Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2022 Results and Announces Special Distribution of $2.43 per Common Unit

Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2022 results as follows:

 

 

For the Three

Months Ended

 

 

For the Year

Ended

 

(In thousands) (Unaudited)

 

December 31, 2022

 

Operating cash flow

 

$

68,888

 

 

$

266,838

 

Free cash flow (1)

 

 

69,414

 

 

 

268,443

 

Cash flow cushion (last twelve months) (1)

 

 

 

 

 

 

145,084

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,218

 

 

$

268,492

 

Adjusted EBITDA (1)

 

 

75,347

 

 

 

317,247

_____________

(1)

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

2022 Highlights:

  • Generated record free cash flow of $268 million
  • Increased regular, quarterly common unit distribution 67% to $0.75
  • Fully repaid all $300 million of outstanding 9.125% Senior Notes due 2025
  • Lowered leverage ratio to 0.5x as of December 31, 2022
  • Executed first two subsurface carbon dioxide ("CO2") sequestration leases with Denbury and Oxy and executed first geothermal energy lease
  • Closed new five-year, $130 million revolving credit facility

"NRP generated a record $268 million of free cash flow in 2022 driven primarily by strong metallurgical coal prices, lower interest expense, and solid distributions from our soda ash investment," stated Craig Nunez, NRP's president & chief operating officer. "Strong cash flow generation has allowed us to accelerate our de-leveraging and de-risking plans. In 2022, we fully repaid all of the $300 million 9.125% Senior Notes due 2025 and established a new five-year revolving bank credit facility that provides us with greater financial flexibility. We also continue to focus on redeeming our 12% convertible preferred equity. Early in 2023, one of the preferred holders exercised their right to convert $47.5 million of the preferred units into NRP common units. After considering our financial position, liquidity, and comparing the market value of NRP's common units to our estimate of intrinsic value, we elected to redeem the units with the payment of $47.5 million of cash instead of issuing NRP common units. After this transaction, the outstanding liquidation value of our convertible preferred units was reduced to $202.5 million."

Mr. Nunez continued, "We remain focused on maximizing long-term free cash flow available to common unitholders and increasing our financial flexibility. We intend to achieve this by paying off all permanent debt, redeeming all preferred equity, and settling all remaining warrants. We also remain focused on becoming a key player in the transitional energy economy. During the year we made significant progress toward this goal with the execution of our first two subsurface carbon sequestration leases and our first geothermal energy lease, which have the potential to produce significant cash flow over the long term."

NRP's liquidity was $99.1 million at December 31, 2022, consisting of $39.1 million of cash and $60.0 million of borrowing capacity available under its revolving credit facility.

NRP also announced today that the board of directors of its general partner declared a one-time, special cash distribution of $2.43 per common unit to be paid on March 21, 2023 to unitholders of record on March 14, 2023. This special distribution is to help cover unitholder tax liabilities associated with owning NRP's common units during 2022. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the board of directors. The board of directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the board determines is necessary for future operating and capital needs.

Segment Performance

Mineral Rights

Mineral Rights net income for the fourth quarter and full year of 2022 increased $2.5 million and $124.0 million, respectively, as compared to the prior year periods. Operating cash flow for the fourth quarter and full year of 2022 increased $0.4 million and $103.0 million, respectively, as compared to the prior year periods. Free cash flow for the fourth quarter and full year of 2022 increased $0.5 million and $103.5 million, respectively, as compared to the prior year periods. These increases were primarily due to stronger metallurgical coal demand and higher prices in 2022. The fourth quarter of 2022 increases were partially offset by $13.8 million of cash received and revenue recognized in the fourth quarter of 2021 from a forestland carbon sequestration transaction. Approximately 65% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the fourth quarter of 2022, and approximately 70% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the full year of 2022.

Metallurgical and thermal coal prices have declined from the record highs seen in 2022 but remain strong relative to historical norms. Operators are limited in their ability to increase production due to ongoing labor shortages, global supply chain interruptions, and access to capital providing continued support for pricing.

In addition, NRP continues to explore and identify carbon neutral 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 these activities is uncertain, NRP believes its large ownership footprint throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by NRP.

Soda Ash

Soda Ash net income in the fourth quarter and full year of 2022 increased $5.1 million and $37.9 million, respectively, as compared to the prior year periods primarily due to increased international sales prices. Operating cash flow and free cash flow in the fourth quarter and full year of 2022 increased $3.4 million and $33.6 million, respectively, as compared to the prior year periods. The 2022 full year increases were due to Sisecam Wyoming reinstating its regular quarterly cash distributions beginning in the fourth quarter of 2021.

Strong international sales at Sisecam Wyoming for the year ended December 31, 2022, more than offset input cost inflation, supply chain difficulties, and softening demand in the second half of the year due to China’s Zero-COVID policy and concerns of slowing global economic growth.

