Natural Resource Partners L.P. (NYSE:NRP) today reported
second quarter 2022 results as follows:
For the Three Months
Ended
Last Twelve Months
Ended
(In thousands)
(Unaudited)
June 30, 2022
Operating cash flow
$
63,123
$
200,674
Free cash flow (1)
63,686
202,318
Cash flow cushion (last twelve months)
(1)
84,673
Net income
$
66,820
$
215,858
Adjusted EBITDA (1)
80,709
260,842
_________________________ (1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Highlights:
- $64 million Free Cash Flow in the second quarter of
2022
- Record Free Cash Flow for the first half of the year of $116
million
- Paid down $120.5 million of debt in the second quarter of
2022
- 1.2x Leverage Ratio at June 30, 2022, down from 4.6x at June
30, 2021
“The second quarter was another quarter of exceptional results
for NRP with the generation of $64 million of free cash flow,” said
Craig Nunez, NRP’s president and chief operating officer. “When
combined with the $52 million of free cash flow generated in the
first quarter, the first half of 2022 was the best annual start in
the history of the Partnership. We took advantage of the strong
financial results and positive outlook to retire $118 million of
debt, driving our leverage ratio down to 1.2x at the end of the
second quarter, which was a dramatic improvement from 4.6x just
twelve months earlier. We believe current market conditions will
allow us to continue de-risking the capital structure while
continuing to provide distributions to our common unitholders.”
NRP announced today that the Board of Directors of its general
partner declared a cash distribution of $0.75 per common unit to be
paid on August 23, 2022 to unitholders of record on August 16,
2022. This is a 67% increase as compared to the distribution paid
for the prior year quarter and is consistent with the previous
quarter. In addition, the board declared a $7.5 million cash
distribution on the preferred units. Future distributions on NRP's
common and preferred units will be determined on a quarterly basis
by the Board of Directors. The Board of Directors considers
numerous factors each quarter in determining cash distributions,
including profitability, cash flow, debt service obligations,
market conditions and outlook, estimated unitholder income tax
liability and the level of cash reserves that the board determines
is necessary for future operating and capital needs.
NRP's liquidity was $159.4 million at June 30, 2022, consisting
of $59.4 million of cash and $100.0 million of borrowing capacity
available under its revolving credit facility.
Segment Performance
Mineral Rights
Mineral Rights net income for the second quarter of 2022
increased $43.5 million as compared to the prior year period. Free
cash flow for the second quarter increased $39.3 million as
compared to the prior year period. These increases were primarily
due to stronger metallurgical coal demand and pricing in 2022.
Approximately 75% of coal royalty revenues and approximately 45% of
coal royalty sales volumes were derived from metallurgical coal in
the second quarter of 2022.
Metallurgical coal prices have declined from their record highs
during the first quarter of 2022 but remain supported by the
ongoing tightness in the supply-demand balance for metallurgical
coal. Metallurgical coal production continues to face ongoing labor
shortages and global supply chain interruptions which limits the
ability of operators to increase metallurgical coal production and
should provide continued support for domestic and international
prices in the near term despite slowing global economic growth and
softening demand for steel.
Thermal coal demand and pricing remains strong due to increased
demand for electricity, high natural gas prices and constrained
growth in thermal coal production. Boycotts on Russian coal caused
by the war in Ukraine are amplifying the tightness in thermal coal
markets caused by labor shortages, global supply chain
interruptions, and environmental and political pressures limiting
the ability of operators to increase thermal coal production to
meet domestic and international demand. NRP continues to believe
the near-term outlook for thermal coal prices is positive.
NRP continues to identify alternative revenue opportunities
across its large portfolio of land and mineral assets specifically
within the transitional energy economy. NRP owns the rights to
sequester carbon dioxide ("CO2") on approximately 3.5 million
mineral acres of pore space in the southern United States. As
announced previously, in the first quarter of 2022 NRP executed on
its first subsurface CO2 sequestration transaction by granting
Denbury the right to develop a world-class subsurface CO2
sequestration project on 75,000 acres of underground pore space NRP
owns in southwest Alabama with the potential to store over 300
million metric tons of CO2. While the timing and likelihood of
additional cash flows being realized from further activities is
uncertain, NRP believes its large ownership footprint throughout
the United States will provide additional opportunities to create
value in this regard and position NRP to benefit from the
transitional energy economy with minimal capital investment.
Soda Ash
Soda Ash net income in the second quarter of 2022 increased
$12.1 million as compared to the prior year period primarily as a
result of increased international sales prices. Free cash flow in
the second quarter of 2022 increased $10.5 million as compared to
the prior year period due to Sisecam Wyoming reinstating its
regular quarterly cash distributions beginning in the fourth
quarter of 2021.
Strong demand growth for soda ash, driven by global secular
trends including investments in renewable energy, the
electrification of the global auto fleet and urbanization, coupled
with constrained soda ash supply due in part to COVID-19 flash
lockdowns in China and a partial closure of a Green River
competitor due to a force majeure event allowed Sisecam Wyoming to
deliver improved financial results in the second quarter of
2022.
