HOUSTON--(BUSINESS WIRE)--Natural Resource Partners L.P. (NYSE:NRP) today reported first quarter 2024 results as follows:
For the Three Months Ended | Last Twelve Months Ended | |||||||
(In thousands) (Unaudited) | March 31, 2024 | |||||||
Net income | $ | 56,213 | $ | 255,373 | ||||
Operating cash flow | 71,499 | 309,577 | ||||||
Free cash flow (1) | 72,146 | 312,081 | ||||||
(1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Highlights:
- Generated $72.1 million of free cash flow in the first quarter of 2024
- Repurchased 1.2 million warrants with $55.7 million in cash and 198,767 common units
- Increased credit facility borrowing capacity $45 million from $155 million to $200 million
- Paid fourth quarter 2023 common unit distribution of $0.75 per unit
- Paid special distribution of $2.44 per common unit to help cover unitholder tax liabilities associated with owning NRP common units in 2023
- In April, repurchased 0.3 million warrants with $10.0 million in cash and 89,059 common units; Zero warrants remain outstanding
"NRP generated $72 million of free cash flow in the first quarter of 2024 and $312 million of free cash flow over the last twelve months," said Craig Nunez, NRP's president and chief operating officer. "NRP has generated more free cash flow over the last two years than during any comparable period in the history of the Partnership. This performance has allowed us to make considerable progress toward our goal of eliminating all our financial obligations. The sum of debt and preferred equity outstanding is down to approximately $260 million, the Partnership is warrant free, and our financial position is solid and improving. While we expect lower prices for coal and soda ash to drive our free cash flow in the coming quarters below the record levels realized in recent years, we expect to continue making steady progress paying down debt and preferred equity. We continue to believe eliminating all our obligations while maintaining common unit distributions to help cover unitholder tax liabilities is the right strategy to maximize intrinsic value and maximize unitholder returns."
NRP announced today that the board of directors of its general partner declared a first quarter 2024 cash distribution of $0.75 per common unit to be paid on May 28, 2024, to unitholders of record on May 21, 2024. In addition, the board declared a $2.15 million cash distribution on NRP's outstanding preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the board of directors. The board of directors considers numerous factors each quarter in determining cash distributions including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability, and the level of cash reserves that the board determines is necessary for future operating and capital needs.
Segment Performance
Mineral Rights
Mineral Rights net income, operating cash flow, and free cash flow for the first quarter of 2024 decreased $8.2 million, $4.1 million, and $4.1 million, respectively, as compared to the prior year period. These decreases were primarily due to lower metallurgical coal prices as compared to the prior year period. Approximately 75% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal in the first quarter of 2024.
Metallurgical and thermal coal prices declined during the first quarter of 2024, significantly lower than the highs seen in 2022, but above historical norms. NRP expects continued price volatility as global softening in steel demand impacts metallurgical prices, and mild weather, high inventory levels, low natural gas prices, and scheduled shutdowns of thermal coal plants should weaken demand for thermal coal. However, limitations on operators' ability to increase production due to limited access to capital, labor shortages, and inflationary pressures should provide some price support for metallurgical and thermal coal for the foreseeable future.
NRP continues to explore carbon neutral revenue opportunities across its large asset portfolio, including the sequestration of carbon dioxide underground and in standing forests, the generation of electricity using geothermal, solar, and wind energy, and lithium production. While the timing and likelihood of additional cash flows from these activities is uncertain, NRP believes its large ownership footprint throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by NRP.
Soda Ash
Soda Ash net income in the first quarter of 2024 decreased $13.7 million as compared to the prior year period due to lower sales prices and volumes primarily driven by new supply from China. Operating cash flow and free cash flow in the first quarter of 2024 improved $3.5 million as compared to the prior year period due to a higher cash distribution received from Sisecam Wyoming in the first quarter of 2024 relating to results in the fourth quarter of 2023.
Global soda ash prices were significantly lower in the first quarter of 2024 as compared to the prior year period primarily due to new supply from China. NRP believes lower international prices will persist throughout the remainder of the year and into next year as the market contends with slower global growth and absorbs the additional supply.
Corporate and Financing
In the first quarter of 2024 Corporate and Financing costs increased $1.1 million and operating cash flow and free cash flow decreased $0.8 million as compared to the prior year period primarily due to higher interest expense and cash paid for interest in the first quarter of 2024 due to increased borrowings outstanding on the credit facility used for warrant settlements.
NRP repurchased 1.2 million warrants for $55.7 million in cash and 198,767 common units during the first quarter of 2024. In April of 2024, NRP repurchased the remainder of the outstanding 0.3 million warrants for $10.0 million in cash and 89,059 common units. NRP has now retired all 4.0 million of its previously issued warrants.
