Natural Resource Partners L.P. (NYSE:NRP) today reported
third quarter 2024 results as follows:
For the Three Months
Ended
Last Twelve Months
Ended
(In thousands)
(Unaudited)
September 30, 2024
Net income
$
38,595
$
205,852
Operating cash flow
54,145
260,059
Free cash flow (1)
54,818
262,671
__________________
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Highlights:
- Generated $54.8 million of free cash flow in the third
quarter of 2024
- Redeemed $31.7 million of preferred units at par with cash;
Zero of original $250 million preferred units remain
outstanding
- Executed five-year $200 million credit facility in October,
maturing 2029
- Paid second quarter 2024 common unit distribution of $0.75
per unit
- Declares third quarter 2024 common unit distribution of
$0.75 per unit
"NRP generated $55 million of free cash flow in the third
quarter of 2024 and $263 million of free cash flow over the last
twelve months," said Craig Nunez, NRP's president and chief
operating officer. "While pricing for coal and soda ash remain
weak, we continue to make progress toward our goal of paying off
all financial obligations. In the third quarter we paid off all
outstanding preferreds, leaving just under $200 million of debt
remaining to reach our goal.”
Mr. Nunez continued, “While we believe relatively weak coal and
soda ash prices will persist for at least the next year, we expect
the partnership to continue generating sufficient cash to achieve
our deleveraging goals. We remain steadfast in our belief this is
the best strategy to maximize the intrinsic value of the
partnership and we look forward to the day common unitholders will
have no competing stakeholder claims on free cash flow generated by
the partnership.”
NRP announced today that the board of directors of its general
partner declared a third quarter 2024 cash distribution of $0.75
per common unit to be paid on November 26, 2024, to unitholders of
record on November 19, 2024. 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 third quarter of 2024
decreased $20.4 million as compared to the prior year period.
Mineral Rights operating cash flow and free cash flow each
decreased $7.3 million as compared to the prior year period. These
decreases were primarily due to lower metallurgical coal sales
prices as well as lower thermal coal sales prices and volumes as
compared to the prior year period. Approximately 75% of coal
royalty revenues and approximately 55% of coal royalty sales
volumes were derived from metallurgical coal in the third quarter
of 2024.
Metallurgical coal prices continued to decline in the third
quarter of 2024 primarily driven by muted steel demand resulting
from sluggish construction activity in China and Europe as well as
weak manufacturing demand globally. NRP expects pricing to remain
relatively soft for both metallurgical and thermal coal as muted
global steel demand impacts metallurgical coal and mild weather,
low natural gas prices, and high inventory levels impact thermal
coal. However, continued price support above historical norms is
expected due to limited access to capital for operators, qualified
labor shortages, and input cost inflation.
NRP continues to explore carbon neutral revenue opportunities
across its ownership footprint. While the timing and likelihood of
additional cash flows from these activities is uncertain, NRP
believes its large ownership throughout the United States provides
additional opportunities to create value in this regard with
minimal capital investment by NRP. NRP's carbon neutral revenue
opportunities include the sequestration of carbon dioxide
underground and in standing forests, lithium production, and the
generation of electricity using geothermal, solar, and wind
energy.
Soda Ash
Soda Ash net income in the third quarter of 2024 decreased $4.3
million as compared to the prior year period primarily due to
significantly lower sales prices driven by increased global
production capacity, primarily from China, and weaker demand for
flat glass due to a slowdown in global construction activity and
weakness in demand for automobiles. Operating cash flow and free
cash flow in the third quarter of 2024 decreased $16.7 million as
compared to the prior year period due to a lower cash distribution
received from Sisecam Wyoming in the third quarter of 2024.
NRP believes it will take several years for the world to absorb
the additional soda ash supply recently introduced into the market
and allow prices to rise back to historically normal equilibrium
levels. The timing of this absorption will be highly dependent on
China, which currently produces and consumes roughly 50% of global
soda ash.
Corporate and Financing
Corporate and Financing net income decreased $0.6 million in the
third quarter of 2024 as compared to the prior year period.
Operating cash flow and free cash flow each decreased $0.8 million
in the third quarter of 2024 as compared to the prior year period.
These decreases were primarily due to higher interest expense and
cash paid for interest as a result of increased borrowings on the
credit facility in 2024 used to permanently retire the preferred
units and warrants.