Corporate and Financing
Corporate and Financing costs in the second quarter increased
$4.1 million as compared to the prior year period primarily due to
the loss on extinguishment of debt associated with the early
retirement of debt, partially offset by lower interest expense as a
result of less debt outstanding. Free cash flow in the second
quarter of 2022 increased $1.0 million as compared to the prior
year period primarily due to lower cash paid for interest as a
result of less debt outstanding.
During the second quarter of 2022, NRP retired $118.1 million of
its 9.125% Senior Notes due 2025, which will save approximately
$10.8 million annually in interest costs. These notes were
purchased on the open market at a weighted average price of
102.275%, a discount to the current redemption price of 104.563%.
In July, NRP was able to retire an additional $38.8 million of its
2025 Senior Notes, which will save an additional $3.5 million
annually in interest costs. The current outstanding amount of
9.125% Senior Notes due 2025 is $143.1 million.
In addition, in May of 2022 NRP paid a first quarter 2022 cash
distribution of $0.75 per common unit of NRP and a $7.5 million
cash distribution on the preferred units.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To
register for the conference call, please use this link:
https://conferencingportals.com/event/kfJdSHYP. After registering a
confirmation will be sent via email, including dial in details and
unique conference call codes for entry. Registration is open
through the live call, however, to ensure you are connected for the
full call we suggest registering at least 10 minutes prior to the
start of the call. Investors may also listen to the call via the
Investor Relations section of the NRP website at www.nrplp.com. To
access the replay, please visit the Investor Relations section of
NRP’s website.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of NRP's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States trade or business. Accordingly,
NRP's distributions to foreign investors are subject to federal
income tax withholding at the highest applicable rate.
Company Profile
Natural Resource Partners L.P., a master limited partnership
headquartered in Houston, TX, is a diversified natural resource
company that owns, manages and leases a diversified portfolio of
properties in the United States including coal, industrial minerals
and other natural resources, as well as rights to conduct carbon
sequestration and renewable energy activities. NRP also owns an
equity investment in Sisecam Wyoming LLC, one of the world’s
lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at
713-751-7515 or tsammis@nrplp.com. Further information about NRP is
available on the Partnership’s website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements are
based on certain assumptions made by the Partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Partnership. These risks include, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the Partnership’s common
and preferred units; the Partnership's business strategy; its
liquidity and access to capital and financing sources; its
financial strategy; prices of and demand for coal, trona and soda
ash, and other natural resources; estimated revenues, expenses and
results of operations; projected future performance by the
Partnership's lessees, including Foresight Energy; Sisecam Wyoming
LLC’s trona mining and soda ash refinery operations; distributions
from the soda ash joint venture; the impact of governmental
policies, laws and regulations, as well as regulatory and legal
proceedings involving the Partnership, and of scheduled or
potential regulatory or legal changes; global and U.S. economic
conditions; and other factors detailed in Natural Resource
Partners’ Securities and Exchange Commission filings. Natural
Resource Partners L.P. has no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Non-GAAP Financial Measures
“Adjusted EBITDA” is a non-GAAP financial measure that we
define as net income (loss) less equity earnings from
unconsolidated investment; plus total distributions from
unconsolidated investment, interest expense, net, debt modification
expense, loss on extinguishment of debt, depreciation, depletion
and amortization and asset impairments. Adjusted EBITDA should not
be considered an alternative to, or more meaningful than, net
income or loss, net income or loss attributable to partners,
operating income or loss, cash flows from operating activities or
any other measure of financial performance presented in accordance
with GAAP as measures of operating performance, liquidity or
ability to service debt obligations. There are significant
limitations to using Adjusted EBITDA as a measure of performance,
including the inability to analyze the effect of certain recurring
items that materially affect our net income, the lack of
comparability of results of operations of different companies and
the different methods of calculating Adjusted EBITDA reported by
different companies. In addition, Adjusted EBITDA presented below
is not calculated or presented on the same basis as Consolidated
EBITDA as defined in our partnership agreement or Consolidated
EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a
supplemental performance measure used by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others to assess the
financial performance of our assets without regard to financing
methods, capital structure or historical cost basis.
“Distributable cash flow” or “DCF” is a non-GAAP
financial measure that we define as net cash provided by (used in)
operating activities of continuing operations plus distributions
from unconsolidated investment in excess of cumulative earnings,
proceeds from asset sales and disposals, including sales of
discontinued operations, and return of long-term contract
receivable; less maintenance capital expenditures. DCF is not a
measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing or financing activities. DCF may not be calculated the
same for us as for other companies. In addition, distributable cash
flow is not calculated or presented on the same basis as
distributable cash flow as defined in our partnership agreement,
which is used as a metric to determine whether we are able to
increase quarterly distributions to our common unitholders.
Distributable cash flow is a supplemental liquidity measure used by
our management and by external users of our financial statements,
such as investors, commercial banks, research analysts and others
to assess our ability to make cash distributions and repay
debt.
