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Natural Resource Partners L.P. Reports First Quarter 2024 Results and Declares First Quarter 2024 Distribution of $0.75 per Common Unit

Natural Resource Partners L.P. (NYSE:NRP) today reported first quarter 2024 results as follows:

 

 

For the Three Months Ended

 

 

Last Twelve Months Ended

 

(In thousands) (Unaudited)

 

March 31, 2024

 

Net income

 

$

56,213

 

 

$

255,373

 

Operating cash flow

 

 

71,499

 

 

 

309,577

 

Free cash flow (1)

 

 

72,146

 

 

 

312,081

 

 

 

 

 

 

 

(1)

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

Highlights:

  • Generated $72.1 million of free cash flow in the first quarter of 2024
  • Repurchased 1.2 million warrants with $55.7 million in cash and 198,767 common units
  • Increased credit facility borrowing capacity $45 million from $155 million to $200 million
  • Paid fourth quarter 2023 common unit distribution of $0.75 per unit
  • Paid special distribution of $2.44 per common unit to help cover unitholder tax liabilities associated with owning NRP common units in 2023
  • In April, repurchased 0.3 million warrants with $10.0 million in cash and 89,059 common units; Zero warrants remain outstanding

"NRP generated $72 million of free cash flow in the first quarter of 2024 and $312 million of free cash flow over the last twelve months," said Craig Nunez, NRP's president and chief operating officer. "NRP has generated more free cash flow over the last two years than during any comparable period in the history of the Partnership. This performance has allowed us to make considerable progress toward our goal of eliminating all our financial obligations. The sum of debt and preferred equity outstanding is down to approximately $260 million, the Partnership is warrant free, and our financial position is solid and improving. While we expect lower prices for coal and soda ash to drive our free cash flow in the coming quarters below the record levels realized in recent years, we expect to continue making steady progress paying down debt and preferred equity. We continue to believe eliminating all our obligations while maintaining common unit distributions to help cover unitholder tax liabilities is the right strategy to maximize intrinsic value and maximize unitholder returns.”

NRP announced today that the board of directors of its general partner declared a first quarter 2024 cash distribution of $0.75 per common unit to be paid on May 28, 2024, to unitholders of record on May 21, 2024. In addition, the board declared a $2.15 million cash distribution on NRP's outstanding preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the board of directors. The board of directors considers numerous factors each quarter in determining cash distributions including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability, and the level of cash reserves that the board determines is necessary for future operating and capital needs.

Segment Performance

Mineral Rights

Mineral Rights net income, operating cash flow, and free cash flow for the first quarter of 2024 decreased $8.2 million, $4.1 million, and $4.1 million, respectively, as compared to the prior year period. These decreases were primarily due to lower metallurgical coal prices as compared to the prior year period. Approximately 75% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal in the first quarter of 2024.

Metallurgical and thermal coal prices declined during the first quarter of 2024, significantly lower than the highs seen in 2022, but above historical norms. NRP expects continued price volatility as global softening in steel demand impacts metallurgical prices, and mild weather, high inventory levels, low natural gas prices, and scheduled shutdowns of thermal coal plants should weaken demand for thermal coal. However, limitations on operators' ability to increase production due to limited access to capital, labor shortages, and inflationary pressures should provide some price support for metallurgical and thermal coal for the foreseeable future.

NRP continues to explore carbon neutral revenue opportunities across its large asset portfolio, including the sequestration of carbon dioxide underground and in standing forests, the generation of electricity using geothermal, solar, and wind energy, and lithium production. While the timing and likelihood of additional cash flows from these activities is uncertain, NRP believes its large ownership footprint throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by NRP.

Soda Ash

Soda Ash net income in the first quarter of 2024 decreased $13.7 million as compared to the prior year period due to lower sales prices and volumes primarily driven by new supply from China. Operating cash flow and free cash flow in the first quarter of 2024 improved $3.5 million as compared to the prior year period due to a higher cash distribution received from Sisecam Wyoming in the first quarter of 2024 relating to results in the fourth quarter of 2023.

Global soda ash prices were significantly lower in the first quarter of 2024 as compared to the prior year period primarily due to new supply from China. NRP believes lower international prices will persist throughout the remainder of the year and into next year as the market contends with slower global growth and absorbs the additional supply.