Corporate and Financing

Corporate and Financing costs in the fourth quarter and full year of 2022 were flat and increased by $2.4 million, respectively, as compared to the prior year periods. The full year increase was primarily due to the loss on early extinguishment of debt associated with the retirement of the 2025 Senior Notes during 2022 and an increase in incentive compensation resulting from significantly improved business performance in 2022, partially offset by lower interest expense as a result of less debt outstanding. Operating cash flow in the fourth quarter and full year of 2022 improved $9.8 million and $8.5 million, respectively, as compared to the prior year periods. Free cash flow in the fourth quarter and full year of 2022 improved $9.8 million and $8.4 million, respectively, as compared to the prior year periods. These improvements were primarily due to lower cash paid for interest as a result of less debt outstanding in 2022.

NRP continues to make great strides in de-levering and de-risking the partnership. In 2022, NRP fully retired its outstanding $300 million 9.125% Senior Notes due 2025, aiding in the sharp decrease in NRP's consolidated leverage ratio to 0.5x at December 31, 2022 from 2.7x at December 31, 2021.

In February 2023, NRP received a notice from holders of the partnership's Class A Preferred Units exercising their right to either convert or redeem, at the election of NRP, an aggregate of 47,499 Class A Preferred Units. NRP chose to redeem the preferred units for $47.5 million in cash plus any accrued and unpaid distributions, utilizing cash on hand and borrowings from the revolving credit facility. Of the originally issued 250,000 Class A Preferred Units, 202,501 Class A Preferred Units remain outstanding.

In February 2023, NRP declared and paid a fourth quarter 2022 cash distribution of $0.75 per common unit and a $7.5 million cash distribution on the preferred units. As previously mentioned, today NRP declared a one-time, special distribution of $2.43 per common unit to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.

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 conference call we suggest registering at minimum 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP’s website.

Withholding Information for Foreign Investors

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

Company Profile

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

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

Forward-Looking Statements

This press release includes forward-looking statementsas 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 Partnerships common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees; Sisecam Wyoming LLCs trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; and other factors detailed in Natural Resource PartnersSecurities 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.

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

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Comprehensive Income

 

 

 

For the Three Months Ended

 

 

For the Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(In thousands, except per unit data)

 

2022

 

 

2021

 

 

2022

 

 

2022

 

 

2021

 

Revenues and other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty and other mineral rights

 

$

75,218

 

 

$

70,774

 

 

$

81,379

 

 

$

307,013

 

 

$

185,196

 

Transportation and processing services

 

 

5,695

 

 

 

2,507

 

 

 

5,969

 

 

 

21,072

 

 

 

9,052

 

Equity in earnings of Sisecam Wyoming

 

 

15,759

 

 

 

10,625

 

 

 

14,556

 

 

 

59,795

 

 

 

21,871

 

Gain on asset sales and disposals

 

 

383

 

 

 

2

 

 

 

354

 

 

 

1,082

 

 

 

245

 

Total revenues and other income

 

$

97,055

 

 

$

83,908

 

 

$

102,258

 

 

$

388,962

 

 

$

216,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating and maintenance expenses

 

$

8,914

 

 

$

7,973

 

 

$

7,898

 

 

$

34,903

 

 

$

27,049

 

Depreciation, depletion and amortization

 

 

5,954

 

 

 

3,930

 

 

 

6,850

 

 

 

22,519

 

 

 

19,075

 

General and administrative expenses

 

 

7,815

 

 

 

5,810

 

 

 

4,518

 

 

 

21,852

 

 

 

17,360

 

Asset impairments

 

 

3,583

 

 

 

986

 

 

 

812

 

 

 

4,457

 

 

 

5,102

 

Total operating expenses

 

$

26,266

 

 

$

18,699

 

 

$

20,078

 

 

$

83,731

 

 

$

68,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

$

70,789

 

 

$

65,209

 

 

$

82,180

 

 

$

305,231

 

 

$

147,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expenses, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

$

(3,638

)

 

$

(9,568

)

 

$

(5,141

)

 

$

(26,274

)

 

$

(38,876

)

Loss on extinguishment of debt

 

 

(3,933

)

 

 

 

 

 

(2,484

)

 

 

(10,465

)

 

 

 

Total other expenses, net

 

$

(7,571

)

 

$

(9,568

)

 

$

(7,625

)

 

$

(36,739

)

 

$

(38,876

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,218

 

 

$

55,641

 

 

$

74,555

 

 

$

268,492

 

 

$

108,902

 

Less: income attributable to preferred unitholders

 

 

(7,500

)

 

 

(8,079

)

 

 

(7,500

)

 

 

(30,000

)

 

 

(31,609

)

Net income attributable to common unitholders and the general partner

 