In February 2024, NRP declared and paid a fourth quarter 2023 cash distribution of $0.75 per common unit and a $2.15 million cash distribution on its preferred units. In March 2024, NRP declared and paid a special distribution of $2.44 per common unit to help cover the tax liability associated with owning NRP units in 2023. Today, NRP declared a first quarter 2024 cash distribution of $0.75 per common unit and a $2.15 million cash distribution on its outstanding preferred units.
NRP increased its revolving credit facility borrowing capacity by $45 million to $200 million in the first quarter of 2024. NRP's available liquidity was $64.8 million at March 31, 2024, consisting of $11.0 million of cash and $53.8 million of borrowing capacity available under its revolving credit facility.
NRP's consolidated leverage ratio was 0.6x at March 31, 2024.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link: https://registrations.events/direct/Q4I890960. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full conference call we suggest registering at minimum 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP's website.
Withholding Information for Foreign Investors
Concurrent with this announcement, we are providing qualified notice to brokers and nominees that hold NRP units on behalf of non-U.S. investors under Treasury Regulation Section 1.1446-4(b) and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Brokers and nominees should treat one hundred percent (100%) of NRP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. In addition, brokers and nominees should treat one hundred percent (100%) of the distribution as being in excess of cumulative net income for purposes of determining the amount to withhold. Accordingly, NRP's distributions to non-U.S. investors are subject to federal income tax withholding at a rate equal to the sum of the highest applicable rate plus ten percent (10%).
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. NRP also owns an equity investment in Sisecam Wyoming LLC, one of the world's lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These risks include, among other things, statements regarding: future distributions on the Partnership's common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees; Sisecam Wyoming LLC's trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.
"Distributable cash flow" or "DCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.
"Free cash flow" or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures and cash flow used in acquisition costs classified as investing or financing activities. FCF is calculated before mandatory debt repayments. Free cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. Free cash flow may not be calculated the same for us as for other companies. Free cash flow is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.
"Leverage ratio" represents the outstanding principal of NRP's debt at the end of the period divided by the last twelve months' Adjusted EBITDA as defined above. NRP believes that leverage ratio is a useful measure to management and investors to evaluate and monitor the indebtedness of NRP relative to its ability to generate income to service such debt and in understanding trends in NRP's overall financial condition. Leverage ratio may not be calculated the same for NRP as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios.
-Financial Tables and Reconciliation of Non-GAAP Measures Follow-
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of Comprehensive Income | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
(In thousands, except per unit data) | 2024 | 2023 | 2023 | |||||||||
Revenues and other income | ||||||||||||
Royalty and other mineral rights | $ | 67,372 | $ | 76,271 | $ | 72,922 | ||||||
Transportation and processing services | 3,427 | 3,598 | 3,476 | |||||||||
Equity in earnings of Sisecam Wyoming | 5,450 | 19,254 | 14,764 | |||||||||
Gain on asset sales and disposals | 165 | 96 | 2,001 | |||||||||
Total revenues and other income | $ | 76,414 | $ | 99,219 | $ | 93,163 | ||||||
Operating expenses | ||||||||||||
Operating and maintenance expenses | $ | 5,733 | $ | 7,163 | $ | 8,864 | ||||||
