Natural Resource Partners L.P. Reports Second Quarter 2022 Results and Declares Second Quarter 2022 Distribution of $0.75 per Unit

Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2022 results as follows:

	For the Three Months Ended		Last Twelve Months Ended
(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 by operating activities of continuing operations:
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 partner		(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 June 30, 2022 and December 31, 2021, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at June 30, 2022 and December 31, 2021)	$	164,587	$	183,908
Partners' capital:
Common unitholders' interest (12,505,996 and 12,351,306 units issued and outstanding at June 30, 2022 and December 31, 2021, respectively),	$	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 Partner			Warrant Holders		Accumulated Other Comprehensive Income			Total Partners' Capital
	Common Unitholders
(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 Partner			Warrant Holders		Accumulated Other Comprehensive Income		Total Partners' Capital
	Common Unitholders
(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 Financing
(In thousands)	Mineral Rights			Soda Ash			Corporate and Financing			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 Financing
(In thousands)	Mineral Rights			Soda Ash		Corporate and Financing			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 Financing
(In thousands)	Mineral Rights		Soda Ash			Corporate and Financing			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 Financing
(In thousands)	Mineral Rights		Soda Ash			Corporate and Financing			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 Financing
(In thousands)	Mineral Rights			Soda Ash			Corporate and Financing			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 Financing
(In thousands)	Mineral Rights			Soda Ash		Corporate and Financing			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, 2021			December 31, 2021			March 31, 2022			June 30, 2022			Last 12 Months
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, 2021			December 31, 2021			March 31, 2022			June 30, 2022			Last Twelve Months
Net income	$	29,498		$	55,641		$	63,899		$	66,820		$	215,858
Less: equity earnings from unconsolidated investment		(6,672	)		(10,625	)		(14,837	)		(14,643	)		(46,777	)
Add: total distributions from unconsolidated investment		—			7,350			13,230			10,486			31,066
Add: interest expense, net		9,652			9,568			9,387			8,108			36,715
Add: loss on extinguishment of debt		—			—			—			4,048			4,048
Add: depreciation, depletion and amortization		5,182			3,930			3,868			5,847			18,827
Add: asset impairments		57			986			19			43			1,105
Adjusted EBITDA	$	37,717		$	66,850		$	75,566		$	80,709		$	260,842

Debt—at June 30, 2022													$	301,313

Leverage Ratio ⁽¹⁾													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, 2020			December 31, 2020			March 31, 2021			June 30, 2021			Last Twelve Months
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

News Provided by Business Wire via QuoteMedia

nyse:nrp

NRP

Natural Resource Partners L.P. Reports Third Quarter 2022 Results and Declares Third Quarter 2022 Distribution of $0.75 per Unit

Natural Resource Partners L.P. (NYSE:NRP) today reported third quarter 2022 results as follows:

______________________________
(1)		Operating cash flow for the nine months ended September 30, 2022 was $197,950.
(2)		See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

Highlights:

G enerated record free cash flow of $83 million in the third quarter of 2022, and $199 million in the first nine months of 2022
Closed new five-year, $130 million revolving credit facility
Announced full repayment of outstanding 9.125% Senior Notes due 2025
Executed second subsurface carbon dioxide ("CO ₂ ") sequestration lease
Pro-forma leverage ratio of 0.6x following the repayment of 9.125% Senior Notes, down from 4.6x as of June 30, 2021

"NRP's record year continues with third quarter free cash flow generation of $83 million, bringing our year-to-date free cash flow to $199 million, primarily due to the strong results of our Mineral Rights segment," stated Craig Nunez, NRP's president and chief operating officer. "It is fitting that the 20th anniversary of the Partnership's initial public offering coincides with the best operating performance in our history. Not only has this year been exceptional from a free cash flow perspective, but we continue to execute on our strategy to de-risk the capital structure and grow our carbon neutral portfolio. During the third quarter, we closed a new five-year revolving credit facility that increased our borrowing capacity from $100 million to $130 million. We also announced the redemption of our outstanding 9.125% Senior Notes due 2025 and fully repaid the Senior Notes in October. After giving effect to the redemption, NRP has permanently retired $249 million of debt this year. In the third quarter we also executed our second subsurface CO ₂ sequestration lease for an estimated carbon storage capacity of at least 500 million metric tons of CO ₂ . NRP currently has approximately 140,000 acres of pore space under lease for carbon sequestration with estimated potential CO ₂ storage capacity of at least 800 million metric tons. We continue to believe that de-risking the Partnership and leveraging our asset footprint in this regard, while continuing to provide unitholder distributions, is the right strategy to maximize unitholder value."

