Natural Resource Partners L.P. (NYSE:NRP) today reported
first quarter 2022 results as follows:
For the
Three Months
Ended
Last Twelve
Months
Ended
(In thousands) (Unaudited)
March 31, 2022
Operating cash flow
$
52,331
$
150,935
Free cash flow (1)
52,331
151,557
Cash flow cushion (last twelve months)
(1)
41,446
Net income
$
63,899
$
164,420
Adjusted EBITDA (1)
75,566
207,484
(1)
See "Non-GAAP Financial Measures"
and reconciliation tables at the end of this release.
"Strong demand for metallurgical coal, thermal coal, and soda
ash continues to drive robust financial performance in our business
segments,” stated Craig Nunez, NRP’s president and chief operating
officer. “NRP generated $52 million of free cash flow in the first
quarter of 2022 and $152 million over the last twelve months,
representing increases of 120% and 85% respectively over the
comparable prior periods."
Mr. Nunez, continued, "In light of the Partnership’s substantial
free cash flow generation, solid liquidity and positive outlook for
its business lines, we plan to accelerate our deleveraging and
return additional cash to common unitholders. We are pleased to
announce that the board of directors of our general partner
approved an increase in our common unit distribution from $0.45 to
$0.75 as it relates to the first quarter of 2022."
NRP's liquidity was $235.6 million at March 31, 2022, consisting
of $135.6 million of cash and $100.0 million of borrowing capacity
available under its revolving credit facility.
The cash distribution of $0.75 per common unit is to be paid on
May 24, 2022 to unitholders of record on May 17, 2022. In addition,
the board declared a $7.5 million cash distribution on the
preferred units. Future distributions on NRP's common and preferred
units will be determined on a quarterly basis by the board of
directors. The board of directors considers numerous factors each
quarter in determining cash distributions, including profitability,
cash flow, debt service obligations, market conditions and outlook,
estimated unitholder income tax liability and the level of cash
reserves that the board determines is necessary for future
operating and capital needs.
Segment Performance
Mineral Rights
Mineral Rights net income for the first quarter of 2022
increased $42.5 million as compared to the prior year period. Free
cash flow for the first quarter increased $21.7 million as compared
to the prior year period. These increases were primarily due to
stronger metallurgical coal demand and pricing in 2022.
Approximately 80% of coal royalty revenues and approximately 50% of
coal royalty sales volumes were derived from metallurgical coal in
the first quarter of 2022.
Metallurgical coal prices reached record levels during the first
quarter of 2022 driven by strong demand for steel and a relatively
subdued supply response for coking coal which has yet to reach
pre-pandemic production levels due to labor shortages and global
supply chain interruptions. Despite the negative impact on steel
production resulting from COVID-19 lockdowns in China, NRP expects
the supply-demand balance for metallurgical coal to remain tight
for the foreseeable future and should provide further support for
domestic and international prices.
Thermal coal demand and pricing remains strong due to the
increased demand for electricity and constrained growth in thermal
coal production. Labor shortages, global supply chain
interruptions, and environmental and political pressures are
limiting the ability of operators to increase thermal coal
production to meet domestic and international demand. In addition,
higher natural gas prices and boycotts on Russian coal caused by
the war in Ukraine are further amplifying the tightness in thermal
coal markets. Due to these factors, the near-term outlook for
thermal coal prices is positive.
As announced previously, in the first quarter NRP executed on
its first subsurface carbon dioxide ("CO2") sequestration
transaction by granting Denbury the right to develop a world-class
subsurface CO2 sequestration project on 75,000 acres of underground
pore space NRP owns in southwest Alabama with the potential to
store over 300 million metric tons of CO2. This project, if
developed, will be the first subsurface CO2 sequestration project
on the approximately 3.5 million acres where NRP owns the rights to
sequester CO2 underground across the United States. While the
timing and likelihood of additional cash flows being realized from
further subsurface carbon dioxide sequestration opportunities, or
other transitional energy opportunities such as the generation of
electricity using geothermal, solar and wind energy activities is
uncertain, NRP believes its large ownership footprint throughout
the United States will provide additional opportunities to create
value in this regard with minimal capital investment by NRP.