“Free cash flow” or “FCF” is a non-GAAP financial measure
that we define as net cash provided by (used in) operating
activities of continuing operations plus distributions from
unconsolidated investment in excess of cumulative earnings and
return of long-term contract receivable; less maintenance and
expansion capital expenditures and cash flow used in acquisition
costs classified as investing or financing activities. FCF is
calculated before mandatory debt repayments. Free cash flow is not
a measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing or financing activities. Free cash flow may not be
calculated the same for us as for other companies. Free cash flow
is a supplemental liquidity measure used by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others to assess our
ability to make cash distributions and repay debt.
“Cash flow cushion” is a non-GAAP financial measure that
we define as free cash flow less one-time beneficial items,
mandatory Opco debt repayments, preferred unit distributions and
redemption of PIK units, common unit distributions and warrant cash
settlements. Cash flow cushion is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. Cash flow cushion is a supplemental liquidity measure
used by our management to assess the Partnership's ability to make
or raise cash distributions to our common and preferred unitholders
and our general partner and repay debt or redeem preferred
units.
-Financial Tables and Reconciliation of
Non-GAAP Measures Follow-
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Comprehensive Income
For the Three Months
Ended
For the Six Months
Ended
June 30,
March 31,
June 30,
(In thousands, except per unit
data)
2022
2021
2022
2022
2021
Revenues and other income
Royalty and other mineral rights
$
79,333
$
33,611
$
71,083
$
150,416
$
66,538
Transportation and processing services
5,612
2,182
3,796
9,408
4,374
Equity in earnings of Sisecam Wyoming
14,643
2,601
14,837
29,480
4,574
Gain on asset sales and disposals
345
116
—
345
175
Total revenues and other income
$
99,933
$
38,510
$
89,716
$
189,649
$
75,661
Operating expenses
Operating and maintenance expenses
$
10,015
$
5,170
$
8,076
$
18,091
$
10,722
Depreciation, depletion and
amortization
5,847
4,871
3,868
9,715
9,963
General and administrative expenses
5,052
3,388
4,467
9,519
7,498
Asset impairments
43
16
19
62
4,059
Total operating expenses
$
20,957
$
13,445
$
16,430
$
37,387
$
32,242
Income from operations
$
78,976
$
25,065
$
73,286
$
152,262
$
43,419
Other expenses, net
Interest expense, net
$
(8,108
)
$
(9,683
)
$
(9,387
)
$
(17,495
)
$
(19,656
)
Loss on extinguishment of debt
(4,048
)
—
—
(4,048
)
—
Total other expenses, net
$
(12,156
)
$
(9,683
)
$
(9,387
)
$
(21,543
)
$
(19,656
)
Net income
$
66,820
$
15,382
$
63,899
$
130,719
$
23,763
Less: income attributable to preferred
unitholders
(7,500
)
(7,842
)
(7,500
)
(15,000
)
(15,569
)
Net income attributable to common
unitholders and the general partner
$
59,320
$
7,540
$
56,399
$
115,719
$
8,194
Net income attributable to common
unitholders
$
58,134
$
7,389
$
55,271
$
113,405
$
8,030
Net income attributable to the general
partner
1,186
151
1,128
2,314
164
Net income per common unit
Basic
$
4.65
$
0.60
$
4.45
$
9.10
$
0.65
Diluted
3.29
0.56
3.11
6.50
0.65
Net income
$
66,820
$
15,382
$
63,899
$
130,719
$
23,763
Comprehensive income (loss) from
unconsolidated investment and other
(4,013
)
2,533
2,545
(1,468
)
3,265
Comprehensive income
$
62,807
$
17,915
$
66,444
$
129,251
$
27,028
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Cash Flows
For the Three Months
Ended
For the Six Months
Ended
June 30,
March 31,
June 30,
(In thousands)
2022
2021
2022
2022
2021
Cash flows from operating activities
Net income
$
66,820
$
15,382
$
63,899
$
130,719
$
23,763
Adjustments to reconcile net income to net
cash provided by operating activities of continuing operations:
Depreciation, depletion and
amortization
5,847
4,871
3,868
9,715
9,963
Distributions from unconsolidated
investment
10,486
—
13,230
23,716
3,920
Equity earnings from unconsolidated
investment
(14,643
)
(2,601
)
(14,837
)
(29,480
)
(4,574
)
Gain on asset sales and disposals
(345
)
(116
)
—
(345
)
(175
)
Loss on extinguishment of debt
4,048
—
—
4,048
—
Asset impairments
43
16
19
62
4,059
Bad debt expense
(388
)
(737
)
1,028
640
(354
)
