Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2021 Results By: Natural Resource Partners L.P. via Business Wire March 15, 2022 at 06:55 AM EDT Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2021 results as follows: For the Three Months Ended For the Year Ended (In thousands) (Unaudited) December 31, 2021 Operating cash flow $ 55,161 $ 121,804 Free cash flow (1) 55,702 122,967 Cash flow cushion (last twelve months) (1) 36,172 Net income $ 55,641 $ 108,902 Adjusted EBITDA (1) 66,850 161,354 (1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. "Strong demand for metallurgical coal, thermal coal and soda ash in the fourth quarter produced one of the best quarters in terms of free cash flow generation in the Partnership’s history," stated Craig Nunez, NRP's President & Chief Operating Officer. "While COVID-19 remains a risk factor for the global economy, we expect to generate robust free cash flow in the months ahead and plan to continue using that cash to pay down debt, solidify our capital structure and maintain common unit distributions." Mr. Nunez continued, "We also closed our first carbon sequestration transaction in the fourth quarter, receiving $13.8 million in exchange for agreeing to sequester 1.1 million tonnes of carbon dioxide ("CO2") in our West Virginia forestland. We announced our second carbon sequestration transaction earlier this quarter after granting Denbury the right to develop a world-class subsurface CO2 sequestration project on 75,000 acres of underground pore space we control in southwest Alabama, which Denbury believes has the potential to store over 300 million tonnes of CO2. We expect this project, if developed, to be the first of what will potentially be numerous subsurface carbon sequestration projects conducted on the approximately 3.5 million acres where we own the rights to sequester CO2 underground across the United States. These projects have the potential to provide important benefits to the environment and add significant value to NRP over the coming years.” NRP's liquidity was $235.5 million at December 31, 2021, consisting of $135.5 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. NRP redeemed at par all 19,321 of its paid-in-kind 12.0% Class A Convertible Preferred Units for $19.6 million in cash in accordance with their terms and including accrued interest. Following the redemption, no paid-in-kind preferred units remain outstanding. Additionally, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit and a $7.5 million cash distribution on the preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs. Segment Performance Mineral Rights (segment formerly named Coal Royalty and Other) NRP has changed the name of its Coal Royalty and Other business segment to Mineral Rights. This name change highlights NRP’s vast mineral ownership interests as well as its intensifying focus on leveraging the Partnership's asset footprint across the United States, including subsurface carbon sequestration rights, to become a key player in the transitional energy economy for the years to come. There has been no change to the composition of this reportable business segment or the structure of NRP's internal organization in connection with this name change. Mineral Rights net income for the fourth quarter and full year of 2021 increased $38.1 million and $183.6 million, respectively, as compared to the prior year periods. Free cash flow for the fourth quarter and full year of 2021 increased $34.1 million and $35.1 million, respectively, as compared to the prior year periods. These increases were primarily due to stronger metallurgical coal demand and pricing in 2021 and $13.8 million of cash received in the fourth quarter of 2021 from the forestland carbon sequestration transaction. In addition, full year 2021 net income improved due to $130.8 million of higher asset impairments recorded in 2020. Approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal in the fourth quarter of 2021. Metallurgical coal markets have rebounded significantly from the lows seen in 2020 to record high pricing and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have also significantly improved from the lows seen in 2020, however NRP did not have meaningful sensitivity to thermal coal price movements in 2021 since the substantial majority of NRP's thermal cash flows were fixed pursuant to a contract with Foresight Energy that went into effect as it emerged from bankruptcy in 2020. That contract expired at the end of 2021 and NRP began receiving traditional royalty payments in January 2022. While NRP may benefit from improved thermal coal demand and pricing in the near term, thermal coal markets still face the long-term challenges presented by competition from natural gas and the secular shift to renewable energy. In addition, NRP continues to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities include the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy. While the timing and likelihood of additional cash flows being realized from further activities is uncertain, NRP believes its large ownership footprint throughout the United States will provide additional opportunities to create value in this regard with minimal capital investment. Soda Ash In December, a publicly-traded Turkish conglomerate, Sisecam, acquired a majority stake in the managing partner of Sisecam Wyoming LLC, the business formerly known as Ciner Wyoming LLC. Sisecam brings extensive experience and knowledge to NRP's soda ash partnership given its soda ash operating experience in Turkey, Bulgaria and Europe, as well as its container and flat glass manufacturing around the world. NRP looks forward to working with Sisecam to build on the significant value realized by the soda ash partnership with the Ciner Group, which continues to own a minority stake in the partnership. Soda ash net income in the fourth quarter and full year of 2021 increased $5.1 million and $11.2 million, respectively, as compared to the prior year period as demand and pricing for soda ash continues to improve globally from the lows caused by the COVID-19 pandemic. As a result of the soda ash segment's improved performance, Sisecam Wyoming reinstated regular quarterly cash distributions in the fourth quarter of 2021, which were previously suspended since the third quarter of 2020. Accordingly, free cash flow in the fourth quarter of 2021 increased $7.3 million as compared to the prior year period, but decreased $2.9 million for the full year of 2021 as compared to the prior year due to the regular quarterly cash distributions being suspended until the fourth quarter of 2021. Corporate and Financing Corporate and financing costs in the fourth quarter and full year of 2021 increased by $2.2 million and $1.0 million, respectively, as compared to the prior year periods, primarily due to an increase in incentive compensation as a result of significantly improved operating results in 2021, partially offset by lower interest expense as a result of less debt outstanding. Free cash flow in the fourth quarter and full year of 2021 improved $0.4 million and $2.1 million, respectively, as compared to prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2021. As noted earlier, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit of NRP and a $7.5 million cash distribution on the preferred units. NRP's consolidated leverage ratio fell from 4.6x at December 31, 2020 to 2.7x at December 31, 2021 and expects its leverage ratio to continue to decline 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: https://conferencingportals.com/event/kfJdSHYP. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website. Company Profile Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash. For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com. Forward-Looking Statements This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership’s common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, 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) 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, 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 redemption of PIK units, common unit distributions and warrant cash settlements. Cash flow cushion is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units. "Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) 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) 2021 2020 2021 2021 2020 Revenues and other income Royalty and other mineral rights $ 70,774 $ 31,327 $ 47,884 $ 185,196 $ 120,166 Transportation and processing services 2,507 2,194 2,171 9,052 8,845 Equity in earnings of Sisecam Wyoming 10,625 5,528 6,672 21,871 10,728 Gain on asset sales and disposals 2 116 68 245 581 Total revenues and other income $ 83,908 $ 39,165 $ 56,795 $ 216,364 $ 140,320 Operating expenses Operating and maintenance expenses $ 7,973 $ 5,595 $ 8,354 $ 27,049 $ 24,795 Depreciation, depletion and amortization 3,930 3,013 5,182 19,075 9,198 General and administrative expenses 5,810 3,125 4,052 17,360 14,293 Asset impairments 986 2,668 57 5,102 135,885 Total operating expenses $ 18,699 $ 14,401 $ 17,645 $ 68,586 $ 184,171 Income (loss) from operations $ 65,209 $ 24,764 $ 39,150 $ 147,778 $ (43,851 ) Interest expense, net $ (9,568 ) $ (10,077 ) $ (9,652 ) $ (38,876 ) $ (40,968 ) Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Less: income attributable to preferred unitholders (8,079 ) (7,612 ) (7,961 ) (31,609 ) (30,225 ) Net income (loss) attributable to common unitholders and the general partner $ 47,562 $ 7,075 $ 21,537 $ 77,293 $ (115,044 ) Net income (loss) attributable to common unitholders $ 46,611 $ 6,934 $ 21,106 $ 75,747 $ (112,743 ) Net income (loss) attributable to the general partner 951 141 431 1,546 (2,301 ) Net income (loss) per common unit Basic $ 3.77 $ 0.57 $ 1.71 $ 6.14 $ (9.20 ) Diluted 2.42 0.56 1.10 4.81 (9.20 ) Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Comprehensive income (loss) from unconsolidated investment and other (4,580 ) 152 4,204 2,889 2,916 Comprehensive income (loss) $ 51,061 $ 14,839 $ 33,702 $ 111,791 $ (81,903 ) 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) 2021 2020 2021 2021 2020 Cash flows from operating activities Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: