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Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2022 results as follows:
For the Three | Last Twelve | |||||
(In thousands) (Unaudited) | June 30, 2022 | |||||
Operating cash flow | $ | 63,123 | $ | 200,674 | ||
Free cash flow (1) | 63,686 | 202,318 | ||||
Cash flow cushion (last twelve months) (1) | 84,673 | |||||
Net income | $ | 66,820 | $ | 215,858 | ||
Adjusted EBITDA (1) | 80,709 | 260,842 | ||||
| _________________________ | |
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Highlights:
- $64 million Free Cash Flow in the second quarter of 2022
- Record Free Cash Flow for the first half of the year of $116 million
- Paid down $120.5 million of debt in the second quarter of 2022
- 1.2x Leverage Ratio at June 30, 2022, down from 4.6x at June 30, 2021
"The second quarter was another quarter of exceptional results for NRP with the generation of $64 million of free cash flow," said Craig Nunez, NRP's president and chief operating officer. "When combined with the $52 million of free cash flow generated in the first quarter, the first half of 2022 was the best annual start in the history of the Partnership. We took advantage of the strong financial results and positive outlook to retire $118 million of debt, driving our leverage ratio down to 1.2x at the end of the second quarter, which was a dramatic improvement from 4.6x just twelve months earlier. We believe current market conditions will allow us to continue de-risking the capital structure while continuing to provide distributions to our common unitholders."
NRP announced today that the Board of Directors of its general partner declared a cash distribution of $0.75 per common unit to be paid on August 23, 2022 to unitholders of record on August 16, 2022. This is a 67% increase as compared to the distribution paid for the prior year quarter and is consistent with the previous quarter. In addition, the board declared a $7.5 million cash distribution on the 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 $159.4 million at June 30, 2022, consisting of $59.4 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.
Segment Performance
Mineral Rights
Mineral Rights net income for the second quarter of 2022 increased $43.5 million as compared to the prior year period. Free cash flow for the second quarter increased $39.3 million as compared to the prior year period. These increases were primarily due to stronger metallurgical coal demand and pricing in 2022. Approximately 75% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2022.
Metallurgical coal prices have declined from their record highs during the first quarter of 2022 but remain supported by the ongoing tightness in the supply-demand balance for metallurgical coal. Metallurgical coal production continues to face ongoing labor shortages and global supply chain interruptions which limits the ability of operators to increase metallurgical coal production and should provide continued support for domestic and international prices in the near term despite slowing global economic growth and softening demand for steel.
Thermal coal demand and pricing remains strong due to increased demand for electricity, high natural gas prices and constrained growth in thermal coal production. Boycotts on Russian coal caused by the war in Ukraine are amplifying the tightness in thermal coal markets caused by labor shortages, global supply chain interruptions, and environmental and political pressures limiting the ability of operators to increase thermal coal production to meet domestic and international demand. NRP continues to believe the near-term outlook for thermal coal prices is positive.
NRP continues to identify alternative revenue opportunities across its large portfolio of land and mineral assets specifically within the transitional energy economy. NRP owns the rights to sequester carbon dioxide ("CO 2 ") on approximately 3.5 million mineral acres of pore space in the southern United States. As announced previously, in the first quarter of 2022 NRP executed on its first subsurface CO 2 sequestration transaction by granting Denbury the right to develop a world-class subsurface CO 2 sequestration project on 75,000 acres of underground pore space NRP owns in southwest Alabama with the potential to store over 300 million metric tons of CO 2 . While the timing and likelihood of additional cash flows being realized from further activities is uncertain, NRP believes its large ownership footprint throughout the United States will provide additional opportunities to create value in this regard and position NRP to benefit from the transitional energy economy with minimal capital investment.
Soda Ash
Soda Ash net income in the second quarter of 2022 increased $12.1 million as compared to the prior year period primarily as a result of increased international sales prices. Free cash flow in the second quarter of 2022 increased $10.5 million as compared to the prior year period due to Sisecam Wyoming reinstating its regular quarterly cash distributions beginning in the fourth quarter of 2021.
Strong demand growth for soda ash, driven by global secular trends including investments in renewable energy, the electrification of the global auto fleet and urbanization, coupled with constrained soda ash supply due in part to COVID-19 flash lockdowns in China and a partial closure of a Green River competitor due to a force majeure event allowed Sisecam Wyoming to deliver improved financial results in the second quarter of 2022.
Corporate and Financing
Corporate and Financing costs in the second quarter increased $4.1 million as compared to the prior year period primarily due to the loss on extinguishment of debt associated with the early retirement of debt, partially offset by lower interest expense as a result of less debt outstanding. Free cash flow in the second quarter of 2022 increased $1.0 million as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding.
During the second quarter of 2022, NRP retired $118.1 million of its 9.125% Senior Notes due 2025, which will save approximately $10.8 million annually in interest costs. These notes were purchased on the open market at a weighted average price of 102.275%, a discount to the current redemption price of 104.563%. In July, NRP was able to retire an additional $38.8 million of its 2025 Senior Notes, which will save an additional $3.5 million annually in interest costs. The current outstanding amount of 9.125% Senior Notes due 2025 is $143.1 million.
