

 

39,102

 

Total current liabilities

 

$

111,194

 

 

$

64,385

 

Deferred revenue

 

 

35,882

 

 

 

50,045

 

Long-term debt, net

 

 

148,734

 

 

 

394,443

 

Other non-current liabilities

 

 

5,231

 

 

 

5,018

 

Total liabilities

 

$

301,041

 

 

$

513,891

 

Commitments and contingencies

 

 

 

 

 

 

 

 

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

 

$

358,332

 

 

$

203,062

 

General partner’s interest

 

 

5,054

 

 

 

1,787

 

Warrant holders’ interest

 

 

47,964

 

 

 

47,964

 

Accumulated other comprehensive income

 

 

2,032

 

 

 

3,211

 

Total partners’ capital

 

$

413,382

 

 

$

256,024

 

Total liabilities and partners' capital

 

$

879,010

 

 

$

953,823

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Total

 

 

Common Unitholders

 

General

 

Warrant

 

Comprehensive

 

Partners'

(In thousands)

 

Units

 

Amounts

 

Partner

 

Holders

 

Income

 

Capital

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

 

Net income (1)

 

 

 

 

 

73,064

 

 

 

1,491

 

 

 

 

 

 

 

 

 

74,555

 

Distributions to common unitholders and the general partner

 

 

 

 

 

(9,380

)

 

 

(191

)

 

 

 

 

 

 

 

 

(9,571

)

Distributions to preferred unitholders

 

 

 

 

 

(7,350

)

 

 

(150

)

 

 

 

 

 

 

 

 

(7,500

)

Unit-based awards amortization and vesting

 

 

 

 

 

1,245

 

 

 

 

 

 

 

 

 

 

 

 

1,245

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

289

 

 

 

289

 

Balance at September 30, 2022

 

 

12,506

 

 

$

358,332

 

 

$

5,054

 

 

$

47,964

 

 

$

2,032

 

 

$

413,382

 

______________________________

(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)

Consolidated Statements of Partners' Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Total

 

 

Common Unitholders

 

General

 

Warrant

 

Comprehensive

 

Partners'

(In thousands)

 

Units

 

Amounts

 

Partner

 

Holders

 

Income

 

Capital

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

 

Net income (3)

 

 

 

 

 

28,909

 

 

 

589

 

 

 

 

 

 

 

 

 

29,498

 

Distributions to common unitholders and the general partner

 

 

 

 

 

(5,558

)

 

 

(113

)

 

 

 

 

 

 

 

 

(5,671

)

Distributions to preferred unitholders

 

 

 

 

 

(7,687

)

 

 

(156

)

 

 

 

 

 

 

 

 

(7,843

)

Unit-based awards amortization and vesting

 

 

 

 

 

959

 

 

 

 

 

 

 

 

 

 

 

 

959

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,204

 

 

 

4,204

 

Balance at September 30, 2021

 

 

12,351

 

 

$

151,459

 

 

$

754

 

 

$

66,816

 

 

$

7,791

 

 

$

226,820

 

______________________________

(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.

(3)

Net income includes $8.0 million of income attributable to preferred unitholders that accumulated during the period, of which $7.8 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 table presents NRP's unaudited business results by segment for the three months ended September 30, 2022 and 2021 and June 30, 2022:

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

Mineral

 

 

 

 

 

Corporate
and

 

 

 

 

(In thousands)

 

Rights

 

Soda Ash

 

Financing

 

Total

For the Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

87,348

 

 

$

14,556

 

 

$

 

 

$

101,904

 

Gain on asset sales and disposals

 

 

354

 

 

 

 

 

 

 

 

 

354

 

Total revenues and other income

 

$

87,702

 

 

$

14,556

 

 

$

 

 

$

102,258

 

Asset impairments

 

$

812

 

 

$

 

 

$

 

 

$

812

 

Net income (loss)

 

$

72,173

 

 

$

14,525

 

 

$

(12,143

)

 

$

74,555

 

Adjusted EBITDA (1)

 

$

79,835

 

 

$

10,308

 

 

$

(4,518

)

 

$

85,625

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

75,948

 

 

$

10,309

 

 