Depreciation, depletion and amortization | 4,654 | 4,083 | 6,020 | |||||||||
General and administrative expenses | 6,327 | 5,845 | 8,954 | |||||||||
Asset impairments | - | - | 424 | |||||||||
Total operating expenses | $ | 16,714 | $ | 17,091 | $ | 24,262 | ||||||
Income from operations | $ | 59,700 | $ | 82,128 | $ | 68,901 | ||||||
Interest expense, net | $ | (3,487 | ) | $ | (2,853 | ) | $ | (3,921 | ) | |||
Net income | $ | 56,213 | $ | 79,275 | $ | 64,980 | ||||||
Less: income attributable to preferred unitholders | (2,150 | ) | (6,661 | ) | (2,151 | ) | ||||||
Less: redemption of preferred units | - | (16,228 | ) | - | ||||||||
Net income attributable to common unitholders and the general partner | $ | 54,063 | $ | 56,386 | $ | 62,829 | ||||||
Net income attributable to common unitholders | $ | 52,982 | $ | 55,258 | $ | 61,572 | ||||||
Net income attributable to the general partner | 1,081 | 1,128 | 1,257 | |||||||||
Net income per common unit | ||||||||||||
Basic | $ | 4.13 | $ | 4.40 | $ | 4.87 | ||||||
Diluted | 3.83 | 3.44 | 4.31 | |||||||||
Net income | $ | 56,213 | $ | 79,275 | $ | 64,980 | ||||||
Comprehensive income (loss) from unconsolidated investment and other | 845 | (19,583 | ) | (5,367 | ) | |||||||
Comprehensive income | $ | 57,058 | $ | 59,692 | $ | 59,613 | ||||||
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of Cash Flows | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
(In thousands) | 2024 | 2023 | 2023 | |||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 56,213 | $ | 79,275 | $ | 64,980 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation, depletion and amortization | 4,654 | 4,083 | 6,020 | |||||||||
Distributions from unconsolidated investment | 14,210 | 10,780 | 15,338 | |||||||||
Equity earnings from unconsolidated investment | (5,450 | ) | (19,254 | ) | (14,764 | ) | ||||||
Gain on asset sales and disposals | (165 | ) | (96 | ) | (2,001 | ) | ||||||
Asset impairments | - | - | 424 | |||||||||
Bad debt expense | (813 | ) | (610 | ) | 1,431 | |||||||
Unit-based compensation expense | 2,964 | 2,491 | 3,007 | |||||||||
Amortization of debt issuance costs and other | (749 | ) | 25 | 260 | ||||||||
Change in operating assets and liabilities: | ||||||||||||
Accounts receivable | 9,433 | 7,061 | (4,254 | ) | ||||||||
Accounts payable | 629 | (541 | ) | (258 | ) | |||||||
Accrued liabilities | (8,225 | ) | (8,805 | ) | 6,063 | |||||||
Accrued interest | 412 | 263 | (641 | ) | ||||||||
Deferred revenue | 1,028 | (154 | ) | 1,480 | ||||||||
Other items, net | (2,642 | ) | (1,618 | ) | 701 | |||||||
Net cash provided by operating activities | $ | 71,499 | $ | 72,900 | $ | 77,786 | ||||||
Cash flows from investing activities | ||||||||||||
Proceeds from asset sales and disposals | $ | 165 | $ | 101 | $ | 2,002 | ||||||
Return of long-term contract receivable | 647 | 598 | 633 | |||||||||
Capital expenditures | - | (2 | ) | - | ||||||||
Net cash provided by investing activities | $ | 812 | $ | 697 | $ | 2,635 | ||||||
Cash flows from financing activities | ||||||||||||
Debt borrowings | $ | 89,357 | $ | 94,200 | $ | 33,800 | ||||||
Debt repayments | (55,696 | ) | (89,696 | ) | (86,335 | ) | ||||||
Distributions to common unitholders and the general partner | (42,186 | ) | (40,900 | ) | (9,670 | ) | ||||||
Distributions to preferred unitholders | (2,150 | ) | (8,086 | ) | (2,150 | ) | ||||||
Redemption of preferred units | - | (47,499 | ) | - | ||||||||
Warrant settlements | (55,689 | ) | - | (22,481 | ) | |||||||
Other items, net | (6,946 | ) | (3,052 | ) | (7 | ) | ||||||
Net cash used in financing activities | $ | (73,310 | ) | $ | (95,033 | ) | $ | (86,843 | ) | |||
Net decrease in cash and cash equivalents | $ | (999 | ) | $ | (21,436 | ) | $ | (6,422 | ) | |||
Cash and cash equivalents at beginning of period | 11,989 | 39,091 | 18,411 | |||||||||
Cash and cash equivalents at end of period | $ | 10,990 | $ | 17,655 | $ | 11,989 | ||||||
Supplemental cash flow information: | ||||||||||||
Cash paid for interest | $ | 2,843 | $ | 2,474 | $ | 4,372 | ||||||
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Balance Sheets | ||||||||
March 31, | December 31, | |||||||