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 November 22, 2022 to unitholders of record on November 15, 2022. In addition, the board declared a $7.5 million cash distribution on its outstanding preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the board determines is necessary for future operating and capital needs.

NRP's liquidity was $190.9 million at September 30, 2022, consisting of $60.9 million of cash and $130.0 million of borrowing capacity available under its recently amended revolving credit facility.

Segment Performance

Mineral Rights

Mineral Rights net income for the third quarter of 2022 increased $35.6 million as compared to the prior year period. Free cash flow for the third quarter increased $42.0 million as compared to the prior year period. These increases were primarily due to stronger metallurgical coal demand and pricing in 2022. Approximately 65% of coal royalty revenues and approximately 40% of coal royalty sales volumes were derived from metallurgical coal in the third quarter of 2022.

Metallurgical and thermal coal prices remain supported by ongoing tightness in the supply-demand balance for coal. Many operators are limited in their ability to increase production due to ongoing labor shortages, global supply chain interruptions, and access to capital. Thermal coal prices are further supported by the European Union's ban on Russian coal due to the war in Ukraine, as well as increased natural gas prices and demand for electricity. While metallurgical markets are seeing weakened demand for steel, and thermal markets continue to face ongoing environmental and political pressures, supply constraints should provide continued support for metallurgical and thermal coal prices for the foreseeable future.

NRP continues to identify alternative revenue opportunities across its large portfolio of land and mineral assets. NRP owns the rights to sequester CO ₂ on approximately 3.5 million acres of pore space in the southern United States. As announced previously, in the first quarter of 2022 NRP executed its first subsurface CO ₂ sequestration lease 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 . In October of 2022, NRP announced its second subsurface CO ₂ transaction with the execution of a lease for approximately 65,000 acres of pore space controlled by NRP near southeast Texas with estimated storage capacity of at least 500 million metric tons of CO ₂ . In total, NRP has approximately 140,000 acres of pore space under lease for carbon sequestration with estimated CO ₂ storage capacity of 800 million metric tons. While the timing and likelihood of additional cash flows being realized from these activities is uncertain, NRP believes its large ownership footprint throughout the United States will provide additional opportunities to create value in this regard and position NRP as a key beneficiary of the transitional energy economy with minimal capital investment.

Soda Ash

Soda Ash net income in the third quarter of 2022 increased $7.9 million as compared to the prior year period primarily as a result of increased international sales prices. Free cash flow in the third quarter of 2022 increased $10.3 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.

Supply interruptions in China and input cost inflation which significantly increased the global marginal cost of soda ash production led to historically high soda ash prices in the third quarter of 2022. Though soda ash demand weakened in many parts of the world during the third quarter due to slowing global economic growth and lower construction activity in China, Sisecam Wyoming remained sold-out as it took advantage of its low-cost position to profitably export soda ash. Consequently, Sisecam Wyoming delivered strong financial results in the third quarter of 2022.

Corporate and Financing

Corporate and Financing costs in the third quarter of 2022 decreased $1.6 million as compared to the prior year period primarily due to lower interest expense resulting from less debt outstanding, partially offset by the loss on early extinguishment of debt. Free cash flow in the third quarter of 2022 was relatively flat as compared to the prior year period.