$

(3,761

)

 

$

82,496

 

Investing activities

 

$

928

 

 

$

 

 

$

(59

)

 

$

869

 

Financing activities

 

$

 

 

$

 

 

$

(81,784

)

 

$

(81,784

)

Distributable cash flow (1)

 

$

76,876

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,365

 

Free cash flow (1)

 

$

76,523

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

______________________________

(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 nine months ended September 30, 2022 and 2021:

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

Mineral

 

 

 

 

 

Corporate
and

 

 

 

 

(In thousands)

 

Rights

 

Soda Ash

 

Financing

 

Total

For the Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

247,172

 

 

$

44,036

 

 

$

 

 

$

291,208

 

Gain on asset sales and disposals

 

 

699

 

 

 

 

 

 

 

 

 

699

 

Total revenues and other income

 

$

247,871

 

 

$

44,036

 

 

$

 

 

$

291,907

 

Asset impairments

 

$

874

 

 

$

 

 

$

 

 

$

874

 

Net income (loss)

 

$

204,548

 

 

$

43,931

 

 

$

(43,205

)

 

$

205,274

 

Adjusted EBITDA (1)

 

$

221,987

 

 

$

33,950

 

 

$

(14,037

)

 

$

241,900

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

194,475

 

 

$

33,934

 

 

$

(30,459

)

 

$

197,950

 

Investing activities

 

$

1,837

 

 

$

 

 

$

(59

)

 

$

1,778

 

Financing activities

 

$

(614

)

 

$

 

 

$

(273,697

)

 

$

(274,311

)

Distributable cash flow (1)

 

$

196,312

 

 

$

33,934

 

 

$

(30,518

)

 

$

199,728

 

Free cash flow (1)

 

$

195,613

 

 

$

33,934

 

 

$

(30,518

)

 

$

199,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

120,967

 

 

$

11,246

 

 

$

 

 

$

132,213

 

Gain on asset sales and disposals

 

 

243

 

 

 

 

 

 

 

 

 

243

 

Total revenues and other income

 

$

121,210

 

 

$

11,246

 

 

$

 

 

$

132,456

 

Asset impairments

 

$

4,116

 

 

$

 

 

$

 

 

$

4,116

 

Net income (loss)

 

$

82,980

 

 

$

11,115

 

 

$

(40,834

)

 

$

53,261

 

Adjusted EBITDA (1)

 

$

102,265

 

 

$

3,789

 

 

$

(11,550

)

 

$

94,504

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

91,958

 

 

$

3,817

 

 

$

(29,132

)

 

$

66,643

 

Investing activities

 

$

1,871

 

 

$

 

 

$

 

 

$

1,871

 

Financing activities

 

$

(1,132

)

 

$

 

 

$

(48,183

)

 

$

(49,315

)

Distributable cash flow (1)

 

$

93,829

 

 

$

3,817

 

 

$

(29,132

)

 

$

68,514

 

Free cash flow (1)

 

$

92,580

 

 

$

3,817

 

 

$

(29,132

)

 

$

67,265

 

______________________________

(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 Nine Months
Ended

 

 

September 30,

 

June 30,

 

September 30,

(In thousands, except per ton data)

 

2022

 

2021

 

2022

 

2022

 

2021

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

 

440

 

 

 

422

 

 

 

392

 

 

 

1,260

 

 

 

947

 

Central

 

 

3,503

 

 

 

3,199

 

 

 

3,484

 

 

 

10,238

 

 

 

8,824

 

Southern

 

 

498

 

 

 

642

 

 

 

312

 

 

 

1,171

 

 

 

1,058

 

Total Appalachia

 

 

4,441

 

 

 

4,263

 

 

 

4,188

 

 

 

12,669

 

 

 

10,829

 

Illinois Basin

 

 

3,490

 

 

 

2,689

 

 

 

3,403

 

 

 

8,395

 

 

 

7,987

 

Northern Powder River Basin

 

 

835

 

 

 

1,047

 

 

 

699

 

 

 

2,772

 

 

 

2,291

 

Gulf Coast

 

 

188

 

 

 

13

 

 

 

67

 

 

 

324

 

 

