HOUSTON, Nov. 7, 2016 /PRNewswire/ --Natural Resource
Partners L.P. (NYSE:NRP) today reported net income from
continuing operations attributable to the limited partners for the
three months ended September 30, 2016
of $16.2 million, or $1.32 per unit, an increase of $338.3 million, from a loss of $322.1 million, or $(26.34) per unit, a year earlier. Net cash
provided by operating activities from continuing operations was
$35.9 million in the third quarter of
2016, a decrease of $11.3 million
compared to the prior year. Adjusted EBITDA, a non-GAAP
measure, was $58.9 million for the
three months ended September 30,
2016, a decrease of $11.5
million compared to the same period in 2015. Excluding
impairments and gains on sale of assets in both years, net income
from continuing operations attributable to the limited partners was
$15.4 million for the quarter ended
September 30, 2016 compared to
$30.5 million for the same quarter
last year. In addition, NRP received $109.9 million in net cash proceeds from the sale
of its Williston Basin oil and gas properties (classified as
discontinued operations). NRP ended the quarter with
$92.4 million in cash.
Reconciliations for all non-GAAP items are shown in tables at the
end of the release.
"Towards the end of the third quarter we began to see the
benefits from higher coal prices as a result of the rapidly
improving coal market," said Wyatt
Hogan, President and Chief Operating Officer. "Our large
exposure to metallurgical coal should benefit NRP as the benchmark
metallurgical coal prices have increased over 100% in recent
months. In addition, our soda ash and construction aggregates
businesses continue to perform in line with our expectations, and
provide a steady source of diversified income."
Business Results and Outlook
The table below presents NRP's business results by segment for
the three months ended September 30,
2016 and 2015:
|
|
Operating Business
Segments
|
|
|
|
|
|
Coal
Royalty
and Other (1)
|
|
|
|
|
|
Corporate
and
Financing
|
|
|
|
|
|
Soda
Ash
|
|
VantaCore
|
|
|
Total
|
|
|
(In
thousands)
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Total revenues and
other income
|
|
$
|
55,363
|
|
|
$
|
10,753
|
|
|
$
|
31,758
|
|
|
$
|
—
|
|
|
$
|
97,874
|
|
Total operating
expenses excluding impairments (2)
|
|
$
|
17,461
|
|
|
$
|
—
|
|
|
$
|
30,674
|
|
|
$
|
5,135
|
|
|
$
|
53,270
|
|
Asset
impairments
|
|
$
|
5,697
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,697
|
|
Net income (loss)
from continuing operations
|
|
$
|
32,250
|
|
|
$
|
10,753
|
|
|
$
|
1,039
|
|
|
$
|
(27,623)
|
|
|
$
|
16,419
|
|
Adjusted EBITDA
(2)
|
|
$
|
47,017
|
|
|
$
|
12,250
|
|
|
$
|
4,800
|
|
|
$
|
(5,132)
|
|
|
$
|
58,935
|
|
Net cash provided by
(used in) operating activities of continuing
operations
|
|
$
|
34,997
|
|
|
$
|
12,250
|
|
|
$
|
4,357
|
|
|
$
|
(15,703)
|
|
|
$
|
35,901
|
|
Net cash provided by
(used in) investing activities of continuing
operations
|
|
$
|
10,691
|
|
|
$
|
—
|
|
|
$
|
(434)
|
|
|
$
|
—
|
|
|
$
|
10,257
|
|
Net cash provided by
(used in) financing activities of continuing
operations
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,843
|
|
|
$
|
24,843
|
|
Distributable Cash
Flow (2)
|
|
$
|
45,683
|
|
|
$
|
12,250
|
|
|
$
|
4,093
|
|
|
$
|
(15,703)
|
|
|
$
|
156,212
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Total revenues and
other income
|
|
$
|
62,222
|
|
|
$
|
12,617
|
|
|
$
|
39,193
|
|
|
$
|
—
|
|
|
$
|
114,032
|
|
Total operating
expenses excluding impairments (2)
|
|
$
|
19,491
|
|
|
$
|
—
|
|
|
$
|
36,436
|
|
|
$
|
4,233
|
|
|
$
|
60,160
|
|
Asset
impairments
|
|
$
|
361,703
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
361,703
|
|
Net income (loss)
from continuing operations
|
|
$
|
(318,972)
|
|
|
$
|
12,617
|
|
|
$
|
2,757
|
|
|
$
|
(27,138)
|
|
|
$
|
(330,736)
|
|
Adjusted EBITDA
(2)
|
|
$
|
55,390
|
|
|
$
|
12,740
|
|
|
$
|
6,535
|
|
|
$
|
(4,233)
|
|
|
$
|
70,432
|
|
Net cash provided by
(used in) operating activities of continuing
operations
|
|
$
|
40,389
|
|
|
$
|
12,762
|
|
|
$
|
5,841
|
|
|
$
|
(11,818)
|
|
|
$
|
47,174
|
|
Net cash provided by
(used in) investing activities of continuing
operations
|
|
$
|
8,422
|
|
|
$
|
—
|
|
|
$
|
(3,057)
|
|
|
$
|
—
|
|
|
$
|
5,365
|
|
Net cash provided by
(used in) financing activities of continuing
operations
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(11,678)
|
|
|
$
|
(11,678)
|
|
Distributable Cash
Flow (2)
|
|
$
|
48,932
|
|
|
$
|
12,762
|
|
|
$
|
4,331
|
|
|
$
|
(11,818)
|
|
|
$
|
54,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As a result of the
sale of our non-operated oil and gas working interest assets in the
third quarter of 2016, the Partnership transitioned management
responsibilities and reporting of its oil and gas royalty assets
into the Coal Royalty and Other operating segment. The Partnership
has adjusted the corresponding items of segment information for
prior periods to reflect this change and eliminated its oil and gas
segment.