During the third quarter of 2022, NRP repaid $60.5 million of debt and refinanced, upsized, and extended its credit facility to $130 million due 2027. In October of 2022, NRP fully retired its outstanding $121.4 million of 9.125% Senior Notes due 2025 at its redemption price of 102.281%, utilizing cash on hand and $70 million of borrowings under its new credit facility. After giving effect to this redemption, NRP's remaining total debt outstanding is $189.4 million.

Additionally, in August of 2022, NRP paid a second 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; 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 Nine Months Ended
	September 30,						June 30,			September 30,
(In thousands, except per unit data)	2022			2021			2022			2022			2021
Revenues and other income
Royalty and other mineral rights	$	81,379		$	47,884		$	79,333		$	231,795		$	114,422
Transportation and processing services		5,969			2,171			5,612			15,377			6,545
Equity in earnings of Sisecam Wyoming		14,556			6,672			14,643			44,036			11,246
Gain on asset sales and disposals		354			68			345			699			243
Total revenues and other income	$	102,258		$	56,795		$	99,933		$	291,907		$	132,456

Operating expenses
Operating and maintenance expenses	$	7,898		$	8,354		$	10,015		$	25,989		$	19,076
Depreciation, depletion and amortization		6,850			5,182			5,847			16,565			15,145
General and administrative expenses		4,518			4,052			5,052			14,037			11,550
Asset impairments		812			57			43			874			4,116
Total operating expenses	$	20,078		$	17,645		$	20,957		$	57,465		$	49,887

Income from operations	$	82,180		$	39,150		$	78,976		$	234,442		$	82,569

Other expenses, net
Interest expense, net	$	(5,141	)	$	(9,652	)	$	(8,108	)	$	(22,636	)	$	(29,308	)
Loss on extinguishment of debt		(2,484	)		—			(4,048	)		(6,532	)		—
Total other expenses, net	$	(7,625	)	$	(9,652	)	$	(12,156	)	$	(29,168	)	$	(29,308	)

Net income	$	74,555		$	29,498		$	66,820		$	205,274		$	53,261
Less: income attributable to preferred unitholders		(7,500	)		(7,961	)		(7,500	)		(22,500	)		(23,530	)
Net income attributable to common unitholders and the general partner	$	67,055		$	21,537		$	59,320		$	182,774		$	29,731

Net income attributable to common unitholders	$	65,714		$	21,106		$	58,134		$	179,119		$	29,136
Net income attributable to the general partner		1,341			431			1,186			3,655			595

Net income per common unit
Basic	$	5.25		$	1.71		$	4.65		$	14.36		$	2.36
Diluted		3.71			1.10			3.29			10.24			1.98

Net income	$	74,555		$	29,498		$	66,820		$	205,274		$	53,261
Comprehensive income (loss) from unconsolidated investment and other		289			4,204			(4,013	)		(1,179	)		7,469
Comprehensive income	$	74,844		$	33,702		$	62,807		$	204,095		$	60,730

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)	2022			2021			2022			2022			2021
Cash flows from operating activities
Net income	$	74,555		$	29,498		$	66,820		$	205,274		$	53,261
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
Depreciation, depletion and amortization		6,850			5,182			5,847			16,565			15,145
Distributions from unconsolidated investment		10,339			—			10,486			34,055			3,920
Equity earnings from unconsolidated investment		(14,556	)		(6,672	)		(14,643	)		(44,036	)		(11,246	)
Gain on asset sales and disposals		(354	)		(68	)		(345	)		(699	)		(243	)
Loss on extinguishment of debt		2,484			—			4,048			6,532			—
Asset impairments		812			57			43			874			4,116
Bad debt expense		1			2,069			(388	)		641			1,715
Unit-based compensation expense		1,429			1,118			1,339			4,216			2,837
Amortization of debt issuance costs and other		215			653			1,297			1,887			1,899
Change in operating assets and liabilities:
Accounts receivable		2,494			(9,163	)		(5,033	)		(10,118	)		(12,332	)
Accounts payable		210			182			73			223			89
Accrued liabilities		278			357			2,047			(4,831	)		(839	)
Accrued interest		3,177			7,262			(7,413	)		3,014			6,971
Deferred revenue		(7,519	)		(2,652	)		(2,259	)		(17,094	)		(2,121	)
Other items, net		2,081			2,236			1,204			1,447			3,471
Net cash provided by operating activities	$	82,496		$	30,059		$	63,123		$	197,950		$	66,643

