Natural Resource Partners L.P. (NYSE:NRP) today reported
third quarter 2022 results as follows:
For the Three Months
Ended
Last Twelve Months
Ended
(In thousands)
(Unaudited)
September 30, 2022
Operating cash flow (1)
$
82,496
$
253,111
Free cash flow (2)
83,012
254,731
Cash flow cushion (last twelve months)
(2)
129,607
Net income
$
74,555
$
260,915
Adjusted EBITDA (2)
85,625
308,750
______________________________
(1)
Operating cash flow for the nine months
ended September 30, 2022 was $197,950.
(2)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Highlights:
- Generated record free cash flow of $83 million in the
third quarter of 2022, and $199 million in the first nine months of
2022
- Closed new five-year, $130 million revolving credit
facility
- Announced full repayment of outstanding 9.125% Senior Notes
due 2025
- Executed second subsurface carbon dioxide ("CO2")
sequestration lease
- Pro-forma leverage ratio of 0.6x following the repayment of
9.125% Senior Notes, down from 4.6x as of June 30, 2021
“NRP's record year continues with third quarter free cash flow
generation of $83 million, bringing our year-to-date free cash flow
to $199 million, primarily due to the strong results of our Mineral
Rights segment," stated Craig Nunez, NRP’s president and chief
operating officer. “It is fitting that the 20th anniversary of the
Partnership's initial public offering coincides with the best
operating performance in our history. Not only has this year been
exceptional from a free cash flow perspective, but we continue to
execute on our strategy to de-risk the capital structure and grow
our carbon neutral portfolio. During the third quarter, we closed a
new five-year revolving credit facility that increased our
borrowing capacity from $100 million to $130 million. We also
announced the redemption of our outstanding 9.125% Senior Notes due
2025 and fully repaid the Senior Notes in October. After giving
effect to the redemption, NRP has permanently retired $249 million
of debt this year. In the third quarter we also executed our second
subsurface CO2 sequestration lease for an estimated carbon storage
capacity of at least 500 million metric tons of CO2. NRP currently
has approximately 140,000 acres of pore space under lease for
carbon sequestration with estimated potential CO2 storage capacity
of at least 800 million metric tons. We continue to believe that
de-risking the Partnership and leveraging our asset footprint in
this regard, while continuing to provide unitholder distributions,
is the right strategy to maximize unitholder value.”
NRP announced today that the Board of Directors of its general
partner declared a cash distribution of $0.75 per common unit to be
paid on November 22, 2022 to unitholders of record on November 15,
2022. In addition, the board declared a $7.5 million cash
distribution on its outstanding preferred units. Future
distributions on NRP's common and preferred units will be
determined on a quarterly basis by the Board of Directors. The
Board of Directors considers numerous factors each quarter in
determining cash distributions, including profitability, cash flow,
debt service obligations, market conditions and outlook, estimated
unitholder income tax liability and the level of cash reserves that
the board determines is necessary for future operating and capital
needs.
NRP's liquidity was $190.9 million at September 30, 2022,
consisting of $60.9 million of cash and $130.0 million of borrowing
capacity available under its recently amended revolving credit
facility.
Segment Performance
Mineral Rights
Mineral Rights net income for the third quarter of 2022
increased $35.6 million as compared to the prior year period. Free
cash flow for the third quarter increased $42.0 million as compared
to the prior year period. These increases were primarily due to
stronger metallurgical coal demand and pricing in 2022.
Approximately 65% of coal royalty revenues and approximately 40% of
coal royalty sales volumes were derived from metallurgical coal in
the third quarter of 2022.
Metallurgical and thermal coal prices remain supported by
ongoing tightness in the supply-demand balance for coal. Many
operators are limited in their ability to increase production due
to ongoing labor shortages, global supply chain interruptions, and
access to capital. Thermal coal prices are further supported by the
European Union's ban on Russian coal due to the war in Ukraine, as
well as increased natural gas prices and demand for electricity.
While metallurgical markets are seeing weakened demand for steel,
and thermal markets continue to face ongoing environmental and
political pressures, supply constraints should provide continued
support for metallurgical and thermal coal prices for the
foreseeable future.