$

55,718

 

 

$

47,562

 

 

$

67,055

 

 

$

238,492

 

 

$

77,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common unitholders

 

$

54,603

 

 

$

46,611

 

 

$

65,714

 

 

$

233,722

 

 

$

75,747

 

Net income attributable to the general partner

 

 

1,115

 

 

 

951

 

 

 

1,341

 

 

 

4,770

 

 

 

1,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common unit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

4.37

 

 

$

3.77

 

 

$

5.25

 

 

$

18.72

 

 

$

6.14

 

Diluted

 

 

3.13

 

 

 

2.42

 

 

 

3.71

 

 

 

13.39

 

 

 

4.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,218

 

 

$

55,641

 

 

$

74,555

 

 

$

268,492

 

 

$

108,902

 

Comprehensive income (loss) from unconsolidated investment and other

 

 

16,685

 

 

 

(4,580

)

 

 

289

 

 

 

15,506

 

 

 

2,889

 

Comprehensive income

 

$

79,903

 

 

$

51,061

 

 

$

74,844

 

 

$

283,998

 

 

$

111,791

 

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)

 

2022

 

 

2021

 

 

2022

 

 

2022

 

 

2021

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

63,218

 

 

$

55,641

 

 

$

74,555

 

 

$

268,492

 

 

$

108,902

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

5,954

 

 

 

3,930

 

 

 

6,850

 

 

 

22,519

 

 

 

19,075

 

Distributions from unconsolidated investment

 

 

10,780

 

 

 

7,350

 

 

 

10,339

 

 

 

44,835

 

 

 

11,270

 

Equity earnings from unconsolidated investment

 

 

(15,759

)

 

 

(10,625

)

 

 

(14,556

)

 

 

(59,795

)

 

 

(21,871

)

Gain on asset sales and disposals

 

 

(383

)

 

 

(2

)

 

 

(354

)

 

 

(1,082

)

 

 

(245

)

Loss on extinguishment of debt

 

 

3,933

 

 

 

 

 

 

2,484

 

 

 

10,465

 

 

 

 

Asset impairments

 

 

3,583

 

 

 

986

 

 

 

812

 

 

 

4,457

 

 

 

5,102

 

Bad debt expense

 

 

421

 

 

 

857

 

 

 

1

 

 

 

1,062

 

 

 

2,572

 

Unit-based compensation expense

 

 

1,557

 

 

 

1,202

 

 

 

1,429

 

 

 

5,773

 

 

 

4,039

 

Amortization of debt issuance costs and other

 

 

523

 

 

 

366

 

 

 

215

 

 

 

2,410

 

 

 

2,265

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(8,553

)

 

 

(2,083

)

 

 

2,494

 

 

 

(18,671

)

 

 

(14,415

)

Accounts payable

 

 

(186

)

 

 

481

 

 

 

210

 

 

 

37

 

 

 

570

 

Accrued liabilities

 

 

5,766

 

 

 

3,859

 

 

 

278

 

 

 

935

 

 

 

3,020

 

Accrued interest

 

 

(3,238

)

 

 

(7,472

)

 

 

3,177

 

 

 

(224

)

 

 

(501

)

Deferred revenue

 

 

1,670

 

 

 

2,428

 

 

 

(7,519

)

 

 

(15,424

)

 

 

307

 

Other items, net

 

 

(398

)

 

 

(1,757

)

 

 

2,081

 

 

 

1,049

 

 

 

1,714

 

Net cash provided by operating activities

 

$

68,888

 

 

$

55,161

 

 

$

82,496

 

 

$

266,838

 

 

$

121,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from asset sales and disposals

 

$

384

 

 

$

 

 

$

353

 

 

$

1,083

 

 

$

249

 

Return of long-term contract receivable

 

 

585

 

 

 

541

 

 

 

575

 

 

 

1,723

 

 

 

2,163

 

Capital expenditures

 

 

(59

)

 

 

 

 

 

(59

)

 

 

(118

)

 

 

 

Net cash provided by investing activities

 

$

910

 

 

$

541

 

 

$

869

 

 

$

2,688

 

 

$

2,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt borrowings

 

$

70,000

 

 

$

 

 

$

 

 

$

70,000

 

 

$

 

Debt repayments

 

 

(141,731

)

 

 

(20,335

)

 

 

(60,494

)

 

 

(339,396

)

 

 

(39,396

)

Distributions to common unitholders and the general partner

 

 

(9,571

)

 

 

(5,672

)

 

 

(9,571

)

 

 

(34,384

)

 

 

(22,645

)

Distributions to preferred unitholders

 

 

(7,500

)

 

 

(3,980

)

 

 

(7,500

)

 

 

(30,000

)

 

 

(15,571

)

Redemption of preferred units paid-in-kind

 

