Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2020 Results

HOUSTON--()--Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2020 results as follows:

 

 

For the Three Months Ended

 

For the Year Ended

 

 

December 31,

 

December 31,

(In thousands) (Unaudited)

 

2020

 

2019

 

2020

 

2019

Net income (loss) from continuing operations

 

$

14,687

 

$

(119,448)

 

$

(84,819)

 

$

(25,414)

Asset impairments

 

 

2,668

 

 

147,730

 

 

135,885

 

 

148,214

Net income from continuing operations excluding asset impairments (1)

 

$

17,355

 

$

28,282

 

$

51,066

 

$

122,800

Adjusted EBITDA (1)

 

 

24,917

 

 

37,974

 

 

104,714

 

 

199,228

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

 

13,155

 

 

19,394

 

 

87,568

 

 

137,319

Investing activities

 

 

776

 

 

259

 

 

1,745

 

 

8,221

Financing activities

 

 

(29,714)

 

 

(33,551)

 

 

(87,788)

 

 

(253,305)

Distributable cash flow (1) (2)

 

 

13,932

 

 

19,602

 

 

90,248

 

 

144,933

Free cash flow (1)

 

 

13,815

 

 

19,764

 

 

88,690

 

 

139,040

Cash flow cushion (last twelve months) (1)

 

 

 

 

 

 

(739)

 

 

7,762

____________________

(1)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

(2)

Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations.

"While 2020 proved to be a challenging year for us all, I'm proud of the efforts and discipline of our team as they managed the business safely and effectively over the course of the year. We paid down $46 million of debt in 2020 and ended the year with $200 million of liquidity. As we look to 2021, demand for steel, energy and soda ash continues to improve and we continue to focus on maximizing unitholder value by de-levering the capital structure while maintaining strong liquidity during these uncertain times," stated Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $199.8 million at December 31, 2020, consisting of $99.8 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

NRP declared a cash distribution of $0.45 per common unit and a distribution of $7.6 million on its preferred units for the fourth quarter of 2020. The preferred unit distribution included interest on previously paid-in-kind units and was paid one-half in cash and one-half in kind through the issuance of additional 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.

Segment Performance

Coal Royalty and Other

Revenues and other income in the fourth quarter and full year of 2020 were lower by $7.8 million and $87.3 million, respectively, and free cash flow in the fourth quarter and full year of 2020 was $5.1 million and $54.7 million lower, respectively, as compared to the prior year periods. These decreases are primarily a result of a weakened market for metallurgical coal in 2020 due to a decline in global steel demand, and as a result, both sales volumes and prices for metallurgical coal sold were lower in the fourth quarter and full year of 2020 as compared to the prior year periods. Approximately 70% of coal royalty revenues and approximately 60% of coal royalty sales volumes were derived from metallurgical coal in 2020. In addition, weaker domestic and export thermal coal markets compared to the prior year periods resulted in lower revenues from NRP's thermal coal properties. Furthermore, the COVID-19 pandemic compounded already weak coal pricing and demand, and NRP's coal lessees saw significant negative impacts on their businesses.

NRP also recorded $2.7 million and $135.9 million in non-cash asset impairment expense in the fourth quarter and full year of 2020, respectively, as compared to $147.7 million and $148.2 million in non-cash asset impairment expense for the fourth quarter and full year of 2019, respectively. Asset impairments in 2020 primarily related to weak coal markets that were compounded by the COVID-19 pandemic and resulted in the termination of certain coal leases, changes to lessee mine plans resulting in permanent moves off of certain coal properties and decreased oil and gas drilling activity which negatively impacted the outlook for NRP's frac sand properties.

Domestic and export thermal coal markets remain challenged by lower utility demand, continued low natural gas prices, the secular shift to renewable energy and the ongoing negative effects from the COVID-19 pandemic. Metallurgical coal markets also remain challenged by the uncertainties around the COVID-19 pandemic, but prices have rebounded from the lows seen in the second quarter of 2020.

In addition to actively managing its currently producing coal and hard mineral properties over the last year, NRP has also been working to identify potential alternative revenue sources across its coal and hard mineral property portfolio. The Partnership has been evaluating opportunities which may exist in its surface and mineral property assets, where coal or other hard mineral development operations have ceased or have never been developed, as locations for environmentally sustainable projects, such as carbon sequestration or renewable energy projects. While NRP does not expect these activities to generate significant revenues or cash flow over the next several years, NRP believes its large ownership footprint throughout the United States will provide opportunities to create value in this regard with minimal capital investment by the Partnership.

Soda Ash

Ciner Wyoming was negatively impacted by the COVID-19 pandemic as lower demand for glass in the global auto, beverage container and construction industries reduced demand for soda ash. Revenues and other income in the fourth quarter and full year of 2020 were lower by $4.7 million and $36.4 million, respectively, as compared to the prior year periods primarily due to a combination of lower pricing and volumes sold. Distributions received from Ciner Wyoming were lower by $6.4 million and $17.6 million in the fourth quarter and full year of 2020, respectively, as compared to prior year periods due to Ciner Wyoming's decision to suspend distributions as announced in August of 2020. While Ciner Wyoming has yet to recover to pre-COVID-19 levels, fourth quarter 2020 overall sales volumes increased 9.5% and overall production volumes increased 49.1% over the third quarter 2020 results. NRP believes Ciner Wyoming's facility is competitively positioned as one of the lowest cost producers of soda ash in the world, however, NRP expects the market to remain volatile as a result of ongoing uncertainties with the COVID-19 pandemic.