|
|
|
(2)
|
See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
|
The table below presents NRP's business results by segment for
the nine months ended September 30,
2016 and 2015:
|
|
Operating Business
Segments
|
|
|
|
|
|
Coal
Royalty
and Other (1)
|
|
|
|
|
|
Corporate
and
Financing
|
|
|
|
|
|
Soda
Ash
|
|
VantaCore
|
|
|
Total
|
|
|
(In
thousands)
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Total revenues and
other income
|
|
$
|
193,114
|
|
|
$
|
30,742
|
|
|
$
|
88,091
|
|
|
$
|
—
|
|
|
$
|
311,947
|
|
Total operating
expenses excluding impairments (2)
|
|
$
|
47,728
|
|
|
$
|
—
|
|
|
$
|
84,553
|
|
|
$
|
13,346
|
|
|
$
|
145,627
|
|
Asset
impairments
|
|
$
|
7,681
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,681
|
|
Net income (loss)
from continuing operations
|
|
$
|
137,802
|
|
|
$
|
30,742
|
|
|
$
|
3,441
|
|
|
$
|
(80,582)
|
|
|
$
|
91,403
|
|
Adjusted EBITDA
(2)
|
|
$
|
168,979
|
|
|
$
|
34,300
|
|
|
$
|
14,454
|
|
|
$
|
(13,317)
|
|
|
$
|
204,416
|
|
Net cash provided by
(used in) operating activities of continuing
operations
|
|
$
|
91,372
|
|
|
$
|
34,300
|
|
|
$
|
16,680
|
|
|
$
|
(67,805)
|
|
|
$
|
74,547
|
|
Net cash provided by
(used in) investing activities of continuing
operations
|
|
$
|
57,834
|
|
|
$
|
—
|
|
|
$
|
(4,324)
|
|
|
$
|
—
|
|
|
$
|
53,510
|
|
Net cash provided by
(used in) financing activities of continuing
operations
|
|
$
|
—
|
|
|
$
|
(7,229)
|
|
|
$
|
(1,593)
|
|
|
$
|
(68,047)
|
|
|
$
|
(76,869)
|
|
Distributable Cash
Flow (2)
|
|
$
|
149,206
|
|
|
$
|
34,300
|
|
|
$
|
13,111
|
|
|
$
|
(67,805)
|
|
|
$
|
238,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Total revenues and
other income
|
|
$
|
190,004
|
|
|
$
|
36,739
|
|
|
$
|
107,034
|
|
|
$
|
—
|
|
|
$
|
333,777
|
|
Total operating
expenses excluding impairments (2)
|
|
$
|
58,301
|
|
|
$
|
—
|
|
|
$
|
103,155
|
|
|
$
|
9,823
|
|
|
$
|
171,279
|
|
Asset
impairments
|
|
$
|
365,506
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
365,506
|
|
Net income (loss)
from continuing operations
|
|
$
|
(233,803)
|
|
|
$
|
36,739
|
|
|
$
|
3,879
|
|
|
$
|
(76,783)
|
|
|
$
|
(269,968)
|
|
Adjusted EBITDA
(2)
|
|
$
|
156,942
|
|
|
$
|
34,545
|
|
|
$
|
16,378
|
|
|
$
|
(9,807)
|
|
|
$
|
198,058
|
|
Net cash provided by
(used in) operating activities of continuing
operations
|
|
$
|
149,841
|
|
|
$
|
30,778
|
|
|
$
|
19,783
|
|
|
$
|
(68,211)
|
|
|
$
|
132,191
|
|
Net cash provided by
(used in) investing activities of continuing
operations
|
|
$
|
15,546
|
|
|
$
|
—
|
|
|
$
|
(7,417)
|
|
|
$
|
—
|
|
|
$
|
8,129
|
|
Net cash provided by
(used in) financing activities of continuing
operations
|
|
$
|
(2,744)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(136,882)
|
|
|
$
|
(139,626)
|
|
Distributable Cash
Flow (2)
|
|
$
|
162,972
|
|
|
$
|
30,778
|
|
|
$
|
16,940
|
|
|
$
|
(68,211)
|
|
|
$
|
142,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
As a result of the
sale of our non-operated oil and gas working interest assets in the
third quarter of 2016, the Partnership transitioned management
responsibilities and reporting of its oil and gas royalty assets
into the Coal Royalty and Other operating segment. The Partnership
has adjusted the corresponding items of segment information for
prior periods to reflect this change and eliminated its oil and gas
segment.
|
|
|
(2)
|
See "Non-GAAP
Financial Measures" and reconciliation tables at the end of this
release.
|
Coal Royalty and Other
NRP stands to benefit from recent improvements in both the
thermal and metallurgical coal markets. The metallurgical
coal markets in particular have improved significantly over the
last few months, with global contract and spot prices in excess of
$200/ton due to supply shortages
caused by China's recent
production cutbacks, operational disruptions in Australia, and the significant number of mine
closures in the United States. As a result of the increased
pricing, some of the higher-quality coal from our properties that
is typically sold into the thermal market is now being sold by our
lessees into the metallurgical markets, which command a higher
price per ton than the thermal markets. We expect this trend
to continue to the extent the metallurgical markets show sustained
improvements. We derived approximately 32% of our coal
royalty revenues and 37% of the related production from
metallurgical coal during the nine months ended September 30,
2016. The domestic thermal coal markets have also shown
modest improvements, as production cuts over the last year have
rationalized coal stockpiles. Higher recent natural gas
prices have also caused thermal coal to be more competitive for
electricity generation.
Revenues and other income decreased $6.8
million, or 11%, from $62.2
million in the three months ended September 30, 2015 to $55.4 million in the three months ended
September 30, 2016. An
$10.9 million reduction in total coal
royalty revenues was caused by a 4.0 million ton reduction in sales
and a $0.32 per ton decrease in
combined average coal royalty revenue per ton. While all
regions except the Northern Powder River experienced reduced
revenue, the largest decrease occurred in Central Appalachia, which
continues to face challenges with respect to thermal coal
production.
Net income from continuing operations increased $351.3 million, from a loss of $319.0 million in the three months ended
September 30, 2015 to income of
$32.3 million in the three months
ended September 30, 2016. This
increase is primarily related to $361.7
million of impairments taken in the third quarter of
2015.
Adjusted EBITDA decreased $8.4
million, or 15%, from $55.4
million in the three months ended September 30, 2015 to $47.0 million in the three months ended
September 30, 2016. This
decrease was primarily the result of lower revenues from Central
Appalachian coal.
Operating cash provided by continuing operations decreased
$5.4 million, or 13%, from
$40.4 million in the three months
ended September 30, 2015 to
$35.0 million in the three months
ended September 30, 2016.
Soda Ash
Revenues and other income related to our Soda Ash segment
decreased $1.8 million, or 14%, from
$12.6 million in the three months
ended September 30, 2015 to
$10.8 million in the three months
ended September 30, 2016. This
decrease is primarily related to lower international prices
compared to the prior year, in addition to higher royalty and
G&A costs. These decreases were partially offset by higher
production compared to the prior year. For the three months ended
September 30, 2016, we received
$12.3 million in cash distributions
from Ciner Wyoming and for the three months ended September 30, 2015, we received $12.7 million in cash distributions.
VantaCore
VantaCore's construction aggregates mining business is largely
dependent on the strength of the local markets that it serves and
is seasonal. The largest component, approximately half, of
the VantaCore segment is the Laurel operation in southwestern
Pennsylvania, that serves
producers and service companies operating in the Marcellus and
Utica Shales. Low natural gas prices have led to a slowing
pace of exploration and development in those areas and impacted
Laurel's revenues. This decline has been offset both by
increased construction revenue at Laurel and reduced costs across
all of the VantaCore operations.
