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Natural Resource Partners L.P. Reports Third Quarter 2023 Results and Declares Third Quarter 2023 Distribution of $0.75 per Common Unit

Natural Resource Partners L.P. (NYSE:NRP) today reported third quarter 2023 results as follows:

 

 

For the Three Months Ended

 

 

Last Twelve Months Ended

 

(In thousands) (Unaudited)

 

September 30, 2023

 

Net income

 

$

63,846

 

 

$

276,673

 

Operating cash flow

 

 

78,942

 

 

 

302,080

 

Free cash flow (1)

 

 

79,564

 

 

 

304,426

 

 

 

 

 

 

 

(1)

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

Highlights:

  • Generated $80 million of free cash flow
  • Paid second quarter 2023 common unit distribution of $0.75 per unit
  • Redeemed $50 million of preferred units at par with cash; $72 million of original $250 million preferred units remain outstanding
  • Repurchased 812,500 warrants in September and 650,000 warrants in October with $56 million in cash; 1.54 million of original 4 million warrants remain outstanding
  • Declares third quarter 2023 common unit distribution of $0.75 per unit

"NRP had another robust quarter with $80 million of free cash flow generated in the third quarter of 2023 as a result of continued strong performance from our mineral rights assets and a significant cash distribution from our soda ash investment," said Craig Nunez, NRP's president and chief operating officer. "We also made noteworthy progress towards our goal of eliminating all preferred units and warrants by redeeming $50 million of preferred units at par with cash and repurchasing a total of 1.46 million warrants for $56 million in cash. I am proud of the NRP team for the continued strong performance and am confident our strategy to retire all outstanding debt, preferred equity, and warrants while maintaining common unit distributions will continue to maximize long-term unitholder value.”

NRP announced today that the board of directors of its general partner declared a third quarter 2023 cash distribution of $0.75 per common unit to be paid on November 21, 2023, to unitholders of record on November 14, 2023. In addition, the board declared a $2.15 million cash distribution on NRP's 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 available liquidity was $45.4 million at September 30, 2023, consisting of $18.4 million of cash and $27.0 million of borrowing capacity available under its revolving credit facility.

Segment Performance

Mineral Rights

Mineral Rights net income, operating cash flow, and free cash flow for the third quarter of 2023 decreased $11.2 million, $15.0 million, and $15.0 million, respectively, as compared to the prior year period. These decreases were primarily due to certain carbon neutral initiative transactions entered into during the third quarter of 2022 and higher oil and gas royalty revenues as a result of higher natural gas production and prices in the third quarter of 2022. Approximately 60% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the third quarter of 2023.

Metallurgical coal prices improved and thermal coal prices remained relatively flat during the third quarter of 2023. Both metallurgical and thermal coal prices were above historical norms but below the record highs seen in 2022. NRP expects continued price support for coal as limited access to capital, labor shortages, and inflationary pressures limit operators’ ability to increase production.

In addition, NRP continues to explore carbon neutral revenue opportunities across its large asset portfolio, including the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar, and wind energy.

Soda Ash

Soda Ash net income in the third quarter of 2023 decreased $2.2 million as compared to the prior year period primarily due to lower international sales prices and an increased sales mix into the lower priced international market in the third quarter of 2023 as compared to the prior year period. Operating cash flow and free cash flow in the third quarter of 2023 improved $12.6 million as compared to the prior year period due to a higher cash distribution received from Sisecam Wyoming in the third quarter of 2023 stemming from strong operating performance in the first half of the year.

International soda ash prices were significantly lower in the third quarter of 2023 compared to the first half of the year primarily due to new supply from China. NRP believes lower international prices will persist throughout the remainder of the year and into next year as the market absorbs the additional supply. Sisecam Wyoming’s domestic soda ash sales prices are expected to remain above the spot market for the rest of this year as a result of negotiated 2023 domestic sales contracts entered into at the end of 2022. As domestic sales contracts for 2024 begin to be negotiated, NRP believes contracted sales prices will be set at lower levels as the market contends with recessionary headwinds and new supply entering the export markets.