NRP continues to identify alternative revenue opportunities
across its large portfolio of land and mineral assets. NRP owns the
rights to sequester CO2 on approximately 3.5 million acres of pore
space in the southern United States. As announced previously, in
the first quarter of 2022 NRP executed its first subsurface CO2
sequestration lease on 75,000 acres of underground pore space NRP
owns in southwest Alabama with the potential to store over 300
million metric tons of CO2. In October of 2022, NRP announced its
second subsurface CO2 transaction with the execution of a lease for
approximately 65,000 acres of pore space controlled by NRP near
southeast Texas with estimated storage capacity of at least 500
million metric tons of CO2. In total, NRP has approximately 140,000
acres of pore space under lease for carbon sequestration with
estimated CO2 storage capacity of 800 million metric tons. While
the timing and likelihood of additional cash flows being realized
from these activities is uncertain, NRP believes its large
ownership footprint throughout the United States will provide
additional opportunities to create value in this regard and
position NRP as a key beneficiary of the transitional energy
economy with minimal capital investment.
Soda Ash
Soda Ash net income in the third quarter of 2022 increased $7.9
million as compared to the prior year period primarily as a result
of increased international sales prices. Free cash flow in the
third quarter of 2022 increased $10.3 million as compared to the
prior year period due to Sisecam Wyoming reinstating its regular
quarterly cash distributions beginning in the fourth quarter of
2021.
Supply interruptions in China and input cost inflation which
significantly increased the global marginal cost of soda ash
production led to historically high soda ash prices in the third
quarter of 2022. Though soda ash demand weakened in many parts of
the world during the third quarter due to slowing global economic
growth and lower construction activity in China, Sisecam Wyoming
remained sold-out as it took advantage of its low-cost position to
profitably export soda ash. Consequently, Sisecam Wyoming delivered
strong financial results in the third quarter of 2022.
Corporate and Financing
Corporate and Financing costs in the third quarter of 2022
decreased $1.6 million as compared to the prior year period
primarily due to lower interest expense resulting from less debt
outstanding, partially offset by the loss on early extinguishment
of debt. Free cash flow in the third quarter of 2022 was relatively
flat as compared to the prior year period.
During the third quarter of 2022, NRP repaid $60.5 million of
debt and refinanced, upsized, and extended its credit facility to
$130 million due 2027. In October of 2022, NRP fully retired its
outstanding $121.4 million of 9.125% Senior Notes due 2025 at its
redemption price of 102.281%, utilizing cash on hand and $70
million of borrowings under its new credit facility. After giving
effect to this redemption, NRP's remaining total debt outstanding
is $189.4 million.
Additionally, in August of 2022, NRP paid a second quarter 2022
cash distribution of $0.75 per common unit of NRP and a $7.5
million cash distribution on the preferred units.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To
register for the conference call, please use this link:
https://conferencingportals.com/event/kfJdSHYP. After registering a
confirmation will be sent via email, including dial in details and
unique conference call codes for entry. Registration is open
through the live call, however, to ensure you are connected for the
full call we suggest registering at least 10 minutes prior to the
start of the call. Investors may also listen to the call via the
Investor Relations section of the NRP website at www.nrplp.com. To
access the replay, please visit the Investor Relations section of
NRP’s website.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of NRP's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States trade or business. Accordingly,
NRP's distributions to foreign investors are subject to federal
income tax withholding at the highest applicable rate.
Company Profile
Natural Resource Partners L.P., a master limited partnership