2024 | 2023 | |||||||
(In thousands, except unit data) | (Unaudited) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 10,990 | $ | 11,989 | ||||
Accounts receivable, net | 33,874 | 41,086 | ||||||
Other current assets, net | 3,494 | 2,218 | ||||||
Total current assets | $ | 48,358 | $ | 55,293 | ||||
Land | 24,008 | 24,008 | ||||||
Mineral rights, net | 390,176 | 394,483 | ||||||
Intangible assets, net | 13,340 | 13,682 | ||||||
Equity in unconsolidated investment | 268,634 | 276,549 | ||||||
Long-term contract receivable, net | 25,632 | 26,321 | ||||||
Other long-term assets, net | 8,034 | 7,540 | ||||||
Total assets | $ | 778,182 | $ | 797,876 | ||||
LIABILITIES AND CAPITAL | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 1,514 | $ | 885 | ||||
Accrued liabilities | 5,064 | 12,987 | ||||||
Accrued interest | 995 | 584 | ||||||
Current portion of deferred revenue | 5,635 | 4,599 | ||||||
Current portion of long-term debt, net | 14,202 | 30,785 | ||||||
Total current liabilities | $ | 27,410 | $ | 49,840 | ||||
Deferred revenue | 38,348 | 38,356 | ||||||
Long-term debt, net | 174,595 | 124,273 | ||||||
Other non-current liabilities | 6,305 | 7,172 | ||||||
Total liabilities | $ | 246,658 | $ | 219,641 | ||||
Commitments and contingencies | ||||||||
Class A Convertible Preferred Units (71,666 units issued and outstanding at March 31, 2024 and December 31, 2023 at $1,000 par value per unit; liquidation preference of $1,850 per unit at March 31, 2024 and December 31, 2023) | $ | 47,181 | $ | 47,181 | ||||
Partners' capital | ||||||||
Common unitholders' interest (12,960,064 and 12,634,642 units issued and outstanding at March 31, 2024 and December 31, 2023, respectively) | $ | 474,095 | $ | 503,076 | ||||
General partner's interest | 7,721 | 8,005 | ||||||
Warrant holders' interest | 4,804 | 23,095 | ||||||
Accumulated other comprehensive loss | (2,277 | ) | (3,122 | ) | ||||
Total partners' capital | $ | 484,343 | $ | 531,054 | ||||
Total liabilities and partners' capital | $ | 778,182 | $ | 797,876 | ||||
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Consolidated Statements of Partners' Capital |
Accumulated | ||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||
Common Unitholders | General | Warrant | Comprehensive | Partners' | ||||||||||||||||||||
(In thousands) | Units | Amounts | Partner | Holders | Loss | Capital | ||||||||||||||||||
Balance at December 31, 2023 | 12,635 | $ | 503,076 | $ | 8,005 | $ | 23,095 | $ | (3,122 | ) | $ | 531,054 | ||||||||||||
Net income (1) | - | 55,089 | 1,124 | - | - | 56,213 | ||||||||||||||||||
Distributions to common unitholders and the general partner | - | (41,342 | ) | (844 | ) | - | - | (42,186 | ) | |||||||||||||||
Distributions to preferred unitholders | - | (2,107 | ) | (43 | ) | - | - | (2,150 | ) | |||||||||||||||
Issuance of unit-based awards | 126 | - | - | - | - | - | ||||||||||||||||||
Unit-based awards amortization and vesting, net | - | (3,971 | ) | - | - | - | (3,971 | ) | ||||||||||||||||
Capital contribution | - | - | 227 | - | - | 227 | ||||||||||||||||||
Warrant settlements | 199 | (36,650 | ) | (748 | ) | (18,291 | ) | - | (55,689 | ) | ||||||||||||||
Comprehensive income from unconsolidated investment and other | - | - | - | - | 845 | 845 | ||||||||||||||||||
Balance at March 31, 2024 | 12,960 | $ | 474,095 | $ | 7,721 | $ | 4,804 | $ | (2,277 | ) | $ | 484,343 | ||||||||||||
(1) | Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner. |
Accumulated | ||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||
Common Unitholders | General | Warrant | Comprehensive | Partners' | ||||||||||||||||||||
(In thousands) | Units | Amounts | Partner | Holders | Income (Loss) | Capital | ||||||||||||||||||
Balance at December 31, 2022 | 12,506 | $ | 404,799 | $ | 5,977 | $ | 47,964 | $ | 18,717 | $ | 477,457 | |||||||||||||
Net income (1) | - | 77,690 | 1,585 | - | - | 79,275 | ||||||||||||||||||
Redemption of preferred units | - | (15,904 | ) | (324 | ) | - | - | (16,228 | ) | |||||||||||||||
Distributions to common unitholders and the general partner | - | (40,082 | ) | (818 | ) | - | - | (40,900 | ) | |||||||||||||||