Revenues and other income related to our VantaCore segment
decreased $7.4 million, or 19%, from
$39.2 million in the three months
ended September 30, 2015 to
$31.8 million in the three months
ended September 30, 2016. While
VantaCore's production and revenues have declined in 2016 compared
to 2015, it's cost management efforts have enabled the business to
maintain its profitability. Tonnage sold declined 14% or 0.3
million tons quarter-over-quarter to 1.8 million tons.
Discontinued Operations
In July 2016, NRP Oil and Gas sold
its non-operated oil and gas working interest assets in the
Williston Basin and repaid the reserve-based revolving credit
facility in full. The net proceeds of $109.9
million from the sale is included in the calculation of
distributable cash flow and included in net cash provided by
investing activities of discontinued operations on the Consolidated
Statement of Cash Flows.
Corporate and Financing
Corporate and financing general and administrative expense
(including affiliates) includes corporate headquarters, financing
and centralized treasury and accounting. These costs
increased $0.9 million, or 21% from
$4.2 million in the three months
ended September 30, 2015 to
$5.1 million in the three months
ended September 30, 2016 primarily
due to increased legal and advisory fees related to the
implementation of our long-term plan to strengthen our balance
sheet, reduce debt and enhance liquidity. Interest expense,
net was essentially flat from $22.9
million in the three months ended September 30, 2015 to $22.5 million in the three months ended
September 30, 2016.
In the third quarter, NRP repaid $82.7
million of debt, with $7.7
million in amortization payments on the NRP Operating senior
notes and $75.0 million to repay the
NRP Oil and Gas revolving credit facility in full.
Subsequent Events
On October 26, 2016, the Board of
Directors of GP Natural Resource Partners LLC declared a
distribution of $0.45 per unit to be
paid on November 14, 2016 to
unitholders of record on November 7,
2016.
On November 3, NRP sold its
mineral fee interests in Grant County,
Oklahoma for $7.5 million in
gross cash proceeds.
Company Profile
Natural Resource Partners L.P., a master limited
partnership headquartered in Houston, TX, is a
diversified natural resource company that owns interests in coal,
aggregates and industrial minerals across the United
States. A large percentage of NRP's revenues are generated
from royalties and other passive income. In addition, NRP
owns an equity investment in Ciner Wyoming, a trona/soda ash
operation, and owns VantaCore, making NRP one of the top 25
aggregates producers in the United
States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or
kroberts@nrplp.com. Further information about NRP is
available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial
measure that we define as net income (loss) from continuing
operations less equity earnings from unconsolidated investment,
gain on reserve swaps and income to non-controlling interest; plus
distributions from equity earnings in unconsolidated
investment, interest expense, 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, 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 (loss), the lack of comparability of results of operations
of different companies and the different methods of calculating
Adjusted EBITDA reported by different companies. 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" is a non-GAAP
financial measure that we define as net cash provided by operating
activities of continuing operations, plus returns of unconsolidated
equity investments, proceeds from sales of assets, and returns of
long-term contract receivables—affiliate, less maintenance capital
expenditures and distributions to non-controlling interest. DCF is
not a measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing or financing activities. DCF may not be calculated the
same for us as for other companies. DCF 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 the Partnership's ability to
make cash distributions to our unitholders and our general partner
and repay debt.
"Operating expenses excluding impairments" is a
non-GAAP financial measure that we define as total operating
expenses less asset impairments. "Operating expenses excluding
impairments," as used and defined by us, may not be comparable to
similarly titled measures employed by other companies and is not a
measure of performance calculated in accordance with GAAP.
Operating expenses excluding impairments should not be considered
in isolation or as a substitute for operating income, net income or
loss, cash flows provided by operating, investing and financing
activities, or other income or cash flow statement data prepared in
accordance with GAAP. Operating expenses excluding impairments
provides no information regarding a company's capital structure,
borrowings, interest costs, capital expenditures, and working
capital movement or tax positions. Operating expenses excluding
impairments does not represent funds available for discretionary
use because those funds may be required for debt service, capital
expenditures, working capital and other commitments and
obligations. Our management team believes Operating expenses
excluding impairments is useful in evaluating our financial
performance because asset impairments are one-time non-cash charges
and excluding these from total operating expenses allows us to
better compare results period-over-period. A reconciliation of
Operating expenses excluding impairments to total operating
expenses is included in the tables attached to this
release.
"Net income excluding impairments" is a
non-GAAP financial measure that we define as net income (loss) plus
asset impairments. Net income excluding impairments, as used and
defined by us, may not be comparable to similarly titled measures
employed by other companies and is not a measure of performance
calculated in accordance with GAAP. Net income excluding
impairments should not be considered in isolation or as a
substitute for operating income (loss), net income (loss), cash
flows provided by operating, investing and financial activities, or
other income or cash flow statement data prepared in accordance
with GAAP. Our management team believes net income excluding
impairments is useful in evaluating our financial performance
because asset impairments are irregular non-cash charges and
excluding these from net income allows us to better compare results
period-over-period. A reconciliation of Net income excluding
impairments to net income is included in the tables attached to
this release.
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, but are not limited to,
commodity prices; decreases in demand for coal, trona and soda ash,
construction aggregates, crude oil and natural gas, frac sand and
other natural resources; changes in operating conditions and costs;
production cuts by our lessees; the pace of development of our oil
and natural gas properties; unanticipated geologic problems; our
liquidity, leverage and access to capital and financing sources;
changes in the legislative or regulatory environment, our ability
to consummate planned asset sales and execute on our long-term
strategic plan 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.