As previously mentioned, Ciner Wyoming suspended its quarterly distribution in August 2020 in an effort to achieve greater financial and liquidity flexibility during the COVID-19 pandemic and accordingly, did not pay quarterly distributions for the second, third or fourth quarters of 2020. Ciner Wyoming will continue to evaluate on a quarterly basis whether to reinstate the distribution. Ciner Wyoming’s ability to pay future quarterly distributions will be dependent in part on its cash reserves, liquidity, total debt levels and anticipated capital expenditures.

Corporate and Financing

Corporate and financing costs were $1.1 million and $38.3 million lower in the fourth quarter and full year of 2020, respectively, as compared to the prior year periods. The decrease in costs for the fourth quarter of 2020 is primarily due to lower interest expense as a result of less debt outstanding. The decrease in costs for the full year of 2020 is primarily due to the loss on extinguishment of debt of $29.3 million related to the refinancing and extension of both NRP's 2022 Senior Notes and revolving credit facility in the second quarter of 2019, as well as lower interest expense as a result of less debt outstanding. Free cash flow was $5.5 million and $21.9 million higher in the fourth quarter and full year of 2020, respectively, as compared to the prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2020.

As noted earlier, NRP declared a fourth quarter $7.6 million distribution on its preferred units which was paid one-half in cash and one-half in kind. The indenture governing the 2025 parent company notes restricts NRP from paying more than one-half of the quarterly distribution on the preferred units in cash if NRP's consolidated leverage ratio exceeds 3.75x, and as of December 31, 2020, NRP's leverage ratio was 4.6x. NRP expect its leverage ratio to continue to exceed 3.75x for the foreseeable future.

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 http://www.directeventreg.com/registration/event/6473098. 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.

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 mineral properties in the United States including interests in coal, industrial minerals and other natural resources. In addition, NRP owns an equity investment in Ciner Wyoming LLC, a trona ore mining and soda ash production business.

For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com.

Forward-Looking Statements

This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership’s common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, including Foresight Energy; Ciner 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) from continuing operations less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; 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 (loss), 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 and distributions to non-controlling interest. 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, cash flow used in acquisition costs classified as investing or financing activities and distributions to non-controlling interest. 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 common unit distributions. 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.

"Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) from continuing operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. Return on capital employed 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. Return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. The measure provides an indication of operating performance before the impact of leverage in the capital structure.

-Financial Tables and Reconciliation of Non-GAAP Measures Follow-

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Comprehensive Income (Loss)

 

 

For the Three Months Ended

 

For the Year Ended

 

December 31,

 

September 30,

 

December 31,

(In thousands, except per unit data)

2020

 

2019

 

2020

 

2020

 

2019

Revenues and other income

 

 

 

 

 

 

 

 

 

Coal royalty and other

$

31,327

 

$

37,032

 

$

25,740

 

$

120,166

 

$

191,069

Transportation and processing services

 

2,194

 

 

4,539

 

 

2,204

 

 

8,845

 

 

19,279

Equity in earnings of Ciner Wyoming

 

5,528

 

 

10,256

 

 

1,986

 

 

10,728

 

 

47,089

Gain (loss) on asset sales and disposals

 

116

 

 

(111)

 

 

 

 

581

 

 

6,498

Total revenues and other income

$

39,165

 

$

51,716

 

$

29,930

 

$

140,320

 

$

263,935

Operating expenses

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

$

5,595

 

$

5,925

 

$

5,781

 

$

24,795

 

$

32,738

Depreciation, depletion and amortization

 

3,013

 

 

3,186

 

 

2,111

 

 

9,198

 

 

14,932

General and administrative expenses

 

3,125

 

 

3,931

 

 

3,634

 

 

14,293

 

 

16,730

Asset impairments

 

2,668

 

 

147,730

 

 

934

 

 

135,885

 

 

148,214

Total operating expenses

$

14,401

 

$

160,772

 

$

12,460

 

$

184,171

 

$

212,614

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

$

24,764

 

$

(109,056)

 

$

17,470

 

$

(43,851)

 

$

51,321

 

 

 

 

 

 

 

 

 

 

Other expenses, net

 

 

 

 

 

 

 

 

 

Interest expense, net

$

(10,077)

 

$

(10,392)

 

$

(10,254)

 

$

(40,968)

 

$

(47,453)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

(29,282)

Total other expenses, net

$

(10,077)

 

$

(10,392)

 

$

(10,254)

 

$

(40,968)

 

$

(76,735)

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

$

14,687

 

$

(119,448)

 

$

7,216

 

$

(84,819)

 

$

(25,414)

Income from discontinued operations

 

 

 

750

 

 

 

 

 

 

956

Net income (loss)

$

14,687

 

$

(118,698)

 

$

7,216

 

$

(84,819)

 

$

(24,458)

Less: income attributable to preferred unitholders

 

(7,612)

 

 

(7,500)

 

 

(7,500)

 

 

(30,225)

 

 

(30,000)

Net income (loss) attributable to common unitholders and the general partner

$

7,075

 

$

(126,198)

 

$

(284)

 

$

(115,044)

 

$

(54,458)

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to common unitholders

$

6,934

 

$

(123,674)

 

$

(279)

 

$

(112,743)

 

$

(53,369)

Net income (loss) attributable to the general partner

 

141

 

 

(2,524)

 

 

(5)

 

 

(2,301)

 

 

(1,089)

Income (loss) from continuing operations per common unit

 

 

 

 

 

 

 

 

 

Basic

$

0.57

 

$

(10.15)

 

$

(0.02)

 

$

(9.20)

 

$

(4.43)

Diluted

 

0.56

 

 

(10.15)

 

 

(0.02)

 

 

(9.20)

 

 