In addition, in May of 2022 NRP paid a first quarter 2022 cash distribution of $0.75 per common unit of NRP and a $7.5 million cash distribution on the preferred units.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link: https://conferencingportals.com/event/kfJdSHYP . After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com . To access the replay, please visit the Investor Relations section of NRP's website.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world's lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com . Further information about NRP is available on the Partnership's website at https://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, including Foresight Energy; Sisecam Wyoming LLC's trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
" Adjusted EBITDA " is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.
"Distributable cash flow" or " DCF " is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.
"Free cash flow" or " FCF " is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures and cash flow used in acquisition costs classified as investing or financing activities. FCF is calculated before mandatory debt repayments. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.
" Cash flow cushion " is a non-GAAP financial measure that we define as free cash flow less one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and redemption of PIK units, common unit distributions and warrant cash settlements. Cash flow cushion is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.
-Financial Tables and Reconciliation of Non-GAAP Measures Follow-
Natural Resource Partners L.P. | |||||||||||||||||||
Financial Tables | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||
(In thousands, except per unit data) | 2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||||
Revenues and other income | |||||||||||||||||||
Royalty and other mineral rights | $ | 79,333 | $ | 33,611 | $ | 71,083 | $ | 150,416 | $ | 66,538 | |||||||||
Transportation and processing services | 5,612 | 2,182 | 3,796 | 9,408 | 4,374 | ||||||||||||||
Equity in earnings of Sisecam Wyoming | 14,643 | 2,601 | 14,837 | 29,480 | 4,574 | ||||||||||||||
Gain on asset sales and disposals | 345 | 116 | — | 345 | 175 | ||||||||||||||
Total revenues and other income | $ | 99,933 | $ | 38,510 | $ | 89,716 | $ | 189,649 | $ | 75,661 | |||||||||
Operating expenses | |||||||||||||||||||
Operating and maintenance expenses | $ | 10,015 | $ | 5,170 | $ | 8,076 | $ | 18,091 | $ | 10,722 | |||||||||
Depreciation, depletion and amortization | 5,847 | 4,871 | 3,868 | 9,715 | 9,963 | ||||||||||||||
General and administrative expenses | 5,052 | 3,388 | 4,467 | 9,519 | 7,498 | ||||||||||||||
Asset impairments | 43 | 16 | 19 | 62 | 4,059 | ||||||||||||||
Total operating expenses | $ | 20,957 | $ | 13,445 | $ | 16,430 | $ | 37,387 | $ | 32,242 | |||||||||
Income from operations | $ | 78,976 | $ | 25,065 | $ | 73,286 | $ | 152,262 | $ | 43,419 | |||||||||
Other expenses, net | |||||||||||||||||||
Interest expense, net | $ | (8,108 | ) | $ | (9,683 | ) | $ | (9,387 | ) | $ | (17,495 | ) | $ | (19,656 | ) | ||||
Loss on extinguishment of debt | (4,048 | ) | — | — | (4,048 | ) | — | ||||||||||||
Total other expenses, net | $ | (12,156 | ) | $ | (9,683 | ) | $ | (9,387 | ) | $ | (21,543 | ) | $ | (19,656 | ) | ||||
Net income | $ | 66,820 | $ | 15,382 | $ | 63,899 | $ | 130,719 | $ | 23,763 | |||||||||
Less: income attributable to preferred unitholders | (7,500 | ) | (7,842 | ) | (7,500 | ) | (15,000 | ) | (15,569 | ) | |||||||||
Net income attributable to common unitholders and the general partner | $ | 59,320 | $ | 7,540 | $ | 56,399 | $ | 115,719 | $ | 8,194 | |||||||||
Net income attributable to common unitholders | $ | 58,134 | $ | 7,389 | $ | 55,271 | $ | 113,405 | $ | 8,030 | |||||||||
Net income attributable to the general partner | 1,186 | 151 | 1,128 | 2,314 | 164 | ||||||||||||||
Net income per common unit | |||||||||||||||||||
Basic | $ | 4.65 | $ | 0.60 | $ | 4.45 | $ | 9.10 | $ | 0.65 | |||||||||
Diluted | 3.29 | 0.56 | 3.11 | 6.50 | 0.65 | ||||||||||||||
Net income | $ | 66,820 | $ | 15,382 | $ | 63,899 | $ | 130,719 | $ | 23,763 | |||||||||
