Natural Resource Partners L.P. (NYSE:NRP) today reported
third quarter 2023 results as follows:
For the Three Months
Ended
Last Twelve Months
Ended
(In thousands)
(Unaudited)
September 30, 2023
Net income
$
63,846
$
276,673
Operating cash flow
78,942
302,080
Free cash flow (1)
79,564
304,426
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Highlights:
- Generated $80 million of free cash flow
- Paid second quarter 2023 common unit distribution of $0.75
per unit
- Redeemed $50 million of preferred units at par with cash;
$72 million of original $250 million preferred units remain
outstanding
- Repurchased 812,500 warrants in September and 650,000
warrants in October with $56 million in cash; 1.54 million of
original 4 million warrants remain outstanding
- Declares third quarter 2023 common unit distribution of
$0.75 per unit
"NRP had another robust quarter with $80 million of free cash
flow generated in the third quarter of 2023 as a result of
continued strong performance from our mineral rights assets and a
significant cash distribution from our soda ash investment," said
Craig Nunez, NRP's president and chief operating officer. "We also
made noteworthy progress towards our goal of eliminating all
preferred units and warrants by redeeming $50 million of preferred
units at par with cash and repurchasing a total of 1.46 million
warrants for $56 million in cash. I am proud of the NRP team for
the continued strong performance and am confident our strategy to
retire all outstanding debt, preferred equity, and warrants while
maintaining common unit distributions will continue to maximize
long-term unitholder value.”
NRP announced today that the board of directors of its general
partner declared a third quarter 2023 cash distribution of $0.75
per common unit to be paid on November 21, 2023, to unitholders of
record on November 14, 2023. In addition, the board declared a
$2.15 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 available liquidity was $45.4 million at September 30,
2023, consisting of $18.4 million of cash and $27.0 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 third quarter of 2023 decreased $11.2 million, $15.0
million, and $15.0 million, respectively, as compared to the prior
year period. These decreases were primarily due to certain carbon
neutral initiative transactions entered into during the third
quarter of 2022 and higher oil and gas royalty revenues as a result
of higher natural gas production and prices in the third quarter of
2022. Approximately 60% of coal royalty revenues and approximately
45% of coal royalty sales volumes were derived from metallurgical
coal in the third quarter of 2023.
Metallurgical coal prices improved and thermal coal prices
remained relatively flat during the third quarter of 2023. Both
metallurgical and thermal coal prices were above historical norms
but below the record highs seen in 2022. NRP expects continued
price support for coal as limited access to capital, labor
shortages, and inflationary pressures limit operators’ ability to
increase production.
In addition, NRP continues to explore carbon neutral revenue
opportunities across its large asset portfolio, 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 third quarter of 2023 decreased $2.2
million as compared to the prior year period primarily due to lower
international sales prices and an increased sales mix into the
lower priced international market in the third quarter of 2023 as
compared to the prior year period. Operating cash flow and free
cash flow in the third quarter of 2023 improved $12.6 million as
compared to the prior year period due to a higher cash distribution
received from Sisecam Wyoming in the third quarter of 2023 stemming
from strong operating performance in the first half of the
year.
International soda ash prices were significantly lower in the
third quarter of 2023 compared to the first half of the year
primarily due to new supply from China. NRP believes lower
international prices will persist throughout the remainder of the
year and into next year as the market absorbs the additional
supply. Sisecam Wyoming’s domestic soda ash sales prices are
expected to remain above the spot market for the rest of this year
as a result of negotiated 2023 domestic sales contracts entered
into at the end of 2022. As domestic sales contracts for 2024 begin
to be negotiated, NRP believes contracted sales prices will be set
at lower levels as the market contends with recessionary headwinds
and new supply entering the export markets.
Corporate and Financing
Corporate and Financing costs in the third quarter of 2023
decreased $2.6 million as compared to the prior year period
primarily due to the loss on extinguishment of debt recognized in
2022. Operating cash flow and free cash flow in the third quarter
of 2023 decreased $1.1 million as compared to the prior year period
primarily due to higher cash paid for interest in the third quarter
of 2023 due to borrowings on the credit facility used for the
preferred unit redemptions and warrant repurchases.