headquartered in Houston, TX, is a diversified natural resource
company that owns, manages and leases a diversified portfolio of
properties in the United States including coal, industrial minerals
and other natural resources, as well as rights to conduct carbon
sequestration and renewable energy activities. NRP also owns an
equity investment in Sisecam Wyoming LLC, one of the world’s
lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at
713-751-7515 or tsammis@nrplp.com. Further information about NRP is
available on the Partnership’s website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements are
based on certain assumptions made by the Partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Partnership. These risks include, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the 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; 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 Nine Months
Ended
September 30,
June 30,
September 30,
(In thousands,
except per unit data)
2022
2021
2022
2022
2021
Revenues and other income
Royalty and other mineral rights
$
81,379
$
47,884
$
79,333
$
231,795
$
114,422
Transportation and processing services
5,969
2,171
5,612
15,377
6,545
Equity in earnings of Sisecam Wyoming
14,556
6,672
14,643
44,036
11,246
Gain on asset sales and disposals
354
68
345
699
243
Total revenues and other income
$
102,258
$
56,795
$
99,933
$
291,907
$
132,456
Operating expenses
Operating and maintenance expenses
$
7,898
$
8,354
$
10,015
$
25,989
$
19,076
Depreciation, depletion and
amortization
6,850
5,182
5,847
16,565
15,145
General and administrative expenses
4,518
4,052
5,052
14,037
11,550
Asset impairments
812
57
43
874
4,116
Total operating expenses
$
20,078
$
17,645
$
20,957
$
57,465
$
49,887
Income from operations
$
82,180
$
39,150
$
78,976
$
234,442
$
82,569
Other expenses, net
Interest expense, net
$
(5,141
)
$
(9,652
)
$
(8,108
)
$
(22,636
)
$
(29,308
)
Loss on extinguishment of debt
(2,484
)
—
(4,048
)
(6,532
)
—
Total other expenses, net
$
(7,625
)
$
(9,652
)
$
(12,156
)
$
(29,168
)
$
(29,308
)
Net income
$
74,555
$
29,498
$
66,820
$
205,274
$
53,261
Less: income attributable to preferred
unitholders
(7,500
)
(7,961
)
(7,500
)
(22,500
)
(23,530
)
Net income attributable to common
unitholders and the general partner
$
67,055
$
21,537
$
59,320
$
182,774
$
29,731
Net income attributable to common
unitholders
$
65,714
$
21,106
$
58,134
$
179,119
$
29,136
Net income attributable to the general
partner
1,341
431
1,186
3,655
595
Net income per common unit
Basic
$
5.25
$
1.71
$
4.65
$
14.36
$
2.36
Diluted
3.71
1.10
3.29
10.24
1.98
Net income
$
74,555
$
29,498
$
66,820
$
205,274
$
53,261
Comprehensive income (loss) from
unconsolidated investment and other
289
4,204
(4,013
)
(1,179
)
7,469
Comprehensive income
$
74,844
$
33,702
$
62,807
$
204,095
$
60,730
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Cash Flows
For the Three Months
Ended
For the Nine Months
Ended
September 30,
June 30,
September 30,
(In
thousands)
2022
2021
2022
2022
2021
Cash flows from operating activities
Net income
$
74,555
$
29,498
$
66,820
$
205,274
$
53,261
Adjustments to reconcile net income to net
cash provided by operating activities of continuing operations:
Depreciation, depletion and
amortization
6,850
5,182
5,847
16,565
15,145
Distributions from unconsolidated
investment
10,339
—
10,486
34,055
3,920
Equity earnings from unconsolidated
investment
(14,556
)
(6,672
)
(14,643
)
(44,036
)
(11,246
)
Gain on asset sales and disposals
(354
)
(68
)
(345
)
(699
)
(243
)
Loss on extinguishment of debt
2,484
—
4,048
6,532
—
Asset impairments
812
57
43
874
4,116
Bad debt expense
1
2,069
(388
)
641
1,715
Unit-based compensation expense
1,429
1,118
1,339
4,216
2,837
Amortization of debt issuance costs and
other
215
653
1,297
1,887
1,899
Change in operating assets and
liabilities:
Accounts receivable
2,494
(9,163
)
(5,033
)
(10,118
)
(12,332
)
Accounts payable
210
182
73
223
89
Accrued liabilities
278
357
2,047
(4,831
)
(839
)
Accrued interest
3,177
7,262
(7,413
)
3,014
6,971
Deferred revenue
(7,519
)
(2,652
)
(2,259
)
(17,094
)
(2,121
)
Other items, net
2,081
2,236
1,204
1,447
3,471
Net cash provided by operating
activities
$
82,496
$
30,059