Comprehensive income (loss) from unconsolidated investment and other | (4,013 | ) | 2,533 | 2,545 | (1,468 | ) | 3,265 | ||||||||||||
Comprehensive income | $ | 62,807 | $ | 17,915 | $ | 66,444 | $ | 129,251 | $ | 27,028 | |||||||||
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) | 2022 | 2021 | 2022 | 2022 | 2021 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||||
Net income | $ | 66,820 | $ | 15,382 | $ | 63,899 | $ | 130,719 | $ | 23,763 | |||||||||
Adjustments to reconcile net income to net cash provided | |||||||||||||||||||
Depreciation, depletion and amortization | 5,847 | 4,871 | 3,868 | 9,715 | 9,963 | ||||||||||||||
Distributions from unconsolidated investment | 10,486 | — | 13,230 | 23,716 | 3,920 | ||||||||||||||
Equity earnings from unconsolidated investment | (14,643 | ) | (2,601 | ) | (14,837 | ) | (29,480 | ) | (4,574 | ) | |||||||||
Gain on asset sales and disposals | (345 | ) | (116 | ) | — | (345 | ) | (175 | ) | ||||||||||
Loss on extinguishment of debt | 4,048 | — | — | 4,048 | — | ||||||||||||||
Asset impairments | 43 | 16 | 19 | 62 | 4,059 | ||||||||||||||
Bad debt expense | (388 | ) | (737 | ) | 1,028 | 640 | (354 | ) | |||||||||||
Unit-based compensation expense | 1,339 | 593 | 1,448 | 2,787 | 1,719 | ||||||||||||||
Amortization of debt issuance costs and other | 1,297 | 977 | 375 | 1,672 | 1,246 | ||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | (5,033 | ) | 162 | (7,579 | ) | (12,612 | ) | (3,169 | ) | ||||||||||
Accounts payable | 73 | (83 | ) | (60 | ) | 13 | (93 | ) | |||||||||||
Accrued liabilities | 2,047 | 1,838 | (7,156 | ) | (5,109 | ) | (1,196 | ) | |||||||||||
Accrued interest | (7,413 | ) | (7,424 | ) | 7,250 | (163 | ) | (291 | ) | ||||||||||
Deferred revenue | (2,259 | ) | 677 | (7,316 | ) | (9,575 | ) | 531 | |||||||||||
Other items, net | 1,204 | (171 | ) | (1,838 | ) | (634 | ) | 1,235 | |||||||||||
Net cash provided by operating activities | $ | 63,123 | $ | 13,384 | $ | 52,331 | $ | 115,454 | $ | 36,584 | |||||||||
Cash flows from investing activities | |||||||||||||||||||
Proceeds from asset sales and disposals | $ | 346 | $ | 116 | $ | — | $ | 346 | $ | 175 | |||||||||
Return of long-term contract receivable | 563 | 541 | — | 563 | 1,082 | ||||||||||||||
Net cash provided by investing activities | $ | 909 | $ | 657 | $ | — | $ | 909 | $ | 1,257 | |||||||||
Cash flows from financing activities | |||||||||||||||||||
Debt repayments | $ | (120,474 | ) | $ | (2,365 | ) | $ | (16,697 | ) | $ | (137,171 | ) | $ | (19,061 | ) | ||||
Distributions to common unitholders and the general | (9,570 | ) | (5,672 | ) | (5,672 | ) | (15,242 | ) | (11,302 | ) | |||||||||
Distributions to preferred unitholders | (7,500 | ) | (3,864 | ) | (7,500 | ) | (15,000 | ) | (7,670 | ) | |||||||||
Redemption of preferred units paid-in-kind | — | — | (19,579 | ) | (19,579 | ) | — | ||||||||||||
Acquisition of non-controlling interest in BRP | — | (1,000 | ) | — | — | (1,000 | ) | ||||||||||||
Other items, net | (2,722 | ) | 1 | (2,813 | ) | (5,535 | ) | (690 | ) | ||||||||||
Net cash used in financing activities | $ | (140,266 | ) | $ | (12,900 | ) | $ | (52,261 | ) | $ | (192,527 | ) | $ | (39,723 | ) | ||||
Net increase (decrease) in cash and cash equivalents | $ | (76,234 | ) | $ | 1,141 | $ | 70 | $ | (76,164 | ) | $ | (1,882 | ) | ||||||
Cash and cash equivalents at beginning of period | 135,590 | 96,767 | 135,520 | 135,520 | 99,790 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 59,356 | $ | 97,908 | $ | 135,590 | $ | 59,356 | $ | 97,908 | |||||||||
Supplemental cash flow information: | |||||||||||||||||||
Cash paid for interest | $ | 15,128 | $ | 16,611 | $ | 1,644 | $ | 16,772 | $ | 18,931 | |||||||||
Non-cash investing and financing activities: | |||||||||||||||||||
Preferred unit distributions paid-in-kind | $ | — | $ | 3,863 | $ | — | $ | — | $ | 7,669 | |||||||||
Natural Resource Partners L.P. | |||||
Financial Tables | |||||
Consolidated Balance Sheets | |||||
June 30, | December 31, | ||||
(In thousands, except unit data) | 2022 | 2021 | |||
ASSETS | (Unaudited) | ||||
Current assets | |||||
Cash and cash equivalents | $ | 59,356 | $ | 135,520 | |
Accounts receivable, net | 37,288 | 24,538 | |||
Other current assets, net | 3,204 | 2,723 | |||
Total current assets | $ | 99,848 | $ | 162,781 | |
