HOUSTON, Oct. 26, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today announced that the Board of Directors of its general partner declared a third quarter 2017 distribution of $0.45 per unit for NRP. The distribution will be paid on November 14, 2017 to unitholders of record on November 7, 2017.
In addition, the Board declared a third quarter distribution on NRP's 12.0% Class A Convertible Preferred Units. One-half of the distribution on the preferred units will be paid-in-kind through the issuance of 3,825 additional preferred units.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns a construction aggregates company.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
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SOURCE Natural Resource Partners L.P.
HOUSTON, Aug. 8, 2017 /PRNewswire/ --
Second Quarter 2017 Highlights
Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter of 2017 net income of $50.0 million, net income attributable to the common unitholders and general partner of $42.4 million, net cash from operating activities of $34.9 million, and adjusted EBITDA of $62.7 million. These results were impacted by a fair value adjustment on warrant liability, costs associated with recapitalization expenses, gains on asset sales and non-cash revenue from lease modifications and terminations as illustrated in the tables included in this release. Adjusting for these items, net income attributable to the common unitholders and general partner for the second quarter of 2017 was $18.4 million(2).
Three Months Ended | ||||||||||||
June 30, |
March 31, | |||||||||||
2017 |
2016 |
2017 | ||||||||||
(In thousands) | ||||||||||||
Net income |
$ |
49,950 |
$ |
46,446 |
$ |
16,764 |
||||||
Less: income attributable to preferred unitholders |
(7,538) |
— |
(2,500) |
|||||||||
Net income attributable to common unitholders and general partner |
$ |
42,412 |
$ |
46,446 |
$ |
14,264 |
||||||
Less: Fair value adjustments for warrant liabilities |
(23,960) |
— |
(16,569) |
|||||||||
Plus: Recapitalization transaction expenses |
4,239 |
— |
17,363 |
|||||||||
Plus: Asset impairments |
— |
91 |
1,778 |
|||||||||
Less: Non-cash revenue from lease modifications and terminations |
(972) |
(35,451) |
(290) |
|||||||||
Less: (Gain) loss on asset sales |
(3,361) |
1,071 |
(44) |
|||||||||
Adjusted net income attributable to the common unitholders and general partner |
$ |
18,358 |
$ |
12,157 |
$ |
16,502 |
||||||
Net cash provided by operating activities |
$ |
34,858 |
$ |
17,801 |
$ |
20,205 |
(1) |
Diluted net income per common unit assumes the conversion of NRP's preferred units into common units and net settlement of warrants in exchange for common units even though NRP has the ability to redeem the Preferred Units and net settle the Warrants for cash. |
(2) |
Reconciliations for all non-GAAP items are shown in the table above or in the tables at the end of this release. |
During the second quarter, we continued to execute on our deleveraging strategy, reducing our total outstanding debt by an additional $98.1 million, bringing our total debt reduction since December 31, 2016 to $244.1 million. Continued strong metallurgical coal markets, steady distributions from our soda ash business, and improved sequential performance from our construction aggregates segment all combined to generate improved cash flow for NRP.
Segment Information and Outlook
Coal Royalty and Other
NRP derived approximately 60% of the coal royalty revenues and approximately 45% of the related production from metallurgical coal during the six months ended June 30, 2017. NRP continued to benefit from higher metallurgical coal prices compared to 2016, with substantially increased price realizations in Central and Southern Appalachia. While metallurgical coal prices have retreated in 2017 from the peaks reached in the fourth quarter of 2016 and early in the second quarter of 2017, they remained significantly higher than in the comparable period in 2016. Notably, very few tons were sold at the peak of the market, as buyers generally elected to stay out of the market anticipating a short-term price spike. Most recently, met coal prices have increased approximately $20 per metric ton since mid-June as a result of global supply disruptions and increased imports into China.
Thermal coal prices have also improved over the prior year as inventories have come down significantly, in part due to production cuts over the last two years. Normal summer weather and natural gas prices that continue to remain around $3/mcf have combined to reduce inventories at the end of May to approximately 100 days of supply, down from over 130 days of supply at the end of May 2016.
Coal royalty and other revenue for the second quarter 2017 was $52.8 million and coal royalty and other operating income was $42.1 million, representing sequential increases of 3% and 20% respectively. Compared to the same period of 2016, coal royalty and other revenue and coal royalty and other operating income both declined 31%. After adjusting for impairment charges, gains on asset sales and the $35.5 million of non-cash revenues related to lease modifications and terminations recognized in the second quarter of 2016, coal royalty and other revenue increased $6.6 million, or 16%, and coal royalty and other operating income increased $11.1 million, or 41%.
Soda Ash
During the second quarter, international prices for soda ash, particularly in Asia, continued to be strong, and domestic prices have improved slightly over last year. Revenues and other income related to our equity investment in Ciner Wyoming decreased $1.8 million, or 18%, from $10.2 million in the three months ended June 30, 2016 to $8.4 million in the three months ended June 30, 2017. This variance was primarily driven by lower production output and higher maintenance expenses compared to the prior period. NRP received $12.25 million in cash distributions from Ciner Wyoming in the second quarter of 2017 compared to $9.8 million in 2016.
Construction Aggregates
Revenues and net income for the second quarter 2017 increased significantly over the first quarter of 2017, due to increased activity at all locations as weather conditions improved. Second quarter 2017 revenue and other income rose $2.1 million over the second quarter 2016 to $33.7 million while net income declined $0.8 million to $2.6 million. Although production and revenues increased on a consolidated basis compared to the same period in 2016, weaker pricing due to diminished natural gas drilling in the Marcellus and the lack of infrastructure spending in West Virginia, as well as cutbacks in military spending in the Clarksville market, resulted in lower margins and earnings at those operations. In addition, the Southern Aggregates operation experienced significant rainfall in the second quarter, but the Louisiana market has improved significantly over the course of the summer.
The table below presents NRP's business results by segment for the three months ended June 30, 2017 and June 30, 2016:
Operating Business Segments |
||||||||||||||||||||
Coal Royalty and Other |
Construction Aggregates |
Corporate and Financing |
||||||||||||||||||
Soda Ash |
Total | |||||||||||||||||||
($ In thousands) | ||||||||||||||||||||
Three Months Ended June 30, 2017 |
||||||||||||||||||||
Revenues and other income |
$ |
49,626 |
$ |
8,389 |
$ |
33,555 |
$ |
— |
$ |
91,570 |
||||||||||
Gains on asset sales |
3,184 |
— |
177 |
— |
3,361 |
|||||||||||||||
Total revenues and other income |
52,810 |
8,389 |
33,732 |
— |
94,931 |
|||||||||||||||
Net income (loss) from continuing operations |
42,084 |
8,389 |
2,636 |
(3,292) |
49,817 |
|||||||||||||||
Adjusted EBITDA (1) |
47,459 |
12,250 |
5,844 |
(2,814) |
62,739 |
|||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
38,537 |
9,862 |
5,476 |
(18,770) |
35,105 |
|||||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
2,888 |
2,388 |
(2,539) |
— |
2,737 |
|||||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
17 |
— |
(1,000) |
(109,021) |
(110,004) |
|||||||||||||||
Distributable Cash Flow (1) |
41,426 |
12,250 |
3,424 |
(18,770) |
38,330 |
|||||||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||
Revenues and other income |
$ |
77,487 |
$ |
10,188 |
$ |
31,642 |
$ |
— |
$ |
119,317 |
||||||||||
Gain (loss) on asset sales |
(1,080) |
— |
9 |
— |
(1,071) |
|||||||||||||||
Total revenues and other income |
76,407 |
10,188 |
31,651 |
— |
118,246 |
|||||||||||||||
Asset impairments |
91 |
— |
— |
— |
91 |
|||||||||||||||
Net income (loss) from continuing operations |
61,153 |
10,188 |
3,439 |
(26,147) |
48,633 |
|||||||||||||||
Adjusted EBITDA (1) |
68,730 |
9,800 |
7,129 |
(4,032) |
81,627 |
|||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
34,814 |
9,800 |
6,210 |
(34,866) |
15,958 |
|||||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
4,184 |
— |
(2,472) |
— |
1,712 |
|||||||||||||||
Net cash used in financing activities of continuing operations |
— |
— |
(793) |
(46,105) |
(46,898) |
|||||||||||||||
Distributable Cash Flow (1) |
39,003 |
9,800 |
4,152 |
(34,866) |
18,089 |
|||||||||||||||
Three Months Ended March 31, 2017 |
||||||||||||||||||||
Revenues and other income |
$ |
51,138 |
$ |
10,294 |
$ |
27,221 |
$ |
— |
$ |
88,653 |
||||||||||
Gains on asset sales |
29 |
— |
15 |
— |
44 |
|||||||||||||||
Total revenues and other income |
51,167 |
10,294 |
27,236 |
— |
88,697 |
|||||||||||||||
Asset impairments |
1,778 |
— |
— |
— |
1,778 |
|||||||||||||||
Net income (loss) from continuing operations |
35,094 |
10,294 |
(1,539) |
(26,878) |
16,971 |
|||||||||||||||
Adjusted EBITDA (1) |
43,845 |
12,250 |
2,375 |
(7,185) |
51,285 |
|||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
37,932 |
12,250 |
4,046 |
(33,739) |
20,489 |
|||||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
6 |
— |
(2,074) |
— |
(2,068) |
|||||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
16 |
— |
(96) |
54,233 |
54,153 |
|||||||||||||||
Distributable Cash Flow (1) |
37,937 |
12,250 |
2,099 |
(33,739) |
18,547 |
(1) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Debt Reduction and Liquidity
In the first quarter of 2017, NRP completed several recapitalization transactions that improved NRP's balance sheet and strengthened its financial credit position. During the three months ended June 30, 2017, NRP redeemed $90.0 million in principal of its 9.125% senior notes and paid off $7.3 million of Opco's senior notes. In addition, through the sale of one of its assets, Opco's $0.8 million utility local improvement obligation was transfered to the purchaser. At the end of the second quarter NRP had $220.8 million of liquidity, consisting of $180 million available under the Opco credit facility and $40.8 million in cash. NRP's consolidated debt to Adjusted EBITDA ratio stands at 4.0x, down from 4.5x at year-end 2016 and 5.3x at year-end 2015. NRP remains focused on further reducing its debt and repositioning the partnership for long-term growth.
Second Quarter 2017 Distributions
On July 27, 2017, the Board of Directors of GP Natural Resource Partners LLC declared a distribution of $0.45 per unit to be paid by the Partnership on August 14, 2017 to common unitholders of record on August 7, 2017. In addition, the Board declared a distribution on NRP's 12.0% Class A Convertible Preferred Units. One-half of the distribution on the preferred units will be paid-in-kind through the issuance of 3,769 additional preferred units.
Conference Call
A conference call will be held today at 10:00 a.m. ET. To join the conference call, dial (844) 379-6938 and provide the conference code 54804730. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com.
Audio replays of the conference call will be available for approximately one week. To access the replay, dial (855) 859-2056 and provide the conference code 54804730 or visit the Investor Relations section of NRP's website.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and a construction aggregates company.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swap, fair value adjustments for warrant liabilities and income to non-controlling interest; plus distributions from unconsolidated investment, interest expense, debt modification expense, loss on extinguishment of debt, warrant issuance expense, 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, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement. 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" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations, plus returns of equity from unconsolidated investment, proceeds from sales of assets, including those included in discontinued operations, and return on long-term contract receivables (including affiliate); 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. DCF 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 the Partnership's ability to make cash distributions to our common and preferred unitholders and our general partner and repay debt.
"Adjusted Net Income" is a non-GAAP financial measure that we define as Net income attributable to common unitholders and general partner, plus recapitalization transaction expenses and asset impairments; less gains on asset sales, non-cash revenue from lease modifications and terminations and fair value adjustments for warrant liabilities. Adjusted net income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted net income is useful in evaluating our financial performance because restructuring transaction expenses are one time charges, gains on asset sales are not related to the operations of our business and asset impairments and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net income allows us to better compare results period-over-period. Reconciliations of Net income attributable to common unitholders and general partner to Adjusted net income are included in the table on the first page of this release.
"Adjusted Coal Royalty and Other Revenue" is a non-GAAP financial measure that we define as Coal royalty and other revenues less gains on asset sales and non-cash revenue associated with lease modifications and terminations. Adjusted coal royalty and other revenue should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other revenue useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from Coal royalty and other revenue allows us to better compare results period-over-period. Reconciliations of Coal royalty and other revenue to Adjusted coal royalty and other revenue are included in the tables attached to this release.
"Adjusted Coal Royalty and Other Operating Income" is a non-GAAP financial measure that we define as Coal royalty and other operating income plus asset impairments less gains on asset sales and non-cash revenue associated with lease modifications and terminations. Adjusted coal royalty and other operating income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other operating income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and asset impairments and non-cash revenue associated with lease modifications and forfeitures are non-cash charges and excluding these from Coal royalty and other operating income allows us to better compare results period-over-period. Reconciliations of Coal royalty and other operating income to Adjusted coal royalty and other operating income are included in the tables attached to this release.
"Adjusted Revenue and Other Income" is a non-GAAP financial measure that we define as Revenue and other income less gains on asset sales and non-cash revenue associated with lease modifications and terminations. Adjusted revenue and other income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted revenue and other income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and non-cash revenue associated with lease modifications and forfeitures and excluding these from revenues and other income allows us to better compare results period-over-period. Reconciliations of Revenue and other income to Adjusted revenue and other income are included in the tables attached to this release.
"Adjusted Corporate and Financing Costs" is a non-GAAP financial measure that we define as Corporate and financing net loss from continuing operations plus debt modification expense, loss on extinguishment of debt, warrant issuance expense and performance based incentive compensation expense less fair value adjustments for warrant liabilities. Adjusted corporate and financing costs should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted corporate and financing costs is useful in evaluating our financial performance because debt modification expense, loss on extinguishment of debt, warrant issuance expense and performance based incentive compensation expense are one time charges and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net loss allows us to better compare results period-over-period. Reconciliations of Corporate and financing net loss from continuing operations to Adjusted corporate and financing costs are included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, 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.
-Financial Tables Follow-
Natural Resource Partners L.P. | |||||||||||||||||||
Financial Tables | |||||||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||||||
(In thousands, except per unit data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||||||
June 30, |
March 31, |
June 30, | |||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | |||||||||||||||
Revenues and other income: |
|||||||||||||||||||
Coal royalty and other |
$ |
36,914 |
$ |
59,983 |
$ |
34,994 |
$ |
71,908 |
$ |
88,832 |
|||||||||
Coal royalty and other—affiliates |
12,712 |
17,504 |
16,144 |
28,856 |
28,074 |
||||||||||||||
Construction aggregates |
33,555 |
31,642 |
27,221 |
60,776 |
56,324 |
||||||||||||||
Equity in earnings of Ciner Wyoming |
8,389 |
10,188 |
10,294 |
18,683 |
19,989 |
||||||||||||||
Gain (loss) on asset sales, net |
3,361 |
(1,071) |
44 |
3,405 |
20,854 |
||||||||||||||
Total revenues and other income |
94,931 |
118,246 |
88,697 |
183,628 |
214,073 |
||||||||||||||
Operating expenses: |
|||||||||||||||||||
Operating and maintenance expenses |
31,020 |
29,797 |
29,628 |
60,648 |
56,582 |
||||||||||||||
Operating and maintenance expenses—affiliates, net |
2,219 |
2,402 |
2,555 |
4,774 |
5,886 |
||||||||||||||
Depreciation, depletion and amortization |
8,165 |
10,472 |
9,724 |
17,889 |
20,252 |
||||||||||||||
Amortization expense—affiliate |
240 |
704 |
768 |
1,008 |
1,426 |
||||||||||||||
General and administrative |
2,031 |
3,173 |
6,078 |
8,109 |
6,408 |
||||||||||||||
General and administrative—affiliates |
852 |
866 |
1,124 |
1,976 |
1,803 |
||||||||||||||
Asset impairments |
— |
91 |
1,778 |
1,778 |
1,984 |
||||||||||||||
Total operating expenses |
44,527 |
47,505 |
51,655 |
96,182 |
94,341 |
||||||||||||||
Income from operations |
50,404 |
70,741 |
37,042 |
87,446 |
119,732 |
||||||||||||||
Other income (expense) |
|||||||||||||||||||
Interest expense |
(20,377) |
(22,054) |
(23,141) |
(43,518) |
(44,251) |
||||||||||||||
Interest expense—affiliate |
— |
(61) |
— |
— |
(523) |
||||||||||||||
Debt modification expense |
(132) |
— |
(7,807) |
(7,939) |
— |
||||||||||||||
Loss on extinguishment of debt |
(4,107) |
— |
— |
(4,107) |
— |
||||||||||||||
Warrant issuance expense |
— |
— |
(5,709) |
(5,709) |
— |
||||||||||||||
Fair value adjustments for warrant liabilities |
23,960 |
— |
16,569 |
40,529 |
— |
||||||||||||||
Interest income |
69 |
7 |
17 |
86 |
26 |
||||||||||||||
Other expense, net |
(587) |
(22,108) |
(20,071) |
(20,658) |
(44,748) |
||||||||||||||
Net income from continuing operations |
49,817 |
48,633 |
16,971 |
66,788 |
74,984 |
||||||||||||||
Income (loss) from discontinued operations |
133 |
(2,187) |
(207) |
(74) |
(5,111) |
||||||||||||||
Net income |
$ |
49,950 |
$ |
46,446 |
$ |
16,764 |
$ |
66,714 |
$ |
69,873 |
|||||||||
Less: income attributable to preferred unitholders |
(7,538) |
— |
(2,500) |
(10,038) |
— |
||||||||||||||
Net income attributable to common unitholders and general partner |
$ |
42,412 |
$ |
46,446 |
$ |
14,264 |
$ |
56,676 |
$ |
69,873 |
|||||||||
Income from continuing operations per common unit |
|||||||||||||||||||
Basic |
$ |
3.38 |
$ |
3.90 |
$ |
1.17 |
$ |
4.55 |
$ |
6.02 |
|||||||||
Diluted |
1.13 |
3.90 |
0.03 |
1.35 |
6.02 |
||||||||||||||
Net income per common unit |
|||||||||||||||||||
Basic |
$ |
3.39 |
$ |
3.73 |
$ |
1.15 |
$ |
4.54 |
$ |
5.61 |
|||||||||
Diluted |
1.13 |
3.73 |
0.02 |
1.34 |
5.61 |
||||||||||||||
Net income |
$ |
49,950 |
$ |
46,446 |
$ |
16,764 |
$ |
66,714 |
$ |
69,873 |
|||||||||
Add: comprehensive income (loss) from unconsolidated investment and other |
(13) |
462 |
(1,132) |
(1,145) |
(83) |
||||||||||||||
Comprehensive income |
$ |
49,937 |
$ |
46,908 |
$ |
15,632 |
$ |
65,569 |
$ |
69,790 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Financial Tables | ||||||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||
June 30, |
March 31, |
June 30, | ||||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
Cash flows from operating activities: |
||||||||||||||||||||
Net income |
$ |
49,950 |
$ |
46,446 |
$ |
16,764 |
$ |
66,714 |
$ |
69,873 |
||||||||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: |
||||||||||||||||||||
Depreciation, depletion and amortization |
8,165 |
10,472 |
9,724 |
17,889 |
20,252 |
|||||||||||||||
Amortization expense—affiliates |
240 |
704 |
768 |
1,008 |
1,426 |
|||||||||||||||
Return on earnings from unconsolidated investment |
9,862 |
9,800 |
12,250 |
22,112 |
22,050 |
|||||||||||||||
Equity earnings from unconsolidated investment |
(8,389) |
(10,188) |
(10,294) |
(18,683) |
(19,989) |
|||||||||||||||
(Gain) loss on asset sales, net |
(3,361) |
1,071 |
(44) |
(3,405) |
(20,854) |
|||||||||||||||
Fair value adjustments for warrant liabilities |
(23,960) |
— |
(16,569) |
(40,529) |
— |
|||||||||||||||
Debt modification expense |
132 |
— |
7,807 |
7,939 |
— |
|||||||||||||||
Loss on extinguishment of debt |
4,107 |
— |
— |
4,107 |
— |
|||||||||||||||
Warrant issuance expense |
— |
— |
5,709 |
5,709 |
— |
|||||||||||||||
(Income) loss from discontinued operations |
(133) |
2,187 |
207 |
74 |
5,111 |
|||||||||||||||
Asset impairments |
— |
91 |
1,778 |
1,778 |
1,984 |
|||||||||||||||
Other, net |
1,332 |
1,828 |
1,090 |
2,422 |
4,094 |
|||||||||||||||
Other, net—affiliates |
(999) |
(1,571) |
887 |
(112) |
212 |
|||||||||||||||
Change in operating assets and liabilities: |
||||||||||||||||||||
Accounts receivable |
(2,336) |
(33) |
(1,267) |
(3,603) |
3,922 |
|||||||||||||||
Accounts receivable—affiliates |
121 |
(1,201) |
(947) |
(826) |
(2,271) |
|||||||||||||||
Accounts payable |
(940) |
(130) |
986 |
46 |
150 |
|||||||||||||||
Accounts payable—affiliates |
(254) |
(250) |
256 |
2 |
(25) |
|||||||||||||||
Accrued liabilities |
4,182 |
(4,405) |
(8,080) |
(3,898) |
(3,131) |
|||||||||||||||
Accrued liabilities—affiliates |
— |
(913) |
— |
— |
(456) |
|||||||||||||||
Deferred revenue |
3,412 |
(34,141) |
1,077 |
4,489 |
(38,204) |
|||||||||||||||
Deferred revenue—affiliates |
(7,269) |
(3,075) |
(2,897) |
(10,166) |
(4,060) |
|||||||||||||||
Other items, net |
1,243 |
(1,341) |
1,284 |
2,527 |
(2,045) |
|||||||||||||||
Other items, net—affiliates |
— |
607 |
— |
— |
607 |
|||||||||||||||
Net cash provided by operating activities of continuing operations |
35,105 |
15,958 |
20,489 |
55,594 |
38,646 |
|||||||||||||||
Net cash provided by (used in) operating activities of discontinued operations |
(247) |
1,843 |
(284) |
(531) |
5,815 |
|||||||||||||||
Net cash provided by operating activities |
34,858 |
17,801 |
20,205 |
55,063 |
44,461 |
|||||||||||||||
Cash flows from investing activities: |
||||||||||||||||||||
Return of equity from unconsolidated investment |
2,388 |
— |
— |
2,388 |
— |
|||||||||||||||
Proceeds from sale of oil and gas royalty properties |
4 |
1,499 |
(548) |
(544) |
34,347 |
|||||||||||||||
Proceeds from sale of coal and aggregates royalty properties |
1,288 |
— |
139 |
1,427 |
9,802 |
|||||||||||||||
Return of long-term contract receivables |
1,207 |
— |
— |
1,207 |
— |
|||||||||||||||
Return of long-term contract receivables—affiliate |
390 |
1,871 |
414 |
804 |
2,180 |
|||||||||||||||
Proceeds from sale of plant and equipment and other |
363 |
840 |
22 |
385 |
843 |
|||||||||||||||
Acquisition of plant and equipment and other |
(2,903) |
(2,498) |
(2,095) |
(4,998) |
(3,919) |