Corporate and Financing

In the first quarter of 2024 Corporate and Financing costs increased $1.1 million and operating cash flow and free cash flow decreased $0.8 million as compared to the prior year period primarily due to higher interest expense and cash paid for interest in the first quarter of 2024 due to increased borrowings outstanding on the credit facility used for warrant settlements.

NRP repurchased 1.2 million warrants for $55.7 million in cash and 198,767 common units during the first quarter of 2024. In April of 2024, NRP repurchased the remainder of the outstanding 0.3 million warrants for $10.0 million in cash and 89,059 common units. NRP has now retired all 4.0 million of its previously issued warrants.

In February 2024, NRP declared and paid a fourth quarter 2023 cash distribution of $0.75 per common unit and a $2.15 million cash distribution on its preferred units. In March 2024, NRP declared and paid a special distribution of $2.44 per common unit to help cover the tax liability associated with owning NRP units in 2023. Today, NRP declared a first quarter 2024 cash distribution of $0.75 per common unit and a $2.15 million cash distribution on its outstanding preferred units.

NRP increased its revolving credit facility borrowing capacity by $45 million to $200 million in the first quarter of 2024. NRP's available liquidity was $64.8 million at March 31, 2024, consisting of $11.0 million of cash and $53.8 million of borrowing capacity available under its revolving credit facility.

NRP's consolidated leverage ratio was 0.6x at March 31, 2024.

Conference Call

A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link: https://registrations.events/direct/Q4I890960. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full conference call we suggest registering at minimum 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website.

Withholding Information for Foreign Investors

Concurrent with this announcement, we are providing qualified notice to brokers and nominees that hold NRP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of NRP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, NRP's distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the sum of the highest applicable rate plus ten percent (10%).

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash.

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

Forward-Looking Statements

This press release includes forward-looking statements as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: future distributions on the Partnerships 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 LLCs trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; and other factors detailed in Natural Resource Partners Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

“Distributable cash flow or "DCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

“Free cash flow or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures and cash flow used in acquisition costs classified as investing or financing activities. FCF is calculated before mandatory debt repayments. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

"Leverage ratio" represents the outstanding principal of NRP's debt at the end of the period divided by the last twelve months' Adjusted EBITDA as defined above. NRP believes that leverage ratio is a useful measure to management and investors to evaluate and monitor the indebtedness of NRP relative to its ability to generate income to service such debt and in understanding trends in NRPs overall financial condition. Leverage ratio may not be calculated the same for NRP as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios.

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Comprehensive Income

 

For the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

(In thousands, except per unit data)

 

2024

 

 

2023

 

 

2023

 

Revenues and other income

 

 

 

 

 

 

 

 

 

 

 

 

Royalty and other mineral rights

 

$

67,372

 

 

$

76,271

 

 

$

72,922

 

Transportation and processing services

 

 

3,427

 

 

 

3,598

 

 

 

3,476

 

Equity in earnings of Sisecam Wyoming

 

 

5,450

 

 

 

19,254

 

 

 

14,764

 

Gain on asset sales and disposals

 

 

165

 

 

 

96

 

 

 

2,001

 

Total revenues and other income

 

$

76,414

 

 

$

99,219

 

 

$

93,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

 

$

5,733

 

 

$

7,163

 

 

$

8,864

 

Depreciation, depletion and amortization

 

 

4,654

 

 

 

4,083

 

 

 

6,020

 

General and administrative expenses

 

 

6,327

 

 

 

5,845

 

 

 

8,954

 

Asset impairments

 

 

 

 

 

 

 

 

424

 

Total operating expenses

 

$

16,714

 

 

$

17,091

 

 

$

24,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

59,700

 

 

$

82,128

 

 

$

68,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

$

(3,487

)

 

$

(2,853

)

 

$

(3,921

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

56,213

 

 

$

79,275

 

 

$

64,980

 

Less: income attributable to preferred unitholders

 

 

(2,150

)

 

 

(6,661

)

 

 

(2,151

)

Less: redemption of preferred units

 

 

 

 

 

(16,228

)

 

 

 

Net income attributable to common unitholders and the general partner

 

$

54,063

 

 

$

56,386

 

 

$

62,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common unitholders

 

$

52,982

 

 

$

55,258

 

 

$

61,572

 

Net income attributable to the general partner

 

