Natural Resource Partners L.P. (NYSE:NRP) today reported
fourth quarter and full year 2022 results as follows:
For the Three Months
Ended
For the Year Ended
(In thousands)
(Unaudited)
December 31, 2022
Operating cash flow
$
68,888
$
266,838
Free cash flow (1)
69,414
268,443
Cash flow cushion (last twelve months)
(1)
145,084
Net income
$
63,218
$
268,492
Adjusted EBITDA (1)
75,347
317,247
_____________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
2022 Highlights:
- Generated record free cash flow of $268 million
- Increased regular, quarterly common unit distribution 67% to
$0.75
- Fully repaid all $300 million of outstanding 9.125% Senior
Notes due 2025
- Lowered leverage ratio to 0.5x as of December 31, 2022
- Executed first two subsurface carbon dioxide ("CO2")
sequestration leases with Denbury and Oxy and executed first
geothermal energy lease
- Closed new five-year, $130 million revolving credit
facility
"NRP generated a record $268 million of free cash flow in 2022
driven primarily by strong metallurgical coal prices, lower
interest expense, and solid distributions from our soda ash
investment," stated Craig Nunez, NRP's president & chief
operating officer. "Strong cash flow generation has allowed us to
accelerate our de-leveraging and de-risking plans. In 2022, we
fully repaid all of the $300 million 9.125% Senior Notes due 2025
and established a new five-year revolving bank credit facility that
provides us with greater financial flexibility. We also continue to
focus on redeeming our 12% convertible preferred equity. Early in
2023, one of the preferred holders exercised their right to convert
$47.5 million of the preferred units into NRP common units. After
considering our financial position, liquidity, and comparing the
market value of NRP's common units to our estimate of intrinsic
value, we elected to redeem the units with the payment of $47.5
million of cash instead of issuing NRP common units. After this
transaction, the outstanding liquidation value of our convertible
preferred units was reduced to $202.5 million."
Mr. Nunez continued, "We remain focused on maximizing long-term
free cash flow available to common unitholders and increasing our
financial flexibility. We intend to achieve this by paying off all
permanent debt, redeeming all preferred equity, and settling all
remaining warrants. We also remain focused on becoming a key player
in the transitional energy economy. During the year we made
significant progress toward this goal with the execution of our
first two subsurface carbon sequestration leases and our first
geothermal energy lease, which have the potential to produce
significant cash flow over the long term."
NRP's liquidity was $99.1 million at December 31, 2022,
consisting of $39.1 million of cash and $60.0 million of borrowing
capacity available under its revolving credit facility.
NRP also announced today that the board of directors of its
general partner declared a one-time, special cash distribution of
$2.43 per common unit to be paid on March 21, 2023 to unitholders
of record on March 14, 2023. This special distribution is to help
cover unitholder tax liabilities associated with owning NRP's
common units during 2022. 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 fourth quarter and full year
of 2022 increased $2.5 million and $124.0 million, respectively, as
compared to the prior year periods. Operating cash flow for the
fourth quarter and full year of 2022 increased $0.4 million and
$103.0 million, respectively, as compared to the prior year
periods. Free cash flow for the fourth quarter and full year of
2022 increased $0.5 million and $103.5 million, respectively, as
compared to the prior year periods. These increases were primarily
due to stronger metallurgical coal demand and higher prices in
2022. The fourth quarter of 2022 increases were partially offset by
$13.8 million of cash received and revenue recognized in the fourth
quarter of 2021 from a forestland carbon sequestration transaction.
Approximately 65% of coal royalty revenues and approximately 45% of
coal royalty sales volumes were derived from metallurgical coal in
the fourth quarter of 2022, and approximately 70% of coal royalty
revenues and approximately 45% of coal royalty sales volumes were
derived from metallurgical coal in the full year of 2022.
Metallurgical and thermal coal prices have declined from the
record highs seen in 2022 but remain strong relative to historical
norms. Operators are limited in their ability to increase
production due to ongoing labor shortages, global supply chain
interruptions, and access to capital providing continued support
for pricing.
In addition, NRP continues to explore and identify carbon
neutral revenue sources across its large portfolio of land,
mineral, and timber assets. The types of opportunities include the
sequestration of carbon dioxide underground and in standing
forests, and the generation of electricity using geothermal, solar,
and wind energy. 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
provides additional opportunities to create value in this regard
with minimal capital investment by NRP.