Distributions to preferred unitholders | - | (7,924 | ) | (162 | ) | - | - | (8,086 | ) | |||||||||||||||
Issuance of unit-based awards | 129 | - | - | - | - | - | ||||||||||||||||||
Unit-based awards amortization and vesting, net | - | (1,178 | ) | - | - | - | (1,178 | ) | ||||||||||||||||
Capital contribution | - | - | 142 | - | - | 142 | ||||||||||||||||||
Comprehensive loss from unconsolidated investment and other | - | - | - | - | (19,583 | ) | (19,583 | ) | ||||||||||||||||
Balance at March 31, 2023 | 12,635 | $ | 417,401 | $ | 6,400 | $ | 47,964 | $ | (866 | ) | $ | 470,899 | ||||||||||||
(1) | Net income includes $6.66 million of income attributable to preferred unitholders that accumulated during the period, of which $6.53 million is allocated to the common unitholders and $0.13 million is allocated to the general partner. |
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
The following table presents NRP's unaudited business results by segment for the three months ended March 31, 2024 and 2023 and December 31, 2023:
Operating Segments | ||||||||||||||||
Mineral | Corporate and | |||||||||||||||
(In thousands) | Rights | Soda Ash | Financing | Total | ||||||||||||
For the Three Months Ended March 31, 2024 | ||||||||||||||||
Revenues | $ | 70,799 | $ | 5,450 | $ | - | $ | 76,249 | ||||||||
Gain on asset sales and disposals | 165 | - | - | 165 | ||||||||||||
Total revenues and other income | $ | 70,964 | $ | 5,450 | $ | - | $ | 76,414 | ||||||||
Asset impairments | $ | - | $ | - | $ | - | $ | - | ||||||||
Net income (loss) | $ | 60,644 | $ | 5,388 | $ | (9,819 | ) | $ | 56,213 | |||||||
Adjusted EBITDA (1) | $ | 65,293 | $ | 14,148 | $ | (6,327 | ) | $ | 73,114 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 69,749 | $ | 14,148 | $ | (12,398 | ) | $ | 71,499 | |||||||
Investing activities | $ | 812 | $ | - | $ | - | $ | 812 | ||||||||
Financing activities | $ | (1,086 | ) | $ | - | $ | (72,224 | ) | $ | (73,310 | ) | |||||
Distributable cash flow (1) | $ | 70,561 | $ | 14,148 | $ | (12,398 | ) | $ | 72,311 | |||||||
Free cash flow (1) | $ | 70,396 | $ | 14,148 | $ | (12,398 | ) | $ | 72,146 | |||||||
For the Three Months Ended March 31, 2023 | ||||||||||||||||
Revenues | $ | 79,869 | $ | 19,254 | $ | - | $ | 99,123 | ||||||||
Gain on asset sales and disposals | 96 | - | - | 96 | ||||||||||||
Total revenues and other income | $ | 79,965 | $ | 19,254 | $ | - | $ | 99,219 | ||||||||
Asset impairments | $ | - | $ | - | $ | - | $ | - | ||||||||
Net income (loss) | $ | 68,881 | $ | 19,096 | $ | (8,702 | ) | $ | 79,275 | |||||||
Adjusted EBITDA (1) | $ | 72,960 | $ | 10,622 | $ | (5,845 | ) | $ | 77,737 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 73,858 | $ | 10,617 | $ | (11,575 | ) | $ | 72,900 | |||||||
Investing activities | $ | 699 | $ | - | $ | (2 | ) | $ | 697 | |||||||
Financing activities | $ | (583 | ) | $ | - | $ | (94,450 | ) | $ | (95,033 | ) | |||||
Distributable cash flow (1) | $ | 74,557 | $ | 10,617 | $ | (11,577 | ) | $ | 73,597 | |||||||
Free cash flow (1) | $ | 74,456 | $ | 10,617 | $ | (11,577 | ) | $ | 73,496 | |||||||
For the Three Months Ended December 31, 2023 | ||||||||||||||||
Revenues | $ | 76,398 | $ | 14,764 | $ | - | $ | 91,162 | ||||||||
Gain on asset sales and disposals | 2,001 | - | - | 2,001 | ||||||||||||
Total revenues and other income | $ | 78,399 | $ | 14,764 | $ | - | $ | 93,163 | ||||||||
Asset impairments | $ | 424 | $ | - | $ | - | $ | 424 | ||||||||
Net income (loss) | $ | 63,127 | $ | 14,732 | $ | (12,879 | ) | $ | 64,980 | |||||||
Adjusted EBITDA (1) | $ | 69,567 | $ | 15,306 | $ | (8,954 | ) | $ | 75,919 | |||||||
Cash flow provided by (used in) continuing operations: | ||||||||||||||||
Operating activities | $ | 70,147 | $ | 15,306 | $ | (7,667 | ) | $ | 77,786 | |||||||
Investing activities | $ | 2,635 | $ | - | $ | - | $ | 2,635 | ||||||||
Financing activities | $ | - | $ | - | $ | (86,843 | ) | $ | (86,843 | ) | ||||||
Distributable cash flow (1) | $ | 72,782 | $ | 15,306 | $ | (7,667 | ) | $ | 80,421 | |||||||
Free cash flow (1) | $ | 70,780 | $ | 15,306 | $ | (7,667 | ) | $ | 78,419 | |||||||
(1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. | |
Natural Resource Partners L.P.