Unit-based compensation expense
1,339
593
1,448
2,787
1,719
Amortization of debt issuance costs and
other
1,297
977
375
1,672
1,246
Change in operating assets and
liabilities:
Accounts receivable
(5,033
)
162
(7,579
)
(12,612
)
(3,169
)
Accounts payable
73
(83
)
(60
)
13
(93
)
Accrued liabilities
2,047
1,838
(7,156
)
(5,109
)
(1,196
)
Accrued interest
(7,413
)
(7,424
)
7,250
(163
)
(291
)
Deferred revenue
(2,259
)
677
(7,316
)
(9,575
)
531
Other items, net
1,204
(171
)
(1,838
)
(634
)
1,235
Net cash provided by operating
activities
$
63,123
$
13,384
$
52,331
$
115,454
$
36,584
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
346
$
116
$
—
$
346
$
175
Return of long-term contract
receivable
563
541
—
563
1,082
Net cash provided by investing
activities
$
909
$
657
$
—
$
909
$
1,257
Cash flows from financing activities
Debt repayments
$
(120,474
)
$
(2,365
)
$
(16,697
)
$
(137,171
)
$
(19,061
)
Distributions to common unitholders and
the general partner
(9,570
)
(5,672
)
(5,672
)
(15,242
)
(11,302
)
Distributions to preferred unitholders
(7,500
)
(3,864
)
(7,500
)
(15,000
)
(7,670
)
Redemption of preferred units
paid-in-kind
—
—
(19,579
)
(19,579
)
—
Acquisition of non-controlling interest in
BRP
—
(1,000
)
—
—
(1,000
)
Other items, net
(2,722
)
1
(2,813
)
(5,535
)
(690
)
Net cash used in financing activities
$
(140,266
)
$
(12,900
)
$
(52,261
)
$
(192,527
)
$
(39,723
)
Net increase (decrease) in cash and cash
equivalents
$
(76,234
)
$
1,141
$
70
$
(76,164
)
$
(1,882
)
Cash and cash equivalents at beginning of
period
135,590
96,767
135,520
135,520
99,790
Cash and cash equivalents at end of
period
$
59,356
$
97,908
$
135,590
$
59,356
$
97,908
Supplemental cash flow information:
Cash paid for interest
$
15,128
$
16,611
$
1,644
$
16,772
$
18,931
Non-cash investing and financing
activities:
Preferred unit distributions
paid-in-kind
$
—
$
3,863
$
—
$
—
$
7,669
Natural Resource Partners
L.P.
Financial Tables
Consolidated Balance
Sheets
June 30,
December 31,
(In thousands, except unit
data)
2022
2021
ASSETS
(Unaudited)
Current assets
Cash and cash equivalents
$
59,356
$
135,520
Accounts receivable, net
37,288
24,538
Other current assets, net
3,204
2,723
Total current assets
$
99,848
$
162,781
Land
24,008
24,008
Mineral rights, net
428,505
437,697
Intangible assets, net
15,634
16,130
Equity in unconsolidated investment
280,300
276,004
Long-term contract receivable, net
30,182
31,371
Other long-term assets, net
4,664
5,832
Total assets
$
883,141
$
953,823
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,969
$
1,956
Accrued liabilities
5,507
10,297
Accrued interest
1,050
1,213
Current portion of deferred revenue
11,475
11,817
Current portion of long-term debt, net
39,070
39,102
Total current liabilities
$
59,071
$
64,385
Deferred revenue
40,811
50,045
Long-term debt, net
259,296
394,443
Other non-current liabilities
5,012
5,018
Total liabilities
$
364,190
$
513,891
Commitments and contingencies
Class A Convertible Preferred Units
(250,000 and 269,321 units issued and outstanding at June 30, 2022
and December 31, 2021, respectively, at $1,000 par value per unit;
liquidation preference of $1,850 per unit at June 30, 2022 and
December 31, 2021)
$
164,587
$
183,908
Partners’ capital:
Common unitholders’ interest (12,505,996
and 12,351,306 units issued and outstanding at June 30, 2022 and
December 31, 2021, respectively),
$
300,753
$
203,062
General partner’s interest
3,904
1,787
Warrant holders' interest
47,964
47,964
Accumulated other comprehensive income
1,743
3,211
Total partners’ capital
$
354,364
$
256,024
Total liabilities and partners'
capital
$
883,141
$
953,823
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Common Unitholders
General Partner
Warrant Holders
Accumulated Other
Comprehensive Income
Total Partners'
Capital
(In thousands)
Units
Amounts
Balance at December 31, 2021
12,351
$
203,062
$
1,787
$
47,964
$
3,211
$
256,024
Net income (1)
—
62,621
1,278
—
—
63,899
Distributions to common unitholders and
the general partner
—
(5,559
)
(113
)
—
—
(5,672
)
Distributions to preferred unitholders
—
(7,603
)
(155
)
—
—
(7,758
)
Issuance of unit-based awards
155
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
(1,754
)
—
—
—
(1,754
)
Capital contribution
—
—
112
—
—
112
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,545
2,545
Balance at March 31, 2022