Soda Ash
Soda Ash net income in the fourth quarter and full year of 2022
increased $5.1 million and $37.9 million, respectively, as compared
to the prior year periods primarily due to increased international
sales prices. Operating cash flow and free cash flow in the fourth
quarter and full year of 2022 increased $3.4 million and $33.6
million, respectively, as compared to the prior year periods. The
2022 full year increases were due to Sisecam Wyoming reinstating
its regular quarterly cash distributions beginning in the fourth
quarter of 2021.
Strong international sales at Sisecam Wyoming for the year ended
December 31, 2022, more than offset input cost inflation, supply
chain difficulties, and softening demand in the second half of the
year due to China’s Zero-COVID policy and concerns of slowing
global economic growth.
Corporate and Financing
Corporate and Financing costs in the fourth quarter and full
year of 2022 were flat and increased by $2.4 million, respectively,
as compared to the prior year periods. The full year increase was
primarily due to the loss on early extinguishment of debt
associated with the retirement of the 2025 Senior Notes during 2022
and an increase in incentive compensation resulting from
significantly improved business performance in 2022, partially
offset by lower interest expense as a result of less debt
outstanding. Operating cash flow in the fourth quarter and full
year of 2022 improved $9.8 million and $8.5 million, respectively,
as compared to the prior year periods. Free cash flow in the fourth
quarter and full year of 2022 improved $9.8 million and $8.4
million, respectively, as compared to the prior year periods. These
improvements were primarily due to lower cash paid for interest as
a result of less debt outstanding in 2022.
NRP continues to make great strides in de-levering and
de-risking the partnership. In 2022, NRP fully retired its
outstanding $300 million 9.125% Senior Notes due 2025, aiding in
the sharp decrease in NRP's consolidated leverage ratio to 0.5x at
December 31, 2022 from 2.7x at December 31, 2021.
In February 2023, NRP received a notice from holders of the
partnership's Class A Preferred Units exercising their right to
either convert or redeem, at the election of NRP, an aggregate of
47,499 Class A Preferred Units. NRP chose to redeem the preferred
units for $47.5 million in cash plus any accrued and unpaid
distributions, utilizing cash on hand and borrowings from the
revolving credit facility. Of the originally issued 250,000 Class A
Preferred Units, 202,501 Class A Preferred Units remain
outstanding.
In February 2023, NRP declared and paid a fourth quarter 2022
cash distribution of $0.75 per common unit and a $7.5 million cash
distribution on the preferred units. As previously mentioned, today
NRP declared a one-time, special distribution of $2.43 per common
unit to help cover unitholder tax liabilities associated with
owning NRP's common units during 2022.
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 conference call we suggest registering at minimum 10 minutes
prior to the start of the call. Investors may also listen to the
call via the Investor Relations section of the NRP website at
www.nrplp.com. To access the replay, please visit the Investor
Relations section of NRP’s website.
Withholding Information for Foreign Investors
Concurrent with this announcement, we are providing qualified
notice to brokers and nominees that hold NRP units on behalf of
non-U.S. investors under Treasury Regulation Section 1.1446-4(b)
and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii).
Brokers and nominees should treat one hundred percent (100%) of
NRP's distributions to non-U.S. investors as being attributable to
income that is effectively connected with a United States trade or
business. In addition, brokers and nominees should treat one
hundred percent (100%) of the distribution as being in excess of
cumulative net income for purposes of determining the amount to
withhold. Accordingly, NRP's distributions to non-U.S. investors
are subject to federal income tax withholding at a rate equal to
the sum of the highest applicable rate plus ten percent (10%).
Company Profile
Natural Resource Partners L.P., a master limited partnership
headquartered in Houston, TX, is a diversified natural resource
company that owns, manages and leases a diversified portfolio of
properties in the United States including coal, industrial minerals
and other natural resources, as well as rights to conduct carbon
sequestration and renewable energy activities. NRP also owns an
equity investment in Sisecam Wyoming LLC, one of the world’s
lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at
713-751-7515 or tsammis@nrplp.com. Further information about NRP is
available on the Partnership’s website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements are
based on certain assumptions made by the Partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Partnership. These risks include, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the 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, net income attributable to
non-controlling interest and gain on reserve swap; 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 and distributions
to non-controlling interest. DCF is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. DCF may not be calculated the same for us as for other
companies. 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, cash flow used in acquisition costs
classified as investing or financing activities and distributions
to non-controlling interest. 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.