NRP redeemed the remainder of the outstanding $31.7 million of
preferred units during the third quarter of 2024. NRP has now
retired all $250 million of its originally issued preferred
units.
In October 2024, NRP amended its $200 million credit facility
and extended its maturity two years, now due October 2029. This
amendment and extension provide greater flexibility and security
for the partnership in the coming years.
Regarding distributions, in August 2024, NRP declared and paid a
second quarter 2024 cash distribution of $0.75 per common unit and
a $0.95 million cash distribution on its preferred units. Today,
NRP declared a third quarter 2024 cash distribution of $0.75 per
common unit.
NRP's available liquidity was $76.2 million at September 30,
2024, consisting of $30.9 million of cash and $45.3 million of
borrowing capacity available under its revolving credit
facility.
NRP's consolidated leverage ratio was 0.8x at September 30,
2024.
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://registrations.events/direct/Q4I154484. 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: 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.
"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 Nine Months
Ended
September 30,
June 30,
September 30,
(In thousands,
except per unit data)
2024
2023
2024
2024
2023
Revenues and other income
Royalty and other mineral rights
$
50,405
$
68,533
$
54,591
$
172,368
$
205,811
Transportation and processing services
1,812
4,579
2,661
7,900
11,447
Equity in earnings of Sisecam Wyoming
8,109
12,401
3,645
17,204
58,633
Gain on asset sales and disposals
1
854
4,643
4,809
955
Total revenues and other income
$
60,327
$
86,367
$
65,540
$
202,281
$
276,846
Operating expenses
Operating and maintenance expenses
$
6,786
$
8,358
$
5,872
$
18,391
$
23,451
Depreciation, depletion and
amortization
4,730
4,594
3,324
12,708
12,469
General and administrative expenses
5,935
5,669
5,931
18,193
17,157
Asset impairments
87
63
—
87
132
Total operating expenses
$
17,538
$
18,684
$
15,127
$
49,379
$
53,209
Income from operations
$
42,789
$
67,683
$
50,413
$
152,902
$
223,637
Interest expense, net
$
(4,194
)
$
(3,837
)
$
(4,349
)
$
(12,030
)
$
(10,182
)
Net income
$
38,595
$
63,846
$
46,064
$
140,872
$
213,455
Less: income attributable to preferred
unitholders
(655
)
(2,936
)
(1,443
)
(4,248
)
(14,568
)
Less: redemption of preferred units
(10,819
)
(17,083
)
(13,666
)
(24,485
)
(60,929
)
Net income attributable to common
unitholders and the general partner
$
27,121
$
43,827
$
30,955
$
112,139
$
137,958
Net income attributable to common
unitholders
$
26,578
$
42,951
$
30,336
$
109,896
$
135,199
Net income attributable to the general
partner
543
876
619
2,243
2,759
Net income per common unit
Basic
$
2.04
$
3.40
$
2.33
$
8.47
$
10.72
Diluted
2.00
2.91
2.29
8.21
8.88
Net income
$
38,595
$
63,846
$
46,064
$
140,872
$
213,455
Comprehensive income (loss) from
unconsolidated investment and other
82
2,200
1,239
2,166
(16,472
)
Comprehensive income
$
38,677
$
66,046
$
47,303
$
143,038
$
196,983
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)
2024
2023
2024
2024
2023
Cash flows from operating activities
Net income
$
38,595
$
63,846
$
46,064
$
140,872
$
213,455
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and
amortization
4,730
4,594
3,324
12,708
12,469
Distributions from unconsolidated
investment
6,320
23,010
7,584
28,114
66,140
Equity earnings from unconsolidated
investment
(8,109
)
(12,401
)
(3,645
)
(17,204
)
(58,633
)
Gain on asset sales and disposals
(1
)
(854
)
(4,643
)
(4,809
)
(955
)
