Natural Resource Partners L.P. (NYSE:NRP) today reported
second quarter 2023 results as follows:
For the Three Months
Ended
Last Twelve Months
Ended
(In thousands)
(Unaudited)
June 30, 2023
Operating cash flow
$
81,350
$
305,634
Free cash flow (1)
81,952
307,874
Cash flow cushion (last twelve months)
(1)
39,953
Net income
$
70,334
$
287,382
Adjusted EBITDA (1)
83,059
321,768
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Highlights:
- Generated $82 million of free cash flow
- Paid first quarter 2023 common unit distribution of $0.75
per unit
- Redeemed $81 million of preferred units at par with
cash
- Leverage ratio of 0.6x as of June 30, 2023
- Declares second quarter 2023 common unit distribution of
$0.75
"NRP generated $82 million of free cash flow in the second
quarter driven by a solid performance from our mineral rights
assets along with strong sales prices and distributions from our
soda ash investment," said Craig Nunez, NRP's president and chief
operating officer. "I am also pleased to report that during the
second quarter we redeemed $81 million of preferred units at par
with cash, lowering the outstanding par value of preferred equity
to $122 million. We remain steadfast in our strategy to pay off our
debt and redeem our preferred equity while maintaining
distributions to our common unitholders. We believe this is the
right strategy to maximize unitholder value and advantageously
position the business for the long term."
NRP announced today that the board of directors of its general
partner declared a second quarter 2023 cash distribution of $0.75
per common unit to be paid on August 23, 2023, to unitholders of
record on August 16, 2023. In addition, the board declared a $3.65
million cash distribution on NRP's 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 $62.7 million at June 30, 2023, consisting
of $10.7 million of cash and $52.0 million of borrowing capacity
available under its revolving credit facility.
Segment Performance
Mineral Rights
Mineral Rights net income, operating cash flow, and free cash
flow for the second quarter of 2023 decreased $16.9 million, $15.3
million, and $15.3 million, respectively, as compared to the prior
year period primarily due to decreased metallurgical coal sales
prices in the second quarter of 2023. Approximately 70% of coal
royalty revenues and approximately 55% of coal royalty sales
volumes were derived from metallurgical coal in the second quarter
of 2023.
While metallurgical and thermal coal prices have decreased from
the beginning of the year and decreased significantly from the
record highs seen in 2022, they both remain strong relative to
historical norms. Transportation and logistics challenges, limited
access to capital, and labor shortages limit operators' ability to
increase production and sales which should provide continued price
support.
NRP continues to explore opportunities for carbon neutral
revenue across its large portfolio of land, mineral, and timber
assets, including the sequestration of carbon dioxide underground
and in standing forests, and the generation of electricity using
geothermal, solar, and wind energy.
Soda Ash
Soda Ash net income in the second quarter of 2023 increased
$12.3 million as compared to the prior year period primarily due to
higher sales prices driven by strong demand in domestic and
international markets, partially offset by lower soda ash
production and sales volumes. Operating cash flow and free cash
flow in the second quarter of 2023 improved $21.9 million as
compared to the prior year period due to the early timing of
distributions received from Sisecam Wyoming and a higher
distribution amount driven by Sisecam Wyoming's strong operating
performance in the second quarter of 2023.
After starting the year at historically high levels, global soda
ash prices have fallen throughout the first half of the year. New
supply from China entering the market in the second half of the
year is expected to continue to put downward pressure on
international soda ash pricing. However, NRP expects Sisecam
Wyoming's domestic soda ash sales prices to remain elevated versus
the spot market in the second half of the year as a result of
negotiated 2023 domestic sales contracts entered into at the end of
2022.
Corporate and Financing
Corporate and Financing costs in the second quarter of 2023
decreased $8.1 million as compared to the prior year period
primarily due to lower interest expense resulting from less debt
outstanding. Operating cash flow and free cash flow in the second
quarter of 2023 improved $11.6 million as compared to the prior
year period primarily due to lower cash paid for interest as a
result of the retirement of the 9.125% Senior Notes in 2022.