NRP redeemed an aggregate of 50,001 preferred units at par with
cash in the third quarter of 2023, saving NRP $6.0 million annually
in preferred unit cash distributions. Of the originally issued
250,000 preferred units, 71,666 remain outstanding.
In addition, NRP repurchased 752,500 warrants with an exercise
price of $22.81 and 60,000 warrants with an exercise price of
$34.00 for $33.6 million in cash during the third quarter of 2023.
In October, NRP repurchased 650,000 warrants with an exercise price
of $34.00 for $22.5 million in cash. After the warrant repurchases
in October, 1.54 million warrants with an exercise price of $34.00
remain outstanding.
In August 2023, NRP declared and paid a second quarter 2023 cash
distribution of $0.75 per common unit and a $3.65 million cash
distribution on its preferred units. Today, NRP declared a third
quarter 2023 cash distribution of $0.75 per common unit and a $2.15
million cash distribution on its outstanding preferred units.
NRP's consolidated leverage ratio was 0.7x at September 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/cHhtshxF. 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 Nine Months
Ended
September 30,
June 30,
September 30,
(In thousands,
except per unit data)
2023
2022
2023
2023
2022
Revenues and other income
Royalty and other mineral rights
$
68,533
$
81,379
$
61,007
$
205,811
$
231,795
Transportation and processing services
4,579
5,969
3,270
11,447
15,377
Equity in earnings of Sisecam Wyoming
12,401
14,556
26,978
58,633
44,036
Gain on asset sales and disposals
854
354
5
955
699
Total revenues and other income
$
86,367
$
102,258
$
91,260
$
276,846
$
291,907
Operating expenses
Operating and maintenance expenses
$
8,358
$
7,898
$
7,930
$
23,451
$
25,989
Depreciation, depletion and
amortization
4,594
6,850
3,792
12,469
16,565
General and administrative expenses
5,669
4,518
5,643
17,157
14,037
Asset impairments
63
812
69
132
874
Total operating expenses
$
18,684
$
20,078
$
17,434
$
53,209
$
57,465
Income from operations
$
67,683
$
82,180
$
73,826
$
223,637
$
234,442
Other expenses, net
Interest expense, net
$
(3,837
)
$
(5,141
)
$
(3,492
)
$
(10,182
)
$
(22,636
)
Loss on extinguishment of debt
—
(2,484
)
—
—
(6,532
)
Total other expenses, net
$
(3,837
)
$
(7,625
)
$
(3,492
)
$
(10,182
)
$
(29,168
)
Net income
$
63,846
$
74,555
$
70,334
$
213,455
$
205,274
Less: income attributable to preferred
unitholders
(2,936
)
(7,500
)
(4,971
)
(14,568
)
(22,500
)
Less: redemption of preferred units
(17,083
)
—
(27,618
)
(60,929
)
—
Net income attributable to common
unitholders and the general partner
$
43,827
$
67,055
$
37,745
$
137,958
$
182,774
Net income attributable to common
unitholders
$
42,951
$
65,714
$
36,990
$
135,199
$
179,119
Net income attributable to the general
partner
876
1,341
755
2,759
3,655
Net income per common unit
Basic
$
3.40
$
5.25
$
2.93
$
10.72
$
14.36
Diluted
2.91
3.71
2.49
8.88
10.24
Net income
$
63,846
$
74,555
$
70,334
$
213,455
$
205,274
Comprehensive income (loss) from
unconsolidated investment and other
2,200
289
911
(16,472
)
(1,179
)
Comprehensive income
$
66,046
$
74,844
$
71,245
$
196,983
$
204,095
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)
2023
2022
2023
2023
2022
Cash flows from operating activities
Net income
$
63,846
$
74,555
$
70,334
$
213,455
$
205,274
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and
amortization
4,594
6,850
3,792
12,469
16,565
Distributions from unconsolidated
investment
23,010
10,339
32,350
66,140
34,055
Equity earnings from unconsolidated
investment
(12,401
)
(14,556
)
(26,978
)
(58,633
)
(44,036
)
Gain on asset sales and disposals
(854
)
(354
)
(5
)
(955
)
(699
)
Loss on extinguishment of debt
—
2,484
—
—
6,532
Asset impairments
63
812
69
132
874
Bad debt expense
1,621
1
(198
)
813
641