Soda Ash
Soda Ash net income in the first quarter of 2022 increased $12.8
million as compared to the prior year period primarily as a result
of increased sales prices. Free cash flow in the first quarter of
2022 increased $9.3 million as compared to the prior year period
due to Sisecam Wyoming reinstating its regular quarterly cash
distributions beginning in the fourth quarter of 2021. Strong
demand growth for soda ash, driven by global secular trends
including the investments in renewable energy, the electrification
of the global auto fleet, and urbanization, coupled with
constrained soda ash supply in part due to COVID-19 flash lockdowns
in China have allowed Sisecam Wyoming to successfully pass on input
cost inflation resulting in improved financial results in the first
quarter of 2022.
Corporate and Financing
Corporate and Financing costs in the first quarter were
relatively flat as compared to the prior year period. Free cash
flow in the first quarter of 2022 decreased $2.4 million as
compared to the prior year period primarily due to an increase in
incentive compensation paid out in the first quarter of 2022 as a
result of improved operating results in 2021, partially offset by
lower cash paid for interest as a result of less debt
outstanding.
As noted earlier, NRP declared a first quarter 2022 cash
distribution of $0.75 per common unit of NRP, an increase compared
to $0.45 paid last quarter, and a $7.5 million cash distribution on
the preferred units. The decision to increase common unit
distributions was based on the Partnership’s substantial free cash
flow generation, solid liquidity and positive outlook for its
business lines, coupled with higher expected common unitholder
income tax liability for 2022 resulting from the Partnership’s
improved financial performance.
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:
http://www.directeventreg.com/registration/event/8074715. After
registering a confirmation will be sent via email, including dial
in details and unique conference call codes for entry. Registration
is open through the live call, however, to ensure you are connected
for the full call we suggest registering at least 10 minutes prior
to the start of the call. Investors may also listen to the call via
the Investor Relations section of the NRP website at www.nrplp.com.
To access the replay, please visit the Investor Relations section
of NRP’s website.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of NRP's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States trade or business. Accordingly,
NRP's distributions to foreign investors are subject to federal
income tax withholding at the highest applicable rate.
Company Profile
Natural Resource Partners L.P., a master limited partnership
headquartered in Houston, TX, is a diversified natural resource
company that owns, manages and leases a diversified portfolio of
properties in the United States including coal, industrial minerals
and other natural resources, as well as rights to conduct carbon
sequestration and renewable energy activities. NRP also owns an
equity investment in Sisecam Wyoming LLC, one of the world’s
lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at
713-751-7515 or tsammis@nrplp.com. Further information about NRP is
available on the Partnership’s website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements are
based on certain assumptions made by the Partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Partnership. These risks include, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the Partnership’s common
and preferred units; the Partnership's business strategy; its
liquidity and access to capital and financing sources; its
financial strategy; prices of and demand for coal, trona and soda
ash, and other natural resources; estimated revenues, expenses and
results of operations; projected future performance by the
Partnership's lessees, including Foresight Energy; Sisecam Wyoming
LLC’s trona mining and soda ash refinery operations; distributions
from the soda ash joint venture; the impact of governmental
policies, laws and regulations, as well as regulatory and legal
proceedings involving the Partnership, and of scheduled or
potential regulatory or legal changes; global and U.S. economic
conditions; and other factors detailed in Natural Resource
Partners’ Securities and Exchange Commission filings. Natural
Resource Partners L.P. has no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we
define as net income (loss) less equity earnings from
unconsolidated investment; plus total distributions from
unconsolidated investment, interest expense, net, debt modification
expense, loss on extinguishment of debt, depreciation, depletion
and amortization and asset impairments. Adjusted EBITDA should not
be considered an alternative to, or more meaningful than, net
income or loss, net income or loss attributable to partners,
operating income or loss, cash flows from operating activities or
any other measure of financial performance presented in accordance
with GAAP as measures of operating performance, liquidity or
ability to service debt obligations. There are significant
limitations to using Adjusted EBITDA as a measure of performance,
including the inability to analyze the effect of certain recurring
items that materially affect our net income, the lack of
comparability of results of operations of different companies and
the different methods of calculating Adjusted EBITDA reported by
different companies. In addition, Adjusted EBITDA presented below
is not calculated or presented on the same basis as Consolidated
EBITDA as defined in our partnership agreement or Consolidated
EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a
supplemental performance measure used by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others to assess the
financial performance of our assets without regard to financing
methods, capital structure or historical cost basis.