12,506
$
250,767
$
2,909
$
47,964
$
5,756
$
307,396
Net income (1)
—
65,484
1,336
—
—
66,820
Distributions to common unitholders and
the general partner
—
(9,379
)
(191
)
—
—
(9,570
)
Distributions to preferred unitholders
—
(7,350
)
(150
)
—
—
(7,500
)
Unit-based awards amortization and
vesting
—
1,231
—
—
—
1,231
Comprehensive loss from unconsolidated
investment and other
—
—
—
—
(4,013
)
(4,013
)
Balance at June 30, 2022
12,506
$
300,753
$
3,904
$
47,964
$
1,743
$
354,364
________________ (1)
Net income includes $7.5 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.4 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Common Unitholders
General Partner
Warrant Holders
Accumulated Other
Comprehensive Income
Total Partners'
Capital
(In thousands)
Units
Amounts
Balance at December 31, 2020
12,261
$
136,927
$
459
$
66,816
$
322
$
204,524
Net income (1)
—
8,213
168
—
—
8,381
Distributions to common unitholders and
the general partner
—
(5,517
)
(113
)
—
—
(5,630
)
Distributions to preferred unitholders
—
(7,461
)
(152
)
—
—
(7,613
)
Issuance of unit-based awards
90
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
215
—
—
—
215
Capital contribution
—
—
32
—
—
32
Comprehensive income from unconsolidated
investment and other
—
—
—
—
732
732
Balance at March 31, 2021
12,351
$
132,377
$
394
$
66,816
$
1,054
$
200,641
Net income (2)
—
15,074
308
—
—
15,382
Distributions to common unitholders and
the general partner
—
(5,559
)
(113
)
—
—
(5,672
)
Distributions to preferred unitholders
—
(7,571
)
(155
)
—
—
(7,726
)
Unit-based awards amortization and
vesting
—
515
—
—
—
515
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,533
2,533
Balance at June 30, 2021
12,351
$
134,836
$
434
$
66,816
$
3,587
$
205,673
________________ (1)
Net income includes $7.7 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.6 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
(2)
Net income includes $7.8 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.7 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
The following tables present NRP's
unaudited business results by segment for the three months ended
June 30, 2022 and 2021 and March 31, 2022:
Operating Segments
Mineral Rights
Corporate and
Financing
(In
thousands)
Soda Ash
Total
For the Three Months Ended June 30,
2022
Revenues
$
84,945
$
14,643
$
—
$
99,588
Gain on asset sales and disposals
345
—
—
345
Total revenues and other income
$
85,290
$
14,643
$
—
$
99,933
Asset impairments
$
43
$
—
$
—
$
43
Net income (loss)
$
69,408
$
14,620
$
(17,208
)
$
66,820
Adjusted EBITDA (1)
$
75,298
$
10,463
$
(5,052
)
$
80,709
Cash flow provided by (used in) continuing
operations:
Operating activities
$
70,351
$
10,430
$
(17,658
)
$
63,123
Investing activities
$
909
$
—
$
—
$
909
Financing activities
$
—
$
—
$
(140,266
)
$
(140,266
)
Distributable cash flow (1)
$
71,260
$
10,430
$
(17,658
)
$
64,032
Free cash flow (1)
$
70,914
$
10,430
$
(17,658
)
$
63,686
For the Three Months Ended June 30,
2021
Revenues
$
35,793
$
2,601
$
—
$
38,394
Gain on asset sales and disposals
116
—
—
116
Total revenues and other income
$
35,909
$
2,601
$
—
$
38,510
Asset impairments
$
16
$
—
$
—
$
16
Net income (loss)
$
25,886
$
2,566
$
(13,070
)
$
15,382
Adjusted EBITDA (1)
$
30,774
$
(35
)
$
(3,388
)
$
27,351
Cash flow provided by (used in) continuing
operations:
Operating activities
$
32,028
$
(35
)
$
(18,609
)
$
13,384
Investing activities
$
657
$
—
$
—
$
657
Financing activities
$
(1,000
)
$
—
$
(11,900
)
$
(12,900
)
Distributable cash flow (1)
$
32,685
$
(35
)
$
(18,609
)
$
14,041
Free cash flow (1)
$
31,569
$
(35
)
$
(18,609
)
$
12,925
For the Three Months Ended March 31,
2022
Revenues
$
74,879
$
14,837
$
—
$
89,716
Gain on asset sales and disposals
—
—
—
—
Total revenues and other income
$
74,879
$
14,837
$
—
$
89,716
Asset impairments
$
19
$
—
$
—
$
19
Net income (loss)
$
62,967
$
14,786
$
(13,854
)
$
63,899
Adjusted EBITDA (1)
$
66,854
$
13,179
$
(4,467
)
$
75,566
Cash flow provided by (used in) continuing
operations:
Operating activities
$
48,176
$
13,195
$
(9,040
)
$
52,331
Investing activities
$
—
$
—
$
—
$
—
Financing activities
$
(614
)
$
—
$
(51,647
)
$
(52,261
)
Distributable cash flow (1)
$
48,176
$
13,195
$
(9,040
)
$
52,331
Free cash flow (1)
$
48,176
$
13,195
$
(9,040
)
$
52,331