Unit-based compensation expense
2,766
1,429
2,646
7,903
4,216
Amortization of debt issuance costs and
other
477
215
541
1,043
1,887
Change in operating assets and
liabilities:
Accounts receivable
(2,610
)
2,494
(361
)
4,090
(10,118
)
Accounts payable
(381
)
210
72
(850
)
223
Accrued liabilities
498
278
2,019
(6,288
)
(4,831
)
Accrued interest
599
3,177
(627
)
235
3,014
Deferred revenue
(2,163
)
(7,519
)
(2,646
)
(4,963
)
(17,094
)
Other items, net
(123
)
2,081
342
(1,399
)
1,447
Net cash provided by operating
activities
$
78,942
$
82,496
$
81,350
$
233,192
$
197,950
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
855
$
353
$
5
$
961
$
699
Return of long-term contract
receivable
622
575
610
1,830
1,138
Capital expenditures
—
(59
)
(8
)
(10
)
(59
)
Net cash provided by investing
activities
$
1,477
$
869
$
607
$
2,781
$
1,778
Cash flows from financing activities
Debt borrowings
$
50,000
$
—
$
70,834
$
215,034
$
—
Debt repayments
(25,000
)
(60,494
)
(61,365
)
(176,061
)
(197,665
)
Distributions to common unitholders and
the general partner
(9,669
)
(9,571
)
(9,669
)
(60,238
)
(24,813
)
Distributions to preferred unitholders
(4,437
)
(7,500
)
(7,396
)
(19,919
)
(22,758
)
Redemption of preferred units
(50,001
)
—
(80,834
)
(178,334
)
—
Redemption of preferred units
paid-in-kind
—
—
—
—
(19,321
)
Warrant settlement
(33,608
)
—
—
(33,608
)
—
Other items, net
(23
)
(4,219
)
(452
)
(3,527
)
(9,754
)
Net cash used in financing activities
$
(72,738
)
$
(81,784
)
$
(88,882
)
$
(256,653
)
$
(274,311
)
Net increase (decrease) in cash and cash
equivalents
$
7,681
$
1,581
$
(6,925
)
$
(20,680
)
$
(74,583
)
Cash and cash equivalents at beginning of
period
10,730
59,356
17,655
39,091
135,520
Cash and cash equivalents at end of
period
$
18,411
$
60,937
$
10,730
$
18,411
$
60,937
Supplemental cash flow information:
Cash paid for interest
$
3,050
$
1,729
$
3,960
$
9,484
$
18,501
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Balance
Sheets
September 30,
December 31,
2023
2022
(In thousands,
except unit data)
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
18,411
$
39,091
Accounts receivable, net
38,569
42,701
Other current assets, net
2,570
1,822
Total current assets
$
59,550
$
83,614
Land
24,008
24,008
Mineral rights, net
400,548
412,312
Intangible assets, net
14,014
14,713
Equity in unconsolidated investment
282,491
306,470
Long-term contract receivable, net
26,997
28,946
Other long-term assets, net
7,601
7,068
Total assets
$
815,209
$
877,131
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
1,143
$
1,992
Accrued liabilities
6,511
11,916
Accrued interest
1,224
989
Current portion of deferred revenue
6,399
6,256
Current portion of long-term debt, net
36,780
39,076
Total current liabilities
$
52,057
$
60,229
Deferred revenue
35,076
40,181
Long-term debt, net
170,735
129,205
Other non-current liabilities
6,833
5,472
Total liabilities
$
264,701
$
235,087
Commitments and contingencies
Class A Convertible Preferred Units
(71,666 and 250,000 units issued and outstanding at September 30,
2023 and December 31, 2022, respectively, at $1,000 par value per
unit; liquidation preference of $1,850 per unit at September 30,
2023 and December 31, 2022)
$
47,181
$
164,587
Partners’ capital
Common unitholders’ interest (12,634,642
and 12,505,996 units issued and outstanding at September 30, 2023
and December 31, 2022, respectively)
$
461,043
$
404,799
General partner’s interest
7,196
5,977
Warrant holders’ interest
32,843
47,964
Accumulated other comprehensive income
2,245
18,717
Total partners’ capital
$
503,327
$
477,457
Total liabilities and partners'
capital
$
815,209
$
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
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 $6.7 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.