Corporate and Financing

Corporate and Financing costs in the third quarter of 2023 decreased $2.6 million as compared to the prior year period primarily due to the loss on extinguishment of debt recognized in 2022. Operating cash flow and free cash flow in the third quarter of 2023 decreased $1.1 million as compared to the prior year period primarily due to higher cash paid for interest in the third quarter of 2023 due to borrowings on the credit facility used for the preferred unit redemptions and warrant repurchases.

NRP redeemed an aggregate of 50,001 preferred units at par with cash in the third quarter of 2023, saving NRP $6.0 million annually in preferred unit cash distributions. Of the originally issued 250,000 preferred units, 71,666 remain outstanding.

In addition, NRP repurchased 752,500 warrants with an exercise price of $22.81 and 60,000 warrants with an exercise price of $34.00 for $33.6 million in cash during the third quarter of 2023. In October, NRP repurchased 650,000 warrants with an exercise price of $34.00 for $22.5 million in cash. After the warrant repurchases in October, 1.54 million warrants with an exercise price of $34.00 remain outstanding.

In August 2023, NRP declared and paid a second quarter 2023 cash distribution of $0.75 per common unit and a $3.65 million cash distribution on its preferred units. Today, NRP declared a third quarter 2023 cash distribution of $0.75 per common unit and a $2.15 million cash distribution on its outstanding preferred units.

NRP's consolidated leverage ratio was 0.7x at September 30, 2023.

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/cHhtshxF. 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 conference call we suggest registering at minimum 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

Concurrent with this announcement, we are providing qualified notice to brokers and nominees that hold NRP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of NRP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, NRP's distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the sum of the highest applicable rate plus ten percent (10%).

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 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 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, redemption of preferred units, 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.

"Leverage ratio" represents the outstanding principal of NRP's debt at the end of the period divided by the last twelve months' Adjusted EBITDA as defined above. NRP believes that leverage ratio is a useful measure to management and investors to evaluate and monitor the indebtedness of NRP relative to its ability to generate income to service such debt and in understanding trends in NRPs overall financial condition. Leverage ratio may not be calculated the same for NRP as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios.

-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)

 

2023

 

 

2022

 

 

2023

 

 

2023

 

 

2022

 

Revenues and other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty and other mineral rights

 

$

68,533

 

 

$

81,379

 

 

$

61,007

 

 

$

205,811

 

 

$

231,795

 

Transportation and processing services

 

 

4,579

 

 

 

5,969

 

 

 

3,270

 

 

 

11,447

 

 

 

15,377

 

Equity in earnings of Sisecam Wyoming

 

 

12,401

 

 

 

14,556

 

 

 

26,978

 

 

 

58,633

 

 

 

44,036

 

Gain on asset sales and disposals

 

 

854

 

 

 

354

 

 

 

5

 

 

 

955

 

 

 

699

 

Total revenues and other income

 

$

86,367

 

 

$

102,258

 

 

$

91,260

 

 

$

276,846

 

 

$

291,907

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

 

$

8,358

 

 

$

7,898

 

 

$

7,930

 

 

$

23,451

 

 

$

25,989

 

Depreciation, depletion and amortization

 

 

4,594

 

 

 

6,850

 

 

 

3,792

 

 

 

12,469

 

 

 

16,565

 

General and administrative expenses

 

 

5,669

 

 

 

4,518

 

 

 

5,643

 

 

 

17,157

 

 

 

14,037

 

Asset impairments

 

 

63

 

 

 

812

 

 

 

69

 

 

 

132

 

 

 

874

 

Total operating expenses

 

$

18,684

 

 

$

20,078

 

 

$

17,434

 

 

$

53,209

 

 

$

57,465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

67,683

 

 

$

82,180

 

 

$

73,826

 

 

$

223,637

 

 

$

234,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

$

(3,837

)

 

$

(5,141

)

 

$

(3,492

)

 

$

(10,182

)

 

$

(22,636

)

Loss on extinguishment of debt

 

 

 

 

 

(2,484

)

 

 

 

 

 

 

 

 

(6,532

)

Total other expenses, net

 

$

(3,837

)

 

$

(7,625

)

 

$

(3,492

)

 

$

(10,182

)

 

$

(29,168

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,846

 

 

$

74,555

 

 

$

70,334

 

 

$

213,455

 

 

$

205,274

 

Less: income attributable to preferred unitholders

 

 

(2,936

)

 

 

(7,500

)