“Distributable cash flow” or "DCF" is a non-GAAP
financial measure that we define as net cash provided by (used in)
operating activities of continuing operations plus distributions
from unconsolidated investment in excess of cumulative earnings,
proceeds from asset sales and disposals, including sales of
discontinued operations, and return of long-term contract
receivable; less maintenance capital expenditures. DCF is not a
measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing or financing activities. DCF may not be calculated the
same for us as for other companies. In addition, distributable cash
flow is not calculated or presented on the same basis as
distributable cash flow as defined in our partnership agreement,
which is used as a metric to determine whether we are able to
increase quarterly distributions to our common unitholders.
Distributable cash flow is a supplemental liquidity measure used by
our management and by external users of our financial statements,
such as investors, commercial banks, research analysts and others
to assess our ability to make cash distributions and repay
debt.
“Free cash flow” or "FCF" is a non-GAAP financial measure
that we define as net cash provided by (used in) operating
activities of continuing operations plus distributions from
unconsolidated investment in excess of cumulative earnings and
return of long-term contract receivable; less maintenance and
expansion capital expenditures and cash flow used in acquisition
costs classified as investing or financing activities. FCF is
calculated before mandatory debt repayments. Free cash flow is not
a measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing or financing activities. Free cash flow may not be
calculated the same for us as for other companies. Free cash flow
is a supplemental liquidity measure used by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others to assess our
ability to make cash distributions and repay debt.
"Cash flow cushion" is a non-GAAP financial measure that
we define as free cash flow less one-time beneficial items,
mandatory Opco debt repayments, preferred unit distributions and
redemption of PIK units, common unit distributions and warrant cash
settlements. Cash flow cushion is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. Cash flow cushion is a supplemental liquidity measure
used by our management to assess the Partnership's ability to make
or raise cash distributions to our common and preferred unitholders
and our general partner and repay debt or redeem preferred
units.
-Financial Tables and Reconciliation of
Non-GAAP Measures Follow-
Natural Resource Partners L.P. Financial
Tables (Unaudited)
Consolidated Statements of
Comprehensive Income
For the Three Months
Ended
March 31,
December 31,
(In thousands, except per unit
data)
2022
2021
2021
Revenues and other income
Royalty and other mineral rights
$
71,083
$
32,927
$
70,774
Transportation and processing services
3,796
2,192
2,507
Equity in earnings of Sisecam Wyoming
14,837
1,973
10,625
Gain on asset sales and disposals
—
59
2
Total revenues and other income
$
89,716
$
37,151
$
83,908
Operating expenses
Operating and maintenance expenses
$
8,076
$
5,552
$
7,973
Depreciation, depletion and
amortization
3,868
5,092
3,930
General and administrative expenses
4,467
4,110
5,810
Asset impairments
19
4,043
986