 

1,081

 

 

 

1,128

 

 

 

1,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common unit

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

4.13

 

 

$

4.40

 

 

$

4.87

 

Diluted

 

 

3.83

 

 

 

3.44

 

 

 

4.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

56,213

 

 

$

79,275

 

 

$

64,980

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

845

 

 

 

(19,583

)

 

 

(5,367

)

Comprehensive income

 

$

57,058

 

 

$

59,692

 

 

$

59,613

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

56,213

 

 

$

79,275

 

 

$

64,980

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

4,654

 

 

 

4,083

 

 

 

6,020

 

Distributions from unconsolidated investment

 

 

14,210

 

 

 

10,780

 

 

 

15,338

 

Equity earnings from unconsolidated investment

 

 

(5,450

)

 

 

(19,254

)

 

 

(14,764

)

Gain on asset sales and disposals

 

 

(165

)

 

 

(96

)

 

 

(2,001

)

Asset impairments

 

 

 

 

 

 

 

 

424

 

Bad debt expense

 

 

(813

)

 

 

(610

)

 

 

1,431

 

Unit-based compensation expense

 

 

2,964

 

 

 

2,491

 

 

 

3,007

 

Amortization of debt issuance costs and other

 

 

(749

)

 

 

25

 

 

 

260

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

9,433

 

 

 

7,061

 

 

 

(4,254

)

Accounts payable

 

 

629

 

 

 

(541

)

 

 

(258

)

Accrued liabilities

 

 

(8,225

)

 

 

(8,805

)

 

 

6,063

 

Accrued interest

 

 

412

 

 

 

263

 

 

 

(641

)

Deferred revenue

 

 

1,028

 

 

 

(154

)

 

 

1,480

 

Other items, net

 

 

(2,642

)

 

 

(1,618

)

 

 

701

 

Net cash provided by operating activities

 

$

71,499

 

 

$

72,900

 

 

$

77,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

 

$

165

 

 

$

101

 

 

$

2,002

 

Return of long-term contract receivable

 

 

647

 

 

 

598

 

 

 

633

 

Capital expenditures

 

 

 

 

 

(2

)

 

 

 

Net cash provided by investing activities

 

$

812

 

 

$

697

 

 

$

2,635

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Debt borrowings

 

$

89,357

 

 

$

94,200

 

 

$

33,800

 

Debt repayments

 

 

(55,696

)

 

 

(89,696

)

 

 

(86,335

)

Distributions to common unitholders and the general partner

 

 

(42,186

)

 

 

(40,900

)

 

 

(9,670

)

Distributions to preferred unitholders

 

 

(2,150

)

 

 

(8,086

)

 

 

(2,150

)

Redemption of preferred units

 

 

 

 

 

(47,499

)

 

 

 

Warrant settlements

 

 

(55,689

)

 

 

 

 

 

(22,481

)

Other items, net

 

 

(6,946

)

 

 

(3,052

)

 

 

(7

)

Net cash used in financing activities

 

$

(73,310

)

 

$

(95,033

)

 

$

(86,843

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

$

(999

)

 

$

(21,436

)

 

$

(6,422

)

Cash and cash equivalents at beginning of period

 

 

11,989

 

 

 

39,091

 

 

 

18,411

 

Cash and cash equivalents at end of period

 

$

10,990

 

 

$

17,655

 

 

$

11,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

2,843

 

 

$

2,474

 

 

$

4,372

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Balance Sheets

 

 

 

March 31,

 

 

December 31,

 

 

 

2024

 

 

2023

 

(In thousands, except unit data)

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,990

 

 

$

11,989

 

Accounts receivable, net

 

 

33,874

 

 

 

41,086

 

Other current assets, net

 

 

3,494

 

 

 

2,218

 

Total current assets

 

$

48,358

 

 

$

55,293

 

Land

 

 

24,008

 

 

 

24,008

 

Mineral rights, net

 

 

390,176

 

 

 

394,483

 

Intangible assets, net

 

 

13,340

 

 

 

13,682

 

Equity in unconsolidated investment

 

 

268,634

 

 

 

276,549

 

Long-term contract receivable, net

 

 

25,632

 

 

 

26,321

 

Other long-term assets, net

 

 

8,034

 

 

 

7,540

 

Total assets

 

$

778,182

 

 