Depreciation, depletion and amortization 3,930 3,013 5,182 19,075 9,198 Distributions from unconsolidated investment 7,350 — — 11,270 14,210 Equity earnings from unconsolidated investment (10,625 ) (5,528 ) (6,672 ) (21,871 ) (10,728 ) Gain on asset sales and disposals (2 ) (116 ) (68 ) (245 ) (581 ) Asset impairments 986 2,668 57 5,102 135,885 Bad debt expense 857 86 2,069 2,572 4,001 Unit-based compensation expense 1,202 1,004 1,118 4,039 3,570 Amortization of debt issuance costs and other 366 832 653 2,265 1,323 Change in operating assets and liabilities: Accounts receivable (2,083 ) 4,859 (9,163 ) (14,415 ) 12,853 Accounts payable 481 14 182 570 207 Accrued liabilities 3,859 780 357 3,020 (2,205 ) Accrued interest (7,472 ) (7,559 ) 7,262 (501 ) (602 ) Deferred revenue 2,428 (461 ) (2,652 ) 307 9,733 Other items, net (1,757 ) (1,124 ) 2,236 1,714 (4,477 ) Net cash provided by operating activities of continuing operations $ 55,161 $ 13,155 $ 30,059 $ 121,804 $ 87,568 Net cash provided by operating activities of discontinued operations — — — — 1,706 Net cash provided by operating activities $ 55,161 $ 13,155 $ 30,059 $ 121,804 $ 89,274 Cash flows from investing activities Proceeds from asset sales and disposals $ — $ 116 $ 74 $ 249 $ 623 Return of long-term contract receivable 541 660 540 2,163 2,122 Acquisition of non-controlling interest in BRP — — — — (1,000 ) Net cash provided by investing activities of continuing operations $ 541 $ 776 $ 614 $ 2,412 $ 1,745 Net cash provided by (used in) investing activities of discontinued operations — 1 — — (65 ) Net cash provided by investing activities $ 541 $ 777 $ 614 $ 2,412 $ 1,680 Cash flows from financing activities Debt repayments $ (20,335 ) $ (20,335 ) $ — $ (39,396 ) $ (46,176 ) Distributions to common unitholders and the general partner (5,672 ) (5,630 ) (5,671 ) (22,645 ) (16,890 ) Distributions to preferred unitholders (3,980 ) (3,750 ) (3,921 ) (15,571 ) (26,363 ) Warrant settlement (9,183 ) — — (9,183 ) — Contributions from discontinued operations — 1 — — 1,641 Acquisition of non-controlling interest in BRP — — — (1,000 ) — Other items (1 ) — — (691 ) — Net cash used in financing activities of continuing operations $ (39,171 ) $ (29,714 ) $ (9,592 ) $ (88,486 ) $ (87,788 ) Net cash used in financing activities of discontinued operations — (1 ) — — (1,641 ) Net cash used in financing activities $ (39,171 ) $ (29,715 ) $ (9,592 ) $ (88,486 ) $ (89,429 ) Net increase (decrease) in cash and cash equivalents $ 16,531 $ (15,783 ) $ 21,081 $ 35,730 $ 1,525 Cash and cash equivalents at beginning of period 118,989 115,573 97,908 99,790 98,265 Cash and cash equivalents at end of period $ 135,520 $ 99,790 $ 118,989 $ 135,520 $ 99,790 Supplemental cash flow information: Cash paid for interest $ 16,549 $ 17,118 $ 1,898 $ 37,378 $ 39,830 Non-cash investing and financing activities: Plant, equipment, mineral rights and other funded with accounts payable or accrued liabilities $ — $ 23 $ — $ — $ 970 Preferred unit distributions paid-in-kind 3,980 3,750 3,921 15,571 3,750 Natural Resource Partners L.P. Financial Tables Consolidated Balance Sheets December 31, (In thousands, except unit data) 2021 2020 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 135,520 $ 99,790 Accounts receivable, net 24,538 12,322 Other current assets, net 2,723 5,080 Total current assets $ 162,781 $ 117,192 Land 24,008 24,008 Mineral rights, net 437,697 460,373 Intangible assets, net 16,130 17,459 Equity in unconsolidated investment 276,004 262,514 Long-term contract receivable, net 31,371 33,264 Other long-term assets, net 5,832 7,067 Total assets $ 953,823 $ 921,877 LIABILITIES AND CAPITAL Current liabilities Accounts payable $ 1,956 $ 1,385 Accrued liabilities 10,297 7,733 Accrued interest 1,213 1,714 Current portion of deferred revenue 11,817 11,485 Current portion of long-term debt, net 39,102 39,055 Total current liabilities $ 64,385 $ 61,372 Deferred revenue 50,045 50,069 Long-term debt, net 394,443 432,444 Other non-current liabilities 5,018 5,131 Total liabilities $ 513,891 $ 549,016 Commitments and contingencies Class A Convertible Preferred Units (269,321 and 253,750 units issued and outstanding at December 31, 2021 and 2020, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit and $1,700 per unit at December 31, 2021 and 2020, respectively) $ 183,908 $ 168,337 Partners’ capital: Common unitholders’ interest (12,351,306 and 12,261,199 units issued and outstanding at December 30, 2021 and 2020, respectively) $ 203,062 $ 136,927 General partner’s interest 1,787 459 Warrant holders' interest 47,964 66,816 Accumulated other comprehensive income 3,211 322 Total partners’ capital $ 256,024 $ 204,524 Total liabilities and capital $ 953,823 $ 921,877 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, 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 (1) — (83,123 ) (1,696 ) — — (84,819 ) — (84,819 ) Distributions to common unitholders and the 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 ) 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 Net income (2) — 106,724 2,178 — — 108,902 — 108,902 Distributions to common unitholders and the general partner — (22,192 ) (453 ) — — (22,645 ) — (22,645 ) Distributions to preferred unitholders — (30,519 ) (623 ) — — (31,142 ) — (31,142 ) Issuance of unit-based awards 90 — — — — — — — Unit-based awards amortization and vesting — 2,647 — — — 2,647 — 2,647 Capital contribution — — 32 — — 32 — 32 Warrant settlement — 9,475 194 (18,852 ) — (9,183 ) — (9,183 ) Comprehensive income from unconsolidated investment and other — — — — 2,889 2,889 — 2,889 Balance at December 31, 2021 12,351 $ 203,062 $ 1,787 $ 47,964 $ 3,211 $ 256,024 $ — $ 256,024 (1) 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. (2) Net income includes $31.6 million of income attributable to preferred unitholders that accumulated during the period, of which $31.0 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, 2021 and 2020 and September 30, 2021: Operating Segments Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Revenues $ 73,281 $ 10,625 $ — $ 83,906 Gain on asset sales and disposals 2 — — 2 Total revenues and other income $ 73,283 $ 10,625 $ — $ 83,908 Asset impairments $ 986 $ — $ — $ 986 Net income (loss) $ 60,432 $ 10,587 $ (15,378 ) $ 55,641 Adjusted EBITDA (1) $ 65,348 $ 7,312 $ (5,810 ) $ 66,850 Cash flow provided by (used in) continuing operations: Operating activities $ 67,887 $ 7,289 $ (20,015 ) $ 55,161 Investing activities $ 541 $ — $ — $ 541 Financing activities $ — $ — $ (39,171 ) $ (39,171 ) Distributable cash flow (1) $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Free cash flow (1) $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 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) $ 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 September 30, 2021 Revenues $ 50,055 $ 6,672 $ — $ 56,727 Gain on asset sales and disposals 68 — — 68 Total revenues and other income $ 50,123 $ 6,672 $ — $ 56,795 Asset impairments $ 57 $ — $ — $ 57 Net income (loss) $ 36,606 $ 6,596 $ (13,704 ) $ 29,498 Adjusted EBITDA (1) $ 41,845 $ (76 ) $ (4,052 ) $ 37,717 Cash flow provided by (used in) continuing operations: Operating activities $ 33,968 $ (36 ) $ (3,873 ) $ 30,059 Investing activities $ 614 $ — $ — $ 614 Financing activities $ — $ — $ (9,592 ) $ (9,592 ) Distributable cash flow (1) $ 34,582 $ (36 ) $ (3,873 ) $ 30,673 Free cash flow (1) $ 34,508 $ (36 ) $ (3,873 ) $ 30,599 (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 table presents NRP's unaudited business results by segment for the year ended December 31, 2021 and 2020: Operating Segments Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Revenues $ 194,248 $ 21,871 $ — $ 216,119 Gain on asset sales and disposals 245 — — 245 Total revenues and other income $ 194,493 $ 21,871 $ — $ 216,364 Asset impairments $ 5,102 $ — $ — $ 5,102 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Adjusted EBITDA (1) $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 Cash flow provided by (used in) continuing operations: Operating activities $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Investing activities $ 2,412 $ — $ — $ 2,412 Financing activities $ (1,132 ) $ — $ (87,354 ) $ (88,486 ) Distributable cash flow (1) $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Free cash flow (1) $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 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) $ (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 (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 - Mineral Rights For the Three Months Ended For the Year Ended December 31, September 30, December 31, (In thousands, except per ton data) 2021 2020 2021 2021 2020 Coal sales volumes (tons) Appalachia Northern 388 131 422 1,335 647 Central 3,455 2,468 3,199 12,279 10,111 Southern 513 69 642 1,571 889 Total Appalachia 4,356 2,668 4,263 15,185 11,647 Illinois Basin 1,401 1,540 2,689 9,388 3,381 Northern Powder River Basin 860 506 1,047 3,151 1,738 Gulf Coast 42 — 13 55 — Total coal sales volumes 6,659 4,714 8,012 27,779 16,766 Coal royalty revenue per ton Appalachia Northern $ 8.81 $ 2.92 $ 7.18 $ 6.51 $ 2.36 Central 7.77 3.84 5.74 5.71 4.17 Southern 7.73 5.28 11.61 9.14 4.75 Illinois Basin 2.05 2.21 2.33 2.12 2.36 Northern Powder River Basin 3.41 3.11 3.71 3.54 3.50 Gulf Coast 0.62 — 0.54 0.60 — Combined average coal royalty revenue per ton 6.01 3.23 4.87 4.47 3.70 Coal royalty revenues Appalachia Northern $ 3,419 $ 383 $ 3,031 $ 8,691 $ 1,526 Central 26,841 9,481 18,357 70,149 42,207 Southern 3,965 364 7,452 14,355 4,221 Total Appalachia 34,225 10,228 28,840 93,195 47,954 Illinois Basin 2,873 3,403 6,261 19,917 7,973 Northern Powder River Basin 2,929 1,576 3,881 11,151 6,086 Gulf Coast 26 — 7 33 — Unadjusted coal royalty revenues 40,053 15,207 38,989 124,296 62,013 Coal royalty adjustment for minimum leases (2,059 ) (3,898 ) (6,557 ) (20,207 ) (10,145 ) Total coal royalty revenues $ 37,994 $ 11,309 $ 32,432 $ 104,089 $ 51,868 Other revenues Production lease minimum revenues $ 4,028 $ 8,195 $ 3,235 $ 14,269 $ 21,749 Minimum lease straight-line revenues 4,791 4,447 4,808 20,564 16,796 Forest CO2 sequestration revenues 13,790 — — 13,790 — Wheelage revenues 4,476 1,557 1,964 