Total operating expenses
$
16,430
$
18,797
$
18,699
Income from operations
$
73,286
$
18,354
$
65,209
Interest expense, net
$
(9,387
)
$
(9,973
)
$
(9,568
)
Net income
$
63,899
$
8,381
$
55,641
Less: income attributable to preferred
unitholders
(7,500
)
(7,727
)
(8,079
)
Net income attributable to common
unitholders and the general partner
$
56,399
$
654
$
47,562
Net income attributable to common
unitholders
$
55,271
$
641
$
46,611
Net income attributable to the general
partner
1,128
13
951
Net income per common unit
Basic
$
4.45
$
0.05
$
3.77
Diluted
3.11
0.05
2.42
Net income
$
63,899
$
8,381
$
55,641
Comprehensive income (loss) from
unconsolidated investment and other
2,545
732
(4,580
)
Comprehensive income
$
66,444
$
9,113
51,061
Consolidated Statements of
Cash Flows
For the Three Months
Ended
March 31,
December 31,
(In thousands)
2022
2021
2021
Cash flows from operating activities
Net income
$
63,899
$
8,381
$
55,641
Adjustments to reconcile net income to net
cash provided by operating activities of continuing operations:
Depreciation, depletion and
amortization
3,868
5,092
3,930
Distributions from unconsolidated
investment
13,230
3,920
7,350
Equity earnings from unconsolidated
investment
(14,837
)
(1,973
)
(10,625
)
Gain on asset sales and disposals
—
(59
)
(2
)
Asset impairments
19
4,043
986
Bad debt expense
1,028
383
857
Unit-based compensation expense
1,448
1,126
1,202
Amortization of debt issuance costs and
other
375
269
366
Change in operating assets and
liabilities:
Accounts receivable
(7,579
)
(3,331
)
(2,083
)
Accounts payable
(60
)
(10
)
481
Accrued liabilities
(7,156
)
(3,034
)
3,859
Accrued interest
7,250
7,133
(7,472
)
Deferred revenue
(7,316
)
(146
)
2,428
Other items, net
(1,838
)
1,406
(1,757
)
Net cash provided by operating
activities
$
52,331
$
23,200
$
55,161
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
—
$
59
$
—
Return of long-term contract
receivable
—
541
541
Net cash provided by investing
activities
$
—
$
600
$
541
Cash flows from financing activities
Debt repayments
$
(16,697
)
$
(16,696
)
$
(20,335
)
Distributions to common unitholders and
the general partner
(5,672
)
(5,630
)
(5,672
)
Distributions to preferred unitholders
(7,500
)
(3,806
)
(3,980
)
Redemption of preferred units
paid-in-kind
(19,579
)
—
—
Warrant settlement
—
—
(9,183
)
Other items
(2,813
)
(691
)
(1
)
Net cash used in financing activities
$
(52,261
)
$
(26,823
)
$
(39,171
)
Net increase (decrease) in cash and cash
equivalents
$
70
$
(3,023
)
$
16,531
Cash and cash equivalents at beginning of
period
135,520
99,790
118,989
Cash and cash equivalents at end of
period
$
135,590
$
96,767
$
135,520
Supplemental cash flow information:
Cash paid for interest
$
1,644
$
2,320
$
16,549
Non-cash investing and financing
activities:
Plant, equipment, mineral rights and other
funded with accounts payable or accrued liabilities
$
—
$
992
$
—
Preferred unit distributions
paid-in-kind
—
3,806
3,980
Consolidated Balance
Sheets
March 31,
December 31,
(In thousands, except unit
data)
2022
2021
ASSETS
(Unaudited)
Current assets
Cash and cash equivalents
$
135,590
$
135,520
Accounts receivable, net
32,729
24,538
Other current assets, net
3,510
2,723
Total current assets
$
171,829
$
162,781
Land
24,008
24,008
Mineral rights, net
433,965
437,697
Intangible assets, net
16,019
16,130
Equity in unconsolidated investment