_____________________ (1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
The following table presents NRP's
unaudited business results by segment for the six months ended June
30, 2022 and 2021:
Operating Segments
Mineral Rights
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Six Months Ended June 30, 2022
Revenues
$
159,824
$
29,480
$
—
$
189,304
Gain on asset sales and disposals
345
—
—
345
Total revenues and other income
$
160,169
$
29,480
$
—
$
189,649
Asset impairments
$
62
$
—
$
—
$
62
Net income (loss)
$
132,375
$
29,406
$
(31,062
)
$
130,719
Adjusted EBITDA (1)
$
142,152
$
23,642
$
(9,519
)
$
156,275
Cash flow provided by (used in) continuing
operations:
Operating activities
$
118,527
$
23,625
$
(26,698
)
$
115,454
Investing activities
$
909
$
—
$
—
$
909
Financing activities
$
(614
)
$
—
$
(191,913
)
$
(192,527
)
Distributable cash flow (1)
$
119,436
$
23,625
$
(26,698
)
$
116,363
Free cash flow (1)
$
119,090
$
23,625
$
(26,698
)
$
116,017
For the Six Months Ended June 30, 2021
Revenues
$
70,912
$
4,574
$
—
$
75,486
Gain on asset sales and disposals
175
—
—
175
Total revenues and other income
$
71,087
$
4,574
$
—
$
75,661
Asset impairments
$
4,059
$
—
$
—
$
4,059
Net income (loss)
$
46,374
$
4,519
$
(27,130
)
$
23,763
Adjusted EBITDA (1)
$
60,420
$
3,865
$
(7,498
)
$
56,787
Cash flow provided by (used in) continuing
operations:
Operating activities
$
57,990
$
3,853
$
(25,259
)
$
36,584
Investing activities
$
1,257
$
—
$
—
$
1,257
Financing activities
$
(1,132
)
$
—
$
(38,591
)
$
(39,723
)
Distributable cash flow (1)
$
59,247
$
3,853
$
(25,259
)
$
37,841
Free cash flow (1)
$
58,072
$
3,853
$
(25,259
)
$
36,666
___________________ (1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Operating Statistics - Mineral
Rights
For the Three Months
Ended
For the Six Months
Ended
June 30,
March 31,
June 30,
(In thousands, except per ton
data)
2022
2021
2022
2022
2021
Coal sales volumes (tons)
Appalachia
Northern
392
405
428
820
525
Central
3,484
2,975
3,251
6,735
5,625
Southern
312
316
361
673
416
Total Appalachia
4,188
3,696
4,040
8,228
6,566
Illinois Basin
3,403
2,640
1,502
4,905
5,298
Northern Powder River Basin
699
185
1,238
1,937
1,244
Gulf Coast
67
—
69
136
—
Total coal sales volumes
8,357
6,521
6,849
15,206
13,108
Coal royalty revenue per ton
Appalachia
Northern
$
11.84
$
4.45
$
10.14
$
10.95
$
4.27
Central
12.19
4.62
11.37
11.80
4.44
Southern
17.67
7.63
17.56
17.61
7.06
Illinois Basin
2.07
2.01
2.20
2.11
2.04
Northern Powder River Basin
4.74
4.15
3.74
4.10
3.49
Gulf Coast
0.57
—
0.55
0.56
—
Combined average coal royalty revenue per
ton
7.54
3.69
8.12
7.80
3.45
Coal royalty revenues
Appalachia
Northern
$
4,640
$
1,804
$
4,341
$
8,981
$
2,241
Central
42,461
13,756
36,980
79,441
24,951
Southern
5,513
2,410
6,340
11,853
2,938
Total Appalachia
52,614
17,970
47,661
100,275
30,130
Illinois Basin
7,061
5,300
3,303
10,364
10,783
Northern Powder River Basin
3,314
768
4,632
7,946
4,341
Gulf Coast
38
—
38
76
—
Unadjusted coal royalty revenues
63,027
24,038
55,634
118,661
45,254
Coal royalty adjustment for minimum
leases
(82
)
(5,740
)
(185
)
(267
)
(11,591
)
Total coal royalty revenues
$
62,945
$
18,298
$
55,449
$
118,394
$
33,663
Other revenues
Production lease minimum revenues
$
65
$
3,556
$
1,592
$
1,657
$
7,006
Minimum lease straight-line revenues
4,674
4,869
4,783
9,457
10,965
Wheelage revenues
4,379
1,844
3,717
8,096
3,625
Property tax revenues
1,695
1,587
1,472
3,167
3,056
Coal overriding royalty revenues
682
976
258
940
2,835
Lease amendment revenues
811
772
880
1,691
1,640
Aggregates royalty revenues
1,037
456
770
1,807
910
Oil and gas royalty revenues
2,906
900
1,814
4,720
2,266
Other revenues
139
353
348
487
572
Total other revenues
$
16,388
$
15,313
$
15,634
$
32,022
$
32,875
Royalty and other mineral rights
$
79,333
$
33,611
$
71,083
$
150,416
$
66,538
Transportation and processing services
revenues
5,612
2,182
3,796
9,408
4,374
Gain on asset sales and disposals
345
116
—
345
175
Total Mineral Rights segment revenues and
other income
$
85,290
$
35,909
$
74,879
$
160,169
$
71,087
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Adjusted EBITDA
Mineral Rights
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended June 30,
2022
Net income (loss)
$
69,408
$
14,620
$
(17,208
)
$
66,820
Less: equity earnings from unconsolidated
investment
—
(14,643
)
—
(14,643
)
Add: total distributions from