(3)
Net income includes $2.9 million of income
attributable to preferred unitholders that accumulated during the
period, of which $2.9 million is allocated to the common
unitholders and $0.1 million is allocated to the general
partner.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of
Partners' Capital
Accumulated
Other
Total
Common Unitholders
General
Warrant
Comprehensive
Partners'
(In
thousands)
Units
Amounts
Partner
Holders
Income
Capital
Balance at December 31, 2021
12,351
$
203,062
$
1,787
$
47,964
$
3,211
$
256,024
Net income (1)
—
62,621
1,278
—
—
63,899
Distributions to common unitholders and
the general partner
—
(5,559
)
(113
)
—
—
(5,672
)
Distributions to preferred unitholders
—
(7,603
)
(155
)
—
—
(7,758
)
Issuance of unit-based awards
155
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
(1,754
)
—
—
—
(1,754
)
Capital contribution
—
—
112
—
—
112
Comprehensive income from unconsolidated
investment and other
—
—
—
—
2,545
2,545
Balance at March 31, 2022
12,506
$
250,767
$
2,909
$
47,964
$
5,756
$
307,396
Net income (1)
—
65,484
1,336
—
—
66,820
Distributions to common unitholders and
the general partner
—
(9,379
)
(191
)
—
—
(9,570
)
Distributions to preferred unitholders
—
(7,350
)
(150
)
—
—
(7,500
)
Unit-based awards amortization and
vesting
—
1,231
—
—
—
1,231
Comprehensive loss from unconsolidated
investment and other
—
—
—
—
(4,013
)
(4,013
)
Balance at June 30, 2022
12,506
$
300,753
$
3,904
$
47,964
$
1,743
$
354,364
Net income (1)
—
73,064
1,491
—
—
74,555
Distributions to common unitholders and
the general partner
—
(9,380
)
(191
)
—
—
(9,571
)
Distributions to preferred unitholders
—
(7,350
)
(150
)
—
—
(7,500
)
Unit-based awards amortization and
vesting
—
1,245
—
—
—
1,245
Comprehensive income from unconsolidated
investment and other
—
—
—
—
289
289
Balance at September 30, 2022
12,506
$
358,332
$
5,054
$
47,964
$
2,032
$
413,382
(1)
Net income includes $7.5 million of income
attributable to preferred unitholders that accumulated during the
period, of which $7.4 million is allocated to the common
unitholders and $0.2 million is allocated to the general
partner.
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
The following table presents NRP's
unaudited business results by segment for the three months ended
September 30, 2023 and 2022 and June 30, 2023:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Three Months Ended September
30, 2023
Revenues
$
73,112
$
12,401
$
—
$
85,513
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 September
30, 2022
Revenues
$
87,348
$
14,556
$
—
$
101,904
Gain on asset sales and disposals
354
—
—
354
Total revenues and other income
$
87,702
$
14,556
$
—
$
102,258
Asset impairments
$
812
$
—
$
—
$
812
Net income (loss)
$
72,173
$
14,525
$
(12,143
)
$
74,555
Adjusted EBITDA (1)
$
79,835
$
10,308
$
(4,518
)
$
85,625
Cash flow provided by (used in) continuing
operations:
Operating activities
$
75,948
$
10,309
$
(3,761
)
$
82,496
Investing activities
$
928
$
—
$
(59
)
$
869
Financing activities
$
—
$
—
$
(81,784
)
$
(81,784
)
Distributable cash flow (1)
$
76,876
$
10,309
$
(3,820
)
$
83,365
Free cash flow (1)
$
76,523
$
10,309
$
(3,820
)
$
83,012
For the Three Months Ended 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
(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, 2023 and 2022:
Operating Segments
Mineral
Corporate and
(In
thousands)
Rights
Soda Ash
Financing
Total
For the Nine Months Ended September 30,
2023
Revenues
$
217,258
$
58,633
$
—
$
275,891
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
For the Nine Months Ended September 30,
2022
Revenues
$
247,172
$
44,036
$
—
$
291,208
Gain on asset sales and disposals
699
—
—
699
Total revenues and other income
$
247,871
$
44,036
$
—
$
291,907