NRP retired an aggregate of 80,834 Class A Preferred Units in
the second quarter of 2023, saving NRP $9.7 million annually in
preferred unit cash distributions. Of the originally issued 250,000
Class A Preferred Units, 121,667 Class A Preferred Units remain
outstanding.
In May 2023, NRP declared and paid a first quarter 2023 cash
distribution of $0.75 per common unit and a $6.1 million cash
distribution on the preferred units. Today, NRP declared a second
quarter 2023 cash distribution of $0.75 per common unit and a $3.65
million cash distribution on its outstanding preferred units.
NRP's consolidated leverage ratio was 0.6x at June 30, 2023.
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/mQRabxXg. 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; 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 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 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,
redemption of preferred units, 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 NRP 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 Six Months
Ended
June 30,
March 31,
June 30,
(In thousands,
except per unit data)
2023
2022
2023
2023
2022
Revenues and other income
Royalty and other mineral rights
$
61,007
$
79,333
$
76,271
$
137,278
$
150,416
Transportation and processing services
3,270
5,612
3,598
6,868
9,408
Equity in earnings of Sisecam Wyoming
26,978
14,643
19,254
46,232
29,480
Gain on asset sales and disposals
5
345
96
101
345
Total revenues and other income
$
91,260
$
99,933
$
99,219
$
190,479
$
189,649
Operating expenses
Operating and maintenance expenses
$
7,930
$
10,015
$
7,163
$
15,093
$
18,091
Depreciation, depletion and
amortization
3,792
5,847
4,083
7,875
9,715
General and administrative expenses
5,643
5,052
5,845
11,488
9,519
Asset impairments
69
43
—
69
62
Total operating expenses
$
17,434
$
20,957
$
17,091
$
34,525
$
37,387
Income from operations
$
73,826
$
78,976
$
82,128
$
155,954
$
152,262
Other expenses, net
Interest expense, net
$
(3,492
)
$
(8,108
)
$
(2,853
)
$
(6,345
)
$
(17,495
)
Loss on extinguishment of debt
—
(4,048
)
—
—
(4,048
)
Total other expenses, net
$
(3,492
)
$
(12,156
)
$
(2,853
)
$
(6,345
)
$
(21,543
)
Net income
$
70,334
$
66,820
$
79,275
$
149,609
$
130,719
Less: income attributable to preferred
unitholders
(4,971
)
(7,500
)
(6,661
)
(11,632
)
(15,000
)
Less: redemption of preferred units
(27,618
)
—
(16,228
)
(43,846
)
—
Net income attributable to common
unitholders and the general partner
$
37,745
$
59,320
$
56,386
$
94,131
$
115,719
Net income attributable to common
unitholders
$
36,990
$
58,134
$
55,258
$
92,248
$
113,405
Net income attributable to the general
partner
755
1,186
1,128
1,883
2,314
Net income per common unit
Basic
$
2.93
$
4.65
$
4.40
$
7.32
$
9.10
Diluted
2.49
3.29
3.44
5.96
6.50
Net income
$
70,334
$
66,820
$
79,275
$
149,609
$
130,719
Comprehensive income (loss) from
unconsolidated investment and other
911
(4,013
)
(19,583
)
(18,672
)
(1,468
)
Comprehensive income
$
71,245
$
62,807
$
59,692
$
130,937
$
129,251
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)
2023
2022
2023
2023
2022
Cash flows from operating activities
Net income
$
70,334
$
66,820
$
79,275
$
149,609
$
130,719
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and
amortization
3,792
5,847
4,083
7,875
9,715
Distributions from unconsolidated