-Financial Tables Follow-
Natural Resource
Partners L.P.
|
Financial
Tables
|
|
Consolidated
Statements of Comprehensive Income
|
(in thousands,
except per unit data)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
Revenues and other
income:
|
|
|
|
|
|
|
|
Coal royalty and
other
|
$
|
27,504
|
|
|
$
|
40,431
|
|
|
$
|
116,336
|
|
|
$
|
112,139
|
|
Coal royalty and
other—affiliates
|
21,434
|
|
|
19,535
|
|
|
49,508
|
|
|
70,938
|
|
VantaCore
|
31,757
|
|
|
39,616
|
|
|
88,081
|
|
|
107,058
|
|
Equity in earnings of
Ciner Wyoming
|
10,753
|
|
|
12,617
|
|
|
30,742
|
|
|
36,739
|
|
Gain on asset sales,
net
|
6,426
|
|
|
1,833
|
|
|
27,280
|
|
|
6,903
|
|
Total revenues and
other income
|
97,874
|
|
|
114,032
|
|
|
311,947
|
|
|
333,777
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Operating and
maintenance expenses
|
31,242
|
|
|
37,746
|
|
|
87,824
|
|
|
106,338
|
|
Operating and
maintenance expenses—affiliates, net
|
4,062
|
|
|
1,744
|
|
|
9,948
|
|
|
8,090
|
|
Depreciation,
depletion and amortization
|
11,929
|
|
|
15,666
|
|
|
32,181
|
|
|
44,512
|
|
Amortization
expense—affiliate
|
902
|
|
|
771
|
|
|
2,328
|
|
|
2,516
|
|
General and
administrative
|
4,268
|
|
|
1,809
|
|
|
10,676
|
|
|
6,014
|
|
General and
administrative—affiliates
|
867
|
|
|
2,424
|
|
|
2,670
|
|
|
3,809
|
|
Asset
impairments
|
5,697
|
|
|
361,703
|
|
|
7,681
|
|
|
365,506
|
|
Total operating
expenses
|
58,967
|
|
|
421,863
|
|
|
153,308
|
|
|
536,785
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
38,907
|
|
|
(307,831)
|
|
|
158,639
|
|
|
(203,008)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
expense
|
(22,491)
|
|
|
(22,441)
|
|
|
(66,742)
|
|
|
(65,588)
|
|
Interest
expense—affiliate
|
—
|
|
|
(464)
|
|
|
(523)
|
|
|
(1,388)
|
|
Interest
income
|
3
|
|
|
—
|
|
|
29
|
|
|
16
|
|
Other expense,
net
|
(22,488)
|
|
|
(22,905)
|
|
|
(67,236)
|
|
|
(66,960)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
16,419
|
|
|
(330,736)
|
|
|
91,403
|
|
|
(269,968)
|
|
Income (loss) from
discontinued operations
|
7,112
|
|
|
(269,265)
|
|
|
2,001
|
|
|
(279,966)
|
|
Net income
(loss)
|
23,531
|
|
|
(600,001)
|
|
|
93,404
|
|
|
(549,934)
|
|
Less: net loss
attributable to non-controlling interest
|
—
|
|
|
1,244
|
|
|
—
|
|
|
—
|
|
Net income (loss)
attributable to NRP
|
$
|
23,531
|
|
|
$
|
(598,757)
|
|
|
$
|
93,404
|
|
|
$
|
(549,934)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to limited partners:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
16,155
|
|
|
$
|
(322,133)
|
|
|
$
|
89,771
|
|
|
$
|
(263,799)
|
|
Discontinued
operations
|
6,970
|
|
|
(263,880)
|
|
|
1,961
|
|
|
(274,367)
|
|
Total
|
23,125
|
|
|
(586,013)
|
|
|
91,732
|
|
|
(538,166)
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to the general partner:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
264
|
|
|
$
|
(7,359)
|
|
|
$
|
1,632
|
|
|
$
|
(6,169)
|
|
Discontinued
operations
|
142
|
|
|
(5,385)
|
|
|
40
|
|
|
(5,599)
|
|
Total
|
$
|
406
|
|
|
$
|
(12,744)
|
|
|
$
|
1,672
|
|
|
$
|
(11,768)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per common unit:
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
1.32
|
|
|
$
|
(26.34)
|
|
|
$
|
7.34
|
|
|
$
|
(21.57)
|
|
Discontinued
operations
|
0.57
|
|
|
(21.57)
|
|
|
0.16
|
|
|
(22.43)
|
|
Total
|
$
|
1.89
|
|
|
$
|
(47.91)
|
|
|
$
|
7.50
|
|
|
$
|
(44.00)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding
|
12,232
|
|
|
12,232
|
|
|
12,232
|
|
|
12,232
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
23,531
|
|
|
$
|
(600,001)
|
|
|
$
|
93,404
|
|
|
$
|
(549,934)
|
|
Add: comprehensive
loss from unconsolidated investment and other
|
(609)
|
|
|
(1,136)
|
|
|
(692)
|
|
|
(1,891)
|
|
Less: comprehensive
loss attributable to non-controlling interest
|
—
|
|
|
1,244
|
|
|
—
|
|
|
—
|
|
Comprehensive income
(loss) attributable to NRP
|
$
|
22,922
|
|
|
$
|
(599,893)
|
|
|
$
|
92,712
|
|
|
$
|
(551,825)
|
|
Natural Resource
Partners L.P.
|
Financial
Tables
|
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
23,531
|
|
|
$
|
(600,001)
|
|
|
$
|
93,404
|
|
|
$
|
(549,934)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities of continuing operations:
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
11,929
|
|
|
15,666
|
|
|
32,181
|
|
|
44,512
|
|
Amortization
expense—affiliates
|
902
|
|
|
771
|
|
|
2,328
|
|
|
2,516
|
|
Distributions from
equity earnings from unconsolidated investment
|
12,250
|
|
|
12,740
|
|
|
34,300
|
|
|
34,545
|
|
Equity earnings from
unconsolidated investment
|
(10,753)
|
|
|
(12,617)
|
|
|
(30,742)
|
|
|
(36,739)
|
|
Gain on asset sales,
net
|
(6,426)
|
|
|
(1,833)
|
|
|
(27,280)
|
|
|
(6,903)
|
|
(Income) loss from
discontinued operations
|
(7,112)
|
|
|
269,265
|
|
|
(2,001)
|
|
|
279,966
|
|
Asset
impairments
|
5,697
|
|
|
361,703
|
|
|
7,681
|
|
|
365,506
|
|
Gain on reserve
swap
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,290)
|
|
Other, net
|
2,600
|
|
|
2,275
|
|
|
6,694
|
|
|
(7,774)
|
|
Other,
net—affiliates
|
636
|
|
|
(1,787)
|
|
|
848
|
|
|
(2,139)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(4,263)
|
|
|
(3,117)
|
|
|
(341)
|
|
|
3,503
|
|
Accounts
receivable—affiliates
|
1,559
|
|
|
742
|
|
|
(712)
|
|
|
2,044
|
|
Accounts
payable
|
485
|
|
|
(2,849)
|
|
|
635
|
|
|
(2,163)
|
|
Accounts
payable—affiliates
|
54
|
|
|
1,604
|
|
|
29
|
|
|
1,563
|
|
Accrued
liabilities
|
10,418
|
|
|
8,422
|
|
|
7,287
|
|
|
8,485
|
|
Accrued
liabilities—affiliates
|
—
|
|
|
457
|
|
|
(456)
|
|
|
457
|
|
Deferred
revenue
|
(2,558)
|
|
|
(1,464)
|
|
|
(40,762)
|
|
|
6,035
|
|
Deferred
revenue—affiliates
|
(4,130)
|
|
|
(3,462)
|
|
|
(8,190)
|
|
|
(3,399)
|
|
Other items,
net
|
1,689
|
|
|
659
|
|
|
(356)
|
|
|
1,400
|
|
Other items,
net—affiliates
|