280,156
276,004
Long-term contract receivable, net
30,783
31,371
Other long-term assets, net
5,528
5,832
Total assets
$
962,288
$
953,823
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,896
$
1,956
Accrued liabilities
3,388
10,297
Accrued interest
8,463
1,213
Current portion of deferred revenue
15,420
11,817
Current portion of long-term debt, net
39,046
39,102
Total current liabilities
$
68,213
$
64,385
Deferred revenue
39,126
50,045
Long-term debt, net
378,163
394,443
Other non-current liabilities
4,803
5,018
Total liabilities
$
490,305
$
513,891
Commitments and contingencies
Class A Convertible Preferred Units
(250,000 and 269,321 units issued and outstanding at
March 31, 2022 and December 31, 2021,
respectively, at $1,000 par value per unit; liquidation
preference of $1,850 per unit at March 31,
2022 and December 31, 2021)
$
164,587
$
183,908
Partners’ capital:
Common unitholders’ interest (12,505,996
and 12,351,306 units issued and
outstanding at March 31, 2022 and December
31, 2021, respectively),
$
250,767
$
203,062
General partner’s interest
2,909
1,787
Warrant holders' interest
47,964
47,964
Accumulated other comprehensive income
5,756
3,211
Total partners’ capital
$
307,396
$
256,024
Total liabilities and partners'
capital
$
962,288
$
953,823
Consolidated Statements of
Partners' Capital
Common Unitholders
General
Partner
Warrant
Holders
Accumulated
Other
Comprehensive
Income
Total
Partners'
Capital
(In thousands)
Units
Amounts
Balance at December 31, 2021
12,351
$
203,062
$
1,787
$
47,964
$
3,211
$
256,024
Net income (1)
—
62,621
1,278
—
—
63,899
Distributions to common unitholders and
the general partner
—
(5,559
)
(113
)
—
—
(5,672
)
Distributions to preferred unitholders
—
(7,603
)
(155
)
—
—
(7,758
)
Issuance of unit-based awards
155
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
(1,754
)
—
—
—
(1,754
)
Capital contribution
—
—
112
—
—
112
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,545
2,545
Balance at March 31, 2022
12,506
$
250,767
$
2,909
$
47,964
$
5,756
$
307,396
(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.
Common Unitholders
General
Partner
Warrant
Holders
Accumulated
Other
Comprehensive
Income
Total
Partners'
Capital
(In thousands)
Units
Amounts
Balance at December 31, 2020
12,261
$
136,927
$
459
$
66,816
$
322
$
204,524
Net income (1)
—
8,213
168
—
—
8,381
Distributions to common unitholders and
the general partner
—
(5,517
)
(113
)
—
—
(5,630
)
Distributions to preferred unitholders
—
(7,461
)
(152
)
—
—
(7,613
)
Issuance of unit-based awards
90
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
215
—
—
—
215
Capital contribution
—
—
32
—
—
32
Comprehensive income from unconsolidated
investment and other
—
—
—
—
732
732
Balance at March 31, 2021
12,351
$
132,377
$
394
$
66,816
$
1,054
$
200,641
(1)
Net income includes $7.7 million
of income attributable to preferred unitholders that accumulated
during the period, of which $7.6 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
The following table presents NRP's unaudited business results by
segment for the three months ended March 31, 2022 and 2021 and
December 31, 2021:
Operating Segments
Mineral Rights
Corporate
and Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended March 31,
2022
Revenues
$
74,879
$
14,837
$
—
$
89,716
Gain on asset sales and disposals
—
—
—
—
Total revenues and other income