10,065 7,025 Property tax revenues 1,506 1,530 1,466 6,028 5,786 Coal overriding royalty revenues 775 1,658 757 4,367 4,977 Lease amendment revenues 1,537 859 1,519 4,696 3,450 Aggregates royalty revenues 550 649 429 1,889 1,717 Oil and gas royalty revenues 1,086 893 1,154 4,506 5,816 Other revenues 241 230 120 933 982 Total other revenues $ 32,780 $ 20,018 $ 15,452 $ 81,107 $ 68,298 Royalty and other mineral rights $ 70,774 $ 31,327 $ 47,884 $ 185,196 $ 120,166 Transportation and processing services revenues 2,507 2,194 2,171 9,052 8,845 Gain on asset sales and disposals 2 116 68 245 581 Total Mineral Rights segment revenues and other income $ 73,283 $ 33,637 $ 50,123 $ 194,493 $ 129,592 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Adjusted EBITDA Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Net income (loss) $ 60,432 $ 10,587 $ (15,378 ) $ 55,641 Less: equity earnings from unconsolidated investment — (10,625 ) — (10,625 ) Add: total distributions from unconsolidated investment — 7,350 — 7,350 Add: interest expense, net — — 9,568 9,568 Add: depreciation, depletion and amortization 3,930 — — 3,930 Add: asset impairments 986 — — 986 Adjusted EBITDA $ 65,348 $ 7,312 $ (5,810 ) $ 66,850 For the Three Months Ended December 31, 2020 Net income (loss) $ 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 September 30, 2021 Net income (loss) $ 36,606 $ 6,596 (13,704 ) $ 29,498 Less: equity earnings from unconsolidated investment — (6,672 ) — (6,672 ) Add: total distributions from unconsolidated investment — — — — Add: interest expense, net — — 9,652 9,652 Add: depreciation, depletion and amortization 5,182 — — 5,182 Add: asset impairments 57 — — 57 Adjusted EBITDA $ 41,845 $ (76 ) $ (4,052 ) $ 37,717 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Adjusted EBITDA Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Less: equity earnings from unconsolidated investment — (21,871 ) — (21,871 ) Add: total distributions from unconsolidated investment — 11,270 — 11,270 Add: interest expense, net 24 — 38,852 38,876 Add: depreciation, depletion and amortization 19,075 — — 19,075 Add: asset impairments 5,102 — — 5,102 Adjusted EBITDA $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 For the Year Ended December 31, 2020 Net income (loss) $ (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: 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 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Distributable Cash Flow and Free Cash Flow Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 67,887 $ 7,289 $ (20,015 ) $ 55,161 Add: proceeds from asset sales and disposals — — — — Add: return of long-term contract receivable 541 — — 541 Distributable cash flow $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Less: proceeds from asset sales and disposals — — — — Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs — — — — Free cash flow $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Net cash provided by investing activities $ 541 $ — $ — $ 541 Net cash used in financing activities — — (39,171 ) (39,171 ) 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 Net cash provided by investing activities $ 776 $ — $ — $ 776 Net cash used in financing activities — — (29,714 ) (29,714 ) For the Three Months Ended September 30, 2021 Net cash provided by (used in) operating activities of continuing operations $ 33,968 $ (36 ) $ (3,873 ) $ 30,059 Add: proceeds from asset sales and disposals 74 — — 74 Add: return of long-term contract receivable 540 — — 540 Distributable cash flow $ 34,582 $ (36 ) $ (3,873 ) $ 30,673 Less: proceeds from asset sales and disposals (74 ) — — (74 ) Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs — — — — Free cash flow $ 34,508 $ (36 ) $ (3,873 ) $ 30,599 Net cash provided by investing activities $ 614 $ — $ — $ 614 Net cash used in financing activities — — (9,592 ) (9,592 ) Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Distributable Cash Flow and Free Cash Flow Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Add: proceeds from asset sales and disposals 249 — — 249 Add: proceeds from sale of discontinued operations — — — — Add: return of long-term contract receivable 2,163 — — 2,163 Distributable cash flow $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Less: proceeds from asset sales and disposals (249 ) — — (249 ) Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs (1,000 ) — — (1,000 ) Free cash flow $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 Net cash provided by investing activities $ 2,412 $ — $ — $ 2,412 Net cash used in financing activities (1,132 ) — (87,354 ) (88,486 ) 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 Net cash provided by investing activities $ 1,745 $ — $ — $ 1,745 Net cash used in financing activities — — (87,788 ) (87,788 ) Cash Flow Cushion For the Year Ended December 31, (In thousands) 2021 2020 Free cash flow $ 122,967 $ 88,690 Less: mandatory Opco debt repayments (39,396 ) (46,176 ) Less: preferred unit distributions (15,571 ) (26,363 ) Less: common unit distributions (22,645 ) (16,890 ) Less: warrant cash settlement (9,183 ) — Cash flow cushion $ 36,172 $ (739 ) Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Leverage Ratio (In thousands) For the Year Ended December 31, 2021 Adjusted EBITDA $ 161,354 Debt—at December 31, 2021 $ 438,484 Leverage Ratio (1) 2.7 x (1) Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2021 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, 2021, was 2.7x as calculated under the indenture governing NRP's 2025 parent company notes. Return on Capital Employed ("ROCE") Mineral Rights Corporate and Financing (In thousands) Soda Ash Total LTM Ended December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Financing costs 30 — 38,908 38,938 Return $ 143,442 $ 21,702 $ (17,304 ) $ 147,840 As of December 31, 2020 Total assets $ 656,505 $ 262,514 $ 2,858 $ 921,877 Less: total current liabilities excluding current debt, net (17,957 ) (12 ) (4,348 ) (22,317 ) Less: total long-term liabilities excluding long-term debt, net (54,640 ) — (560 ) (55,200 ) Capital employed $ 583,908 $ 262,502 $ (2,050 ) $ 844,360 Total partners' capital $ 583,908 $ 262,502 $ (641,886 ) $ 204,524 Class A convertible preferred units — — 168,337 168,337 Debt, net — — 471,499 471,499 Capital employed $ 583,908 $ 262,502 $ (2,050 ) $ 844,360 ROCE 24.6 % 8.3 % N/A 17.5 % Excluding asset impairments: Return $ 143,442 $ 21,702 $ (17,304 ) $ 147,840 Add: asset impairments 5,102 — — 5,102 Return excluding asset impairments $ 148,544 $ 21,702 $ (17,304 ) $ 152,942 ROCE excluding asset impairments 25.4 % 8.3 % N/A 18.1 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220315005180/en/Contacts Tiffany Sammis, 713-751-7515 tsammis@nrplp.com. 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Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2021 Results By: Natural Resource Partners L.P. via Business Wire March 15, 2022 at 06:55 AM EDT Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2021 results as follows: For the Three Months Ended For the Year Ended (In thousands) (Unaudited) December 31, 2021 Operating cash flow $ 55,161 $ 121,804 Free cash flow (1) 55,702 122,967 Cash flow cushion (last twelve months) (1) 36,172 Net income $ 55,641 $ 108,902 Adjusted EBITDA (1) 66,850 161,354 (1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. "Strong demand for metallurgical coal, thermal coal and soda ash in the fourth quarter produced one of the best quarters in terms of free cash flow generation in the Partnership’s history," stated Craig Nunez, NRP's President & Chief Operating Officer. "While COVID-19 remains a risk factor for the global economy, we expect to generate robust free cash flow in the months ahead and plan to continue using that cash to pay down debt, solidify our capital structure and maintain common unit distributions." Mr. Nunez continued, "We also closed our first carbon sequestration transaction in the fourth quarter, receiving $13.8 million in exchange for agreeing to sequester 1.1 million tonnes of carbon dioxide ("CO2") in our West Virginia forestland. We announced our second carbon sequestration transaction earlier this quarter after granting Denbury the right to develop a world-class subsurface CO2 sequestration project on 75,000 acres of underground pore space we control in southwest Alabama, which Denbury believes has the potential to store over 300 million tonnes of CO2. We expect this project, if developed, to be the first of what will potentially be numerous subsurface carbon sequestration projects conducted on the approximately 3.5 million acres where we own the rights to sequester CO2 underground across the United States. These projects have the potential to provide important benefits to the environment and add significant value to NRP over the coming years.” NRP's liquidity was $235.5 million at December 31, 2021, consisting of $135.5 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. NRP redeemed at par all 19,321 of its paid-in-kind 12.0% Class A Convertible Preferred Units for $19.6 million in cash in accordance with their terms and including accrued interest. Following the redemption, no paid-in-kind preferred units remain outstanding. Additionally, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit and a $7.5 million cash distribution on the preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs. Segment Performance Mineral Rights (segment formerly named Coal Royalty and Other) NRP has changed the name of its Coal Royalty and Other business segment to Mineral Rights. This name change highlights NRP’s vast mineral ownership interests as well as its intensifying focus on leveraging the Partnership's asset footprint across the United States, including subsurface carbon sequestration rights, to become a key player in the transitional energy economy for the years to come. There has been no change to the composition of this reportable business segment or the structure of NRP's internal organization in connection with this name change. Mineral Rights net income for the fourth quarter and full year of 2021 increased $38.1 million and $183.6 million, respectively, as compared to the prior year periods. Free cash flow for the fourth quarter and full year of 2021 increased $34.1 million and $35.1 million, respectively, as compared to the prior year periods. These increases were primarily due to stronger metallurgical coal demand and pricing in 2021 and $13.8 million of cash received in the fourth quarter of 2021 from the forestland carbon sequestration transaction. In addition, full year 2021 net income improved due to $130.8 million of higher asset impairments recorded in 2020. Approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal in the fourth quarter of 2021. Metallurgical coal markets have rebounded significantly from the lows seen in 2020 to record high pricing and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have also significantly improved from the lows seen in 2020, however NRP did not have meaningful sensitivity to thermal coal price movements in 2021 since the substantial majority of NRP's thermal cash flows were fixed pursuant to a contract with Foresight Energy that went into effect as it emerged from bankruptcy in 2020. That contract expired at the end of 2021 and NRP began receiving traditional royalty payments in January 2022. While NRP may benefit from improved thermal coal demand and pricing in the near term, thermal coal markets still face the long-term challenges presented by competition from natural gas and the secular shift to renewable energy. In addition, NRP continues to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities include the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy. While the timing and likelihood of additional cash flows being realized from further activities is uncertain, NRP believes its large ownership footprint throughout the United States will provide additional opportunities to create value in this regard with minimal capital investment. Soda Ash In December, a publicly-traded Turkish conglomerate, Sisecam, acquired a majority stake in the managing partner of Sisecam Wyoming LLC, the business formerly known as Ciner Wyoming LLC. Sisecam brings extensive experience and knowledge to NRP's soda ash partnership given its soda ash operating experience in Turkey, Bulgaria and Europe, as well as its container and flat glass manufacturing around the world. NRP looks forward to working with Sisecam to build on the significant value realized by the soda ash partnership with the Ciner Group, which continues to own a minority stake in the partnership. Soda ash net income in the fourth quarter and full year of 2021 increased $5.1 million and $11.2 million, respectively, as compared to the prior year period as demand and pricing for soda ash continues to improve globally from the lows caused by the COVID-19 pandemic. As a result of the soda ash segment's improved performance, Sisecam Wyoming reinstated regular quarterly cash distributions in the fourth quarter of 2021, which were previously suspended since the third quarter of 2020. Accordingly, free cash flow in the fourth quarter of 2021 increased $7.3 million as compared to the prior year period, but decreased $2.9 million for the full year of 2021 as compared to the prior year due to the regular quarterly cash distributions being suspended until the fourth quarter of 2021. Corporate and Financing Corporate and financing costs in the fourth quarter and full year of 2021 increased by $2.2 million and $1.0 million, respectively, as compared to the prior year periods, primarily due to an increase in incentive compensation as a result of significantly improved operating results in 2021, partially offset by lower interest expense as a result of less debt outstanding. Free cash flow in the fourth quarter and full year of 2021 improved $0.4 million and $2.1 million, respectively, as compared to prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2021. As noted earlier, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit of NRP and a $7.5 million cash distribution on the preferred units. NRP's consolidated leverage ratio fell from 4.6x at December 31, 2020 to 2.7x at December 31, 2021 and expects its leverage ratio to continue to decline 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: https://conferencingportals.com/event/kfJdSHYP. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website. Company Profile Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash. For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com. Forward-Looking Statements This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership’s common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, 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) 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, 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 redemption of PIK units, common unit distributions and warrant cash settlements. Cash flow cushion is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units. "Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) 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) 2021 2020 2021 2021 2020 Revenues and other income Royalty and other mineral rights $ 70,774 $ 31,327 $ 47,884 $ 185,196 $ 120,166 Transportation and processing services 2,507 2,194 2,171 9,052 8,845 Equity in earnings of Sisecam Wyoming 10,625 5,528 6,672 21,871 10,728 Gain on asset sales and disposals 2 116 68 245 581 Total revenues and other income $ 83,908 $ 39,165 $ 56,795 $ 216,364 $ 140,320 Operating expenses Operating and maintenance expenses $ 7,973 $ 5,595 $ 8,354 $ 27,049 $ 24,795 Depreciation, depletion and amortization 3,930 3,013 5,182 19,075 9,198 General and administrative expenses 5,810 3,125 4,052 17,360 14,293 Asset impairments 986 2,668 57 5,102 135,885 Total operating expenses $ 18,699 $ 14,401 $ 17,645 $ 68,586 $ 184,171 Income (loss) from operations $ 65,209 $ 24,764 $ 39,150 $ 147,778 $ (43,851 ) Interest expense, net $ (9,568 ) $ (10,077 ) $ (9,652 ) $ (38,876 ) $ (40,968 ) Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Less: income attributable to preferred unitholders (8,079 ) (7,612 ) (7,961 ) (31,609 ) (30,225 ) Net income (loss) attributable to common unitholders and the general partner $ 47,562 $ 7,075 $ 21,537 $ 77,293 $ (115,044 ) Net income (loss) attributable to common unitholders $ 46,611 $ 6,934 $ 21,106 $ 75,747 $ (112,743 ) Net income (loss) attributable to the general partner 951 141 431 1,546 (2,301 ) Net income (loss) per common unit Basic $ 3.77 $ 0.57 $ 1.71 $ 6.14 $ (9.20 ) Diluted 2.42 0.56 1.10 4.81 (9.20 ) Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Comprehensive income (loss) from unconsolidated investment and other (4,580 ) 152 4,204 2,889 2,916 Comprehensive income (loss) $ 51,061 $ 14,839 $ 33,702 $ 111,791 $ (81,903 ) 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) 2021 2020 2021 2021 2020 Cash flows from operating activities Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: Depreciation, depletion and amortization 3,930 3,013 5,182 19,075 9,198 Distributions from unconsolidated investment 7,350 — — 11,270 14,210 Equity earnings from unconsolidated investment (10,625 ) (5,528 ) (6,672 ) (21,871 ) (10,728 ) Gain on asset sales and disposals (2 ) (116 ) (68 ) (245 ) (581 ) Asset impairments 986 2,668 57 5,102 135,885 Bad debt expense 857 86 2,069 2,572 4,001 Unit-based compensation expense 1,202 1,004 1,118 4,039 3,570 Amortization of debt issuance costs and other 366 832 653 2,265 1,323 Change in operating assets and liabilities: Accounts receivable (2,083 ) 4,859 (9,163 ) (14,415 ) 12,853 Accounts payable 481 14 182 570 207 Accrued liabilities 3,859 780 357 3,020 (2,205 ) Accrued interest (7,472 ) (7,559 ) 7,262 (501 ) (602 ) Deferred revenue 2,428 (461 ) (2,652 ) 307 9,733 Other items, net (1,757 ) (1,124 ) 2,236 1,714 (4,477 ) Net cash provided by operating activities of continuing operations $ 55,161 $ 13,155 $ 30,059 $ 121,804 $ 87,568 Net cash provided by operating activities of discontinued operations — — — — 1,706 Net cash provided by operating activities $ 55,161 $ 13,155 $ 30,059 $ 121,804 $ 89,274 Cash flows from investing activities Proceeds from asset sales and disposals $ — $ 116 $ 74 $ 249 $ 623 Return of long-term contract receivable 541 660 540 2,163 2,122 Acquisition of non-controlling interest in BRP — — — — (1,000 ) Net cash provided by investing activities of continuing operations $ 541 $ 776 $ 614 $ 2,412 $ 1,745 Net cash provided by (used in) investing activities of discontinued operations — 1 — — (65 ) Net cash provided by investing activities $ 541 $ 777 $ 614 $ 2,412 $ 1,680 Cash flows from financing activities Debt repayments $ (20,335 ) $ (20,335 ) $ — $ (39,396 ) $ (46,176 ) Distributions to common unitholders and the general partner (5,672 ) (5,630 ) (5,671 ) (22,645 ) (16,890 ) Distributions to preferred unitholders (3,980 ) (3,750 ) (3,921 ) (15,571 ) (26,363 ) Warrant settlement (9,183 ) — — (9,183 ) — Contributions from discontinued operations — 1 — — 1,641 Acquisition of non-controlling interest in BRP — — — (1,000 ) — Other items (1 ) — — (691 ) — Net cash used in financing activities of continuing operations $ (39,171 ) $ (29,714 ) $ (9,592 ) $ (88,486 ) $ (87,788 ) Net cash used in financing activities of discontinued operations — (1 ) — — (1,641 ) Net cash used in financing activities $ (39,171 ) $ (29,715 ) $ (9,592 ) $ (88,486 ) $ (89,429 ) Net increase (decrease) in cash and cash equivalents $ 16,531 $ (15,783 ) $ 21,081 $ 35,730 $ 1,525 Cash and cash equivalents at beginning of period 118,989 115,573 97,908 99,790 98,265 Cash and cash equivalents at end of period $ 135,520 $ 99,790 $ 118,989 $ 135,520 $ 99,790 Supplemental cash flow information: Cash paid for interest $ 16,549 $ 17,118 $ 1,898 $ 37,378 $ 39,830 Non-cash investing and financing activities: Plant, equipment, mineral rights and other funded with accounts payable or accrued liabilities $ — $ 23 $ — $ — $ 970 Preferred unit distributions paid-in-kind 3,980 3,750 3,921 15,571 3,750 Natural Resource Partners L.P. Financial Tables Consolidated Balance Sheets December 31, (In thousands, except unit data) 2021 2020 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 135,520 $ 99,790 Accounts receivable, net 24,538 12,322 Other current assets, net 2,723 5,080 Total current assets $ 162,781 $ 117,192 Land 24,008 24,008 Mineral rights, net 437,697 460,373 Intangible assets, net 16,130 17,459 Equity