 

 

(4,971

)

 

 

(14,568

)

 

 

(22,500

)

Less: redemption of preferred units

 

 

(17,083

)

 

 

 

 

 

(27,618

)

 

 

(60,929

)

 

 

 

Net income attributable to common unitholders and the general partner

 

$

43,827

 

 

$

67,055

 

 

$

37,745

 

 

$

137,958

 

 

$

182,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common unitholders

 

$

42,951

 

 

$

65,714

 

 

$

36,990

 

 

$

135,199

 

 

$

179,119

 

Net income attributable to the general partner

 

 

876

 

 

 

1,341

 

 

 

755

 

 

 

2,759

 

 

 

3,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

3.40

 

 

$

5.25

 

 

$

2.93

 

 

$

10.72

 

 

$

14.36

 

Diluted

 

 

2.91

 

 

 

3.71

 

 

 

2.49

 

 

 

8.88

 

 

 

10.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,846

 

 

$

74,555

 

 

$

70,334

 

 

$

213,455

 

 

$

205,274

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

2,200

 

 

 

289

 

 

 

911

 

 

 

(16,472

)

 

 

(1,179

)

Comprehensive income

 

$

66,046

 

 

$

74,844

 

 

$

71,245

 

 

$

196,983

 

 

$

204,095

 

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)

 

2023

 

 

2022

 

 

2023

 

 

2023

 

 

2022

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,846

 

 

$

74,555

 

 

$

70,334

 

 

$

213,455

 

 

$

205,274

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

4,594

 

 

 

6,850

 

 

 

3,792

 

 

 

12,469

 

 

 

16,565

 

Distributions from unconsolidated investment

 

 

23,010

 

 

 

10,339

 

 

 

32,350

 

 

 

66,140

 

 

 

34,055

 

Equity earnings from unconsolidated investment

 

 

(12,401

)

 

 

(14,556

)

 

 

(26,978

)

 

 

(58,633

)

 

 

(44,036

)

Gain on asset sales and disposals

 

 

(854

)

 

 

(354

)

 

 

(5

)

 

 

(955

)

 

 

(699

)

Loss on extinguishment of debt

 

 

 

 

 

2,484

 

 

 

 

 

 

 

 

 

6,532

 

Asset impairments

 

 

63

 

 

 

812

 

 

 

69

 

 

 

132

 

 

 

874

 

Bad debt expense

 

 

1,621

 

 

 

1

 

 

 

(198

)

 

 

813

 

 

 

641

 

Unit-based compensation expense

 

 

2,766

 

 

 

1,429

 

 

 

2,646

 

 

 

7,903

 

 

 

4,216

 

Amortization of debt issuance costs and other

 

 

477

 

 

 

215

 

 

 

541

 

 

 

1,043

 

 

 

1,887

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,610

)

 

 

2,494

 

 

 

(361

)

 

 

4,090

 

 

 

(10,118

)

Accounts payable

 

 

(381

)

 

 

210

 

 

 

72

 

 

 

(850

)

 

 

223

 

Accrued liabilities

 

 

498

 

 

 

278

 

 

 

2,019

 

 

 

(6,288

)

 

 

(4,831

)

Accrued interest

 

 

599

 

 

 

3,177

 

 

 

(627

)

 

 

235

 

 

 

3,014

 

Deferred revenue

 

 

(2,163

)

 

 

(7,519

)

 

 

(2,646

)

 

 

(4,963

)

 

 

(17,094

)

Other items, net

 

 

(123

)

 

 

2,081

 

 

 

342

 

 

 

(1,399

)

 

 

1,447

 

Net cash provided by operating activities

 

$

78,942

 

 

$

82,496

 

 

$

81,350

 

 

$

233,192

 

 

$

197,950

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

 

$

855

 

 

$

353

 

 

$

5

 

 

$

961

 

 

$

699

 

Return of long-term contract receivable

 

 

622

 

 

 

575

 

 

 

610

 

 

 

1,830

 

 

 

1,138

 

Capital expenditures

 

 

 

 

 

(59

)

 

 

(8

)

 

 

(10

)

 

 

(59

)

Net cash provided by investing activities

 

$

1,477

 

 

$

869

 

 

$

607

 

 

$

2,781

 

 