(4.43)

Net income (loss) per common unit

 

 

 

 

 

 

 

 

 

Basic

$

0.57

 

$

(10.09)

 

$

(0.02)

 

$

(9.20)

 

$

(4.35)

Diluted

 

0.56

 

 

(10.09)

 

 

(0.02)

 

 

(9.20)

 

 

(4.35)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

14,687

 

$

(118,698)

 

$

7,216

 

$

(84,819)

 

$

(24,458)

Comprehensive income from unconsolidated investment and other

 

152

 

 

1,208

 

 

2,428

 

 

2,916

 

 

868

Comprehensive income (loss)

$

14,839

 

$

(117,490)

 

 

9,644

 

$

(81,903)

 

$

(23,590)

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

December 31,

 

September 30,

 

December 31,

(In thousands)

2020

 

2019

 

2020

 

2020

 

2019

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

Net income (loss)

$

14,687

 

$

(118,698)

 

$

7,216

 

$

(84,819)

 

$

(24,458)

Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations:

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

3,013

 

3,186

 

2,111

 

9,198

 

14,932

Distributions from unconsolidated investment

 

6,370

 

 

14,210

 

31,850

Equity earnings from unconsolidated investment

(5,528)

 

(10,256)

 

(1,986)

 

(10,728)

 

(47,089)

Loss (gain) on asset sales and disposals

(116)

 

111

 

 

(581)

 

(6,498)

Loss on extinguishment of debt

 

 

 

 

29,282

Income from discontinued operations

 

(750)

 

 

 

(956)

Asset impairments

2,668

 

147,730

 

934

 

135,885

 

148,214

Bad debt expense

86

 

620

 

258

 

4,001

 

7,462

Unit-based compensation expense

1,004

 

519

 

913

 

3,570

 

2,361

Amortization of debt issuance costs and other

832

 

464

 

1,577

 

1,323

 

3,687

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

4,859

 

(3,924)

 

4,621

 

12,853

 

(6,035)

Accounts payable

14

 

(412)

 

144

 

207

 

(1,234)

Accrued liabilities

780

 

1,427

 

791

 

(2,205)

 

(3,656)

Accrued interest

(7,559)

 

(12,048)

 

7,248

 

(602)

 

(12,029)

Deferred revenue

(461)

 

3,188

 

(273)

 

9,733

 

(732)

Other items, net

(1,124)

 

1,867

 

769

 

(4,477)

 

2,218

Net cash provided by operating activities of continuing operations

$

13,155

 

$

19,394

 

$

24,323

 

$

87,568

 

$

137,319

Net cash provided by (used in) operating activities of discontinued operations

 

(4)

 

 

1,706

 

(8)

Net cash provided by operating activities

$

13,155

 

$

19,390

 

$

24,323

 

$

89,274

 

$

137,311

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

$

116

 

$

(111)

 

$

 

$

623

 

$

6,500

Return of long-term contract receivable

660

 

392

 

332

 

2,122

 

1,743

Acquisition of non-controlling interest in BRP

 

 

 

(1,000)

 

Acquisition of mineral rights

 

(22)

 

 

 

(22)

Net cash provided by investing activities of continuing operations

$

776

 

$

259

 

$

332

 

$

1,745

 

$

8,221

Net cash provided by (used in) investing activities of discontinued operations

1

 

(73)

 

 

(65)

 

(629)

Net cash provided by investing activities

$

777

 

$

186

 

$

332

 

$

1,680

 

$

7,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

Debt borrowings

$

 

$

 

$

 

$

 

$

300,000

Debt repayments

(20,335)

 

(20,335)

 

(6,780)

 

(46,176)

 

(463,082)

Distributions to common unitholders and general partner

(5,630)

 

(5,630)

 

(5,630)

 

(16,890)

 

(33,150)

Distributions to preferred unitholders

(3,750)

 

(7,500)

 

(7,500)

 

(26,363)

 

(30,000)

Contributions from (to) discontinued operations

1

 

(77)

 

 

1,641

 

(637)

Debt issuance costs and other

 

(9)

 

 

 

(26,436)

Net cash used in financing activities of continuing operations

$

(29,714)

 

$

(33,551)

 

$

(19,910)

 

$

(87,788)

 

$

(253,305)

Net cash provided by (used in) financing activities of discontinued operations

(1)

 

77

 

 

(1,641)

 

637

Net cash used in financing activities

$

(29,715)

 

$

(33,474)

 

$

(19,910)

 

$

(89,429)

 

$

(252,668)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

$

(15,783)

 

$

(13,898)

 

$

4,745

 

$

1,525

 

$

(107,765)

Cash and cash equivalents at beginning of period

115,573

 

112,163

 

110,828

 

98,265

 

206,030

Cash and cash equivalents at end of period

$

99,790

 

$

98,265

 

$

115,573

 

$

99,790

 

$

98,265

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid during the period for interest

$

17,118

 

$

22,327

 

$

2,490

 

$

39,830

 

$

58,597

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

Plant, equipment, mineral rights and other funded with accounts payable or accrued liabilities

$

23

 

$

 

$

23

 

$

970

 

$

Preferred unit distributions paid-in-kind

3,750

 

 

 

3,750

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Balance Sheets

 

 

December 31,

(In thousands, except unit data)

2020

 

2019

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

99,790

 

 

$

98,265

 

Accounts receivable, net

12,322

 

 

30,869

 

Other current assets, net

5,080

 

 

1,244

 

Current assets of discontinued operations

 

 

1,706

 

Total current assets

$

117,192

 

 

$

132,084

 

Land

24,008

 

 

24,008

 