$
63,123
$
197,950
$
66,643
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
353
$
74
$
346
$
699
$
249
Return of long-term contract
receivable
575
540
563
1,138
1,622
Capital expenditures
(59
)
—
—
(59
)
—
Net cash provided by investing
activities
$
869
$
614
$
909
$
1,778
$
1,871
Cash flows from financing activities
Debt repayments
$
(60,494
)
$
—
$
(120,474
)
$
(197,665
)
$
(19,061
)
Distributions to common unitholders and
the general partner
(9,571
)
(5,671
)
(9,570
)
(24,813
)
(16,973
)
Distributions to preferred unitholders
(7,500
)
(3,921
)
(7,500
)
(22,500
)
(11,591
)
Acquisition of non-controlling interest in
BRP
—
—
—
—
(1,000
)
Redemption of preferred units
paid-in-kind
—
—
—
(19,579
)
—
Other items, net
(4,219
)
—
(2,722
)
(9,754
)
(690
)
Net cash used in financing activities
$
(81,784
)
$
(9,592
)
$
(140,266
)
$
(274,311
)
$
(49,315
)
Net increase (decrease) in cash and cash
equivalents
$
1,581
$
21,081
$
(76,234
)
$
(74,583
)
$
19,199
Cash and cash equivalents at beginning of
period
59,356
97,908
135,590
135,520
99,790
Cash and cash equivalents at end of
period
$
60,937
$
118,989
$
59,356
$
60,937
$
118,989
Supplemental cash flow information:
Cash paid for interest
$
1,729
$
1,898
$
15,128
$
18,501
$
20,829
Non-cash investing and financing
activities:
Preferred unit distributions
paid-in-kind
—
3,921
—
—
11,591
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Balance
Sheets
September 30,
December 31,
(In thousands,
except unit data)
2022
2021
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
60,937
$
135,520
Accounts receivable, net
34,726
24,538
Other current assets, net
1,228
2,723
Total current assets
$
96,891
$
162,781
Land
24,008
24,008
Mineral rights, net
421,351
437,697
Intangible assets, net
15,168
16,130
Equity in unconsolidated investment
284,806
276,004
Long-term contract receivable, net
29,570
31,371
Other long-term assets, net
7,216
5,832
Total assets
$
879,010
$
953,823
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
2,179
$
1,956
Accrued liabilities
5,913
10,297
Accrued interest
4,227
1,213
Current portion of deferred revenue
8,886
11,817
Current portion of long-term debt, net
89,989
39,102
Total current liabilities
$
111,194
$
64,385
Deferred revenue
35,882
50,045
Long-term debt, net
148,734
394,443
Other non-current liabilities
5,231
5,018
Total liabilities
$
301,041
$
513,891
Commitments and contingencies
Class A Convertible Preferred Units
(250,000 and 269,321 units issued and outstanding at September 30,
2022 and December 31, 2021, respectively, at $1,000 par value per
unit; liquidation preference of $1,850 per unit at September 30,
2022 and December 31, 2021)
$
164,587
$
183,908
Partners’ capital
Common unitholders’ interest (12,505,996
and 12,351,306 units issued and outstanding at September 30, 2022
and December 31, 2021, respectively)
$
358,332
$
203,062
General partner’s interest
5,054
1,787
Warrant holders’ interest
47,964
47,964
Accumulated other comprehensive income
2,032
3,211
Total partners’ capital
$
413,382
$
256,024
Total liabilities and partners'
capital
$
879,010
$
953,823
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Accumulated
Other
Total
Common Unitholders
General
Warrant
Comprehensive
Partners'
(In
thousands)
Units
Amounts
Partner
Holders
Income
Capital
Balance at December 31, 2021
12,351
$
203,062
$
1,787
$
47,964
$
3,211
$
256,024
Net income (1)
—
62,621
1,278
—
—
63,899
Distributions to common unitholders and
the general partner
—
(5,559
)
(113
)
—
—
(5,672
)
Distributions to preferred unitholders
—
(7,603
)
(155
)
—
—
(7,758
)
Issuance of unit-based awards
155
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
(1,754
)
—
—
—
(1,754
)
Capital contribution
—
—
112
—
—
112
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,545
2,545
Balance at March 31, 2022
12,506
$
250,767
$
2,909
$
47,964
$
5,756
$
307,396
Net income (1)
—
65,484
1,336
—
—
66,820
Distributions to common unitholders and
the general partner
—
(9,379
)
(191
)
—
—
(9,570
)
Distributions to preferred unitholders
—
(7,350
)
(150
)
—
—
(7,500
)
Unit-based awards amortization and
vesting
—
1,231
—
—
—
1,231
Comprehensive loss from unconsolidated
investment and other
—
—
—
—
(4,013
)
(4,013
)
Balance at June 30, 2022