in unconsolidated investment 276,004 262,514 Long-term contract receivable, net 31,371 33,264 Other long-term assets, net 5,832 7,067 Total assets $ 953,823 $ 921,877 LIABILITIES AND CAPITAL Current liabilities Accounts payable $ 1,956 $ 1,385 Accrued liabilities 10,297 7,733 Accrued interest 1,213 1,714 Current portion of deferred revenue 11,817 11,485 Current portion of long-term debt, net 39,102 39,055 Total current liabilities $ 64,385 $ 61,372 Deferred revenue 50,045 50,069 Long-term debt, net 394,443 432,444 Other non-current liabilities 5,018 5,131 Total liabilities $ 513,891 $ 549,016 Commitments and contingencies Class A Convertible Preferred Units (269,321 and 253,750 units issued and outstanding at December 31, 2021 and 2020, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit and $1,700 per unit at December 31, 2021 and 2020, respectively) $ 183,908 $ 168,337 Partners’ capital: Common unitholders’ interest (12,351,306 and 12,261,199 units issued and outstanding at December 30, 2021 and 2020, respectively) $ 203,062 $ 136,927 General partner’s interest 1,787 459 Warrant holders' interest 47,964 66,816 Accumulated other comprehensive income 3,211 322 Total partners’ capital $ 256,024 $ 204,524 Total liabilities and capital $ 953,823 $ 921,877 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, 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 (1) — (83,123 ) (1,696 ) — — (84,819 ) — (84,819 ) Distributions to common unitholders and the 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 ) 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 Net income (2) — 106,724 2,178 — — 108,902 — 108,902 Distributions to common unitholders and the general partner — (22,192 ) (453 ) — — (22,645 ) — (22,645 ) Distributions to preferred unitholders — (30,519 ) (623 ) — — (31,142 ) — (31,142 ) Issuance of unit-based awards 90 — — — — — — — Unit-based awards amortization and vesting — 2,647 — — — 2,647 — 2,647 Capital contribution — — 32 — — 32 — 32 Warrant settlement — 9,475 194 (18,852 ) — (9,183 ) — (9,183 ) Comprehensive income from unconsolidated investment and other — — — — 2,889 2,889 — 2,889 Balance at December 31, 2021 12,351 $ 203,062 $ 1,787 $ 47,964 $ 3,211 $ 256,024 $ — $ 256,024 (1) 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. (2) Net income includes $31.6 million of income attributable to preferred unitholders that accumulated during the period, of which $31.0 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, 2021 and 2020 and September 30, 2021: Operating Segments Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Revenues $ 73,281 $ 10,625 $ — $ 83,906 Gain on asset sales and disposals 2 — — 2 Total revenues and other income $ 73,283 $ 10,625 $ — $ 83,908 Asset impairments $ 986 $ — $ — $ 986 Net income (loss) $ 60,432 $ 10,587 $ (15,378 ) $ 55,641 Adjusted EBITDA (1) $ 65,348 $ 7,312 $ (5,810 ) $ 66,850 Cash flow provided by (used in) continuing operations: Operating activities $ 67,887 $ 7,289 $ (20,015 ) $ 55,161 Investing activities $ 541 $ — $ — $ 541 Financing activities $ — $ — $ (39,171 ) $ (39,171 ) Distributable cash flow (1) $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Free cash flow (1) $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 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) $ 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 September 30, 2021 Revenues $ 50,055 $ 6,672 $ — $ 56,727 Gain on asset sales and disposals 68 — — 68 Total revenues and other income $ 50,123 $ 6,672 $ — $ 56,795 Asset impairments $ 57 $ — $ — $ 57 Net income (loss) $ 36,606 $ 6,596 $ (13,704 ) $ 29,498 Adjusted EBITDA (1) $ 41,845 $ (76 ) $ (4,052 ) $ 37,717 Cash flow provided by (used in) continuing operations: Operating activities $ 33,968 $ (36 ) $ (3,873 ) $ 30,059 Investing activities $ 614 $ — $ — $ 614 Financing activities $ — $ — $ (9,592 ) $ (9,592 ) Distributable cash flow (1) $ 34,582 $ (36 ) $ (3,873 ) $ 30,673 Free cash flow (1) $ 34,508 $ (36 ) $ (3,873 ) $ 30,599 (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 table presents NRP's unaudited business results by segment for the year ended December 31, 2021 and 2020: Operating Segments Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Revenues $ 194,248 $ 21,871 $ — $ 216,119 Gain on asset sales and disposals 245 — — 245 Total revenues and other income $ 194,493 $ 21,871 $ — $ 216,364 Asset impairments $ 5,102 $ — $ — $ 5,102 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Adjusted EBITDA (1) $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 Cash flow provided by (used in) continuing operations: Operating activities $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Investing activities $ 2,412 $ — $ — $ 2,412 Financing activities $ (1,132 ) $ — $ (87,354 ) $ (88,486 ) Distributable cash flow (1) $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Free cash flow (1) $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 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) $ (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 (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 - Mineral Rights For the Three Months Ended For the Year Ended December 31, September 30, December 31, (In thousands, except per ton data) 2021 2020 2021 2021 2020 Coal sales volumes (tons) Appalachia Northern 388 131 422 1,335 647 Central 3,455 2,468 3,199 12,279 10,111 Southern 513 69 642 1,571 889 Total Appalachia 4,356 2,668 4,263 15,185 11,647 Illinois Basin 1,401 1,540 2,689 9,388 3,381 Northern Powder River Basin 860 506 1,047 3,151 1,738 Gulf Coast 42 — 13 55 — Total coal sales volumes 6,659 4,714 8,012 27,779 16,766 Coal royalty revenue per ton Appalachia Northern $ 8.81 $ 2.92 $ 7.18 $ 6.51 $ 2.36 Central 7.77 3.84 5.74 5.71 4.17 Southern 7.73 5.28 11.61 9.14 4.75 Illinois Basin 2.05 2.21 2.33 2.12 2.36 Northern Powder River Basin 3.41 3.11 3.71 3.54 3.50 Gulf Coast 0.62 — 0.54 0.60 — Combined average coal royalty revenue per ton 6.01 3.23 4.87 4.47 3.70 Coal royalty revenues Appalachia Northern $ 3,419 $ 383 $ 3,031 $ 8,691 $ 1,526 Central 26,841 9,481 18,357 70,149 42,207 Southern 3,965 364 7,452 14,355 4,221 Total Appalachia 34,225 10,228 28,840 93,195 47,954 Illinois Basin 2,873 3,403 6,261 19,917 7,973 Northern Powder River Basin 2,929 1,576 3,881 11,151 6,086 Gulf Coast 26 — 7 33 — Unadjusted coal royalty revenues 40,053 15,207 38,989 124,296 62,013 Coal royalty adjustment for minimum leases (2,059 ) (3,898 ) (6,557 ) (20,207 ) (10,145 ) Total coal royalty revenues $ 37,994 $ 11,309 $ 32,432 $ 104,089 $ 51,868 Other revenues Production lease minimum revenues $ 4,028 $ 8,195 $ 3,235 $ 14,269 $ 21,749 Minimum lease straight-line revenues 4,791 4,447 4,808 20,564 16,796 Forest CO2 sequestration revenues 13,790 — — 13,790 — Wheelage revenues 4,476 1,557 1,964 10,065 7,025 Property tax revenues 1,506 1,530 1,466 6,028 5,786 Coal overriding royalty revenues 775 1,658 757 4,367 4,977 Lease amendment revenues 1,537 859 1,519 4,696 3,450 Aggregates royalty revenues 550 649 429 1,889 1,717 Oil and gas royalty revenues 1,086 893 1,154 4,506 5,816 Other revenues 241 230 120 933 982 Total other revenues $ 32,780 $ 20,018 $ 15,452 $ 81,107 $ 68,298 Royalty and other mineral rights $ 70,774 $ 31,327 $ 47,884 $ 185,196 $ 120,166 Transportation and processing services revenues 2,507 2,194 2,171 9,052 8,845 Gain on asset sales and disposals 2 116 68 245 581 Total Mineral Rights segment revenues and other income $ 73,283 $ 33,637 $ 50,123 $ 194,493 $ 129,592 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Adjusted EBITDA Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Net income (loss) $ 60,432 $ 10,587 $ (15,378 ) $ 55,641 Less: equity earnings from unconsolidated investment — (10,625 ) — (10,625 ) Add: total distributions from unconsolidated investment — 7,350 — 7,350 Add: interest expense, net — — 9,568 9,568 Add: depreciation, depletion and amortization 3,930 — — 3,930 Add: asset impairments 986 — — 986 Adjusted EBITDA $ 65,348 $ 7,312 $ (5,810 ) $ 66,850 For the Three Months Ended December 31, 2020 Net income (loss) $ 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 September 30, 2021 Net income (loss) $ 36,606 $ 6,596 (13,704 ) $ 29,498 Less: equity earnings from unconsolidated investment — (6,672 ) — (6,672 ) Add: total distributions from unconsolidated investment — — — — Add: interest expense, net — — 9,652 9,652 Add: depreciation, depletion and amortization 5,182 — — 5,182 Add: asset impairments 57 — — 57 Adjusted EBITDA $ 41,845 $ (76 ) $ (4,052 ) $ 37,717 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Adjusted EBITDA Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Less: equity earnings from unconsolidated investment — (21,871 ) — (21,871 ) Add: total distributions from unconsolidated investment — 11,270 — 11,270 Add: interest expense, net 24 — 38,852 38,876 Add: depreciation, depletion and amortization 19,075 — — 19,075 Add: asset impairments 5,102 — — 5,102 Adjusted EBITDA $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 For the Year Ended December 31, 2020 Net income (loss) $ (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: 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 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Distributable Cash Flow and Free Cash Flow Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 67,887 $ 7,289 $ (20,015 ) $ 55,161 Add: proceeds from asset sales and disposals — — — — Add: return of long-term contract receivable 541 — — 541 Distributable cash flow $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Less: proceeds from asset sales and disposals — — — — Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs — — — — Free cash flow $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Net cash provided by investing activities $ 541 $ — $ — $ 541 Net cash used in financing activities — — (39,171 ) (39,171 ) 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 Net cash provided by investing activities $ 776 $ — $ — $ 776 Net cash used in financing activities — — (29,714 ) (29,714 ) For the Three Months Ended September 30, 2021 Net cash provided by (used in) operating activities of continuing operations $ 33,968 $ (36 ) $ (3,873 ) $ 30,059 Add: proceeds from asset sales and disposals 74 — — 74 Add: return of