$

797,876

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,514

 

 

$

885

 

Accrued liabilities

 

 

5,064

 

 

 

12,987

 

Accrued interest

 

 

995

 

 

 

584

 

Current portion of deferred revenue

 

 

5,635

 

 

 

4,599

 

Current portion of long-term debt, net

 

 

14,202

 

 

 

30,785

 

Total current liabilities

 

$

27,410

 

 

$

49,840

 

Deferred revenue

 

 

38,348

 

 

 

38,356

 

Long-term debt, net

 

 

174,595

 

 

 

124,273

 

Other non-current liabilities

 

 

6,305

 

 

 

7,172

 

Total liabilities

 

$

246,658

 

 

$

219,641

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Class A Convertible Preferred Units (71,666 units issued and outstanding at March 31, 2024 and December 31, 2023 at $1,000 par value per unit; liquidation preference of $1,850 per unit at March 31, 2024 and December 31, 2023)

 

$

47,181

 

 

$

47,181

 

Partners’ capital

 

 

 

 

 

 

 

 

Common unitholders’ interest (12,960,064 and 12,634,642 units issued and outstanding at March 31, 2024 and December 31, 2023, respectively)

 

$

474,095

 

 

$

503,076

 

General partner’s interest

 

 

7,721

 

 

 

8,005

 

Warrant holders’ interest

 

 

4,804

 

 

 

23,095

 

Accumulated other comprehensive loss

 

 

(2,277

)

 

 

(3,122

)

Total partners’ capital

 

$

484,343

 

 

$

531,054

 

Total liabilities and partners' capital

 

$

778,182

 

 

$

797,876

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Unitholders

 

 

General

 

 

Warrant

 

 

Comprehensive

 

 

Partners'

 

(In thousands)

 

Units

 

 

Amounts

 

 

Partner

 

 

Holders

 

 

Loss

 

 

Capital

 

Balance at December 31, 2023

 

 

12,635

 

 

$

503,076

 

 

$

8,005

 

 

$

23,095

 

 

$

(3,122

)

 

$

531,054

 

Net income (1)

 

 

 

 

 

55,089

 

 

 

1,124

 

 

 

 

 

 

 

 

 

56,213

 

Distributions to common unitholders and the general partner

 

 

 

 

 

(41,342

)

 

 

(844

)

 

 

 

 

 

 

 

 

(42,186

)

Distributions to preferred unitholders

 

 

 

 

 

(2,107

)

 

 

(43

)

 

 

 

 

 

 

 

 

(2,150

)

Issuance of unit-based awards

 

 

126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

 

 

 

(3,971

)

 

 

 

 

 

 

 

 

 

 

 

(3,971

)

Capital contribution

 

 

 

 

 

 

 

 

227

 

 

 

 

 

 

 

 

 

227

 

Warrant settlements

 

 

199

 

 

 

(36,650

)

 

 

(748

)

 

 

(18,291

)

 

 

 

 

 

(55,689

)

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

845

 

 

 

845

 

Balance at March 31, 2024

 

 

12,960

 

 

$

474,095

 

 

$

7,721

 

 

$

4,804

 

 

$

(2,277

)

 

$

484,343

 

 

 

 

 

 

(1)

Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

 

Common Unitholders

 

 

General

 

 

Warrant

 

 

Comprehensive

 

 

Partners'

 

(In thousands)

 

Units

 

 

Amounts

 

 

Partner

 

 

Holders

 

 

Income (Loss)

 

 

Capital

 

Balance at December 31, 2022

 

 

12,506

 

 

$

404,799

 

 

$

5,977

 

 

$

47,964

 

 

$

18,717

 

 

$

477,457

 

Net income (1)

 

 

 

 

 

77,690

 

 

 

1,585

 

 

 

 

 

 

 

 

 

79,275

 

Redemption of preferred units

 

 

 

 

 

(15,904

)

 

 

(324

)

 

 

 

 

 

 

 

 

(16,228

)

Distributions to common unitholders and the general partner

 

 

 

 

 

(40,082

)

 

 

(818

)

 

 

 

 

 

 

 

 

(40,900

)

Distributions to preferred unitholders

 

 

 

 

 

(7,924

)

 

 

(162

)

 

 

 

 

 

 

 

 

(8,086

)

Issuance of unit-based awards

 

 