12,506
$
300,753
$
3,904
$
47,964
$
1,743
$
354,364
Net income (1)
—
73,064
1,491
—
—
74,555
Distributions to common unitholders and
the general partner
—
(9,380
)
(191
)
—
—
(9,571
)
Distributions to preferred unitholders
—
(7,350
)
(150
)
—
—
(7,500
)
Unit-based awards amortization and
vesting
—
1,245
—
—
—
1,245
Comprehensive income from unconsolidated
investment and other
—
—
—
—
289
289
Balance at September 30, 2022
12,506
$
358,332
$
5,054
$
47,964
$
2,032
$
413,382
______________________________
(1)
Net income includes $7.5 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.4 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Accumulated
Other
Total
Common Unitholders
General
Warrant
Comprehensive
Partners'
(In
thousands)
Units
Amounts
Partner
Holders
Income
Capital
Balance at December 31, 2020
12,261
$
136,927
$
459
$
66,816
$
322
$
204,524
Net income (1)
—
8,213
168
—
—
8,381
Distributions to common unitholders and
the general partner
—
(5,517
)
(113
)
—
—
(5,630
)
Distributions to preferred unitholders
—
(7,461
)
(152
)
—
—
(7,613
)
Issuance of unit-based awards
90
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
215
—
—
—
215
Capital contribution
—
—
32
—
—
32
Comprehensive income from unconsolidated
investment and other
—
—
—
—
732
732
Balance at March 31, 2021
12,351
$
132,377
$
394
$
66,816
$
1,054
$
200,641
Net income (2)
—
15,074
308
—
—
15,382
Distributions to common unitholders and
the general partner
—
(5,559
)
(113
)
—
—
(5,672
)
Distributions to preferred unitholders
—
(7,571
)
(155
)
—
—
(7,726
)
Unit-based awards amortization and
vesting
—
515
—
—
—
515
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,533
2,533
Balance at June 30, 2021
12,351
$
134,836
$
434
$
66,816
$
3,587
$
205,673
Net income (3)
—
28,909
589
—
—
29,498
Distributions to common unitholders and
the general partner
—
(5,558
)
(113
)
—
—
(5,671
)
Distributions to preferred unitholders
—
(7,687
)
(156
)
—
—
(7,843
)
Unit-based awards amortization and
vesting
—
959
—
—
—
959
Comprehensive income from unconsolidated
investment and other
—
—
—
—
4,204
4,204
Balance at September 30, 2021
12,351
$
151,459
$
754
$
66,816
$
7,791
$
226,820
______________________________
(1)
Net income includes $7.7 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.6 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
(2)
Net income includes $7.8 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.7 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
(3)
Net income includes $8.0 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.8 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
The following table presents NRP's
unaudited business results by segment for the three months ended
September 30, 2022 and 2021 and June 30, 2022:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Three Months Ended September 30,
2022
Revenues
$
87,348
$
14,556
$
—
$
101,904
Gain on asset sales and disposals
354
—
—
354
Total revenues and other income
$
87,702
$
14,556
$
—
$
102,258
Asset impairments
$
812
$
—
$
—
$
812
Net income (loss)
$
72,173
$
14,525
$
(12,143
)
$
74,555
Adjusted EBITDA (1)
$
79,835
$
10,308
$
(4,518
)
$
85,625
Cash flow provided by (used in) continuing
operations:
Operating activities
$
75,948
$
10,309
$
(3,761
)
$
82,496
Investing activities
$
928
$
—
$
(59
)
$
869
Financing activities
$
—
$
—
$
(81,784
)
$
(81,784
)
Distributable cash flow (1)
$
76,876
$
10,309
$
(3,820
)
$
83,365
Free cash flow (1)
$
76,523
$
10,309
$
(3,820
)
$
83,012
For the Three Months Ended September 30,
2021
Revenues
$
50,055
$
6,672
$
—
$
56,727
Gain on asset sales and disposals
68
—
—
68
Total revenues and other income
$
50,123
$
6,672
$
—
$
56,795
Asset impairments
$
57
$
—
$
—
$
57
Net income (loss)
$
36,606
$
6,596
$
(13,704
)
$
29,498
Adjusted EBITDA (1)
$
41,845
$
(76
)
$
(4,052
)
$
37,717
Cash flow provided by (used in) continuing
operations:
Operating activities
$
33,968
$
(36
)
$
(3,873
)
$
30,059
Investing activities
$
614
$
—
$
—
$
614
Financing activities
$
—
$
—
$
(9,592
)
$
(9,592
)
Distributable cash flow (1)
$
34,582
$
(36
)
$
(3,873
)
$
30,673
Free cash flow (1)
$
34,508
$
(36
)
$
(3,873
)
$
30,599
For the Three Months Ended June 30,
2022
Revenues
$
84,945
$
14,643
$
—
$
99,588