(607)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net cash provided by
operating activities of continuing operations
|
35,901
|
|
|
47,174
|
|
|
74,547
|
|
|
132,191
|
|
Net cash provided by
operating activities of discontinued operations
|
2,358
|
|
|
8,066
|
|
|
8,173
|
|
|
29,159
|
|
Net cash provided by
operating activities
|
38,259
|
|
|
55,240
|
|
|
82,720
|
|
|
161,350
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Proceeds from sale of
oil and gas royalty properties
|
1,617
|
|
|
—
|
|
|
35,964
|
|
|
—
|
|
Proceeds from sale of
coal and hard mineral royalty properties
|
8,412
|
|
|
1,660
|
|
|
18,214
|
|
|
3,505
|
|
Return of long-term
contract receivables—affiliate
|
397
|
|
|
984
|
|
|
2,577
|
|
|
2,121
|
|
Proceeds from sale of
plant and equipment and other
|
343
|
|
|
6,229
|
|
|
1,186
|
|
|
11,484
|
|
Acquisition of plant
and equipment and other
|
(512)
|
|
|
(3,508)
|
|
|
(4,431)
|
|
|
(8,581)
|
|
Acquisition of
mineral rights
|
—
|
|
|
—
|
|
|
—
|
|
|
(400)
|
|
Net cash provided by
investing activities of continuing operations
|
10,257
|
|
|
5,365
|
|
|
53,510
|
|
|
8,129
|
|
Net cash provided by
(used in) investing activities of discontinued
operations
|
110,635
|
|
|
(7,296)
|
|
|
106,821
|
|
|
(32,581)
|
|
Net cash provided by
(used in) investing activities
|
120,892
|
|
|
(1,931)
|
|
|
160,331
|
|
|
(24,452)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from
loans
|
—
|
|
|
75,000
|
|
|
20,000
|
|
|
100,000
|
|
Repayments of
loans
|
(7,692)
|
|
|
(82,692)
|
|
|
(106,174)
|
|
|
(141,175)
|
|
Distributions to
partners
|
(5,617)
|
|
|
(11,232)
|
|
|
(16,849)
|
|
|
(66,142)
|
|
Distributions to
non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,744)
|
|
Contributions from
(to) discontinued operations
|
40,226
|
|
|
8,000
|
|
|
40,226
|
|
|
(23,725)
|
|
Debt issue costs and
other
|
(2,074)
|
|
|
(754)
|
|
|
(14,072)
|
|
|
(5,840)
|
|
Net cash used in
financing activities of continuing operations
|
24,843
|
|
|
(11,678)
|
|
|
(76,869)
|
|
|
(139,626)
|
|
Net cash provided by
(used in) financing activities of discontinued
operations
|
(114,994)
|
|
|
(8,000)
|
|
|
(125,564)
|
|
|
13,808
|
|
Net cash used in
financing activities
|
(90,151)
|
|
|
(19,678)
|
|
|
(202,433)
|
|
|
(125,818)
|
|
Net increase in cash
and cash equivalents
|
69,000
|
|
|
33,631
|
|
|
40,618
|
|
|
11,080
|
|
Cash and cash
equivalents of continuing operations at beginning of
period
|
21,391
|
|
|
8,804
|
|
|
41,204
|
|
|
48,971
|
|
Cash and cash
equivalents of discontinued operations at beginning of
period
|
2,000
|
|
|
18,721
|
|
|
10,569
|
|
|
1,105
|
|
Cash and cash
equivalents at beginning of period
|
23,391
|
|
|
27,525
|
|
|
51,773
|
|
|
50,076
|
|
Cash and cash
equivalents at end of period
|
92,391
|
|
|
61,156
|
|
|
92,391
|
|
|
61,156
|
|
Less: cash and cash
equivalents of discontinued operations at end of period
|
—
|
|
|
11,491
|
|
|
—
|
|
|
11,491
|
|
Cash and cash
equivalents of continuing operations at end of period
|
$
|
92,391
|
|
|
$
|
49,665
|
|
|
$
|
92,391
|
|
|
$
|
49,665
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
|
Cash paid for
interest
|
$
|
12,078
|
|
|
$
|
13,022
|
|
|
$
|
54,749
|
|
|
$
|
55,761
|
|
Plant, equipment and
mineral rights funded with accounts payable or accrued
liabilities
|
—
|
|
|
13
|
|
|
—
|
|
|
4,465
|
|
Natural Resource
Partners L.P.
|
Financial
Tables
|
|
Consolidated
Balance Sheets
|
(in thousands,
except unit data)
|
|
September
30,
2016
|
|
December
31,
2015
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
92,391
|
|
|
$
|
41,204
|
|
Accounts receivable,
net
|
44,139
|
|
|
43,633
|
|
Accounts
receivable—affiliates, net
|
7,057
|
|
|
6,345
|
|
Inventory
|
7,160
|
|
|
7,835
|
|
Prepaid expenses and
other
|
3,707
|
|
|
4,268
|
|
Current assets held
for sale
|
5,520
|
|
|
—
|
|
Current assets of
discontinued operations
|
991
|
|
|
17,844
|
|
Total current
assets
|
160,965
|
|
|
121,129
|
|
Land
|
25,020
|
|
|
25,022
|
|
Plant and equipment,
net
|
52,516
|
|
|
60,675
|
|
Mineral rights,
net
|
924,181
|
|
|
984,522
|
|
Intangible assets,
net
|
3,239
|
|
|
3,930
|
|
Intangible assets,
net—affiliate
|
50,668
|
|
|
52,997
|
|
Equity in
unconsolidated investment
|
257,661
|
|
|
261,942
|
|
Long-term contracts
receivable—affiliate
|
44,224
|
|
|
47,359
|
|
Other
assets
|
1,898
|
|
|
1,173
|
|
Other
assets—affiliate
|
1,034
|
|
|
1,124
|
|
Non-current assets of
discontinued operations
|
—
|
|
|
110,162
|
|
Total
assets
|
$
|
1,521,406
|
|
|
$
|
1,670,035
|
|
LIABILITIES AND
CAPITAL
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
6,223
|
|
|
$
|
5,022
|
|
Accounts
payable—affiliates
|
829
|
|
|
801
|
|
Accrued
liabilities
|
44,816
|
|
|
44,997
|
|
Accrued
liabilities—affiliates
|
—
|
|
|
456
|
|
Current portion of
long-term debt, net
|
158,597
|
|
|
80,745
|
|
Current liabilities
of discontinued operations
|
835
|
|
|
4,388
|
|
Total current
liabilities
|
211,300
|
|
|
136,409
|
|
Deferred
revenue
|
40,050
|
|
|
80,812
|
|
Deferred
revenue—affiliates
|
74,663
|
|
|
82,853
|
|
Long-term debt,
net
|
1,041,984
|
|
|
1,186,681
|
|
Long-term debt,
net—affiliate
|
—
|
|
|
19,930
|
|
Other non-current
liabilities
|
4,404
|
|
|
5,171
|
|
Non-current
liabilities of discontinued operations
|
—
|
|
|
85,237
|
|
Commitments and
contingencies
|
|
|
|
Partners'
capital:
|
|
|
|
Common unitholders'
interest (12,232,006 units outstanding)
|
154,315
|
|
|
79,094
|
|
General partner's
interest
|
928
|
|
|
(606)
|
|
Accumulated other
comprehensive loss
|
(2,844)
|
|
|
(2,152)
|
|
Total partners'
capital
|
152,399
|
|
|
76,336
|
|
Non-controlling
interest
|
(3,394)
|
|
|
(3,394)
|
|
Total
capital
|
149,005
|
|
|
72,942
|
|
Total liabilities and
capital
|
$
|
1,521,406
|
|
|
$
|
1,670,035
|
|
Natural Resource
Partners L.P.