$

1,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt borrowings

 

$

50,000

 

 

$

 

 

$

70,834

 

 

$

215,034

 

 

$

 

Debt repayments

 

 

(25,000

)

 

 

(60,494

)

 

 

(61,365

)

 

 

(176,061

)

 

 

(197,665

)

Distributions to common unitholders and the general partner

 

 

(9,669

)

 

 

(9,571

)

 

 

(9,669

)

 

 

(60,238

)

 

 

(24,813

)

Distributions to preferred unitholders

 

 

(4,437

)

 

 

(7,500

)

 

 

(7,396

)

 

 

(19,919

)

 

 

(22,758

)

Redemption of preferred units

 

 

(50,001

)

 

 

 

 

 

(80,834

)

 

 

(178,334

)

 

 

 

Redemption of preferred units paid-in-kind

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,321

)

Warrant settlement

 

 

(33,608

)

 

 

 

 

 

 

 

 

(33,608

)

 

 

 

Other items, net

 

 

(23

)

 

 

(4,219

)

 

 

(452

)

 

 

(3,527

)

 

 

(9,754

)

Net cash used in financing activities

 

$

(72,738

)

 

$

(81,784

)

 

$

(88,882

)

 

$

(256,653

)

 

$

(274,311

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

$

7,681

 

 

$

1,581

 

 

$

(6,925

)

 

$

(20,680

)

 

$

(74,583

)

Cash and cash equivalents at beginning of period

 

 

10,730

 

 

 

59,356

 

 

 

17,655

 

 

 

39,091

 

 

 

135,520

 

Cash and cash equivalents at end of period

 

$

18,411

 

 

$

60,937

 

 

$

10,730

 

 

$

18,411

 

 

$

60,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

3,050

 

 

$

1,729

 

 

$

3,960

 

 

$

9,484

 

 

$

18,501

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Balance Sheets

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

(In thousands, except unit data)

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

18,411

 

 

$

39,091

 

Accounts receivable, net

 

 

38,569

 

 

 

42,701

 

Other current assets, net

 

 

2,570

 

 

 

1,822

 

Total current assets

 

$

59,550

 

 

$

83,614

 

Land

 

 

24,008

 

 

 

24,008

 

Mineral rights, net

 

 

400,548

 

 

 

412,312

 

Intangible assets, net

 

 

14,014

 

 

 

14,713

 

Equity in unconsolidated investment

 

 

282,491

 

 

 

306,470

 

Long-term contract receivable, net

 

 

26,997

 

 

 

28,946

 

Other long-term assets, net

 

 

7,601

 

 

 

7,068

 

Total assets

 

$

815,209

 

 

$

877,131

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,143

 

 

$

1,992

 

Accrued liabilities

 

 

6,511

 

 

 

11,916

 

Accrued interest

 

 

1,224

 

 

 

989

 

Current portion of deferred revenue

 

 

6,399

 

 

 

6,256

 

Current portion of long-term debt, net

 

 

36,780

 

 

 

39,076

 

Total current liabilities

 

$

52,057

 

 

$

60,229

 

Deferred revenue

 

 

35,076

 

 

 

40,181

 

Long-term debt, net

 

 

170,735

 

 

 

129,205

 

Other non-current liabilities

 

 

6,833

 

 

 

5,472

 

Total liabilities

 

$

264,701

 

 

$

235,087

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Class A Convertible Preferred Units (71,666 and 250,000 units issued and outstanding at September 30, 2023 and December 31, 2022, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at September 30, 2023 and December 31, 2022)

 

$

47,181

 

 

$

164,587

 

Partners’ capital

 

 

 

 

 

 

 

 

Common unitholders’ interest (12,634,642 and 12,505,996 units issued and outstanding at September 30, 2023 and December 31, 2022, respectively)

 

$

461,043

 

 

$

404,799

 

General partner’s interest

 

 

7,196

 

 

 

5,977

 

Warrant holders’ interest

 

 

32,843

 

 

 

47,964

 

Accumulated other comprehensive income

 

 

2,245

 

 

 

18,717

 

Total partners’ capital

 

$

503,327

 

 

$

477,457

 

Total liabilities and partners' capital

 

$

815,209

 

 

$

877,131

 

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 (Loss)

 

 

Capital

 