Land | 24,008 | 24,008 | |||
Mineral rights, net | 428,505 | 437,697 | |||
Intangible assets, net | 15,634 | 16,130 | |||
Equity in unconsolidated investment | 280,300 | 276,004 | |||
Long-term contract receivable, net | 30,182 | 31,371 | |||
Other long-term assets, net | 4,664 | 5,832 | |||
Total assets | $ | 883,141 | $ | 953,823 | |
LIABILITIES AND CAPITAL | |||||
Current liabilities | |||||
Accounts payable | $ | 1,969 | $ | 1,956 | |
Accrued liabilities | 5,507 | 10,297 | |||
Accrued interest | 1,050 | 1,213 | |||
Current portion of deferred revenue | 11,475 | 11,817 | |||
Current portion of long-term debt, net | 39,070 | 39,102 | |||
Total current liabilities | $ | 59,071 | $ | 64,385 | |
Deferred revenue | 40,811 | 50,045 | |||
Long-term debt, net | 259,296 | 394,443 | |||
Other non-current liabilities | 5,012 | 5,018 | |||
Total liabilities | $ | 364,190 | $ | 513,891 | |
Commitments and contingencies | |||||
Class A Convertible Preferred Units (250,000 and 269,321 units issued and outstanding at | $ | 164,587 | $ | 183,908 | |
Partners' capital: | |||||
Common unitholders' interest (12,505,996 and 12,351,306 units issued and outstanding | $ | 300,753 | $ | 203,062 | |
General partner's interest | 3,904 | 1,787 | |||
Warrant holders' interest | 47,964 | 47,964 | |||
Accumulated other comprehensive income | 1,743 | 3,211 | |||
Total partners' capital | $ | 354,364 | $ | 256,024 | |
Total liabilities and partners' capital | $ | 883,141 | $ | 953,823 | |
Natural Resource Partners L.P. | ||||||||||||||||||||
Financial Tables | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Consolidated Statements of Partners' Capital | ||||||||||||||||||||
Common Unitholders | General | Warrant | Accumulated | Total Partners' | ||||||||||||||||
(In thousands) | Units | Amounts | ||||||||||||||||||
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) | |||||||||||||||||||
Common Unitholders | General | Warrant | Accumulated | Total Partners' | |||||||||||||||
(In thousands) | Units | Amounts | |||||||||||||||||
Balance at December 31, 2020 | 12,261 | $ | 136,927 | $ | 459 | $ | 66,816 | $ | 322 | $ | 204,524 | ||||||||
Net income (1) | — | 8,213 | 168 | — | — | 8,381 | |||||||||||||
Distributions to common unitholders and the general partner | — | (5,517 | ) | (113 | ) | — | — | (5,630 | ) | ||||||||||
Distributions to preferred unitholders | — | (7,461 | ) | (152 | ) | — | — | (7,613 | ) | ||||||||||
Issuance of unit-based awards | 90 | — | — | — | — | — | |||||||||||||
Unit-based awards amortization and vesting, net | — | 215 | — | — | — | 215 | |||||||||||||
Capital contribution | — | — | 32 | — | — | 32 | |||||||||||||
Comprehensive income from unconsolidated investment and other | — | — | — | — | 732 | 732 | |||||||||||||
Balance at March 31, 2021 | 12,351 | $ | 132,377 | $ | 394 | $ | 66,816 | $ | 1,054 | $ | 200,641 | ||||||||
Net income (2) | — | 15,074 | 308 | — | — | 15,382 | |||||||||||||
Distributions to common unitholders and the general partner | — | (5,559 | ) | (113 | ) | — | — | (5,672 | ) | ||||||||||
Distributions to preferred unitholders | — | (7,571 | ) | (155 | ) | — | — | (7,726 | ) | ||||||||||
Unit-based awards amortization and vesting | — | 515 | — | — | — | 515 | |||||||||||||
Comprehensive income from unconsolidated investment and other | — | — | — | — | 2,533 | 2,533 | |||||||||||||
Balance at June 30, 2021 | 12,351 | $ | 134,836 | $ | 434 | $ | 66,816 | $ | 3,587 | $ | 205,673 | ||||||||
| ________________ | |
| (1) | Net income includes $7.7 million of income attributable to preferred unitholders that accumulated during the period, of which $7.6 million is allocated to the common unitholders and $0.2 million is allocated to the general partner. |
| (2) | Net income includes $7.8 million of income attributable to preferred unitholders that accumulated during the period, of which $7.7 million is allocated to the common unitholders and $0.2 million is allocated to the general partner. |
Natural Resource Partners L.P. | ||||||||||||||||
Financial Tables | ||||||||||||||||
(Unaudited) | ||||||||||||||||
The following tables present NRP's unaudited business results by segment for the three months ended June 30, 2022 and 2021 and March 31, 2022: | ||||||||||||||||
Operating Segments | ||||||||||||||||