 

 

 

 

 

 

 

 

 

 

(19,579

)

 

 

 

Warrant settlement

 

 

 

 

 

(9,183

)

 

 

 

 

 

 

 

 

(9,183

)

Acquisition of non-controlling interest in BRP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,000

)

Other items, net

 

 

(2,842

)

 

 

(1

)

 

 

(4,219

)

 

 

(12,596

)

 

 

(691

)

Net cash used in financing activities

 

$

(91,644

)

 

$

(39,171

)

 

$

(81,784

)

 

$

(365,955

)

 

$

(88,486

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

$

(21,846

)

 

$

16,531

 

 

$

1,581

 

 

$

(96,429

)

 

$

35,730

 

Cash and cash equivalents at beginning of period

 

 

60,937

 

 

 

118,989

 

 

 

59,356

 

 

 

135,520

 

 

 

99,790

 

Cash and cash equivalents at end of period

 

$

39,091

 

 

$

135,520

 

 

$

60,937

 

 

$

39,091

 

 

$

135,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

6,764

 

 

$

16,549

 

 

$

1,729

 

 

$

25,265

 

 

$

37,378

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Preferred unit distributions paid-in-kind

 

 

 

 

 

3,980

 

 

 

 

 

 

 

 

 

15,571

 

Natural Resource Partners L.P.

Financial Tables

 

Consolidated Balance Sheets

 

 

December 31,

 

(In thousands, except unit data)

 

2022

 

 

2021

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

39,091

 

 

$

135,520

 

Accounts receivable, net

 

 

42,701

 

 

 

24,538

 

Other current assets, net

 

 

1,822

 

 

 

2,723

 

Total current assets

 

$

83,614

 

 

$

162,781

 

Land

 

 

24,008

 

 

 

24,008

 

Mineral rights, net

 

 

412,312

 

 

 

437,697

 

Intangible assets, net

 

 

14,713

 

 

 

16,130

 

Equity in unconsolidated investment

 

 

306,470

 

 

 

276,004

 

Long-term contract receivable, net

 

 

28,946

 

 

 

31,371

 

Other long-term assets, net

 

 

7,068

 

 

 

5,832

 

Total assets

 

$

877,131

 

 

$

953,823

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,992

 

 

$

1,956

 

Accrued liabilities

 

 

11,916

 

 

 

10,297

 

Accrued interest

 

 

989

 

 

 

1,213

 

Current portion of deferred revenue

 

 

6,256

 

 

 

11,817

 

Current portion of long-term debt, net

 

 

39,076

 

 

 

39,102

 

Total current liabilities

 

$

60,229

 

 

$

64,385

 

Deferred revenue

 

 

40,181

 

 

 

50,045

 

Long-term debt, net

 

 

129,205

 

 

 

394,443

 

Other non-current liabilities

 

 

5,472

 

 

 

5,018

 

Total liabilities

 

$

235,087

 

 

$

513,891

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Class A Convertible Preferred Units (250,000 and 269,321 units issued and outstanding at December 31, 2022 and 2021, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at December 31, 2022 and 2021)

 

$

164,587

 

 

$

183,908

 

Partners’ capital

 

 

 

 

 

 

 

 

Common unitholders’ interest (12,505,996 and 12,351,306 units issued and outstanding at December 31, 2022 and 2021, respectively)

 

$

404,799

 

 

$

203,062

 

General partner’s interest

 

 

5,977

 

 

 

1,787

 

Warrant holders' interest

 

 

47,964

 

 

 

47,964

 

Accumulated other comprehensive income

 

 

18,717

 

 

 

3,211

 

Total partners’ capital

 

$

477,457

 

 

$

256,024

 

Total liabilities and partners' capital

 

$

877,131

 

 

$

953,823

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Consolidated Statements of Partners' Capital

 

 

 

Common Unitholders

 

 

General

 

 

Warrant

 

 

Accumulated

Other

Comprehensive

 

 

Total

Partners'

 

(In thousands)

 

Units

 

 

Amounts

 

 

Partner

 

 

Holders

 

 

Income

 

 

Capital

 

Balance at December 31, 2020

 

 

12,261

 

 

 

136,927

 

 

 

459

 

 

 

66,816

 

 

 

322

 

 

 

204,524

 

Net income (1)

 

 

 

 

 

106,724

 

 

 

2,178

 

 

 

 

 

 

 

 

 

108,902

 

Distributions to common unitholders and the general partner

 

 

 

 

 

(22,192

)

 

 

(453

)

 

 

 

 

 

 

 

 

(22,645

)

Distributions to preferred unitholders

 

 

 

 

 

(30,519

)

 

 

(623

)

 

 

 

 

 

 

 

 

(31,142

)

Issuance of unit-based awards

 

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

 

 

 