"Leverage ratio" represents the outstanding principal of
NRP's debt at the end of the period divided by the last twelve
months' Adjusted EBITDA as defined above. NRP believes that
leverage ratio is a useful measure to management and investors to
evaluate and monitor the indebtedness of NRP relative to its
ability to generate income to service such debt and in
understanding trends in NRP’s overall financial condition. Leverage
ratio may not be calculated the same for us as for other companies
and is not a substitute for, and should not be used in conjunction
with, GAAP financial ratios.
-Financial Tables and Reconciliation of
Non-GAAP Measures Follow-
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Comprehensive Income
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In thousands,
except per unit data)
2022
2021
2022
2022
2021
Revenues and other income
Royalty and other mineral rights
$
75,218
$
70,774
$
81,379
$
307,013
$
185,196
Transportation and processing services
5,695
2,507
5,969
21,072
9,052
Equity in earnings of Sisecam Wyoming
15,759
10,625
14,556
59,795
21,871
Gain on asset sales and disposals
383
2
354
1,082
245
Total revenues and other income
$
97,055
$
83,908
$
102,258
$
388,962
$
216,364
Operating expenses
Operating and maintenance expenses
$
8,914
$
7,973
$
7,898
$
34,903
$
27,049
Depreciation, depletion and
amortization
5,954
3,930
6,850
22,519
19,075
General and administrative expenses
7,815
5,810
4,518
21,852
17,360
Asset impairments
3,583
986
812
4,457
5,102
Total operating expenses
$
26,266
$
18,699
$
20,078
$
83,731
$
68,586
Income from operations
$
70,789
$
65,209
$
82,180
$
305,231
$
147,778
Other expenses, net
Interest expense, net
$
(3,638
)
$
(9,568
)
$
(5,141
)
$
(26,274
)
$
(38,876
)
Loss on extinguishment of debt
(3,933
)
—
(2,484
)
(10,465
)
—
Total other expenses, net
$
(7,571
)
$
(9,568
)
$
(7,625
)
$
(36,739
)
$
(38,876
)
Net income
$
63,218
$
55,641
$
74,555
$
268,492
$
108,902
Less: income attributable to preferred
unitholders
(7,500
)
(8,079
)
(7,500
)
(30,000
)
(31,609
)
Net income attributable to common
unitholders and the general partner
$
55,718
$
47,562
$
67,055
$
238,492
$
77,293
Net income attributable to common
unitholders
$
54,603
$
46,611
$
65,714
$
233,722
$
75,747
Net income attributable to the general
partner
1,115
951
1,341
4,770
1,546
Net income per common unit
Basic
$
4.37
$
3.77
$
5.25
$
18.72
$
6.14
Diluted
3.13
2.42
3.71
13.39
4.81
Net income
$
63,218
$
55,641
$
74,555
$
268,492
$
108,902
Comprehensive income (loss) from
unconsolidated investment and other
16,685
(4,580
)
289
15,506
2,889
Comprehensive income
$
79,903
$
51,061
$
74,844
$
283,998
$
111,791
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Cash Flows
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In
thousands)
2022
2021
2022
2022
2021
Cash flows from operating activities
Net income
$
63,218
$
55,641
$
74,555
$
268,492
$
108,902
Adjustments to reconcile net income to net
cash provided by operating activities of continuing operations:
Depreciation, depletion and
amortization
5,954
3,930
6,850
22,519
19,075
Distributions from unconsolidated
investment
10,780
7,350
10,339
44,835
11,270
Equity earnings from unconsolidated
investment
(15,759
)
(10,625
)
(14,556
)
(59,795
)
(21,871
)
Gain on asset sales and disposals
(383
)
(2
)
(354
)
(1,082
)
(245
)
Loss on extinguishment of debt
3,933
—
2,484
10,465
—
Asset impairments
3,583
986
812
4,457
5,102
Bad debt expense
421
857
1
1,062
2,572
Unit-based compensation expense
1,557
1,202
1,429
5,773
4,039
Amortization of debt issuance costs and
other
523
366
215
2,410
2,265
Change in operating assets and
liabilities:
Accounts receivable
(8,553
)
(2,083
)
2,494
(18,671
)
(14,415
)
Accounts payable
(186
)
481
210
37
570
Accrued liabilities
5,766
3,859
278
935
3,020
Accrued interest
(3,238
)
(7,472
)
3,177
(224
)
(501
)
Deferred revenue
1,670
2,428
(7,519
)
(15,424
)
307
Other items, net
(398
)
(1,757
)
2,081
1,049
1,714
Net cash provided by operating
activities
$
68,888
$
55,161
$
82,496
$
266,838
$
121,804
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
384
$
—
$
353
$
1,083
$
249
Return of long-term contract
receivable
585
541
575
1,723
2,163
Capital expenditures
(59
)
—
(59
)
(118
)
—
Net cash provided by investing
activities
$
910
$
541
$
869
$
2,688
$
2,412
Cash flows from financing activities
Debt borrowings
$
70,000
$
—
$
—
$
70,000