|||||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
2,737 |
1,712 |
(2,068) |
669 |
43,253 |
|||||||||||||||
Net cash provided by (used in) investing activities of discontinued operations |
173 |
(1,089) |
29 |
202 |
(3,814) |
|||||||||||||||
Net cash provided by (used in) investing activities |
2,910 |
623 |
(2,039) |
871 |
39,439 |
|||||||||||||||
Cash flows from financing activities: |
||||||||||||||||||||
Proceeds from issuance of Convertible Preferred Units and Warrants, net |
— |
— |
242,100 |
242,100 |
— |
|||||||||||||||
Proceeds from issuance of 2022 Senior Notes, net |
— |
— |
103,688 |
103,688 |
— |
|||||||||||||||
Proceeds from loans |
— |
20,000 |
— |
— |
20,000 |
|||||||||||||||
Repayments of loans |
(97,282) |
(57,316) |
(251,010) |
(348,292) |
(98,482) |
|||||||||||||||
Distributions to common unitholders and general partner |
(5,619) |
(5,616) |
(5,615) |
(11,234) |
(11,232) |
|||||||||||||||
Distributions to preferred unitholders |
(1,250) |
— |
— |
(1,250) |
— |
|||||||||||||||
Contributions to discontinued operations |
(74) |
— |
(255) |
(329) |
— |
|||||||||||||||
Debt issue costs and other |
(5,779) |
(3,966) |
(34,755) |
(40,534) |
(11,998) |
|||||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
(110,004) |
(46,898) |
54,153 |
(55,851) |
(101,712) |
|||||||||||||||
Net cash provided by (used in) financing activities of discontinued operations |
74 |
(232) |
255 |
329 |
(10,570) |
|||||||||||||||
Net cash provided by (used in) financing activities |
(109,930) |
(47,130) |
54,408 |
(55,522) |
(112,282) |
|||||||||||||||
Net increase (decrease) in cash and cash equivalents |
(72,162) |
(28,706) |
72,574 |
412 |
(28,382) |
|||||||||||||||
Cash and cash equivalents of continuing operations at beginning of period |
112,945 |
50,619 |
40,371 |
40,371 |
41,204 |
|||||||||||||||
Cash and cash equivalents of discontinued operations at beginning of period |
— |
1,478 |
— |
— |
10,569 |
|||||||||||||||
Cash and cash equivalents at beginning of period |
112,945 |
52,097 |
40,371 |
40,371 |
51,773 |
|||||||||||||||
Cash and cash equivalents at end of period |
40,783 |
23,391 |
112,945 |
40,783 |
23,391 |
|||||||||||||||
Less: cash and cash equivalents of discontinued operations at end of period |
— |
2,000 |
— |
— |
2,000 |
|||||||||||||||
Cash and cash equivalents of continuing operations at end of period |
$ |
40,783 |
$ |
21,391 |
$ |
112,945 |
$ |
40,783 |
$ |
21,391 |
||||||||||
Supplemental cash flow information: |
||||||||||||||||||||
Cash paid during the period for interest |
$ |
15,029 |
$ |
29,490 |
$ |
19,851 |
$ |
34,880 |
$ |
42,671 |
||||||||||
Non-cash financing activities: |
||||||||||||||||||||
Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes |
$ |
— |
$ |
— |
$ |
240,638 |
$ |
240,638 |
$ |
— |
Natural Resource Partners L.P. | |||||||
Financial Tables | |||||||
Consolidated Balance Sheets | |||||||
(In thousands, except unit data) | |||||||
June 30, |
December 31, | ||||||
2017 |
2016 | ||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
40,783 |
$ |
40,371 |
|||
Accounts receivable, net |
53,997 |
43,202 |
|||||
Accounts receivable—affiliates, net |
292 |
6,658 |
|||||
Inventory |
7,841 |
6,893 |
|||||
Prepaid expenses and other |
3,192 |
6,137 |
|||||
Current assets of discontinued operations |
991 |
991 |
|||||
Total current assets |
107,096 |
104,252 |
|||||
Land |
25,272 |
25,252 |
|||||
Plant and equipment, net |
48,822 |
49,443 |
|||||
Mineral rights, net |
895,642 |
908,192 |
|||||
Intangible assets, net |
51,226 |
3,236 |
|||||
Intangible assets, net—affiliate |
— |
49,811 |
|||||
Equity in unconsolidated investment |
248,919 |
255,901 |
|||||
Long-term contracts receivable |
41,638 |
— |
|||||
Long-term contracts receivable—affiliate |
— |
43,785 |
|||||
Other assets |
9,172 |
3,791 |
|||||
Other assets—affiliate |
1,265 |
1,018 |
|||||
Total assets |
$ |
1,429,052 |
$ |
1,444,681 |
|||
LIABILITIES AND CAPITAL |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
5,257 |
$ |
6,234 |
|||
Accounts payable—affiliates |
942 |
940 |
|||||
Accrued liabilities |
37,213 |
41,587 |
|||||
Current portion of long-term debt, net |
173,901 |
138,903 |
|||||
Current liabilities of discontinued operations |
98 |
353 |
|||||
Total current liabilities |
217,411 |
188,017 |
|||||
Deferred revenue |
110,885 |
44,931 |
|||||
Deferred revenue—affiliates |
— |
71,632 |
|||||
Long-term debt, net |
700,252 |
987,400 |
|||||
Warrant liabilities |
37,457 |
— |
|||||
Other non-current liabilities |
2,699 |
4,565 |
|||||
Total liabilities |
1,068,704 |
1,296,545 |
|||||
Commitments and contingencies |
|||||||
Convertible Preferred Units (251,250 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit) |
160,377 |
— |
|||||
Partners' capital: |
|||||||
Common unitholders' interest (12,232,006 units issued and outstanding) |
204,230 |
152,309 |
|||||
General partner's interest |
1,946 |
887 |
|||||
Accumulated other comprehensive loss |
(2,811) |
(1,666) |
|||||
Total partners' capital |
203,365 |
151,530 |
|||||
Non-controlling interest |
(3,394) |
(3,394) |
|||||
Total capital |
199,971 |
148,136 |
|||||
Total liabilities and capital |
$ |
1,429,052 |
$ |
1,444,681 |
The table below presents NRP's business results by segment for the six months ended June 30, 2017 and June 30, 2016:
Operating Business Segments |
||||||||||||||||||||
Coal |
Construction |
Corporate |
||||||||||||||||||
Soda Ash |
Total | |||||||||||||||||||
($ In thousands) | ||||||||||||||||||||
Six Months Ended June 30, 2017 |
||||||||||||||||||||
Revenues and other income |
$ |
100,764 |
$ |
18,683 |
$ |
60,776 |
$ |
— |
$ |
180,223 |
||||||||||
Gains on asset sales |
3,213 |
— |
192 |
— |
3,405 |
|||||||||||||||
Total revenues and other income |
103,977 |
18,683 |
60,968 |
— |
183,628 |
|||||||||||||||
Asset impairments |
1,778 |
— |
— |
— |
1,778 |
|||||||||||||||
Net income (loss) from continuing operations |
77,178 |
18,683 |
1,097 |
(30,170) |
66,788 |
|||||||||||||||
Adjusted EBITDA (1) |
91,304 |
24,500 |
8,219 |
(9,999) |
114,024 |
|||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
76,469 |
22,112 |
9,522 |
(52,509) |
55,594 |
|||||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
2,894 |
2,388 |
(4,613) |
— |
669 |
|||||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
33 |
— |
(1,096) |
(54,788) |
(55,851) |
|||||||||||||||
Distributable Cash Flow (1) |
79,363 |
24,500 |
5,523 |
(52,509) |
56,877 |
|||||||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||
Revenues and other income |
$ |
116,906 |
$ |
19,989 |
$ |
56,324 |
$ |
— |
$ |
193,219 |
||||||||||
Gains on asset sales |
20,845 |
— |
9 |
— |
20,854 |
|||||||||||||||
Total revenues and other income |
137,751 |
19,989 |
56,333 |
— |
214,073 |
|||||||||||||||
Asset impairments |
1,984 |
— |
— |
— |
1,984 |
|||||||||||||||
Net income (loss) from continuing operations |
105,552 |
19,989 |
2,402 |
(52,959) |
74,984 |
|||||||||||||||
Adjusted EBITDA (1) |
121,962 |
22,050 |
9,654 |
(8,185) |
145,481 |
|||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
56,375 |
22,050 |
12,323 |
(52,102) |
38,646 |
|||||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
47,143 |
— |
(3,890) |
— |
43,253 |
|||||||||||||||
Net cash used in financing activities of continuing operations |
— |
(7,232) |
(1,593) |
(92,887) |
(101,712) |
|||||||||||||||
Distributable Cash Flow (1) |
103,523 |
22,050 |
9,018 |
(52,102) |
82,489 |
(1) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Natural Resource Partners L.P. | ||||||||||||||||||||
Financial Tables | ||||||||||||||||||||
Operating Statistics - Coal Royalty and Other | ||||||||||||||||||||
(in thousands except per ton data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||
June 30, |
March 31, |
June 30, | ||||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
Coal production (tons) |
||||||||||||||||||||
Appalachia |
||||||||||||||||||||
Northern (1) |
247 |
(138) |
1,206 |
1,454 |
1,292 |
|||||||||||||||
Central |
3,897 |
3,470 |
3,699 |
7,597 |
6,698 |
|||||||||||||||
Southern |
690 |
773 |
562 |
1,253 |
1,518 |
|||||||||||||||
Total Appalachia |
4,834 |
4,105 |
5,467 |
10,304 |
9,508 |
|||||||||||||||
Illinois Basin |
734 |
1,909 |
2,017 |
2,751 |
3,637 |
|||||||||||||||
Northern Powder River Basin |
910 |
442 |
950 |
1,859 |
1,416 |
|||||||||||||||
Total coal production |
6,478 |
6,456 |
8,434 |
14,914 |
14,561 |
|||||||||||||||
Coal royalty revenue per ton |
||||||||||||||||||||
Appalachia |
||||||||||||||||||||
Northern (1) |
$ |
3.78 |
$ |
2.08 |
$ |
0.50 |
$ |
1.06 |
$ |
1.27 |
||||||||||
Central |
5.05 |
3.13 |
5.46 |
5.25 |
3.19 |
|||||||||||||||
Southern |
5.69 |
3.36 |
6.46 |
6.03 |
3.16 |
|||||||||||||||
Illinois Basin |
4.06 |
3.76 |
3.30 |
3.50 |
3.54 |
|||||||||||||||
Northern Powder River Basin |
2.62 |
3.05 |
2.63 |
2.63 |
2.82 |
|||||||||||||||
Coal royalty revenues |
||||||||||||||||||||
Appalachia |
||||||||||||||||||||
Northern (1) |
$ |
933 |
$ |
463 |
$ |
607 |
$ |
1,540 |
$ |
1,635 |
||||||||||
Central |
19,691 |
10,864 |
20,184 |
39,875 |
21,337 |
|||||||||||||||
Southern |
3,927 |
2,598 |
3,632 |
7,559 |
4,800 |
|||||||||||||||
Total Appalachia |
24,551 |
13,925 |
24,423 |
48,974 |
27,772 |
|||||||||||||||
Illinois Basin |
2,978 |
7,181 |
6,646 |
9,624 |
12,867 |
|||||||||||||||
Northern Powder River Basin |
2,384 |
1,348 |
2,498 |
4,882 |
4,000 |
|||||||||||||||
Total coal royalty revenue |
$ |
29,913 |
$ |
22,454 |
$ |
33,567 |
$ |
63,480 |
$ |
44,639 |
||||||||||
Other revenues |
||||||||||||||||||||
Minimums recognized as revenue |
$ |
7,547 |
$ |
43,527 |
$ |
5,196 |
$ |
12,743 |
$ |
50,492 |
||||||||||
Transportation and processing fees |
5,520 |
5,302 |
4,639 |
10,159 |
9,536 |
|||||||||||||||
Property tax revenue |
1,100 |
3,027 |
2,698 |
3,798 |
6,332 |
|||||||||||||||
Wheelage |
1,025 |
465 |
1,267 |
2,292 |
878 |
|||||||||||||||
Coal override revenue |
1,885 |
657 |
824 |
2,709 |
867 |
|||||||||||||||
Hard mineral royalty revenues |
1,452 |
603 |
1,244 |
2,696 |
1,494 |
|||||||||||||||
Oil and gas royalty revenues |
924 |
1,091 |
1,491 |
2,415 |
1,464 |
|||||||||||||||
Other |
260 |
361 |
212 |
472 |
1,204 |
|||||||||||||||
Total other revenues |
$ |
19,713 |
$ |
55,033 |
$ |
17,571 |
$ |
37,284 |
$ |
72,267 |
||||||||||
Coal royalty and other income |
49,626 |
77,487 |
51,138 |
100,764 |
116,906 |
|||||||||||||||
Gain (loss) on coal royalty and other segment asset sales |
3,184 |
(1,080) |
29 |
3,213 |
20,845 |
|||||||||||||||
Total coal royalty and other segment revenues and other income |
$ |
52,810 |
$ |
76,407 |
$ |
51,167 |
$ |
103,977 |
$ |
137,751 |
(1) |
During the three months ended June 30, 2016, Northern Appalachia was impacted by a prior period adjustment of 0.4 million tons and less than $0.1 million in royalty revenue related to the Hibbs Run mine that temporarily ceased production during 2016. Absent this adjustment, production in the Northern Appalachia region was 0.2 million tons with revenue of $0.4 million. Coal royalty revenue per ton removes the impact of the Hibbs Run prior period adjustment. |
Natural Resource Partners L.P. | |||||||||
Reconciliation of Non-GAAP Measures | |||||||||
Six Months Ended | |||||||||
June 30, | |||||||||
2017 |
2016 | ||||||||
(In thousands) | |||||||||
Net income |
$ |
66,714 |
$ |
69,873 |
|||||
Less: income attributable to preferred unitholders |
(10,038) |
— |
|||||||
Net income attributable to common unitholders and general partner |
$ |
56,676 |
$ |
69,873 |
|||||
Plus: Recapitalization transaction expenses |
21,602 |
— |
|||||||
Plus: Asset impairments |
1,778 |
1,984 |
|||||||
Less: Non-cash revenue associated with lease modifications and forfeitures |
(1,262) |
(36,788) |
|||||||
Less: Fair value adjustments for warrant liabilities |
(40,529) |
— |
|||||||
Less: Gains on asset sales |
(3,405) |
(20,854) |
|||||||
Adjusted net income attributable to common unitholders and general partner |
$ |
34,860 |
— |
$ |
14,215 |
||||
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Coal |
Construction |
Corporate |
||||||||||||||||||
Soda Ash |
Total | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended June 30, 2017 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
38,537 |
$ |
9,862 |
$ |
5,476 |
$ |
(18,770) |
$ |
35,105 |
||||||||||
Add: return of equity from unconsolidated investment |
— |
2,388 |
— |
— |
2,388 |
|||||||||||||||
Add: proceeds from sale of PP&E |
— |
— |
363 |
— |
363 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
1,292 |
— |
— |
— |
1,292 |
|||||||||||||||
Add: return on long-term contract receivables (including affiliate) |
1,597 |
— |
— |
— |
1,597 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(2,415) |
— |
(2,415) |
|||||||||||||||
Distributable cash flow |
$ |
41,426 |
$ |
12,250 |
$ |
3,424 |
$ |
(18,770) |
$ |
38,330 |
||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
34,814 |
$ |
9,800 |
$ |
6,210 |
$ |
(34,866) |
$ |
15,958 |
||||||||||
Add: proceeds from sale of PP&E |
819 |
— |
21 |
— |
840 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
1,499 |
— |
— |
— |
1,499 |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
1,871 |
— |
— |
— |
1,871 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(2,079) |
— |
(2,079) |
|||||||||||||||
Distributable cash flow |
$ |
39,003 |
$ |
9,800 |
$ |
4,152 |
$ |
(34,866) |
$ |
18,089 |
||||||||||
Three Months Ended March 31, 2017 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
37,932 |
$ |
12,250 |
$ |
4,046 |
$ |
(33,739) |
$ |
20,489 |
||||||||||
Add: proceeds from sale of PP&E |
— |
— |
22 |
— |
22 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
(409) |
— |
— |
— |
(409) |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
414 |
— |
— |
— |
414 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(1,969) |
— |
(1,969) |
|||||||||||||||
Distributable cash flow |
$ |
37,937 |
$ |
12,250 |
$ |
2,099 |
$ |
(33,739) |
$ |
18,547 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Coal |
Construction |
Corporate |
||||||||||||||||||
Soda Ash |
Total | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Six Months Ended June 30, 2017 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
76,469 |
$ |
22,112 |
$ |
9,522 |
$ |
(52,509) |
$ |
55,594 |
||||||||||
Add: return of equity from unconsolidated investment |
— |
2,388 |
— |
— |
2,388 |
|||||||||||||||
Add: proceeds from sale of PP&E |
— |
— |
385 |
— |
385 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
883 |
— |
— |
— |
883 |
|||||||||||||||
Add: return on long-term contract receivables (including affiliate) |
2,011 |
— |
— |
— |
2,011 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(4,384) |
— |
(4,384) |
|||||||||||||||
Distributable cash flow |
$ |
79,363 |
$ |
24,500 |
$ |
5,523 |
$ |
(52,509) |
$ |
56,877 |
||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
56,375 |
$ |
22,050 |
$ |
12,323 |
$ |
(52,102) |
$ |
38,646 |
||||||||||
Add: proceeds from sale of PP&E |
819 |
— |
24 |
— |
843 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
44,149 |
— |
— |
— |
44,149 |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
2,180 |
— |
— |
— |
2,180 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(3,329) |
— |
(3,329) |
|||||||||||||||
Distributable cash flow |
$ |
103,523 |
$ |
22,050 |
$ |
9,018 |
$ |
(52,102) |
$ |
82,489 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Coal |
Construction |
Corporate |
||||||||||||||||||
Soda Ash |
Total | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended June 30, 2017 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
42,084 |
$ |
8,389 |
$ |
2,636 |
$ |
(3,292) |
$ |
49,817 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(8,389) |
— |
— |
(8,389) |
|||||||||||||||
Less: fair value adjustments for warrant liabilities |
— |
— |
— |
(23,960) |
(23,960) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
178 |
20,199 |
20,377 |
|||||||||||||||
Add: debt modification expense |
— |
— |
— |
132 |
132 |
|||||||||||||||
Add: loss on extinguishment of debt |
— |
— |
— |
4,107 |
4,107 |
|||||||||||||||
Add: depreciation, depletion and amortization |
5,375 |
— |
3,030 |
— |
8,405 |
|||||||||||||||
Add: asset impairments |
— |
— |
— |
— |
— |
|||||||||||||||
Adjusted EBITDA |
$ |
47,459 |
$ |
12,250 |
$ |
5,844 |
$ |
(2,814) |
$ |
62,739 |
||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
61,153 |
$ |
10,188 |
$ |
3,439 |
$ |
(26,147) |
$ |
48,633 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(10,188) |
— |
— |
(10,188) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
9,800 |
— |
— |
9,800 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
22,115 |
22,115 |
|||||||||||||||
Add: depreciation, depletion and amortization |
7,486 |
— |
3,690 |
— |
11,176 |
|||||||||||||||
Add: asset impairments |
91 |
— |
— |
— |
91 |
|||||||||||||||
Adjusted EBITDA |
$ |
68,730 |
$ |
9,800 |
$ |
7,129 |
$ |
(4,032) |
$ |
81,627 |
||||||||||
Three Months Ended March 31, 2017 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
35,094 |
$ |
10,294 |
$ |
(1,539) |
$ |
(26,878) |
$ |
16,971 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(10,294) |
— |
— |
(10,294) |
|||||||||||||||
Less: fair value adjustments for warrant liabilities |
— |
— |
— |
(16,569) |
(16,569) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
395 |
22,746 |
23,141 |
|||||||||||||||
Add: debt modification expense |
— |
— |
— |
7,807 |
7,807 |
|||||||||||||||
Add: warrant issuance expense |
— |
— |
— |
5,709 |
5,709 |
|||||||||||||||
Add: depreciation, depletion and amortization |
6,973 |
— |
3,519 |
— |
10,492 |
|||||||||||||||
Add: asset impairments |
1,778 |
— |
— |
— |
1,778 |
|||||||||||||||
Adjusted EBITDA |
$ |
43,845 |
$ |
12,250 |
$ |
2,375 |
$ |
(7,185) |
$ |
51,285 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Coal |
Construction |
Corporate |
||||||||||||||||||
Soda Ash |
Total | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Six Months Ended June 30, 2017 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
77,178 |
$ |
18,683 |
$ |
1,097 |
$ |
(30,170) |
$ |
66,788 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(18,683) |
— |
— |
(18,683) |
|||||||||||||||
Less: fair value adjustments for warrant liabilities |
— |
— |
— |
(40,529) |
(40,529) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
24,500 |
— |
— |
24,500 |
|||||||||||||||
Add: interest expense |
— |
— |
573 |
42,945 |
43,518 |
|||||||||||||||
Add: debt modification expense |
— |
— |
— |
7,939 |
7,939 |
|||||||||||||||
Add: loss on extinguishment of debt |
— |
— |
— |
4,107 |
4,107 |
|||||||||||||||
Add: warrant issuance expense |
— |
— |
— |
5,709 |
5,709 |
|||||||||||||||
Add: depreciation, depletion and amortization |
12,348 |
— |
6,549 |
— |
18,897 |
|||||||||||||||
Add: asset impairments |
1,778 |
— |
— |
— |
1,778 |
|||||||||||||||
Adjusted EBITDA |
$ |
91,304 |
$ |
24,500 |
$ |
8,219 |
$ |
(9,999) |
$ |
114,024 |
||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
105,552 |
$ |
19,989 |
$ |
2,402 |
$ |
(52,959) |
$ |
74,984 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(19,989) |
— |
— |
(19,989) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
22,050 |
— |
— |
22,050 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
44,774 |
44,774 |
|||||||||||||||
Add: depreciation, depletion and amortization |
14,426 |
— |
7,252 |
— |
21,678 |
|||||||||||||||
Add: asset impairments |
1,984 |
— |
— |
— |
1,984 |
|||||||||||||||
Adjusted EBITDA |
$ |
121,962 |
$ |
22,050 |
$ |
9,654 |
$ |
(8,185) |
$ |
145,481 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Adjusted Coal Royalty and Other Revenue | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||
June 30, |
March 31, |
June 30, | ||||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Coal royalty and other revenue |
$ |
52,810 |
$ |
76,407 |
$ |
51,167 |
$ |
103,977 |
$ |
137,751 |
||||||||||
Less: Non-cash revenue associated with lease modifications and terminations |
(972) |
(35,451) |
(290) |
(1,262) |
(36,788) |
|||||||||||||||
Less: (gain) loss on asset sales |
(3,184) |
1,080 |
(29) |
(3,213) |
(20,845) |
|||||||||||||||
Adjusted coal royalty and other revenue |
$ |
48,654 |
$ |
42,036 |
$ |
50,848 |
99,502 |
80,118 |
Adjusted Coal Royalty and Other Operating Income | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||
June 30, |
March 31, |
June 30, | ||||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Coal royalty and other operating income |
$ |
42,084 |
$ |
61,153 |
$ |
35,094 |
$ |
77,178 |
$ |
105,552 |
||||||||||
Add: asset impairments |
— |
91 |
1,778 |
1,778 |
1,984 |
|||||||||||||||
Less: Non-cash revenue associated with lease modifications and terminations |
(972) |
(35,451) |
(290) |
(1,262) |
(36,788) |
|||||||||||||||
Less: gains on asset sales |
(3,184) |
1,080 |
(29) |
(3,213) |
(20,845) |
|||||||||||||||
Adjusted coal royalty and other operating income |
$ |
37,928 |
$ |
26,873 |
$ |
36,553 |
74,481 |
49,903 |
Adjusted Revenue and Other Income | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||
June 30, |
March 31, |
June 30, | ||||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Revenue and other income |
$ |
94,931 |
$ |
118,246 |
88,697 |
$ |
183,628 |
$ |
214,073 |
|||||||||||
Less: Non-cash revenue associated with lease modifications and terminations |
(972) |
(35,451) |
(290) |
(1,262) |
(36,788) |
|||||||||||||||
Less: gains on asset sales |
(3,361) |
1,071 |
(44) |
(3,405) |
(20,854) |
|||||||||||||||
Adjusted revenue and other income |
$ |
90,598 |
$ |
83,866 |
$ |
88,363 |
$ |
178,961 |
$ |
156,431 |
||||||||||
Adjusted Corporate & Financing Costs | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||
June 30, |
March 31, |
June 30, | ||||||||||||||||||
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
(3,292) |
$ |
(26,147) |
$ |
(26,878) |
(30,170) |
$ |
(52,959) |
|||||||||||
Add: debt modification expense |
132 |
— |
7,807 |
7,939 |
||||||||||||||||
Add: loss on extinguishment of debt |
4,107 |
— |
4,107 |
|||||||||||||||||
Add: warrant issuance expense |
— |
— |
5,709 |
5,709 |
||||||||||||||||
Add: performance based incentive compensation expense |
— |
— |
3,847 |
3,847 |
||||||||||||||||
Less: fair value adjustments for warrant liabilities |
(23,960) |
— |
(16,569) |
(40,529) |
||||||||||||||||
Adjusted corporate and financing costs |
$ |
(23,013) |
$ |
(26,147) |
$ |
(26,084) |
$ |
(49,097) |
$ |
(52,959) |
||||||||||
Natural Resource Partners L.P. | ||||
Reconciliation of Non-GAAP Measures | ||||
Consolidated Debt-to-Adjusted EBITDA Ratios | ||||
(In thousands, except ratios) | ||||
Last Twelve Months Ended June 30, 2017 |
||||
Net income from continuing operations |
$ |
87,018 |
||
Less: equity earnings from unconsolidated investment |
(38,755) |
|||
Less: fair value adjustments for warrant liabilities |
(40,529) |
|||
Add: distributions from unconsolidated investment |
49,000 |
|||
Add: interest expense |
89,314 |
|||
Add: debt modification expense |
7,939 |
|||
Add: warrant issuance expense |
5,709 |
|||
Add: loss on early extinguishment of debt |
4,107 |
|||
Add: depreciation, depletion and amortization |
43,491 |
|||
Add: asset impairments |
16,720 |
|||
Adjusted EBITDA |
$ |
224,014 |
||
Debt at June 30, 2017, at face value |
$ |
894,871 |
||
Debt-to-Adjusted EBITDA ratio |
4.0 |
|||
Twelve Months Ended December 31, 2016 |
||||
Net income from continuing operations |
$ |
95,214 |
||
Less: equity earnings from unconsolidated investment |
(40,061) |
|||
Add: distributions from unconsolidated investment |
46,550 |
|||
Add: interest expense |
90,570 |
|||
Add: depreciation, depletion and amortization |
46,272 |
|||
Add: asset impairments |
16,926 |
|||
Adjusted EBITDA |
$ |
255,471 |
||
Debt at December 31, 2016, at face value |
$ |
1,138,932 |
||
Debt-to-Adjusted EBITDA ratio |
4.5 |
|||
Twelve Months Ended December 31, 2015 |
||||
Net loss from continuing operations |
$ |
(260,171) |
||
Less: equity earnings from unconsolidated investment |
(49,918) |
|||
Less: gain on reserve swap |
(9,290) |
|||
Add: distributions from unconsolidated investment |
46,795 |
|||
Add: interest expense |
89,762 |
|||
Add: depreciation, depletion and amortization |
60,916 |
|||
Add: asset impairments |
384,545 |
|||
Adjusted EBITDA |
$ |
262,639 |
||
Debt at December 31, 2015, at face value |
$ |
1,387,073 |
||
Debt-to-Adjusted EBITDA ratio |
5.3 |
View original content with multimedia:http://www.prnewswire.com/news-releases/natural-resource-partners-lp-announces-second-quarter-2017-results-300500703.html
SOURCE Natural Resource Partners L.P.