Mineral rights, net

460,373

 

 

605,096

 

Intangible assets, net

17,459

 

 

17,687

 

Equity in unconsolidated investment

262,514

 

 

263,080

 

Long-term contract receivable, net

33,264

 

 

36,963

 

Other long-term assets, net

7,067

 

 

6,989

 

Total assets

$

921,877

 

 

$

1,085,907

 

LIABILITIES AND CAPITAL

 

 

 

Current liabilities

 

 

 

Accounts payable

$

1,385

 

 

$

1,179

 

Accrued liabilities

7,733

 

 

8,764

 

Accrued interest

1,714

 

 

2,316

 

Current portion of deferred revenue

11,485

 

 

4,608

 

Current portion of long-term debt, net

39,055

 

 

45,776

 

Current liabilities of discontinued operations

 

 

65

 

Total current liabilities

$

61,372

 

 

$

62,708

 

Deferred revenue

50,069

 

 

47,213

 

Long-term debt, net

432,444

 

 

470,422

 

Other non-current liabilities

5,131

 

 

4,949

 

Total liabilities

$

549,016

 

 

$

585,292

 

Commitments and contingencies

 

 

 

Class A Convertible Preferred Units (253,750 and 250,000 units issued and outstanding at December 31, 2020 and 2019, respectively, at $1,000 par value per unit; liquidation preference of $1,700 per unit and $1,500 per unit at December 31, 2020 and 2019, respectively)

$

168,337

 

 

$

164,587

 

Partners’ capital:

 

 

 

Common unitholders’ interest (12,261,199 units issued and outstanding at December 31, 2020 and 2019)

$

136,927

 

 

$

271,471

 

General partner’s interest

459

 

 

3,270

 

Warrant holders' interest

66,816

 

 

66,816

 

Accumulated other comprehensive income (loss)

322

 

 

(2,594)

Total partners’ capital

$

204,524

 

 

$

338,963

 

Non-controlling interest

 

 

(2,935)

 

Total capital

$

204,524

 

 

$

336,028

 

Total liabilities and capital

$

921,877

 

 

$

1,085,907

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

 

Common Unitholders

 

General
Partner

 

Warrant
Holders

 

Accumulated
Other
Comprehensive
Income (Loss)

 

Partners'
Capital
Excluding
Non-Controlling
Interest

 

Non-Controlling
Interest

 

Total
Capital

 

(In thousands)

Units

 

Amounts

 

Balance at December 31, 2018

12,249

 

 

$

355,113

 

 

$

5,014

 

 

$

66,816

 

 

$

(3,462)

 

 

$

423,481

 

 

$

(2,935)

 

 

$

420,546

 

Net loss (1)

 

 

(23,969)

 

 

(489)

 

 

 

 

 

 

(24,458)

 

 

 

 

(24,458)

 

Distributions to common unitholders and general partner

 

 

(32,487)

 

 

(663)

 

 

 

 

 

 

(33,150)

 

 

 

 

(33,150)

 

Distributions to preferred unitholders

 

 

(29,400)

 

 

(600)

 

 

 

 

 

 

(30,000)

 

 

 

 

(30,000)

 

Issuance of unit-based awards

12

 

 

486

 

 

 

 

 

 

 

 

486

 

 

 

 

486

 

Unit-based awards amortization and vesting

 

 

1,804

 

 

 

 

 

 

 

 

1,804

 

 

 

 

1,804

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

(76)

 

 

8

 

 

 

 

868

 

 

800

 

 

 

 

800

 

Balance at December 31, 2019

12,261

 

 

$

271,471

 

 

$

3,270

 

 

$

66,816

 

 

$

(2,594)

 

 

$

338,963

 

 

$

(2,935)

 

 

$

336,028

 

Cumulative effect of adoption of accounting standard

 

 

(3,833)

 

 

(78)

 

 

 

 

 

 

(3,911)

 

 

 

 

(3,911)

 

Net loss (2)

 

 

(83,123)

 

 

(1,696)

 

 

 

 

 

 

(84,819)

 

 

 

 

(84,819)

 

Distributions to common unitholders and general partner

 

 

(16,552)

 

 

(338)

 

 

 

 

 

 

(16,890)

 

 

 

 

(16,890)

 

Distributions to preferred unitholders

 

 

(29,511)

 

 

(602)

 

 

 

 

 

 

(30,113)

 

 

 

 

(30,113)

 

Acquisition of non-controlling interest in BRP

 

 

(4,747)

 

 

(97)

 

 

 

 

 

 

(4,844)

 

 

2,935

 

 

(1,909)

 

Issuance of unit-based awards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting

 

 

3,222

 

 

 

 

 

 

 

 

3,222

 

 

 

 

3,222

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

2,916

 

 

2,916

 

 

 

 

2,916

 

Balance at December 31, 2020

12,261

 

 

$

136,927

 

 

$

459

 

 

$

66,816

 

 

$

322

 

 

$

204,524

 

 

$

 

 

$

204,524

 

____________________

(1)

Net loss includes $30.0 million of income attributable to preferred unitholders that accumulated during the period, of which $29.4 million is allocated to the common unitholders and $0.6 million is allocated to the general partner.