$
74,879
$
14,837
$
—
$
89,716
Asset impairments
$
19
$
—
$
—
$
19
Net income (loss)
$
62,967
$
14,786
$
(13,854
)
$
63,899
Adjusted EBITDA (1)
$
66,854
$
13,179
$
(4,467
)
$
75,566
Cash flow provided by (used in) continuing
operations:
Operating activities
$
48,176
$
13,195
$
(9,040
)
$
52,331
Investing activities
$
—
$
—
$
—
$
—
Financing activities
$
(614
)
$
—
$
(51,647
)
$
(52,261
)
Distributable cash flow (1)
$
48,176
$
13,195
$
(9,040
)
$
52,331
Free cash flow (1)
$
48,176
$
13,195
$
(9,040
)
$
52,331
For the Three Months Ended March 31,
2021
Revenues
$
35,119
$
1,973
$
—
$
37,092
Gain on asset sales and disposals
59
—
—
59
Total revenues and other income
$
35,178
$
1,973
$
—
$
37,151
Asset impairments
$
4,043
$
—
$
—
$
4,043
Net income (loss)
$
20,488
$
1,953
$
(14,060
)
$
8,381
Adjusted EBITDA (1)
$
29,646
$
3,900
$
(4,110
)
$
29,436
Cash flow provided by (used in) continuing
operations:
Operating activities
$
25,962
$
3,888
$
(6,650
)
$
23,200
Investing activities
$
600
$
—
$
—
$
600
Financing activities
$
(132
)
$
—
$
(26,691
)
$
(26,823
)
Distributable cash flow (1)
$
26,562
$
3,888
$
(6,650
)
$
90,248
Free cash flow (1)
$
26,503
$
3,888
$
(6,650
)
$
23,741
For the Three Months Ended December 31,
2021
Revenues
$
73,281
$
10,625
$
—
$
83,906
Gain on asset sales and disposals
2
—
—
2
Total revenues and other income
$
73,283
$
10,625
$
—
$
83,908
Asset impairments
$
986
$
—
$
—
$
986
Net income (loss)
$
60,432
$
10,587
$
(15,378
)
$
55,641
Adjusted EBITDA (1)
$
65,348
$
7,312
$
(5,810
)
$
66,850
Cash flow provided by (used in) continuing
operations:
Operating activities
$
67,887
$
7,289
$
(20,015
)
$
55,161
Investing activities
$
541
$
—
$
—
$
541
Financing activities
$
—
$
—
$
(39,171
)
$
(39,171
)
Distributable cash flow (1)
$
68,428
$
7,289
$
(20,015
)
$
55,702
Free cash flow (1)
$
68,428
$
7,289
$
(20,015
)
$
55,702
(1)
See "Non-GAAP Financial Measures"
and reconciliation tables at the end of this release.
Operating Statistics - Mineral
Rights
For the Three Months
Ended
March 31,
December 31,
(In thousands, except per ton
data)
2022
2021
2021
Coal sales volumes (tons)
Appalachia
Northern
428
120
388
Central
3,251
2,650
3,455
Southern
361
100
513
Total Appalachia
4,040
2,870
4,356
Illinois Basin
1,502
2,658
1,401
Northern Powder River Basin
1,238
1,059
860
Gulf Coast
69
—
42
Total coal sales volumes
6,849
6,587
6,659
Coal royalty revenue per ton
Appalachia
Northern
$
10.14
$
3.64
$
8.81
Central
11.37
4.22
7.77
Southern
17.56
5.28
7.73
Illinois Basin
2.20
2.06
2.05
Northern Powder River Basin
3.74
3.37
3.41
Gulf Coast
0.55
—
0.62
Combined average coal royalty revenue per
ton
8.12
3.22
6.01
Coal royalty revenues
Appalachia
Northern
$
4,341
$
437
$
3,419
Central
36,980
11,195
26,841
Southern
6,340
528
3,965
Total Appalachia
47,661
12,160
34,225
Illinois Basin
3,303
5,483
2,873
Northern Powder River Basin
4,632
3,573
2,929
Gulf Coast
38
—
26
Unadjusted coal royalty revenues
55,634
21,216
$
40,053
Coal royalty adjustment for minimum
leases
(185
)
(5,851
)
(2,059
)
Total coal royalty revenues
$
55,449
$
15,365
$
37,994
Other revenues
Production lease minimum revenues
$
1,592
$
3,450
$
4,028
Minimum lease straight-line revenues
4,783
6,096
4,791
Forest CO2 sequestration revenues
—
—
13,790
Wheelage revenues
3,717
1,781
4,476
Property tax revenues
1,472
1,469
1,506