2,647

 

 

 

 

 

 

 

 

 

 

 

 

2,647

 

Capital contribution

 

 

 

 

 

 

 

 

32

 

 

 

 

 

 

 

 

 

32

 

Warrant settlement

 

 

 

 

 

9,475

 

 

 

194

 

 

 

(18,852

)

 

 

 

 

 

(9,183

)

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,889

 

 

 

2,889

 

Balance at December 31, 2021

 

$

12,351

 

 

$

203,062

 

 

$

1,787

 

 

$

47,964

 

 

$

3,211

 

 

$

256,024

 

Net income (2)

 

 

 

 

 

263,122

 

 

 

5,370

 

 

 

 

 

 

 

 

 

268,492

 

Distributions to common unitholders and the general partner

 

 

 

 

 

(33,697

)

 

 

(687

)

 

 

 

 

 

 

 

 

(34,384

)

Distributions to preferred unitholders

 

 

 

 

 

(29,653

)

 

 

(605

)

 

 

 

 

 

 

 

 

(30,258

)

Issuance of unit-based awards

 

 

155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit-based awards amortization and vesting, net

 

 

 

 

 

1,965

 

 

 

 

 

 

 

 

 

 

 

 

1,965

 

Capital contribution

 

 

 

 

 

 

 

 

112

 

 

 

 

 

 

 

 

 

112

 

Warrant settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income from unconsolidated investment and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,506

 

 

 

15,506

 

Balance at December 31, 2022

 

 

12,506

 

 

$

404,799

 

 

$

5,977

 

 

$

47,964

 

 

$

18,717

 

 

$

477,457

 

_____________
(1)

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.

(2)

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

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, 2022 and 2021 and September 30, 2022:

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Mineral

Rights

 

 

Soda Ash

 

 

Corporate

and

Financing

 

 

Total

 

For the Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

80,913

 

 

$

15,759

 

 

$

 

 

$

96,672

 

Gain on asset sales and disposals

 

 

383

 

 

 

 

 

 

 

 

 

383

 

Total revenues and other income

 

$

81,296

 

 

$

15,759

 

 

$

 

 

$

97,055

 

Asset impairments

 

$

3,583

 

 

$

 

 

$

 

 

$

3,583

 

Net income (loss)

 

$

62,900

 

 

$

15,704

 

 

$

(15,386

)

 

$

63,218

 

Adjusted EBITDA (1)

 

$

72,437

 

 

$

10,725

 

 

$

(7,815

)

 

$

75,347

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

68,332

 

 

$

10,738

 

 

$

(10,182

)

 

$

68,888

 

Investing activities

 

$

969

 

 

$

 

 

$

(59

)

 

$

910

 

Financing activities

 

$

 

 

$

 

 

$

(91,644

)

 

$

(91,644

)

Distributable cash flow (1)

 

$

69,301

 

 

$

10,738

 

 

$

(10,241

)

 

$

69,798

 

Free cash flow (1)

 

$

68,917

 

 

$

10,738

 

 

$

(10,241

)

 

$

69,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

87,348

 

 

$

14,556

 

 

$

 

 

$

101,904

 

Gain on asset sales and disposals

 

 

354

 

 

 

 

 

 

 

 

 

354

 

Total revenues and other income

 

$

87,702

 

 

$

14,556

 

 

$

 

 

$

102,258

 

Asset impairments

 

$

812

 

 

$

 

 

$

 

 

$

812

 

Net income (loss)

 

$

72,173

 

 

$

14,525

 

 

$

(12,143

)

 

$

74,555

 

Adjusted EBITDA (1)

 

$

79,835

 

 

$

10,308

 

 

$

(4,518

)

 

$

85,625

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

75,948

 

 

$

10,309

 

 

$

(3,761

)

 

$

82,496

 

Investing activities

 

$

928

 

 

$

 

 

$

(59

)

 

$

869

 

Financing activities

 

$

 

 

$

 

 

$

(81,784

)

 

$

(81,784

)

Distributable cash flow (1)

 

$

76,876

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,365

 

Free cash flow (1)

 

$

76,523

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,012

 

_____________

(1)

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

The following table presents NRP's unaudited business results by segment for the year ended December 31, 2022 and 2021:

 

 

 

Operating Segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

Mineral

Rights

 

 

Soda Ash

 

 

Corporate

and

Financing

 

 

Total

 

For the Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

328,085

 

 

$

59,795

 

 

$

 

 

$

387,880

 

Gain on asset sales and disposals

 

 

1,082

 

 

 

 

 

 

 

 

$

1,082

 

Total revenues and other income

 

$

329,167

 

 

$

59,795

 

 

$

 

 

$

388,962

 

Asset impairments

 

$

4,457

 

 

$

 

 

$

 

 

$

4,457

 