 

13

 

Total coal sales volumes

 

 

8,954

 

 

 

8,012

 

 

 

8,357

 

 

 

24,160

 

 

 

21,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

6.74

 

 

$

7.18

 

 

$

11.84

 

 

$

9.48

 

 

$

5.57

 

Central

 

 

9.04

 

 

 

5.74

 

 

 

12.19

 

 

 

10.85

 

 

 

4.91

 

Southern

 

 

9.78

 

 

 

11.61

 

 

 

17.67

 

 

 

14.28

 

 

 

9.82

 

Illinois Basin

 

 

2.57

 

 

 

2.33

 

 

 

2.07

 

 

 

2.30

 

 

 

2.13

 

Northern Powder River Basin

 

 

4.56

 

 

 

3.71

 

 

 

4.74

 

 

 

4.24

 

 

 

3.59

 

Gulf Coast

 

 

0.59

 

 

 

0.54

 

 

 

0.57

 

 

 

0.58

 

 

 

0.54

 

Combined average coal royalty revenue per ton

 

 

5.85

 

 

 

4.87

 

 

 

7.54

 

 

 

7.08

 

 

 

3.99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

2,965

 

 

$

3,031

 

 

$

4,640

 

 

$

11,946

 

 

$

5,272

 

Central

 

 

31,680

 

 

 

18,357

 

 

 

42,461

 

 

 

111,121

 

 

 

43,308

 

Southern

 

 

4,872

 

 

 

7,452

 

 

 

5,513

 

 

 

16,725

 

 

 

10,390

 

Total Appalachia

 

 

39,517

 

 

 

28,840

 

 

 

52,614

 

 

 

139,792

 

 

 

58,970

 

Illinois Basin

 

 

8,967

 

 

 

6,261

 

 

 

7,061

 

 

 

19,331

 

 

 

17,044

 

Northern Powder River Basin

 

 

3,805

 

 

 

3,881

 

 

 

3,314

 

 

 

11,751

 

 

 

8,222

 

Gulf Coast

 

 

111

 

 

 

7

 

 

 

38

 

 

 

187

 

 

 

7

 

Unadjusted coal royalty revenues

 

 

52,400

 

 

 

38,989

 

 

 

63,027

 

 

 

171,061

 

 

 

84,243

 

Coal royalty adjustment for minimum leases

 

 

(19

)

 

 

(6,557

)

 

 

(82

)

 

 

(286

)

 

 

(18,148

)

Total coal royalty revenues

 

$

52,381

 

 

$

32,432

 

 

$

62,945

 

 

 

170,775

 

 

$

66,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

1,885

 

 

$

3,235

 

 

$

65

 

 

$

3,542

 

 

$

10,241

 

Minimum lease straight-line revenues

 

 

4,778

 

 

 

4,808

 

 

 

4,674

 

 

 

14,235

 

 

 

15,773

 

Carbon neutral initiative revenues

 

 

8,600

 

 

 

 

 

 

 

 

 

8,600

 

 

 

 

Wheelage revenues

 

 

2,977

 

 

 

1,964

 

 

 

4,379

 

 

 

11,073

 

 

 

5,589

 

Property tax revenues

 

 

1,360

 

 

 

1,466

 

 

 

1,695

 

 

 

4,527

 

 

 

4,522

 

Coal overriding royalty revenues

 

 

1,367

 

 

 

757

 

 

 

682

 

 

 

2,307

 

 

 

3,592

 

Lease amendment revenues

 

 

759

 

 

 

1,519

 

 

 

811

 

 

 

2,450

 

 

 

3,159

 

Aggregates royalty revenues

 

 

884

 

 

 

429

 

 

 

1,037

 

 

 

2,691

 

 

 

1,339

 

Oil and gas royalty revenues

 

 

6,170

 

 

 

1,154

 

 

 

2,906

 

 

 

10,890

 

 

 

3,420

 

Other revenues

 

 

218

 

 

 

120

 

 

 

139

 

 

 

705

 

 

 

692

 

Total other revenues

 

$

28,998

 

 

$

15,452

 

 

$

16,388

 

 

$

61,020

 

 