unconsolidated investment
—
10,486
—
10,486
Add: interest expense, net
—
—
8,108
8,108
Add: loss on extinguishment of debt
—
—
4,048
4,048
Add: depreciation, depletion and
amortization
5,847
—
—
5,847
Add: asset impairments
43
—
—
43
Adjusted EBITDA
$
75,298
$
10,463
$
(5,052
)
$
80,709
For the Three Months Ended June 30,
2021
Net income (loss)
$
25,886
$
2,566
$
(13,070
)
$
15,382
Less: equity earnings from unconsolidated
investment
—
(2,601
)
—
(2,601
)
Add: total distributions from
unconsolidated investment
—
—
—
—
Add: interest expense, net
1
—
9,682
9,683
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
4,871
—
—
4,871
Add: asset impairments
16
—
—
16
Adjusted EBITDA
$
30,774
$
(35
)
$
(3,388
)
$
27,351
For the Three Months Ended March 31,
2022
Net income (loss)
$
62,967
$
14,786
(13,854
)
$
63,899
Less: equity earnings from unconsolidated
investment
—
(14,837
)
—
(14,837
)
Add: total distributions from
unconsolidated investment
—
13,230
—
13,230
Add: interest expense, net
—
—
9,387
9,387
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
3,868
—
—
3,868
Add: asset impairments
19
—
—
19
Adjusted EBITDA
$
66,854
$
13,179
$
(4,467
)
$
75,566
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Adjusted EBITDA
Mineral Rights
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Six Months Ended June 30,
2022
Net income (loss)
$
132,375
$
29,406
$
(31,062
)
$
130,719
Less: equity earnings from unconsolidated
investment
—
(29,480
)
—
(29,480
)
Add: total distributions from
unconsolidated investment
—
23,716
—
23,716
Add: interest expense, net
—
—
17,495
17,495
Add: loss on extinguishment of debt
—
—
4,048
4,048
Add: depreciation, depletion and
amortization
9,715
—
—
9,715
Add: asset impairments
62
—
—
62
Adjusted EBITDA
$
142,152
$
23,642
$
(9,519
)
$
156,275
For the Six Months Ended June 30,
2021
Net income (loss)
$
46,374
$
4,519
$
(27,130
)
$
23,763
Less: equity earnings from unconsolidated
investment
—
(4,574
)
—
(4,574
)
Add: total distributions from
unconsolidated investment
—
3,920
—
3,920
Add: interest expense, net
24
—
19,632
19,656
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
9,963
—
—
9,963
Add: asset impairments
4,059
—
—
4,059
Adjusted EBITDA
$
60,420
$
3,865
$
(7,498
)
$
56,787
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
Mineral Rights
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Three Months Ended June 30,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
70,351
$
10,430
$
(17,658
)
$
63,123
Add: proceeds from asset sales and
disposals
346
—
—
346
Add: return of long-term contract
receivable
563
—
—
563
Distributable cash flow
$
71,260
$
10,430
$
(17,658
)
$
64,032
Less: proceeds from asset sales and
disposals
(346
)
—
—
(346
)
Less: acquisition costs
—
—
—
—
Free cash flow
$
70,914
$
10,430
$
(17,658
)
$
63,686
Net cash provided by investing
activities
$
909
$
—
$
—
$
909
Net cash used in financing activities
—
—
(140,266
)
(140,266
)
For the Three Months Ended June 30,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
32,028
$
(35
)
$
(18,609
)
$
13,384
Add: proceeds from asset sales and
disposals
116
—
—
116
Add: return of long-term contract
receivable
541
—
—
541
Distributable cash flow
$
32,685
$
(35
)
$
(18,609
)
$
14,041
Less: proceeds from asset sales and
disposals
(116
)
—
—
(116
)
Less: acquisition costs
(1,000
)
—
—
(1,000
)
Free cash flow
$
31,569
$
(35
)
$
(18,609
)
$
12,925
Net cash provided by investing
activities
$
657
$
—
$
—
$
657
Net cash used in financing activities
(1,000
)
—
(11,900
)
(12,900
)
For the Three Months Ended March 31,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
48,176
$
13,195
$
(9,040
)
$
52,331
Add: proceeds from asset sales and
disposals
—
—
—
—
Add: return of long-term contract
receivable
—
—
—
—
Distributable cash flow
$
48,176
$
13,195
$
(9,040
)
$
52,331
Less: proceeds from asset sales and
disposals
—
—
—
—
Less: acquisition costs
—
—
—
—
Free cash flow
$
48,176
$
13,195
$
(9,040
)
$
52,331
Net cash provided by investing
activities
$
—
$
—
$
—
$
—
Net cash used in financing activities
(614
)
—
(51,647
)
(52,261
)
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
Mineral Rights
Corporate and
Financing
(In thousands)
Soda Ash
Total
For the Six Months Ended June 30,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
118,527
$
23,625
$
(26,698