Asset impairments
87
63
—
87
132
Bad debt expense
1,058
1,621
293
538
813
Unit-based compensation expense
3,002
2,766
2,912
8,878
7,903
Amortization of debt issuance costs and
other
(1,655
)
477
(199
)
(2,603
)
1,043
Change in operating assets and
liabilities:
Accounts receivable
(6,640
)
(2,610
)
2,918
5,711
4,090
Accounts payable
49
(381
)
(580
)
98
(850
)
Accrued liabilities
392
498
1,916
(5,917
)
(6,288
)
Accrued interest
457
599
(677
)
192
235
Deferred revenue
14,854
(2,163
)
899
16,781
(4,963
)
Other items, net
1,006
(123
)
463
(1,173
)
(1,399
)
Net cash provided by operating
activities
$
54,145
$
78,942
$
56,629
$
182,273
$
233,192
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
1
$
855
$
4,643
$
4,809
$
961
Return of long-term contract
receivable
673
622
659
1,979
1,830
Capital expenditures
—
—
—
—
(10
)
Net cash provided by investing
activities
$
674
$
1,477
$
5,302
$
6,788
$
2,781
Cash flows from financing activities
Debt borrowings
$
23,000
$
50,000
$
40,493
$
152,850
$
215,034
Debt repayments
(36,000
)
(25,000
)
(19,000
)
(110,696
)
(176,061
)
Distributions to common unitholders and
the general partner
(9,986
)
(9,669
)
(9,987
)
(62,159
)
(60,238
)
Distributions to preferred unitholders
(1,605
)
(4,437
)
(2,643
)
(6,398
)
(19,919
)
Redemption of preferred units
(31,666
)
(50,001
)
(40,000
)
(71,666
)
(178,334
)
Warrant settlements
—
(33,608
)
(10,000
)
(65,689
)
(33,608
)
Other items, net
(2
)
(23
)
556
(6,392
)
(3,527
)
Net cash used in financing activities
$
(56,259
)
$
(72,738
)
$
(40,581
)
$
(170,150
)
$
(256,653
)
Net increase (decrease) in cash and cash
equivalents
$
(1,440
)
$
7,681
$
21,350
$
18,911
$
(20,680
)
Cash and cash equivalents at beginning of
period
32,340
10,730
10,990
11,989
39,091
Cash and cash equivalents at end of
period
$
30,900
$
18,411
$
32,340
$
30,900
$
18,411
Supplemental cash flow information:
Cash paid for interest
$
3,800
$
3,050
$
4,823
$
11,466
$
9,484
Natural Resource Partners
L.P.
Financial Tables
(Unaudited)
Consolidated Balance
Sheets
September 30,
December 31,
2024
2023
(In thousands,
except unit data)
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
30,900
$
11,989
Accounts receivable, net
36,886
41,086
Other current assets, net
1,483
2,218
Total current assets
$
69,269
$
55,293
Land
24,008
24,008
Mineral rights, net
382,274
394,483
Intangible assets, net
13,109
13,682
Equity in unconsolidated investment
267,806
276,549
Long-term contract receivable, net
24,212
26,321
Other long-term assets, net
9,187
7,540
Total assets
$
789,865
$
797,876
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
984
$
885
Accrued liabilities
7,912
12,987
Accrued interest
775
584
Current portion of deferred revenue
5,823
4,599
Current portion of long-term debt, net
14,226
30,785
Total current liabilities
$
29,720
$
49,840
Deferred revenue
53,912
38,356
Long-term debt, net
183,137
124,273
Other non-current liabilities
5,903
7,172
Total liabilities
$
272,672
$
219,641
Commitments and contingencies
Class A Convertible Preferred Units
(71,666 issued and outstanding at December 31, 2023 at $1,000 par
value per unit)
$
—
$
47,181
Partners’ capital
Common unitholders’ interest (13,049,123
and 12,634,642 units issued and outstanding at September 30, 2024
and December 31, 2023, respectively)
$
509,258
$
503,076
General partner’s interest
8,891
8,005
Warrant holders’ interest
—
23,095
Accumulated other comprehensive loss
(956
)
(3,122
)
Total partners’ capital
$
517,193
$
531,054
Total liabilities and partners'
capital
$
789,865
$
797,876
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