$
—
Debt repayments
(141,731
)
(20,335
)
(60,494
)
(339,396
)
(39,396
)
Distributions to common unitholders and
the general partner
(9,571
)
(5,672
)
(9,571
)
(34,384
)
(22,645
)
Distributions to preferred unitholders
(7,500
)
(3,980
)
(7,500
)
(30,000
)
(15,571
)
Redemption of preferred units
paid-in-kind
—
—
—
(19,579
)
—
Warrant settlement
—
(9,183
)
—
—
(9,183
)
Acquisition of non-controlling interest in
BRP
—
—
—
—
(1,000
)
Other items, net
(2,842
)
(1
)
(4,219
)
(12,596
)
(691
)
Net cash used in financing activities
$
(91,644
)
$
(39,171
)
$
(81,784
)
$
(365,955
)
$
(88,486
)
Net increase (decrease) in cash and cash
equivalents
$
(21,846
)
$
16,531
$
1,581
$
(96,429
)
$
35,730
Cash and cash equivalents at beginning of
period
60,937
118,989
59,356
135,520
99,790
Cash and cash equivalents at end of
period
$
39,091
$
135,520
$
60,937
$
39,091
$
135,520
Supplemental cash flow information:
Cash paid for interest
$
6,764
$
16,549
$
1,729
$
25,265
$
37,378
Non-cash investing and financing
activities:
Plant, equipment, mineral rights and other
funded with accounts payable or accrued liabilities
$
—
$
—
$
—
$
—
$
—
Preferred unit distributions
paid-in-kind
—
3,980
—
—
15,571
Natural Resource Partners
L.P.
Financial Tables
Consolidated Balance
Sheets
December 31,
(In thousands,
except unit data)
2022
2021
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
39,091
$
135,520
Accounts receivable, net
42,701
24,538
Other current assets, net
1,822
2,723
Total current assets
$
83,614
$
162,781
Land
24,008
24,008
Mineral rights, net
412,312
437,697
Intangible assets, net
14,713
16,130
Equity in unconsolidated investment
306,470
276,004
Long-term contract receivable, net
28,946
31,371
Other long-term assets, net
7,068
5,832
Total assets
$
877,131
$
953,823
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,992
$
1,956
Accrued liabilities
11,916
10,297
Accrued interest
989
1,213
Current portion of deferred revenue
6,256
11,817
Current portion of long-term debt, net
39,076
39,102
Total current liabilities
$
60,229
$
64,385
Deferred revenue
40,181
50,045
Long-term debt, net
129,205
394,443
Other non-current liabilities
5,472
5,018
Total liabilities
$
235,087
$
513,891
Commitments and contingencies
Class A Convertible Preferred Units
(250,000 and 269,321 units issued and outstanding at December 31,
2022 and 2021, respectively, at $1,000 par value per unit;
liquidation preference of $1,850 per unit at December 31, 2022 and
2021)
$
164,587
$
183,908
Partners’ capital
Common unitholders’ interest (12,505,996
and 12,351,306 units issued and outstanding at December 31, 2022
and 2021, respectively)
$
404,799
$
203,062
General partner’s interest
5,977
1,787
Warrant holders' interest
47,964
47,964
Accumulated other comprehensive income
18,717
3,211
Total partners’ capital
$
477,457
$
256,024
Total liabilities and partners'
capital
$
877,131
$
953,823
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Common Unitholders
General
Warrant
Accumulated Other
Comprehensive
Total 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)
—
106,724
2,178
—
—
108,902
Distributions to common unitholders and
the general partner
—
(22,192
)
(453
)
—
—
(22,645
)
Distributions to preferred unitholders
—
(30,519
)
(623
)
—
—
(31,142
)
Issuance of unit-based awards
90
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
2,647
—
—
—
2,647
Capital contribution
—
—
32
—
—
32
Warrant settlement
—
9,475
194
(18,852
)
—
(9,183
)
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,889
2,889
Balance at December 31, 2021
$
12,351
$
203,062
$
1,787
$
47,964
$
3,211
$
256,024
Net income (2)
—
263,122
5,370
—
—
268,492
Distributions to common unitholders and
the general partner
—
(33,697
)
(687
)
—
—
(34,384
)
Distributions to preferred unitholders
—
(29,653
)
(605
)
—
—
(30,258
)
Issuance of unit-based awards
155
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
1,965
—
—
—
1,965
Capital contribution
—
—
112
—
—
112
Warrant settlement
—
—
—
—
—
—
Comprehensive income from unconsolidated
investment and other
—
—
—
—
15,506
15,506
Balance at December 31, 2022
12,506
$
404,799
$
5,977
$
47,964
$
18,717
$
477,457
_____________ (1)
Net income includes $31.6 million of
income attributable to preferred unitholders that accumulated
during the period, of which $31.0 million is allocated to the
common unitholders and $0.6 million is allocated to the general
partner.