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

 

 

 

(1,178

)

 

 

 

 

 

 

 

 

 

 

 

(1,178

)

Capital contribution

 

 

 

 

 

 

 

 

142

 

 

 

 

 

 

 

 

 

142

 

Comprehensive loss from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,583

)

 

 

(19,583

)

Balance at March 31, 2023

 

 

12,635

 

 

$

417,401

 

 

$

6,400

 

 

$

47,964

 

 

$

(866

)

 

$

470,899

 

 

 

 

 

 

(1)

Net income includes $6.66 million of income attributable to preferred unitholders that accumulated during the period, of which $6.53 million is allocated to the common unitholders and $0.13 million is allocated to the general partner.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following table presents NRP's unaudited business results by segment for the three months ended March 31, 2024 and 2023 and December 31, 2023:

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

Mineral

 

 

 

 

 

 

Corporate and

 

 

 

 

 

(In thousands)

 

Rights

 

 

Soda Ash

 

 

Financing

 

 

Total

 

For the Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

70,799

 

 

$

5,450

 

 

$

 

 

$

76,249

 

Gain on asset sales and disposals

 

 

165

 

 

 

 

 

 

 

 

 

165

 

Total revenues and other income

 

$

70,964

 

 

$

5,450

 

 

$

 

 

$

76,414

 

Asset impairments

 

$

 

 

$

 

 

$

 

 

$

 

Net income (loss)

 

$

60,644

 

 

$

5,388

 

 

$

(9,819

)

 

$

56,213

 

Adjusted EBITDA (1)

 

$

65,293

 

 

$

14,148

 

 

$

(6,327

)

 

$

73,114

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

69,749

 

 

$

14,148

 

 

$

(12,398

)

 

$

71,499

 

Investing activities

 

$

812

 

 

$

 

 

$

 

 

$

812

 

Financing activities

 

$

(1,086

)

 

$

 

 

$

(72,224

)

 

$

(73,310

)

Distributable cash flow (1)

 

$

70,561

 

 

$

14,148

 

 

$

(12,398

)

 

$

72,311

 

Free cash flow (1)

 

$

70,396

 

 

$

14,148

 

 

$

(12,398

)

 

$

72,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

79,869

 

 

$

19,254

 

 

$

 

 

$

99,123

 

Gain on asset sales and disposals

 

 

96

 

 

 

 

 

 

 

 

 

96

 

Total revenues and other income

 

$

79,965

 

 

$

19,254

 

 

$

 

 

$

99,219

 

Asset impairments

 

$

 

 

$

 

 

$

 

 

$

 

Net income (loss)

 

$

68,881

 

 

$

19,096

 

 

$

(8,702

)

 

$

79,275

 

Adjusted EBITDA (1)

 

$

72,960

 

 

$

10,622

 

 

$

(5,845

)

 

$

77,737

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

73,858

 

 

$

10,617

 

 

$

(11,575

)

 

$

72,900

 

Investing activities

 

$

699

 

 

$

 

 

$

(2

)

 

$

697

 

Financing activities

 

$

(583

)

 

$

 

 

$

(94,450

)

 

$

(95,033

)

Distributable cash flow (1)

 

$

74,557

 

 

$

10,617

 

 

$

(11,577

)

 

$

73,597

 

Free cash flow (1)

 

$

74,456

 

 

$

10,617

 

 

$

(11,577

)

 

$

73,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

76,398

 

 

$

14,764

 

 

$

 

 

$

91,162

 

Gain on asset sales and disposals

 

 

2,001

 

 

 

 

 

 

 

 

 

2,001

 

Total revenues and other income

 

$

78,399

 

 

$

14,764

 

 

$

 

 

$

93,163

 

Asset impairments

 

$

424

 

 

$

 

 

$

 

 

$

424

 

Net income (loss)

 

$

63,127

 

 

$

14,732

 

 

$

(12,879

)

 

$

64,980

 

Adjusted EBITDA (1)

 

$

69,567

 

 

$

15,306

 

 

$

(8,954

)

 

$

75,919

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

70,147

 

 

$

15,306

 

 

$

(7,667

)

 

$

77,786

 

Investing activities

 

$

2,635

 

 

$

 

 

$

 

 

$

2,635

 

Financing activities

 

$

 

 

$

 

 

$

(86,843

)