Mineral Rights | Corporate and | |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
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 June 30, 2021 | ||||||||||||||||
Revenues | $ | 35,793 | $ | 2,601 | $ | — | $ | 38,394 | ||||||||
Gain on asset sales and disposals | 116 | — | — | 116 | ||||||||||||
Total revenues and other income | $ | 35,909 | $ | 2,601 | $ | — | $ | 38,510 | ||||||||
Asset impairments | $ | 16 | $ | — | $ | — | $ | 16 | ||||||||
Net income (loss) | $ | 25,886 | $ | 2,566 | $ | (13,070 | ) | $ | 15,382 | |||||||
Adjusted EBITDA (1) | $ | 30,774 | $ | (35 | ) | $ | (3,388 | ) | $ | 27,351 | ||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 32,028 | $ | (35 | ) | $ | (18,609 | ) | $ | 13,384 | ||||||
Investing activities | $ | 657 | $ | — | $ | — | $ | 657 | ||||||||
Financing activities | $ | (1,000 | ) | $ | — | $ | (11,900 | ) | $ | (12,900 | ) | |||||
Distributable cash flow (1) | $ | 32,685 | $ | (35 | ) | $ | (18,609 | ) | $ | 14,041 | ||||||
Free cash flow (1) | $ | 31,569 | $ | (35 | ) | $ | (18,609 | ) | $ | 12,925 | ||||||
For the Three Months Ended March 31, 2022 | ||||||||||||||||
Revenues | $ | 74,879 | $ | 14,837 | $ | — | $ | 89,716 | ||||||||
Gain on asset sales and disposals | — | — | — | — | ||||||||||||
Total revenues and other income | $ | 74,879 | $ | 14,837 | $ | — | $ | 89,716 | ||||||||
Asset impairments | $ | 19 | $ | — | $ | — | $ | 19 | ||||||||
Net income (loss) | $ | 62,967 | $ | 14,786 | $ | (13,854 | ) | $ | 63,899 | |||||||
Adjusted EBITDA (1) | $ | 66,854 | $ | 13,179 | $ | (4,467 | ) | $ | 75,566 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 48,176 | $ | 13,195 | $ | (9,040 | ) | $ | 52,331 | |||||||
Investing activities | $ | — | $ | — | $ | — | $ | — | ||||||||
Financing activities | $ | (614 | ) | $ | — | $ | (51,647 | ) | $ | (52,261 | ) | |||||
Distributable cash flow (1) | $ | 48,176 | $ | 13,195 | $ | (9,040 | ) | $ | 52,331 | |||||||
Free cash flow (1) | $ | 48,176 | $ | 13,195 | $ | (9,040 | ) | $ | 52,331 | |||||||
| _____________________ | |
| (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, 2022 and 2021: | |||||||||||||||
Operating Segments | |||||||||||||||
Mineral Rights | Corporate and | ||||||||||||||
(In thousands) | Soda Ash | Total | |||||||||||||
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 | ||||||
For the Six Months Ended June 30, 2021 | |||||||||||||||
Revenues | $ | 70,912 | $ | 4,574 | $ | — | $ | 75,486 | |||||||
Gain on asset sales and disposals | 175 | — | — | 175 | |||||||||||
Total revenues and other income | $ | 71,087 | $ | 4,574 | $ | — | $ | 75,661 | |||||||
Asset impairments | $ | 4,059 | $ | — | $ | — | $ | 4,059 | |||||||
Net income (loss) | $ | 46,374 | $ | 4,519 | $ | (27,130 | ) | $ | 23,763 | ||||||
Adjusted EBITDA (1) | $ | 60,420 | $ | 3,865 | $ | (7,498 | ) | $ | 56,787 | ||||||
Cash flow provided by (used in) continuing operations: | |||||||||||||||
Operating activities | $ | 57,990 | $ | 3,853 | $ | (25,259 | ) | $ | 36,584 | ||||||
Investing activities | $ | 1,257 | $ | — | $ | — | $ | 1,257 | |||||||
Financing activities | $ | (1,132 | ) | $ | — | $ | (38,591 | ) | $ | (39,723 | ) | ||||
Distributable cash flow (1) | $ | 59,247 | $ | 3,853 | $ | (25,259 | ) | $ | 37,841 | ||||||
Free cash flow (1) | $ | 58,072 | $ | 3,853 | $ | (25,259 | ) | $ | 36,666 | ||||||
| ___________________ | |
| (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) | 2022 | 2021 | 2022 | 2022 | 2021 | |||||||||||||||
Coal sales volumes (tons) | ||||||||||||||||||||
Appalachia | ||||||||||||||||||||
Northern | 392 | 405 | 428 | 820 | 525 | |||||||||||||||
Central | 3,484 | 2,975 | 3,251 | 6,735 | 5,625 | |||||||||||||||
Southern | 312 | 316 | 361 | 673 | 416 | |||||||||||||||
Total Appalachia | 4,188 | 3,696 | 4,040 | 8,228 | 6,566 | |||||||||||||||
Illinois Basin | 3,403 | 2,640 | 1,502 | 4,905 | 5,298 | |||||||||||||||
Northern Powder River Basin | 699 | 185 | 1,238 | 1,937 | 1,244 | |||||||||||||||
Gulf Coast | 67 | — | 69 | 136 | — | |||||||||||||||
Total coal sales volumes | 8,357 | 6,521 | 6,849 | 15,206 | 13,108 | |||||||||||||||
Coal royalty revenue per ton | ||||||||||||||||||||
Appalachia | ||||||||||||||||||||
Northern | $ | 11.84 | $ | 4.45 | $ | 10.14 | $ | 10.95 | $ | 4.27 | ||||||||||