Balance at December 31, 2022

 

 

12,506

 

 

$

404,799

 

 

$

5,977

 

 

$

47,964

 

 

$

18,717

 

 

$

477,457

 

Net income (1)

 

 

 

 

 

77,690

 

 

 

1,585

 

 

 

 

 

 

 

 

 

79,275

 

Redemption of preferred units

 

 

 

 

 

(15,904

)

 

 

(324

)

 

 

 

 

 

 

 

 

(16,228

)

Distributions to common unitholders and the general partner

 

 

 

 

 

(40,082

)

 

 

(818

)

 

 

 

 

 

 

 

 

(40,900

)

Distributions to preferred unitholders

 

 

 

 

 

(7,924

)

 

 

(162

)

 

 

 

 

 

 

 

 

(8,086

)

Issuance of unit-based awards

 

 

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

 

 

 

(1,178

)

 

 

 

 

 

 

 

 

 

 

 

(1,178

)

Capital contribution

 

 

 

 

 

 

 

 

142

 

 

 

 

 

 

 

 

 

142

 

Comprehensive loss from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,583

)

 

 

(19,583

)

Balance at March 31, 2023

 

 

12,635

 

 

$

417,401

 

 

$

6,400

 

 

$

47,964

 

 

$

(866

)

 

$

470,899

 

Net income (2)

 

 

 

 

 

68,927

 

 

 

1,407

 

 

 

 

 

 

 

 

 

70,334

 

Redemption of preferred units

 

 

 

 

 

(27,065

)

 

 

(553

)

 

 

 

 

 

 

 

 

(27,618

)

Distributions to common unitholders and the general partner

 

 

 

 

 

(9,476

)

 

 

(193

)

 

 

 

 

 

 

 

 

(9,669

)

Distributions to preferred unitholders

 

 

 

 

 

(7,248

)

 

 

(148

)

 

 

 

 

 

 

 

 

(7,396

)

Unit-based awards amortization and vesting

 

 

 

 

 

2,299

 

 

 

 

 

 

 

 

 

 

 

 

2,299

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

911

 

 

 

911

 

Balance at June 30, 2023

 

 

12,635

 

 

$

444,838

 

 

$

6,913

 

 

$

47,964

 

 

$

45

 

 

$

499,760

 

Net income (3)

 

 

 

 

 

62,569

 

 

 

1,277

 

 

 

 

 

 

 

 

 

63,846

 

Redemption of preferred units

 

 

 

 

 

(16,741

)

 

 

(342

)

 

 

 

 

 

 

 

 

(17,083

)

Distributions to common unitholders and the general partner

 

 

 

 

 

(9,475

)

 

 

(194

)

 

 

 

 

 

 

 

 

(9,669

)

Distributions to preferred unitholders

 

 

 

 

 

(4,349

)

 

 

(88

)

 

 

 

 

 

 

 

 

(4,437

)

Unit-based awards amortization and vesting

 

 

 

 

 

2,318

 

 

 

 

 

 

 

 

 

 

 

 

2,318

 

Warrant settlement

 

 

 

 

 

(18,117

)

 

 

(370

)

 

 

(15,121

)

 

 

 

 

 

(33,608

)

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,200

 

 

 

2,200

 

Balance at September 30, 2023

 

 

12,635

 

 

$

461,043

 

 

$

7,196

 

 

$

32,843

 

 

$

2,245

 

 

$

503,327

 

 

 

 

 

 

(1)

Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.

(2)

Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.

(3)

Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 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, 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)

 

The following table presents NRP's unaudited business results by segment for the three months ended September 30, 2023 and 2022 and June 30, 2023:

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

Mineral

 

 

 

 

 

 

Corporate and

 

 

 

 

 

(In thousands)

 

Rights

 

 

Soda Ash

 

 

Financing

 

 

Total

 

For the Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

73,112

 

 

$

12,401

 

 

$

 

 

$

85,513

 

Gain on asset sales and disposals

 

 

854

 

 

 

 

 

 

 

 

 

854

 

Total revenues and other income

 

$

73,966

 

 

$

12,401

 

 

$

 

 

$

86,367

 

Asset impairments

 

$

63

 

 

$

 

 

$

 

 

$

63

 

Net income (loss)

 

$

61,009

 