(2)
Net income includes $30.0 million of
income attributable to preferred unitholders that accumulated
during the period, of which $29.4 million is allocated to the
common unitholders and $0.6 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
December 31, 2022 and 2021 and September 30, 2022:
Operating Segments
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Three Months Ended December 31,
2022
Revenues
$
80,913
$
15,759
$
—
$
96,672
Gain on asset sales and disposals
383
—
—
383
Total revenues and other income
$
81,296
$
15,759
$
—
$
97,055
Asset impairments
$
3,583
$
—
$
—
$
3,583
Net income (loss)
$
62,900
$
15,704
$
(15,386
)
$
63,218
Adjusted EBITDA (1)
$
72,437
$
10,725
$
(7,815
)
$
75,347
Cash flow provided by (used in) continuing
operations:
Operating activities
$
68,332
$
10,738
$
(10,182
)
$
68,888
Investing activities
$
969
$
—
$
(59
)
$
910
Financing activities
$
—
$
—
$
(91,644
)
$
(91,644
)
Distributable cash flow (1)
$
69,301
$
10,738
$
(10,241
)
$
69,798
Free cash flow (1)
$
68,917
$
10,738
$
(10,241
)
$
69,414
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
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
_____________
(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 year ended December
31, 2022 and 2021:
Operating Segments
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Year Ended December 31, 2022
Revenues
$
328,085
$
59,795
$
—
$
387,880
Gain on asset sales and disposals
1,082
—
—
$
1,082
Total revenues and other income
$
329,167
$
59,795
$
—
$
388,962
Asset impairments
$
4,457
$
—
$
—
$
4,457
Net income (loss)
$
267,448
$
59,635
$
(58,591
)
$
268,492
Adjusted EBITDA (1)
$
294,424
$
44,675
$
(21,852
)
$
317,247
Cash flow provided by (used in) continuing
operations:
Operating activities
$
262,807
$
44,672
$
(40,641
)
$
266,838
Investing activities
$
2,806
$
—
$
(118
)
$
2,688
Financing activities
$
(614
)
$
—
$
(365,341
)
$
(365,955
)
Distributable cash flow (1)
$
265,613
$
44,672
$
(40,759
)
$
269,526
Free cash flow (1)
$
264,530
$
44,672
$
(40,759
)
$
268,443
For the Year Ended December 31, 2021
Revenues
$
194,248
$
21,871
$
—
$
216,119
Gain on asset sales and disposals
245
—
—
245
Total revenues and other income
$
194,493
$
21,871
$
—
$
216,364
Asset impairments
$
5,102
$
—
$
—
$
5,102
Net income (loss)
$
143,412
$
21,702
$
(56,212
)
$
108,902
Adjusted EBITDA (1)
$
167,613
$
11,101
$
(17,360
)
$
161,354
Cash flow provided by (used in) continuing
operations:
Operating activities
$
159,845
$
11,106
$
(49,147
)
$
121,804
Investing activities
$
2,412
$
—
$
—
$
2,412
Financing activities
$
(1,132
)
$
—
$
(87,354
)
$
(88,486
)
Distributable cash flow (1)
$
162,257
$
11,106
$
(49,147
)
$
124,216
Free cash flow (1)
$
161,008
$
11,106
$
(49,147
)
$
122,967
_____________
(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 Year Ended
December 31,
September 30,
December 31,
(In thousands,
except per ton data)
2022
2021
2022
2022
2021
Coal sales volumes (tons)
Appalachia
Northern
436
388
440
1,696
1,335
Central
3,408
3,455
3,503
13,646
12,279
Southern
613
513
498
1,784
1,571
Total Appalachia
4,457
4,356
4,441
17,126
15,185
Illinois Basin
2,740
1,401
3,490
11,135
9,388
Northern Powder River Basin
1,516
860
835
4,288
3,151
Gulf Coast
61
42
188
385
55
Total coal sales volumes
8,774
6,659
8,954
32,934
27,779
Coal royalty revenue per ton
Appalachia
Northern
$
6.63
$
8.81
$
6.74
$
8.75
$
6.51
Central
9.33
7.77
9.04
10.47
5.71
Southern
11.99
7.73
9.78
13.50