Loss
Capital
Balance at December 31, 2023
12,635
$
503,076
$
8,005
$
23,095
$
(3,122
)
$
531,054
Net income (1)
—
55,089
1,124
—
—
56,213
Distributions to common unitholders and
the general partner
—
(41,342
)
(844
)
—
—
(42,186
)
Distributions to preferred unitholders
—
(2,107
)
(43
)
—
—
(2,150
)
Issuance of unit-based awards
126
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
(3,971
)
—
—
—
(3,971
)
Capital contribution
—
—
227
—
—
227
Warrant settlements
199
(36,650
)
(748
)
(18,291
)
—
(55,689
)
Comprehensive income from unconsolidated
investment and other
—
—
—
—
845
845
Balance at March 31, 2024
12,960
$
474,095
$
7,721
$
4,804
$
(2,277
)
$
484,343
Net income (2)
—
45,142
922
—
—
46,064
Redemption of preferred units
—
(13,393
)
(273
)
—
—
(13,666
)
Distributions to common unitholders and
the general partner
—
(9,787
)
(200
)
—
—
(9,987
)
Distributions to preferred unitholders
—
(2,590
)
(53
)
—
—
(2,643
)
Unit-based awards amortization and
vesting
—
2,502
—
—
—
2,502
Capital contribution
—
—
555
—
—
555
Warrant settlements
89
(5,092
)
(104
)
(4,804
)
—
(10,000
)
Comprehensive income from unconsolidated
investment and other
—
—
—
—
1,239
1,239
Balance at June 30, 2024
13,049
$
490,877
$
8,568
$
—
$
(1,038
)
$
498,407
Net income (3)
—
37,824
771
—
—
38,595
Redemption of preferred units
—
(10,602
)
(217
)
—
—
(10,819
)
Distributions to common unitholders and
the general partner
—
(9,787
)
(199
)
—
—
(9,986
)
Distributions to preferred unitholders
—
(1,573
)
(32
)
—
—
(1,605
)
Unit-based awards amortization and
vesting
—
2,519
—
—
—
2,519
Comprehensive income from unconsolidated
investment and other
—
—
—
—
82
82
Balance at September 30, 2024
13,049
$
509,258
$
8,891
$
—
$
(956
)
$
517,193
_________________
(1)
Net income includes $2.15 million of
income attributable to preferred unitholders that accumulated
during the period, of which $2.11 million is allocated to the
common unitholders and $0.04 million is allocated to the general
partner.
(2)
Net income includes $1.44 million of
income attributable to preferred unitholders that accumulated
during the period, of which $1.41 million is allocated to the
common unitholders and $0.03 million is allocated to the general
partner.
(3)
Net income includes $0.66 million of
income attributable to preferred unitholders that accumulated
during the period, of which $0.64 million is allocated to the
common unitholders and $0.01 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 (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
Net income (3)
—
62,569
1,277
—
—
63,846
Redemption of preferred units
—
(16,741
)
(342
)
—
—
(17,083
)
Distributions to common unitholders and
the general partner
—
(9,475
)
(194
)
—
—
(9,669
)
Distributions to preferred unitholders
—
(4,349
)
(88
)
—
—
(4,437
)
Unit-based awards amortization and
vesting
—
2,318
—
—
—
2,318
Warrant settlement
—
(18,117
)
(370
)
(15,121
)
—
(33,608
)
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,200
2,200
Balance at September 30, 2023
12,635
$
461,043
$
7,196
$
32,843
$
2,245
$
503,327
____________________
(1)
Net income includes $6.66 million of
income attributable to preferred unitholders that accumulated
during the period, of which $6.53 million is allocated to the
common unitholders and $0.13 million is allocated to the general
partner.
(2)
Net income includes $4.97 million of
income attributable to preferred unitholders that accumulated
during the period, of which $4.87 million is allocated to the
common unitholders and $0.10 million is allocated to the general
partner.