 

$

12,348

 

 

$

(9,511

)

 

$

63,846

 

Adjusted EBITDA (1)

 

$

65,661

 

 

$

22,957

 

 

$

(5,669

)

 

$

82,949

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

60,938

 

 

$

22,958

 

 

$

(4,954

)

 

$

78,942

 

Investing activities

 

$

1,477

 

 

$

 

 

$

 

 

$

1,477

 

Financing activities

 

$

 

 

$

 

 

$

(72,738

)

 

$

(72,738

)

Distributable cash flow (1)

 

$

62,415

 

 

$

22,958

 

 

$

(4,954

)

 

$

80,419

 

Free cash flow (1)

 

$

61,560

 

 

$

22,958

 

 

$

(4,954

)

 

$

79,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

64,277

 

 

$

26,978

 

 

$

 

 

$

91,255

 

Gain on asset sales and disposals

 

 

5

 

 

 

 

 

 

 

 

 

5

 

Total revenues and other income

 

$

64,282

 

 

$

26,978

 

 

$

 

 

$

91,260

 

Asset impairments

 

$

69

 

 

$

 

 

$

 

 

$

69

 

Net income (loss)

 

$

52,510

 

 

$

26,964

 

 

$

(9,140

)

 

$

70,334

 

Adjusted EBITDA (1)

 

$

56,366

 

 

$

32,336

 

 

$

(5,643

)

 

$

83,059

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

55,040

 

 

$

32,326

 

 

$

(6,016

)

 

$

81,350

 

Investing activities

 

$

615

 

 

$

 

 

$

(8

)

 

$

607

 

Financing activities

 

$

 

 

$

 

 

$

(88,882

)

 

$

(88,882

)

Distributable cash flow (1)

 

$

55,655

 

 

$

32,326

 

 

$

(6,024

)

 

$

81,957

 

Free cash flow (1)

 

$

55,650

 

 

$

32,326

 

 

$

(6,024

)

 

$

81,952

 

 

 

 

 

 

 

(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, 2023 and 2022:

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

Mineral

 

 

 

 

 

 

Corporate and

 

 

 

 

 

(In thousands)

 

Rights

 

 

Soda Ash

 

 

Financing

 

 

Total

 

For the Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

217,258

 

 

$

58,633

 

 

$

 

 

$

275,891

 

Gain on asset sales and disposals

 

 

955

 

 

 

 

 

 

 

 

 

955

 

Total revenues and other income

 

$

218,213

 

 

$

58,633

 

 

$

 

 

$

276,846

 

Asset impairments

 

$

132

 

 

$

 

 

$

 

 

$

132

 

Net income (loss)

 

$

182,400

 

 

$

58,408

 

 

$

(27,353

)

 

$

213,455

 

Adjusted EBITDA (1)

 

$

194,987

 

 

$

65,915

 

 

$

(17,157

)

 

$

243,745

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

189,836

 

 

$

65,901

 

 

$

(22,545

)

 

$

233,192

 

Investing activities

 

$

2,791

 

 

$

 

 

$

(10

)

 

$

2,781

 

Financing activities

 

$

(583

)

 

$

 

 

$

(256,070

)

 

$

(256,653

)

Distributable cash flow (1)

 

$

192,627

 

 

$

65,901

 

 

$

(22,555

)

 

$

235,973

 

Free cash flow (1)

 

$

191,666

 

 

$

65,901

 

 

$

(22,555

)

 

$

235,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

(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)

 

2023

 

 

2022

 

 

2023

 

 

2023

 

 

2022

 

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

 

284

 

 

 

440

 

 

 

390

 

 

 

1,053

 

 

 

1,260

 

Central

 

 

3,429

 

 

 

3,503

 

 

 

3,352

 

 

 

10,390

 

 

 

10,238

 

Southern

 

 

741

 

 

 

498

 

 

 

693

 

 

 

2,016

 

 

 

1,171

 

Total Appalachia

 

 

4,454

 

 

 

4,441

 

 

 

4,435

 

 

 

13,459

 

 

 

12,669

 

Illinois Basin

 

 

2,541

 

 

 

3,490

 

 

 

1,631

 

 

 

5,482

 

 

 

8,395

 

Northern Powder River Basin

 

 

1,364

 