9.14
Illinois Basin
3.11
2.05
2.57
2.50
2.12
Northern Powder River Basin
3.75
3.41
4.56
4.07
3.54
Gulf Coast
0.59
0.62
0.59
0.58
0.60
Combined average coal royalty revenue per
ton
6.42
6.01
5.85
6.90
4.47
Coal royalty revenues
Appalachia
Northern
$
2,890
$
3,419
$
2,965
$
14,836
$
8,691
Central
31,809
26,841
31,680
142,930
70,149
Southern
7,351
3,965
4,872
24,076
14,355
Total Appalachia
42,050
34,225
39,517
181,842
93,195
Illinois Basin
8,525
2,873
8,967
27,856
19,917
Northern Powder River Basin
5,686
2,929
3,805
17,437
11,151
Gulf Coast
36
26
111
223
33
Unadjusted coal royalty revenues
56,297
40,053
52,400
227,358
124,296
Coal royalty adjustment for minimum
leases
(116
)
(2,059
)
(19
)
(402
)
(20,207
)
Total coal royalty revenues
$
56,181
$
37,994
$
52,381
$
226,956
$
104,089
Other revenues
Production lease minimum revenues
$
2,312
$
4,028
$
1,885
$
5,854
$
14,269
Minimum lease straight-line revenues
4,557
4,791
4,778
18,792
20,564
Carbon neutral initiative revenues
—
13,790
8,600
8,600
13,790
Wheelage revenues
2,888
4,476
2,977
13,961
10,065
Property tax revenues
1,351
1,506
1,360
5,878
6,028
Coal overriding royalty revenues
1,127
775
1,367
3,434
4,367
Lease amendment revenues
751
1,537
759
3,201
4,696
Aggregates royalty revenues
608
550
884
3,299
1,889
Oil and gas royalty revenues
5,271
1,086
6,170
16,161
4,506
Other revenues
172
241
218
877
933
Total other revenues
$
19,037
$
32,780
$
28,998
$
80,057
$
81,107
Royalty and other mineral rights
$
75,218
$
70,774
$
81,379
$
307,013
$
185,196
Transportation and processing services
revenues
5,695
2,507
5,969
21,072
9,052
Gain on asset sales and disposals
383
2
354
1,082
245
Total Mineral Rights segment revenues and
other income
$
81,296
$
73,283
$
87,702
$
329,167
$
194,493
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Adjusted EBITDA
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Three Months Ended December 31,
2022
Net income (loss)
$
62,900
$
15,704
$
(15,386
)
$
63,218
Less: equity earnings from unconsolidated
investment
—
(15,759
)
—
(15,759
)
Add: total distributions from
unconsolidated investment
—
10,780
—
10,780
Add: interest expense, net
—
—
3,638
3,638
Add: loss on extinguishment of debt
—
—
3,933
3,933
Add: depreciation, depletion and
amortization
5,954
—
—
5,954
Add: asset impairments
3,583
—
—
3,583
Adjusted EBITDA
$
72,437
$
10,725
$
(7,815
)
$
75,347
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: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
3,930
—
—
3,930
Add: asset impairments
986
—
—
986
Adjusted EBITDA
$
65,348
$
7,312
$
(5,810
)
$
66,850
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
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Adjusted EBITDA
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Year Ended December 31,
2022
Net income (loss)
$
267,448
$
59,635
$
(58,591
)
$
268,492
Less: equity earnings from unconsolidated
investment
—
(59,795
)
—
(59,795
)
Add: total distributions from
unconsolidated investment
—
44,835
—
44,835
Add: interest expense, net
—
—
26,274
26,274
Add: loss on extinguishment of debt
—
—
10,465
10,465
Add: depreciation, depletion and
amortization
22,519
—
—
22,519
Add: asset impairments
4,457
—
—
4,457
Adjusted EBITDA
$
294,424
$
44,675
$
(21,852
)
$
317,247
For the Year Ended December 31,
2021
Net income (loss)
$
143,412
$
21,702
$
(56,212
)
$
108,902
Less: equity earnings from unconsolidated
investment
—
(21,871
)
—
(21,871
)
Add: total distributions from