Coal overriding royalty revenues
258
1,859
775
Lease amendment revenues
880
868
1,537
Aggregates royalty revenues
770
454
550
Oil and gas royalty revenues
1,814
1,366
1,086
Other revenues
348
219
241
Total other revenues
$
15,634
$
17,562
$
32,780
Royalty and other mineral rights
$
71,083
$
32,927
$
70,774
Transportation and processing services
revenues
3,796
2,192
2,507
Gain on asset sales and disposals
—
59
2
Total Mineral Rights segment revenues and
other income
$
74,879
$
35,178
$
73,283
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
Adjusted EBITDA
Mineral Rights
Corporate
and Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended March 31,
2022
Net income (loss)
$
62,967
$
14,786
$
(13,854
)
$
63,899
Less: equity earnings from unconsolidated
investment
—
(14,837
)
—
(14,837
)
Add: total distributions from
unconsolidated investment
—
13,230
—
13,230
Add: interest expense, net
—
—
9,387
9,387
Add: depreciation, depletion and
amortization
3,868
—
—
3,868
Add: asset impairments
19
—
—
19
Adjusted EBITDA
$
66,854
$
13,179
$
(4,467
)
$
75,566
For the Three Months Ended March 31,
2021
Net income (loss)
$
20,488
$
1,953
$
(14,060
)
$
8,381
Less: equity earnings from unconsolidated
investment
—
(1,973
)
—
(1,973
)
Add: total distributions from
unconsolidated investment
—
3,920
—
3,920
Add: interest expense, net
23
—
9,950
9,973
Add: depreciation, depletion and
amortization
5,092
—
—
5,092
Add: asset impairments
4,043
—
—
4,043
Adjusted EBITDA
$
29,646
$
3,900
$
(4,110
)
$
29,436
For the Three Months Ended December 31,
2021
Net income (loss)
$
60,432
$
10,587
$
(15,378
)
$
55,641
Less: equity earnings from unconsolidated
investment
—
(10,625
)
—
(10,625
)
Add: total distributions from
unconsolidated investment
—
7,350
—
7,350
Add: interest expense, net
—
—
9,568
9,568
Add: depreciation, depletion and
amortization
3,930
—
—
3,930
Add: asset impairments
986
—
—
986
Adjusted EBITDA
$
65,348
$
7,312
$
(5,810
)
$
66,850
Distributable Cash Flow and
Free Cash Flow
Mineral Rights
Corporate
and Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended March 31,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
48,176
$
13,195
$
(9,040
)
$
52,331
Add: proceeds from asset sales and
disposals
—
—
—
—
Add: return of long-term contract
receivable
—
—
—
—
Distributable cash flow
$
48,176
$
13,195
$
(9,040
)
$
52,331
Less: proceeds from asset sales and
disposals
—
—
—
—
Free cash flow
$
48,176
$
13,195
$
(9,040
)
$
52,331
Net cash provided by investing
activities
$
—
$
—
$
—
$
—
Net cash used in financing activities
(614
)
—
(51,647
)
(52,261
)
For the Three Months Ended March 31,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
25,962
$
3,888
(6,650
)
$
23,200
Add: proceeds from asset sales and
disposals
59
—
—
59
Add: return of long-term contract
receivable
541
—
—
541
Distributable cash flow
$
26,562
$
3,888
$
(6,650
)
$
23,800
Less: proceeds from asset sales and
disposals
(59
)
—
—
(59
)
Free cash flow
$
26,503
$
3,888
$
(6,650
)
$
23,741
Net cash provided by investing
activities
$
600
$
—
$
—
$
600
Net cash used in financing activities
(132
)
—
(26,691
)
(26,823
)
For the Three Months Ended December 31,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
67,887
$
7,289
$
(20,015
)
$
55,161
Add: proceeds from asset sales and
disposals
—
—
—
—
Add: return of long-term contract
receivable
541
—
—
541