HOUSTON, Aug. 8, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced that Wyatt L. Hogan, NRP's President and Chief Operating Officer, has resigned effective August 8, 2017. Craig W. Nunez, NRP's Chief Financial Officer and Treasurer, will succeed Mr. Hogan as President and Chief Operating Officer, and Christopher J. Zolas, NRP's Chief Accounting Officer, will succeed Mr. Nunez as NRP's Chief Financial Officer and Treasurer.
Mr. Hogan joined NRP in 2003 as Vice President and General Counsel, and he has served as President since 2014. Over the years, Mr. Hogan has overseen NRP's diversification efforts and strategic planning and most recently, led NRP through completion of the recapitalization transactions that strengthened NRP's balance sheet. Mr. Hogan will remain an employee of Quintana Minerals Corporation and continue to provide services to NRP as necessary to ensure a seamless transition.
"I am confident that I leave my management role with NRP being well-positioned for the future," said Mr. Hogan. "It was important to me to see NRP through the transformative transactions completed in March, and with another strong quarter reported today, NRP has a bright future. I'd like to thank everyone on the NRP team for their hard work and friendship over the last 14 years, and I look forward to continuing to work with them in a reduced capacity."
"I would like to thank Wyatt for his dedication and service to NRP and the Robertson family for so many years," said Corbin J. Robertson, Jr., NRP's Chairman and Chief Executive Officer. "Under Wyatt's leadership, NRP expanded its business into soda ash and construction aggregates and successfully navigated the worst coal markets downturn in decades. Wyatt hands over the reins after repositioning NRP for future growth and long-term unitholder value creation. He has been a friend and mentor to everyone at the company, and NRP and its Board of Directors wish him all the best in the next stage of his career.
"We also look forward to the next phase of leadership at NRP under Craig Nunez. Craig's experience both prior to and since joining NRP in 2015 will enable him to see NRP down its strategic path."
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and a construction aggregates company.
View original content with multimedia:http://www.prnewswire.com/news-releases/natural-resource-partners-announces-changes-in-senior-leadership-300500854.html
SOURCE Natural Resource Partners L.P.
HOUSTON, July 27, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today announced that the Board of Directors of its general partner declared a second quarter 2017 distribution of $0.45 per unit for NRP. The distribution will be paid on August 14, 2017 to unitholders of record on August 7, 2017.
In addition, the Board declared a second quarter distribution on NRP's 12.0% Class A Convertible Preferred Units. One-half of the distribution on the preferred units will be paid-in-kind through the issuance of 3,769 additional preferred units.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/natural-resource-partners-declares-second-quarter-2017-distributions-300495298.html
SOURCE Natural Resource Partners L.P.
HOUSTON, July 21, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced that it plans to issue its second quarter 2017 financial results before the market opens on Tuesday, August 8, 2017. Management will discuss the quarter during a conference call beginning at 10:00 a.m. Eastern that same day.
To join the conference call, dial (844) 379-6938 and provide the conference code 54804730. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. A presentation will be available on the website as well.
Audio replays of the conference call will be available through August 15. To access the replay, dial (855) 859-2056 and provide the conference code 54804730 or visit the Investor Relations section of NRP's website.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/natural-resource-partners-lp-schedules-second-quarter-2017-earnings-conference-call-300492434.html
SOURCE Natural Resource Partners L.P.
HOUSTON, May 10, 2017 /PRNewswire/ --
First Quarter 2017 Highlights
Natural Resource Partners L.P. (NYSE:NRP) today reported net income attributable to the common unitholders and general partner for the first quarter of 2017 of $14.3 million, a decrease of $9.1 million from the first quarter of 2016. NRP's first quarter 2017 results were impacted by costs associated with the recapitalization transactions and asset impairments, while both first quarter and fourth quarter 2016 results include impairment charges and gains on asset sales related to NRP's deleveraging activities. Please see table (in millions) below for comparative financial information:
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||||
March 31, |
March 31, |
December 31, |
||||||||||||||||||||||
2017 |
2016 |
Variance |
2017 |
2016 |
Variance | |||||||||||||||||||
Net income attributable to common unitholders and general partner |
$ |
14.3 |
$ |
23.4 |
$ |
(9.1) |
$ |
14.3 |
$ |
3.5 |
$ |
10.8 |
||||||||||||
Plus: Recapitalization transaction expenses |
17.4 |
— |
17.4 |
17.4 |
3.7 |
13.7 |
||||||||||||||||||
Plus: Asset impairments |
1.8 |
1.9 |
(0.1) |
1.8 |
9.2 |
(7.4) |
||||||||||||||||||
Less: Fair value adjustments for warrant liabilities |
16.6 |
— |
16.6 |
16.6 |
— |
16.6 |
||||||||||||||||||
Less: Gains on asset sales |
— |
21.9 |
(21.9) |
— |
1.8 |
(1.8) |
||||||||||||||||||
Adjusted net income |
$ |
16.9 |
$ |
3.4 |
$ |
13.5 |
$ |
16.9 |
$ |
14.6 |
$ |
2.3 |
||||||||||||
Net cash provided by operating activities |
$ |
20.2 |
$ |
26.7 |
$ |
(6.5) |
$ |
20.2 |
$ |
25.2 |
$ |
(5.0) |
||||||||||||
Adjusted EBITDA(1) |
$ |
51.3 |
$ |
63.9 |
$ |
(12.6) |
$ |
51.3 |
$ |
51.1 |
$ |
0.2 |
||||||||||||
Less: Gains on asset sales |
— |
21.9 |
(21.9) |
— |
1.8 |
(1.8) |
||||||||||||||||||
Adjusted EBITDA excluding gains on asset sales |
$ |
51.3 |
$ |
42.0 |
$ |
9.3 |
$ |
51.3 |
$ |
49.3 |
$ |
2.0 |
(1) Reconciliations for all non-GAAP items are shown in the table above or in the tables at the end of this release. |
"The first quarter of 2017 was a transformational quarter for NRP, as we completed the recapitalization transactions that strengthened our balance sheet, extended our debt maturities, and enhanced our liquidity," said Wyatt Hogan, President and Chief Operating Officer. "From an operations perspective, we realized the benefits of materially higher metallurgical coal pricing, as well as increased production from our Illinois Basin properties, reflecting a stronger thermal coal market. In addition, our soda ash business posted a solid quarter relative to the first quarter of 2016."
Business Results and Outlook
The table below presents NRP's business results by segment for the three months ended March 31, 2017, March 31, 2016 and December 31, 2016:
Operating Business Segments |
|||||||||||||||
Coal |
Corporate |
||||||||||||||
Soda Ash |
VantaCore |
Total | |||||||||||||
($ In thousands) | |||||||||||||||
Three Months Ended March 31, 2017 |
|||||||||||||||
Revenues and other income |
51,138 |
10,294 |
27,221 |
— |
88,653 |
||||||||||
Gains on asset sales |
29 |
— |
15 |
— |
44 |
||||||||||
Total revenues and other income |
51,167 |
10,294 |
27,236 |
— |
88,697 |
||||||||||
Asset impairments |
1,778 |
— |
— |
— |
1,778 |
||||||||||
Net income (loss) from continuing operations |
35,094 |
10,294 |
(1,539) |
(26,878) |
16,971 |
||||||||||
Adjusted EBITDA (1) |
43,845 |
12,250 |
2,375 |
(7,185) |
51,285 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
37,932 |
12,250 |
4,046 |
(33,739) |
20,489 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
6 |
— |
(2,074) |
— |
(2,068) |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
16 |
— |
(96) |
54,233 |
54,153 |
||||||||||
Distributable Cash Flow (1) |
37,937 |
12,250 |
2,099 |
(33,739) |
18,547 |
||||||||||
Three Months Ended March 31, 2016 |
|||||||||||||||
Revenues and other income |
39,418 |
9,801 |
24,682 |
— |
73,901 |
||||||||||
Gains on asset sales |
21,925 |
— |
— |
— |
21,925 |
||||||||||
Total revenues and other income |
61,343 |
9,801 |
24,682 |
— |
95,826 |
||||||||||
Asset impairments |
1,893 |
— |
— |
— |
1,893 |
||||||||||
Net income (loss) from continuing operations |
44,418 |
9,801 |
(1,057) |
(26,811) |
26,351 |
||||||||||
Adjusted EBITDA (1) |
53,251 |
12,250 |
2,505 |
(4,153) |
63,853 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
21,561 |
12,250 |
6,113 |
(17,236) |
22,688 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
42,959 |
— |
(1,418) |
— |
41,541 |
||||||||||
Net cash used in financing activities of continuing operations |
— |
(7,232) |
(800) |
(46,782) |
(54,814) |
||||||||||
Distributable Cash Flow (1) |
64,520 |
12,250 |
4,866 |
(17,236) |
64,400 |
||||||||||
Three Months Ended December 31, 2016 |
|||||||||||||||
Revenues and other income |
44,271 |
9,319 |
32,721 |
— |
86,311 |
||||||||||
Gains on asset sales |
1,798 |
— |
3 |
— |
1,801 |
||||||||||
Total revenues and other income |
46,069 |
9,319 |
32,724 |
— |
88,112 |
||||||||||
Asset impairments |
8,180 |
— |
1,065 |
— |
9,245 |
||||||||||
Net income (loss) from continuing operations |
24,014 |
9,319 |
997 |
(30,519) |
3,811 |
||||||||||
Adjusted EBITDA (1) |
40,464 |
12,250 |
5,555 |
(7,214) |
51,055 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
43,118 |
12,250 |
3,720 |
(32,992) |
26,096 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
7,223 |
— |
(790) |
— |
6,433 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
16 |
— |
(232) |
(84,334) |
(84,550) |
||||||||||
Distributable Cash Flow (1) |
50,341 |
12,250 |
3,132 |
(32,992) |
32,731 |
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Segment Information
Coal Royalty and Other
NRP continued to benefit from higher metallurgical coal prices in the first quarter of 2017, with substantially increased price realizations in Central and Southern Appalachia as compared to the first quarter of 2016. Metallurgical coal prices increased significantly over the course of 2016, peaking in the fourth quarter primarily as a result of supply rationalizations in China. While prices retreated in the first quarter of 2017 as more production came on the market, they remained significantly higher than in the comparable period in 2016. Following another recent spike caused by Cyclone Debbie at the end of March, metallurgical coal prices are in the process of again returning to more sustainable long-term levels. Over the remainder of 2017, NRP expects prices to remain above the lows experienced in the first half of 2016. NRP derived approximately 59% of its coal royalty revenues and 38% of its coal production from metallurgical coal in the first quarter. The domestic thermal coal markets have also shown modest improvements, as production cuts over the last year have rationalized coal stockpiles, and we saw increased thermal coal production from our Illinois Basin properties. Although a mild winter has tempered demand for thermal coal, natural gas prices remain higher than 2016, causing thermal coal to be more competitive for electricity generation as compared to recent years. Despite these improvements, producers of Central Appalachian thermal coal continue to face challenges, as many still have large debt burdens and their production costs remain high relative to sales prices.
Coal royalty and other revenue for the quarter was $51.2 million and coal royalty and other operating income was $35.1 million, representing sequential increases of 11% and 46% respectively. Compared to the same period of 2016, coal royalty and other revenue declined 17% and coal royalty and other operating income declined 21%. After adjusting for impairment charges and gains on asset sales, coal royalty and other revenue and coal royalty and other operating income posted sequential increases of 16% and 21% respectively, and year-over-year growth of 30% and 51%, respectively.
Soda Ash
Revenues and other income related to our equity investment in Ciner Wyoming increased $0.5 million, or 5%, from $9.8 million in the three months ended March 31, 2016 to $10.3 million in the three months ended March 31, 2017. The positive variance was primarily driven by higher sales volumes combined with lower variable and SG&A costs. In the first quarter of 2017, Ciner also benefited from higher than anticipated ANSAC pricing in Asia, which was offset in part by lower prices in North and South America. NRP received $12.3 million in cash distributions from Ciner Wyoming in the first quarter of both 2017 and 2016.
VantaCore
VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal, with the first quarter being the slowest. Revenue for the first quarter was $27.2 million, and VantaCore recorded a net loss of $1.5 million, which was in line with expectations for the quarter.
Debt Reduction and Liquidity
During the first quarter of 2017, NRP completed the recapitalization transactions to improve liquidity and strengthen its balance sheet. As of April 3, 2017, NRP had reduced its debt by $236 million from December 31, 2016 and extended $575 million of its 2018 debt maturities as of December 31, 2016 to 2020 and 2022. NRP remains focused on further reducing its debt and repositioning the partnership for long-term growth. During the three months ended March 31, 2017, NRP repaid $210 million outstanding under Opco's credit facility, $40.8 million of Opco's senior notes and $0.2 million of Opco's utility local improvement obligation. These repayments were partially offset by the issuance of $105.0 million of new senior notes due 2022. On April 3, 2017, NRP redeemed $90 million in principal amount of its 2018 notes at a price of 104.563%. NRP expects to redeem the remaining $94 million of 2018 notes at par in October 2017 using cash on hand and borrowings under Opco's credit facility.
First Quarter 2017 Distributions
On April 25, 2017, the Board of Directors of GP Natural Resource Partners LLC declared a distribution of $0.45 per unit to be paid by the Partnership on May 12, 2017 to common unitholders of record on May 5, 2017. In addition, the Board declared a distribution on NRP's 12.0% Class A Convertible Preferred Units with respect to the period such units were outstanding during the first quarter. One-half of the distribution on the preferred units will be paid-in-kind through the issuance of 1,250 additional preferred units.
Conference Call
A conference call will be held today at 11:00 a.m. ET. To join the conference call, dial (844) 379-6938 and provide the conference code 99679107. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com.
Audio replays of the conference call will be available for approximately one week. To access the replay, dial (855) 859-2056 and provide the conference code 99679107 or visit the Investor Relations section of NRP's website.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swaps, fair value adjustments for warrant liabilities and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, debt modification expense, warrant issuance expense, 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, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. 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" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets, including those included in discontinued operations, and returns of long-term contract receivables—affiliate; 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. DCF 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 the Partnership's ability to make cash distributions to our common and preferred unitholders and our general partner and repay debt.
"Adjusted Net Income" is a non-GAAP financial measure that we define as Net income attributable to common unitholders and general partner, plus recapitalization transaction expenses and asset impairments; less fair value adjustments for warrant liabilities and gains on asset sales. Adjusted net income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted net income is useful in evaluating our financial performance because restructuring transaction expenses are one time charges, gains on asset sales are not related to the operations of our business and asset impairments and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net income allows us to better compare results period-over-period. Reconciliations of Net income attributable to common unitholders and general partner to Adjusted net income are included in the table on the first page of this release.
"Adjusted EBITDA Excluding Gains on Asset Sales" is a non-GAAP financial measure that we define as Adjusted EBITDA (a non-GAAP measure defined above) less gains on asset sales. Adjusted EBITDA excluding gains on asset sales should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted EBITDA excluding gains on asset sales is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from net income allows us to better compare results period-over-period. Reconciliations of Net income (loss) from continuing operations to Adjusted EBITDA and Adjusted EBITDA to Adjusted EBITDA excluding gains on asset sales are included in the tables attached to this release.
"Adjusted Coal Royalty and Other Revenue" is a non-GAAP financial measure that we define as Coal royalty and other revenues less gains on asset sales. Adjusted coal royalty and other revenue should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other revenue useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from Coal royalty and other revenue allows us to better compare results period-over-period. Reconciliations of Coal royalty and other revenue to Adjusted coal royalty and other revenue are included in the tables attached to this release.
"Adjusted Coal Royalty and Other Operating Income" is a non-GAAP financial measure that we define as Coal royalty and other operating income plus asset impairments less gains on asset sales. Adjusted coal royalty and other operating income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other operating income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and asset impairments are non-cash charges and excluding these from Coal royalty and other operating income allows us to better compare results period-over-period. Reconciliations of Coal royalty and other operating income to Adjusted coal royalty and other operating income are included in the tables attached to this release.
"Adjusted Revenue and Other Income" is a non-GAAP financial measure that we define as Revenue and other income less gains on asset sales. Adjusted revenue and other income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted revenue and other income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and excluding these from revenues and other income allows us to better compare results period-over-period. Reconciliations of Revenue and other income to Adjusted revenue and other income are included in the tables attached to this release.
"Adjusted Corporate and Financing Costs" is a non-GAAP financial measure that we define as Corporate and financing net loss from continuing operations plus debt modification expense, warrant issuance expense and performance based incentive compensation expense less fair value adjustments for warrant liabilities. Adjusted corporate and financing costs should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted corporate and financing costs is useful in evaluating our financial performance because debt modification expense, warrant issuance expense and performance based incentive compensation expense are one time charges and fair value adjustments for warrant liabilities are non-cash charges and excluding these from net loss allows us to better compare results period-over-period. Reconciliations of Corporate and financing net loss from continuing operations to Adjusted corporate and financing costs are included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, 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.
-Financial Tables Follow-
Natural Resource Partners L.P. | |||||||||||
Financial Tables | |||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||
(In thousands, except per unit data) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | |||||||||||
March 31, |
December 31, | ||||||||||
2017 |
2016 |
2016 | |||||||||
Revenues and other income: |
|||||||||||
Coal royalty and other |
$ |
34,994 |
$ |
28,849 |
$ |
28,184 |
|||||
Coal royalty and other—affiliates |
16,144 |
10,569 |
16,087 |
||||||||
VantaCore |
27,221 |
24,682 |
32,721 |
||||||||
Equity in earnings of Ciner Wyoming |
10,294 |
9,801 |
9,319 |
||||||||
Gain on asset sales, net |
44 |
21,925 |
1,801 |
||||||||
Total revenues and other income |
88,697 |
95,826 |
88,112 |
||||||||
Operating expenses: |
|||||||||||
Operating and maintenance expenses |
29,628 |
26,785 |
31,797 |
||||||||
Operating and maintenance expenses—affiliates, net |
2,555 |
3,484 |
977 |
||||||||
Depreciation, depletion and amortization |
9,724 |
9,780 |
10,906 |
||||||||
Amortization expense—affiliate |
768 |
722 |
857 |
||||||||
General and administrative |
6,078 |
3,235 |
6,303 |
||||||||
General and administrative—affiliates |
1,124 |
937 |
921 |
||||||||
Asset impairments |
1,778 |
1,893 |
9,245 |
||||||||
Total operating expenses |
51,655 |
46,836 |
61,006 |
||||||||
Income from operations |
37,042 |
48,990 |
27,106 |
||||||||
Other income (expense) |
|||||||||||
Interest expense |
(23,141) |
(22,196) |
(23,305) |
||||||||
Interest expense—affiliate |
— |
(462) |
— |
||||||||
Debt modification expense |
(7,807) |
— |
— |
||||||||
Warrant issuance expense |
(5,709) |
— |
— |
||||||||
Fair value adjustments for warrant liabilities |
16,569 |
— |
— |
||||||||
Interest income |
17 |
19 |
10 |
||||||||
Other expense, net |
(20,071) |
(22,639) |
(23,295) |
||||||||
Net income from continuing operations |
16,971 |
26,351 |
3,811 |
||||||||
Loss from discontinued operations |
(207) |
(2,924) |
(323) |
||||||||
Net income |
$ |
16,764 |
$ |
23,427 |
$ |
3,488 |
|||||
Less: income attributable to preferred unitholders |
(2,500) |
— |
— |
||||||||
Net income attributable to common unitholders and general partner |
$ |
14,264 |
$ |
23,427 |
$ |
3,488 |
|||||
Income from continuing operations per common unit |
|||||||||||
Basic |
$ |
1.17 |
$ |
2.12 |
$ |
0.31 |
|||||
Diluted |
0.03 |
2.12 |
0.31 |
||||||||
Net income per common unit |
|||||||||||
Basic |
$ |
1.15 |
$ |
1.88 |
$ |
0.28 |
|||||
Diluted |
0.02 |
1.88 |
0.28 |
||||||||
Net income |
$ |
16,764 |
$ |
23,427 |
$ |
3,488 |
|||||
Add: comprehensive income (loss) from unconsolidated investment and other |
(1,132) |
(545) |
1,178 |
||||||||
Comprehensive income |
$ |
15,632 |
$ |
22,882 |
$ |
4,666 |
Natural Resource Partners L.P. | ||||||||||||
Financial Tables | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, |
December 31, | |||||||||||
2017 |
2016 |
2016 | ||||||||||
Cash flows from operating activities: |
||||||||||||
Net income |
$ |
16,764 |
$ |
23,427 |
$ |
3,488 |
||||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: |
||||||||||||
Depreciation, depletion and amortization |
9,724 |
9,780 |
10,906 |
|||||||||
Amortization expense—affiliates |
768 |
722 |
857 |
|||||||||
Distributions from equity earnings from unconsolidated investment |
12,250 |
12,250 |
12,250 |
|||||||||
Equity earnings from unconsolidated investment |
(10,294) |
(9,801) |
(9,319) |
|||||||||
Gain on asset sales, net |
(44) |
(21,925) |
(1,801) |
|||||||||
Fair value adjustments for warrant liabilities |
(16,569) |
— |
— |
|||||||||
Debt modification expense |
7,807 |
— |
— |
|||||||||
Warrant issuance expense |
5,709 |
— |
— |
|||||||||
Loss from discontinued operations |
207 |
2,924 |
323 |
|||||||||
Asset impairments |
1,778 |
1,893 |
9,245 |
|||||||||
Other, net |
1,090 |
2,266 |
1,590 |
|||||||||
Other, net—affiliates |
887 |
1,783 |
145 |
|||||||||
Change in operating assets and liabilities: |
||||||||||||
Accounts receivable |
(1,267) |
3,955 |
772 |
|||||||||
Accounts receivable—affiliates |
(947) |
(1,070) |
399 |
|||||||||
Accounts payable |
986 |
280 |
72 |
|||||||||
Accounts payable—affiliates |
256 |
225 |
110 |
|||||||||
Accrued liabilities |
(8,080) |
1,274 |
(2,669) |
|||||||||
Accrued liabilities—affiliates |
— |
457 |
— |
|||||||||
Deferred revenue |
1,077 |
(4,063) |
4,881 |
|||||||||
Deferred revenue—affiliates |
(2,897) |
(985) |
(3,032) |
|||||||||
Other items, net |
1,284 |
(704) |
(2,121) |
|||||||||
Net cash provided by operating activities of continuing operations |
20,489 |
22,688 |
26,096 |
|||||||||
Net cash provided by (used in) operating activities of discontinued operations |
(284) |
3,972 |
(855) |
|||||||||
Net cash provided by operating activities |
20,205 |
26,660 |
25,241 |
|||||||||
Cash flows from investing activities: |
||||||||||||
Proceeds from sale of oil and gas royalty properties |
(548) |
32,848 |
6,880 |
|||||||||
Proceeds from sale of coal and aggregates royalty properties |
139 |
9,802 |
(25) |
|||||||||
Return of long-term contract receivables—affiliate |
414 |
309 |
391 |
|||||||||
Proceeds from sale of plant and equipment and other |
22 |
3 |
164 |
|||||||||
Acquisition of plant and equipment and other |
(2,095) |
(1,421) |
(977) |
|||||||||
Net cash provided by (used in) investing activities of continuing operations |
(2,068) |
41,541 |
6,433 |
|||||||||
Net cash provided by (used in) investing activities of discontinued operations |
29 |
(2,725) |
51 |
|||||||||
Net cash provided by (used in) investing activities |
(2,039) |
38,816 |
6,484 |
|||||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from issuance of Convertible Preferred Units and Warrants, net |
242,100 |
— |
— |
|||||||||
Proceeds from issuance of 2022 Senior Notes, net |
103,688 |
— |
— |
|||||||||
Repayments of loans |
(251,010) |
(41,166) |
(76,967) |
|||||||||
Distributions to common unitholders and general partner |
(5,615) |
(5,616) |
(5,616) |
|||||||||