Cash flows from investing activities
Proceeds from asset sales and disposals	$	353		$	74		$	346		$	699		$	249
Return of long-term contract receivable		575			540			563			1,138			1,622
Capital expenditures		(59	)		—			—			(59	)		—
Net cash provided by investing activities	$	869		$	614		$	909		$	1,778		$	1,871

Cash flows from financing activities
Debt repayments	$	(60,494	)	$	—		$	(120,474	)	$	(197,665	)	$	(19,061	)
Distributions to common unitholders and the general partner		(9,571	)		(5,671	)		(9,570	)		(24,813	)		(16,973	)
Distributions to preferred unitholders		(7,500	)		(3,921	)		(7,500	)		(22,500	)		(11,591	)
Acquisition of non-controlling interest in BRP		—			—			—			—			(1,000	)
Redemption of preferred units paid-in-kind		—			—			—			(19,579	)		—
Other items, net		(4,219	)		—			(2,722	)		(9,754	)		(690	)
Net cash used in financing activities	$	(81,784	)	$	(9,592	)	$	(140,266	)	$	(274,311	)	$	(49,315	)

Net increase (decrease) in cash and cash equivalents	$	1,581		$	21,081		$	(76,234	)	$	(74,583	)	$	19,199
Cash and cash equivalents at beginning of period		59,356			97,908			135,590			135,520			99,790
Cash and cash equivalents at end of period	$	60,937		$	118,989		$	59,356		$	60,937		$	118,989

Supplemental cash flow information:
Cash paid for interest	$	1,729		$	1,898		$	15,128		$	18,501		$	20,829
Non-cash investing and financing activities:
Preferred unit distributions paid-in-kind		—			3,921			—			—			11,591

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Balance Sheets

	September 30,		December 31,
(In thousands, except unit data)	2022		2021
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	60,937	$	135,520
Accounts receivable, net		34,726		24,538
Other current assets, net		1,228		2,723
Total current assets	$	96,891	$	162,781
Land		24,008		24,008
Mineral rights, net		421,351		437,697
Intangible assets, net		15,168		16,130
Equity in unconsolidated investment		284,806		276,004
Long-term contract receivable, net		29,570		31,371
Other long-term assets, net		7,216		5,832
Total assets	$	879,010	$	953,823
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable	$	2,179	$	1,956
Accrued liabilities		5,913		10,297
Accrued interest		4,227		1,213
Current portion of deferred revenue		8,886		11,817
Current portion of long-term debt, net		89,989		39,102
Total current liabilities	$	111,194	$	64,385
Deferred revenue		35,882		50,045
Long-term debt, net		148,734		394,443
Other non-current liabilities		5,231		5,018
Total liabilities	$	301,041	$	513,891
Commitments and contingencies
Class A Convertible Preferred Units (250,000 and 269,321 units issued and outstanding at September 30, 2022 and December 31, 2021, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at September 30, 2022 and December 31, 2021)	$	164,587	$	183,908
Partners' capital
Common unitholders' interest (12,505,996 and 12,351,306 units issued and outstanding at September 30, 2022 and December 31, 2021, respectively)	$	358,332	$	203,062
General partner's interest		5,054		1,787
Warrant holders' interest		47,964		47,964
Accumulated other comprehensive income		2,032		3,211
Total partners' capital	$	413,382	$	256,024
Total liabilities and partners' capital	$	879,010	$	953,823

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)

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, 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
Net income (3)		—		28,909			589			—		—		29,498
Distributions to common unitholders and the general partner		—		(5,558	)		(113	)		—		—		(5,671	)
Distributions to preferred unitholders		—		(7,687	)		(156	)		—		—		(7,843	)
Unit-based awards amortization and vesting		—		959			—			—		—		959
Comprehensive income from unconsolidated investment and other		—		—			—			—		4,204		4,204
Balance at September 30, 2021		12,351	$	151,459		$	754		$	66,816	$	7,791	$	226,820