 

$

(86,843

)

Distributable cash flow (1)

 

$

72,782

 

 

$

15,306

 

 

$

(7,667

)

 

$

80,421

 

Free cash flow (1)

 

$

70,780

 

 

$

15,306

 

 

$

(7,667

)

 

$

78,419

 

 

 

 

 

 

(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

 

 

 

March 31,

 

 

December 31,

 

(In thousands, except per ton data)

 

2024

 

 

2023

 

 

2023

 

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

 

117

 

 

 

379

 

 

 

92

 

Central

 

 

3,714

 

 

 

3,609

 

 

 

3,537

 

Southern

 

 

570

 

 

 

582

 

 

 

654

 

Total Appalachia

 

 

4,401

 

 

 

4,570

 

 

 

4,283

 

Illinois Basin

 

 

2,033

 

 

 

1,310

 

 

 

2,637

 

Northern Powder River Basin

 

 

949

 

 

 

1,085

 

 

 

1,259

 

Gulf Coast

 

 

265

 

 

 

58

 

 

 

801

 

Total coal sales volumes

 

 

7,648

 

 

 

7,023

 

 

 

8,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

1.86

 

 

$

9.86

 

 

$

2.18

 

Central

 

 

8.08

 

 

 

9.92

 

 

 

9.12

 

Southern

 

 

11.58

 

 

 

14.94

 

 

 

14.04

 

Illinois Basin

 

 

2.56

 

 

 

3.57

 

 

 

3.57

 

Northern Powder River Basin

 

 

4.85

 

 

 

4.68

 

 

 

3.89

 

Gulf Coast

 

 

0.75

 

 

 

0.57

 

 

 

0.63

 

Combined average coal royalty revenue per ton

 

 

6.12

 

 

 

8.26

 

 

 

6.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

218

 

 

$

3,737

 

 

$

201

 

Central

 

 

29,992

 

 

 

35,806

 

 

 

32,269

 

Southern

 

 

6,602

 

 

 

8,697

 

 

 

9,181

 

Total Appalachia

 

 

36,812

 

 

 

48,240

 

 

 

41,651

 

Illinois Basin

 

 

5,211

 

 

 

4,675

 

 

 

9,426

 

Northern Powder River Basin

 

 

4,599

 

 

 

5,075

 

 

 

4,898

 

Gulf Coast

 

 

200

 

 

 

33

 

 

 

508

 

Unadjusted coal royalty revenues

 

 

46,822

 

 

 

58,023

 

 

 

56,483

 

Coal royalty adjustment for minimum leases

 

 

(4

)

 

 

 

 

 

1

 

Total coal royalty revenues

 

$

46,818

 

 

$

58,023

 

 

$

56,484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

924

 

 

$

613

 

 

$

1,297

 

Minimum lease straight-line revenues

 

 

4,171

 

 

 

4,503

 

 

 

5,975

 

Carbon neutral initiative revenues

 

 

2,161

 

 

 

2,118

 

 

 

55

 

Wheelage revenues

 

 

2,672

 

 

 

3,869

 

 

 

2,653

 

Property tax revenues

 

 

1,892

 

 

 

1,470

 

 

 

1,509

 

Coal overriding royalty revenues

 

 

1,169

 

 

 

188

 

 

 

1,010

 

Lease amendment revenues

 

 

702

 

 

 

851

 

 

 

748

 

Aggregates royalty revenues

 

 

772

 

 

 

753

 

 

 

701

 

Oil and gas royalty revenues

 

 

3,640

 

 

 

3,588

 

 

 

2,261

 

Other revenues

 

 

2,451

 

 

 

295

 

 

 

229

 

Total other revenues

 

$

20,554

 

 

$

18,248

 

 

$

16,438

 

Royalty and other mineral rights

 

$

67,372

 

 

$

76,271

 

 

$

72,922

 

Transportation and processing services revenues

 

 

3,427

 

 

 

3,598

 

 

 

3,476

 

Gain on asset sales and disposals

 

 

165

 

 

 

96

 

 

 

2,001

 

Total Mineral Rights segment revenues and other income

 

$

70,964

 

 

$

79,965

 

 

$

78,399

 

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 March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

60,644

 

 

$

5,388

 

 

$

(9,819

)

 

$

56,213

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(5,450

)

 

 

 