Financial Tables
(Unaudited)
Operating Statistics - Mineral Rights |
For the Three Months Ended | ||||||||||||
March 31, | December 31, | |||||||||||
(In thousands, except per ton data) | 2024 | 2023 | 2023 | |||||||||
Coal sales volumes (tons) | ||||||||||||
Appalachia | ||||||||||||
Northern | 117 | 379 | 92 | |||||||||
Central | 3,714 | 3,609 | 3,537 | |||||||||
Southern | 570 | 582 | 654 | |||||||||
Total Appalachia | 4,401 | 4,570 | 4,283 | |||||||||
Illinois Basin | 2,033 | 1,310 | 2,637 | |||||||||
Northern Powder River Basin | 949 | 1,085 | 1,259 | |||||||||
Gulf Coast | 265 | 58 | 801 | |||||||||
Total coal sales volumes | 7,648 | 7,023 | 8,980 | |||||||||
Coal royalty revenue per ton | ||||||||||||
Appalachia | ||||||||||||
Northern | $ | 1.86 | $ | 9.86 | $ | 2.18 | ||||||
Central | 8.08 | 9.92 | 9.12 | |||||||||
Southern | 11.58 | 14.94 | 14.04 | |||||||||
Illinois Basin | 2.56 | 3.57 | 3.57 | |||||||||
Northern Powder River Basin | 4.85 | 4.68 | 3.89 | |||||||||
Gulf Coast | 0.75 | 0.57 | 0.63 | |||||||||
Combined average coal royalty revenue per ton | 6.12 | 8.26 | 6.29 | |||||||||
Coal royalty revenues | ||||||||||||
Appalachia | ||||||||||||
Northern | $ | 218 | $ | 3,737 | $ | 201 | ||||||
Central | 29,992 | 35,806 | 32,269 | |||||||||
Southern | 6,602 | 8,697 | 9,181 | |||||||||
Total Appalachia | 36,812 | 48,240 | 41,651 | |||||||||
Illinois Basin | 5,211 | 4,675 | 9,426 | |||||||||
Northern Powder River Basin | 4,599 | 5,075 | 4,898 | |||||||||
Gulf Coast | 200 | 33 | 508 | |||||||||
Unadjusted coal royalty revenues | 46,822 | 58,023 | 56,483 | |||||||||
Coal royalty adjustment for minimum leases | (4 | ) | - | 1 | ||||||||
Total coal royalty revenues | $ | 46,818 | $ | 58,023 | $ | 56,484 | ||||||
Other revenues | ||||||||||||
Production lease minimum revenues | $ | 924 | $ | 613 | $ | 1,297 | ||||||
Minimum lease straight-line revenues | 4,171 | 4,503 | 5,975 | |||||||||
Carbon neutral initiative revenues | 2,161 | 2,118 | 55 | |||||||||
Wheelage revenues | 2,672 | 3,869 | 2,653 | |||||||||
Property tax revenues | 1,892 | 1,470 | 1,509 | |||||||||
Coal overriding royalty revenues | 1,169 | 188 | 1,010 | |||||||||
Lease amendment revenues | 702 | 851 | 748 | |||||||||
Aggregates royalty revenues | 772 | 753 | 701 | |||||||||
Oil and gas royalty revenues | 3,640 | 3,588 | 2,261 | |||||||||
Other revenues | 2,451 | 295 | 229 | |||||||||
Total other revenues | $ | 20,554 | $ | 18,248 | $ | 16,438 | ||||||
Royalty and other mineral rights | $ | 67,372 | $ | 76,271 | $ | 72,922 | ||||||
Transportation and processing services revenues | 3,427 | 3,598 | 3,476 | |||||||||
Gain on asset sales and disposals | 165 | 96 | 2,001 | |||||||||
Total Mineral Rights segment revenues and other income | $ | 70,964 | $ | 79,965 | $ | 78,399 | ||||||
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)
Adjusted EBITDA |
Mineral | Corporate and | |||||||||||||||
(In thousands) | Rights | Soda Ash | Financing | Total | ||||||||||||
For the Three Months Ended March 31, 2024 | ||||||||||||||||
Net income (loss) | $ | 60,644 | $ | 5,388 | $ | (9,819 | ) | $ | 56,213 | |||||||
Less: equity earnings from unconsolidated investment | - | (5,450 | ) | - | (5,450 | ) | ||||||||||
Add: total distributions from unconsolidated investment | - | 14,210 | - | 14,210 | ||||||||||||
Add: interest expense, net | - | - | 3,487 | 3,487 | ||||||||||||
Add: depreciation, depletion and amortization | 4,649 | - | 5 | 4,654 | ||||||||||||
Add: asset impairments | - | - | - | - | ||||||||||||