Gain on asset sales and disposals
345
—
—
345
Total revenues and other income
$
85,290
$
14,643
$
—
$
99,933
Asset impairments
$
43
$
—
$
—
$
43
Net income (loss)
$
69,408
$
14,620
$
(17,208
)
$
66,820
Adjusted EBITDA (1)
$
75,298
$
10,463
$
(5,052
)
$
80,709
Cash flow provided by (used in) continuing
operations:
Operating activities
$
70,351
$
10,430
$
(17,658
)
$
63,123
Investing activities
$
909
$
—
$
—
$
909
Financing activities
$
—
$
—
$
(140,266
)
$
(140,266
)
Distributable cash flow (1)
$
71,260
$
10,430
$
(17,658
)
$
64,032
Free cash flow (1)
$
70,914
$
10,430
$
(17,658
)
$
63,686
______________________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
The following table presents NRP's
unaudited business results by segment for the nine months ended
September 30, 2022 and 2021:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Nine Months Ended September 30,
2022
Revenues
$
247,172
$
44,036
$
—
$
291,208
Gain on asset sales and disposals
699
—
—
699
Total revenues and other income
$
247,871
$
44,036
$
—
$
291,907
Asset impairments
$
874
$
—
$
—
$
874
Net income (loss)
$
204,548
$
43,931
$
(43,205
)
$
205,274
Adjusted EBITDA (1)
$
221,987
$
33,950
$
(14,037
)
$
241,900
Cash flow provided by (used in) continuing
operations:
Operating activities
$
194,475
$
33,934
$
(30,459
)
$
197,950
Investing activities
$
1,837
$
—
$
(59
)
$
1,778
Financing activities
$
(614
)
$
—
$
(273,697
)
$
(274,311
)
Distributable cash flow (1)
$
196,312
$
33,934
$
(30,518
)
$
199,728
Free cash flow (1)
$
195,613
$
33,934
$
(30,518
)
$
199,029
For the Nine Months Ended September 30,
2021
Revenues
$
120,967
$
11,246
$
—
$
132,213
Gain on asset sales and disposals
243
—
—
243
Total revenues and other income
$
121,210
$
11,246
$
—
$
132,456
Asset impairments
$
4,116
$
—
$
—
$
4,116
Net income (loss)
$
82,980
$
11,115
$
(40,834
)
$
53,261
Adjusted EBITDA (1)
$
102,265
$
3,789
$
(11,550
)
$
94,504
Cash flow provided by (used in) continuing
operations:
Operating activities
$
91,958
$
3,817
$
(29,132
)
$
66,643
Investing activities
$
1,871
$
—
$
—
$
1,871
Financing activities
$
(1,132
)
$
—
$
(48,183
)
$
(49,315
)
Distributable cash flow (1)
$
93,829
$
3,817
$
(29,132
)
$
68,514
Free cash flow (1)
$
92,580
$
3,817
$
(29,132
)
$
67,265
______________________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Operating Statistics - Mineral
Rights
For the Three Months
Ended
For the Nine Months
Ended
September 30,
June 30,
September 30,
(In thousands,
except per ton data)
2022
2021
2022
2022
2021
Coal sales volumes (tons)
Appalachia
Northern
440
422
392
1,260
947
Central
3,503
3,199
3,484
10,238
8,824
Southern
498
642
312
1,171
1,058
Total Appalachia
4,441
4,263
4,188
12,669
10,829
Illinois Basin
3,490
2,689
3,403
8,395
7,987
Northern Powder River Basin
835
1,047
699
2,772
2,291
Gulf Coast
188
13
67
324
13
Total coal sales volumes
8,954
8,012
8,357
24,160
21,120
Coal royalty revenue per ton
Appalachia
Northern
$
6.74
$
7.18
$
11.84
$
9.48
$
5.57
Central
9.04
5.74
12.19
10.85
4.91
Southern
9.78
11.61
17.67
14.28
9.82
Illinois Basin
2.57
2.33
2.07
2.30
2.13
Northern Powder River Basin
4.56
3.71
4.74
4.24
3.59
Gulf Coast
0.59
0.54
0.57
0.58
0.54
Combined average coal royalty revenue per
ton
5.85
4.87
7.54
7.08
3.99
Coal royalty revenues
Appalachia
Northern
$
2,965
$
3,031
$
4,640
$
11,946
$
5,272
Central
31,680
18,357
42,461
111,121
43,308
Southern
4,872
7,452
5,513
16,725
10,390
Total Appalachia
39,517
28,840
52,614
139,792
58,970
Illinois Basin
8,967
6,261
7,061
19,331
17,044
Northern Powder River Basin
3,805
3,881
3,314
11,751
8,222
Gulf Coast
111
7
38
187
7
Unadjusted coal royalty revenues
52,400
38,989
63,027
171,061
84,243
Coal royalty adjustment for minimum
leases
(19
)
(6,557
)
(82
)
(286
)
(18,148
)
Total coal royalty revenues
$
52,381
$
32,432
$
62,945
170,775
$
66,095
Other revenues
Production lease minimum revenues
$
1,885
$
3,235
$
65
$
3,542
$
10,241
Minimum lease straight-line revenues
4,778
4,808
4,674
14,235
15,773
Carbon neutral initiative revenues
8,600
—
—
8,600
—
Wheelage revenues
2,977
1,964
4,379
11,073
5,589
Property tax revenues
1,360
1,466
1,695
4,527
4,522
Coal overriding royalty revenues
1,367
757
682
2,307
3,592
Lease amendment revenues
759
1,519
811
2,450
3,159