Asset impairments
$
874
$
—
$
—
$
874
Net income (loss)
$
204,548
$
43,931
$
(43,205
)
$
205,274
Adjusted EBITDA (1)
$
221,987
$
33,950
$
(14,037
)
$
241,900
Cash flow provided by (used in) continuing
operations:
Operating activities
$
194,475
$
33,934
$
(30,459
)
$
197,950
Investing activities
$
1,837
$
—
$
(59
)
$
1,778
Financing activities
$
(614
)
$
—
$
(273,697
)
$
(274,311
)
Distributable cash flow (1)
$
196,312
$
33,934
$
(30,518
)
$
199,728
Free cash flow (1)
$
195,613
$
33,934
$
(30,518
)
$
199,029
(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)
2023
2022
2023
2023
2022
Coal sales volumes (tons)
Appalachia
Northern
284
440
390
1,053
1,260
Central
3,429
3,503
3,352
10,390
10,238
Southern
741
498
693
2,016
1,171
Total Appalachia
4,454
4,441
4,435
13,459
12,669
Illinois Basin
2,541
3,490
1,631
5,482
8,395
Northern Powder River Basin
1,364
835
881
3,330
2,772
Gulf Coast
479
188
139
676
324
Total coal sales volumes
8,838
8,954
7,086
22,947
24,160
Coal royalty revenue per ton
Appalachia
Northern
$
5.54
$
6.74
$
6.87
$
7.59
$
9.48
Central
8.20
9.04
8.49
8.89
10.85
Southern
11.88
9.78
10.85
12.41
14.28
Illinois Basin
3.98
2.57
3.15
3.63
2.30
Northern Powder River Basin
4.86
4.56
4.62
4.74
4.24
Gulf Coast
0.69
0.59
0.71
0.68
0.58
Combined average coal royalty revenue per
ton
6.29
5.85
6.77
7.04
7.08
Coal royalty revenues
Appalachia
Northern
$
1,573
$
2,965
$
2,681
$
7,991
$
11,946
Central
28,111
31,680
28,445
92,362
111,121
Southern
8,806
4,872
7,521
25,024
16,725
Total Appalachia
38,490
39,517
38,647
125,377
139,792
Illinois Basin
10,108
8,967
5,141
19,924
19,331
Northern Powder River Basin
6,627
3,805
4,066
15,768
11,751
Gulf Coast
330
111
98
461
187
Unadjusted coal royalty revenues
55,555
52,400
47,952
161,530
171,061
Coal royalty adjustment for minimum
leases
(11
)
(19
)
8
(3
)
(286
)
Total coal royalty revenues
$
55,544
$
52,381
$
47,960
$
161,527
$
170,775
Other revenues
Production lease minimum revenues
$
850
$
1,885
$
562
$
2,025
$
3,542
Minimum lease straight-line revenues
4,464
4,778
4,447
13,414
14,235
Carbon neutral initiative revenues
681
8,600
115
2,914
8,600
Wheelage revenues
2,385
2,977
3,284
9,538
11,073
Property tax revenues
1,770
1,360
1,470
4,710
4,527
Coal overriding royalty revenues
827
1,367
150
1,165
2,307
Lease amendment revenues
623
759
848
2,322
2,450
Aggregates royalty revenues
736
884
686
2,175
2,691
Oil and gas royalty revenues
324
6,170
1,214
5,126
10,890
Other revenues
329
218
271
895
705
Total other revenues
$
12,989
$
28,998
$
13,047
$
44,284
$
61,020
Royalty and other mineral rights
$
68,533
$
81,379
$
61,007
$
205,811
$
231,795
Transportation and processing services
revenues
4,579
5,969
3,270
11,447
15,377
Gain on asset sales and disposals
854
354
5
955
699
Total Mineral Rights segment revenues and
other income
$
73,966
$
87,702
$
64,282
$
218,213
$
247,871
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, 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: loss on extinguishment of debt
—
—
—
—
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 September
30, 2022
Net income (loss)
$
72,173
$
14,525
$
(12,143
)
$
74,555
Less: equity earnings from unconsolidated
investment
—
(14,556
)
—
(14,556
)
Add: total distributions from
unconsolidated investment
—
10,339
—
10,339
Add: interest expense, net
—
—
5,141
5,141
Add: loss on extinguishment of debt
—
—
2,484
2,484
Add: depreciation, depletion and
amortization
6,850
—
—
6,850
Add: asset impairments
812
—
—
812
Adjusted EBITDA
$
79,835
$
10,308
$
(4,518
)
$
85,625
For the Three Months Ended 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
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,
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: loss on extinguishment of debt
—
—
—
—