Central | 12.19 | 4.62 | 11.37 | 11.80 | 4.44 | |||||||||||||||
Southern | 17.67 | 7.63 | 17.56 | 17.61 | 7.06 | |||||||||||||||
Illinois Basin | 2.07 | 2.01 | 2.20 | 2.11 | 2.04 | |||||||||||||||
Northern Powder River Basin | 4.74 | 4.15 | 3.74 | 4.10 | 3.49 | |||||||||||||||
Gulf Coast | 0.57 | — | 0.55 | 0.56 | — | |||||||||||||||
Combined average coal royalty revenue per ton | 7.54 | 3.69 | 8.12 | 7.80 | 3.45 | |||||||||||||||
Coal royalty revenues | ||||||||||||||||||||
Appalachia | ||||||||||||||||||||
Northern | $ | 4,640 | $ | 1,804 | $ | 4,341 | $ | 8,981 | $ | 2,241 | ||||||||||
Central | 42,461 | 13,756 | 36,980 | 79,441 | 24,951 | |||||||||||||||
Southern | 5,513 | 2,410 | 6,340 | 11,853 | 2,938 | |||||||||||||||
Total Appalachia | 52,614 | 17,970 | 47,661 | 100,275 | 30,130 | |||||||||||||||
Illinois Basin | 7,061 | 5,300 | 3,303 | 10,364 | 10,783 | |||||||||||||||
Northern Powder River Basin | 3,314 | 768 | 4,632 | 7,946 | 4,341 | |||||||||||||||
Gulf Coast | 38 | — | 38 | 76 | — | |||||||||||||||
Unadjusted coal royalty revenues | 63,027 | 24,038 | 55,634 | 118,661 | 45,254 | |||||||||||||||
Coal royalty adjustment for minimum leases | (82 | ) | (5,740 | ) | (185 | ) | (267 | ) | (11,591 | ) | ||||||||||
Total coal royalty revenues | $ | 62,945 | $ | 18,298 | $ | 55,449 | $ | 118,394 | $ | 33,663 | ||||||||||
Other revenues | ||||||||||||||||||||
Production lease minimum revenues | $ | 65 | $ | 3,556 | $ | 1,592 | $ | 1,657 | $ | 7,006 | ||||||||||
Minimum lease straight-line revenues | 4,674 | 4,869 | 4,783 | 9,457 | 10,965 | |||||||||||||||
Wheelage revenues | 4,379 | 1,844 | 3,717 | 8,096 | 3,625 | |||||||||||||||
Property tax revenues | 1,695 | 1,587 | 1,472 | 3,167 | 3,056 | |||||||||||||||
Coal overriding royalty revenues | 682 | 976 | 258 | 940 | 2,835 | |||||||||||||||
Lease amendment revenues | 811 | 772 | 880 | 1,691 | 1,640 | |||||||||||||||
Aggregates royalty revenues | 1,037 | 456 | 770 | 1,807 | 910 | |||||||||||||||
Oil and gas royalty revenues | 2,906 | 900 | 1,814 | 4,720 | 2,266 | |||||||||||||||
Other revenues | 139 | 353 | 348 | 487 | 572 | |||||||||||||||
Total other revenues | $ | 16,388 | $ | 15,313 | $ | 15,634 | $ | 32,022 | $ | 32,875 | ||||||||||
Royalty and other mineral rights | $ | 79,333 | $ | 33,611 | $ | 71,083 | $ | 150,416 | $ | 66,538 | ||||||||||
Transportation and processing services revenues | 5,612 | 2,182 | 3,796 | 9,408 | 4,374 | |||||||||||||||
Gain on asset sales and disposals | 345 | 116 | — | 345 | 175 | |||||||||||||||
Total Mineral Rights segment revenues and other income | $ | 85,290 | $ | 35,909 | $ | 74,879 | $ | 160,169 | $ | 71,087 | ||||||||||
Natural Resource Partners L.P. | |||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
Adjusted EBITDA | |||||||||||||||
Mineral Rights | Corporate and | ||||||||||||||
(In thousands) | Soda Ash | Total | |||||||||||||
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 June 30, 2021 | |||||||||||||||
Net income (loss) | $ | 25,886 | $ | 2,566 | $ | (13,070 | ) | $ | 15,382 | ||||||
Less: equity earnings from unconsolidated investment | — | (2,601 | ) | — | (2,601 | ) | |||||||||
Add: total distributions from unconsolidated investment | — | — | — | — | |||||||||||
Add: interest expense, net | 1 | — | 9,682 | 9,683 | |||||||||||
Add: loss on extinguishment of debt | — | — | — | — | |||||||||||
Add: depreciation, depletion and amortization | 4,871 | — | — | 4,871 | |||||||||||
Add: asset impairments | 16 | — | — | 16 | |||||||||||
Adjusted EBITDA | $ | 30,774 | $ | (35 | ) | $ | (3,388 | ) | $ | 27,351 | |||||
For the Three Months Ended March 31, 2022 | |||||||||||||||
Net income (loss) | $ | 62,967 | $ | 14,786 | (13,854 | ) | $ | 63,899 | |||||||
Less: equity earnings from unconsolidated investment | — | (14,837 | ) | — | (14,837 | ) | |||||||||
Add: total distributions from unconsolidated investment | — | 13,230 | — | 13,230 | |||||||||||
Add: interest expense, net | — | — | 9,387 | 9,387 | |||||||||||
Add: loss on extinguishment of debt | — | — | — | — | |||||||||||
Add: depreciation, depletion and amortization | 3,868 | — | — | 3,868 | |||||||||||
Add: asset impairments | 19 | — | — | 19 | |||||||||||
Adjusted EBITDA | $ | 66,854 | $ | 13,179 | $ | (4,467 | ) | $ | 75,566 | ||||||