Net income (loss)

 

$

267,448

 

 

$

59,635

 

 

$

(58,591

)

 

$

268,492

 

Adjusted EBITDA (1)

 

$

294,424

 

 

$

44,675

 

 

$

(21,852

)

 

$

317,247

 

Cash flow provided by (used in) continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

262,807

 

 

$

44,672

 

 

$

(40,641

)

 

$

266,838

 

Investing activities

 

$

2,806

 

 

$

 

 

$

(118

)

 

$

2,688

 

Financing activities

 

$

(614

)

 

$

 

 

$

(365,341

)

 

$

(365,955

)

Distributable cash flow (1)

 

$

265,613

 

 

$

44,672

 

 

$

(40,759

)

 

$

269,526

 

Free cash flow (1)

 

$

264,530

 

 

$

44,672

 

 

$

(40,759

)

 

$

268,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

_____________

(1)

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Operating Statistics - Mineral Rights

 

 

 

For the Three Months Ended

 

 

For the Year Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(In thousands, except per ton data)

 

2022

 

 

2021

 

 

2022

 

 

2022

 

 

2021

 

Coal sales volumes (tons)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

 

436

 

 

 

388

 

 

 

440

 

 

 

1,696

 

 

 

1,335

 

Central

 

 

3,408

 

 

 

3,455

 

 

 

3,503

 

 

 

13,646

 

 

 

12,279

 

Southern

 

 

613

 

 

 

513

 

 

 

498

 

 

 

1,784

 

 

 

1,571

 

Total Appalachia

 

 

4,457

 

 

 

4,356

 

 

 

4,441

 

 

 

17,126

 

 

 

15,185

 

Illinois Basin

 

 

2,740

 

 

 

1,401

 

 

 

3,490

 

 

 

11,135

 

 

 

9,388

 

Northern Powder River Basin

 

 

1,516

 

 

 

860

 

 

 

835

 

 

 

4,288

 

 

 

3,151

 

Gulf Coast

 

 

61

 

 

 

42

 

 

 

188

 

 

 

385

 

 

 

55

 

Total coal sales volumes

 

 

8,774

 

 

 

6,659

 

 

 

8,954

 

 

 

32,934

 

 

 

27,779

 

Coal royalty revenue per ton

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

6.63

 

 

$

8.81

 

 

$

6.74

 

 

$

8.75

 

 

$

6.51

 

Central

 

 

9.33

 

 

 

7.77

 

 

 

9.04

 

 

 

10.47

 

 

 

5.71

 

Southern

 

 

11.99

 

 

 

7.73

 

 

 

9.78

 

 

 

13.50

 

 

 

9.14

 

Illinois Basin

 

 

3.11

 

 

 

2.05

 

 

 

2.57

 

 

 

2.50

 

 

 

2.12

 

Northern Powder River Basin

 

 

3.75

 

 

 

3.41

 

 

 

4.56

 

 

 

4.07

 

 

 

3.54

 

Gulf Coast

 

 

0.59

 

 

 

0.62

 

 

 

0.59

 

 

 

0.58

 

 

 

0.60

 

Combined average coal royalty revenue per ton

 

 

6.42

 

 

 

6.01

 

 

 

5.85

 

 

 

6.90

 

 

 

4.47

 

Coal royalty revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appalachia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern

 

$

2,890

 

 

$

3,419

 

 

$

2,965

 

 

$

14,836

 

 

$

8,691

 

Central

 

 

31,809

 

 

 

26,841

 

 

 

31,680

 

 

 

142,930

 

 

 

70,149

 

Southern

 

 

7,351

 

 

 

3,965

 

 

 

4,872

 

 

 

24,076

 

 

 

14,355

 

Total Appalachia

 

 

42,050

 

 

 

34,225

 

 

 

39,517

 

 

 

181,842

 

 

 

93,195

 

Illinois Basin

 

 

8,525

 

 

 

2,873

 

 

 

8,967

 

 

 

27,856

 

 

 

19,917

 

Northern Powder River Basin

 

 

5,686

 

 

 

2,929

 

 

 

3,805

 

 

 

17,437

 

 

 

11,151

 

Gulf Coast

 

 

36

 

 

 

26

 

 

 

111

 

 

 

223

 

 

 

33

 

Unadjusted coal royalty revenues

 

 

56,297

 

 

 

40,053

 

 

 

52,400

 

 

 

227,358

 

 

 

124,296

 

Coal royalty adjustment for minimum leases

 

 

(116

)

 

 

(2,059

)

 

 

(19

)

 

 

(402

)

 

 

(20,207

)

Total coal royalty revenues

 

$

56,181

 

 

$

37,994

 

 

$

52,381

 

 

$

226,956

 

 

$

104,089

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production lease minimum revenues

 

$

2,312

 