Contributions to discontinued operations |
(255) |
— |
(805) |
|||||||||
Debt issue costs and other |
(34,755) |
(8,032) |
(1,162) |
|||||||||
Net cash provided by (used in) financing activities of continuing operations |
54,153 |
(54,814) |
(84,550) |
|||||||||
Net cash provided by (used in) financing activities of discontinued operations |
255 |
(10,338) |
805 |
|||||||||
Net cash provided by (used in) financing activities |
54,408 |
(65,152) |
(83,745) |
|||||||||
Net increase (decrease) in cash and cash equivalents |
72,574 |
324 |
(52,020) |
|||||||||
Cash and cash equivalents of continuing operations at beginning of period |
40,371 |
41,204 |
92,391 |
|||||||||
Cash and cash equivalents of discontinued operations at beginning of period |
— |
10,569 |
— |
|||||||||
Cash and cash equivalents at beginning of period |
40,371 |
51,773 |
92,391 |
|||||||||
Cash and cash equivalents at end of period |
112,945 |
52,097 |
40,371 |
|||||||||
Less: cash and cash equivalents of discontinued operations at end of period |
— |
1,478 |
— |
|||||||||
Cash and cash equivalents of continuing operations at end of period |
$ |
112,945 |
$ |
50,619 |
$ |
40,371 |
||||||
Supplemental cash flow information: |
||||||||||||
Cash paid during the period for interest |
$ |
19,851 |
$ |
13,181 |
$ |
29,631 |
||||||
Non-cash financing activities: |
||||||||||||
Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes |
$ |
240,638 |
$ |
— |
$ |
— |
Natural Resource Partners L.P. | |||||||
Financial Tables | |||||||
Consolidated Balance Sheets | |||||||
(In thousands, except unit data) | |||||||
March 31, |
December 31, | ||||||
2017 |
2016 | ||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
112,945 |
$ |
40,371 |
|||
Accounts receivable, net |
44,470 |
43,202 |
|||||
Accounts receivable—affiliates, net |
7,605 |
6,658 |
|||||
Inventory |
7,624 |
6,893 |
|||||
Prepaid expenses and other |
4,122 |
6,137 |
|||||
Current assets of discontinued operations |
991 |
991 |
|||||
Current assets held for sale |
17,500 |
— |
|||||
Total current assets |
195,257 |
104,252 |
|||||
Land |
12,591 |
25,252 |
|||||
Plant and equipment, net |
48,579 |
49,443 |
|||||
Mineral rights, net |
895,071 |
908,192 |
|||||
Intangible assets, net |
3,065 |
3,236 |
|||||
Intangible assets, net—affiliate |
49,043 |
49,811 |
|||||
Equity in unconsolidated investment |
252,803 |
255,901 |
|||||
Long-term contracts receivable—affiliate |
42,619 |
43,785 |
|||||
Other assets |
9,270 |
3,791 |
|||||
Other assets—affiliate |
952 |
1,018 |
|||||
Total assets |
$ |
1,509,250 |
$ |
1,444,681 |
|||
LIABILITIES AND CAPITAL |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
6,538 |
$ |
6,234 |
|||
Accounts payable—affiliates |
1,196 |
940 |
|||||
Accrued liabilities |
33,509 |
41,587 |
|||||
Current portion of long-term debt, net |
263,502 |
138,903 |
|||||
Current liabilities of discontinued operations |
304 |
353 |
|||||
Total current liabilities |
305,049 |
188,017 |
|||||
Deferred revenue |
46,008 |
44,931 |
|||||
Deferred revenue—affiliates |
68,735 |
71,632 |
|||||
Long-term debt, net |
707,424 |
987,400 |
|||||
Warrant liabilities |
61,417 |
— |
|||||
Other non-current liabilities |
3,102 |
4,565 |
|||||
Total liabilities |
1,191,735 |
1,296,545 |
|||||
Commitments and contingencies |
|||||||
Convertible Preferred Units (250,000 units issued and outstanding at $1,000 par value per unit; liquidation preference of $1,500 per unit) |
159,292 |
— |
|||||
Partners' capital: |
|||||||
Common unitholders' interest (12,232,006 units issued and outstanding) |
163,304 |
152,309 |
|||||
General partner's interest |
1,111 |
887 |
|||||
Accumulated other comprehensive loss |
(2,798) |
(1,666) |
|||||
Total partners' capital |
161,617 |
151,530 |
|||||
Non-controlling interest |
(3,394) |
(3,394) |
|||||
Total capital |
158,223 |
148,136 |
|||||
Total liabilities and capital |
$ |
1,509,250 |
$ |
1,444,681 |
Natural Resource Partners L.P. | ||||||||||||
Financial Tables | ||||||||||||
Operating Statistics - Coal Royalty and Other | ||||||||||||
(in thousands except per ton data) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, |
December 31, | |||||||||||
2017 |
2016 |
2016 | ||||||||||
Coal production (tons) |
||||||||||||
Appalachia |
||||||||||||
Northern |
1,206 |
1,431 |
1,833 |
|||||||||
Central |
3,699 |
3,227 |
3,176 |
|||||||||
Southern |
562 |
745 |
575 |
|||||||||
Total Appalachia |
5,467 |
5,403 |
5,584 |
|||||||||
Illinois Basin |
2,017 |
1,727 |
2,060 |
|||||||||
Northern Powder River Basin |
950 |
974 |
1,047 |
|||||||||
Total coal production |
8,434 |
8,104 |
8,691 |
|||||||||
Coal royalty revenue per ton |
||||||||||||
Appalachia |
||||||||||||
Northern |
$ |
0.50 |
$ |
0.82 |
$ |
0.36 |
||||||
Central |
5.46 |
3.25 |
4.97 |
|||||||||
Southern |
6.46 |
2.96 |
5.64 |
|||||||||
Illinois Basin |
3.30 |
3.29 |
3.92 |
|||||||||
Northern Powder River Basin |
2.63 |
2.72 |
2.22 |
|||||||||
Coal royalty revenues |
||||||||||||
Appalachia |
||||||||||||
Northern |
$ |
607 |
$ |
1,172 |
$ |
662 |
||||||
Central |
20,184 |
10,473 |
15,788 |
|||||||||
Southern |
3,632 |
2,202 |
3,241 |
|||||||||
Total Appalachia |
24,423 |
13,847 |
19,691 |
|||||||||
Illinois Basin |
6,646 |
5,686 |
8,069 |
|||||||||
Northern Powder River Basin |
2,498 |
2,652 |
2,323 |
|||||||||
Gulf Coast |
— |
— |
1 |
|||||||||
Total coal royalty revenue |
$ |
33,567 |
$ |
22,185 |
$ |
30,084 |
||||||
Other revenues |
||||||||||||
Minimums recognized as revenue |
$ |
5,196 |
$ |
6,964 |
$ |
4,136 |
||||||
Transportation and processing fees |
4,639 |
4,234 |
3,673 |
|||||||||
Property tax revenue |
2,698 |
3,305 |
1,558 |
|||||||||
Wheelage |
1,267 |
413 |
577 |
|||||||||
Coal override revenue |
824 |
210 |
799 |
|||||||||
Hard mineral royalty revenues |
1,244 |
890 |
969 |
|||||||||
Oil and gas royalty revenues |
1,491 |
373 |
999 |
|||||||||
Other |
212 |
844 |
1,476 |
|||||||||
Total other revenues |
$ |
17,571 |
$ |
17,233 |
$ |
14,187 |
||||||
Coal royalty and other income |
51,138 |
39,418 |
44,271 |
|||||||||
Gain on coal royalty and other segment asset sales |
29 |
21,925 |
1,798 |
|||||||||
Total coal royalty and other segment revenues and other income |
$ |
51,167 |
$ |
61,343 |
$ |
46,069 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended March 31, 2017 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
37,932 |
$ |
12,250 |
$ |
4,046 |
$ |
(33,739) |
$ |
20,489 |
||||||||||
Add: proceeds from sale of PP&E |
— |
— |
22 |
— |
22 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
(409) |
— |
— |
— |
(409) |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
414 |
— |
— |
— |
414 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(1,969) |
— |
(1,969) |
|||||||||||||||
Distributable cash flow |
$ |
37,937 |
$ |
12,250 |
$ |
2,099 |
$ |
(33,739) |
$ |
18,547 |
||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
21,561 |
$ |
12,250 |
$ |
6,113 |
$ |
(17,236) |
$ |
22,688 |
||||||||||
Add: proceeds from sale of PP&E |
— |
— |
3 |
— |
3 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
42,650 |
— |
— |
— |
42,650 |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
309 |
— |
— |
— |
309 |
|||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(1,250) |
— |
(1,250) |
|||||||||||||||
Distributable cash flow |
$ |
64,520 |
$ |
12,250 |
$ |
4,866 |
$ |
(17,236) |
$ |
64,400 |
||||||||||
Three Months Ended December 31, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
43,118 |
$ |
12,250 |
$ |
3,720 |
$ |
(32,992) |
$ |
26,096 |
||||||||||
Add: proceeds from sale of PP&E |
— |
— |
164 |
— |
164 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
6,855 |
— |
— |
— |
6,855 |
|||||||||||||||
Add: proceeds from sale of assets included in discontinued operations |
— |
— |
— |
— |
(17) |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
391 |
— |
— |
— |
391 |
|||||||||||||||
Less: maintenance capital expenditures |
(23) |
— |
(752) |
— |
(775) |
|||||||||||||||
Distributable cash flow |
$ |
50,341 |
$ |
12,250 |
$ |
3,132 |
$ |
(32,992) |
$ |
32,714 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended March 31, 2017 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
35,094 |
$ |
10,294 |
$ |
(1,539) |
$ |
(26,878) |
$ |
16,971 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(10,294) |
— |
— |
(10,294) |
|||||||||||||||
Less: fair value adjustments for warrant liabilities |
— |
— |
— |
(16,569) |
(16,569) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
395 |
22,746 |
23,141 |
|||||||||||||||
Add: debt modification expense |
— |
— |
— |
7,807 |
7,807 |
|||||||||||||||
Add: warrant issuance expense |
— |
— |
— |
5,709 |
5,709 |
|||||||||||||||
Add: depreciation, depletion and amortization |
6,973 |
— |
3,519 |
— |
10,492 |
|||||||||||||||
Add: asset impairments |
1,778 |
— |
— |
— |
1,778 |
|||||||||||||||
Adjusted EBITDA |
$ |
43,845 |
$ |
12,250 |
$ |
2,375 |
$ |
(7,185) |
$ |
51,285 |
||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
44,418 |
$ |
9,801 |
$ |
(1,057) |
$ |
(26,811) |
$ |
26,351 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(9,801) |
— |
— |
(9,801) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
22,658 |
22,658 |
|||||||||||||||
Add: depreciation, depletion and amortization |
6,940 |
— |
3,562 |
— |
10,502 |
|||||||||||||||
Add: asset impairments |
1,893 |
— |
— |
— |
1,893 |
|||||||||||||||
Adjusted EBITDA |
$ |
53,251 |
$ |
12,250 |
$ |
2,505 |
$ |
(4,153) |
$ |
63,853 |
||||||||||
Three Months Ended December 31, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
24,014 |
$ |
9,319 |
$ |
997 |
$ |
(30,519) |
$ |
3,811 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(9,319) |
— |
— |
(9,319) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
23,305 |
23,305 |
|||||||||||||||
Add: depreciation, depletion and amortization |
8,270 |
— |
3,493 |
— |
11,763 |
|||||||||||||||
Add: asset impairments |
8,180 |
— |
1,065 |
— |
9,245 |
|||||||||||||||
Adjusted EBITDA |
$ |
40,464 |
$ |
12,250 |
$ |
5,555 |
$ |
(7,214) |
$ |
51,055 |
Natural Resource Partners L.P. | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||
Adjusted Coal Royalty and Other Revenue | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, |
December 31, | |||||||||||
2017 |
2016 |
2016 | ||||||||||
(Unaudited) | ||||||||||||
Coal royalty and other revenue |
$ |
51,167 |
$ |
61,343 |
$ |
46,069 |
||||||
Less: gains on asset sales |
(29) |
(21,925) |
(1,798) |
|||||||||
Adjusted coal royalty and other revenue |
$ |
51,138 |
$ |
39,418 |
$ |
44,271 |
Adjusted Coal Royalty and Other Operating Income | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, |
December 31, | |||||||||||
2017 |
2016 |
2016 | ||||||||||
(Unaudited) | ||||||||||||
Coal royalty and other operating income |
$ |
35,094 |
$ |
44,418 |
$ |
24,014 |
||||||
Add: asset impairments |
1,778 |
1,893 |
8,180 |
|||||||||
Less: gains on asset sales |
(29) |
(21,925) |
(1,798) |
|||||||||
Adjusted coal royalty and other operating income |
$ |
36,843 |
$ |
24,386 |
$ |
30,396 |
Natural Resource Partners L.P. | ||||||||||||
Reconciliation of Non-GAAP Measures Included in Conference Call | ||||||||||||
Adjusted Revenue and Other Income | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, |
December 31, | |||||||||||
2017 |
2016 |
2016 | ||||||||||
(Unaudited) | ||||||||||||
Revenue and other income |
$ |
88,697 |
$ |
95,826 |
88,112 |
|||||||
Less: gains on asset sales |
(44) |
(21,925) |
(1,801) |
|||||||||
Adjusted revenue and other income |
$ |
88,653 |
$ |
73,901 |
$ |
86,311 |
||||||
Adjusted Corporate & Financing Costs | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, |
December 31, | |||||||||||
2017 |
2016 |
2016 | ||||||||||
(Unaudited) | ||||||||||||
Net income (loss) from continuing operations |
$ |
(26,878) |
$ |
(26,811) |
$ |
(30,519) |
||||||
Add: debt modification expense |
7,807 |
— |
— |
|||||||||
Add: warrant issuance expense |
5,709 |
— |
— |
|||||||||
Add: performance based incentive compensation expense |
3,847 |
— |
3,713 |
|||||||||
Less: fair value adjustments for warrant liabilities |
(16,569) |
— |
— |
|||||||||
Adjusted corporate and financing costs |
$ |
(26,084) |
$ |
(26,811) |
$ |
(26,806) |
SOURCE Natural Resource Partners L.P.
HOUSTON, May 2, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today announced that it plans to issue its first quarter 2017 financial results before the market opens on Wednesday, May 10, 2017. Management will discuss the quarter during a conference call beginning at 11:00 a.m. Eastern that same day.
To join the conference call, dial (844) 379-6938 and provide the conference code 99679107. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com.
Audio replays of the conference call will be available for approximately one week. To access the replay, dial (855) 859-2056 and provide the conference code 99679107 or visit the Investor Relations section of NRP's website.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
SOURCE Natural Resource Partners L.P.
HOUSTON, April 26, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today announced that the Board of Directors of its general partner declared a first quarter 2017 distribution of $0.45 per unit for NRP. The distribution will be paid on May 12, 2017 to unitholders of record on May 5, 2017.
In addition, the Board declared a distribution on NRP's 12.0% Class A Convertible Preferred Units with respect to the period such units were outstanding during the first quarter. One-half of the distribution on the preferred units will be paid-in-kind through the issuance of 1,250 additional preferred units.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
SOURCE Natural Resource Partners L.P.
HOUSTON, March 8, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced today that the 2016 tax packages for unitholders, including the individual K-1 tax information is now available on its website www.taxpackagesupport.com/naturalresource. The K-1 tax information will be mailed commencing March 10, 2017. For additional K-1 tax information and unitholder support, unitholders may call (888) 334-7102.
Investors may register on the website to:
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
SOURCE Natural Resource Partners L.P.
HOUSTON, March 6, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced today that it has filed its audited Annual Report on Form 10-K for the period ended December 31, 2016 with the Securities and Exchange Commission. The report is available for viewing or downloading on its website www.nrplp.com. Unitholders may request a hardcopy of the complete audited financial statements, free of charge, at info@nrplp.com or by contacting the partnership at 1201 Louisiana, Suite 3400, Houston, TX 77002.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
SOURCE Natural Resource Partners L.P.
HOUSTON, March 6, 2017 /PRNewswire/ --
2016 Highlights
Fourth Quarter 2016 Highlights
Closing of Recapitalization Transactions on March 2, 2017
Natural Resource Partners L.P. (NYSE:NRP) today reported net income from continuing operations attributable to the limited partners for the year ended December 31, 2016 of $93.6 million, or $7.65 per unit, an increase of $347.8 million from a loss of $254.2 million, or $(20.78) per unit, a year earlier. Net cash provided by operating activities from continuing operations was $100.6 million for the year ended December 31, 2016, a decrease of $67.9 million compared to the prior year. Adjusted EBITDA, a non-GAAP measure, was $255.5 million for the year ended December 31, 2016, a decrease of $7.1 million compared to the same period in 2015. Excluding impairments and gains on sales of assets in both years, net income from continuing operations attributable to the limited partners was $81.7 million for the year ended December 31, 2016 compared to $115.9 million for the year ended December 31, 2015. Reconciliations for all non-GAAP items are shown in tables at the end of the release.
NRP reported net income from continuing operations attributable to the limited partners for the quarter ended December 31, 2016 of $3.8 million, or $0.31 per unit, a $5.8 million decrease from the $9.6 million, or $0.79 per unit reported for the fourth quarter 2015. This decline is primarily attributed to coal lease assignment fees of $15 million that were reported in the fourth quarter of 2015. Net cash provided by operating activities from continuing operations was $26.1 million in the fourth quarter of 2016 compared to $36.3 million for the fourth quarter of 2015. Adjusted EBITDA for the fourth quarter of 2016 was $51.1 million compared to $64.6 million in the same quarter 2015. Excluding impairments and gains on sale of assets in both fourth quarters, net income from continuing operations attributable to the limited partners was $11.1 million for the quarter ended December 31, 2016 compared to $28.3 million for the quarter ended December 31, 2015.
"Although 2016 was a challenging year for the coal industry, NRP enters 2017 as a much stronger company," said Wyatt Hogan, President and Chief Operating Officer. "The recent improvements in the markets for both metallurgical and thermal coal, combined with the continued balance and diversification of our soda ash and aggregates businesses, position NRP well for the new year."
"Our successful deleveraging efforts throughout the course of 2016 culminated in the recently announced investments in NRP by Blackstone and GoldenTree, as well as the extensions of our 2018 debt maturities," said Craig Nunez, Chief Financial Officer. "We look forward to working with our new partners to continue to improve our balance sheet and explore new opportunities to grow and diversify the partnership."
Business Results and Outlook
The table below presents NRP's business results by segment for the year ended December 31, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Year Ended December 31, 2016 |
||||||||||||||||||||
Total revenues and other income |
$ |
239,183 |
$ |
40,061 |
$ |
120,815 |
$ |
— |
$ |
400,059 |
||||||||||
Total operating expenses excluding impairments (1) |
$ |
61,656 |
$ |
— |
$ |
115,162 |
$ |
20,570 |
$ |
197,388 |
||||||||||
Asset impairments |
$ |
15,861 |
$ |
— |
$ |
1,065 |
$ |
— |
$ |
16,926 |
||||||||||
Net income (loss) from continuing operations |
$ |
161,816 |
$ |
40,061 |
$ |
4,438 |
$ |
(111,101) |
$ |
95,214 |
||||||||||
Adjusted EBITDA (1) |
$ |
209,443 |
$ |
46,550 |
$ |
20,009 |
$ |
(20,531) |
$ |
255,471 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
134,490 |
$ |
46,550 |
$ |
20,400 |
$ |
(100,797) |
$ |
100,643 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
65,057 |
$ |
— |
$ |
(5,114) |
$ |
— |
$ |
59,943 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
16 |
$ |
(7,229) |
$ |
(1,825) |
$ |
(152,381) |
$ |
(161,419) |
||||||||||
Distributable Cash Flow (1) |
$ |
199,547 |
$ |
46,550 |
$ |
16,243 |
$ |
(100,797) |
$ |
271,415 |
||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||
Total revenues and other income |
$ |
250,717 |
$ |
49,918 |
$ |
139,013 |
$ |
— |
$ |
439,648 |
||||||||||
Total operating expenses excluding impairments (1) |
$ |
80,659 |
$ |
— |
$ |
132,523 |
$ |
12,348 |
$ |
225,530 |
||||||||||
Asset impairments |
$ |
378,327 |
$ |
— |
$ |
6,218 |
$ |
— |
$ |
384,545 |
||||||||||
Net income (loss) from continuing operations |
$ |
(208,248) |
$ |
49,918 |
$ |
251 |
$ |
(102,092) |
$ |
(260,171) |
||||||||||
Adjusted EBITDA (1) |
$ |
206,127 |
$ |
46,795 |
$ |
22,047 |
$ |
(12,330) |
$ |
262,639 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
204,934 |
$ |
43,029 |
$ |
23,605 |
$ |
(103,056) |
$ |
168,512 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
15,805 |
$ |
— |
$ |
(8,820) |
$ |
— |
$ |
6,985 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
(2,744) |
$ |
— |
$ |
— |
$ |
(180,520) |
$ |
(183,264) |
||||||||||
Distributable Cash Flow (1) |
$ |
217,842 |
$ |
43,029 |
$ |
18,802 |
$ |
(103,056) |
$ |
176,617 |
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
The table below presents NRP's business results by segment for the three months ended December 31, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended December 31, 2016 |
||||||||||||||||||||
Total revenues and other income |
$ |
46,069 |
$ |
9,319 |
$ |
32,724 |
$ |
— |
$ |
88,112 |
||||||||||
Total operating expenses excluding impairments (1) |
$ |
13,928 |
$ |
— |
$ |
30,609 |
$ |
7,224 |
$ |
51,761 |
||||||||||
Asset impairments |
$ |
8,180 |
$ |
— |
$ |
1,065 |
$ |
— |
$ |
9,245 |
||||||||||
Net income (loss) from continuing operations |
$ |
24,014 |
$ |
9,319 |
$ |
997 |
$ |
(30,519) |
$ |
3,811 |
||||||||||
Adjusted EBITDA (1) |
$ |
40,464 |
$ |
12,250 |
$ |
5,555 |
$ |
(7,214) |
$ |
51,055 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
43,118 |
$ |
12,250 |
$ |
3,720 |
$ |
(32,992) |
$ |
26,096 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
7,223 |
$ |
— |
$ |
(790) |
$ |
— |
$ |
6,433 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
16 |
$ |
— |
$ |
(232) |
$ |
(84,334) |
$ |
(84,550) |
||||||||||
Distributable Cash Flow (1) |
$ |
50,341 |
$ |
12,250 |
$ |
3,132 |
$ |
(32,992) |
$ |
32,714 |
||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||
Total revenues and other income |
$ |
60,713 |
$ |
13,179 |
$ |
31,979 |
$ |
— |
$ |
105,871 |
||||||||||
Total operating expenses excluding impairments (1) |
$ |
22,358 |
$ |
— |
$ |
29,368 |
$ |
2,525 |
$ |
54,251 |
||||||||||
Asset impairments |
$ |
12,821 |
$ |
— |
$ |
6,218 |
$ |
— |
$ |
19,039 |
||||||||||
Net income (loss) from continuing operations |
$ |
25,555 |
$ |
13,179 |
$ |
(3,628) |
$ |
(25,309) |
$ |
9,797 |
||||||||||
Adjusted EBITDA (1) |
$ |
49,185 |
$ |
12,250 |
$ |
5,669 |
$ |
(2,523) |
$ |
64,581 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
55,093 |
$ |
12,251 |
$ |
3,822 |
$ |
(34,845) |
$ |
36,321 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
259 |
$ |
— |
$ |
(1,403) |
$ |
— |
$ |
(1,144) |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
— |
$ |
— |
$ |
— |
$ |
(43,638) |
$ |
(43,638) |
||||||||||
Distributable Cash Flow (1) |
$ |
54,870 |
$ |
12,251 |
$ |
1,862 |
$ |
(34,845) |
$ |
34,138 |
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Coal Royalty and Other
In the fourth quarter, NRP began to realize the benefits of the significant increases in metallurgical coal prices during 2016. A number of NRP's lessees were able to take advantage of the improved markets and lock in tonnage commitments for 2017 at substantially higher prices than they realized in 2016. While spot metallurgical prices have recently retreated from the highs reached in the fourth quarter, NRP believes that the global supply/demand dynamic will support long-term metallurgical coal prices well above the lows hit in the first half of 2016. NRP derived approximately 37% of its coal royalty revenues and approximately 35% of the related production from metallurgical coal during the year ended December 31, 2016. The domestic thermal coal markets have also shown modest improvements, as production cuts over the last two years have rationalized coal stockpiles. Although a mild winter has tempered demand for thermal coal, natural gas prices remain higher than 2016, causing thermal coal to be more competitive for electricity generation as compared to recent years.
Revenues and other income decreased $11.5 million, or 5%, from $250.7 million in the year ended December 31, 2015 to $239.2 million in the year ended December 31, 2016. A $42.3 million reduction in total coal royalty revenues was caused by a 16.8 million ton reduction in sales. While all regions experienced reduced revenue, the largest decrease occurred in Central Appalachia, which continues to face challenges with respect to thermal coal production. Included in the 2016 total coal royalty and other segment revenues and other income was recognition of $40.5 million of deferred revenue associated with lease modifications and terminations and $29.1 million in gains on asset sales primarily from the sale of certain oil and gas and aggregates royalty properties. Included in the 2015 total coal royalty and other segment revenues and other income was $21.0 million in lease assignment fees and a $9.3 million gain on reserve swap. Revenues and other income for the fourth quarter of 2016 decreased $14.6 million to $46.1 million from the $60.7 million reported for the fourth quarter of 2015. The decrease was primarily due to $15.0 million in lease assignment fees received in the fourth quarter of 2015.
Net income from continuing operations increased $370.0 million, from a loss of $208.2 million in the year ended December 31, 2015 to income of $161.8 million in the year ended December 31, 2016. This increase is primarily related to $378.3 million of impairments taken in the year ended December 31, 2015. Net income from continuing operations decreased $1.5 million to $24.0 million in the fourth quarter of 2016 from the same quarter in 2015.
Adjusted EBITDA increased $3.3 million, or 2%, from $206.1 million in the year ended December 31, 2015 to $209.4 million in the year ended December 31, 2016. This increase was primarily the result of lower operating and maintenance expenses year-over-year, partially offset by lower revenues as discussed. Adjusted EBITDA of $40.5 million reported in the fourth quarter of 2016 decreased $8.7 million from 2015.
Net cash provided by operating activities of continuing operations decreased $70.4 million or 34% from $204.9 million in the year ended December 31, 2015 to $134.5 million in the year ended December 31, 2016. This decrease is primarily related to lower coal royalty production and less minimum payments received from our coal leases. Net cash provided by operating activities of continuing operations decreased $12.0 million to $43.1 million in the fourth quarter of 2016 from 2015. This decline was primarily associated with the $15.0 million of lease assignment fees received in the fourth quarter of 2015.