______________________________
(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.
(3)		Net income includes $8.0 million of income attributable to preferred unitholders that accumulated during the period, of which $7.8 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, 2022 and 2021 and June 30, 2022:

	Operating Segments
	Mineral					Corporate and
(In thousands)	Rights		Soda Ash			Financing			Total
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 September 30, 2021
Revenues	$	50,055	$	6,672		$	—		$	56,727
Gain on asset sales and disposals		68		—			—			68
Total revenues and other income	$	50,123	$	6,672		$	—		$	56,795
Asset impairments	$	57	$	—		$	—		$	57
Net income (loss)	$	36,606	$	6,596		$	(13,704	)	$	29,498
Adjusted EBITDA (1)	$	41,845	$	(76	)	$	(4,052	)	$	37,717
Cash flow provided by (used in) continuing operations:
Operating activities	$	33,968	$	(36	)	$	(3,873	)	$	30,059
Investing activities	$	614	$	—		$	—		$	614
Financing activities	$	—	$	—		$	(9,592	)	$	(9,592	)
Distributable cash flow (1)	$	34,582	$	(36	)	$	(3,873	)	$	30,673
Free cash flow (1)	$	34,508	$	(36	)	$	(3,873	)	$	30,599

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

______________________________
(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, 2022 and 2021:

	Operating Segments
	Mineral					Corporate and
(In thousands)	Rights			Soda Ash		Financing			Total
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

For the Nine Months Ended September 30, 2021
Revenues	$	120,967		$	11,246	$	—		$	132,213
Gain on asset sales and disposals		243			—		—			243
Total revenues and other income	$	121,210		$	11,246	$	—		$	132,456
Asset impairments	$	4,116		$	—	$	—		$	4,116
Net income (loss)	$	82,980		$	11,115	$	(40,834	)	$	53,261
Adjusted EBITDA (1)	$	102,265		$	3,789	$	(11,550	)	$	94,504
Cash flow provided by (used in) continuing operations:
Operating activities	$	91,958		$	3,817	$	(29,132	)	$	66,643
Investing activities	$	1,871		$	—	$	—		$	1,871
Financing activities	$	(1,132	)	$	—	$	(48,183	)	$	(49,315	)
Distributable cash flow (1)	$	93,829		$	3,817	$	(29,132	)	$	68,514
Free cash flow (1)	$	92,580		$	3,817	$	(29,132	)	$	67,265

______________________________
(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)	2022			2021			2022			2022			2021
Coal sales volumes (tons)
Appalachia
Northern		440			422			392			1,260			947
Central		3,503			3,199			3,484			10,238			8,824
Southern		498			642			312			1,171			1,058
Total Appalachia		4,441			4,263			4,188			12,669			10,829
Illinois Basin		3,490			2,689			3,403			8,395			7,987
Northern Powder River Basin		835			1,047			699			2,772			2,291
Gulf Coast		188			13			67			324			13
Total coal sales volumes		8,954			8,012			8,357			24,160			21,120

Coal royalty revenue per ton
Appalachia
Northern	$	6.74		$	7.18		$	11.84		$	9.48		$	5.57
Central		9.04			5.74			12.19			10.85			4.91
Southern		9.78			11.61			17.67			14.28			9.82
Illinois Basin		2.57			2.33			2.07			2.30			2.13
Northern Powder River Basin		4.56			3.71			4.74			4.24			3.59
Gulf Coast		0.59			0.54			0.57			0.58			0.54
Combined average coal royalty revenue per ton		5.85			4.87			7.54			7.08			3.99