|
Financial
Tables
|
|
Operating
Statistics - Coal Royalty and Other
|
(in thousands
except per ton data)
|
|
|
|
|
|
For the Three
Months Ended
September
30,
|
|
For the Nine
Months Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(Unaudited)
|
Coal production
(tons)
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
Northern
(1)
|
(356)
|
|
|
1,518
|
|
|
479
|
|
|
7,581
|
|
Central
|
3,348
|
|
|
4,642
|
|
|
10,046
|
|
|
13,402
|
|
Southern
|
683
|
|
|
851
|
|
|
2,201
|
|
|
3,000
|
|
Total
Appalachia
|
3,675
|
|
|
7,011
|
|
|
12,726
|
|
|
23,983
|
|
Illinois
Basin
|
2,411
|
|
|
2,722
|
|
|
6,056
|
|
|
8,265
|
|
Northern Powder River
Basin
|
1,318
|
|
|
1,301
|
|
|
2,734
|
|
|
3,497
|
|
Gulf Coast
|
—
|
|
|
361
|
|
|
—
|
|
|
778
|
|
Total coal
production
|
7,404
|
|
|
11,395
|
|
|
21,516
|
|
|
36,523
|
|
|
|
|
|
|
|
|
|
Coal royalty revenue
per ton
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
Northern
|
N/A (1)
|
|
|
$
|
0.50
|
|
|
$
|
4.19
|
|
|
$
|
0.28
|
|
Central
|
3.28
|
|
|
3.76
|
|
|
3.22
|
|
|
3.93
|
|
Southern
|
3.83
|
|
|
4.18
|
|
|
3.37
|
|
|
4.55
|
|
Illinois
Basin
|
3.63
|
|
|
4.05
|
|
|
3.57
|
|
|
4.00
|
|
Northern Powder River
Basin
|
3.27
|
|
|
2.80
|
|
|
3.04
|
|
|
2.64
|
|
Gulf Coast
|
—
|
|
|
4.26
|
|
|
—
|
|
|
3.85
|
|
|
|
|
|
|
|
|
|
Coal royalty
revenues
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
Northern
(1)
|
$
|
370
|
|
|
$
|
763
|
|
|
$
|
2,005
|
|
|
$
|
2,105
|
|
Central
|
10,994
|
|
|
17,440
|
|
|
32,331
|
|
|
52,616
|
|
Southern
|
2,618
|
|
|
3,561
|
|
|
7,419
|
|
|
13,646
|
|
Total
Appalachia
|
13,982
|
|
|
21,764
|
|
|
41,755
|
|
|
68,367
|
|
Illinois
Basin
|
8,745
|
|
|
11,015
|
|
|
21,611
|
|
|
33,020
|
|
Northern Powder River
Basin
|
4,314
|
|
|
3,641
|
|
|
8,314
|
|
|
9,219
|
|
Gulf Coast
|
—
|
|
|
1,537
|
|
|
—
|
|
|
2,996
|
|
Total coal royalty
revenue
|
$
|
27,041
|
|
|
$
|
37,957
|
|
|
$
|
71,680
|
|
|
$
|
113,602
|
|
|
|
|
|
|
|
|
|
Other
revenues
|
|
|
|
|
|
|
|
Override
revenue
|
$
|
615
|
|
|
$
|
433
|
|
|
$
|
1,482
|
|
|
$
|
2,195
|
|
Transportation and
processing fees
|
6,127
|
|
|
5,338
|
|
|
15,663
|
|
|
16,400
|
|
Minimums recognized
as revenue
|
9,755
|
|
|
3,234
|
|
|
60,455
|
|
|
12,480
|
|
Lease assignment
fee
|
—
|
|
|
6,000
|
|
|
—
|
|
|
6,000
|
|
Gain on reserve
swap
|
—
|
|
|
—
|
|
|
—
|
|
|
9,290
|
|
Wheelage
|
919
|
|
|
401
|
|
|
1,797
|
|
|
2,117
|
|
Hard mineral royalty
revenues
|
700
|
|
|
3,118
|
|
|
2,194
|
|
|
7,552
|
|
Oil and gas royalty
revenues
|
1,283
|
|
|
969
|
|
|
2,538
|
|
|
3,476
|
|
Property tax
revenue
|
2,567
|
|
|
2,528
|
|
|
8,899
|
|
|
8,602
|
|
Other
|
(69)
|
|
|
(12)
|
|
|
1,136
|
|
|
1,363
|
|
Total other
revenues
|
$
|
21,897
|
|
|
$
|
22,009
|
|
|
$
|
94,164
|
|
|
$
|
69,475
|
|
Coal royalty and
other income
|
48,938
|
|
|
59,966
|
|
|
165,844
|
|
|
183,077
|
|
Gain on coal royalty
and other segment asset sales
|
6,425
|
|
|
2,256
|
|
|
27,270
|
|
|
6,927
|
|
Total coal royalty
and other segment revenues and other income
|
$
|
55,363
|
|
|
$
|
62,222
|
|
|
$
|
193,114
|
|
|
$
|
190,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Northern Appalachia was impacted by a prior period
adjustment of 0.5 million tons and less than $0.1 million in
royalty revenue primarily related to the Hibbs Run mine that ceased
production during 2016. Absent this adjustment, production in the
Northern Appalachia region was 0.2 million tons, average revenue
per ton was $1.97 and revenue was $0.4 million.