 

 

(5,450

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

14,210

 

 

 

 

 

 

14,210

 

Add: interest expense, net

 

 

 

 

 

 

 

 

3,487

 

 

 

3,487

 

Add: depreciation, depletion and amortization

 

 

4,649

 

 

 

 

 

 

5

 

 

 

4,654

 

Add: asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

65,293

 

 

$

14,148

 

 

$

(6,327

)

 

$

73,114

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

68,881

 

 

$

19,096

 

 

$

(8,702

)

 

$

79,275

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(19,254

)

 

 

 

 

 

(19,254

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

10,780

 

 

 

 

 

 

10,780

 

Add: interest expense, net

 

 

 

 

 

 

 

 

2,853

 

 

 

2,853

 

Add: depreciation, depletion and amortization

 

 

4,079

 

 

 

 

 

 

4

 

 

 

4,083

 

Add: asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

72,960

 

 

$

10,622

 

 

$

(5,845

)

 

$

77,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

63,127

 

 

$

14,732

 

 

$

(12,879

)

 

$

64,980

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(14,764

)

 

 

 

 

 

(14,764

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

15,338

 

 

 

 

 

 

15,338

 

Add: interest expense, net

 

 

 

 

 

 

 

 

3,921

 

 

 

3,921

 

Add: depreciation, depletion and amortization

 

 

6,016

 

 

 

 

 

 

4

 

 

 

6,020

 

Add: asset impairments

 

 

424

 

 

 

 

 

 

 

 

 

424

 

Adjusted EBITDA

 

$

69,567

 

 

$

15,306

 

 

$

(8,954

)

 

$

75,919

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

 

 

Mineral

 

 

 

 

 

 

Corporate and

 

 

 

 

 

(In thousands)

 

Rights

 

 

Soda Ash

 

 

Financing

 

 

Total

 

For the Three Months Ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

69,749

 

 

$

14,148

 

 

$

(12,398

)

 

$

71,499

 

Add: proceeds from asset sales and disposals

 

 

165

 

 

 

 

 

 

 

 

 

165

 

Add: return of long-term contract receivable

 

 

647

 

 

 

 

 

 

 

 

 

647

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Distributable cash flow

 

$

70,561

 

 

$

14,148

 

 

$

(12,398

)

 

$

72,311

 

Less: proceeds from asset sales and disposals

 

 

(165

)

 

 

 

 

 

 

 

 

(165

)

Free cash flow

 

$

70,396

 

 

$

14,148

 

 

$

(12,398

)

 

$

72,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

812

 

 

$

 

 

$

 

 

$

812

 

Net cash used in financing activities

 

$

(1,086

)

 

$

 

 

$

(72,224

)

 

$

(73,310

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

73,858

 

 

$

10,617

 

 

$

(11,575

)

 

$

72,900

 

Add: proceeds from asset sales and disposals

 

 

101

 

 

 

 

 

 

 

 

 

101

 

Add: return of long-term contract receivable

 

 

598

 

 

 

 

 

 

 

 

 

598

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

Distributable cash flow

 

$

74,557

 

 

$

10,617

 

 

$

(11,577

)

 

$

73,597

 

Less: proceeds from asset sales and disposals

 

 

(101

)

 

 

 

 

 

 

 

 

(101

)

Free cash flow

 

$

74,456

 

 

$

10,617

 

 

$

(11,577

)

 

$

73,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

$

699

 

 

$

 

 

$

(2

)

 

$

697

 

Net cash used in financing activities

 

$

(583

)

 

$

 

 

$

(94,450

)

 

$

(95,033

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

70,147

 

 

$

15,306

 

 

$

(7,667

)

 

$

77,786

 

Add: proceeds from asset sales and disposals

 

 

2,002

 

 

 

 

 

 

 

 

 

2,002

 

Add: return of long-term contract receivable

 

 

633

 

 

 

 

 

 

 

 

 

633

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Distributable cash flow

 

$

72,782

 

 

$

15,306

 

 

$

(7,667

)

 

$

80,421

 

Less: proceeds from asset sales and disposals

 

 

(2,002

)

 

 

 

 

 

 

 

 

(2,002

)

Free cash flow

 

$

70,780

 

 

$

15,306

 

 

$

(7,667

)

 

$

78,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

2,635

 

 

$

 

 