Coal royalty revenues
Appalachia
Northern	$	2,965		$	3,031		$	4,640		$	11,946		$	5,272
Central		31,680			18,357			42,461			111,121			43,308
Southern		4,872			7,452			5,513			16,725			10,390
Total Appalachia		39,517			28,840			52,614			139,792			58,970
Illinois Basin		8,967			6,261			7,061			19,331			17,044
Northern Powder River Basin		3,805			3,881			3,314			11,751			8,222
Gulf Coast		111			7			38			187			7
Unadjusted coal royalty revenues		52,400			38,989			63,027			171,061			84,243
Coal royalty adjustment for minimum leases		(19	)		(6,557	)		(82	)		(286	)		(18,148	)
Total coal royalty revenues	$	52,381		$	32,432		$	62,945			170,775		$	66,095

Other revenues
Production lease minimum revenues	$	1,885		$	3,235		$	65		$	3,542		$	10,241
Minimum lease straight-line revenues		4,778			4,808			4,674			14,235			15,773
Carbon neutral initiative revenues		8,600			—			—			8,600			—
Wheelage revenues		2,977			1,964			4,379			11,073			5,589
Property tax revenues		1,360			1,466			1,695			4,527			4,522
Coal overriding royalty revenues		1,367			757			682			2,307			3,592
Lease amendment revenues		759			1,519			811			2,450			3,159
Aggregates royalty revenues		884			429			1,037			2,691			1,339
Oil and gas royalty revenues		6,170			1,154			2,906			10,890			3,420
Other revenues		218			120			139			705			692
Total other revenues	$	28,998		$	15,452		$	16,388		$	61,020		$	48,327
Royalty and other mineral rights	$	81,379		$	47,884		$	79,333		$	231,795		$	114,422
Transportation and processing services revenues		5,969			2,171			5,612			15,377			6,545
Gain on asset sales and disposals		354			68			345			699			243
Total Mineral Rights segment revenues and other income	$	87,702		$	50,123		$	85,290		$	247,871		$	121,210

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, 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 September 30, 2021
Net income (loss)	$	36,606	$	6,596		$	(13,704	)	$	29,498
Less: equity earnings from unconsolidated investment		—		(6,672	)		—			(6,672	)
Add: total distributions from unconsolidated investment		—		—			—			—
Add: interest expense, net		—		—			9,652			9,652
Add: loss on extinguishment of debt		—		—			—			—
Add: depreciation, depletion and amortization		5,182		—			—			5,182
Add: asset impairments		57		—			—			57
Adjusted EBITDA	$	41,845	$	(76	)	$	(4,052	)	$	37,717

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

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited)

	Mineral					Corporate and
(In thousands)	Rights		Soda Ash			Financing			Total
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

For the Nine Months Ended September 30, 2021
Net income (loss)	$	82,980	$	11,115		$	(40,834	)	$	53,261
Less: equity earnings from unconsolidated investment		—		(11,246	)		—			(11,246	)
Add: total distributions from unconsolidated investment		—		3,920			—			3,920
Add: interest expense, net		24		—			29,284			29,308
Add: loss on extinguishment of debt		—		—			—			—
Add: depreciation, depletion and amortization		15,145		—			—			15,145
Add: asset impairments		4,116		—			—			4,116
Adjusted EBITDA	$	102,265	$	3,789		$	(11,550	)	$	94,504

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

(In thousands)	Mineral Rights			Soda Ash			Corporate and Financing			Total
For the Three Months Ended September 30, 2022
Net cash provided by (used in) operating activities of continuing operations	$	75,948		$	10,309		$	(3,761	)	$	82,496
Add: proceeds from asset sales and disposals		353			—			—			353
Add: return of long-term contract receivable		575			—			—			575
Less: maintenance capital expenditures		—			—			(59	)		(59	)
Distributable cash flow	$	76,876		$	10,309		$	(3,820	)	$	83,365
Less: proceeds from asset sales and disposals		(353	)		—			—			(353	)
Free cash flow	$	76,523		$	10,309		$	(3,820	)	$	83,012

Net cash provided by (used in) investing activities	$	928		$	—		$	(59	)	$	869
Net cash used in financing activities		—			—			(81,784	)		(81,784	)