|
Natural Resource
Partners L.P.
|
Reconciliation of
Non-GAAP Measures
|
|
Distributable Cash
Flow
|
(in
thousands)
|
|
|
|
|
|
Coal
Royalty
and Other
|
|
|
|
|
|
Corporate
and
Financing
|
|
|
|
|
|
Soda
Ash
|
|
VantaCore
|
|
|
Total
|
|
|
(Unaudited)
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities of continuing
operations
|
|
$
|
34,997
|
|
|
$
|
12,250
|
|
|
$
|
4,357
|
|
|
$
|
(15,703)
|
|
|
$
|
35,901
|
|
Add: return on
long-term contract receivables—affiliate
|
|
397
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
397
|
|
Add: proceeds
from sale of PP&E
|
|
265
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
343
|
|
Add: proceeds
from sale of mineral rights
|
|
10,029
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,029
|
|
Add: proceeds
from sale of assets included in discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109,889
|
|
Less:
maintenance capital expenditures
|
|
(5)
|
|
|
—
|
|
|
(342)
|
|
|
—
|
|
|
(347)
|
|
DCF
|
|
$
|
45,683
|
|
|
$
|
12,250
|
|
|
$
|
4,093
|
|
|
$
|
(15,703)
|
|
|
$
|
156,212
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities of continuing
operations
|
|
$
|
40,389
|
|
|
$
|
12,762
|
|
|
$
|
5,841
|
|
|
$
|
(11,818)
|
|
|
$
|
47,174
|
|
Add: return on
long-term contract receivables—affiliate
|
|
984
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
984
|
|
Add: proceeds
from sale of PP&E
|
|
6,228
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
6,229
|
|
Add: proceeds
from sale of mineral rights
|
|
1,660
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,660
|
|
Less:
maintenance capital expenditures
|
|
(329)
|
|
|
—
|
|
|
(1,511)
|
|
|
—
|
|
|
(1,840)
|
|
DCF
|
|
$
|
48,932
|
|
|
$
|
12,762
|
|
|
$
|
4,331
|
|
|
$
|
(11,818)
|
|
|
$
|
54,207
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities of continuing
operations
|
|
$
|
91,372
|
|
|
$
|
34,300
|
|
|
$
|
16,680
|
|
|
$
|
(67,805)
|
|
|
$
|
74,547
|
|
Add: return on
long-term contract receivables—affiliate
|
|
2,577
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,577
|
|
Add: proceeds
from sale of PP&E
|
|
1,084
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
1,186
|
|
Add: proceeds
from sale of mineral rights
|
|
54,178
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,178
|
|
Add: proceeds
from sale of assets included in discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109,889
|
|
Less:
maintenance capital expenditures
|
|
(5)
|
|
|
—
|
|
|
(3,671)
|
|
|
—
|
|
|
(3,676)
|
|
DCF
|
|
$
|
149,206
|
|
|
$
|
34,300
|
|
|
$
|
13,111
|
|
|
$
|
(67,805)
|
|
|
$
|
238,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities of continuing
operations
|
|
$
|
149,841
|
|
|
$
|
30,778
|
|
|
$
|
19,783
|
|
|
$
|
(68,211)
|
|
|
$
|
132,191
|
|
Add: return on
long-term contract receivables—affiliate
|
|
2,121
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,121
|
|
Add: proceeds
from sale of PP&E
|
|
10,578
|
|
|
—
|
|
|
906
|
|
|
—
|
|
|
11,484
|
|
Add: proceeds
from sale of mineral rights
|
|
3,505
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,505
|
|
Less:
maintenance capital expenditures
|
|
(329)
|
|
|
—
|
|
|
(3,749)
|
|
|
—
|
|
|
(4,078)
|
|
Less:
distributions to non-controlling interest
|
|
(2,744)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,744)
|
|
DCF
|
|
$
|
162,972
|
|
|
$
|
30,778
|
|
|
$
|
16,940
|
|
|
$
|
(68,211)
|
|
|
$
|
142,479
|
|
Natural Resource
Partners L.P.
|
Reconciliation of
Non-GAAP Measures
|
|
Adjusted
EBITDA
|
(in
thousands)
|
|
|
|
|
|
Coal
Royalty and
Other
|
|
|
|
|
|
Corporate
and
Financing
|
|
|
|
|
|
Soda
Ash
|
|
VantaCore
|
|
|
Total
|
|
|
(Unaudited)
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations
|
|
$
|
32,250
|
|
|
$
|
10,753
|
|
|
$
|
1,039
|
|
|
$
|
(27,623)
|
|
|
$
|
16,419
|
|
Less: equity
earnings from unconsolidated investment
|
|
—
|
|
|
(10,753)
|
|
|
—
|
|
|
—
|
|
|
(10,753)
|
|
Add:
distributions from unconsolidated investment
|
|
—
|
|
|
12,250
|
|
|
—
|
|
|
—
|
|
|
12,250
|
|
Add:
depreciation, depletion and amortization
|
|
9,070
|
|
|
—
|
|
|
3,761
|
|
|
—
|
|
|
12,831
|
|
Add: asset
impairments
|
|
5,697
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,697
|
|
Add: interest
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,491
|
|
|
22,491
|
|
Adjusted
EBITDA
|
|
$
|
47,017
|
|
|
$
|
12,250
|
|
|
$
|
4,800
|
|
|
$
|
(5,132)
|
|
|
$
|
58,935
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations
|
|
$
|
(318,972)
|
|
|
$
|
12,617
|
|
|
$
|
2,757
|
|
|
$
|
(27,138)
|
|
|
$
|
(330,736)
|
|
Less: equity
earnings from unconsolidated investment
|
|
—
|
|
|
(12,617)
|
|
|
—
|
|
|
—
|
|
|
(12,617)
|
|
Add:
distributions from unconsolidated investment
|
|
—
|
|
|
12,740
|
|
|
—
|
|
|
—
|
|
|
12,740
|
|
Add:
depreciation, depletion and amortization
|
|
12,659
|
|
|
—
|
|
|
3,778
|
|
|
—
|
|
|
16,437
|
|
Add: asset
impairments
|
|
361,703
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
361,703
|
|
Add: interest
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,905
|
|
|
22,905
|
|
Adjusted
EBITDA
|
|
$
|
55,390
|
|
|
$
|
12,740
|
|
|
$
|
6,535
|
|
|
$
|
(4,233)
|
|
|
$
|
70,432
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations
|
|
$
|
137,802
|
|
|
$
|
30,742
|
|
|
$
|
3,441
|
|
|
$
|
(80,582)
|
|
|
$
|
91,403
|
|
Less: equity
earnings from unconsolidated investment