Aggregates royalty revenues
884
429
1,037
2,691
1,339
Oil and gas royalty revenues
6,170
1,154
2,906
10,890
3,420
Other revenues
218
120
139
705
692
Total other revenues
$
28,998
$
15,452
$
16,388
$
61,020
$
48,327
Royalty and other mineral rights
$
81,379
$
47,884
$
79,333
$
231,795
$
114,422
Transportation and processing services
revenues
5,969
2,171
5,612
15,377
6,545
Gain on asset sales and disposals
354
68
345
699
243
Total Mineral Rights segment revenues and
other income
$
87,702
$
50,123
$
85,290
$
247,871
$
121,210
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Adjusted EBITDA
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Three Months Ended September
30, 2022
Net income (loss)
$
72,173
$
14,525
$
(12,143
)
$
74,555
Less: equity earnings from unconsolidated
investment
—
(14,556
)
—
(14,556
)
Add: total distributions from
unconsolidated investment
—
10,339
—
10,339
Add: interest expense, net
—
—
5,141
5,141
Add: loss on extinguishment of debt
—
—
2,484
2,484
Add: depreciation, depletion and
amortization
6,850
—
—
6,850
Add: asset impairments
812
—
—
812
Adjusted EBITDA
$
79,835
$
10,308
$
(4,518
)
$
85,625
For the Three Months Ended September
30, 2021
Net income (loss)
$
36,606
$
6,596
$
(13,704
)
$
29,498
Less: equity earnings from unconsolidated
investment
—
(6,672
)
—
(6,672
)
Add: total distributions from
unconsolidated investment
—
—
—
—
Add: interest expense, net
—
—
9,652
9,652
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
5,182
—
—
5,182
Add: asset impairments
57
—
—
57
Adjusted EBITDA
$
41,845
$
(76
)
$
(4,052
)
$
37,717
For the Three Months Ended June 30,
2022
Net income (loss)
$
69,408
$
14,620
$
(17,208
)
$
66,820
Less: equity earnings from unconsolidated
investment
—
(14,643
)
—
(14,643
)
Add: total distributions from
unconsolidated investment
—
10,486
—
10,486
Add: interest expense, net
—
—
8,108
8,108
Add: loss on extinguishment of debt
—
—
4,048
4,048
Add: depreciation, depletion and
amortization
5,847
—
—
5,847
Add: asset impairments
43
—
—
43
Adjusted EBITDA
$
75,298
$
10,463
$
(5,052
)
$
80,709
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Nine Months Ended September 30,
2022
Net income (loss)
$
204,548
$
43,931
$
(43,205
)
$
205,274
Less: equity earnings from unconsolidated
investment
—
(44,036
)
—
(44,036
)
Add: total distributions from
unconsolidated investment
—
34,055
—
34,055
Add: interest expense, net
—
—
22,636
22,636
Add: loss on extinguishment of debt
—
—
6,532
6,532
Add: depreciation, depletion and
amortization
16,565
—
—
16,565
Add: asset impairments
874
—
—
874
Adjusted EBITDA
$
221,987
$
33,950
$
(14,037
)
$
241,900
For the Nine Months Ended September 30,
2021
Net income (loss)
$
82,980
$
11,115
$
(40,834
)
$
53,261
Less: equity earnings from unconsolidated
investment
—
(11,246
)
—
(11,246
)
Add: total distributions from
unconsolidated investment
—
3,920
—
3,920
Add: interest expense, net
24
—
29,284
29,308
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
15,145
—
—
15,145
Add: asset impairments
4,116
—
—
4,116
Adjusted EBITDA
$
102,265
$
3,789
$
(11,550
)
$
94,504
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Three Months Ended September
30, 2022
Net cash provided by (used in) operating
activities of continuing operations
$
75,948
$
10,309
$
(3,761
)
$
82,496
Add: proceeds from asset sales and
disposals
353
—
—
353
Add: return of long-term contract
receivable
575
—
—
575
Less: maintenance capital expenditures
—
—
(59
)
(59
)
Distributable cash flow
$
76,876
$
10,309
$
(3,820
)
$
83,365
Less: proceeds from asset sales and
disposals
(353
)
—
—
(353
)
Free cash flow
$
76,523
$
10,309
$
(3,820
)
$
83,012
Net cash provided by (used in) investing
activities
$
928
$
—
$
(59
)
$
869
Net cash used in financing activities
—
—
(81,784
)
(81,784
)
For the Three Months Ended September
30, 2021
Net cash provided by (used in) operating
activities of continuing operations
$
33,968
$
(36
)
$
(3,873
)
$
30,059
Add: proceeds from asset sales and
disposals
74
—
—
74
Add: return of long-term contract
receivable
540
—
—
540
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
34,582
$
(36
)
$
(3,873
)
$
30,673
Less: proceeds from asset sales and
disposals
(74
)
—
—
(74
)
Free cash flow
$
34,508
$
(36
)
$
(3,873