 

 

835

 

 

 

881

 

 

 

3,330

 

 

 

2,772

 

Gulf Coast

 

 

479

 

 

 

188

 

 

 

139

 

 

 

676

 

 

 

324

 

Total coal sales volumes

 

 

8,838

 

 

 

8,954

 

 

 

7,086

 

 

 

22,947

 

 

 

24,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

5.54

 

 

$

6.74

 

 

$

6.87

 

 

$

7.59

 

 

$

9.48

 

Central

 

 

8.20

 

 

 

9.04

 

 

 

8.49

 

 

 

8.89

 

 

 

10.85

 

Southern

 

 

11.88

 

 

 

9.78

 

 

 

10.85

 

 

 

12.41

 

 

 

14.28

 

Illinois Basin

 

 

3.98

 

 

 

2.57

 

 

 

3.15

 

 

 

3.63

 

 

 

2.30

 

Northern Powder River Basin

 

 

4.86

 

 

 

4.56

 

 

 

4.62

 

 

 

4.74

 

 

 

4.24

 

Gulf Coast

 

 

0.69

 

 

 

0.59

 

 

 

0.71

 

 

 

0.68

 

 

 

0.58

 

Combined average coal royalty revenue per ton

 

 

6.29

 

 

 

5.85

 

 

 

6.77

 

 

 

7.04

 

 

 

7.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

1,573

 

 

$

2,965

 

 

$

2,681

 

 

$

7,991

 

 

$

11,946

 

Central

 

 

28,111

 

 

 

31,680

 

 

 

28,445

 

 

 

92,362

 

 

 

111,121

 

Southern

 

 

8,806

 

 

 

4,872

 

 

 

7,521

 

 

 

25,024

 

 

 

16,725

 

Total Appalachia

 

 

38,490

 

 

 

39,517

 

 

 

38,647

 

 

 

125,377

 

 

 

139,792

 

Illinois Basin

 

 

10,108

 

 

 

8,967

 

 

 

5,141

 

 

 

19,924

 

 

 

19,331

 

Northern Powder River Basin

 

 

6,627

 

 

 

3,805

 

 

 

4,066

 

 

 

15,768

 

 

 

11,751

 

Gulf Coast

 

 

330

 

 

 

111

 

 

 

98

 

 

 

461

 

 

 

187

 

Unadjusted coal royalty revenues

 

 

55,555

 

 

 

52,400

 

 

 

47,952

 

 

 

161,530

 

 

 

171,061

 

Coal royalty adjustment for minimum leases

 

 

(11

)

 

 

(19

)

 

 

8

 

 

 

(3

)

 

 

(286

)

Total coal royalty revenues

 

$

55,544

 

 

$

52,381

 

 

$

47,960

 

 

$

161,527

 

 

$

170,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

850

 

 

$

1,885

 

 

$

562

 

 

$

2,025

 

 

$

3,542

 

Minimum lease straight-line revenues

 

 

4,464

 

 

 

4,778

 

 

 

4,447

 

 

 

13,414

 

 

 

14,235

 

Carbon neutral initiative revenues

 

 

681

 

 

 

8,600

 

 

 

115

 

 

 

2,914

 

 

 

8,600

 

Wheelage revenues

 

 

2,385

 

 

 

2,977

 

 

 

3,284

 

 

 

9,538

 

 

 

11,073

 

Property tax revenues

 

 

1,770

 

 

 

1,360

 

 

 

1,470

 

 

 

4,710

 

 

 

4,527

 

Coal overriding royalty revenues

 

 

827

 

 

 

1,367

 

 

 

150

 

 

 

1,165

 

 

 

2,307

 

Lease amendment revenues

 

 

623

 

 

 

759

 

 

 

848

 

 

 

2,322

 

 

 

2,450

 

Aggregates royalty revenues

 

 

736

 

 

 

884

 

 

 

686

 

 

 

2,175

 

 

 

2,691

 

Oil and gas royalty revenues

 

 

324

 

 

 

6,170

 

 

 

1,214

 

 

 

5,126

 

 

 

10,890

 

Other revenues

 

 

329

 

 

 

218

 

 

 

271

 

 

 

895

 

 

 

705

 

Total other revenues

 

$

12,989

 

 

$

28,998

 