Net cash provided by investing activities increased $49.3 million to $65.1 million in the year ending December 31, 2016, mainly due to the sale of certain oil and gas and aggregates royalty properties in 2016. Net cash provided by financing activities increased $2.8 million from 2015 due to distributions to non-controlling interests in 2015. For the quarter ending December 31, 2016, net cash provided by investing activities rose $7.0 million to $7.2 million mainly due to the proceeds from the sale of oil and gas royalty properties in the fourth quarter of 2016, while net cash provided by financing activities for the fourth quarter were virtually flat.
Distributable cash flow of $199.5 million for the calendar year 2016 declined $18.3 million from 2015 mainly due to the change in net cash provided by operating activities of continuing operations described above less the $48.5 million of increased proceeds from the sale of mineral rights and property plant and equipment in 2016 over that of 2015. Distributable cash flow of $50.3 million in the fourth quarter of 2016 declined $4.5 million from the fourth quarter of 2015. The $15.0 million of lease assignment fees reported in the fourth quarter of 2015 were partially offset by the $6.9 million of proceeds from the sale of mineral rights received in the fourth quarter of 2016.
Soda Ash
Revenues and other income related to our equity investment in Ciner Wyoming decreased $9.8 million, or 20%, from $49.9 million in the year ended December 31, 2015 to $40.1 million in the year ended December 31, 2016. This decrease is primarily related to lower international prices compared to the prior year, in addition to higher royalty and G&A costs. These decreases were partially offset by an increase in soda ash volumes sold compared to the prior year. For the year ended December 31, 2016, NRP received $46.6 million in cash distributions from Ciner Wyoming and for the year ended December 31, 2015, NRP received $46.8 million in cash distributions. For the fourth quarter of 2016 distributions of $12.3 million were flat with the fourth quarter of 2015.
VantaCore
VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal. The largest component of the VantaCore segment is the Laurel operation in southwestern Pennsylvania, which primarily serves producers and service companies operating in the Marcellus and Utica Shales. Low natural gas prices led to a lower pace of exploration and development in those areas and had a material negative impact on Laurel's revenues as compared to 2015. VantaCore's Winn operation experienced a modest decline in revenues relative to 2015, while the McIntosh Construction and Southern operations enjoyed improvements in revenues compared to the prior year and the new Grand Rivers operation continued to grow its sales over the course of 2016.
Revenues and other income related to our VantaCore segment decreased $18.2 million, or 13%, from $139.0 million in the year ended December 31, 2015 to $120.8 million in the year ended December 31, 2016. While VantaCore's production and revenues declined in 2016 compared to 2015, its cost management efforts have enabled the business to maintain its profitability. Tonnage sold declined 5% or 0.4 million tons year-over-year to 7.0 million tons. Most metrics for the fourth quarter of 2016 were virtually flat with the fourth quarter of 2015 except for net income from continuing operations which improved $4.6 million mainly due to lower non-cash impairments booked in 2016 than in the fourth quarter of 2015.
Discontinued Operations
In July 2016, NRP Oil and Gas sold its non-operated oil and gas working interest assets in the Williston Basin and repaid the reserve-based revolving credit facility in full. The net proceeds of $109.9 million from the sale is included in the calculation of distributable cash flow and included in net cash provided by investing activities of discontinued operations on the Consolidated Statement of Cash Flows.
Corporate and Financing
Corporate and financing general and administrative expense (including affiliates) includes corporate headquarters, financing, legal and centralized treasury and accounting. These costs increased $8.3 million, or 67%, from $12.3 million in the year ended December 31, 2015 to $20.6 million in the year ended December 31, 2016 primarily due to increased legal and consulting fees associated with the implementation of our long-term plan to strengthen our balance sheet, reduce debt and enhance our liquidity and increased LTIP expense as a result of our unit price increasing in 2016 compared to decreasing in 2015 and the accelerated recognition of our LTIP awards granted in 2016. Interest expense, net was essentially flat from $89.7 million in the year ended December 31, 2015 to $90.5 million in the year ended December 31, 2016.
In 2016 NRP repaid $248.1 million of debt, including $85.0 million to repay the NRP Oil and Gas revolving credit facility in full, $82.9 million on the NRP Operating senior notes, and $80.0 million under the Opco Credit Facility.
Subsequent Events
On February 14, 2017, the Partnership paid a distribution of $0.45 per unit to unitholders of record on February 7, 2017.
On March 2, 2017, NRP completed its previously announced recapitalization transactions.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, 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, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. 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" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets including those included in discontinued operations, and returns of long-term contract receivables—affiliate, 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. DCF 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 the Partnership's ability to make cash distributions to our unitholders and our general partner and repay debt.
"Operating expenses excluding impairments" is a non-GAAP financial measure that we define as total operating expenses less asset impairments. "Operating expenses excluding impairments," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.
"Net income excluding impairments" is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, 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.
-Financial Tables Follow-
Natural Resource Partners L.P. | |||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||
(in thousands, except per unit data) | |||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Revenues and other income: |
|||||||||||||||
Coal royalty and other |
$ |
28,184 |
$ |
41,927 |
$ |
144,520 |
$ |
154,066 |
|||||||
Coal royalty and other—affiliates |
16,087 |
18,777 |
65,595 |
89,715 |
|||||||||||
VantaCore |
32,721 |
31,991 |
120,802 |
139,049 |
|||||||||||
Equity in earnings of Ciner Wyoming |
9,319 |
13,179 |
40,061 |
49,918 |
|||||||||||
Gain (loss) on asset sales |
1,801 |
(3) |
29,081 |
6,900 |
|||||||||||
Total revenues and other income |
88,112 |
105,871 |
400,059 |
439,648 |
|||||||||||
Operating expenses: |
|||||||||||||||
Operating and maintenance expenses |
31,797 |
30,605 |
119,621 |
136,943 |
|||||||||||
Operating and maintenance expenses—affiliates, net |
977 |
7,233 |
10,925 |
15,323 |
|||||||||||
Depreciation, depletion and amortization |
10,906 |
12,783 |
43,087 |
57,295 |
|||||||||||
Amortization expense—affiliate |
857 |
1,105 |
3,185 |
3,621 |
|||||||||||
General and administrative |
6,303 |
1,022 |
16,979 |
7,036 |
|||||||||||
General and administrative—affiliates |
921 |
1,503 |
3,591 |
5,312 |
|||||||||||
Asset impairments |
9,245 |
19,039 |
16,926 |
384,545 |
|||||||||||
Total operating expenses |
61,006 |
73,290 |
214,314 |
610,075 |
|||||||||||
Income (loss) from operations |
27,106 |
32,581 |
185,745 |
(170,427) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense |
(23,305) |
(22,323) |
(90,047) |
(87,911) |
|||||||||||
Interest expense—affiliate |
— |
(463) |
(523) |
(1,851) |
|||||||||||
Interest income |
10 |
2 |
39 |
18 |
|||||||||||
Other expense, net |
(23,295) |
(22,784) |
(90,531) |
(89,744) |
|||||||||||
Net income (loss) from continuing operations |
3,811 |
9,797 |
95,214 |
(260,171) |
|||||||||||
Income (loss) from discontinued operations |
(323) |
(31,583) |
1,678 |
(311,549) |
|||||||||||
Net income (loss) |
3,488 |
(21,786) |
96,892 |
(571,720) |
|||||||||||
Net income (loss) attributable to limited partners: |
|||||||||||||||
Continuing operations |
$ |
3,814 |
$ |
9,626 |
$ |
93,585 |
$ |
(254,173) |
|||||||
Discontinued operations |
(317) |
(30,952) |
1,644 |
(305,319) |
|||||||||||
Total |
3,497 |
(21,326) |
95,229 |
(559,492) |
|||||||||||
Net income (loss) attributable to the general partner: |
|||||||||||||||
Continuing operations |
$ |
(3) |
$ |
171 |
$ |
1,629 |
$ |
(5,998) |
|||||||
Discontinued operations |
(6) |
(631) |
34 |
(6,230) |
|||||||||||
Total |
$ |
(9) |
$ |
(460) |
$ |
1,663 |
$ |
(12,228) |
|||||||
Basic and diluted net income (loss) per common unit: |
|||||||||||||||
Continuing operations |
$ |
0.31 |
$ |
0.79 |
$ |
7.65 |
$ |
(20.78) |
|||||||
Discontinued operations |
(0.03) |
(2.53) |
0.13 |
(24.97) |
|||||||||||
Total |
$ |
0.28 |
$ |
(1.75) |
$ |
7.78 |
$ |
(45.75) |
|||||||
Average number of common units outstanding |
12,232 |
12,232 |
12,232 |
12,232 |
|||||||||||
Net income (loss) |
$ |
3,488 |
$ |
(21,786) |
$ |
96,892 |
$ |
(571,720) |
|||||||
Add: comprehensive income (loss) from unconsolidated investment and other |
1,178 |
198 |
486 |
(1,693) |
|||||||||||
Comprehensive income (loss) |
$ |
4,666 |
$ |
(21,588) |
$ |
97,378 |
$ |
(573,413) |
Natural Resource Partners L.P. | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Cash flows from operating activities: |
|||||||||||||||
Net income (loss) |
$ |
3,488 |
$ |
(21,786) |
$ |
96,892 |
$ |
(571,720) |
|||||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: |
|||||||||||||||
Depreciation, depletion and amortization |
10,906 |
12,783 |
43,087 |
57,295 |
|||||||||||
Amortization expense—affiliates |
857 |
1,105 |
3,185 |
3,621 |
|||||||||||
Distributions from equity earnings from unconsolidated investment |
12,250 |
12,250 |
46,550 |
46,795 |
|||||||||||
Equity earnings from unconsolidated investment |
(9,319) |
(13,179) |
(40,061) |
(49,918) |
|||||||||||
(Gain) loss on asset sales |
(1,801) |
3 |
(29,081) |
(6,900) |
|||||||||||
(Income) loss from discontinued operations |
323 |
31,583 |
(1,678) |
311,549 |
|||||||||||
Asset impairments |
9,245 |
19,039 |
16,926 |
384,545 |
|||||||||||
Gain on reserve swap |
— |
— |
— |
(9,290) |
|||||||||||
Other, net |
1,590 |
665 |
8,284 |
(7,109) |
|||||||||||
Other, net—affiliates |
145 |
1,227 |
993 |
(912) |
|||||||||||
Change in operating assets and liabilities: |
|||||||||||||||
Accounts receivable |
772 |
4,202 |
431 |
7,705 |
|||||||||||
Accounts receivable—affiliates |
399 |
1,105 |
(313) |
3,149 |
|||||||||||
Accounts payable |
72 |
(1,462) |
707 |
(3,625) |
|||||||||||
Accounts payable—affiliates |
110 |
(1,595) |
139 |
(32) |
|||||||||||
Accrued liabilities |
(2,669) |
(7,065) |
4,618 |
1,420 |
|||||||||||
Accrued liabilities—affiliates |
— |
(457) |
(456) |
— |
|||||||||||
Deferred revenue |
4,881 |
1,570 |
(35,881) |
7,605 |
|||||||||||
Deferred revenue—affiliates |
(3,032) |
(801) |
(11,222) |
(4,200) |
|||||||||||
Other items, net |
(2,121) |
(2,866) |
(2,477) |
(1,466) |
|||||||||||
Other items, net—affiliates |
— |
— |
— |
— |
|||||||||||
Net cash provided by operating activities of continuing operations |
26,096 |
36,321 |
100,643 |
168,512 |
|||||||||||
Net cash provided by (used in) operating activities of discontinued operations |
(855) |
5,753 |
7,318 |
34,912 |
|||||||||||
Net cash provided by operating activities |
25,241 |
42,074 |
107,961 |
203,424 |
|||||||||||
Cash flows from investing activities: |
|||||||||||||||
Proceeds from sale of oil and gas royalty properties |
6,880 |
— |
42,844 |
— |
|||||||||||
Proceeds from sale of coal and aggregate royalty properties |
(25) |
— |
18,189 |
3,505 |
|||||||||||
Return of long-term contract receivables—affiliate |
391 |
342 |
2,968 |
2,463 |
|||||||||||
Proceeds from sale of plant and equipment and other |
164 |
(460) |
1,350 |
11,024 |
|||||||||||
Acquisition of plant and equipment and other |
(977) |
(1,026) |
(5,408) |
(9,607) |
|||||||||||
Acquisition of mineral rights |
— |
— |
— |
(400) |
|||||||||||
Net cash provided by (used in) investing activities of continuing operations |
6,433 |
(1,144) |
59,943 |
6,985 |
|||||||||||
Net cash provided by (used in) investing activities of discontinued operations |
51 |
(4,675) |
106,872 |
(37,256) |
|||||||||||
Net cash provided by (used in) investing activities |
6,484 |
(5,819) |
166,815 |
(30,271) |
|||||||||||
Cash flows from financing activities: |
|||||||||||||||
Proceeds from loans |
— |
— |
20,000 |
100,000 |
|||||||||||
Repayments of loans |
(76,967) |
(24,808) |
(183,141) |
(165,983) |
|||||||||||
Distributions to unitholders |
(5,616) |
(5,616) |
(22,465) |
(71,758) |
|||||||||||
Distributions to non-controlling interest |
— |
— |
— |
(2,744) |
|||||||||||
Contributions from (to) discontinued operations |
(805) |
(13,000) |
39,421 |
(36,725) |
|||||||||||
Debt issue costs and other |
(1,162) |
(214) |
(15,234) |
(6,054) |
|||||||||||
Net cash used in financing activities of continuing operations |
(84,550) |
(43,638) |
(161,419) |
(183,264) |
|||||||||||
Net cash provided by (used in) financing activities of discontinued operations |
805 |
(2,000) |
(124,759) |
11,808 |
|||||||||||
Net cash used in financing activities |
(83,745) |
(45,638) |
(286,178) |
(171,456) |
|||||||||||
Net increase (decrease) in cash and cash equivalents |
(52,020) |
(9,383) |
(11,402) |
1,697 |
|||||||||||
Cash and cash equivalents of continuing operations at beginning of period |
92,391 |
49,665 |
41,204 |
48,971 |
|||||||||||
Cash and cash equivalents of discontinued operations at beginning of period |
— |
11,491 |
10,569 |
1,105 |
|||||||||||
Cash and cash equivalents at beginning of period |
92,391 |
61,156 |
51,773 |
50,076 |
|||||||||||
Cash and cash equivalents at end of period |
40,371 |
51,773 |
40,371 |
51,773 |
|||||||||||
Less: cash and cash equivalents of discontinued operations at end of period |
— |
10,569 |
— |
10,569 |
|||||||||||
Cash and cash equivalents of continuing operations at end of period |
$ |
40,371 |
$ |
41,204 |
$ |
40,371 |
$ |
41,204 |
|||||||
Supplemental cash flow information: |
|||||||||||||||
Cash paid during the period for interest |
$ |
29,631 |
$ |
29,977 |
$ |
84,380 |
$ |
85,738 |
|||||||
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities |
— |
(161) |
— |
4,304 |
Natural Resource Partners L.P. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands, except unit data) | |||||||
December 31, | |||||||
2016 |
2015 | ||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
40,371 |
$ |
41,204 |
|||
Accounts receivable, net |
43,202 |
43,633 |
|||||
Accounts receivable—affiliates, net |
6,658 |
6,345 |
|||||
Inventory |
6,893 |
7,835 |
|||||
Prepaid expenses and other |
6,137 |
4,268 |
|||||
Current assets of discontinued operations |
991 |
17,844 |
|||||
Total current assets |
104,252 |
121,129 |
|||||
Land |
25,252 |
25,022 |
|||||
Plant and equipment, net |
49,443 |
60,675 |
|||||
Mineral rights, net |
908,192 |
984,522 |
|||||
Intangible assets, net |
3,236 |
3,930 |
|||||
Intangible assets, net—affiliate |
49,811 |
52,997 |
|||||
Equity in unconsolidated investment |
255,901 |
261,942 |
|||||
Long-term contracts receivable—affiliate |
43,785 |
47,359 |
|||||
Other assets |
3,791 |
1,173 |
|||||
Other assets—affiliate |
1,018 |
1,124 |
|||||
Non-current assets of discontinued operations |
— |
110,162 |
|||||
Total assets |
$ |
1,444,681 |
$ |
1,670,035 |
|||
LIABILITIES AND CAPITAL |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
6,234 |
$ |
5,022 |
|||
Accounts payable—affiliates |
940 |
801 |
|||||
Accrued liabilities |
41,587 |
44,997 |
|||||
Accrued liabilities—affiliates |
— |
456 |
|||||
Current portion of long-term debt, net |
138,903 |
80,745 |
|||||
Current liabilities of discontinued operations |
353 |
4,388 |
|||||
Total current liabilities |
188,017 |
136,409 |
|||||
Deferred revenue |
44,931 |
80,812 |
|||||
Deferred revenue—affiliates |
71,632 |
82,853 |
|||||
Long-term debt, net |
987,400 |
1,186,681 |
|||||
Long-term debt, net—affiliate |
— |
19,930 |
|||||
Other non-current liabilities |
4,565 |
5,171 |
|||||
Non-current liabilities of discontinued operations |
— |
85,237 |
|||||
Commitments and contingencies |
|||||||
Partners' capital: |
|||||||
Common unitholders' interest (12,232,006 units outstanding) |
152,309 |
79,094 |
|||||
General partner's interest |
887 |
(606) |
|||||
Accumulated other comprehensive loss |
(1,666) |
(2,152) |
|||||
Total partners' capital |
151,530 |
76,336 |
|||||
Non-controlling interest |
(3,394) |
(3,394) |
|||||
Total capital |
148,136 |
72,942 |
|||||
Total liabilities and capital |
$ |
1,444,681 |
$ |
1,670,035 |
Natural Resource Partners L.P. | |||||||||||||||
Operating Statistics - Coal Royalty and Other | |||||||||||||||
(in thousands except per ton data) | |||||||||||||||
For the Three Months Ended December 31, |
For the Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Coal production (tons) |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern |
1,833 |
1,981 |
2,312 |
9,562 |
|||||||||||
Central |
3,176 |
3,460 |
13,222 |
16,862 |
|||||||||||
Southern |
575 |
803 |
2,776 |
3,803 |
|||||||||||
Total Appalachia |
5,584 |
6,244 |
18,310 |
30,227 |
|||||||||||
Illinois Basin |
2,060 |
2,908 |
8,116 |
11,173 |
|||||||||||
Northern Powder River Basin |
1,047 |
1,408 |
3,781 |
4,905 |
|||||||||||
Gulf Coast |
— |
(38) |
0.4 |
740 |
|||||||||||
Total coal production |
8,691 |
10,522 |
30,207 |
47,045 |
|||||||||||
Coal royalty revenue per ton |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern |
$ |
0.36 |
$ |
0.29 |
$ |
1.15 |
$ |
0.28 |
|||||||
Central |
4.97 |
3.54 |
3.64 |
3.85 |
|||||||||||
Southern |
5.64 |
4.66 |
3.84 |
4.57 |
|||||||||||
Illinois Basin |
3.92 |
3.80 |
3.66 |
3.94 |
|||||||||||
Northern Powder River Basin |
2.22 |
2.29 |
2.81 |
2.54 |
|||||||||||
Gulf Coast |
— |
11.21 |
3.28 |
3.47 |
|||||||||||
Coal royalty revenues |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern |
$ |
662 |
$ |
567 |
$ |
2,667 |
$ |
2,672 |
|||||||
Central |
15,788 |
12,261 |
48,119 |
64,877 |
|||||||||||
Southern |
3,241 |
3,744 |
10,660 |
17,390 |
|||||||||||
Total Appalachia |
19,691 |
16,572 |
61,446 |
84,939 |
|||||||||||
Illinois Basin |
8,069 |
11,043 |
29,680 |
44,063 |
|||||||||||
Northern Powder River Basin |
2,323 |
3,224 |
10,637 |
12,443 |
|||||||||||
Gulf Coast |
1 |
(426) |
1 |
2,570 |
|||||||||||
Total coal royalty revenue |
$ |
30,084 |
$ |
30,413 |
$ |
101,764 |
$ |
144,015 |
|||||||
Other revenues |
|||||||||||||||
Coal override revenue |
$ |
799 |
$ |
725 |
$ |
2,281 |
$ |
2,920 |
|||||||
Transportation and processing fees |
3,673 |
5,633 |
19,336 |
22,033 |
|||||||||||
Minimums recognized as revenue |
4,136 |
3,009 |
64,591 |
15,489 |
|||||||||||
Lease assignment fee |
— |
15,000 |
— |
21,000 |
|||||||||||
Gain on reserve swap |
— |
— |
— |
9,290 |
|||||||||||
Wheelage |
577 |
1,049 |
2,374 |
3,166 |
|||||||||||
Hard mineral royalty revenues |
969 |
538 |
3,163 |
8,090 |
|||||||||||
Oil and gas royalty revenues |
999 |
888 |
3,537 |
4,364 |
|||||||||||
Property tax revenue |
1,558 |
2,656 |
10,457 |
11,258 |
|||||||||||
Other |
1,476 |
793 |
2,612 |
2,156 |
|||||||||||
Total other revenues |
$ |
14,187 |
$ |
30,291 |
$ |
108,351 |
$ |
99,766 |
|||||||
Coal royalty and other income |
44,271 |
60,704 |
210,115 |
243,781 |
|||||||||||
Gain on coal royalty and other segment asset sales |
1,798 |
9 |
29,068 |
6,936 |
|||||||||||
Total coal royalty and other segment revenues and other income |
$ |
46,069 |
$ |
60,713 |
$ |
239,183 |
$ |
250,717 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended December 31, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
43,118 |
$ |
12,250 |
$ |
3,720 |
$ |
(32,992) |
$ |
26,096 |
||||||||||
Add: proceeds from sale of PP&E |
— |
— |
164 |
— |
164 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
6,855 |
— |
— |
— |
6,855 |
|||||||||||||||
Add: proceeds from sale of assets included in discontinued operations |
— |
— |
— |
— |
(17) |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
391 |
— |
— |
— |
391 |
|||||||||||||||
Less: maintenance capital expenditures |
(23) |
— |
(752) |
— |
(775) |
|||||||||||||||
DCF |
$ |
50,341 |
$ |
12,250 |
$ |
3,132 |
$ |
(32,992) |
$ |
32,714 |
||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
55,093 |
$ |
12,251 |
$ |
3,822 |
$ |
(34,845) |
$ |
36,321 |
||||||||||
Add: proceeds from sale of PP&E |
(478) |
— |
18 |
— |
(460) |
|||||||||||||||
Add: proceeds from sale of mineral rights |
— |
— |
— |
— |
— |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
342 |
— |
— |
— |
342 |
|||||||||||||||
Less: maintenance capital expenditures |
(87) |
— |
(1,978) |
— |
(2,065) |
|||||||||||||||
Less: distributions to non-controlling interest |
— |
— |
— |
— |
— |
|||||||||||||||
DCF |
$ |
54,870 |
$ |
12,251 |
$ |
1,862 |
$ |
(34,845) |
$ |
34,138 |
||||||||||
Year Ended December 31, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
134,490 |
$ |
46,550 |
$ |
20,400 |
$ |
(100,797) |
$ |
100,643 |
||||||||||
Add: proceeds from sale of PP&E |
1,084 |
— |
266 |
— |
1,350 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
61,033 |
— |
— |
— |
61,033 |
|||||||||||||||
Add: proceeds from sale of assets included in discontinued operations |
— |
— |
— |
— |
109,872 |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
2,968 |
— |
— |
— |
2,968 |
|||||||||||||||
Less: maintenance capital expenditures |
(28) |
— |
(4,423) |
— |
(4,451) |
|||||||||||||||
DCF |
$ |
199,547 |
$ |
46,550 |
$ |
16,243 |
$ |
(100,797) |
$ |
271,415 |
||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
204,934 |
$ |
43,029 |
$ |
23,605 |
$ |
(103,056) |
$ |
168,512 |
||||||||||
Add: proceeds from sale of PP&E |
10,100 |
— |
924 |
— |
11,024 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
3,505 |
— |
— |
— |
3,505 |
|||||||||||||||
Add: return on long-term contract receivables—affiliate |
2,463 |
— |
— |
— |
2,463 |
|||||||||||||||
Less: maintenance capital expenditures |
(416) |
— |
(5,727) |
— |
(6,143) |
|||||||||||||||
Less: distributions to non-controlling interest |
(2,744) |
— |
— |
— |
(2,744) |
|||||||||||||||
DCF |
$ |
217,842 |
$ |
43,029 |
$ |
18,802 |
$ |
(103,056) |
$ |
176,617 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended December 31, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
24,014 |
$ |
9,319 |
$ |
997 |
$ |
(30,519) |
$ |
3,811 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(9,319) |
— |
— |
(9,319) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
23,305 |
23,305 |
|||||||||||||||
Add: depreciation, depletion and amortization |
8,270 |
— |
3,493 |
— |
11,763 |
|||||||||||||||
Add: asset impairments |
8,180 |
— |
1,065 |
— |
9,245 |
|||||||||||||||
Adjusted EBITDA |
$ |
40,464 |
$ |
12,250 |
$ |
5,555 |
$ |
(7,214) |
$ |
51,055 |
||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
25,555 |
$ |
13,179 |
$ |
(3,628) |
$ |
(25,309) |
$ |
9,797 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(13,179) |
— |
— |
(13,179) |
|||||||||||||||
Less: gain on reserve swap |
— |
— |
— |
— |
— |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
22,786 |
22,786 |
|||||||||||||||
Add: depreciation, depletion and amortization |
10,809 |
— |
3,079 |
— |
13,888 |
|||||||||||||||
Add: asset impairments |
12,821 |
— |
6,218 |
— |
19,039 |
|||||||||||||||
Adjusted EBITDA |
$ |
49,185 |
$ |
12,250 |
$ |
5,669 |
$ |
(2,523) |
$ |
64,581 |
||||||||||
Year Ended December 31, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
161,816 |
$ |
40,061 |
$ |
4,438 |
$ |
(111,101) |
$ |
95,214 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(40,061) |
— |
— |
(40,061) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
46,550 |
— |
— |
46,550 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
90,570 |
90,570 |
|||||||||||||||
Add: depreciation, depletion and amortization |
31,766 |
— |
14,506 |
— |
46,272 |
|||||||||||||||
Add: asset impairments |
15,861 |
— |
1,065 |
— |
16,926 |
|||||||||||||||
Adjusted EBITDA |
$ |
209,443 |
$ |
46,550 |
$ |
20,009 |
$ |
(20,531) |
$ |
255,471 |
||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
(208,248) |
$ |
49,918 |
$ |
251 |
$ |
(102,092) |
$ |
(260,171) |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(49,918) |
— |
— |
(49,918) |
|||||||||||||||
Less: gain on reserve swap |
(9,290) |
— |
(9,290) |
|||||||||||||||||
Add: distributions from unconsolidated investment |
— |
46,795 |
— |
— |
46,795 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
89,762 |
89,762 |
|||||||||||||||
Add: depreciation, depletion and amortization |
45,338 |
— |
15,578 |
— |
60,916 |
|||||||||||||||
Add: asset impairments |
378,327 |
— |
6,218 |
— |
384,545 |
|||||||||||||||
Adjusted EBITDA |
$ |
206,127 |
$ |
46,795 |
$ |
22,047 |
$ |
(12,330) |
$ |
262,639 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Operating Expenses Excluding Impairments | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended December 31, 2016 |
||||||||||||||||||||
Total operating expenses |
$ |
22,108 |
$ |
— |
$ |
31,674 |
$ |
7,224 |
$ |
61,006 |
||||||||||
Less: asset impairments |
8,180 |
— |
1,065 |
— |
9,245 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
13,928 |
$ |
— |
$ |
30,609 |
$ |
7,224 |
$ |
51,761 |
||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||
Total operating expenses |
$ |
35,179 |
$ |
— |
$ |
35,586 |
$ |
2,525 |
$ |
73,290 |
||||||||||
Less: asset impairments |
12,821 |
— |
6,218 |
— |
19,039 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
22,358 |
$ |
— |
$ |
29,368 |
$ |
2,525 |
$ |
54,251 |
||||||||||
Year Ended December 31, 2016 |
||||||||||||||||||||
Total operating expenses |
$ |
77,517 |
$ |
— |
$ |
116,227 |
$ |
20,570 |
$ |
214,314 |
||||||||||
Less: asset impairments |
15,861 |
— |
1,065 |
— |
16,926 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
61,656 |
$ |
— |
$ |
115,162 |
$ |
20,570 |
$ |
197,388 |
||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||
Total operating expenses |
$ |
458,986 |
$ |
— |
$ |
138,741 |
$ |
12,348 |
$ |
610,075 |
||||||||||
Less: asset impairments |
378,327 |
— |
6,218 |
— |
384,545 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
80,659 |
$ |
— |
$ |
132,523 |
$ |
12,348 |
$ |
225,530 |
Non-cash impairment charges attributable to the limited partners | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended |
Year Ended | |||||||||||
December 31, |
December 31, | |||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||
(Unaudited) | ||||||||||||
Asset impairments, as reported |
9,245 |
19,039 |
16,926 |
384,545 |
||||||||
Asset impairments attributable to the limited partners |
9,060 |
18,658 |
16,587 |
376,854 |
||||||||
Asset impairments attributable to the general partners |
185 |
381 |
339 |
7,691 |
||||||||
Gain on sale of assets attributable to the limited partners | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended |
Year Ended | |||||||||||
December 31, |
December 31, | |||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||
(Unaudited) | ||||||||||||
Gain (loss) on sale of assets, as reported |
1,801 |
(3) |
29,081 |
6,900 |
||||||||
Gain (loss) on sale of assets attributable to the limited partners |
1,765 |
(3) |
28,499 |
6,762 |
||||||||
Gain (loss) on sale of assets attributable to the general partners |
36 |
— |
582 |
138 |
Natural Resource Partners L.P. | ||||||||||||||||
Net Income from Continuing Operations and Net Income from Continuing Operations Per Unit Attributable to the Limited Partners Excluding Impairments and Asset Sales | ||||||||||||||||
(in thousands, except per unit data) | ||||||||||||||||
Three Months Ended |
Year Ended | |||||||||||||||
December 31, |
December 31, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net income (loss) from continuing operations attributable to the limited partners, as reported |
$ |
3,814 |
$ |
9,626 |
$ |
93,585 |
$ |
(254,173) |
||||||||
(Gain) loss on sale of assets attributable to the limited partners |
(1,765) |
3 |
(28,499) |
(6,762) |
||||||||||||
Asset impairments attributable to the limited partners |
9,060 |
18,658 |
16,587 |
376,854 |
||||||||||||
Net income from continuing operations attributable to the limited partners excluding impairments and gain on asset sales |
$ |
11,109 |
$ |
28,287 |
$ |
81,673 |
$ |
115,919 |
||||||||
Weighted average number of common units outstanding |
12,232 |
12,232 |
12,232 |
12,232 |
||||||||||||
Net income from continuing operations per unit attributable to the limited partners excluding impairments and gain on asset sales |
$ |
0.91 |
$ |
2.31 |
$ |
6.68 |
$ |
9.48 |
SOURCE Natural Resource Partners L.P.