 

$

4,028

 

 

$

1,885

 

 

$

5,854

 

 

$

14,269

 

Minimum lease straight-line revenues

 

 

4,557

 

 

 

4,791

 

 

 

4,778

 

 

 

18,792

 

 

 

20,564

 

Carbon neutral initiative revenues

 

 

 

 

 

13,790

 

 

 

8,600

 

 

 

8,600

 

 

 

13,790

 

Wheelage revenues

 

 

2,888

 

 

 

4,476

 

 

 

2,977

 

 

 

13,961

 

 

 

10,065

 

Property tax revenues

 

 

1,351

 

 

 

1,506

 

 

 

1,360

 

 

 

5,878

 

 

 

6,028

 

Coal overriding royalty revenues

 

 

1,127

 

 

 

775

 

 

 

1,367

 

 

 

3,434

 

 

 

4,367

 

Lease amendment revenues

 

 

751

 

 

 

1,537

 

 

 

759

 

 

 

3,201

 

 

 

4,696

 

Aggregates royalty revenues

 

 

608

 

 

 

550

 

 

 

884

 

 

 

3,299

 

 

 

1,889

 

Oil and gas royalty revenues

 

 

5,271

 

 

 

1,086

 

 

 

6,170

 

 

 

16,161

 

 

 

4,506

 

Other revenues

 

 

172

 

 

 

241

 

 

 

218

 

 

 

877

 

 

 

933

 

Total other revenues

 

$

19,037

 

 

$

32,780

 

 

$

28,998

 

 

$

80,057

 

 

$

81,107

 

Royalty and other mineral rights

 

$

75,218

 

 

$

70,774

 

 

$

81,379

 

 

$

307,013

 

 

$

185,196

 

Transportation and processing services revenues

 

 

5,695

 

 

 

2,507

 

 

 

5,969

 

 

 

21,072

 

 

 

9,052

 

Gain on asset sales and disposals

 

 

383

 

 

 

2

 

 

 

354

 

 

 

1,082

 

 

 

245

 

Total Mineral Rights segment revenues and other income

 

$

81,296

 

 

$

73,283

 

 

$

87,702

 

 

$

329,167

 

 

$

194,493

 

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

 

Adjusted EBITDA

 

(In thousands)

 

Mineral Rights

 

 

Soda Ash

 

 

Corporate and Financing

 

 

Total

 

For the Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

62,900

 

 

$

15,704

 

 

$

(15,386

)

 

$

63,218

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(15,759

)

 

 

 

 

 

(15,759

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

10,780

 

 

 

 

 

 

10,780

 

Add: interest expense, net

 

 

 

 

 

 

 

 

3,638

 

 

 

3,638

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

3,933

 

 

 

3,933

 

Add: depreciation, depletion and amortization

 

 

5,954

 

 

 

 

 

 

 

 

 

5,954

 

Add: asset impairments

 

 

3,583

 

 

 

 

 

 

 

 

 

3,583

 

Adjusted EBITDA

 

$

72,437

 

 

$

10,725

 

 

$

(7,815

)

 

$

75,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

72,173

 

 

$

14,525

 

 

$

(12,143

)

 

$

74,555

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(14,556

)

 

 

 

 

 

(14,556

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

10,339

 

 

 

 

 

 

10,339

 

Add: interest expense, net

 

 

 

 

 

 

 

 

5,141

 

 

 

5,141

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

2,484

 

 

 

2,484

 

Add: depreciation, depletion and amortization

 

 

6,850

 

 

 

 

 

 

 

 

 

6,850

 

Add: asset impairments

 

 

812

 

 

 

 

 

 

 

 

 

812

 

Adjusted EBITDA

 

$

79,835

 

 

$

10,308

 

 

$

(4,518

)

 

$

85,625

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Adjusted EBITDA

 

(In thousands)

 

Mineral Rights

 

 

Soda Ash

 

 

Corporate and Financing

 

 

Total

 

For the Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

267,448

 

 

$

59,635

 

 

$

(58,591

)

 

$

268,492

 

Less: equity earnings from unconsolidated investment

 

 

 

 

 

(59,795

)

 

 

 

 

 

(59,795

)

Add: total distributions from unconsolidated investment

 

 

 

 

 

44,835

 

 

 

 

 

 

44,835

 

Add: interest expense, net

 

 

 

 

 

 

 

 

26,274

 

 

 

26,274

 

Add: loss on extinguishment of debt

 

 

 

 

 

 

 

 

10,465

 

 

 

10,465

 

Add: depreciation, depletion and amortization

 

 

22,519

 

 

 

 

 

 

 

 

 

22,519

 

Add: asset impairments

 

 

4,457

 

 

 

 

 

 

 

 

 

4,457

 

Adjusted EBITDA

 