$

 

 

$

2,635

 

Net cash used in financing activities

 

$

 

 

$

 

 

$

(86,843

)

 

$

(86,843

)

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Last Twelve Months (LTM) Free Cash Flow

 

 

For the Three Months Ended

 

 

 

 

 

(In thousands)

 

June 30,

2023

 

 

September 30,

2023

 

 

December 31,

2023

 

 

March 31,

2024

 

 

Last 12 Months

 

Net cash provided by operating activities

 

$

81,350

 

 

$

78,942

 

 

$

77,786

 

 

$

71,499

 

 

$

309,577

 

Add: proceeds from asset sales and disposals

 

 

5

 

 

 

855

 

 

 

2,002

 

 

 

165

 

 

 

3,027

 

Add: return of long-term contract receivable

 

 

610

 

 

 

622

 

 

 

633

 

 

 

647

 

 

 

2,512

 

Less: maintenance capital expenditures

 

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

(8

)

Distributable cash flow

 

$

81,957

 

 

$

80,419

 

 

$

80,421

 

 

$

72,311

 

 

$

315,108

 

Less: proceeds from asset sales and disposals

 

 

(5

)

 

 

(855

)

 

 

(2,002

)

 

 

(165

)

 

 

(3,027

)

Free cash flow

 

$

81,952

 

 

$

79,564

 

 

$

78,419

 

 

$

72,146

 

 

$

312,081

 

Leverage Ratio

 

 

For the Three Months Ended

 

 

 

 

 

(In thousands)

 

June 30,

2023

 

 

September 30,

2023

 

 

December 31,

2023

 

 

March 31,

2024

 

 

Last 12 Months

 

Net income

 

$

70,334

 

 

$

63,846

 

 

$

64,980

 

 

$

56,213

 

 

$

255,373

 

Less: equity earnings from unconsolidated investment

 

 

(26,978

)

 

 

(12,401

)

 

 

(14,764

)

 

 

(5,450

)

 

 

(59,593

)

Add: total distributions from unconsolidated investment

 

 

32,350

 

 

 

23,010

 

 

 

15,338

 

 

 

14,210

 

 

 

84,908

 

Add: interest expense, net

 

 

3,492

 

 

 

3,837

 

 

 

3,921

 

 

 

3,487

 

 

 

14,737

 

Add: depreciation, depletion and amortization

 

 

3,792

 

 

 

4,594

 

 

 

6,020

 

 

 

4,654

 

 

 

19,060

 

Add: asset impairments

 

 

69

 

 

 

63

 

 

 

424

 

 

 

 

 

 

556

 

Adjusted EBITDA

 

$

83,059

 

 

$

82,949

 

 

$

75,919

 

 

$

73,114

 

 

$

315,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt—at March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

189,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leverage Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.6 x

 

 

 

For the Three Months Ended

 

 

 

 

 

(In thousands)

 

June 30,

2022

 

 

September 30,

2022

 

 

December 31,

2022

 

 

March 31,

2023

 

 

Last 12 Months

 

Net income

 

$

66,820

 

 

$

74,555

 

 

$

63,218

 

 

$

79,275

 

 

$

283,868

 

Less: equity earnings from unconsolidated investment

 

 

(14,643

)

 

 

(14,556

)

 

 

(15,759

)

 

 

(19,254

)

 

 

(64,212

)

Add: total distributions from unconsolidated investment

 

 

10,486

 

 

 

10,339

 

 

 

10,780

 

 

 

10,780

 

 

 

42,385

 

Add: interest expense, net

 

 

8,108

 

 

 

5,141

 

 

 

3,638

 

 

 

2,853

 

 

 

19,740

 

Add: loss on extinguishment of debt

 

 

4,048

 

 

 

2,484

 

 

 

3,933

 

 

 

 

 

 

10,465

 

Add: depreciation, depletion and amortization

 

 

5,847

 

 

 

6,850

 

 

 

5,954

 

 

 

4,083

 

 

 

22,734

 

Add: asset impairments

 

 

43

 

 

 

812

 

 

 

3,583

 

 

 

 

 

 

4,438

 

Adjusted EBITDA

 

$

80,709

 

 

$

85,625

 

 

$

75,347

 

 

$

77,737

 

 

$

319,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt—at March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

173,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leverage Ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.5 x

 

 

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