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
For the Nine Months Ended September 30,
2022
Net income (loss)
$
204,548
$
43,931
$
(43,205
)
$
205,274
Less: equity earnings from unconsolidated
investment
—
(44,036
)
—
(44,036
)
Add: total distributions from
unconsolidated investment
—
34,055
—
34,055
Add: interest expense, net
—
—
22,636
22,636
Add: loss on extinguishment of debt
—
—
6,532
6,532
Add: depreciation, depletion and
amortization
16,565
—
—
16,565
Add: asset impairments
874
—
—
874
Adjusted EBITDA
$
221,987
$
33,950
$
(14,037
)
$
241,900
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, 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 September
30, 2022
Net cash provided by (used in) operating
activities
$
75,948
$
10,309
$
(3,761
)
$
82,496
Add: proceeds from asset sales and
disposals
353
—
—
353
Add: return of long-term contract
receivable
575
—
—
575
Less: maintenance capital expenditures
—
—
(59
)
(59
)
Distributable cash flow
$
76,876
$
10,309
$
(3,820
)
$
83,365
Less: proceeds from asset sales and
disposals
(353
)
—
—
(353
)
Free cash flow
$
76,523
$
10,309
$
(3,820
)
$
83,012
Net cash provided by (used in) investing
activities
$
928
$
—
$
(59
)
$
869
Net cash used in financing activities
—
—
(81,784
)
(81,784
)
For the Three Months Ended 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
)
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,
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
)
For the Nine Months Ended September 30,
2022
Net cash provided by (used in) operating
activities
$
194,475
$
33,934
$
(30,459
)
$
197,950
Add: proceeds from asset sales and
disposals
699
—
—
699
Add: return of long-term contract
receivable
1,138
—
—
1,138
Less: maintenance capital expenditures
—
—
(59
)
(59
)
Distributable cash flow
$
196,312
$
33,934
$
(30,518
)
$
199,728
Less: proceeds from asset sales and
disposals
(699
)
—
—
(699
)
Free cash flow
$
195,613
$
33,934
$
(30,518
)
$
199,029
Net cash provided by (used in) investing
activities
$
1,837
$
—
$
(59
)
$
1,778
Net cash used in financing activities
(614
)
—
(273,697
)
(274,311
)
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,
2022
March 31,
2023
June 30,
2023
September 30,
2023
Last 12
Months
Net cash provided by operating
activities
$
68,888
$
72,900
$
81,350
$
78,942
$
302,080
Add: proceeds from asset sales and
disposals
384
101
5
855
1,345
Add: return of long-term contract
receivable
585
598
610
622
2,415
Less: maintenance capital expenditures
(59
)
(2
)
(8
)
—
(69
)
Distributable cash flow
$
69,798
$
73,597
$
81,957
$
80,419
$
305,771
Less: proceeds from asset sales and
disposals
(384
)
(101
)
(5
)
(855
)
(1,345
)
Free cash flow
$
69,414
$
73,496
$
81,952
$
79,564
$
304,426
Leverage Ratio
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
For the Three Months
Ended
(In
thousands)
December 31, 2021
March 31, 2022
June 30, 2022
September 30, 2022
Last 12 Months
Net income
$
55,641
$
63,899
$
66,820
$
74,555
$
260,915
Less: equity earnings from unconsolidated
investment
(10,625
)
(14,837
)
(14,643
)
(14,556
)
(54,661
)
Add: total distributions from
unconsolidated investment
7,350
13,230
10,486
10,339
41,405
Add: interest expense, net
9,568
9,387
8,108
5,141
32,204
Add: loss on extinguishment of debt
—
—
4,048
2,484
6,532
Add: depreciation, depletion and
amortization
3,930
3,868
5,847
6,850
20,495
Add: asset impairments
986
19
43
812
1,860
Adjusted EBITDA
$
66,850
$
75,566
$
80,709
$
85,625
$
308,750
Debt—at September 30, 2022
$
240,819
Leverage Ratio
0.8 x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231103376145/en/
Tiffany Sammis 713-751-7515 tsammis@nrplp.com
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Natural Resource Partners (NYSE:NRP)
Historical Stock Chart
Von Apr 2023 bis Apr 2024