$

294,424

 

 

$

44,675

 

 

$

(21,852

)

 

$

317,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

 

Distributable Cash Flow and Free Cash Flow

 

(In thousands)

 

Mineral Rights

 

 

Soda Ash

 

 

Corporate and Financing

 

 

Total

 

For the Three Months Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

68,332

 

 

$

10,738

 

 

$

(10,182

)

 

$

68,888

 

Add: proceeds from asset sales and disposals

 

 

384

 

 

 

 

 

 

 

 

 

384

 

Add: return of long-term contract receivable

 

 

585

 

 

 

 

 

 

 

 

 

585

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

(59

)

 

 

(59

)

Distributable cash flow

 

$

69,301

 

 

$

10,738

 

 

$

(10,241

)

 

$

69,798

 

Less: proceeds from asset sales and disposals

 

 

(384

)

 

 

 

 

 

 

 

 

(384

)

Free cash flow

 

$

68,917

 

 

$

10,738

 

 

$

(10,241

)

 

$

69,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

969

 

 

$

 

 

$

(59

)

 

$

910

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(91,644

)

 

 

(91,644

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Distributable cash flow

 

$

68,428

 

 

$

7,289

 

 

$

(20,015

)

 

$

55,702

 

Less: proceeds from asset sales and disposals

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

75,948

 

 

$

10,309

 

 

$

(3,761

)

 

$

82,496

 

Add: proceeds from asset sales and disposals

 

 

353

 

 

 

 

 

 

 

 

 

353

 

Add: return of long-term contract receivable

 

 

575

 

 

 

 

 

 

 

 

 

575

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

(59

)

 

 

(59

)

Distributable cash flow

 

$

76,876

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,365

 

Less: proceeds from asset sales and disposals

 

 

(353

)

 

 

 

 

 

 

 

 

(353

)

Free cash flow

 

$

76,523

 

 

$

10,309

 

 

$

(3,820

)

 

$

83,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

928

 

 

$

 

 

$

(59

)

 

$

869

 

Net cash used in financing activities

 

 

 

 

 

 

 

 

(81,784

)

 

 

(81,784

)

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

 

(In thousands)

 

Mineral Rights

 

 

Soda Ash

 

 

Corporate and Financing

 

 

Total

 

For the Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

262,807

 

 

$

44,672

 

 

$

(40,641

)

 

$

266,838

 

Add: proceeds from asset sales and disposals

 

 

1,083

 

 

 

 

 

 

 

 

 

1,083

 

Add: return of long-term contract receivable

 

 

1,723

 

 

 

 

 

 

 

 

 

1,723

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

(118

)

 

 

(118

)

Distributable cash flow

 

$

265,613

 

 

$

44,672

 

 

$

(40,759

)

 

$

269,526

 

Less: proceeds from asset sales and disposals

 

 

(1,083

)

 

 

 

 

 

 

 

 

(1,083

)

Less: acquisition costs

 

 

 

 

 

 

 

 

 

 

 

 

Free cash flow

 

$

264,530

 

 

$

44,672

 

 

$

(40,759

)

 

$

268,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

$

2,806

 

 

$

 

 

$

(118

)

 

$

2,688

 

Net cash used in financing activities

 

 

(614

)

 

 

 

 

 

(365,341

)

 

 

(365,955

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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: return of long-term contract receivable

 

 

2,163

 

 

 

 

 

 

 

 

 

2,163

 

Less: maintenance capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Distributable cash flow

 

$

162,257

 

 

$

11,106

 

 

$

(49,147

)

 

$

124,216

 

Less: proceeds from asset sales and disposals

 

 

(249

)

 

 

 

 

 

 

 

 

(249

)

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

)

Cash Flow Cushion

 

 

 

For the Year Ended December 31,

 

(In thousands)

 

2022

 

 

2021

 

Free cash flow

 

$

268,443

 

 

$

122,967

 

Less: mandatory Opco debt repayments

 

 

(39,396

)

 

 

(39,396

)

Less: preferred unit distributions and redemption of PIK units

 

 

(49,579

)

 

 

(15,571

)

Less: common unit distributions

 

 

(34,384

)

 

 

(22,645

)

Less: warrant cash settlement

 

 

 

 

 

(9,183

)

Cash flow cushion

 

$

145,084

 

 

$

36,172

 

Leverage Ratio

 

(In thousands)

 

For the Year

Ended December

31, 2022

 

Adjusted EBITDA

 

$

317,247

 

Debt—at December 31, 2022

 

$

169,087

 

Leverage Ratio

 

0.5x

 

(In thousands)

 

For the Year

Ended December

31, 2021

 

Adjusted EBITDA

 

$

161,354

 

Debt—at December 31, 2021

 

$

438,484

 

Leverage Ratio

 

2.7x

 

 

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