investment
32,350
10,486
10,780
43,130
23,716
Equity earnings from unconsolidated
investment
(26,978
)
(14,643
)
(19,254
)
(46,232
)
(29,480
)
Gain on asset sales and disposals
(5
)
(345
)
(96
)
(101
)
(345
)
Loss on extinguishment of debt
—
4,048
—
—
4,048
Asset impairments
69
43
—
69
62
Bad debt expense
(198
)
(388
)
(610
)
(808
)
640
Unit-based compensation expense
2,646
1,339
2,491
5,137
2,787
Amortization of debt issuance costs and
other
541
1,297
25
566
1,672
Change in operating assets and
liabilities:
Accounts receivable
(361
)
(5,033
)
7,061
6,700
(12,612
)
Accounts payable
72
73
(541
)
(469
)
13
Accrued liabilities
2,019
2,047
(8,805
)
(6,786
)
(5,109
)
Accrued interest
(627
)
(7,413
)
263
(364
)
(163
)
Deferred revenue
(2,646
)
(2,259
)
(154
)
(2,800
)
(9,575
)
Other items, net
342
1,204
(1,618
)
(1,276
)
(634
)
Net cash provided by operating
activities
$
81,350
$
63,123
$
72,900
$
154,250
$
115,454
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
5
$
346
$
101
$
106
$
346
Return of long-term contract
receivable
610
563
598
1,208
563
Capital expenditures
(8
)
—
(2
)
(10
)
—
Net cash provided by investing
activities
$
607
$
909
$
697
$
1,304
$
909
Cash flows from financing activities
Debt borrowings
$
70,834
$
—
$
94,200
$
165,034
$
—
Debt repayments
(61,365
)
(120,474
)
(89,696
)
(151,061
)
(137,171
)
Distributions to common unitholders and
the general partner
(9,669
)
(9,570
)
(40,900
)
(50,569
)
(15,242
)
Distributions to preferred unitholders
(7,396
)
(7,500
)
(8,086
)
(15,482
)
(15,258
)
Redemption of preferred units
(80,834
)
—
(47,499
)
(128,333
)
—
Redemption of preferred units
paid-in-kind
—
—
—
—
(19,321
)
Other items, net
(452
)
(2,722
)
(3,052
)
(3,504
)
(5,535
)
Net cash used in financing activities
$
(88,882
)
$
(140,266
)
$
(95,033
)
$
(183,915
)
$
(192,527
)
Net decrease in cash and cash
equivalents
$
(6,925
)
$
(76,234
)
$
(21,436
)
$
(28,361
)
$
(76,164
)
Cash and cash equivalents at beginning of
period
17,655
135,590
39,091
39,091
135,520
Cash and cash equivalents at end of
period
$
10,730
$
59,356
$
17,655
$
10,730
$
59,356
Supplemental cash flow information:
Cash paid for interest
$
3,960
$
15,128
$
2,474
$
6,434
$
16,772
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Balance
Sheets
June 30,
December 31,
2023
2022
(In thousands,
except unit data)
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
10,730
$
39,091
Accounts receivable, net
37,120
42,701
Other current assets, net
2,865
1,822
Total current assets
$
50,715
$
83,614
Land
24,008
24,008
Mineral rights, net
404,741
412,312
Intangible assets, net
14,432
14,713
Equity in unconsolidated investment
290,900
306,470
Long-term contract receivable, net
27,659
28,946
Other long-term assets, net
7,804
7,068
Total assets
$
820,259
$
877,131
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,524
$
1,992
Accrued liabilities
5,715
11,916
Accrued interest
625
989
Current portion of deferred revenue
6,823
6,256
Current portion of long-term debt, net
36,743
39,076
Total current liabilities
$
51,430
$
60,229
Deferred revenue
36,815
40,181
Long-term debt, net
145,693
129,205
Other non-current liabilities
6,462
5,472
Total liabilities
$
240,400
$
235,087
Commitments and contingencies
Class A Convertible Preferred Units
(121,667 and 250,000 units issued and outstanding at June 30, 2023