For the Three Months Ended September 30, 2021
Net cash provided by (used in) operating activities of continuing operations	$	33,968		$	(36	)	$	(3,873	)	$	30,059
Add: proceeds from asset sales and disposals		74			—			—			74
Add: return of long-term contract receivable		540			—			—			540
Less: maintenance capital expenditures		—			—			—			—
Distributable cash flow	$	34,582		$	(36	)	$	(3,873	)	$	30,673
Less: proceeds from asset sales and disposals		(74	)		—			—			(74	)
Free cash flow	$	34,508		$	(36	)	$	(3,873	)	$	30,599

Net cash provided by investing activities	$	614		$	—		$	—		$	614
Net cash used in financing activities		—			—			(9,592	)		(9,592	)

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
Less: maintenance capital expenditures		—			—			—			—
Distributable cash flow	$	71,260		$	10,430		$	(17,658	)	$	64,032
Less: proceeds from asset sales and disposals		(346	)		—			—			(346	)
Free cash flow	$	70,914		$	10,430		$	(17,658	)	$	63,686

Net cash provided by investing activities	$	909		$	—		$	—		$	909
Net cash used in financing activities		—			—			(140,266	)		(140,266	)

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited)

(In thousands)	Mineral Rights			Soda Ash		Corporate and Financing			Total
For the Nine Months Ended September 30, 2022
Net cash provided by (used in) operating activities of continuing operations	$	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	)
Less: acquisition costs		—			—		—			—
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	)

For the Nine Months Ended September 30, 2021
Net cash provided by (used in) operating activities of continuing operations	$	91,958		$	3,817	$	(29,132	)	$	66,643
Add: proceeds from asset sales and disposals		249			—		—			249
Add: return of long-term contract receivable		1,622			—		—			1,622
Less: maintenance capital expenditures		—			—		—			—
Distributable cash flow	$	93,829		$	3,817	$	(29,132	)	$	68,514
Less: proceeds from asset sales and disposals		(249	)		—		—			(249	)
Less: acquisition costs		(1,000	)		—		—			(1,000	)
Free cash flow	$	92,580		$	3,817	$	(29,132	)	$	67,265

Net cash provided by investing activities	$	1,871		$	—	$	—		$	1,871
Net cash used in financing activities		(1,132	)		—		(48,183	)		(49,315	)

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Cash Flow Cushion

	For the Three Months Ended
(In thousands)	December 31, 2021			March 31, 2022			June 30, 2022			September 30, 2022			Last 12 Months
Net cash provided by operating activities of continuing operations	$	55,161		$	52,331		$	63,123		$	82,496		$	253,111
Add: proceeds from asset sales and disposals		—			—			346			353			699
Add: return of long-term contract receivable		541			—			563			575			1,679
Less: maintenance capital expenditures		—			—			—			(59	)		(59	)
Distributable cash flow	$	55,702		$	52,331		$	64,032		$	83,365		$	255,430
Less: proceeds from asset sales and disposals		—			—			(346	)		(353	)		(699	)
Free cash flow	$	55,702		$	52,331		$	63,686		$	83,012		$	254,731
Less: mandatory Opco debt repayments		(20,335	)		(16,697	)		(2,365	)		—			(39,397	)
Less: preferred unit distributions and redemption of PIK units		(3,980	)		(27,079	)		(7,500	)		(7,500	)		(46,059	)
Less: common unit distributions		(5,672	)		(5,672	)		(9,570	)		(9,571	)		(30,485	)
Less: warrant cash settlement		(9,183	)		—			—			—			(9,183	)
Cash flow cushion	$	16,532		$	2,883		$	44,251		$	65,941		$	129,607

Leverage Ratio

	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
Less: Redemption of 9.125% Senior Notes														(121,396	)
Add: October 2022 draw on revolving credit facility														70,000
Pro-Forma Debt—at September 30, 2022													$	189,423

Leverage Ratio (1)													0.8 x

Pro-Forma Leverage Ratio at September 30, 2022													0.6 x

______________________________
(1)		Leverage Ratio is calculated as the outstanding principal of NRP's debt as of September 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 September 30, 2022, was 0.8x as calculated under the indenture governing NRP's 2025 parent company notes.