$

48,327

 

Royalty and other mineral rights

 

$

81,379

 

 

$

47,884

 

 

$

79,333

 

 

$

231,795

 

 

$

114,422

 

Transportation and processing services revenues

 

 

5,969

 

 

 

2,171

 

 

 

5,612

 

 

 

15,377

 

 

 

6,545

 

Gain on asset sales and disposals

 

 

354

 

 

 

68

 

 

 

345

 

 

 

699

 

 

 

243

 

Total Mineral Rights segment revenues and other income

 

$

87,702

 

 

$

50,123

 

 

$

85,290

 

 

$

247,871

 

 

$

121,210

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Adjusted EBITDA

 

 

Mineral

 

 

 

 

 

Corporate
and

 

 

 

 

(In thousands)

 

Rights

 

Soda Ash

 

Financing

 

Total

For the Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

72,173

 

 

$

14,525

 

 

$

(12,143

)

 

$

74,555

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(14,556

)

 

 

 

 

 

(14,556

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

10,339

 

 

 

 

 

 

10,339

 

Add: interest expense, net

 

 

 

 

 

 

 

 

5,141

 

 

 

5,141

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

2,484

 

 

 

2,484

 

Add: depreciation, depletion and amortization

 

 

6,850

 

 

 

 

 

 

 

 

 

6,850

 

Add: asset impairments

 

 

812

 

 

 

 

 

 

 

 

 

812

 

Adjusted EBITDA

 

$

79,835

 

 

$

10,308

 

 

$

(4,518

)

 

$

85,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

 

5,182

 

 

 

 

 

 

 

 

 

5,182

 

Add: asset impairments

 

 

57

 

 

 

 

 

 

 

 

 

57

 

Adjusted EBITDA

 

$

41,845

 

 

$

(76

)

 

$

(4,052

)

 

$

37,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

 

 

Mineral

 

 

 

 

 

Corporate
and

 

 

 

 

(In thousands)

 

Rights

 

Soda Ash

 

Financing

 

Total

For the Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

204,548

 

 

$

43,931

 

 

$

(43,205

)

 

$

205,274

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(44,036

)

 

 

 

 

 

(44,036

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

34,055

 

 

 

 

 

 

34,055

 

Add: interest expense, net

 

 

 

 

 

 

 

 

22,636

 

 

 

22,636

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

6,532

 

 

 

6,532

 

Add: depreciation, depletion and amortization

 

 

16,565

 

 

 

 

 

 

 

 

 

16,565

 

Add: asset impairments

 

 

874

 

 

 

 

 

 

 

 

 

874

 

Adjusted EBITDA

 

$

221,987

 

 

$

33,950

 

 

$

(14,037

)

 

$

241,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

82,980

 

 

$

11,115

 

 

$

(40,834

)

 

$

53,261

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(11,246

)

 

 

 

 

 

(11,246

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

3,920

 

 

 

 

 

 

3,920

 

Add: interest expense, net

 

 

24

 

 

 

 

 

 

29,284

 

 

 

29,308

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

 

15,145

 

 

 

 

 

 

 

 

 

15,145

 

Add: asset impairments

 

 

4,116

 

 

 

 

 

 

 

 

 

4,116

 

Adjusted EBITDA

 

$

102,265

 

 

$

3,789

 

 

$

(11,550

)

 

$

94,504

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

(In thousands)

 

Mineral
Rights

 

Soda Ash

 

Corporate
and
Financing

 

Total

For the Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

75,948

 

 

$

10,309

 

 

$

(3,761

)

 

$

82,496

 

Add: proceeds from asset sales and disposals

 

 

353

 

 

 

 

 

 

 

 

 

353

 

Add: return of long-term contract receivable

 

 

575

 

 

 

 

 

 

 

 

 

575

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

(59

)

 

 

(59

)

Distributable cash flow

 

$

76,876

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,365

 

Less: proceeds from asset sales and disposals

 

 

(353

)

 

 

 

 

 

 

 

 

(353

)

Free cash flow

 

$

76,523

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

$

928

 

 

$

 

 

$

(59

)

 

$

869

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(81,784

)

 

 

(81,784

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

33,968