and December 31, 2022, respectively, at $1,000 par value per unit;
liquidation preference of $1,850 per unit at June 30, 2023 and
December 31, 2022)
$
80,099
$
164,587
Partners’ capital
Common unitholders’ interest (12,634,642
and 12,505,996 units issued and outstanding at June 30, 2023 and
December 31, 2022, respectively)
$
444,838
$
404,799
General partner’s interest
6,913
5,977
Warrant holders’ interest
47,964
47,964
Accumulated other comprehensive income
45
18,717
Total partners’ capital
$
499,760
$
477,457
Total liabilities and partners'
capital
$
820,259
$
877,131
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 (Loss)
Capital
Balance at December 31, 2022
12,506
$
404,799
$
5,977
$
47,964
$
18,717
$
477,457
Net income (1)
—
77,690
1,585
—
—
79,275
Redemption of preferred units
—
(15,904
)
(324
)
—
—
(16,228
)
Distributions to common unitholders and
the general partner
—
(40,082
)
(818
)
—
—
(40,900
)
Distributions to preferred unitholders
—
(7,924
)
(162
)
—
—
(8,086
)
Issuance of unit-based awards
129
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
(1,178
)
—
—
—
(1,178
)
Capital contribution
—
—
142
—
—
142
Comprehensive loss from unconsolidated
investment and other
—
—
—
—
(19,583
)
(19,583
)
Balance at March 31, 2023
12,635
$
417,401
$
6,400
$
47,964
$
(866
)
$
470,899
Net income (2)
—
68,927
1,407
—
—
70,334
Redemption of preferred units
—
(27,065
)
(553
)
—
—
(27,618
)
Distributions to common unitholders and
the general partner
—
(9,476
)
(193
)
—
—
(9,669
)
Distributions to preferred unitholders
—
(7,248
)
(148
)
—
—
(7,396
)
Unit-based awards amortization and
vesting
—
2,299
—
—
—
2,299
Comprehensive income from unconsolidated
investment and other
—
—
—
—
911
911
Balance at June 30, 2023
12,635
$
444,838
$
6,913
$
47,964
$
45
$
499,760
(1)
Net income includes $6.7 million of income
attributable to preferred unitholders that accumulated during the
period, of which $6.5 million is allocated to the common
unitholders and $0.1 million is allocated to the general
partner.
(2)
Net income includes $5.0 million of income
attributable to preferred unitholders that accumulated during the
period, of which $4.9 million is allocated to the common
unitholders and $0.1 million is allocated to the general
partner.
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
(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)
The following table presents NRP's
unaudited business results by segment for the three months ended
June 30, 2023 and 2022 and March 31, 2023:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Three Months Ended June 30,
2023
Revenues
$
64,277
$
26,978
$
—
$
91,255
Gain on asset sales and disposals
5
—
—
5
Total revenues and other income
$
64,282
$
26,978
$
—
$
91,260
Asset impairments
$
69
$
—
$
—
$
69
Net income (loss)
$
52,510
$
26,964
$
(9,140
)
$
70,334
Adjusted EBITDA (1)
$
56,366
$
32,336
$
(5,643
)
$
83,059
Cash flow provided by (used in) continuing
operations:
Operating activities
$
55,040
$
32,326
$
(6,016
)
$
81,350
Investing activities
$
615
$
—
$
(8
)
$
607
Financing activities
$
—
$
—
$
(88,882
)
$
(88,882
)
Distributable cash flow (1)
$
55,655
$
32,326
$
(6,024
)
$
81,957
Free cash flow (1)
$
55,650
$
32,326
$
(6,024
)
$
81,952
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 March 31,
2023
Revenues
$
79,869
$
19,254
$
—
$
99,123