HOUSTON, Feb. 23, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced that it has entered into definitive agreements with current and new stakeholders in order to strengthen its balance sheet, enhance its liquidity and reposition the partnership for long-term growth. At closing of the transactions contemplated by these agreements:
In addition, NRP Operating LLC's revolving credit facility will be extended to April 2020, with commitment reductions to $180 million at closing, $150 million at December 31, 2017, and $100 million at December 31, 2018 until maturity.
"These transactions mark the culmination of a two-year strategy focused on deleveraging NRP and extending our 2018 debt maturities," said Craig Nunez, Chief Financial Officer. "Following the closing of these transactions, we intend to continue to deleverage and improve our balance sheet with the ultimate goal of returning to growth for the benefit of our unitholders."
NRP intends to use the net proceeds from the preferred unit investment and new notes issuance to redeem $90 million of the 2018 Notes and repay the NRP Operating revolving credit facility in full at closing. Following closing of the transactions announced today, NRP will have total debt of $944 million, including $346 million of the 2022 Notes, with expected maturities set forth at the end of this press release. NRP intends to redeem all remaining outstanding 2018 Notes in October 2017. The terms of the transactions are described in more detail in NRP's Current Report on Form 8-K filed today. The transactions are expected to close in early March.
"Today is the beginning of a new era for NRP," said Wyatt Hogan, President and Chief Operating Officer. "The royalty nature of our coal business, combined with the diversification of our aggregates and soda ash businesses, have enabled us to navigate an extremely difficult period in the coal industry specifically, and the energy industry more broadly. Our performance in light of industry headwinds has provided our investors and lenders the confidence to commit their capital to NRP. We are pleased to partner with such well-regarded, sophisticated investment firms as Blackstone and GoldenTree. In evaluating this investment, these firms had the vision not only to see the near-term benefits of their capital in facilitating these transactions, but also the opportunity for long-term value creation."
Blackstone will receive the right to appoint one member and one observer to the Board of Directors of GP Natural Resource Partners LLC in connection with their preferred investment in NRP. In addition, Blackstone and GoldenTree will have consent rights with respect to certain partnership actions.
"This investment reflects our confidence in NRP's strong management team and its strategy to move the company forward," said Jasvinder Khaira, Senior Managing Director at Blackstone Tactical Opportunities. "Blackstone has robust expertise and history in the natural resources sector, and we believe NRP is well positioned for success in the years ahead."
Greenhill & Co. served as financial advisors to NRP in connection with the transactions.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Cautionary Note Regarding 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, that address financial results, activities, events or developments that NRP expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by NRP based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. The assumptions used in preparing the statements may prove to be incorrect in a number of material ways and are subject to a risks and uncertainties, many of which are beyond the control of NRP. These risks include, but are not limited to, risks that the transactions described in this press release may not be consummated; commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment and other factors detailed in NRP's Securities and Exchange Commission filings. NRP has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
-table follows-
Natural Resource Partners L.P.
Pro Forma Debt Maturities
The following table summarizes NRP's long-term debt and convertible preferred unit obligations as of December 31, 2016 and as of December 31, 2016 pro forma for the recapitalization transactions announced today (in millions):
Principal Payments Due by Period | ||||||||||||||||||||||||||||
As of December 31, 2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
Thereafter |
Total | |||||||||||||||||||||
2018 Notes |
$ |
— |
$ |
425.0 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
425.0 |
||||||||||||||
Opco credit facility |
60.0 |
150.0 |
— |
— |
210.0 |
|||||||||||||||||||||||
Opco senior notes and other |
80.6 |
80.6 |
76.0 |
54.7 |
47.0 |
164.9 |
503.8 |
|||||||||||||||||||||
Total |
$ |
140.6 |
$ |
655.6 |
$ |
76.0 |
$ |
54.7 |
$ |
47.0 |
$ |
164.9 |
$ |
1,138.8 |
||||||||||||||
Principal Payments Due by Period | ||||||||||||||||||||||||||||
As of December 31, 2016 Pro Forma for Recapitalization Transactions |
2017 |
2018 |
2019 |
2020 |
2021 |
Thereafter |
Total | |||||||||||||||||||||
Preferred Units (1) |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
250.0 |
$ |
250.0 |
||||||||||||||
2022 Notes |
— |
— |
— |
— |
— |
346.0 |
346.0 |
|||||||||||||||||||||
2018 Notes (2) |
95.0 |
— |
95.0 |
|||||||||||||||||||||||||
Opco credit facility (3) |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||
Opco senior notes |
80.6 |
80.6 |
76.0 |
54.7 |
47.0 |
164.9 |
503.8 |
|||||||||||||||||||||
Total |
$ |
180.6 |
$ |
80.6 |
$ |
76.0 |
$ |
54.7 |
$ |
47.0 |
$ |
754.9 |
$ |
1,193.8 |
(1) |
Assumes no early conversion or redemption of the preferred units pursuant to the terms thereof. |
(2) |
NRP has also agreed to redeem any and all remaining outstanding 2018 Notes within 60 days after October 1, 2017. |
(3) |
Assumes no additional borrowings under the Opco revolving credit facility following closing of the recapitalization transactions. |
SOURCE Natural Resource Partners L.P.
HOUSTON, Jan. 27, 2017 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) reported today the Board of Directors of its general partner declared a fourth quarter 2016 distribution of $0.45 per unit for NRP. The distribution will be paid on February 14, 2017 to unitholders of record on February 7, 2017.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
SOURCE Natural Resource Partners L.P.
HOUSTON, Nov. 7, 2016 /PRNewswire/ --Natural Resource Partners L.P. (NYSE:NRP) today reported net income from continuing operations attributable to the limited partners for the three months ended September 30, 2016 of $16.2 million, or $1.32 per unit, an increase of $338.3 million, from a loss of $322.1 million, or $(26.34) per unit, a year earlier. Net cash provided by operating activities from continuing operations was $35.9 million in the third quarter of 2016, a decrease of $11.3 million compared to the prior year. Adjusted EBITDA, a non-GAAP measure, was $58.9 million for the three months ended September 30, 2016, a decrease of $11.5 million compared to the same period in 2015. Excluding impairments and gains on sale of assets in both years, net income from continuing operations attributable to the limited partners was $15.4 million for the quarter ended September 30, 2016 compared to $30.5 million for the same quarter last year. In addition, NRP received $109.9 million in net cash proceeds from the sale of its Williston Basin oil and gas properties (classified as discontinued operations). NRP ended the quarter with $92.4 million in cash. Reconciliations for all non-GAAP items are shown in tables at the end of the release.
"Towards the end of the third quarter we began to see the benefits from higher coal prices as a result of the rapidly improving coal market," said Wyatt Hogan, President and Chief Operating Officer. "Our large exposure to metallurgical coal should benefit NRP as the benchmark metallurgical coal prices have increased over 100% in recent months. In addition, our soda ash and construction aggregates businesses continue to perform in line with our expectations, and provide a steady source of diversified income."
Business Results and Outlook
The table below presents NRP's business results by segment for the three months ended September 30, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2016 |
||||||||||||||||||||
Total revenues and other income |
$ |
55,363 |
$ |
10,753 |
$ |
31,758 |
$ |
— |
$ |
97,874 |
||||||||||
Total operating expenses excluding impairments (2) |
$ |
17,461 |
$ |
— |
$ |
30,674 |
$ |
5,135 |
$ |
53,270 |
||||||||||
Asset impairments |
$ |
5,697 |
$ |
— |
$ |
— |
$ |
— |
$ |
5,697 |
||||||||||
Net income (loss) from continuing operations |
$ |
32,250 |
$ |
10,753 |
$ |
1,039 |
$ |
(27,623) |
$ |
16,419 |
||||||||||
Adjusted EBITDA (2) |
$ |
47,017 |
$ |
12,250 |
$ |
4,800 |
$ |
(5,132) |
$ |
58,935 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
34,997 |
$ |
12,250 |
$ |
4,357 |
$ |
(15,703) |
$ |
35,901 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
10,691 |
$ |
— |
$ |
(434) |
$ |
— |
$ |
10,257 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
— |
$ |
— |
$ |
— |
$ |
24,843 |
$ |
24,843 |
||||||||||
Distributable Cash Flow (2) |
$ |
45,683 |
$ |
12,250 |
$ |
4,093 |
$ |
(15,703) |
$ |
156,212 |
||||||||||
Three Months Ended September 30, 2015 |
||||||||||||||||||||
Total revenues and other income |
$ |
62,222 |
$ |
12,617 |
$ |
39,193 |
$ |
— |
$ |
114,032 |
||||||||||
Total operating expenses excluding impairments (2) |
$ |
19,491 |
$ |
— |
$ |
36,436 |
$ |
4,233 |
$ |
60,160 |
||||||||||
Asset impairments |
$ |
361,703 |
$ |
— |
$ |
— |
$ |
— |
$ |
361,703 |
||||||||||
Net income (loss) from continuing operations |
$ |
(318,972) |
$ |
12,617 |
$ |
2,757 |
$ |
(27,138) |
$ |
(330,736) |
||||||||||
Adjusted EBITDA (2) |
$ |
55,390 |
$ |
12,740 |
$ |
6,535 |
$ |
(4,233) |
$ |
70,432 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
40,389 |
$ |
12,762 |
$ |
5,841 |
$ |
(11,818) |
$ |
47,174 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
8,422 |
$ |
— |
$ |
(3,057) |
$ |
— |
$ |
5,365 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
— |
$ |
— |
$ |
— |
$ |
(11,678) |
$ |
(11,678) |
||||||||||
Distributable Cash Flow (2) |
$ |
48,932 |
$ |
12,762 |
$ |
4,331 |
$ |
(11,818) |
$ |
54,207 |
||||||||||
(1) |
As a result of the sale of our non-operated oil and gas working interest assets in the third quarter of 2016, the Partnership transitioned management responsibilities and reporting of its oil and gas royalty assets into the Coal Royalty and Other operating segment. The Partnership has adjusted the corresponding items of segment information for prior periods to reflect this change and eliminated its oil and gas segment. | |||||
(2) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
The table below presents NRP's business results by segment for the nine months ended September 30, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2016 |
||||||||||||||||||||
Total revenues and other income |
$ |
193,114 |
$ |
30,742 |
$ |
88,091 |
$ |
— |
$ |
311,947 |
||||||||||
Total operating expenses excluding impairments (2) |
$ |
47,728 |
$ |
— |
$ |
84,553 |
$ |
13,346 |
$ |
145,627 |
||||||||||
Asset impairments |
$ |
7,681 |
$ |
— |
$ |
— |
$ |
— |
$ |
7,681 |
||||||||||
Net income (loss) from continuing operations |
$ |
137,802 |
$ |
30,742 |
$ |
3,441 |
$ |
(80,582) |
$ |
91,403 |
||||||||||
Adjusted EBITDA (2) |
$ |
168,979 |
$ |
34,300 |
$ |
14,454 |
$ |
(13,317) |
$ |
204,416 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
91,372 |
$ |
34,300 |
$ |
16,680 |
$ |
(67,805) |
$ |
74,547 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
57,834 |
$ |
— |
$ |
(4,324) |
$ |
— |
$ |
53,510 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
— |
$ |
(7,229) |
$ |
(1,593) |
$ |
(68,047) |
$ |
(76,869) |
||||||||||
Distributable Cash Flow (2) |
$ |
149,206 |
$ |
34,300 |
$ |
13,111 |
$ |
(67,805) |
$ |
238,701 |
||||||||||
Nine Months Ended September 30, 2015 |
||||||||||||||||||||
Total revenues and other income |
$ |
190,004 |
$ |
36,739 |
$ |
107,034 |
$ |
— |
$ |
333,777 |
||||||||||
Total operating expenses excluding impairments (2) |
$ |
58,301 |
$ |
— |
$ |
103,155 |
$ |
9,823 |
$ |
171,279 |
||||||||||
Asset impairments |
$ |
365,506 |
$ |
— |
$ |
— |
$ |
— |
$ |
365,506 |
||||||||||
Net income (loss) from continuing operations |
$ |
(233,803) |
$ |
36,739 |
$ |
3,879 |
$ |
(76,783) |
$ |
(269,968) |
||||||||||
Adjusted EBITDA (2) |
$ |
156,942 |
$ |
34,545 |
$ |
16,378 |
$ |
(9,807) |
$ |
198,058 |
||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
149,841 |
$ |
30,778 |
$ |
19,783 |
$ |
(68,211) |
$ |
132,191 |
||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
15,546 |
$ |
— |
$ |
(7,417) |
$ |
— |
$ |
8,129 |
||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
(2,744) |
$ |
— |
$ |
— |
$ |
(136,882) |
$ |
(139,626) |
||||||||||
Distributable Cash Flow (2) |
$ |
162,972 |
$ |
30,778 |
$ |
16,940 |
$ |
(68,211) |
$ |
142,479 |
||||||||||
(1) |
As a result of the sale of our non-operated oil and gas working interest assets in the third quarter of 2016, the Partnership transitioned management responsibilities and reporting of its oil and gas royalty assets into the Coal Royalty and Other operating segment. The Partnership has adjusted the corresponding items of segment information for prior periods to reflect this change and eliminated its oil and gas segment. | |||||
(2) |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Coal Royalty and Other
NRP stands to benefit from recent improvements in both the thermal and metallurgical coal markets. The metallurgical coal markets in particular have improved significantly over the last few months, with global contract and spot prices in excess of $200/ton due to supply shortages caused by China's recent production cutbacks, operational disruptions in Australia, and the significant number of mine closures in the United States. As a result of the increased pricing, some of the higher-quality coal from our properties that is typically sold into the thermal market is now being sold by our lessees into the metallurgical markets, which command a higher price per ton than the thermal markets. We expect this trend to continue to the extent the metallurgical markets show sustained improvements. We derived approximately 32% of our coal royalty revenues and 37% of the related production from metallurgical coal during the nine months ended September 30, 2016. The domestic thermal coal markets have also shown modest improvements, as production cuts over the last year have rationalized coal stockpiles. Higher recent natural gas prices have also caused thermal coal to be more competitive for electricity generation.
Revenues and other income decreased $6.8 million, or 11%, from $62.2 million in the three months ended September 30, 2015 to $55.4 million in the three months ended September 30, 2016. An $10.9 million reduction in total coal royalty revenues was caused by a 4.0 million ton reduction in sales and a $0.32 per ton decrease in combined average coal royalty revenue per ton. While all regions except the Northern Powder River experienced reduced revenue, the largest decrease occurred in Central Appalachia, which continues to face challenges with respect to thermal coal production.
Net income from continuing operations increased $351.3 million, from a loss of $319.0 million in the three months ended September 30, 2015 to income of $32.3 million in the three months ended September 30, 2016. This increase is primarily related to $361.7 million of impairments taken in the third quarter of 2015.
Adjusted EBITDA decreased $8.4 million, or 15%, from $55.4 million in the three months ended September 30, 2015 to $47.0 million in the three months ended September 30, 2016. This decrease was primarily the result of lower revenues from Central Appalachian coal.
Operating cash provided by continuing operations decreased $5.4 million, or 13%, from $40.4 million in the three months ended September 30, 2015 to $35.0 million in the three months ended September 30, 2016.
Soda Ash
Revenues and other income related to our Soda Ash segment decreased $1.8 million, or 14%, from $12.6 million in the three months ended September 30, 2015 to $10.8 million in the three months ended September 30, 2016. This decrease is primarily related to lower international prices compared to the prior year, in addition to higher royalty and G&A costs. These decreases were partially offset by higher production compared to the prior year. For the three months ended September 30, 2016, we received $12.3 million in cash distributions from Ciner Wyoming and for the three months ended September 30, 2015, we received $12.7 million in cash distributions.
VantaCore
VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal. The largest component, approximately half, of the VantaCore segment is the Laurel operation in southwestern Pennsylvania, that serves producers and service companies operating in the Marcellus and Utica Shales. Low natural gas prices have led to a slowing pace of exploration and development in those areas and impacted Laurel's revenues. This decline has been offset both by increased construction revenue at Laurel and reduced costs across all of the VantaCore operations.
Revenues and other income related to our VantaCore segment decreased $7.4 million, or 19%, from $39.2 million in the three months ended September 30, 2015 to $31.8 million in the three months ended September 30, 2016. While VantaCore's production and revenues have declined in 2016 compared to 2015, it's cost management efforts have enabled the business to maintain its profitability. Tonnage sold declined 14% or 0.3 million tons quarter-over-quarter to 1.8 million tons.
Discontinued Operations
In July 2016, NRP Oil and Gas sold its non-operated oil and gas working interest assets in the Williston Basin and repaid the reserve-based revolving credit facility in full. The net proceeds of $109.9 million from the sale is included in the calculation of distributable cash flow and included in net cash provided by investing activities of discontinued operations on the Consolidated Statement of Cash Flows.
Corporate and Financing
Corporate and financing general and administrative expense (including affiliates) includes corporate headquarters, financing and centralized treasury and accounting. These costs increased $0.9 million, or 21% from $4.2 million in the three months ended September 30, 2015 to $5.1 million in the three months ended September 30, 2016 primarily due to increased legal and advisory fees related to the implementation of our long-term plan to strengthen our balance sheet, reduce debt and enhance liquidity. Interest expense, net was essentially flat from $22.9 million in the three months ended September 30, 2015 to $22.5 million in the three months ended September 30, 2016.
In the third quarter, NRP repaid $82.7 million of debt, with $7.7 million in amortization payments on the NRP Operating senior notes and $75.0 million to repay the NRP Oil and Gas revolving credit facility in full.
Subsequent Events
On October 26, 2016, the Board of Directors of GP Natural Resource Partners LLC declared a distribution of $0.45 per unit to be paid on November 14, 2016 to unitholders of record on November 7, 2016.
On November 3, NRP sold its mineral fee interests in Grant County, Oklahoma for $7.5 million in gross cash proceeds.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, 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, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. 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" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets, and returns of long-term contract receivables—affiliate, 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. DCF 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 the Partnership's ability to make cash distributions to our unitholders and our general partner and repay debt.
"Operating expenses excluding impairments" is a non-GAAP financial measure that we define as total operating expenses less asset impairments. "Operating expenses excluding impairments," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.
"Net income excluding impairments" is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, trona and soda ash, construction aggregates, crude oil and natural gas, frac sand and other natural resources; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, our ability to consummate planned asset sales and execute on our long-term strategic plan 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.