Natural Resource Partners L.P. | |||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
Adjusted EBITDA | |||||||||||||||
Mineral Rights | Corporate and | ||||||||||||||
(In thousands) | Soda Ash | Total | |||||||||||||
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 | ||||||
For the Six Months Ended June 30, 2021 | |||||||||||||||
Net income (loss) | $ | 46,374 | $ | 4,519 | $ | (27,130 | ) | $ | 23,763 | ||||||
Less: equity earnings from unconsolidated investment | — | (4,574 | ) | — | (4,574 | ) | |||||||||
Add: total distributions from unconsolidated investment | — | 3,920 | — | 3,920 | |||||||||||
Add: interest expense, net | 24 | — | 19,632 | 19,656 | |||||||||||
Add: loss on extinguishment of debt | — | — | — | — | |||||||||||
Add: depreciation, depletion and amortization | 9,963 | — | — | 9,963 | |||||||||||
Add: asset impairments | 4,059 | — | — | 4,059 | |||||||||||
Adjusted EBITDA | $ | 60,420 | $ | 3,865 | $ | (7,498 | ) | $ | 56,787 | ||||||
Natural Resource Partners L.P. | ||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Distributable Cash Flow and Free Cash Flow | ||||||||||||||||
Mineral Rights | Corporate and | |||||||||||||||
(In thousands) | Soda Ash | Total | ||||||||||||||
For the Three Months Ended June 30, 2022 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 70,351 | $ | 10,430 | $ | (17,658 | ) | $ | 63,123 | |||||||
Add: proceeds from asset sales and disposals | 346 | — | — | 346 | ||||||||||||
Add: return of long-term contract receivable | 563 | — | — | 563 | ||||||||||||
Distributable cash flow | $ | 71,260 | $ | 10,430 | $ | (17,658 | ) | $ | 64,032 | |||||||
Less: proceeds from asset sales and disposals | (346 | ) | — | — | (346 | ) | ||||||||||
Less: acquisition costs | — | — | — | — | ||||||||||||
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 June 30, 2021 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 32,028 | $ | (35 | ) | $ | (18,609 | ) | $ | 13,384 | ||||||
Add: proceeds from asset sales and disposals | 116 | — | — | 116 | ||||||||||||
Add: return of long-term contract receivable | 541 | — | — | 541 | ||||||||||||
Distributable cash flow | $ | 32,685 | $ | (35 | ) | $ | (18,609 | ) | $ | 14,041 | ||||||
Less: proceeds from asset sales and disposals | (116 | ) | — | — | (116 | ) | ||||||||||
Less: acquisition costs | (1,000 | ) | — | — | (1,000 | ) | ||||||||||
Free cash flow | $ | 31,569 | $ | (35 | ) | $ | (18,609 | ) | $ | 12,925 | ||||||
Net cash provided by investing activities | $ | 657 | $ | — | $ | — | $ | 657 | ||||||||
Net cash used in financing activities | (1,000 | ) | — | (11,900 | ) | (12,900 | ) | |||||||||
For the Three Months Ended March 31, 2022 | ||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 48,176 | $ | 13,195 | $ | (9,040 | ) | $ | 52,331 | |||||||
Add: proceeds from asset sales and disposals | — | — | — | — | ||||||||||||
Add: return of long-term contract receivable | — | — | — | — | ||||||||||||
Distributable cash flow | $ | 48,176 | $ | 13,195 | $ | (9,040 | ) | $ | 52,331 | |||||||
Less: proceeds from asset sales and disposals | — | — | — | — | ||||||||||||
Less: acquisition costs | — | — | — | — | ||||||||||||
Free cash flow | $ | 48,176 | $ | 13,195 | $ | (9,040 | ) | $ | 52,331 | |||||||
Net cash provided by investing activities | $ | — | $ | — | $ | — | $ | — | ||||||||
Net cash used in financing activities | (614 | ) | — | (51,647 | ) | (52,261 | ) | |||||||||
Natural Resource Partners L.P. | |||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
Distributable Cash Flow and Free Cash Flow | |||||||||||||||
Mineral Rights | Corporate and | ||||||||||||||
(In thousands) | Soda Ash | Total | |||||||||||||
For the Six Months Ended June 30, 2022 | |||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 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 | |||||||||||
Distributable cash flow | $ | 119,436 | $ | 23,625 | $ | (26,698 | ) | $ | 116,363 | ||||||
Less: proceeds from asset sales and disposals | (346 | ) | — | — | (346 | ) | |||||||||
Less: acquisition costs | — | — | — | — | |||||||||||
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 | ) | ||||||||
For the Six Months Ended June 30, 2021 | |||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | $ | 57,990 | $ | 3,853 | (25,259 | ) | $ | 36,584 | |||||||