Gain on asset sales and disposals
96
—
—
96
Total revenues and other income
$
79,965
$
19,254
$
—
$
99,219
Asset impairments
$
—
$
—
$
—
$
—
Net income (loss)
$
68,881
$
19,096
$
(8,702
)
$
79,275
Adjusted EBITDA (1)
$
72,960
$
10,622
$
(5,845
)
$
77,737
Cash flow provided by (used in) continuing
operations:
Operating activities
$
73,858
$
10,617
$
(11,575
)
$
72,900
Investing activities
$
699
$
—
$
(2
)
$
697
Financing activities
$
(583
)
$
—
$
(94,450
)
$
(95,033
)
Distributable cash flow (1)
$
74,557
$
10,617
$
(11,577
)
$
73,597
Free cash flow (1)
$
74,456
$
10,617
$
(11,577
)
$
73,496
(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, 2023 and 2022:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Six Months Ended June 30,
2023
Revenues
$
144,146
$
46,232
$
—
$
190,378
Gain on asset sales and disposals
101
—
—
101
Total revenues and other income
$
144,247
$
46,232
$
—
$
190,479
Asset impairments
$
69
$
—
$
—
$
69
Net income (loss)
$
121,391
$
46,060
$
(17,842
)
$
149,609
Adjusted EBITDA (1)
$
129,326
$
42,958
$
(11,488
)
$
160,796
Cash flow provided by (used in) continuing
operations:
Operating activities
$
128,898
$
42,943
$
(17,591
)
$
154,250
Investing activities
$
1,314
$
—
$
(10
)
$
1,304
Financing activities
$
(583
)
$
—
$
(183,332
)
$
(183,915
)
Distributable cash flow (1)
$
130,212
$
42,943
$
(17,601
)
$
155,554
Free cash flow (1)
$
130,106
$
42,943
$
(17,601
)
$
155,448
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
(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)
2023
2022
2023
2023
2022
Coal sales volumes (tons)
Appalachia
Northern
390
392
379
769
820
Central
3,352
3,484
3,609
6,961
6,735
Southern
693
312
582
1,275
673
Total Appalachia
4,435
4,188
4,570
9,005
8,228
Illinois Basin
1,631
3,403
1,310
2,941
4,905
Northern Powder River Basin
881
699
1,085
1,966
1,937
Gulf Coast
139
67
58
197
136
Total coal sales volumes
7,086
8,357
7,023
14,109
15,206
Coal royalty revenue per ton
Appalachia
Northern
$
6.87
$
11.84
$
9.86
$
8.35
$
10.95
Central
8.49
12.19
9.92
9.23
11.80
Southern
10.85
17.67
14.94
12.72
17.61
Illinois Basin
3.15
2.07
3.57
3.34
2.11
Northern Powder River Basin
4.62
4.74
4.68
4.65
4.10
Gulf Coast
0.71
0.57
0.57
0.66
0.56
Combined average coal royalty revenue per
ton
6.77
7.54
8.26
7.51
7.80
Coal royalty revenues
Appalachia
Northern
$
2,681
$
4,640
$
3,737
$
6,418
$
8,981
Central
28,445
42,461
35,806
64,251
79,441
Southern
7,521
5,513
8,697
16,218
11,853
Total Appalachia
38,647
52,614
48,240
86,887
100,275
Illinois Basin
5,141
7,061
4,675
9,816
10,364
Northern Powder River Basin
4,066
3,314
5,075
9,141
7,946
Gulf Coast
98
38
33
131
76
Unadjusted coal royalty revenues
47,952
63,027
58,023
105,975
118,661
Coal royalty adjustment for minimum
leases
8
(82
)
—
8
(267
)
Total coal royalty revenues
$
47,960
$
62,945
$
58,023
$
105,983
$
118,394
Other revenues
Production lease minimum revenues
$
562
$
65
$
613
$
1,175
$
1,657
Minimum lease straight-line revenues
4,447
4,674
4,503
8,950
9,457
Carbon neutral initiative revenues
115
—
2,118
2,233
—
Wheelage revenues
3,284
4,379
3,869
7,153
8,096
Property tax revenues
1,470
1,695
1,470
2,940
3,167
Coal overriding royalty revenues
150
682
188
338
940
Lease amendment revenues
848
811
851
1,699
1,691
Aggregates royalty revenues
686
1,037
753
1,439
1,807
Oil and gas royalty revenues
1,214
2,906
3,588
4,802