-Financial Tables Follow-
Natural Resource Partners L.P. | |||||||||||||||
Financial Tables | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(in thousands, except per unit data) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Revenues and other income: |
|||||||||||||||
Coal royalty and other |
$ |
27,504 |
$ |
40,431 |
$ |
116,336 |
$ |
112,139 |
|||||||
Coal royalty and other—affiliates |
21,434 |
19,535 |
49,508 |
70,938 |
|||||||||||
VantaCore |
31,757 |
39,616 |
88,081 |
107,058 |
|||||||||||
Equity in earnings of Ciner Wyoming |
10,753 |
12,617 |
30,742 |
36,739 |
|||||||||||
Gain on asset sales, net |
6,426 |
1,833 |
27,280 |
6,903 |
|||||||||||
Total revenues and other income |
97,874 |
114,032 |
311,947 |
333,777 |
|||||||||||
Operating expenses: |
|||||||||||||||
Operating and maintenance expenses |
31,242 |
37,746 |
87,824 |
106,338 |
|||||||||||
Operating and maintenance expenses—affiliates, net |
4,062 |
1,744 |
9,948 |
8,090 |
|||||||||||
Depreciation, depletion and amortization |
11,929 |
15,666 |
32,181 |
44,512 |
|||||||||||
Amortization expense—affiliate |
902 |
771 |
2,328 |
2,516 |
|||||||||||
General and administrative |
4,268 |
1,809 |
10,676 |
6,014 |
|||||||||||
General and administrative—affiliates |
867 |
2,424 |
2,670 |
3,809 |
|||||||||||
Asset impairments |
5,697 |
361,703 |
7,681 |
365,506 |
|||||||||||
Total operating expenses |
58,967 |
421,863 |
153,308 |
536,785 |
|||||||||||
Income (loss) from operations |
38,907 |
(307,831) |
158,639 |
(203,008) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense |
(22,491) |
(22,441) |
(66,742) |
(65,588) |
|||||||||||
Interest expense—affiliate |
— |
(464) |
(523) |
(1,388) |
|||||||||||
Interest income |
3 |
— |
29 |
16 |
|||||||||||
Other expense, net |
(22,488) |
(22,905) |
(67,236) |
(66,960) |
|||||||||||
Net income (loss) from continuing operations |
16,419 |
(330,736) |
91,403 |
(269,968) |
|||||||||||
Income (loss) from discontinued operations |
7,112 |
(269,265) |
2,001 |
(279,966) |
|||||||||||
Net income (loss) |
23,531 |
(600,001) |
93,404 |
(549,934) |
|||||||||||
Less: net loss attributable to non-controlling interest |
— |
1,244 |
— |
— |
|||||||||||
Net income (loss) attributable to NRP |
$ |
23,531 |
$ |
(598,757) |
$ |
93,404 |
$ |
(549,934) |
|||||||
Net income (loss) attributable to limited partners: |
|||||||||||||||
Continuing operations |
$ |
16,155 |
$ |
(322,133) |
$ |
89,771 |
$ |
(263,799) |
|||||||
Discontinued operations |
6,970 |
(263,880) |
1,961 |
(274,367) |
|||||||||||
Total |
23,125 |
(586,013) |
91,732 |
(538,166) |
|||||||||||
Net income (loss) attributable to the general partner: |
|||||||||||||||
Continuing operations |
$ |
264 |
$ |
(7,359) |
$ |
1,632 |
$ |
(6,169) |
|||||||
Discontinued operations |
142 |
(5,385) |
40 |
(5,599) |
|||||||||||
Total |
$ |
406 |
$ |
(12,744) |
$ |
1,672 |
$ |
(11,768) |
|||||||
Basic and diluted net income (loss) per common unit: |
|||||||||||||||
Continuing operations |
$ |
1.32 |
$ |
(26.34) |
$ |
7.34 |
$ |
(21.57) |
|||||||
Discontinued operations |
0.57 |
(21.57) |
0.16 |
(22.43) |
|||||||||||
Total |
$ |
1.89 |
$ |
(47.91) |
$ |
7.50 |
$ |
(44.00) |
|||||||
Weighted average number of common units outstanding |
12,232 |
12,232 |
12,232 |
12,232 |
|||||||||||
Net income (loss) |
$ |
23,531 |
$ |
(600,001) |
$ |
93,404 |
$ |
(549,934) |
|||||||
Add: comprehensive loss from unconsolidated investment and other |
(609) |
(1,136) |
(692) |
(1,891) |
|||||||||||
Less: comprehensive loss attributable to non-controlling interest |
— |
1,244 |
— |
— |
|||||||||||
Comprehensive income (loss) attributable to NRP |
$ |
22,922 |
$ |
(599,893) |
$ |
92,712 |
$ |
(551,825) |
Natural Resource Partners L.P. | |||||||||||||||
Financial Tables | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Cash flows from operating activities: |
|||||||||||||||
Net income (loss) |
$ |
23,531 |
$ |
(600,001) |
$ |
93,404 |
$ |
(549,934) |
|||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations: |
|||||||||||||||
Depreciation, depletion and amortization |
11,929 |
15,666 |
32,181 |
44,512 |
|||||||||||
Amortization expense—affiliates |
902 |
771 |
2,328 |
2,516 |
|||||||||||
Distributions from equity earnings from unconsolidated investment |
12,250 |
12,740 |
34,300 |
34,545 |
|||||||||||
Equity earnings from unconsolidated investment |
(10,753) |
(12,617) |
(30,742) |
(36,739) |
|||||||||||
Gain on asset sales, net |
(6,426) |
(1,833) |
(27,280) |
(6,903) |
|||||||||||
(Income) loss from discontinued operations |
(7,112) |
269,265 |
(2,001) |
279,966 |
|||||||||||
Asset impairments |
5,697 |
361,703 |
7,681 |
365,506 |
|||||||||||
Gain on reserve swap |
— |
— |
— |
(9,290) |
|||||||||||
Other, net |
2,600 |
2,275 |
6,694 |
(7,774) |
|||||||||||
Other, net—affiliates |
636 |
(1,787) |
848 |
(2,139) |
|||||||||||
Change in assets and liabilities: |
|||||||||||||||
Accounts receivable |
(4,263) |
(3,117) |
(341) |
3,503 |
|||||||||||
Accounts receivable—affiliates |
1,559 |
742 |
(712) |
2,044 |
|||||||||||
Accounts payable |
485 |
(2,849) |
635 |
(2,163) |
|||||||||||
Accounts payable—affiliates |
54 |
1,604 |
29 |
1,563 |
|||||||||||
Accrued liabilities |
10,418 |
8,422 |
7,287 |
8,485 |
|||||||||||
Accrued liabilities—affiliates |
— |
457 |
(456) |
457 |
|||||||||||
Deferred revenue |
(2,558) |
(1,464) |
(40,762) |
6,035 |
|||||||||||
Deferred revenue—affiliates |
(4,130) |
(3,462) |
(8,190) |
(3,399) |
|||||||||||
Other items, net |
1,689 |
659 |
(356) |
1,400 |
|||||||||||
Other items, net—affiliates |
(607) |
— |
— |
— |
|||||||||||
Net cash provided by operating activities of continuing operations |
35,901 |
47,174 |
74,547 |
132,191 |
|||||||||||
Net cash provided by operating activities of discontinued operations |
2,358 |
8,066 |
8,173 |
29,159 |
|||||||||||
Net cash provided by operating activities |
38,259 |
55,240 |
82,720 |
161,350 |
|||||||||||
Cash flows from investing activities: |
|||||||||||||||
Proceeds from sale of oil and gas royalty properties |
1,617 |
— |
35,964 |
— |
|||||||||||
Proceeds from sale of coal and hard mineral royalty properties |
8,412 |
1,660 |
18,214 |
3,505 |
|||||||||||
Return of long-term contract receivables—affiliate |
397 |
984 |
2,577 |
2,121 |
|||||||||||
Proceeds from sale of plant and equipment and other |
343 |
6,229 |
1,186 |
11,484 |
|||||||||||
Acquisition of plant and equipment and other |
(512) |
(3,508) |
(4,431) |
(8,581) |
|||||||||||
Acquisition of mineral rights |
— |
— |
— |
(400) |
|||||||||||
Net cash provided by investing activities of continuing operations |
10,257 |
5,365 |
53,510 |
8,129 |
|||||||||||
Net cash provided by (used in) investing activities of discontinued operations |
110,635 |
(7,296) |
106,821 |
(32,581) |
|||||||||||
Net cash provided by (used in) investing activities |
120,892 |
(1,931) |
160,331 |
(24,452) |
|||||||||||
Cash flows from financing activities: |
|||||||||||||||
Proceeds from loans |
— |
75,000 |
20,000 |
100,000 |
|||||||||||
Repayments of loans |
(7,692) |
(82,692) |
(106,174) |
(141,175) |
|||||||||||
Distributions to partners |
(5,617) |
(11,232) |
(16,849) |
(66,142) |
|||||||||||
Distributions to non-controlling interest |
— |
— |
— |
(2,744) |
|||||||||||
Contributions from (to) discontinued operations |
40,226 |
8,000 |
40,226 |
(23,725) |
|||||||||||
Debt issue costs and other |
(2,074) |
(754) |
(14,072) |
(5,840) |
|||||||||||
Net cash used in financing activities of continuing operations |
24,843 |
(11,678) |
(76,869) |
(139,626) |
|||||||||||
Net cash provided by (used in) financing activities of discontinued operations |
(114,994) |
(8,000) |
(125,564) |
13,808 |
|||||||||||
Net cash used in financing activities |
(90,151) |
(19,678) |
(202,433) |
(125,818) |
|||||||||||
Net increase in cash and cash equivalents |
69,000 |
33,631 |
40,618 |
11,080 |
|||||||||||
Cash and cash equivalents of continuing operations at beginning of period |
21,391 |
8,804 |
41,204 |
48,971 |
|||||||||||
Cash and cash equivalents of discontinued operations at beginning of period |
2,000 |
18,721 |
10,569 |
1,105 |
|||||||||||
Cash and cash equivalents at beginning of period |
23,391 |
27,525 |
51,773 |
50,076 |
|||||||||||
Cash and cash equivalents at end of period |
92,391 |
61,156 |
92,391 |
61,156 |
|||||||||||
Less: cash and cash equivalents of discontinued operations at end of period |
— |
11,491 |
— |
11,491 |
|||||||||||
Cash and cash equivalents of continuing operations at end of period |
$ |
92,391 |
$ |
49,665 |
$ |
92,391 |
$ |
49,665 |
|||||||
Supplemental cash flow information: |
|||||||||||||||
Cash paid for interest |
$ |
12,078 |
$ |
13,022 |
$ |
54,749 |
$ |
55,761 |
|||||||
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities |
— |
13 |
— |
4,465 |
Natural Resource Partners L.P. | |||||||
Financial Tables | |||||||
Consolidated Balance Sheets | |||||||
(in thousands, except unit data) | |||||||
September 30, 2016 |
December 31, 2015 | ||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
92,391 |
$ |
41,204 |
|||
Accounts receivable, net |
44,139 |
43,633 |
|||||
Accounts receivable—affiliates, net |
7,057 |
6,345 |
|||||
Inventory |
7,160 |
7,835 |
|||||
Prepaid expenses and other |
3,707 |
4,268 |
|||||
Current assets held for sale |
5,520 |
— |
|||||
Current assets of discontinued operations |
991 |
17,844 |
|||||
Total current assets |
160,965 |
121,129 |
|||||
Land |
25,020 |
25,022 |
|||||
Plant and equipment, net |
52,516 |
60,675 |
|||||
Mineral rights, net |
924,181 |
984,522 |
|||||
Intangible assets, net |
3,239 |
3,930 |
|||||
Intangible assets, net—affiliate |
50,668 |
52,997 |
|||||
Equity in unconsolidated investment |
257,661 |
261,942 |
|||||
Long-term contracts receivable—affiliate |
44,224 |
47,359 |
|||||
Other assets |
1,898 |
1,173 |
|||||
Other assets—affiliate |
1,034 |
1,124 |
|||||
Non-current assets of discontinued operations |
— |
110,162 |
|||||
Total assets |
$ |
1,521,406 |
$ |
1,670,035 |
|||
LIABILITIES AND CAPITAL |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
6,223 |
$ |
5,022 |
|||
Accounts payable—affiliates |
829 |
801 |
|||||
Accrued liabilities |
44,816 |
44,997 |
|||||
Accrued liabilities—affiliates |
— |
456 |
|||||
Current portion of long-term debt, net |
158,597 |
80,745 |
|||||
Current liabilities of discontinued operations |
835 |
4,388 |
|||||
Total current liabilities |
211,300 |
136,409 |
|||||
Deferred revenue |
40,050 |
80,812 |
|||||
Deferred revenue—affiliates |
74,663 |
82,853 |
|||||
Long-term debt, net |
1,041,984 |
1,186,681 |
|||||
Long-term debt, net—affiliate |
— |
19,930 |
|||||
Other non-current liabilities |
4,404 |
5,171 |
|||||
Non-current liabilities of discontinued operations |
— |
85,237 |
|||||
Commitments and contingencies |
|||||||
Partners' capital: |
|||||||
Common unitholders' interest (12,232,006 units outstanding) |
154,315 |
79,094 |
|||||
General partner's interest |
928 |
(606) |
|||||
Accumulated other comprehensive loss |
(2,844) |
(2,152) |
|||||
Total partners' capital |
152,399 |
76,336 |
|||||
Non-controlling interest |
(3,394) |
(3,394) |
|||||
Total capital |
149,005 |
72,942 |
|||||
Total liabilities and capital |
$ |
1,521,406 |
$ |
1,670,035 |
Natural Resource Partners L.P. | |||||||||||||||
Financial Tables | |||||||||||||||
Operating Statistics - Coal Royalty and Other | |||||||||||||||
(in thousands except per ton data) | |||||||||||||||
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Coal production (tons) |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern (1) |
(356) |
1,518 |
479 |
7,581 |
|||||||||||
Central |
3,348 |
4,642 |
10,046 |
13,402 |
|||||||||||
Southern |
683 |
851 |
2,201 |
3,000 |
|||||||||||
Total Appalachia |
3,675 |
7,011 |
12,726 |
23,983 |
|||||||||||
Illinois Basin |
2,411 |
2,722 |
6,056 |
8,265 |
|||||||||||
Northern Powder River Basin |
1,318 |
1,301 |
2,734 |
3,497 |
|||||||||||
Gulf Coast |
— |
361 |
— |
778 |
|||||||||||
Total coal production |
7,404 |
11,395 |
21,516 |
36,523 |
|||||||||||
Coal royalty revenue per ton |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern |
N/A (1) |
$ |
0.50 |
$ |
4.19 |
$ |
0.28 |
||||||||
Central |
3.28 |
3.76 |
3.22 |
3.93 |
|||||||||||
Southern |
3.83 |
4.18 |
3.37 |
4.55 |
|||||||||||
Illinois Basin |
3.63 |
4.05 |
3.57 |
4.00 |
|||||||||||
Northern Powder River Basin |
3.27 |
2.80 |
3.04 |
2.64 |
|||||||||||
Gulf Coast |
— |
4.26 |
— |
3.85 |
|||||||||||
Coal royalty revenues |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern (1) |
$ |
370 |
$ |
763 |
$ |
2,005 |
$ |
2,105 |
|||||||
Central |
10,994 |
17,440 |
32,331 |
52,616 |
|||||||||||
Southern |
2,618 |
3,561 |
7,419 |
13,646 |
|||||||||||
Total Appalachia |
13,982 |
21,764 |
41,755 |
68,367 |
|||||||||||
Illinois Basin |
8,745 |
11,015 |
21,611 |
33,020 |
|||||||||||
Northern Powder River Basin |
4,314 |
3,641 |
8,314 |
9,219 |
|||||||||||
Gulf Coast |
— |
1,537 |
— |
2,996 |
|||||||||||
Total coal royalty revenue |
$ |
27,041 |
$ |
37,957 |
$ |
71,680 |
$ |
113,602 |
|||||||
Other revenues |
|||||||||||||||
Override revenue |
$ |
615 |
$ |
433 |
$ |
1,482 |
$ |
2,195 |
|||||||
Transportation and processing fees |
6,127 |
5,338 |
15,663 |
16,400 |
|||||||||||
Minimums recognized as revenue |
9,755 |
3,234 |
60,455 |
12,480 |
|||||||||||
Lease assignment fee |
— |
6,000 |
— |
6,000 |
|||||||||||
Gain on reserve swap |
— |
— |
— |
9,290 |
|||||||||||
Wheelage |
919 |
401 |
1,797 |
2,117 |
|||||||||||
Hard mineral royalty revenues |
700 |
3,118 |
2,194 |
7,552 |
|||||||||||
Oil and gas royalty revenues |
1,283 |
969 |
2,538 |
3,476 |
|||||||||||
Property tax revenue |
2,567 |
2,528 |
8,899 |
8,602 |
|||||||||||
Other |
(69) |
(12) |
1,136 |
1,363 |
|||||||||||
Total other revenues |
$ |
21,897 |
$ |
22,009 |
$ |
94,164 |
$ |
69,475 |
|||||||
Coal royalty and other income |
48,938 |
59,966 |
165,844 |
183,077 |
|||||||||||
Gain on coal royalty and other segment asset sales |
6,425 |
2,256 |
27,270 |
6,927 |
|||||||||||
Total coal royalty and other segment revenues and other income |
$ |
55,363 |
$ |
62,222 |
$ |
193,114 |
$ |
190,004 |
(1) Northern Appalachia was impacted by a prior period adjustment of 0.5 million tons and less than $0.1 million in royalty revenue primarily related to the Hibbs Run mine that ceased production during 2016. Absent this adjustment, production in the Northern Appalachia region was 0.2 million tons, average revenue per ton was $1.97 and revenue was $0.4 million. |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended September 30, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
34,997 |
$ |
12,250 |
$ |
4,357 |
$ |
(15,703) |
$ |
35,901 |
||||||||||
Add: return on long-term contract receivables—affiliate |
397 |
— |
— |
— |
397 |
|||||||||||||||
Add: proceeds from sale of PP&E |
265 |
— |
78 |
— |
343 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
10,029 |
— |
— |
— |
10,029 |
|||||||||||||||
Add: proceeds from sale of assets included in discontinued operations |
— |
— |
— |
— |
109,889 |
|||||||||||||||
Less: maintenance capital expenditures |
(5) |
— |
(342) |
— |
(347) |
|||||||||||||||
DCF |
$ |
45,683 |
$ |
12,250 |
$ |
4,093 |
$ |
(15,703) |
$ |
156,212 |
||||||||||
Three Months Ended September 30, 2015 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
40,389 |
$ |
12,762 |
$ |
5,841 |
$ |
(11,818) |
$ |
47,174 |
||||||||||
Add: return on long-term contract receivables—affiliate |
984 |
— |
— |
— |
984 |
|||||||||||||||
Add: proceeds from sale of PP&E |
6,228 |
— |
1 |
— |
6,229 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
1,660 |
— |
— |
— |
1,660 |
|||||||||||||||
Less: maintenance capital expenditures |
(329) |
— |
(1,511) |
— |
(1,840) |
|||||||||||||||
DCF |
$ |
48,932 |
$ |
12,762 |
$ |
4,331 |
$ |
(11,818) |
$ |
54,207 |
||||||||||
Nine Months Ended September 30, 2016 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
91,372 |
$ |
34,300 |
$ |
16,680 |
$ |
(67,805) |
$ |
74,547 |
||||||||||
Add: return on long-term contract receivables—affiliate |
2,577 |
— |
— |
— |
2,577 |
|||||||||||||||
Add: proceeds from sale of PP&E |
1,084 |
— |
102 |
— |
1,186 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
54,178 |
— |
— |
— |
54,178 |
|||||||||||||||
Add: proceeds from sale of assets included in discontinued operations |
— |
— |
— |
— |
109,889 |
|||||||||||||||
Less: maintenance capital expenditures |
(5) |
— |
(3,671) |
— |
(3,676) |
|||||||||||||||
DCF |
$ |
149,206 |
$ |
34,300 |
$ |
13,111 |
$ |
(67,805) |
$ |
238,701 |
||||||||||
Nine Months Ended September 30, 2015 |
||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
149,841 |
$ |
30,778 |
$ |
19,783 |
$ |
(68,211) |
$ |
132,191 |
||||||||||
Add: return on long-term contract receivables—affiliate |
2,121 |
— |
— |
— |
2,121 |
|||||||||||||||
Add: proceeds from sale of PP&E |
10,578 |
— |
906 |
— |
11,484 |
|||||||||||||||
Add: proceeds from sale of mineral rights |
3,505 |
— |
— |
— |
3,505 |
|||||||||||||||
Less: maintenance capital expenditures |
(329) |
— |
(3,749) |
— |
(4,078) |
|||||||||||||||
Less: distributions to non-controlling interest |
(2,744) |
— |
— |
— |
(2,744) |
|||||||||||||||
DCF |
$ |
162,972 |
$ |
30,778 |
$ |
16,940 |
$ |
(68,211) |
$ |
142,479 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended September 30, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
32,250 |
$ |
10,753 |
$ |
1,039 |
$ |
(27,623) |
$ |
16,419 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(10,753) |
— |
— |
(10,753) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
12,250 |
|||||||||||||||
Add: depreciation, depletion and amortization |
9,070 |
— |
3,761 |
— |
12,831 |
|||||||||||||||
Add: asset impairments |
5,697 |
— |
— |
— |
5,697 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
22,491 |
22,491 |
|||||||||||||||
Adjusted EBITDA |
$ |
47,017 |
$ |
12,250 |
$ |
4,800 |
$ |
(5,132) |
$ |
58,935 |
||||||||||
Three Months Ended September 30, 2015 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
(318,972) |
$ |
12,617 |
$ |
2,757 |
$ |
(27,138) |
$ |
(330,736) |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(12,617) |
— |
— |
(12,617) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,740 |
— |
— |
12,740 |
|||||||||||||||
Add: depreciation, depletion and amortization |
12,659 |
— |
3,778 |
— |
16,437 |
|||||||||||||||
Add: asset impairments |
361,703 |
— |
— |
— |
361,703 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
22,905 |
22,905 |
|||||||||||||||
Adjusted EBITDA |
$ |
55,390 |
$ |
12,740 |
$ |
6,535 |
$ |
(4,233) |
$ |
70,432 |
||||||||||
Nine Months Ended September 30, 2016 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
137,802 |
$ |
30,742 |
$ |
3,441 |
$ |
(80,582) |
$ |
91,403 |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(30,742) |
— |
— |
(30,742) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
34,300 |
— |
— |
34,300 |
|||||||||||||||
Add: depreciation, depletion and amortization |
23,496 |
— |
11,013 |
— |
34,509 |
|||||||||||||||
Add: asset impairments |
7,681 |
— |
— |
— |
7,681 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
67,265 |
67,265 |
|||||||||||||||
Adjusted EBITDA |
$ |
168,979 |
$ |
34,300 |
$ |
14,454 |
$ |
(13,317) |
$ |
204,416 |
||||||||||
Nine Months Ended September 30, 2015 |
||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
(233,803) |
$ |
36,739 |
$ |
3,879 |
$ |
(76,783) |
$ |
(269,968) |
||||||||||
Less: equity earnings from unconsolidated investment |
— |
(36,739) |
— |
— |
(36,739) |
|||||||||||||||
Less: gain on reserve swap |
(9,290) |
— |
— |
— |
(9,290) |
|||||||||||||||
Add: distributions from unconsolidated investment |
— |
34,545 |
— |
— |
34,545 |
|||||||||||||||
Add: depreciation, depletion and amortization |
34,529 |
— |
12,499 |
— |
47,028 |
|||||||||||||||
Add: asset impairments |
365,506 |
— |
— |
— |
365,506 |
|||||||||||||||
Add: interest expense |
— |
— |
— |
66,976 |
66,976 |
|||||||||||||||
Adjusted EBITDA |
$ |
156,942 |
$ |
34,545 |
$ |
16,378 |
$ |
(9,807) |
$ |
198,058 |
Natural Resource Partners L.P. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Operating Expenses Excluding Impairments | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Coal |
Corporate |
|||||||||||||||||||
Soda Ash |
VantaCore |
Total | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended September 30, 2016 |
||||||||||||||||||||
Total operating expenses |
$ |
23,158 |
$ |
— |
$ |
30,674 |
$ |
5,135 |
$ |
58,967 |
||||||||||
Less: asset impairments |
5,697 |
— |
— |
— |
5,697 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
17,461 |
$ |
— |
$ |
30,674 |
$ |
5,135 |
$ |
53,270 |
||||||||||
Three Months Ended September 30, 2015 |
||||||||||||||||||||
Total operating expenses |
$ |
381,194 |
$ |
— |
$ |
36,436 |
$ |
4,233 |
$ |
421,863 |
||||||||||
Less: asset impairments |
361,703 |
— |
— |
— |
361,703 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
19,491 |
$ |
— |
$ |
36,436 |
$ |
4,233 |
$ |
60,160 |
||||||||||
Nine Months Ended September 30, 2016 |
||||||||||||||||||||
Total operating expenses |
55,409 |
— |
84,553 |
$ |
13,346 |
$ |
153,308 |
|||||||||||||
Less: asset impairments |
7,681 |
— |
— |
— |
7,681 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
47,728 |
$ |
— |
$ |
84,553 |
$ |
13,346 |
$ |
145,627 |
||||||||||
Nine Months Ended September 30, 2015 |
||||||||||||||||||||
Total operating expenses |
$ |
423,807 |
$ |
— |
$ |
103,155 |
$ |
9,823 |
$ |
536,785 |
||||||||||
Less: asset impairments |
365,506 |
— |
— |
— |
365,506 |
|||||||||||||||
Operating expenses excluding impairments |
$ |
58,301 |
$ |
— |
$ |
103,155 |
$ |
9,823 |
$ |
171,279 |
Non-cash impairment charges attributable to the limited partners | ||||||||||||
(in thousands) | ||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
September 30, |
September 30, | |||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||
(Unaudited) | ||||||||||||
Asset impairments, as reported |
5,697 |
361,703 |
7,681 |
365,506 |
||||||||
Asset impairments attributable to the limited partners |
5,583 |
354,469 |
7,527 |
358,196 |
||||||||
Asset impairments attributable to the general partners |
114 |
7,234 |
154 |
7,310 |
||||||||
Gain on sale of assets attributable to the limited partners | ||||||||||||
(in thousands) | ||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||
September 30, |
September 30, | |||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||
(Unaudited) | ||||||||||||
Gain on sale of assets, as reported |
6,426 |
1,833 |
27,280 |
6,903 |
||||||||
Gain on sale of assets attributable to the limited partners |
6,297 |
1,796 |
26,734 |
6,765 |
||||||||
Gain on sale of assets attributable to the general partners |
129 |
37 |
546 |
138 |
||||||||
Natural Resource Partners L.P. | ||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||
Net Income from Continuing Operations and Net Income from Continuing Operations Per Unit Attributable to the Limited Partners Excluding Impairments and Asset Sales | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended | |||||||||||||||
September 30, |
September 30, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net income (loss) from continuing operations attributable to the limited partners, as reported |
$ |
16,155 |
$ |
(322,133) |
$ |
89,771 |
$ |
(263,799) |
||||||||
Gain on sale of assets attributable to the limited partners |
(6,297) |
(1,796) |
(26,734) |
(6,765) |
||||||||||||
Asset impairments attributable to the limited partners |
5,583 |
354,469 |
7,527 |
358,196 |
||||||||||||
Net income from continuing operations attributable to the limited partners excluding impairments and gain on asset sales |
$ |
15,441 |
$ |
30,540 |
$ |
70,564 |
$ |
87,632 |
||||||||
Weighted average number of common units outstanding: |
12,232 |
12,232 |
12,232 |
12,232 |
||||||||||||
Net income from continuing operations per unit attributable to the limited partners excluding impairments and gain on asset sales |
$ |
1.26 |
$ |
2.50 |
$ |
5.77 |
$ |
7.16 |
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, Oct. 27, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) reported today the Board of Directors of its general partner declared a third quarter 2016 distribution of $0.45 per unit for NRP. The distribution will be paid on November 14, 2016 to unitholders of record on November 7, 2016.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates, and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation and owns VantaCore, one of the top 25 aggregates producers in the United States.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, Aug. 4, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported net income from continuing operations attributable to the limited partners for the three months ended June 30, 2016 of $47.7 million, or $3.90 per unit, an increase of $13.3 million, from $34.4 million, or $2.82 per unit, a year earlier. Net cash provided by operating activities from continuing operations was $23.2 million in the second quarter of 2016, a decline of $20.2 million compared to the prior year. Adjusted EBITDA, a non-GAAP measure, was $81.6 million for the three months ended June 30, 2016, an increase of $10.4 million compared to 2015. Reconciliations for all non-GAAP items are shown in tables at the end of the release.