(2)

Net loss includes $30.2 million of income attributable to preferred unitholders that accumulated during the period, of which $29.6 million is allocated to the common unitholders and $0.6 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 December 31, 2020 and 2019 and September 30, 2020:

 

 

Operating Segments

 

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

33,521

 

 

$

5,528

 

 

$

 

 

$

39,049

 

Gain on asset sales and disposals

 

116

 

 

 

 

 

 

116

 

Total revenues and other income

 

$

33,637

 

 

$

5,528

 

 

$

 

 

$

39,165

 

Asset impairments

 

$

2,668

 

 

$

 

 

$

 

 

$

2,668

 

Net income (loss) from continuing operations

 

$

22,382

 

 

$

5,484

 

 

$

(13,179)

 

 

$

14,687

 

Adjusted EBITDA (1)

 

$

28,086

 

 

$

(44)

 

 

$

(3,125)

 

 

$

24,917

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

33,655

 

 

$

(54)

 

 

$

(20,446)

 

 

$

13,155

 

Investing activities

 

$

776

 

 

$

 

 

$

 

 

$

776

 

Financing activities

 

$

 

 

$

 

 

$

(29,714)

 

 

$

(29,714)

 

Distributable cash flow (1) (2)

 

$

34,431

 

 

$

(54)

 

 

$

(20,446)

 

 

$

13,932

 

Free cash flow (1)

 

$

34,315

 

 

$

(54)

 

 

$

(20,446)

 

 

$

13,815

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Revenues

 

$

41,571

 

 

$

10,256

 

 

$

 

 

$

51,827

 

Loss on asset sales and disposals

 

(111)

 

 

 

 

 

 

(111)

 

Total revenues and other income

 

$

41,460

 

 

$

10,256

 

 

$

 

 

$

51,716

 

Asset impairments

 

$

147,730

 

 

$

 

 

$

 

 

$

147,730

 

Net income (loss) from continuing operations

 

$

(115,355)

 

 

$

10,230

 

 

$

(14,323)

 

 

$

(119,448)

 

Adjusted EBITDA (1)

 

$

35,561

 

 

$

6,344

 

 

$

(3,931)

 

 

$

37,974

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

39,042

 

 

$

6,344

 

 

$

(25,992)

 

 

$

19,394

 

Investing activities

 

$

259

 

 

$

 

 

$

 

 

$

259

 

Financing activities

 

$

 

 

$

 

 

$

(33,551)

 

 

$

(33,551)

 

Distributable cash flow (1) (2)

 

$

39,323

 

 

$

6,344

 

 

$

(25,992)

 

 

$

19,602

 

Free cash flow (1)

 

$

39,412

 

 

$

6,344

 

 

$

(25,992)

 

 

$

19,764

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

27,944

 

 

$

1,986

 

 

$

 

 

$

29,930

 

Gain on asset sales and disposals

 

 

 

 

 

 

 

 

Total revenues and other income

 

$

27,944

 

 

$

1,986

 

 

$

 

 

$

29,930

 

Asset impairments

 

$

934

 

 

$

 

 

$

 

 

$

934

 

Net income (loss) from continuing operations

 

$

19,173

 

 

$

1,890

 

 

$

(13,847)

 

 

$

7,216

 

Adjusted EBITDA (1)

 

$

22,259

 

 

$

(96)

 

 

$

(3,634)

 

 

$

18,529

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

28,573

 

 

$

(75)

 

 

$

(4,175)

 

 

$

24,323

 

Investing activities

 

$

332

 

 

$

 

 

$

 

 

$

332

 

Financing activities

 

$

 

 

$

 

 

$

(19,910)

 

 

$

(19,910)

 

Distributable cash flow (1)

 

$

28,905

 

 

$

(75)

 

 

$

(4,175)

 

 

$

24,655

 

Free cash flow (1)

 

$

28,905

 

 

$

(75)

 

 

$

(4,175)

 

 

$

24,655

 

____________________

(1)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

(2)

Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment for the years ended December 31, 2020 and 2019:

 

 

Operating Business Segments

 

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

Revenues

 

$

129,011

 

 

$

10,728

 

 

$

 

 

$

139,739

 

Gain on asset sales and disposals

 

581

 

 

 

 

 

 

581

 

Total revenues and other income

 

$

129,592

 

 

$

10,728

 

 

$

 

 

$

140,320

 

Asset impairments

 

$

135,885

 

 

$

 

 

$

 

 

$

135,885

 

Net income (loss) from continuing operations

 

$

(40,180)

 

 

$

10,543

 

 

$

(55,182)

 

 

$

(84,819)

 

Adjusted EBITDA (1)

 

$

104,982

 

 

$

14,025

 

 

$

(14,293)

 

 

$

104,714

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

124,737

 

 

$

14,037

 

 

$

(51,206)

 

 

$

87,568

 

Investing activities

 

$

1,745

 

 

$

 

 

$

 

 

$

1,745

 

Financing activities

 

$

 

 

$

 

 

$

(87,788)

 

 

$

(87,788)

 

Distributable cash flow (1) (2)

 

$

127,482

 

 

$

14,037

 

 

$

(51,206)

 

 

$

90,248

 

Free cash flow (1)

 

$

125,859

 

 

$

14,037

 

 

$

(51,206)

 

 

$

88,690

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Revenues

 

$

210,348

 

 

$

47,089

 

 

$

 

 

$

257,437

 

Gain on asset sales and disposals

 

6,498

 

 

 

 

 

 

6,498

 

Total revenues and other income

 

$

216,846

 

 

$

47,089

 

 

$

 

 

$

263,935

 

Asset impairments

 

$

148,214

 

 

$

 

 

$

 

 

$

148,214

 

Net income (loss) from continuing operations

 

$

21,211

 

 

$

46,840

 

 

$

(93,465)

 

 

$

(25,414)

 

Adjusted EBITDA (1)

 

$

184,357

 

 

$

31,601

 

 

$

(16,730)

 

 

$

199,228

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

Operating activities

 

$

178,863

 

 

$

31,601

 

 

$

(73,145)