4,720
Other revenues
271
139
295
566
487
Total other revenues
$
13,047
$
16,388
$
18,248
$
31,295
$
32,022
Royalty and other mineral rights
$
61,007
$
79,333
$
76,271
$
137,278
$
150,416
Transportation and processing services
revenues
3,270
5,612
3,598
6,868
9,408
Gain on asset sales and disposals
5
345
96
101
345
Total Mineral Rights segment revenues and
other income
$
64,282
$
85,290
$
79,965
$
144,247
$
160,169
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 June 30,
2023
Net income (loss)
$
52,510
$
26,964
$
(9,140
)
$
70,334
Less: equity earnings from unconsolidated
investment
—
(26,978
)
—
(26,978
)
Add: total distributions from
unconsolidated investment
—
32,350
—
32,350
Add: interest expense, net
—
—
3,492
3,492
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
3,787
—
5
3,792
Add: asset impairments
69
—
—
69
Adjusted EBITDA
$
56,366
$
32,336
$
(5,643
)
$
83,059
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 March 31,
2023
Net income (loss)
$
68,881
$
19,096
$
(8,702
)
$
79,275
Less: equity earnings from unconsolidated
investment
—
(19,254
)
—
(19,254
)
Add: total distributions from
unconsolidated investment
—
10,780
—
10,780
Add: interest expense, net
—
—
2,853
2,853
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
4,079
—
4
4,083
Add: asset impairments
—
—
—
—
Adjusted EBITDA
$
72,960
$
10,622
$
(5,845
)
$
77,737
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 Six Months Ended June 30,
2023
Net income (loss)
$
121,391
$
46,060
$
(17,842
)
$
149,609
Less: equity earnings from unconsolidated
investment
—
(46,232
)
—
(46,232
)
Add: total distributions from
unconsolidated investment
—
43,130
—
43,130
Add: interest expense, net
—
—
6,345
6,345
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
7,866
—
9
7,875
Add: asset impairments
69
—
—
69
Adjusted EBITDA
$
129,326
$
42,958
$
(11,488
)
$
160,796
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
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Three Months Ended June 30,
2023
Net cash provided by (used in) operating
activities
$
55,040
$
32,326
$
(6,016
)
$
81,350
Add: proceeds from asset sales and
disposals
5
—
—
5
Add: return of long-term contract
receivable
610
—
—
610
Less: maintenance capital expenditures
—
—
(8
)
(8
)
Distributable cash flow
$
55,655
$
32,326
$
(6,024
)
$
81,957
Less: proceeds from asset sales and
disposals
(5
)
—
—
(5
)
Free cash flow
$
55,650
$
32,326
$
(6,024
)
$
81,952
Net cash provided by (used in) investing
activities
$
615
$
—
$
(8
)
$
607
Net cash used in financing activities
—
—
(88,882
)
(88,882
)
For the Three Months Ended June 30,
2022
Net cash provided by (used in) operating
activities
$
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
)
For the Three Months Ended March 31,
2023
Net cash provided by (used in) operating
activities
$
73,858
$
10,617
$
(11,575
)
$
72,900
Add: proceeds from asset sales and
disposals
101
—
—
101
Add: return of long-term contract
receivable
598
—
—
598
Less: maintenance capital expenditures
—
—
(2
)
(2
)
Distributable cash flow
$
74,557
$
10,617
$
(11,577
)
$
73,597
Less: proceeds from asset sales and
disposals
(101
)
—
—
(101
)
Free cash flow
$
74,456
$
10,617
$
(11,577
)
$
73,496
Net cash provided by (used in) investing
activities
$
699
$
—
$
(2
)
$
697
Net cash used in financing activities
(583
)
—
(94,450
)
(95,033
)