(3)
Net income includes $2.94 million of
income attributable to preferred unitholders that accumulated
during the period, of which $2.88 million is allocated to the
common unitholders and $0.06 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, 2024 and 2023 and June 30, 2024:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Three Months Ended September
30, 2024
Revenues
$
52,217
$
—
$
—
$
52,217
Equity in earnings of Sisecam Wyoming
—
8,109
—
8,109
Gain on asset sales and disposals
1
—
—
1
Total revenues and other income
$
52,218
$
8,109
$
—
$
60,327
Asset impairments
$
87
$
—
$
—
$
87
Net income (loss)
$
40,644
$
8,085
$
(10,134
)
$
38,595
Adjusted EBITDA (1)
$
45,456
$
6,296
$
(5,935
)
$
45,817
Cash flow provided by (used in) continuing
operations:
Operating activities
$
53,610
$
6,297
$
(5,762
)
$
54,145
Investing activities
$
674
$
—
$
—
$
674
Financing activities
$
—
$
—
$
(56,259
)
$
(56,259
)
Distributable cash flow (1)
$
54,284
$
6,297
$
(5,762
)
$
54,819
Free cash flow (1)
$
54,283
$
6,297
$
(5,762
)
$
54,818
For the Three Months Ended September
30, 2023
Revenues
$
73,112
$
—
$
—
$
73,112
Equity in earnings of Sisecam Wyoming
—
12,401
—
12,401
Gain on asset sales and disposals
854
—
—
854
Total revenues and other income
$
73,966
$
12,401
$
—
$
86,367
Asset impairments
$
63
$
—
$
—
$
63
Net income (loss)
$
61,009
$
12,348
$
(9,511
)
$
63,846
Adjusted EBITDA (1)
$
65,661
$
22,957
$
(5,669
)
$
82,949
Cash flow provided by (used in) continuing
operations:
Operating activities
$
60,938
$
22,958
$
(4,954
)
$
78,942
Investing activities
$
1,477
$
—
$
—
$
1,477
Financing activities
$
—
$
—
$
(72,738
)
$
(72,738
)
Distributable cash flow (1)
$
62,415
$
22,958
$
(4,954
)
$
80,419
Free cash flow (1)
$
61,560
$
22,958
$
(4,954
)
$
79,564
For the Three Months Ended June 30,
2024
Revenues
$
57,252
$
—
$
—
$
57,252
Equity in earnings of Sisecam Wyoming
—
3,645
—
3,645
Gain on asset sales and disposals
4,643
—
—
4,643
Total revenues and other income
$
61,895
$
3,645
$
—
$
65,540
Asset impairments
$
—
$
—
$
—
$
—
Net income (loss)
$
52,729
$
3,619
$
(10,284
)
$
46,064
Adjusted EBITDA (1)
$
56,049
$
7,558
$
(5,931
)
$
57,676
Cash flow provided by (used in) continuing
operations:
Operating activities
$
56,234
$
7,557
$
(7,162
)
$
56,629
Investing activities
$
5,302
$
—
$
—
$
5,302
Financing activities
$
—
$
—
$
(40,581
)
$
(40,581
)
Distributable cash flow (1)
$
61,536
$
7,557
$
(7,162
)
$
61,931
Free cash flow (1)
$
56,893
$
7,557
$
(7,162
)
$
57,288
__________________
(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, 2024 and 2023:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Nine Months Ended September 30,
2024
Revenues
$
180,268
$
—
$
—
$
180,268
Equity in earnings of Sisecam Wyoming
—
17,204
—
17,204
Gain on asset sales and disposals
4,809
—
—
4,809
Total revenues and other income
$
185,077
$
17,204
$
—
$
202,281
Asset impairments
$
87
$
—
$
—
$
87
Net income (loss)
$
154,017
$
17,092
$
(30,237
)
$
140,872
Adjusted EBITDA (1)
$
166,798
$
28,002
$
(18,193
)
$
176,607
Cash flow provided by (used in) continuing
operations:
Operating activities
$
179,593
$
28,002
$
(25,322
)
$
182,273
Investing activities
$
6,788
$
—
$
—
$
6,788
Financing activities
$
(1,086
)
$
—
$
(169,064
)
$
(170,150
)
Distributable cash flow (1)
$
186,381
$
28,002
$
(25,322
)
$
189,061
Free cash flow (1)
$
181,572
$
28,002
$
(25,322
)
$
184,252
For the Nine Months Ended September 30,
2023
Revenues
$
217,258
$
—
$
—
$
217,258
Equity in earnings of Sisecam Wyoming
—
58,633
—
58,633