Adjusted EBITDA | $ | 65,293 | $ | 14,148 | $ | (6,327 | ) | $ | 73,114 | |||||||
For the Three Months Ended March 31, 2023 | ||||||||||||||||
Net income (loss) | $ | 68,881 | $ | 19,096 | $ | (8,702 | ) | $ | 79,275 | |||||||
Less: equity earnings from unconsolidated investment | - | (19,254 | ) | - | (19,254 | ) | ||||||||||
Add: total distributions from unconsolidated investment | - | 10,780 | - | 10,780 | ||||||||||||
Add: interest expense, net | - | - | 2,853 | 2,853 | ||||||||||||
Add: depreciation, depletion and amortization | 4,079 | - | 4 | 4,083 | ||||||||||||
Add: asset impairments | - | - | - | - | ||||||||||||
Adjusted EBITDA | $ | 72,960 | $ | 10,622 | $ | (5,845 | ) | $ | 77,737 | |||||||
For the Three Months Ended December 31, 2023 | ||||||||||||||||
Net income (loss) | $ | 63,127 | $ | 14,732 | $ | (12,879 | ) | $ | 64,980 | |||||||
Less: equity earnings from unconsolidated investment | - | (14,764 | ) | - | (14,764 | ) | ||||||||||
Add: total distributions from unconsolidated investment | - | 15,338 | - | 15,338 | ||||||||||||
Add: interest expense, net | - | - | 3,921 | 3,921 | ||||||||||||
Add: depreciation, depletion and amortization | 6,016 | - | 4 | 6,020 | ||||||||||||
Add: asset impairments | 424 | - | - | 424 | ||||||||||||
Adjusted EBITDA | $ | 69,567 | $ | 15,306 | $ | (8,954 | ) | $ | 75,919 | |||||||
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)
Distributable Cash Flow and Free Cash Flow |
Mineral | Corporate and | |||||||||||||||
(In thousands) | Rights | Soda Ash | Financing | Total | ||||||||||||
For the Three Months Ended March 31, 2024 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 69,749 | $ | 14,148 | $ | (12,398 | ) | $ | 71,499 | |||||||
Add: proceeds from asset sales and disposals | 165 | - | - | 165 | ||||||||||||
Add: return of long-term contract receivable | 647 | - | - | 647 | ||||||||||||
Less: maintenance capital expenditures | - | - | - | - | ||||||||||||
Distributable cash flow | $ | 70,561 | $ | 14,148 | $ | (12,398 | ) | $ | 72,311 | |||||||
Less: proceeds from asset sales and disposals | (165 | ) | - | - | (165 | ) | ||||||||||
Free cash flow | $ | 70,396 | $ | 14,148 | $ | (12,398 | ) | $ | 72,146 | |||||||
Net cash provided by investing activities | $ | 812 | $ | - | $ | - | $ | 812 | ||||||||
Net cash used in financing activities | $ | (1,086 | ) | $ | - | $ | (72,224 | ) | $ | (73,310 | ) | |||||
For the Three Months Ended March 31, 2023 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 73,858 | $ | 10,617 | $ | (11,575 | ) | $ | 72,900 | |||||||
Add: proceeds from asset sales and disposals | 101 | - | - | 101 | ||||||||||||
Add: return of long-term contract receivable | 598 | - | - | 598 | ||||||||||||
Less: maintenance capital expenditures | - | - | (2 | ) | (2 | ) | ||||||||||
Distributable cash flow | $ | 74,557 | $ | 10,617 | $ | (11,577 | ) | $ | 73,597 | |||||||
Less: proceeds from asset sales and disposals | (101 | ) | - | - | (101 | ) | ||||||||||
Free cash flow | $ | 74,456 | $ | 10,617 | $ | (11,577 | ) | $ | 73,496 | |||||||
Net cash provided by (used in) investing activities | $ | 699 | $ | - | $ | (2 | ) | $ | 697 | |||||||
Net cash used in financing activities | $ | (583 | ) | $ | - | $ | (94,450 | ) | $ | (95,033 | ) | |||||
For the Three Months Ended December 31, 2023 | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | 70,147 | $ | 15,306 | $ | (7,667 | ) | $ | 77,786 | |||||||
Add: proceeds from asset sales and disposals | 2,002 | - | - | 2,002 | ||||||||||||