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Distributable Cash Flow and
Free Cash Flow
Mineral
Corporate and
(In thousands)
Rights
Soda Ash
Financing
Total
For the Six Months Ended June 30,
2023
Net cash provided by (used in) operating
activities
$
128,898
$
42,943
$
(17,591
)
$
154,250
Add: proceeds from asset sales and
disposals
106
—
—
106
Add: return of long-term contract
receivable
1,208
—
—
1,208
Less: maintenance capital expenditures
—
—
(10
)
(10
)
Distributable cash flow
$
130,212
$
42,943
$
(17,601
)
$
155,554
Less: proceeds from asset sales and
disposals
(106
)
—
—
(106
)
Free cash flow
$
130,106
$
42,943
$
(17,601
)
$
155,448
Net cash provided by (used in) investing
activities
$
1,314
$
—
$
(10
)
$
1,304
Net cash used in financing activities
(583
)
—
(183,332
)
(183,915
)
For the Six Months Ended June 30,
2022
Net cash provided by (used in) operating
activities
$
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
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
119,436
$
23,625
$
(26,698
)
$
116,363
Less: proceeds from asset sales and
disposals
(346
)
—
—
(346
)
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
)
Natural Resource Partners L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Cash Flow Cushion
For the Three Months
Ended
(In
thousands)
September 30, 2022
December 31, 2022
March 31, 2023
June 30, 2023
Last 12 Months
Net cash provided by operating
activities
$
82,496
$
68,888
$
72,900
$
81,350
$
305,634
Add: proceeds from asset sales and
disposals
353
384
101
5
843
Add: return of long-term contract
receivable
575
585
598
610
2,368
Less: maintenance capital expenditures
(59
)
(59
)
(2
)
(8
)
(128
)
Distributable cash flow
$
83,365
$
69,798
$
73,597
$
81,957
$
308,717
Less: proceeds from asset sales and
disposals
(353
)
(384
)
(101
)
(5
)
(843
)
Free cash flow
$
83,012
$
69,414
$
73,496
$
81,952
$
307,874
Less: mandatory Opco debt repayments
—
(20,334
)
(16,696
)
(2,365
)
(39,395
)
Less: preferred unit distributions
(7,500
)
(7,500
)
(8,086
)
(7,396
)
(30,482
)
Less: redemption of preferred units
—
—
(47,499
)
(80,834
)
(128,333
)
Less: common unit distributions
(9,571
)
(9,571
)
(40,900
)
(9,669
)
(69,711
)
Cash flow cushion
$
65,941
$
32,009
$
(39,685
)
$
(18,312
)
$
39,953
Leverage Ratio
For the Three Months
Ended
(In
thousands)
September 30, 2022
December 31, 2022
March 31, 2023
June 30, 2023
Last 12 Months
Net income
$
74,555
$
63,218
$
79,275
$
70,334
$
287,382
Less: equity earnings from unconsolidated
investment
(14,556
)
(15,759
)
(19,254
)
(26,978
)
(76,547
)
Add: total distributions from
unconsolidated investment
10,339
10,780
10,780
32,350
64,249
Add: interest expense, net
5,141
3,638
2,853
3,492
15,124
Add: loss on extinguishment of debt
2,484
3,933
—
—
6,417
Add: depreciation, depletion and
amortization
6,850
5,954
4,083
3,792
20,679
Add: asset impairments
812
3,583
—
69
4,464
Adjusted EBITDA
$
85,625
$
75,347
$
77,737
$
83,059
$
321,768
Debt—at June 30, 2023
$
183,059
Leverage Ratio
0.6 x
For the Three Months
Ended
(In
thousands)
September 30, 2021
December 31, 2021
March 31, 2022
June 30, 2022
Last 12 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
1.2 x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230804376825/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
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