Gain on asset sales and disposals
955
—
—
955
Total revenues and other income
$
218,213
$
58,633
$
—
$
276,846
Asset impairments
$
132
$
—
$
—
$
132
Net income (loss)
$
182,400
$
58,408
$
(27,353
)
$
213,455
Adjusted EBITDA (1)
$
194,987
$
65,915
$
(17,157
)
$
243,745
Cash flow provided by (used in) continuing
operations:
Operating activities
$
189,836
$
65,901
$
(22,545
)
$
233,192
Investing activities
$
2,791
$
—
$
(10
)
$
2,781
Financing activities
$
(583
)
$
—
$
(256,070
)
$
(256,653
)
Distributable cash flow (1)
$
192,627
$
65,901
$
(22,555
)
$
235,973
Free cash flow (1)
$
191,666
$
65,901
$
(22,555
)
$
235,012
__________________
(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)
2024
2023
2024
2024
2023
Coal sales volumes (tons)
Appalachia
Northern
470
284
129
716
1,053
Central
3,507
3,429
3,456
10,677
10,390
Southern
705
741
709
1,984
2,016
Total Appalachia
4,682
4,454
4,294
13,377
13,459
Illinois Basin
1,128
2,541
1,342
4,503
5,482
Northern Powder River Basin
944
1,364
567
2,460
3,330
Gulf Coast
436
479
435
1,136
676
Total coal sales volumes
7,190
8,838
6,638
21,476
22,947
Coal royalty revenue per ton
Appalachia
Northern
$
2.34
$
5.54
$
4.74
$
2.70
$
7.59
Central
6.55
8.20
7.34
7.34
8.89
Southern
9.56
11.88
10.19
10.37
12.41
Illinois Basin
1.76
3.98
2.47
2.33
3.63
Northern Powder River Basin
4.82
4.86
4.99
4.87
4.74
Gulf Coast
0.84
0.69
0.77
0.79
0.68
Combined average coal royalty revenue per
ton
5.24
6.29
5.98
5.78
7.04
Coal royalty revenues
Appalachia
Northern
$
1,100
$
1,573
$
612
$
1,930
$
7,991
Central
22,958
28,111
25,378
78,328
92,362
Southern
6,743
8,806
7,226
20,571
25,024
Total Appalachia
30,801
38,490
33,216
100,829
125,377
Illinois Basin
1,987
10,108
3,312
10,510
19,924
Northern Powder River Basin
4,546
6,627
2,831
11,976
15,768
Gulf Coast
366
330
336
902
461
Unadjusted coal royalty revenues
37,700
55,555
39,695
124,217
161,530
Coal royalty adjustment for minimum
leases
(95
)
(11
)
(10
)
(109
)
(3
)
Total coal royalty revenues
$
37,605
$
55,544
$
39,685
$
124,108
$
161,527
Other revenues
Production lease minimum revenues
$
437
$
850
$
412
$
1,773
$
2,025
Minimum lease straight-line revenues
4,117
4,464
4,126
12,414
13,414
Carbon neutral initiative revenues
(39
)
681
2,200
4,322
2,914
Wheelage revenues
2,072
2,385
2,338
7,082
9,538
Property tax revenues
1,809
1,770
1,545
5,246
4,710
Coal overriding royalty revenues
227
827
668
2,064
1,165
Lease amendment revenues
1,071
623
712
2,485
2,322
Aggregates royalty revenues
662
736
730
2,164
2,175
Oil and gas royalty revenues
1,317
324
1,999
6,956
5,126
Other revenues
1,127
329
176
3,754
895
Total other revenues
$
12,800
$
12,989
$
14,906
$
48,260
$
44,284
Royalty and other mineral rights
$
50,405
$
68,533
$
54,591
$
172,368
$
205,811
Transportation and processing services
revenues
1,812
4,579
2,661
7,900
11,447
Gain on asset sales and disposals
1
854
4,643
4,809
955
Total Mineral Rights segment revenues and
other income
$
52,218
$
73,966
$
61,895
$
185,077
$
218,213
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, 2024
Net income (loss)
$
40,644
$
8,085
$
(10,134
)
$
38,595
Less: equity earnings from unconsolidated
investment
—
(8,109
)
—
(8,109
)
Add: total distributions from
unconsolidated investment
—
6,320
—
6,320
Add: interest expense, net
—
—
4,194
4,194
Add: depreciation, depletion and
amortization
4,725
—
5
4,730
Add: asset impairments
87
—
—
87
Adjusted EBITDA
$
45,456
$
6,296
$
(5,935
)
$
45,817
For the Three Months Ended September
30, 2023
Net income (loss)
$
61,009
$
12,348
$
(9,511
)
$
63,846