 

 

$

137,319

 

Investing activities

 

$

8,221

 

 

$

 

 

$

 

 

$

8,221

 

Financing activities

 

$

 

 

$

 

 

$

(253,305)

 

 

$

(253,305)

 

Distributable cash flow (1) (2)

 

$

187,106

 

 

$

31,601

 

 

$

(73,145)

 

 

$

144,933

 

Free cash flow (1)

 

$

180,584

 

 

$

31,601

 

 

$

(73,145)

 

 

$

139,040

 

____________________

(1)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

(2)

Includes net proceeds from the sale of the construction aggregates business which are classified as investing cash flow from discontinued operations.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Operating Statistics - Coal Royalty and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

December 31,

 

September 30,

 

December 31,

(In thousands, except per ton data)

 

2020

 

2019

 

2020

 

2020

 

2019

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

131

 

 

686

 

 

102

 

 

647

 

 

3,460

 

Central

 

2,468

 

 

2,908

 

 

2,247

 

 

10,111

 

 

13,377

 

Southern

 

69

 

 

498

 

 

172

 

 

889

 

 

1,670

 

Total Appalachia

 

2,668

 

 

4,092

 

 

2,521

 

 

11,647

 

 

18,507

 

Illinois Basin

 

1,540

 

 

555

 

 

758

 

 

3,381

 

 

2,201

 

Northern Powder River Basin

 

506

 

 

1,057

 

 

365

 

 

1,738

 

 

3,036

 

Total coal sales volumes

 

4,714

 

 

5,704

 

 

3,644

 

 

16,766

 

 

23,744

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

$

2.92

 

 

$

0.88

 

 

$

3.06

 

 

$

2.36

 

 

$

1.96

 

Central

 

3.84

 

 

4.58

 

 

3.83

 

 

4.17

 

 

5.53

 

Southern

 

5.28

 

 

5.96

 

 

4.78

 

 

4.75

 

 

6.69

 

Illinois Basin

 

2.21

 

 

4.53

 

 

1.63

 

 

2.36

 

 

4.66

 

Northern Powder River Basin

 

3.11

 

 

2.33

 

 

3.46

 

 

3.50

 

 

2.90

 

Combined average coal royalty revenue per ton

 

3.23

 

 

3.84

 

 

3.36

 

 

3.70

 

 

4.67

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

Northern (1)

 

$

383

 

 

$

602

 

 

$

312

 

 

$

1,526

 

 

$

6,775

 

Central

 

9,481

 

 

13,332

 

 

8,602

 

 

42,207

 

 

73,960

 

Southern

 

364

 

 

2,965

 

 

823

 

 

4,221

 

 

11,169

 

Total Appalachia

 

10,228

 

 

16,899

 

 

9,737

 

 

47,954

 

 

91,904

 

Illinois Basin

 

3,403

 

 

2,516

 

 

1,234

 

 

7,973

 

 

10,255

 

Northern Powder River Basin

 

1,576

 

 

2,462

 

 

1,262

 

 

6,086

 

 

8,809

 

Unadjusted coal royalty revenues

 

15,207

 

 

21,877

 

 

12,233

 

 

62,013

 

 

110,968

 

Coal royalty adjustment for minimum leases (2)

 

(3,898)

 

 

174

 

 

(1,623)

 

 

(10,145)

 

 

(1,356)

 

Total coal royalty revenues

 

$

11,309

 

 

$

22,051

 

 

$

10,610

 

 

$

51,868

 

 

$

109,612

 

Other revenues

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenue (2)

 

$

8,195

 

 

$

2,737

 

 

$

4,267

 

 

$

21,749

 

 

$

24,068

 

Minimum lease straight-line revenues (2)

 

4,447

 

 

3,758

 

 

3,553

 

 

16,796

 

 

14,910

 

Property tax revenues

 

1,530

 

 

1,871

 

 

1,896

 

 

5,786

 

 

6,287

 

Wheelage revenues

 

1,557

 

 

845

 

 

1,680

 

 

7,025

 

 

5,880

 

Coal overriding royalty revenues

 

1,658

 

 

3,333

 

 

1,314

 

 

4,977

 

 

13,496

 

Lease amendment revenues

 

859

 

 

1,271

 

 

858

 

 

3,450

 

 

7,991

 

Aggregates royalty revenues

 

649

 

 

610

 

 

221

 

 

1,717

 

 

4,265

 

Oil and gas royalty revenues

 

893

 

 

456

 

 

1,078

 

 

5,816

 

 

3,031

 

Other revenues

 

230

 

 

100

 

 

263

 

 

982

 

 

1,529

 

Total other revenues

 

$

20,018

 

 

$

14,981

 

 

$

15,130

 

 

$

68,298

 

 

$

81,457

 

Coal royalty and other

 

$

31,327

 

 

$

37,032

 

 

$

25,740

 

 

$

120,166

 

 

$

191,069

 

Transportation and processing services revenues

 

2,194

 

 

4,539

 

 

2,204

 

 

8,845

 

 

19,279

 

Gain (loss) on asset sales and disposals

 

116

 

 

(111)

 

 

 

 

581

 

 

6,498

 

Total Coal Royalty and Other segment revenues and other income

 

$

33,637

 

 

$

41,460

 

 

$

27,944

 

 

$

129,592

 

 

$

216,846

 

___________________

(1)

Northern Appalachia includes NRP's Hibbs Run property that has significant sales volumes, but a low fixed rate per ton.