Distributable cash flow
$
68,428
$
7,289
$
(20,015
)
$
55,702
Less: proceeds from asset sales and
disposals
—
—
—
—
Free cash flow
$
68,428
$
7,289
$
(20,015
)
$
55,702
Net cash provided by investing
activities
$
541
$
—
$
—
$
541
Net cash used in financing activities
$
—
$
—
$
(39,171
)
$
(39,171
)
Cash Flow Cushion
For the Three Months
Ended
(In thousands)
June 30,
2021
September 30,
2021
December 31,
2021
March 31,
2022
Last 12
Months
Net cash provided by operating activities
of continuing operations
$
13,384
$
30,059
$
55,161
$
52,331
$
150,935
Add: proceeds from asset sales and
disposals
116
74
—
—
190
Add: return of long-term contract
receivable
541
540
541
—
1,622
Distributable cash flow
$
14,041
$
30,673
$
55,702
$
52,331
$
152,747
Less: proceeds from asset sales and
disposals
(116
)
(74
)
—
—
(190
)
Less: acquisition costs
(1,000
)
—
—
—
(1,000
)
Free cash flow
$
12,925
$
30,599
$
55,702
$
52,331
$
151,557
Less: mandatory Opco debt repayments
(2,365
)
—
(20,335
)
(16,697
)
(39,397
)
Less: preferred unit distributions and
redemption of PIK units
(3,864
)
(3,921
)
(3,980
)
(27,079
)
(38,844
)
Less: common unit distributions
(5,672
)
(5,671
)
(5,672
)
(5,672
)
(22,687
)
Less: warrant cash settlement
—
—
(9,183
)
—
(9,183
)
Cash flow cushion
$
1,024
$
21,007
$
16,532
$
2,883
$
41,446
March 31, 2021 LTM Free Cash
Flow
For the Three Months
Ended
(In thousands)
June 30,
2020
September 30,
2020
December 31,
2020
March 31,
2021
Last 12
Months
Net cash provided by operating activities
of continuing operations
$
19,935
$
24,323
$
13,155
$
23,200
$
80,613
Add: proceeds from asset sales and
disposals
507
—
116
59
682
Add: proceeds from sale of discontinued
operations
—
—
1
—
1
Add: return of long-term contract
receivable
858
332
660
541
2,391
Distributable cash flow
$
21,300
$
24,655
$
13,932
$
23,800
$
83,687
Less: proceeds from asset sales and
disposals
(507
)
—
(116
)
(59
)
(682
)
Less: proceeds from sale of discontinued
operations
—
—
(1
)
—
(1
)
Less: acquisition costs
(1,000
)
—
—
—
(1,000
)
Free cash flow
$
19,793
$
24,655
$
13,815
$
23,741
$
82,004
Leverage Ratio
For the Three Months
Ended
(In
thousands)
June 30,
2021
September 30,
2021
December 31,
2021
March 31,
2022
Last Twelve
Months
Net income
$
15,382
$
29,498
$
55,641
$
63,899
$
164,420
Less: equity earnings from unconsolidated
investment
(2,601
)
(6,672
)
(10,625
)
(14,837
)
(34,735
)
Add: total distributions from
unconsolidated investment
—
—
7,350
13,230
20,580
Add: interest expense, net
9,683
9,652
9,568
9,387
38,290
Add: depreciation, depletion and
amortization
4,871
5,182
3,930
3,868
17,851
Add: asset impairments
16
57
986
19
1,078
Adjusted EBITDA
$
27,351
$
37,717
$
66,850
$
75,566
$
207,484
Debt—at March 31, 2022
$
421,787
Leverage Ratio (1)
2.0 x
(1)
Leverage Ratio is calculated as
the outstanding principal of NRP's debt as of March 31, 2022
divided by the last twelve months' Adjusted EBITDA. Note that
Adjusted EBITDA under the indenture governing NRP's 2025 parent
company notes may be different than the amount shown above.
However, NRP's last twelve months Leverage ratio as of March 31,
2022, was 2.0x as calculated under the indenture governing NRP's
2025 parent company notes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005136/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
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