Less: equity earnings from unconsolidated
investment
—
(12,401
)
—
(12,401
)
Add: total distributions from
unconsolidated investment
—
23,010
—
23,010
Add: interest expense, net
—
—
3,837
3,837
Add: depreciation, depletion and
amortization
4,589
—
5
4,594
Add: asset impairments
63
—
—
63
Adjusted EBITDA
$
65,661
$
22,957
$
(5,669
)
$
82,949
For the Three Months Ended June 30,
2024
Net income (loss)
$
52,729
$
3,619
$
(10,284
)
$
46,064
Less: equity earnings from unconsolidated
investment
—
(3,645
)
—
(3,645
)
Add: total distributions from
unconsolidated investment
—
7,584
—
7,584
Add: interest expense, net
—
—
4,349
4,349
Add: depreciation, depletion and
amortization
3,320
—
4
3,324
Add: asset impairments
—
—
—
—
Adjusted EBITDA
$
56,049
$
7,558
$
(5,931
)
$
57,676
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 Nine Months Ended September 30,
2024
Net income (loss)
$
154,017
$
17,092
$
(30,237
)
$
140,872
Less: equity earnings from unconsolidated
investment
—
(17,204
)
—
(17,204
)
Add: total distributions from
unconsolidated investment
—
28,114
—
28,114
Add: interest expense, net
—
—
12,030
12,030
Add: depreciation, depletion and
amortization
12,694
—
14
12,708
Add: asset impairments
87
—
—
87
Adjusted EBITDA
$
166,798
$
28,002
$
(18,193
)
$
176,607
For the Nine Months Ended September 30,
2023
Net income (loss)
$
182,400
$
58,408
$
(27,353
)
$
213,455
Less: equity earnings from unconsolidated
investment
—
(58,633
)
—
(58,633
)
Add: total distributions from
unconsolidated investment
—
66,140
—
66,140
Add: interest expense, net
—
—
10,182
10,182
Add: depreciation, depletion and
amortization
12,455
—
14
12,469
Add: asset impairments
132
—
—
132
Adjusted EBITDA
$
194,987
$
65,915
$
(17,157
)
$
243,745
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 September
30, 2024
Net cash provided by (used in) operating
activities
$
53,610
$
6,297
$
(5,762
)
$
54,145
Add: proceeds from asset sales and
disposals
1
—
—
1
Add: return of long-term contract
receivable
673
—
—
673
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
54,284
$
6,297
$
(5,762
)
$
54,819
Less: proceeds from asset sales and
disposals
(1
)
—
—
(1
)
Free cash flow
$
54,283
$
6,297
$
(5,762
)
$
54,818
Net cash provided by investing
activities
$
674
$
—
$
—
$
674
Net cash used in financing activities
$
—
$
—
$
(56,259
)
$
(56,259
)
For the Three Months Ended September
30, 2023
Net cash provided by (used in) operating
activities
$
60,938
$
22,958
$
(4,954
)
$
78,942
Add: proceeds from asset sales and
disposals
855
—
—
855
Add: return of long-term contract
receivable
622
—
—
622
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
62,415
$
22,958
$
(4,954
)
$
80,419
Less: proceeds from asset sales and
disposals
(855
)
—
—
(855
)
Free cash flow
$
61,560
$
22,958
$
(4,954
)
$
79,564
Net cash provided by investing
activities
$
1,477
$
—
$
—
$
1,477
Net cash used in financing activities
$
—
$
—
$
(72,738
)
$
(72,738
)
For the Three Months Ended June 30,
2024
Net cash provided by (used in) operating
activities
$
56,234
$
7,557
$
(7,162
)
$
56,629
Add: proceeds from asset sales and
disposals
4,643
—
—
4,643
Add: return of long-term contract
receivable
659
—
—
659
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
61,536
$
7,557
$
(7,162
)
$
61,931
Less: proceeds from asset sales and
disposals
(4,643
)
—
—
(4,643
)
Free cash flow
$
56,893
$
7,557
$
(7,162
)
$
57,288
Net cash provided by investing
activities
$
5,302
$
—
$
—
$
5,302
Net cash used in financing activities
$
—
$
—
$
(40,581
)
$
(40,581
)