(2)

Effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or minimum lease straight-line revenues due to contract modifications with Foresight Energy Resources LLC ("Foresight") that fixed consideration paid to us over a two-year period.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

22,382

 

 

5,484

 

 

(13,179)

 

 

$

14,687

 

Less: equity earnings from unconsolidated investment

 

 

 

(5,528)

 

 

 

 

(5,528)

 

Add: total distributions from unconsolidated investment

 

 

 

 

 

 

 

 

Add: interest expense, net

 

23

 

 

 

 

10,054

 

 

10,077

 

Add: depreciation, depletion and amortization

 

3,013

 

 

 

 

 

 

3,013

 

Add: asset impairments

 

2,668

 

 

 

 

 

 

2,668

 

Adjusted EBITDA

 

$

28,086

 

 

$

(44)

 

 

$

(3,125)

 

 

$

24,917

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(115,355)

 

 

$

10,230

 

 

$

(14,323)

 

 

$

(119,448)

 

Less: equity earnings from unconsolidated investment

 

 

 

(10,256)

 

 

 

 

(10,256)

 

Add: total distributions from unconsolidated investment

 

 

 

6,370

 

 

 

 

6,370

 

Add: interest expense, net

 

 

 

 

 

10,392

 

 

10,392

 

Add: depreciation, depletion and amortization

 

3,186

 

 

 

 

 

3,186

 

Add: asset impairments

 

147,730

 

 

 

 

 

 

147,730

 

Adjusted EBITDA

 

$

35,561

 

 

$

6,344

 

 

$

(3,931)

 

 

$

37,974

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2020

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

19,173

 

 

$

1,890

 

 

(13,847)

 

 

$

7,216

 

Less: equity earnings from unconsolidated investment

 

 

 

(1,986)

 

 

 

 

(1,986)

 

Add: total distributions from unconsolidated investment

 

 

 

 

 

 

 

 

Add: interest expense, net

 

41

 

 

 

 

10,213

 

 

10,254

 

Add: depreciation, depletion and amortization

 

2,111

 

 

 

 

 

 

2,111

 

Add: asset impairments

 

934

 

 

 

 

 

 

934

 

Adjusted EBITDA

 

$

22,259

 

 

$

(96)

 

 

$

(3,634)

 

 

$

18,529

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(40,180)

 

 

$

10,543

 

 

$

(55,182)

 

 

$

(84,819)

 

Less: equity earnings from unconsolidated investment

 

 

 

(10,728)

 

 

 

 

(10,728)

 

Add: total distributions from unconsolidated investment

 

 

 

14,210

 

 

 

 

14,210

 

Add: interest expense, net

 

79

 

 

 

 

40,889

 

 

40,968

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

Add: depreciation, depletion and amortization

 

9,198

 

 

 

 

 

 

9,198

 

Add: asset impairments

 

135,885

 

 

 

 

 

 

135,885

 

Adjusted EBITDA

 

$

104,982

 

 

$

14,025

 

 

$

(14,293)

 

 

$

104,714

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

21,211

 

 

$

46,840

 

 

$

(93,465)

 

 

$

(25,414)

 

Less: equity earnings from unconsolidated investment

 

 

 

(47,089)

 

 

 

 

(47,089)

 

Add: total distributions from unconsolidated investment

 

 

 

31,850

 

 

 

 

31,850

 

Add: interest expense, net

 

 

 

 

 

47,453

 

 

47,453

 

Add: loss on extinguishment of debt

 

 

 

 

 

29,282

 

 

29,282

 

Add: depreciation, depletion and amortization

 

14,932

 

 

 

 

 

 

14,932

 

Add: asset impairments

 

148,214

 

 

 

 

 

 

148,214

 

Adjusted EBITDA

 

$

184,357

 

 

$

31,601

 

 

$

(16,730)

 

 

$

199,228

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Distributable Cash Flow and Free Cash Flow

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Three Months Ended December 31, 2020

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

33,655

 

 

$

(54)

 

 

$

(20,446)

 

 

13,155

 

Add: proceeds from asset sales and disposals

 

116

 

 

 

 

 

 

116

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

1

 

Add: return of long-term contract receivable

 

660

 

 

 

 

 

 

660

 

Distributable cash flow

 

$

34,431

 

 

$

(54)

 

 

$

(20,446)

 

 

$

13,932

 

Less: proceeds from asset sales and disposals

 

(116)

 

 

 

 

 

 

(116)

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(1)

 

Less: acquisition costs

 

 

 

 

 

 

 

 

Free cash flow

 

$

34,315

 

 

$

(54)

 

 

$

(20,446)

 

 

$

13,815

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2019

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

39,042

 

 

$

6,344

 

 

$

(25,992)

 

 

$

19,394

 

Add: proceeds from asset sales and disposals

 

(111)

 

 

 

 

 

 

(111)

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(73)

 

Add: return of long-term contract receivable

 

392

 

 

 

 

 

 

392

 

Distributable cash flow

 

$

39,323

 

 

$

6,344

 

 

$

(25,992)

 

 

$

19,602

 

Less: proceeds from asset sales and disposals

 

111

 

 

 

 

 

 

111

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

73

 

Less: acquisition costs

 

(22)

 

 

 

 

 

 

(22)

 

Free cash flow

 

$

39,412

 

 

$

6,344

 

 

$

(25,992)

 

 

$

19,764

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2020

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

28,573

 

 

$

(75)

 

 

$

(4,175)

 

 

$

24,323

 

Add: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

Add: return of long-term contract receivable

 

332

 

 

 

 

 

 

332

 

Distributable cash flow

 

$

28,905

 

 

$

(75)

 

 

$

(4,175)

 

 

$

24,655

 

Less: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

 

Less: acquisition costs

 

 

 

 

 

 

 

 