Add: proceeds from asset sales and disposals | 175 | — | — | 175 | |||||||||||
Add: return of long-term contract receivable | 1,082 | — | — | 1,082 | |||||||||||
Distributable cash flow | $ | 59,247 | $ | 3,853 | $ | (25,259 | ) | $ | 37,841 | ||||||
Less: proceeds from asset sales and disposals | (175 | ) | — | — | (175 | ) | |||||||||
Less: acquisition costs | (1,000 | ) | — | — | (1,000 | ) | |||||||||
Free cash flow | $ | 58,072 | $ | 3,853 | $ | (25,259 | ) | $ | 36,666 | ||||||
Net cash provided by investing activities | $ | 1,257 | $ | — | $ | — | $ | 1,257 | |||||||
Net cash used in financing activities | (1,132 | ) | — | (38,591 | ) | (39,723 | ) | ||||||||
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Cash Flow Cushion | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | September 30, | December 31, | March 31, | June 30, | Last 12 | |||||||||||||||
Net cash provided by operating activities of continuing operations | $ | 30,059 | $ | 55,161 | $ | 52,331 | $ | 63,123 | $ | 200,674 | ||||||||||
Add: proceeds from asset sales and disposals | 74 | — | — | 346 | 420 | |||||||||||||||
Add: return of long-term contract receivable | 540 | 541 | — | 563 | 1,644 | |||||||||||||||
Distributable cash flow | $ | 30,673 | $ | 55,702 | $ | 52,331 | $ | 64,032 | $ | 202,738 | ||||||||||
Less: proceeds from asset sales and disposals | (74 | ) | — | — | (346 | ) | (420 | ) | ||||||||||||
Free cash flow | $ | 30,599 | $ | 55,702 | $ | 52,331 | $ | 63,686 | $ | 202,318 | ||||||||||
Less: mandatory Opco debt repayments | — | (20,335 | ) | (16,697 | ) | (2,365 | ) | (39,397 | ) | |||||||||||
Less: preferred unit distributions and redemption of PIK units | (3,921 | ) | (3,980 | ) | (27,079 | ) | (7,500 | ) | (42,480 | ) | ||||||||||
Less: common unit distributions | (5,671 | ) | (5,672 | ) | (5,672 | ) | (9,570 | ) | (26,585 | ) | ||||||||||
Less: warrant cash settlement | — | (9,183 | ) | — | — | (9,183 | ) | |||||||||||||
Cash flow cushion | $ | 21,007 | $ | 16,532 | $ | 2,883 | $ | 44,251 | $ | 84,673 | ||||||||||
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Leverage Ratio | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | September 30, | December 31, | March 31, | June 30, | Last Twelve | |||||||||||||||
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) | 1.2 x | |||||||||||||||||||
| ___________________ | |
| (1) | Leverage Ratio is calculated as the outstanding principal of NRP's debt as of June 30, 2022 divided by the last twelve months' Adjusted EBITDA. Note that Adjusted EBITDA under the indenture governing NRP's 2025 parent company notes may be different than the amount shown above. However, NRP's last twelve months Leverage ratio as of June 30, 2022, was 1.2x as calculated under the indenture governing NRP's 2025 parent company notes. |
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | September 30, | December 31, | March 31, | June 30, | Last Twelve | |||||||||||||||
Net income | $ | 7,216 | $ | 14,687 | $ | 8,381 | $ | 15,382 | $ | 45,666 | ||||||||||
Less: equity earnings from unconsolidated investment | (1,986 | ) | (5,528 | ) | (1,973 | ) | (2,601 | ) | (12,088 | ) | ||||||||||
Add: total distributions from unconsolidated investment | — | — | 3,920 | — | 3,920 | |||||||||||||||
Add: interest expense, net | 10,254 | 10,077 | 9,973 | 9,683 | 39,987 | |||||||||||||||
Add: depreciation, depletion and amortization | 2,111 | 3,013 | 5,092 | 4,871 | 15,087 | |||||||||||||||
Add: asset impairments | 934 | 2,668 | 4,043 | 16 | 7,661 | |||||||||||||||
Adjusted EBITDA | $ | 18,529 | $ | 24,917 | $ | 29,436 | $ | 27,351 | $ | 100,233 | ||||||||||
Debt—at June 30, 2021 | $ | 458,819 | ||||||||||||||||||
Leverage Ratio (1) | 4.6 x | |||||||||||||||||||
| ___________________ | |
| (1) | Leverage Ratio is calculated as the outstanding principal of NRP's debt as of June 30, 2021 divided by the last twelve months' Adjusted EBITDA |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005101/en/
Tiffany Sammis
713-751-7515
tsammis@nrplp.com
Figure 1: Plan view of the Youanmi Gold Project featuring drill hole collar locations and 2024 Resource outline overprinted on aerial photography
Image 1 – Diamond drilling at Viani