long-term contract receivable 540 — — 540 Distributable cash flow $ 34,582 $ (36 ) $ (3,873 ) $ 30,673 Less: proceeds from asset sales and disposals (74 ) — — (74 ) Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs — — — — Free cash flow $ 34,508 $ (36 ) $ (3,873 ) $ 30,599 Net cash provided by investing activities $ 614 $ — $ — $ 614 Net cash used in financing activities — — (9,592 ) (9,592 ) Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Distributable Cash Flow and Free Cash Flow Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Add: proceeds from asset sales and disposals 249 — — 249 Add: proceeds from sale of discontinued operations — — — — Add: return of long-term contract receivable 2,163 — — 2,163 Distributable cash flow $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Less: proceeds from asset sales and disposals (249 ) — — (249 ) Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs (1,000 ) — — (1,000 ) Free cash flow $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 Net cash provided by investing activities $ 2,412 $ — $ — $ 2,412 Net cash used in financing activities (1,132 ) — (87,354 ) (88,486 ) 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 Net cash provided by investing activities $ 1,745 $ — $ — $ 1,745 Net cash used in financing activities — — (87,788 ) (87,788 ) Cash Flow Cushion For the Year Ended December 31, (In thousands) 2021 2020 Free cash flow $ 122,967 $ 88,690 Less: mandatory Opco debt repayments (39,396 ) (46,176 ) Less: preferred unit distributions (15,571 ) (26,363 ) Less: common unit distributions (22,645 ) (16,890 ) Less: warrant cash settlement (9,183 ) — Cash flow cushion $ 36,172 $ (739 ) Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Leverage Ratio (In thousands) For the Year Ended December 31, 2021 Adjusted EBITDA $ 161,354 Debt—at December 31, 2021 $ 438,484 Leverage Ratio (1) 2.7 x (1) Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2021 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, 2021, was 2.7x as calculated under the indenture governing NRP's 2025 parent company notes. Return on Capital Employed ("ROCE") Mineral Rights Corporate and Financing (In thousands) Soda Ash Total LTM Ended December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Financing costs 30 — 38,908 38,938 Return $ 143,442 $ 21,702 $ (17,304 ) $ 147,840 As of December 31, 2020 Total assets $ 656,505 $ 262,514 $ 2,858 $ 921,877 Less: total current liabilities excluding current debt, net (17,957 ) (12 ) (4,348 ) (22,317 ) Less: total long-term liabilities excluding long-term debt, net (54,640 ) — (560 ) (55,200 ) Capital employed $ 583,908 $ 262,502 $ (2,050 ) $ 844,360 Total partners' capital $ 583,908 $ 262,502 $ (641,886 ) $ 204,524 Class A convertible preferred units — — 168,337 168,337 Debt, net — — 471,499 471,499 Capital employed $ 583,908 $ 262,502 $ (2,050 ) $ 844,360 ROCE 24.6 % 8.3 % N/A 17.5 % Excluding asset impairments: Return $ 143,442 $ 21,702 $ (17,304 ) $ 147,840 Add: asset impairments 5,102 — — 5,102 Return excluding asset impairments $ 148,544 $ 21,702 $ (17,304 ) $ 152,942 ROCE excluding asset impairments 25.4 % 8.3 % N/A 18.1 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220315005180/en/Contacts Tiffany Sammis, 713-751-7515 tsammis@nrplp.com.
Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2021 results as follows: For the Three Months Ended For the Year Ended (In thousands) (Unaudited) December 31, 2021 Operating cash flow $ 55,161 $ 121,804 Free cash flow (1) 55,702 122,967 Cash flow cushion (last twelve months) (1) 36,172 Net income $ 55,641 $ 108,902 Adjusted EBITDA (1) 66,850 161,354 (1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. "Strong demand for metallurgical coal, thermal coal and soda ash in the fourth quarter produced one of the best quarters in terms of free cash flow generation in the Partnership’s history," stated Craig Nunez, NRP's President & Chief Operating Officer. "While COVID-19 remains a risk factor for the global economy, we expect to generate robust free cash flow in the months ahead and plan to continue using that cash to pay down debt, solidify our capital structure and maintain common unit distributions." Mr. Nunez continued, "We also closed our first carbon sequestration transaction in the fourth quarter, receiving $13.8 million in exchange for agreeing to sequester 1.1 million tonnes of carbon dioxide ("CO2") in our West Virginia forestland. We announced our second carbon sequestration transaction earlier this quarter after granting Denbury the right to develop a world-class subsurface CO2 sequestration project on 75,000 acres of underground pore space we control in southwest Alabama, which Denbury believes has the potential to store over 300 million tonnes of CO2. We expect this project, if developed, to be the first of what will potentially be numerous subsurface carbon sequestration projects conducted on the approximately 3.5 million acres where we own the rights to sequester CO2 underground across the United States. These projects have the potential to provide important benefits to the environment and add significant value to NRP over the coming years.” NRP's liquidity was $235.5 million at December 31, 2021, consisting of $135.5 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. NRP redeemed at par all 19,321 of its paid-in-kind 12.0% Class A Convertible Preferred Units for $19.6 million in cash in accordance with their terms and including accrued interest. Following the redemption, no paid-in-kind preferred units remain outstanding. Additionally, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit and a $7.5 million cash distribution on the preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs. Segment Performance Mineral Rights (segment formerly named Coal Royalty and Other) NRP has changed the name of its Coal Royalty and Other business segment to Mineral Rights. This name change highlights NRP’s vast mineral ownership interests as well as its intensifying focus on leveraging the Partnership's asset footprint across the United States, including subsurface carbon sequestration rights, to become a key player in the transitional energy economy for the years to come. There has been no change to the composition of this reportable business segment or the structure of NRP's internal organization in connection with this name change. Mineral Rights net income for the fourth quarter and full year of 2021 increased $38.1 million and $183.6 million, respectively, as compared to the prior year periods. Free cash flow for the fourth quarter and full year of 2021 increased $34.1 million and $35.1 million, respectively, as compared to the prior year periods. These increases were primarily due to stronger metallurgical coal demand and pricing in 2021 and $13.8 million of cash received in the fourth quarter of 2021 from the forestland carbon sequestration transaction. In addition, full year 2021 net income improved due to $130.8 million of higher asset impairments recorded in 2020. Approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal in the fourth quarter of 2021. Metallurgical coal markets have rebounded significantly from the lows seen in 2020 to record high pricing and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have also significantly improved from the lows seen in 2020, however NRP did not have meaningful sensitivity to thermal coal price movements in 2021 since the substantial majority of NRP's thermal cash flows were fixed pursuant to a contract with Foresight Energy that went into effect as it emerged from bankruptcy in 2020. That contract expired at the end of 2021 and NRP began receiving traditional royalty payments in January 2022. While NRP may benefit from improved thermal coal demand and pricing in the near term, thermal coal markets still face the long-term challenges presented by competition from natural gas and the secular shift to renewable energy. In addition, NRP continues to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities include the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy. While the timing and likelihood of additional cash flows being realized from further activities is uncertain, NRP believes its large ownership footprint throughout the United States will provide additional opportunities to create value in this regard with minimal capital investment. Soda Ash In December, a publicly-traded Turkish conglomerate, Sisecam, acquired a majority stake in the managing partner of Sisecam Wyoming LLC, the business formerly known as Ciner Wyoming LLC. Sisecam brings extensive experience and knowledge to NRP's soda ash partnership given its soda ash operating experience in Turkey, Bulgaria and Europe, as well as its container and flat glass manufacturing around the world. NRP looks forward to working with Sisecam to build on the significant value realized by the soda ash partnership with the Ciner Group, which continues to own a minority stake in the partnership. Soda ash net income in the fourth quarter and full year of 2021 increased $5.1 million and $11.2 million, respectively, as compared to the prior year period as demand and pricing for soda ash continues to improve globally from the lows caused by the COVID-19 pandemic. As a result of the soda ash segment's improved performance, Sisecam Wyoming reinstated regular quarterly cash distributions in the fourth quarter of 2021, which were previously suspended since the third quarter of 2020. Accordingly, free cash flow in the fourth quarter of 2021 increased $7.3 million as compared to the prior year period, but decreased $2.9 million for the full year of 2021 as compared to the prior year due to the regular quarterly cash distributions being suspended until the fourth quarter of 2021. Corporate and Financing Corporate and financing costs in the fourth quarter and full year of 2021 increased by $2.2 million and $1.0 million, respectively, as compared to the prior year periods, primarily due to an increase in incentive compensation as a result of significantly improved operating results in 2021, partially offset by lower interest expense as a result of less debt outstanding. Free cash flow in the fourth quarter and full year of 2021 improved $0.4 million and $2.1 million, respectively, as compared to prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2021. As noted earlier, NRP declared a fourth quarter 2021 cash distribution of $0.45 per common unit of NRP and a $7.5 million cash distribution on the preferred units. NRP's consolidated leverage ratio fell from 4.6x at December 31, 2020 to 2.7x at December 31, 2021 and expects its leverage ratio to continue to decline 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: https://conferencingportals.com/event/kfJdSHYP. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website. Company Profile Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world’s lowest-cost producers of soda ash. For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership’s website at http://www.nrplp.com. Forward-Looking Statements This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership’s common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, 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) 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, 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 redemption of PIK units, common unit distributions and warrant cash settlements. Cash flow cushion is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units. "Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as net income (loss) 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) 2021 2020 2021 2021 2020 Revenues and other income Royalty and other mineral rights $ 70,774 $ 31,327 $ 47,884 $ 185,196 $ 120,166 Transportation and processing services 2,507 2,194 2,171 9,052 8,845 Equity in earnings of Sisecam Wyoming 10,625 5,528 6,672 21,871 10,728 Gain on asset sales and disposals 2 116 68 245 581 Total revenues and other income $ 83,908 $ 39,165 $ 56,795 $ 216,364 $ 140,320 Operating expenses Operating and maintenance expenses $ 7,973 $ 5,595 $ 8,354 $ 27,049 $ 24,795 Depreciation, depletion and amortization 3,930 3,013 5,182 19,075 9,198 General and administrative expenses 5,810 3,125 4,052 17,360 14,293 Asset impairments 986 2,668 57 5,102 135,885 Total operating expenses $ 18,699 $ 14,401 $ 17,645 $ 68,586 $ 184,171 Income (loss) from operations $ 65,209 $ 24,764 $ 39,150 $ 147,778 $ (43,851 ) Interest expense, net $ (9,568 ) $ (10,077 ) $ (9,652 ) $ (38,876 ) $ (40,968 ) Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Less: income attributable to preferred unitholders (8,079 ) (7,612 ) (7,961 ) (31,609 ) (30,225 ) Net income (loss) attributable to common unitholders and the general partner $ 47,562 $ 7,075 $ 21,537 $ 77,293 $ (115,044 ) Net income (loss) attributable to common unitholders $ 46,611 $ 6,934 $ 21,106 $ 75,747 $ (112,743 ) Net income (loss) attributable to the general partner 951 141 431 1,546 (2,301 ) Net income (loss) per common unit Basic $ 3.77 $ 0.57 $ 1.71 $ 6.14 $ (9.20 ) Diluted 2.42 0.56 1.10 4.81 (9.20 ) Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Comprehensive income (loss) from unconsolidated investment and other (4,580 ) 152 4,204 2,889 2,916 Comprehensive income (loss) $ 51,061 $ 14,839 $ 33,702 $ 111,791 $ (81,903 ) 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) 2021 2020 2021 2021 2020 Cash flows from operating activities Net income (loss) $ 55,641 $ 14,687 $ 29,498 $ 108,902 $ (84,819 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: Depreciation, depletion and amortization 3,930 3,013 5,182 19,075 9,198 Distributions from unconsolidated investment 7,350 — — 11,270 14,210 Equity earnings from unconsolidated investment (10,625 ) (5,528 ) (6,672 ) (21,871 ) (10,728 ) Gain on asset sales and disposals (2 ) (116 ) (68 ) (245 ) (581 ) Asset impairments 986 2,668 57 5,102 135,885 Bad debt expense 857 86 2,069 2,572 4,001 Unit-based compensation expense 1,202 1,004 1,118 4,039 3,570 Amortization of debt issuance costs and other 366 832 653 2,265 1,323 Change in operating assets and liabilities: Accounts receivable (2,083 ) 4,859 (9,163 ) (14,415 ) 12,853 Accounts payable 481 14 182 570 207 Accrued liabilities 3,859 780 357 3,020 (2,205 ) Accrued interest (7,472 ) (7,559 ) 7,262 (501 ) (602 ) Deferred revenue 2,428 (461 ) (2,652 ) 307 9,733 Other items, net (1,757 ) (1,124 ) 2,236 1,714 (4,477 ) Net cash provided by operating activities of continuing operations $ 55,161 $ 13,155 $ 30,059 $ 121,804 $ 87,568 Net cash provided by operating activities of discontinued operations — — — — 1,706 Net cash provided by operating activities $ 55,161 $ 13,155 $ 30,059 $ 121,804 $ 89,274 Cash flows from investing activities Proceeds from asset sales and disposals $ — $ 116 $ 74 $ 249 $ 623 Return of long-term contract receivable 541 660 540 2,163 2,122 Acquisition of non-controlling interest in BRP — — — — (1,000 ) Net cash provided by investing activities of continuing operations $ 541 $ 776 $ 614 $ 2,412 $ 1,745 Net cash provided by (used in) investing activities of discontinued operations — 1 — — (65 ) Net cash provided by investing activities $ 541 $ 777 $ 614 $ 2,412 $ 1,680 Cash flows from financing activities Debt repayments $ (20,335 ) $ (20,335 ) $ — $ (39,396 ) $ (46,176 ) Distributions to common unitholders and the general partner (5,672 ) (5,630 ) (5,671 ) (22,645 ) (16,890 ) Distributions to preferred unitholders (3,980 ) (3,750 ) (3,921 ) (15,571 ) (26,363 ) Warrant settlement (9,183 ) — — (9,183 ) — Contributions from discontinued operations — 1 — — 1,641 Acquisition of non-controlling interest in BRP — — — (1,000 ) — Other items (1 ) — — (691 ) — Net cash used in financing activities of continuing operations $ (39,171 ) $ (29,714 ) $ (9,592 ) $ (88,486 ) $ (87,788 ) Net cash used in financing activities of discontinued operations — (1 ) — — (1,641 ) Net cash used in financing activities $ (39,171 ) $ (29,715 ) $ (9,592 ) $ (88,486 ) $ (89,429 ) Net increase (decrease) in cash and cash equivalents $ 16,531 $ (15,783 ) $ 21,081 $ 35,730 $ 1,525 Cash and cash equivalents at beginning of period 118,989 115,573 97,908 99,790 98,265 Cash and cash equivalents at end of period $ 135,520 $ 99,790 $ 118,989 $ 135,520 $ 99,790 Supplemental cash flow information: Cash paid for interest $ 16,549 $ 17,118 $ 1,898 $ 37,378 $ 39,830 Non-cash investing and financing activities: Plant, equipment, mineral rights and other funded with accounts payable or accrued liabilities $ — $ 23 $ — $ — $ 970 Preferred unit distributions paid-in-kind 3,980 3,750 3,921 15,571 3,750 Natural Resource Partners L.P. Financial Tables Consolidated Balance Sheets December 31, (In thousands, except unit data) 2021 2020 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 135,520 $ 99,790 Accounts receivable, net 24,538 12,322 Other current assets, net 2,723 5,080 Total current assets $ 162,781 $ 117,192 Land 24,008 24,008 Mineral rights, net 437,697 460,373 Intangible assets, net 16,130 17,459 Equity in unconsolidated investment 276,004 262,514 Long-term contract receivable, net 31,371 33,264 Other long-term assets, net 5,832 7,067 Total assets $ 953,823 $ 921,877 LIABILITIES AND CAPITAL Current liabilities Accounts payable $ 1,956 $ 1,385 Accrued liabilities 10,297 7,733 Accrued interest 1,213 1,714 Current portion of deferred revenue 11,817 11,485 Current portion of long-term debt, net 39,102 39,055 Total current liabilities $ 64,385 $ 61,372 Deferred revenue 50,045 50,069 Long-term debt, net 394,443 432,444 Other non-current liabilities 5,018 5,131 Total liabilities $ 513,891 $ 549,016 Commitments and contingencies Class A Convertible Preferred Units (269,321 and 253,750 units issued and outstanding at December 31, 2021 and 2020, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit and $1,700 per unit at December 31, 2021 and 2020, respectively) $ 183,908 $ 168,337 Partners’ capital: Common unitholders’ interest (12,351,306 and 12,261,199 units issued and outstanding at December 30, 2021 and 2020, respectively) $ 203,062 $ 136,927 General partner’s interest 1,787 459 Warrant holders' interest 47,964 66,816 Accumulated other comprehensive income 3,211 322 Total partners’ capital $ 256,024 $ 204,524 Total liabilities and capital $ 953,823 $ 921,877 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, 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 (1) — (83,123 ) (1,696 ) — — (84,819 ) — (84,819 ) Distributions to common unitholders and the 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 ) 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 Net income (2) — 106,724 2,178 — — 108,902 — 108,902 Distributions to common unitholders and the general partner — (22,192 ) (453 ) — — (22,645 ) — (22,645 ) Distributions to preferred unitholders — (30,519 ) (623 ) — — (31,142 ) — (31,142 ) Issuance of unit-based awards 90 — — — — — — — Unit-based awards amortization and vesting — 2,647 — — — 2,647 — 2,647 Capital contribution — — 32 — — 32 — 32 Warrant settlement — 9,475 194 (18,852 ) — (9,183 ) — (9,183 ) Comprehensive income from unconsolidated investment and other — — — — 2,889 2,889 — 2,889 Balance at December 31, 2021 12,351 $ 203,062 $ 1,787 $ 47,964 $ 3,211 $ 256,024 $ — $ 256,024 (1) 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. (2) Net income includes $31.6 million of income attributable to preferred unitholders that accumulated during the period, of which $31.0 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, 2021 and 2020 and September 30, 2021: Operating Segments Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Revenues $ 73,281 $ 10,625 $ — $ 83,906 Gain on asset sales and disposals 2 — — 2 Total revenues and other income $ 73,283 $ 10,625 $ — $ 83,908 Asset impairments $ 986 $ — $ — $ 986 Net income (loss) $ 60,432 $ 10,587 $ (15,378 ) $ 55,641 Adjusted EBITDA (1) $ 65,348 $ 7,312 $ (5,810 ) $ 66,850 Cash flow provided by (used in) continuing operations: Operating activities $ 67,887 $ 7,289 $ (20,015 ) $ 55,161 Investing activities $ 541 $ — $ — $ 541 Financing activities $ — $ — $ (39,171 ) $ (39,171 ) Distributable cash flow (1) $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Free cash flow (1) $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 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) $ 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 September 30, 2021 Revenues $ 50,055 $ 6,672 $ — $ 56,727 Gain on asset sales and disposals 68 — — 68 Total revenues and other income $ 