Free cash flow

 

$

28,905

 

 

$

(75)

 

 

$

(4,175)

 

 

$

24,655

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Distributable Cash Flow and Free Cash Flow

 

 

 

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

For the Year Ended December 31, 2020

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

124,737

 

 

$

14,037

 

 

$

(51,206)

 

 

$

87,568

 

Add: proceeds from asset sales and disposals

 

623

 

 

 

 

 

 

623

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(65)

 

Add: return of long-term contract receivable

 

2,122

 

 

 

 

 

 

2,122

 

Distributable cash flow

 

$

127,482

 

 

$

14,037

 

 

$

(51,206)

 

 

$

90,248

 

Less: proceeds from asset sales and disposals

 

(623)

 

 

 

 

 

 

(623)

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

65

 

Less: acquisition costs

 

(1,000)

 

 

 

 

 

 

(1,000)

 

Free cash flow

 

$

125,859

 

 

$

14,037

 

 

$

(51,206)

 

 

$

88,690

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2019

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities of continuing operations

 

$

178,863

 

 

$

31,601

 

 

$

(73,145)

 

 

$

137,319

 

Add: proceeds from asset sales and disposals

 

6,500

 

 

 

 

 

 

6,500

 

Add: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

(629)

 

Add: return of long-term contract receivable

 

1,743

 

 

 

 

 

 

1,743

 

Distributable cash flow

 

$

187,106

 

 

$

31,601

 

 

$

(73,145)

 

 

$

144,933

 

Less: proceeds from asset sales and disposals

 

(6,500)

 

 

 

 

 

 

(6,500)

 

Less: proceeds from sale of discontinued operations

 

 

 

 

 

 

 

629

 

Less: acquisition costs

 

(22)

 

 

 

 

 

 

(22)

 

Free cash flow

 

$

180,584

 

 

$

31,601

 

 

$

(73,145)

 

 

$

139,040

 

Cash Flow Cushion

 

 

For the Year Ended December 31,

(In thousands)

 

2020

 

2019

Free cash flow

 

$

88,690

 

 

$

139,040

 

Less: mandatory Opco debt repayments

 

(46,176)

 

 

(68,128)

 

Less: preferred unit distributions and redemption of PIK units

 

(26,363)

 

 

(30,000)

 

Less: common unit distributions

 

(16,890)

 

 

(33,150)

 

Cash flow cushion

 

$

(739)

 

 

$

7,762

 

Leverage Ratio

(In thousands)

 

For the Year Ended December 31, 2020

Adjusted EBITDA

 

$

104,714

Debt—at December 31, 2020

 

$

477,880

Leverage Ratio (1)

 

4.6x

___________________

(1)

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2020 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 December 31, 2020, was 4.6x as calculated under the indenture governing NRP's 2025 parent company notes.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Return on Capital Employed ("ROCE")

 

 

Coal Royalty
and Other

 

 

 

Corporate and
Financing

 

 

(In thousands)

 

 

Soda Ash

 

 

Total

LTM Ended December 31, 2020

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(40,180)

 

 

$

10,543

 

 

$

(55,182)

 

 

$

(84,819)

 

Financing costs

 

79

 

 

 

 

41,275

 

 

41,354

 

Return

 

$

(40,101)

 

 

$

10,543

 

 

$

(13,907)

 

 

$

(43,465)

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

 

 

 

 

 

Total assets of continuing operations

 

$

817,768

 

 

$

263,080

 

 

$

3,353

 

 

$

1,084,201

 

Less: total current liabilities of continuing operations excluding current debt

 

(11,542)

 

 

 

 

(5,325)

 

 

(16,867)

 

Less: total long-term liabilities of continuing operations excluding long-term debt

 

(51,700)

 

 

 

 

(462)

 

 

(52,162)

 

Capital employed excluding discontinued operations

 

$

754,526

 

 

$

263,080

 

 

$

(2,434)

 

 

$

1,015,172

 

 

 

 

 

 

 

 

 

 

Total partners' capital (1)

 

$

757,461

 

 

$

263,080

 

 

$

(683,219)

 

 

$

338,963

 

Less: non-controlling interest

 

(2,935)

 

 

 

 

 

 

(2,935)

 

Less: partners' capital from discontinued operations

 

 

 

 

 

 

 

(1,641)

 

Total partners' capital excluding discontinued operations

 

$

754,526

 

 

$

263,080

 

 

$

(683,219)

 

 

$

334,387

 

Class A convertible preferred units

 

 

 

 

 

164,587

 

 

164,587

 

Debt

 

 

 

 

 

516,198

 

 

516,198

 

Capital employed excluding discontinued operations

 

$

754,526

 

 

$

263,080

 

 

$

(2,434)

 

 

$

1,015,172

 

 

 

 

 

 

 

 

 

 

ROCE excluding discontinued operations

 

(5.3)%

 

4.0%

 

N/A

 

(4.3)%

 

 

 

 

 

 

 

 

 

Excluding asset impairments:

 

 

 

 

 

 

 

 

Return

 

$

(40,101)

 

 

$

10,543

 

 

$

(13,907)

 

 

$

(43,465)

 

Add: asset impairments

 

135,885

 

 

 

 

 

 

135,885

 

Return excluding asset impairments

 

$

95,784

 

 

$

10,543

 

 

$

(13,907)

 

 

$

92,420

 

 

 

 

 

 

 

 

 

 

ROCE excluding discontinued operations and asset impairments

 

12.7%

 

4.0%

 

N/A

 

9.1%

___________________

(1)

Total partners' capital includes $1.6 million from discontinued operations.

 

Contacts

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

Contacts

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