)
$
30,599
Net cash provided by investing
activities
$
614
$
—
$
—
$
614
Net cash used in financing activities
—
—
(9,592
)
(9,592
)
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
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
71,260
$
10,430
$
(17,658
)
$
64,032
Less: proceeds from asset sales and
disposals
(346
)
—
—
(346
)
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
)
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Nine Months Ended September 30,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
194,475
$
33,934
$
(30,459
)
$
197,950
Add: proceeds from asset sales and
disposals
699
—
—
699
Add: return of long-term contract
receivable
1,138
—
—
1,138
Less: maintenance capital expenditures
—
—
(59
)
(59
)
Distributable cash flow
$
196,312
$
33,934
$
(30,518
)
$
199,728
Less: proceeds from asset sales and
disposals
(699
)
—
—
(699
)
Less: acquisition costs
—
—
—
—
Free cash flow
$
195,613
$
33,934
$
(30,518
)
$
199,029
Net cash provided by (used in) investing
activities
$
1,837
$
—
$
(59
)
$
1,778
Net cash used in financing activities
(614
)
—
(273,697
)
(274,311
)
For the Nine Months Ended September 30,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
91,958
$
3,817
$
(29,132
)
$
66,643
Add: proceeds from asset sales and
disposals
249
—
—
249
Add: return of long-term contract
receivable
1,622
—
—
1,622
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
93,829
$
3,817
$
(29,132
)
$
68,514
Less: proceeds from asset sales and
disposals
(249
)
—
—
(249
)
Less: acquisition costs
(1,000
)
—
—
(1,000
)
Free cash flow
$
92,580
$
3,817
$
(29,132
)
$
67,265
Net cash provided by investing
activities
$
1,871
$
—
$
—
$
1,871
Net cash used in financing activities
(1,132
)
—
(48,183
)
(49,315
)
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Cash Flow Cushion
For the Three Months
Ended
(In
thousands)
December 31, 2021
March 31, 2022
June 30, 2022
September 30, 2022
Last 12 Months
Net cash provided by operating activities
of continuing operations
$
55,161
$
52,331
$
63,123
$
82,496
$
253,111
Add: proceeds from asset sales and
disposals
—
—
346
353
699
Add: return of long-term contract
receivable
541
—
563
575
1,679
Less: maintenance capital expenditures
—
—
—
(59
)
(59
)
Distributable cash flow
$
55,702
$
52,331
$
64,032
$
83,365
$
255,430
Less: proceeds from asset sales and
disposals
—
—
(346
)
(353
)
(699
)
Free cash flow
$
55,702
$
52,331
$
63,686
$
83,012
$
254,731
Less: mandatory Opco debt repayments
(20,335
)
(16,697
)
(2,365
)
—
(39,397
)
Less: preferred unit distributions and
redemption of PIK units
(3,980
)
(27,079
)
(7,500
)
(7,500
)
(46,059
)
Less: common unit distributions
(5,672
)
(5,672
)
(9,570
)
(9,571
)
(30,485
)
Less: warrant cash settlement
(9,183
)
—
—
—
(9,183
)
Cash flow cushion
$
16,532
$
2,883
$
44,251
$
65,941
$
129,607
Leverage Ratio
For the Three Months
Ended
(In
thousands)
December 31, 2021
March 31, 2022
June 30, 2022
September 30, 2022
Last 12 Months
Net income
$
55,641
$
63,899
$
66,820
$
74,555
$
260,915
Less: equity earnings from unconsolidated
investment
(10,625
)
(14,837
)
(14,643
)
(14,556
)
(54,661
)
Add: total distributions from
unconsolidated investment
7,350
13,230
10,486
10,339
41,405
Add: interest expense, net
9,568
9,387
8,108
5,141
32,204
Add: loss on extinguishment of debt
—
—
4,048
2,484
6,532
Add: depreciation, depletion and
amortization
3,930
3,868
5,847
6,850
20,495
Add: asset impairments
986
19
43
812
1,860
Adjusted EBITDA
$
66,850
$
75,566
$
80,709
$
85,625
$
308,750
Debt—at September 30, 2022
$
240,819
Less: Redemption of 9.125% Senior
Notes
(121,396
)
Add: October 2022 draw on revolving credit
facility
70,000
Pro-Forma Debt—at September 30, 2022
$
189,423
Leverage Ratio (1)
0.8 x
Pro-Forma Leverage Ratio at September 30,
2022
0.6 x
______________________________
(1)
Leverage Ratio is calculated as the
outstanding principal of NRP's debt as of September 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 September
30, 2022, was 0.8x 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 12 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/20221103005139/en/
Tiffany Sammis, 713-751-7515 tsammis@nrplp.com
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
From Jul 2023 to Jul 2024