50,123 $ 6,672 $ — $ 56,795 Asset impairments $ 57 $ — $ — $ 57 Net income (loss) $ 36,606 $ 6,596 $ (13,704 ) $ 29,498 Adjusted EBITDA (1) $ 41,845 $ (76 ) $ (4,052 ) $ 37,717 Cash flow provided by (used in) continuing operations: Operating activities $ 33,968 $ (36 ) $ (3,873 ) $ 30,059 Investing activities $ 614 $ — $ — $ 614 Financing activities $ — $ — $ (9,592 ) $ (9,592 ) Distributable cash flow (1) $ 34,582 $ (36 ) $ (3,873 ) $ 30,673 Free cash flow (1) $ 34,508 $ (36 ) $ (3,873 ) $ 30,599 (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 table presents NRP's unaudited business results by segment for the year ended December 31, 2021 and 2020: Operating Segments Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Revenues $ 194,248 $ 21,871 $ — $ 216,119 Gain on asset sales and disposals 245 — — 245 Total revenues and other income $ 194,493 $ 21,871 $ — $ 216,364 Asset impairments $ 5,102 $ — $ — $ 5,102 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Adjusted EBITDA (1) $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 Cash flow provided by (used in) continuing operations: Operating activities $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Investing activities $ 2,412 $ — $ — $ 2,412 Financing activities $ (1,132 ) $ — $ (87,354 ) $ (88,486 ) Distributable cash flow (1) $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Free cash flow (1) $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 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) $ (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 (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 - Mineral Rights For the Three Months Ended For the Year Ended December 31, September 30, December 31, (In thousands, except per ton data) 2021 2020 2021 2021 2020 Coal sales volumes (tons) Appalachia Northern 388 131 422 1,335 647 Central 3,455 2,468 3,199 12,279 10,111 Southern 513 69 642 1,571 889 Total Appalachia 4,356 2,668 4,263 15,185 11,647 Illinois Basin 1,401 1,540 2,689 9,388 3,381 Northern Powder River Basin 860 506 1,047 3,151 1,738 Gulf Coast 42 — 13 55 — Total coal sales volumes 6,659 4,714 8,012 27,779 16,766 Coal royalty revenue per ton Appalachia Northern $ 8.81 $ 2.92 $ 7.18 $ 6.51 $ 2.36 Central 7.77 3.84 5.74 5.71 4.17 Southern 7.73 5.28 11.61 9.14 4.75 Illinois Basin 2.05 2.21 2.33 2.12 2.36 Northern Powder River Basin 3.41 3.11 3.71 3.54 3.50 Gulf Coast 0.62 — 0.54 0.60 — Combined average coal royalty revenue per ton 6.01 3.23 4.87 4.47 3.70 Coal royalty revenues Appalachia Northern $ 3,419 $ 383 $ 3,031 $ 8,691 $ 1,526 Central 26,841 9,481 18,357 70,149 42,207 Southern 3,965 364 7,452 14,355 4,221 Total Appalachia 34,225 10,228 28,840 93,195 47,954 Illinois Basin 2,873 3,403 6,261 19,917 7,973 Northern Powder River Basin 2,929 1,576 3,881 11,151 6,086 Gulf Coast 26 — 7 33 — Unadjusted coal royalty revenues 40,053 15,207 38,989 124,296 62,013 Coal royalty adjustment for minimum leases (2,059 ) (3,898 ) (6,557 ) (20,207 ) (10,145 ) Total coal royalty revenues $ 37,994 $ 11,309 $ 32,432 $ 104,089 $ 51,868 Other revenues Production lease minimum revenues $ 4,028 $ 8,195 $ 3,235 $ 14,269 $ 21,749 Minimum lease straight-line revenues 4,791 4,447 4,808 20,564 16,796 Forest CO2 sequestration revenues 13,790 — — 13,790 — Wheelage revenues 4,476 1,557 1,964 10,065 7,025 Property tax revenues 1,506 1,530 1,466 6,028 5,786 Coal overriding royalty revenues 775 1,658 757 4,367 4,977 Lease amendment revenues 1,537 859 1,519 4,696 3,450 Aggregates royalty revenues 550 649 429 1,889 1,717 Oil and gas royalty revenues 1,086 893 1,154 4,506 5,816 Other revenues 241 230 120 933 982 Total other revenues $ 32,780 $ 20,018 $ 15,452 $ 81,107 $ 68,298 Royalty and other mineral rights $ 70,774 $ 31,327 $ 47,884 $ 185,196 $ 120,166 Transportation and processing services revenues 2,507 2,194 2,171 9,052 8,845 Gain on asset sales and disposals 2 116 68 245 581 Total Mineral Rights segment revenues and other income $ 73,283 $ 33,637 $ 50,123 $ 194,493 $ 129,592 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Adjusted EBITDA Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Net income (loss) $ 60,432 $ 10,587 $ (15,378 ) $ 55,641 Less: equity earnings from unconsolidated investment — (10,625 ) — (10,625 ) Add: total distributions from unconsolidated investment — 7,350 — 7,350 Add: interest expense, net — — 9,568 9,568 Add: depreciation, depletion and amortization 3,930 — — 3,930 Add: asset impairments 986 — — 986 Adjusted EBITDA $ 65,348 $ 7,312 $ (5,810 ) $ 66,850 For the Three Months Ended December 31, 2020 Net income (loss) $ 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 September 30, 2021 Net income (loss) $ 36,606 $ 6,596 (13,704 ) $ 29,498 Less: equity earnings from unconsolidated investment — (6,672 ) — (6,672 ) Add: total distributions from unconsolidated investment — — — — Add: interest expense, net — — 9,652 9,652 Add: depreciation, depletion and amortization 5,182 — — 5,182 Add: asset impairments 57 — — 57 Adjusted EBITDA $ 41,845 $ (76 ) $ (4,052 ) $ 37,717 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Adjusted EBITDA Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Less: equity earnings from unconsolidated investment — (21,871 ) — (21,871 ) Add: total distributions from unconsolidated investment — 11,270 — 11,270 Add: interest expense, net 24 — 38,852 38,876 Add: depreciation, depletion and amortization 19,075 — — 19,075 Add: asset impairments 5,102 — — 5,102 Adjusted EBITDA $ 167,613 $ 11,101 $ (17,360 ) $ 161,354 For the Year Ended December 31, 2020 Net income (loss) $ (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: 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 Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Distributable Cash Flow and Free Cash Flow Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Three Months Ended December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 67,887 $ 7,289 $ (20,015 ) $ 55,161 Add: proceeds from asset sales and disposals — — — — Add: return of long-term contract receivable 541 — — 541 Distributable cash flow $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Less: proceeds from asset sales and disposals — — — — Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs — — — — Free cash flow $ 68,428 $ 7,289 $ (20,015 ) $ 55,702 Net cash provided by investing activities $ 541 $ — $ — $ 541 Net cash used in financing activities — — (39,171 ) (39,171 ) 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 Net cash provided by investing activities $ 776 $ — $ — $ 776 Net cash used in financing activities — — (29,714 ) (29,714 ) For the Three Months Ended September 30, 2021 Net cash provided by (used in) operating activities of continuing operations $ 33,968 $ (36 ) $ (3,873 ) $ 30,059 Add: proceeds from asset sales and disposals 74 — — 74 Add: return of long-term contract receivable 540 — — 540 Distributable cash flow $ 34,582 $ (36 ) $ (3,873 ) $ 30,673 Less: proceeds from asset sales and disposals (74 ) — — (74 ) Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs — — — — Free cash flow $ 34,508 $ (36 ) $ (3,873 ) $ 30,599 Net cash provided by investing activities $ 614 $ — $ — $ 614 Net cash used in financing activities — — (9,592 ) (9,592 ) Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Distributable Cash Flow and Free Cash Flow Mineral Rights Corporate and Financing (In thousands) Soda Ash Total For the Year Ended December 31, 2021 Net cash provided by (used in) operating activities of continuing operations $ 159,845 $ 11,106 $ (49,147 ) $ 121,804 Add: proceeds from asset sales and disposals 249 — — 249 Add: proceeds from sale of discontinued operations — — — — Add: return of long-term contract receivable 2,163 — — 2,163 Distributable cash flow $ 162,257 $ 11,106 $ (49,147 ) $ 124,216 Less: proceeds from asset sales and disposals (249 ) — — (249 ) Less: proceeds from sale of discontinued operations — — — — Less: acquisition costs (1,000 ) — — (1,000 ) Free cash flow $ 161,008 $ 11,106 $ (49,147 ) $ 122,967 Net cash provided by investing activities $ 2,412 $ — $ — $ 2,412 Net cash used in financing activities (1,132 ) — (87,354 ) (88,486 ) 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 Net cash provided by investing activities $ 1,745 $ — $ — $ 1,745 Net cash used in financing activities — — (87,788 ) (87,788 ) Cash Flow Cushion For the Year Ended December 31, (In thousands) 2021 2020 Free cash flow $ 122,967 $ 88,690 Less: mandatory Opco debt repayments (39,396 ) (46,176 ) Less: preferred unit distributions (15,571 ) (26,363 ) Less: common unit distributions (22,645 ) (16,890 ) Less: warrant cash settlement (9,183 ) — Cash flow cushion $ 36,172 $ (739 ) Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited) Leverage Ratio (In thousands) For the Year Ended December 31, 2021 Adjusted EBITDA $ 161,354 Debt—at December 31, 2021 $ 438,484 Leverage Ratio (1) 2.7 x (1) Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2021 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, 2021, was 2.7x as calculated under the indenture governing NRP's 2025 parent company notes. Return on Capital Employed ("ROCE") Mineral Rights Corporate and Financing (In thousands) Soda Ash Total LTM Ended December 31, 2021 Net income (loss) $ 143,412 $ 21,702 $ (56,212 ) $ 108,902 Financing costs 30 — 38,908 38,938 Return $ 143,442 $ 21,702 $ (17,304 ) $ 147,840 As of December 31, 2020 Total assets $ 656,505 $ 262,514 $ 2,858 $ 921,877 Less: total current liabilities excluding current debt, net (17,957 ) (12 ) (4,348 ) (22,317 ) Less: total long-term liabilities excluding long-term debt, net (54,640 ) — (560 ) (55,200 ) Capital employed $ 583,908 $ 262,502 $ (2,050 ) $ 844,360 Total partners' capital $ 583,908 $ 262,502 $ (641,886 ) $ 204,524 Class A convertible preferred units — — 168,337 168,337 Debt, net — — 471,499 471,499 Capital employed $ 583,908 $ 262,502 $ (2,050 ) $ 844,360 ROCE 24.6 % 8.3 % N/A 17.5 % Excluding asset impairments: Return $ 143,442 $ 21,702 $ (17,304 ) $ 147,840 Add: asset impairments 5,102 — — 5,102 Return excluding asset impairments $ 148,544 $ 21,702 $ (17,304 ) $ 152,942 ROCE excluding asset impairments 25.4 % 8.3 % N/A 18.1 % View source version on businesswire.com: https://www.businesswire.com/news/home/20220315005180/en/