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 Nine Months Ended September 30,
2024
Net cash provided by (used in) operating
activities
$
179,593
$
28,002
$
(25,322
)
$
182,273
Add: proceeds from asset sales and
disposals
4,809
—
—
4,809
Add: return of long-term contract
receivable
1,979
—
—
1,979
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
186,381
$
28,002
$
(25,322
)
$
189,061
Less: proceeds from asset sales and
disposals
(4,809
)
—
—
(4,809
)
Free cash flow
$
181,572
$
28,002
$
(25,322
)
$
184,252
Net cash provided by investing
activities
$
6,788
$
—
$
—
$
6,788
Net cash used in financing activities
$
(1,086
)
$
—
$
(169,064
)
$
(170,150
)
For the Nine Months Ended September 30,
2023
Net cash provided by (used in) operating
activities
$
189,836
$
65,901
$
(22,545
)
$
233,192
Add: proceeds from asset sales and
disposals
961
—
—
961
Add: return of long-term contract
receivable
1,830
—
—
1,830
Less: maintenance capital expenditures
—
—
(10
)
(10
)
Distributable cash flow
$
192,627
$
65,901
$
(22,555
)
$
235,973
Less: proceeds from asset sales and
disposals
(961
)
—
—
(961
)
Free cash flow
$
191,666
$
65,901
$
(22,555
)
$
235,012
Net cash provided by (used in) investing
activities
$
2,791
$
—
$
(10
)
$
2,781
Net cash used in financing activities
$
(583
)
$
—
$
(256,070
)
$
(256,653
)
Natural Resource Partners
L.P.
Reconciliation of Non-GAAP
Measures
(Unaudited)
Last Twelve Months (LTM) Free
Cash Flow
For the Three Months
Ended
(In
thousands)
December 31, 2023
March 31, 2024
June 30, 2024
September 30, 2024
Last 12 Months
Net cash provided by operating
activities
$
77,786
$
71,499
$
56,629
$
54,145
$
260,059
Add: proceeds from asset sales and
disposals
2,002
165
4,643
1
6,811
Add: return of long-term contract
receivable
633
647
659
673
2,612
Distributable cash flow
$
80,421
$
72,311
$
61,931
$
54,819
$
269,482
Less: proceeds from asset sales and
disposals
(2,002
)
(165
)
(4,643
)
(1
)
(6,811
)
Free cash flow
$
78,419
$
72,146
$
57,288
$
54,818
$
262,671
Leverage Ratio
For the Three Months
Ended
(In
thousands)
December 31, 2023
March 31, 2024
June 30, 2024
September 30, 2024
Last 12 Months
Net income
$
64,980
$
56,213
$
46,064
$
38,595
$
205,852
Less: equity earnings from unconsolidated
investment
(14,764
)
(5,450
)
(3,645
)
(8,109
)
(31,968
)
Add: total distributions from
unconsolidated investment
15,338
14,210
7,584
6,320
43,452
Add: interest expense, net
3,921
3,487
4,349
4,194
15,951
Add: depreciation, depletion and
amortization
6,020
4,654
3,324
4,730
18,728
Add: asset impairments
424
—
—
87
511
Adjusted EBITDA
$
75,919
$
73,114
$
57,676
$
45,817
$
252,526
Debt—at September 30, 2024
$
197,678
Leverage Ratio
0.8 x
For the Three Months
Ended
(In
thousands)
December 31, 2022
March 31, 2023
June 30, 2023
September 30, 2023
Last 12 Months
Net income
$
63,218
$
79,275
$
70,334
$
63,846
$
276,673
Less: equity earnings from unconsolidated
investment
(15,759
)
(19,254
)
(26,978
)
(12,401
)
(74,392
)
Add: total distributions from
unconsolidated investment
10,780
10,780
32,350
23,010
76,920
Add: interest expense, net
3,638
2,853
3,492
3,837
13,820
Add: loss on extinguishment of debt
3,933
—
—
—
3,933
Add: depreciation, depletion and
amortization
5,954
4,083
3,792
4,594
18,423
Add: asset impairments
3,583
—
69
63
3,715
Adjusted EBITDA
$
75,347
$
77,737
$
83,059
$
82,949
$
319,092
Debt—at September 30, 2023
$
208,059
Leverage Ratio
0.7 x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105355821/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
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