)
$
115,454
Add: proceeds from asset sales and
disposals
346
—
—
346
Add: return of long-term contract
receivable
563
—
—
563
Distributable cash flow
$
119,436
$
23,625
$
(26,698
)
$
116,363
Less: proceeds from asset sales and
disposals
(346
)
—
—
(346
)
Less: acquisition costs
—
—
—
—
Free cash flow
$
119,090
$
23,625
$
(26,698
)
$
116,017
Net cash provided by investing
activities
$
909
$
—
$
—
$
909
Net cash used in financing activities
(614
)
—
(191,913
)
(192,527
)
For the Six Months Ended June 30,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
57,990
$
3,853
(25,259
)
$
36,584
Add: proceeds from asset sales and
disposals
175
—
—
175
Add: return of long-term contract
receivable
1,082
—
—
1,082
Distributable cash flow
$
59,247
$
3,853
$
(25,259
)
$
37,841
Less: proceeds from asset sales and
disposals
(175
)
—
—
(175
)
Less: acquisition costs
(1,000
)
—
—
(1,000
)
Free cash flow
$
58,072
$
3,853
$
(25,259
)
$
36,666
Net cash provided by investing
activities
$
1,257
$
—
$
—
$
1,257
Net cash used in financing activities
(1,132
)
—
(38,591
)
(39,723
)
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Cash Flow Cushion
For the Three Months
Ended
(In thousands)
September 30, 2021
December 31, 2021
March 31, 2022
June 30, 2022
Last 12 Months
Net cash provided by operating activities
of continuing operations
$
30,059
$
55,161
$
52,331
$
63,123
$
200,674
Add: proceeds from asset sales and
disposals
74
—
—
346
420
Add: return of long-term contract
receivable
540
541
—
563
1,644
Distributable cash flow
$
30,673
$
55,702
$
52,331
$
64,032
$
202,738
Less: proceeds from asset sales and
disposals
(74
)
—
—
(346
)
(420
)
Free cash flow
$
30,599
$
55,702
$
52,331
$
63,686
$
202,318
Less: mandatory Opco debt repayments
—
(20,335
)
(16,697
)
(2,365
)
(39,397
)
Less: preferred unit distributions and
redemption of PIK units
(3,921
)
(3,980
)
(27,079
)
(7,500
)
(42,480
)
Less: common unit distributions
(5,671
)
(5,672
)
(5,672
)
(9,570
)
(26,585
)
Less: warrant cash settlement
—
(9,183
)
—
—
(9,183
)
Cash flow cushion
$
21,007
$
16,532
$
2,883
$
44,251
$
84,673
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Leverage Ratio
For the Three Months
Ended
(In
thousands)
September 30, 2021
December 31, 2021
March 31, 2022
June 30, 2022
Last Twelve Months
Net income
$
29,498
$
55,641
$
63,899
$
66,820
$
215,858
Less: equity earnings from unconsolidated
investment
(6,672
)
(10,625
)
(14,837
)
(14,643
)
(46,777
)
Add: total distributions from
unconsolidated investment
—
7,350
13,230
10,486
31,066
Add: interest expense, net
9,652
9,568
9,387
8,108
36,715
Add: loss on extinguishment of debt
—
—
—
4,048
4,048
Add: depreciation, depletion and
amortization
5,182
3,930
3,868
5,847
18,827
Add: asset impairments
57
986
19
43
1,105
Adjusted EBITDA
$
37,717
$
66,850
$
75,566
$
80,709
$
260,842
Debt—at June 30, 2022
$
301,313
Leverage Ratio (1)
1.2 x
___________________ (1)
Leverage Ratio is calculated as the
outstanding principal of NRP's debt as of June 30, 2022 divided by
the last twelve months' Adjusted EBITDA. Note that Adjusted EBITDA
under the indenture governing NRP's 2025 parent company notes may
be different than the amount shown above. However, NRP's last
twelve months Leverage ratio as of June 30, 2022, was 1.2x as
calculated under the indenture governing NRP's 2025 parent company
notes.
For the Three Months
Ended
(In
thousands)
September 30, 2020
December 31, 2020
March 31, 2021
June 30, 2021
Last Twelve Months
Net income
$
7,216
$
14,687
$
8,381
$
15,382
$
45,666
Less: equity earnings from unconsolidated
investment
(1,986
)
(5,528
)
(1,973
)
(2,601
)
(12,088
)
Add: total distributions from
unconsolidated investment
—
—
3,920
—
3,920
Add: interest expense, net
10,254
10,077
9,973
9,683
39,987
Add: depreciation, depletion and
amortization
2,111
3,013
5,092
4,871
15,087
Add: asset impairments
934
2,668
4,043
16
7,661
Adjusted EBITDA
$
18,529
$
24,917
$
29,436
$
27,351
$
100,233
Debt—at June 30, 2021
$
458,819
Leverage Ratio (1)
4.6 x
___________________ (1)
Leverage Ratio is calculated as the
outstanding principal of NRP's debt as of June 30, 2021 divided by
the last twelve months' Adjusted EBITDA
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220804005101/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
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