	For the Three Months Ended
(In thousands)	September 30, 2020			December 31, 2020			March 31, 2021			June 30, 2021			Last 12 Months
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/20221103005139/en/

Tiffany Sammis, 713-751-7515
tsammis@nrplp.com

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Oxy Low Carbon Ventures and Natural Resource Partners L.P. Enter into CO2 Sequestration Agreement

Occidental's (NYSE: OXY) Low Carbon Ventures (OLCV) subsidiary and Natural Resource Partners L.P. (NYSE: NRP) ("NRP"), today announced the execution of an agreement for the evaluation and potential development of a permanent carbon dioxide (CO 2 ) sequestration hub located in southeast Texas. OLCV expects the development of the project will be completed by its subsidiary 1PointFive.

The agreement provides OLCV with the exclusive rights to develop a CO ₂ sequestration hub on approximately 65,000 acres of pore space controlled by NRP. The site offers proximity to a large number of industrial CO ₂ emissions. The approximate total CO ₂ storage potential of this location is at least 500 million metric tons. The agreement advances OLCV's and 1PointFive's strategic vision to develop carbon capture and sequestration hubs, some of which are expected to be anchored by Direct Air Capture (DAC) facilities.

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Natural Resource Partners L.P. Schedules Third Quarter 2022 Earnings Conference Call

Natural Resource Partners L.P. (NYSE: NRP) plans to report its third quarter 2022 financial results before the market opens on Thursday, November 3, 2022. Management will host a conference call beginning at 9:00 a.m. ET to discuss the results.

To register for the conference call please use this link: https://conferencingportals.com/event/kfJdSHYP . After registering, a confirmation will be sent via email and include 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 a day in advance or at minimum 10 minutes before the start of the call. Investors may also listen to the conference call live via the Investor Relations section of the NRP website at www.nrplp.com .

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Natural Resource Partners L.P. Announces Redemption of 9.125% Senior Notes due 2025

Natural Resource Partners L.P. (NYSE: NRP) announced today that it has given notice of its intention to redeem all of its outstanding 9.125% Senior Notes due 2025 (CUSIP Numbers 63902MAE84, U63764AC52) (the "Notes") on October 31, 2022 (the "Redemption Date") at a redemption price of 102.281% of the principal amount plus accrued and unpaid interest to, but not including, the Redemption Date. NRP expects to finance the redemption using cash on hand and borrowings under its recently extended credit facility, which matures in 2027.

NRP has instructed Wilmington Trust, National Association, as the trustee for the Notes, to distribute a notice of redemption to all registered holders of the Notes on September 29, 2022. Wilmington Trust, National Association is the paying agent for the Notes. Payment of the redemption price for the Notes will be made to the paying agent pursuant to the indenture. All redeemed notes must be surrendered to the paying agent to collect the redemption price.

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Media		Investors
Eric Moses 713-497-2017 eric_moses@oxy.com		Jeff Alvarez 713-215-7864 jeff_alvarez@oxy.com

NRP Investors
Tiffany Sammis 713-751-7515 tsammis@nrplp.com

Investing News NetworkYour trusted source for investing success

Natural Resource Partners L.P. Reports Second Quarter 2022 Results and Declares Second Quarter 2022 Distribution of $0.75 per Unit

Natural Resource Partners L.P. Reports Third Quarter 2022 Results and Declares Third Quarter 2022 Distribution of $0.75 per Unit

Natural Resource Partners L.P. and Oxy Low Carbon Ventures Enter into CO2 Sequestration Agreement

Oxy Low Carbon Ventures and Natural Resource Partners L.P. Enter into CO2 Sequestration Agreement

Natural Resource Partners L.P. Schedules Third Quarter 2022 Earnings Conference Call

Natural Resource Partners L.P. Announces Redemption of 9.125% Senior Notes due 2025

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