unconsolidated investment
—
11,270
—
11,270
Add: interest expense, net
24
—
38,852
38,876
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
19,075
—
—
19,075
Add: asset impairments
5,102
—
—
5,102
Adjusted EBITDA
$
167,613
$
11,101
$
(17,360
)
$
161,354
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 December 31,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
68,332
$
10,738
$
(10,182
)
$
68,888
Add: proceeds from asset sales and
disposals
384
—
—
384
Add: return of long-term contract
receivable
585
—
—
585
Less: maintenance capital expenditures
—
—
(59
)
(59
)
Distributable cash flow
$
69,301
$
10,738
$
(10,241
)
$
69,798
Less: proceeds from asset sales and
disposals
(384
)
—
—
(384
)
Free cash flow
$
68,917
$
10,738
$
(10,241
)
$
69,414
Net cash provided by investing
activities
$
969
$
—
$
(59
)
$
910
Net cash used in financing activities
—
—
(91,644
)
(91,644
)
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
Less: maintenance capital expenditures
—
—
—
—
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
)
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 investing
activities
$
928
$
—
$
(59
)
$
869
Net cash used in financing activities
—
—
(81,784
)
(81,784
)
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 Year Ended December 31,
2022
Net cash provided by (used in) operating
activities of continuing operations
$
262,807
$
44,672
$
(40,641
)
$
266,838
Add: proceeds from asset sales and
disposals
1,083
—
—
1,083
Add: return of long-term contract
receivable
1,723
—
—
1,723
Less: maintenance capital expenditures
—
—
(118
)
(118
)
Distributable cash flow
$
265,613
$
44,672
$
(40,759
)
$
269,526
Less: proceeds from asset sales and
disposals
(1,083
)
—
—
(1,083
)
Less: acquisition costs
—
—
—
—
Free cash flow
$
264,530
$
44,672
$
(40,759
)
$
268,443
Net cash provided by investing
activities
$
2,806
$
—
$
(118
)
$
2,688
Net cash used in financing activities
(614
)
—
(365,341
)
(365,955
)
For the Year Ended December 31,
2021
Net cash provided by (used in) operating
activities of continuing operations
$
159,845
$
11,106
$
(49,147
)
$
121,804
Add: proceeds from asset sales and
disposals
249
—
—
249
Add: return of long-term contract
receivable
2,163
—
—
2,163
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
162,257
$
11,106
$
(49,147
)
$
124,216
Less: proceeds from asset sales and
disposals
(249
)
—
—
(249
)
Less: acquisition costs
(1,000
)
—
—
(1,000
)
Free cash flow
$
161,008
$
11,106
$
(49,147
)
$
122,967
Net cash provided by investing
activities
$
2,412
$
—
$
—
$
2,412
Net cash used in financing activities
(1,132
)
—
(87,354
)
(88,486
)
Cash Flow Cushion
For the Year Ended December
31,
(In
thousands)
2022
2021
Free cash flow
$
268,443
$
122,967
Less: mandatory Opco debt repayments
(39,396
)
(39,396
)
Less: preferred unit distributions and
redemption of PIK units
(49,579
)
(15,571
)
Less: common unit distributions
(34,384
)
(22,645
)
Less: warrant cash settlement
—
(9,183
)
Cash flow cushion
$
145,084
$
36,172
Leverage Ratio
(In
thousands)
For the Year Ended December
31, 2022
Adjusted EBITDA
$
317,247
Debt—at December 31, 2022
$
169,087
Leverage Ratio
0.5x
(In
thousands)
For the Year Ended December
31, 2021
Adjusted EBITDA
$
161,354
Debt—at December 31, 2021
$
438,484
Leverage Ratio
2.7x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230302005094/en/
Tiffany Sammis, 713-751-7515 tsammis@nrplp.com
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