 

$

13,047

 

 

$

44,284

 

 

$

61,020

 

Royalty and other mineral rights

 

$

68,533

 

 

$

81,379

 

 

$

61,007

 

 

$

205,811

 

 

$

231,795

 

Transportation and processing services revenues

 

 

4,579

 

 

 

5,969

 

 

 

3,270

 

 

 

11,447

 

 

 

15,377

 

Gain on asset sales and disposals

 

 

854

 

 

 

354

 

 

 

5

 

 

 

955

 

 

 

699

 

Total Mineral Rights segment revenues and other income

 

$

73,966

 

 

$

87,702

 

 

$

64,282

 

 

$

218,213

 

 

$

247,871

 

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, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

61,009

 

 

$

12,348

 

 

$

(9,511

)

 

$

63,846

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(12,401

)

 

 

 

 

 

(12,401

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

23,010

 

 

 

 

 

 

23,010

 

Add: interest expense, net

 

 

 

 

 

 

 

 

3,837

 

 

 

3,837

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

 

4,589

 

 

 

 

 

 

5

 

 

 

4,594

 

Add: asset impairments

 

 

63

 

 

 

 

 

 

 

 

 

63

 

Adjusted EBITDA

 

$

65,661

 

 

$

22,957

 

 

$

(5,669

)

 

$

82,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

52,510

 

 

$

26,964

 

 

$

(9,140

)

 

$

70,334

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(26,978

)

 

 

 

 

 

(26,978

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

32,350

 

 

 

 

 

 

32,350

 

Add: interest expense, net

 

 

 

 

 

 

 

 

3,492

 

 

 

3,492

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

 

3,787

 

 

 

 

 

 

5

 

 

 

3,792

 

Add: asset impairments

 

 

69

 

 

 

 

 

 

 

 

 

69

 

Adjusted EBITDA

 

$

56,366

 

 

$

32,336

 

 

$

(5,643

)

 

$

83,059

 

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 Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

182,400

 

 

$

58,408

 

 

$

(27,353

)

 

$

213,455

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(58,633

)

 

 

 

 

 

(58,633

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

66,140

 

 

 

 

 

 

66,140

 

Add: interest expense, net

 

 

 

 

 

 

 

 

10,182

 

 

 

10,182

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

 

12,455

 

 

 

 

 

 

14

 

 

 

12,469

 

Add: asset impairments

 

 

132

 

 

 

 

 

 

 

 

 

132

 

Adjusted EBITDA

 

$

194,987

 

 

$

65,915

 

 

$

(17,157

)

 

$

243,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 
 

Distributable Cash Flow and Free Cash Flow

 

 

Mineral

 

 

 

 

 

 

Corporate and

 

 

 

 

 

(In thousands)

 

Rights

 

 

Soda Ash

 

 

Financing

 

 

Total

 

For the Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

60,938

 

 

$

22,958

 

 

$

(4,954

)

 

$

78,942

 

Add: proceeds from asset sales and disposals

 

 

855

 

 

 

 

 

 

 

 

 

855

 

Add: return of long-term contract receivable

 

 

622

 

 

 

 

 

 

 

 

 

622

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Distributable cash flow

 

$

62,415

 

 

$

22,958

 

 

$

(4,954

)

 

$

80,419

 

Less: proceeds from asset sales and disposals

 

 

(855

)

 

 

 

 

 

 

 

 

(855

)

Free cash flow

 

$

61,560

 

 

$

22,958

 

 

$

(4,954

)

 

$

79,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

1,477

 

 

$

 

 

$

 

 

$

1,477

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(72,738

)

 

 

(72,738

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

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 June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

55,040

 

 

$

32,326

 

 

$

(6,016

)

 

$

81,350

 

Add: proceeds from asset sales and disposals

 

 

5

 

 

 

 

 

 

 

 

 

5

 

Add: return of long-term contract receivable

 

 

610

 

 

 

 

 

 

 

 

 

610

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

(8

)

 

 

(8

)

Distributable cash flow

 

$

55,655

 

 

$

32,326

 

 

$

(6,024

)

 

$

81,957

 

Less: proceeds from asset sales and disposals

 

 

(5

)

 

 

 

 

 

 

 

 

(5

)

Free cash flow

 

$

55,650