|
|
—
|
|
|
(30,742)
|
|
|
—
|
|
|
—
|
|
|
(30,742)
|
|
Add:
distributions from unconsolidated investment
|
|
—
|
|
|
34,300
|
|
|
—
|
|
|
—
|
|
|
34,300
|
|
Add:
depreciation, depletion and amortization
|
|
23,496
|
|
|
—
|
|
|
11,013
|
|
|
—
|
|
|
34,509
|
|
Add: asset
impairments
|
|
7,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,681
|
|
Add: interest
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,265
|
|
|
67,265
|
|
Adjusted
EBITDA
|
|
$
|
168,979
|
|
|
$
|
34,300
|
|
|
$
|
14,454
|
|
|
$
|
(13,317)
|
|
|
$
|
204,416
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) from continuing operations
|
|
$
|
(233,803)
|
|
|
$
|
36,739
|
|
|
$
|
3,879
|
|
|
$
|
(76,783)
|
|
|
$
|
(269,968)
|
|
Less: equity
earnings from unconsolidated investment
|
|
—
|
|
|
(36,739)
|
|
|
—
|
|
|
—
|
|
|
(36,739)
|
|
Less: gain on
reserve swap
|
|
(9,290)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,290)
|
|
Add:
distributions from unconsolidated investment
|
|
—
|
|
|
34,545
|
|
|
—
|
|
|
—
|
|
|
34,545
|
|
Add:
depreciation, depletion and amortization
|
|
34,529
|
|
|
—
|
|
|
12,499
|
|
|
—
|
|
|
47,028
|
|
Add: asset
impairments
|
|
365,506
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
365,506
|
|
Add: interest
expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,976
|
|
|
66,976
|
|
Adjusted
EBITDA
|
|
$
|
156,942
|
|
|
$
|
34,545
|
|
|
$
|
16,378
|
|
|
$
|
(9,807)
|
|
|
$
|
198,058
|
|
Natural Resource
Partners L.P.
|
Reconciliation of
Non-GAAP Measures
|
|
Operating Expenses
Excluding Impairments
|
(in
thousands)
|
|
|
|
|
|
Coal
Royalty
and Other
|
|
|
|
|
|
Corporate
and
Financing
|
|
|
|
|
|
Soda
Ash
|
|
VantaCore
|
|
|
Total
|
|
|
(Unaudited)
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
$
|
23,158
|
|
|
$
|
—
|
|
|
$
|
30,674
|
|
|
$
|
5,135
|
|
|
$
|
58,967
|
|
Less: asset
impairments
|
|
5,697
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,697
|
|
Operating expenses
excluding impairments
|
|
$
|
17,461
|
|
|
$
|
—
|
|
|
$
|
30,674
|
|
|
$
|
5,135
|
|
|
$
|
53,270
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
$
|
381,194
|
|
|
$
|
—
|
|
|
$
|
36,436
|
|
|
$
|
4,233
|
|
|
$
|
421,863
|
|
Less: asset
impairments
|
|
361,703
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
361,703
|
|
Operating expenses
excluding impairments
|
|
$
|
19,491
|
|
|
$
|
—
|
|
|
$
|
36,436
|
|
|
$
|
4,233
|
|
|
$
|
60,160
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
55,409
|
|
|
—
|
|
|
84,553
|
|
|
$
|
13,346
|
|
|
$
|
153,308
|
|
Less: asset
impairments
|
|
7,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,681
|
|
Operating expenses
excluding impairments
|
|
$
|
47,728
|
|
|
$
|
—
|
|
|
$
|
84,553
|
|
|
$
|
13,346
|
|
|
$
|
145,627
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
$
|
423,807
|
|
|
$
|
—
|
|
|
$
|
103,155
|
|
|
$
|
9,823
|
|
|
$
|
536,785
|
|
Less: asset
impairments
|
|
365,506
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
365,506
|
|
Operating expenses
excluding impairments
|
|
$
|
58,301
|
|
|
$
|
—
|
|
|
$
|
103,155
|
|
|
$
|
9,823
|
|
|
$
|
171,279
|
|
|
Non-cash
impairment charges attributable to the limited
partners
|
(in
thousands)
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Asset impairments, as
reported
|
|
5,697
|
|
|
361,703
|
|
|
7,681
|
|
|
365,506
|
|
Asset impairments
attributable to the limited partners
|
|
5,583
|
|
|
354,469
|
|
|
7,527
|
|
|
358,196
|
|
Asset impairments
attributable to the general partners
|
|
114
|
|
|
7,234
|
|
|
154
|
|
|
7,310
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets attributable to the limited partners
|
(in
thousands)
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Gain on sale of
assets, as reported
|
|
6,426
|
|
|
1,833
|
|
|
27,280
|
|
|
6,903
|
|
Gain on sale of
assets attributable to the limited partners
|
|
6,297
|
|
|
1,796
|
|
|
26,734
|
|
|
6,765
|
|
Gain on sale of
assets attributable to the general partners
|
|
129
|
|
|
37
|
|
|
546
|
|
|
138
|
|
|
|
|
|
|
|
|
|
|
Natural Resource
Partners L.P.
|
Reconciliation of
Non-GAAP Measures
|
|
Net Income from
Continuing Operations and Net Income from Continuing Operations Per
Unit Attributable to the Limited Partners Excluding Impairments and
Asset Sales
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Nine
Months Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
Net income (loss)
from continuing operations attributable to the limited partners, as
reported
|
|
$
|
16,155
|
|
|
$
|
(322,133)
|
|
|
$
|
89,771
|
|
|
$
|
(263,799)
|
|
Gain on sale of
assets attributable to the limited partners
|
|
(6,297)
|
|
|
(1,796)
|
|
|
(26,734)
|
|
|
(6,765)
|
|
Asset impairments
attributable to the limited partners
|
|
5,583
|
|
|
354,469
|
|
|
7,527
|
|
|
358,196
|
|
Net income from
continuing operations attributable to the limited partners
excluding impairments and gain on asset sales
|
|
$
|
15,441
|
|
|
$
|
30,540
|
|
|
$
|
70,564
|
|
|
$
|
87,632
|
|
Weighted average
number of common units outstanding:
|
|
12,232
|
|
|
12,232
|
|
|
12,232
|
|
|
12,232
|
|
Net income from
continuing operations per unit attributable to the limited partners
excluding impairments and gain on asset sales
|
|
$
|
1.26
|
|
|
$
|
2.50
|
|
|
$
|
5.77
|
|
|
$
|
7.16
|
|
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SOURCE Natural Resource Partners L.P.