Add: return of long-term contract receivable | 633 | - | - | 633 | ||||||||||||
Less: maintenance capital expenditures | - | - | - | - | ||||||||||||
Distributable cash flow | $ | 72,782 | $ | 15,306 | $ | (7,667 | ) | $ | 80,421 | |||||||
Less: proceeds from asset sales and disposals | (2,002 | ) | - | - | (2,002 | ) | ||||||||||
Free cash flow | $ | 70,780 | $ | 15,306 | $ | (7,667 | ) | $ | 78,419 | |||||||
Net cash provided by investing activities | $ | 2,635 | $ | - | $ | - | $ | 2,635 | ||||||||
Net cash used in financing activities | $ | - | $ | - | $ | (86,843 | ) | $ | (86,843 | ) | ||||||
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
(Unaudited)
Last Twelve Months (LTM) Free Cash Flow |
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | Last 12 Months | |||||||||||||||
Net cash provided by operating activities | $ | 81,350 | $ | 78,942 | $ | 77,786 | $ | 71,499 | $ | 309,577 | ||||||||||
Add: proceeds from asset sales and disposals | 5 | 855 | 2,002 | 165 | 3,027 | |||||||||||||||
Add: return of long-term contract receivable | 610 | 622 | 633 | 647 | 2,512 | |||||||||||||||
Less: maintenance capital expenditures | (8 | ) | - | - | - | (8 | ) | |||||||||||||
Distributable cash flow | $ | 81,957 | $ | 80,419 | $ | 80,421 | $ | 72,311 | $ | 315,108 | ||||||||||
Less: proceeds from asset sales and disposals | (5 | ) | (855 | ) | (2,002 | ) | (165 | ) | (3,027 | ) | ||||||||||
Free cash flow | $ | 81,952 | $ | 79,564 | $ | 78,419 | $ | 72,146 | $ | 312,081 | ||||||||||
Leverage Ratio |
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | Last 12 Months | |||||||||||||||
Net income | $ | 70,334 | $ | 63,846 | $ | 64,980 | $ | 56,213 | $ | 255,373 | ||||||||||
Less: equity earnings from unconsolidated investment | (26,978 | ) | (12,401 | ) | (14,764 | ) | (5,450 | ) | (59,593 | ) | ||||||||||
Add: total distributions from unconsolidated investment | 32,350 | 23,010 | 15,338 | 14,210 | 84,908 | |||||||||||||||
Add: interest expense, net | 3,492 | 3,837 | 3,921 | 3,487 | 14,737 | |||||||||||||||
Add: depreciation, depletion and amortization | 3,792 | 4,594 | 6,020 | 4,654 | 19,060 | |||||||||||||||
Add: asset impairments | 69 | 63 | 424 | - | 556 | |||||||||||||||
Adjusted EBITDA | $ | 83,059 | $ | 82,949 | $ | 75,919 | $ | 73,114 | $ | 315,041 | ||||||||||
Debt-at March 31, 2024 | $ | 189,185 | ||||||||||||||||||
Leverage Ratio | 0.6 x | |||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
(In thousands) | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | Last 12 Months | |||||||||||||||
Net income | $ | 66,820 | $ | 74,555 | $ | 63,218 | $ | 79,275 | $ | 283,868 | ||||||||||
Less: equity earnings from unconsolidated investment | (14,643 | ) | (14,556 | ) | (15,759 | ) | (19,254 | ) | (64,212 | ) | ||||||||||
Add: total distributions from unconsolidated investment | 10,486 | 10,339 | 10,780 | 10,780 | 42,385 | |||||||||||||||
Add: interest expense, net | 8,108 | 5,141 | 3,638 | 2,853 | 19,740 | |||||||||||||||
Add: loss on extinguishment of debt | 4,048 | 2,484 | 3,933 | - | 10,465 | |||||||||||||||
Add: depreciation, depletion and amortization | 5,847 | 6,850 | 5,954 | 4,083 | 22,734 | |||||||||||||||
Add: asset impairments | 43 | 812 | 3,583 | - | 4,438 | |||||||||||||||
Adjusted EBITDA | $ | 80,709 | $ | 85,625 | $ | 75,347 | $ | 77,737 | $ | 319,418 | ||||||||||
Debt-at March 31, 2023 | $ | 173,591 | ||||||||||||||||||
Leverage Ratio | 0.5 x | |||||||||||||||||||
Contacts
Tiffany Sammis
Investor Relations
713.751.7515
tsammis@nrplp.com