"Our second quarter results were positively impacted by the proactive management of our coal assets, as we were able to reduce our liabilities for deferred revenue by $35.5 million and recognize a corresponding amount of revenue through negotiated forfeitures by several of our lessees of rights to recoup previously paid minimum royalties," said Wyatt Hogan, President and Chief Operating Officer. "Our aggregates and soda ash businesses continue to provide stability and diversification to our asset base and, while the coal markets are still quite challenging, we are starting to see some initial signs of firming thermal and metallurgical coal prices. In addition, with the closing of our oil and gas sale in July, we were able to generate an additional $116.1 million in cash proceeds to be directed towards our deleveraging objectives. We have made substantial progress in this regard, and continue to be focused on right-sizing our balance sheet through cost management and additional asset sales with an eye towards the ultimate refinancing of our 2018 debt maturities."
NRP has recently taken the following steps to achieve the financial objectives outlined in the April 2015 strategic plan:
At June 30, 2016, NRP had $21.4 million of cash liquidity.
Business Results and Outlook
The table below presents NRP's business results by segment for the three months ended June 30, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||||||
Coal and Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
76,463 |
$ |
10,188 |
$ |
31,651 |
$ |
(56) |
$ |
— |
$ |
118,246 |
||||||||||||
Total operating expenses excluding impairments (1) |
$ |
14,727 |
$ |
— |
$ |
28,182 |
$ |
466 |
$ |
4,039 |
$ |
47,414 |
||||||||||||
Asset impairments |
$ |
91 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
91 |
||||||||||||
Net income (loss) from continuing operations |
$ |
61,675 |
$ |
10,188 |
$ |
3,439 |
$ |
(522) |
$ |
(26,147) |
$ |
48,633 |
||||||||||||
Adjusted EBITDA (1) |
$ |
69,074 |
$ |
9,800 |
$ |
7,129 |
$ |
(344) |
$ |
(4,032) |
$ |
81,627 |
||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
32,610 |
$ |
17,032 |
$ |
6,210 |
$ |
1,110 |
$ |
(33,773) |
$ |
23,189 |
||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
2,685 |
$ |
— |
$ |
(1,672) |
$ |
1,499 |
$ |
— |
$ |
2,512 |
||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
(47,102) |
$ |
(17,029) |
$ |
(2,604) |
$ |
(2,580) |
$ |
14,385 |
$ |
(54,930) |
||||||||||||
Distributable Cash Flow (1) |
$ |
35,300 |
$ |
17,032 |
$ |
4,152 |
$ |
2,609 |
$ |
(33,773) |
$ |
25,320 |
||||||||||||
Three Months Ended June 30, 2015 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
70,150 |
$ |
11,599 |
$ |
41,042 |
$ |
892 |
$ |
— |
$ |
123,683 |
||||||||||||
Total operating expenses excluding impairments (1) |
$ |
19,819 |
$ |
— |
$ |
37,429 |
$ |
2,089 |
$ |
2,219 |
$ |
61,556 |
||||||||||||
Asset impairments |
$ |
3,803 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
3,803 |
||||||||||||
Net income (loss) from continuing operations |
$ |
46,528 |
$ |
11,599 |
$ |
3,613 |
$ |
(1,197) |
$ |
(24,154) |
$ |
36,389 |
||||||||||||
Adjusted EBITDA (1) |
$ |
53,790 |
$ |
10,902 |
$ |
8,478 |
$ |
266 |
$ |
(2,218) |
$ |
71,218 |
||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
63,071 |
$ |
11,567 |
$ |
6,625 |
$ |
1,435 |
$ |
(39,312) |
$ |
43,386 |
||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
5,176 |
$ |
— |
$ |
(3,658) |
$ |
(337) |
$ |
— |
$ |
1,181 |
||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
(71,451) |
$ |
(11,567) |
$ |
(3,765) |
$ |
(10,506) |
$ |
29,847 |
$ |
(67,442) |
||||||||||||
Distributable Cash Flow (1) |
$ |
67,077 |
$ |
11,567 |
$ |
5,505 |
$ |
394 |
$ |
(39,312) |
$ |
45,231 |
_______________ | |
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
The table below presents NRP's business results by segment for the six months ended June 30, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||||||
Coal and Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
117,098 |
$ |
19,989 |
$ |
56,333 |
$ |
20,653 |
$ |
— |
$ |
214,073 |
||||||||||||
Total operating expenses excluding impairments (1) |
$ |
28,889 |
$ |
— |
$ |
53,879 |
$ |
1,378 |
$ |
8,211 |
$ |
92,357 |
||||||||||||
Asset impairments |
$ |
1,984 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
1,984 |
||||||||||||
Net income (loss) from continuing operations |
$ |
86,277 |
$ |
19,989 |
$ |
2,402 |
$ |
19,275 |
$ |
(52,959) |
$ |
74,984 |
||||||||||||
Adjusted EBITDA (1) |
$ |
102,330 |
$ |
22,050 |
$ |
9,654 |
$ |
19,632 |
$ |
(8,185) |
$ |
145,481 |
||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
55,908 |
$ |
22,050 |
$ |
12,323 |
$ |
467 |
$ |
(52,102) |
$ |
38,646 |
||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
12,796 |
$ |
— |
$ |
(3,890) |
$ |
34,347 |
$ |
— |
$ |
43,253 |
||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
(93,161) |
$ |
(22,050) |
$ |
(3,819) |
$ |
(45,205) |
$ |
62,523 |
$ |
(101,712) |
||||||||||||
Distributable Cash Flow (1) |
$ |
68,709 |
$ |
22,050 |
$ |
9,018 |
$ |
34,814 |
$ |
(52,102) |
$ |
82,489 |
||||||||||||
Six Months Ended June 30, 2015 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
125,275 |
$ |
24,122 |
$ |
67,841 |
$ |
2,507 |
$ |
— |
$ |
219,745 |
||||||||||||
Total operating expenses excluding impairments (1) |
$ |
38,249 |
$ |
— |
$ |
66,719 |
$ |
561 |
$ |
5,590 |
$ |
111,119 |
||||||||||||
Asset impairments |
$ |
3,803 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
3,803 |
||||||||||||
Net income (loss) from continuing operations |
$ |
83,223 |
$ |
24,122 |
$ |
1,122 |
$ |
1,946 |
$ |
(49,645) |
$ |
60,768 |
||||||||||||
Adjusted EBITDA (1) |
$ |
100,501 |
$ |
21,805 |
$ |
9,843 |
$ |
1,051 |
$ |
(5,574) |
$ |
127,626 |
||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
109,250 |
$ |
18,016 |
$ |
13,942 |
$ |
202 |
$ |
(56,393) |
$ |
85,017 |
||||||||||||
Net cash provided by (used in) investing activities of continuing operations |
$ |
7,461 |
$ |
— |
$ |
(4,360) |
$ |
(337) |
$ |
— |
$ |
2,764 |
||||||||||||
Net cash provided by (used in) financing activities of continuing operations |
$ |
(152,192) |
$ |
(18,016) |
$ |
(10,907) |
$ |
(11,610) |
$ |
64,777 |
$ |
(127,948) |
||||||||||||
Distributable Cash Flow (1) |
$ |
115,210 |
$ |
18,016 |
$ |
12,609 |
$ |
(1,170) |
$ |
(56,393) |
$ |
88,272 |
_______________ | |
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Coal and Hard Mineral Royalty and Other
Although the thermal and metallurgical coal markets remain challenged in the near term, prices have improved recently for both commodities. As of June 30, coal production in the United States was down approximately 27% over 2015 production, and warm summer weather has led to drawdowns from inventories. However, there are still significant stockpiles at the utilities, and the strong dollar remains a headwind for exports. NRP believes that additional tons will come out of the market over the remainder of 2016, but that the market is moving towards an equilibrium that could lead to improved pricing in 2017.
Revenues and other income increased $6.3 million, or 9%, from $70.2 million in the three months ended June 30, 2015 to $76.5 million in the three months ended June 30, 2016. This increase is related to a $38.8 million increase in minimums recognized as revenue in the three months ending June 30, 2016 over the same period in 2015. Offsetting a significant portion of this increase was a $15.9 million reduction in total coal royalty revenues caused by a 7.6 million ton reduction in sales partially offset by a $0.74 per ton increase in combined average coal royalty revenue per ton. While all regions experienced reduced revenue, the largest decreases occurred in Central Appalachia and in the Illinois Basin, where Foresight's Deer Run mine is currently idled. In addition, revenues and other income in the three months ended June 30, 2016 did not include a $9.3 million gain on coal reserve swaps recognized in the three months ended June 30, 2015.
Net income from continuing operations increased $15.2 million, or 33%, from $46.5 million in the three months ended June 30, 2015 to $61.7 million in the three months ended June 30, 2016. This increase is primarily related to increased revenues discussed above, lower depreciation, depletion and amortization expenses and lower impairments in 2016 compared to 2015.
Adjusted EBITDA increased $15.3 million, or 28%, from $53.8 million in the three months ended June 30, 2015 to $69.1 million in the three months ended June 30, 2016. This increase was primarily the result of increased minimums recognized as revenue in 2016.
Operating cash provided by continuing operations decreased $30.5 million, or 48%, from $63.1 million in the three months ended June 30, 2015 to $32.6 million in the three months ended June 30, 2016.
Soda Ash
NRP expects operational improvements at Ciner Wyoming to lead to higher sales volumes both domestically and internationally in the second half of the year.
Revenues and other income related to our Soda Ash segment decreased $1.4 million, or 12%, from $11.6 million in the three months ended June 30, 2015 to $10.2 million in the three months ended June 30, 2016. While prices increased in the second quarter as compared to the first quarter of 2016, they were lower both domestically and internationally as compared to the second quarter of 2015, leading to the reduction. For the three months ended June 30, 2016, we received $9.8 million in cash distributions from Ciner Wyoming and for the three months ended June 30, 2015, we received $10.9 million in cash distributions.
Operating cash provided by continuing operations of $17.0 million for the three months ended June 30, 2016 includes the correction of the presentation of our final contingency payment made during the first quarter of 2016. In the second quarter of 2016, the Partnership determined its net cash provided by operating activities and net cash used by financing activities were understated by $7.2 million for the three months ended March 31, 2016 related to this payment. Following the end of the second quarter of 2016, Ciner Wyoming declared a distribution of $12.25 million to NRP resulting from its second quarter 2016 results.
VantaCore
VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal. The largest component of the VantaCore segment is the Laurel operation in southwestern Pennsylvania that serves producers and service companies operating in the Marcellus and Utica Shales. Low natural gas prices have led to a slowing pace of exploration and development in those areas and impacted Laurel's revenues. This decline has been offset both by increased construction revenue at Laurel and reduced costs across all of the VantaCore operations. In addition, McIntosh Construction has seen nearly a 30% rise in the second quarter and is expected to remain strong during the summer and fall months.
Revenues and other income related to our VantaCore segment decreased $9.3 million, or 23%, from $41.0 million in the three months ended June 30, 2015 to $31.7 million in the three months ended June 30, 2016. This decrease was primarily the result of a reduction in revenue at Laurel related to the brokered stone business including reduced delivery income quarter-over-quarter and lower sales going into the Marcellus. The reduction at Laurel was partially offset by increased construction revenues; an increase at VantaCore's McIntosh operation in Tennessee; as well as, increases related to the Grand Rivers quarry in Kentucky. Tonnage sold declined 10% or 0.2 million tons quarter-over-quarter to 1.8 million tons.
Net income from continuing operations was relatively flat quarter over quarter, decreasing $0.2 million, or 6% from $3.6 million in the three months ended June 30, 2015 to $3.4 million in the three months ended June 30, 2016. Notwithstanding the decrease in revenue and other income described above, VantaCore's net income was able to remain relatively flat as a result of reduced material costs and overhead.
Adjusted EBITDA decreased $1.4 million, or 16%, from $8.5 million, in the three months ended June 30, 2015 to $7.1 million in the three months ended June 30, 2016. This decrease was primarily the result of the decrease in revenues predominantly offset by lower costs discussed above.
Operating cash provided by continuing operations decreased $0.4 million, or 6%, from $6.6 million in the three months ended June 30, 2015 to $6.2 million in the three months ended June 30, 2016 due to lower net income quarter-over-quarter.
Oil and Gas
In July 2016, NRP Oil and Gas sold its non-operated oil and gas working interest assets in the Williston Basin for $116.1 million, subject to customary post-closing purchase price adjustments. Our exit from this business represents a strategic shift to reduce debt and focus on our aggregates, soda ash, and coal and hard minerals business segments. As a result, we have classified the operating results and cash flows of our non-operated oil and gas working interest assets as discontinued operations in our consolidated statements of comprehensive income and consolidated statements of cash flows for all periods presented. Additionally, the related assets and liabilities associated with discontinued operations are classified as discontinued in our consolidated balance sheet. During the third quarter of 2016, we plan to transition the management responsibilities and reporting of our remaining oil and gas royalty assets into the Coal and Hard Minerals Royalty and Other operating segment.
Corporate and Financing
Corporate and financing general and administrative expense (including affiliates) includes corporate headquarters, financing and centralized treasury and accounting. These costs increased $1.8 million from $2.2 million in the three months ended June 30, 2015 to $4.0 million in the three months ended June 30, 2016 primarily due to increased legal and advisory fees related to the implementation of our long-term plan to strengthen our balance sheet, reduce debt and enhance liquidity in order to reposition the Partnership for future growth. Interest expense was essentially flat from $21.9 million in the three months ended June 30, 2015 to $22.1 million in the three months ended June 30, 2016.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, 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, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. 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" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets, and returns of long-term contract receivables—affiliate, 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. DCF 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 the Partnership's ability to make cash distributions to our unitholders and our general partner and repay debt.
"Operating expenses excluding impairments" is a non-GAAP financial measure that we define as total operating expenses less asset impairments. "Operating expenses excluding impairments," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.
"Net income excluding impairments" is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, trona and soda ash, construction aggregates, crude oil and natural gas, frac sand and other natural resources; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, our ability to consummate planned asset sales and execute on our long-term strategic plan 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.
-Financial Tables Follow-
Natural Resource Partners L.P. Financial Tables | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(in thousands, except per unit data) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Revenues and other income: |
|||||||||||||||
Coal and hard mineral royalty and other |
$ |
58,892 |
$ |
34,752 |
$ |
87,368 |
$ |
69,201 |
|||||||
Coal and hard mineral royalty and other—affiliates |
17,504 |
32,342 |
28,074 |
51,403 |
|||||||||||
VantaCore |
31,642 |
40,643 |
56,324 |
67,442 |
|||||||||||
Oil and gas royalty |
1,091 |
892 |
1,464 |
2,507 |
|||||||||||
Equity in earnings of Ciner Wyoming |
10,188 |
11,599 |
19,989 |
24,122 |
|||||||||||
Gain (loss) on asset sales |
(1,071) |
3,455 |
20,854 |
5,070 |
|||||||||||
Total revenues and other income |
118,246 |
123,683 |
214,073 |
219,745 |
|||||||||||
Operating expenses: |
|||||||||||||||
Operating and maintenance expenses |
29,797 |
36,781 |
56,582 |
68,592 |
|||||||||||
Operating and maintenance expenses—affiliates, net |
2,402 |
3,479 |
5,886 |
6,346 |
|||||||||||
Depreciation, depletion and amortization |
10,472 |
18,170 |
20,252 |
28,846 |
|||||||||||
Amortization expense—affiliate |
704 |
907 |
1,426 |
1,745 |
|||||||||||
General and administrative |
3,173 |
1,918 |
6,408 |
4,205 |
|||||||||||
General and administrative—affiliates |
866 |
301 |
1,803 |
1,385 |
|||||||||||
Asset impairments |
91 |
3,803 |
1,984 |
3,803 |
|||||||||||
Total operating expenses |
47,505 |
65,359 |
94,341 |
114,922 |
|||||||||||
Income from operations |
70,741 |
58,324 |
119,732 |
104,823 |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense |
(22,054) |
(21,474) |
(44,251) |
(43,147) |
|||||||||||
Interest expense—affiliate |
(61) |
(462) |
(523) |
(924) |
|||||||||||
Interest income |
7 |
1 |
26 |
16 |
|||||||||||
Other expense, net |
(22,108) |
(21,935) |
(44,748) |
(44,055) |
|||||||||||
Net income from continuing operations |
48,633 |
36,389 |
74,984 |
60,768 |
|||||||||||
Loss from discontinued operations (see Note 3) |
(2,187) |
(3,811) |
(5,111) |
(10,701) |
|||||||||||
Net income |
46,446 |
32,578 |
69,873 |
50,067 |
|||||||||||
Less: net income attributable to non-controlling interest |
— |
(1,244) |
— |
(1,244) |
|||||||||||
Net income attributable to NRP |
$ |
46,446 |
$ |
31,334 |
$ |
69,873 |
$ |
48,823 |
|||||||
Net income (loss) attributable to limited partners: |
|||||||||||||||
Continuing operations |
$ |
47,726 |
$ |
34,442 |
$ |
73,616 |
$ |
58,334 |
|||||||
Discontinued operations |
(2,143) |
(3,735) |
(5,009) |
(10,487) |
|||||||||||
Total |
45,583 |
30,707 |
68,607 |
47,847 |
|||||||||||
Net income (loss) attributable to the general partner: |
|||||||||||||||
Continuing operations |
$ |
907 |
$ |
703 |
$ |
1,368 |
$ |
1,190 |
|||||||
Discontinued operations |
(44) |
(76) |
(102) |
(214) |
|||||||||||
Total |
$ |
863 |
$ |
627 |
$ |
1,266 |
$ |
976 |
|||||||
Basic and diluted net income (loss) per common unit: |
|||||||||||||||
Continuing operations |
$ |
3.90 |
$ |
2.82 |
$ |
6.02 |
$ |
4.77 |
|||||||
Discontinued operations |
(0.18) |
(0.31) |
(0.41) |
(0.86) |
|||||||||||
Total |
$ |
3.72 |
$ |
2.51 |
$ |
5.61 |
$ |
3.91 |
|||||||
Weighted average number of common units outstanding |
12,232 |
12,232 |
12,232 |
12,232 |
|||||||||||
Net income |
$ |
46,446 |
$ |
32,578 |
$ |
69,873 |
$ |
50,067 |
|||||||
Add: comprehensive income (loss) from unconsolidated investment and other |
462 |
210 |
(83) |
(755) |
|||||||||||
Less: comprehensive income attributable to non-controlling interest |
— |
(1,244) |
— |
(1,244) |
|||||||||||
Comprehensive income |
$ |
46,908 |
$ |
31,544 |
$ |
69,790 |
$ |
48,068 |
Natural Resource Partners L.P. Financial Tables | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Cash flows from operating activities: |
|||||||||||||||
Net income |
$ |
46,446 |
$ |
32,578 |
$ |
69,873 |
$ |
50,067 |
|||||||
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: |
|||||||||||||||
Depreciation, depletion and amortization |
10,472 |
18,170 |
20,252 |
28,846 |
|||||||||||
Amortization expense—affiliates |
704 |
907 |
1,426 |
1,745 |
|||||||||||
Distributions from equity earnings from unconsolidated investment |
9,800 |
10,902 |
22,050 |
21,805 |
|||||||||||
Equity earnings from unconsolidated investment |
(10,188) |
(11,599) |
(19,989) |
(24,122) |
|||||||||||
Gain on asset sales |
1,071 |
(3,455) |
(20,854) |
(5,070) |
|||||||||||
Loss from discontinued operations |
2,187 |
3,811 |
5,111 |
10,701 |
|||||||||||
Asset impairment |
91 |
3,803 |
1,984 |
3,803 |
|||||||||||
Gain on reserve swap |
— |
(9,290) |
— |
(9,290) |
|||||||||||
Other, net |
1,825 |
2,784 |
4,094 |
(10,049) |
|||||||||||
Other, net—affiliates |
(1,571) |
380 |
212 |
(352) |
|||||||||||
Change in operating assets and liabilities: |
|||||||||||||||
Accounts receivable |
(33) |
(1,208) |
3,922 |
6,620 |
|||||||||||
Accounts receivable—affiliates |
(1,201) |
(2,378) |
(2,271) |
1,302 |
|||||||||||
Accounts payable |
(128) |
3,290 |
150 |
686 |
|||||||||||
Accounts payable—affiliates |
(250) |
(27) |
(25) |
(41) |
|||||||||||
Accrued liabilities |
2,827 |
(8,383) |
(3,131) |
63 |
|||||||||||
Accrued liabilities—affiliates |
(913) |
— |
(456) |
— |
|||||||||||
Deferred revenue |
(34,141) |
1,654 |
(38,204) |
7,499 |
|||||||||||
Deferred revenue—affiliates |
(3,075) |
801 |
(4,060) |
63 |
|||||||||||
Other items, net |
(1,341) |
646 |
(2,045) |
741 |
|||||||||||
Other items, net—affiliates |
607 |
— |
607 |
— |
|||||||||||
Net cash provided by operating activities of continuing operations |
23,189 |
43,386 |
38,646 |
85,017 |
|||||||||||
Net cash provided by operating activities of discontinued operations |
1,841 |
7,252 |
5,815 |
21,093 |
|||||||||||
Net cash provided by operating activities |
25,030 |
50,638 |
44,461 |
106,110 |
|||||||||||
Cash flows from investing activities: |
|||||||||||||||
Proceeds from sale of oil and gas royalty properties |
1,499 |
— |
34,347 |
— |
|||||||||||
Proceeds from sale of coal and hard mineral royalty properties |
— |
539 |
9,802 |
1,845 |
|||||||||||
Return of long-term contract receivables—affiliate |
1,871 |
— |
2,180 |
1,137 |
|||||||||||
Proceeds from sale of plant and equipment and other |
840 |
4,350 |
843 |
5,255 |
|||||||||||
Acquisition of plant and equipment and other |
(1,698) |
(3,708) |
(3,919) |
(5,073) |
|||||||||||
Acquisition of mineral rights |
— |
— |
— |
(400) |
|||||||||||
Net cash provided by investing activities of continuing operations |
2,512 |
1,181 |
43,253 |
2,764 |
|||||||||||
Net cash used in investing activities of discontinued operations |
(1,089) |
(11,852) |
(3,814) |
(25,285) |
|||||||||||
Net cash provided by (used in) investing activities |
1,423 |
(10,671) |
39,439 |
(22,521) |
|||||||||||
Cash flows from financing activities: |
|||||||||||||||
Proceeds from loans |
20,000 |
— |
20,000 |
25,000 |
|||||||||||
Repayments of loans |
(57,316) |
(17,317) |
(98,482) |
(58,483) |
|||||||||||
Distributions to partners |
(5,616) |
(11,232) |
(11,232) |
(54,910) |
|||||||||||
Distributions to non-controlling interest |
— |
(2,082) |
— |
(2,744) |
|||||||||||
Contributions to discontinued operations |
— |
(31,725) |
— |
(31,725) |
|||||||||||
Debt issue costs and other |
(11,998) |
(5,086) |
(11,998) |
(5,086) |
|||||||||||
Net cash used in financing activities of continuing operations |
(54,930) |
(67,442) |
(101,712) |
(127,948) |
|||||||||||
Net cash provided by (used in) financing activities of discontinued operations |
(232) |
21,725 |
(10,570) |
21,808 |
|||||||||||
Net cash used in financing activities |
(55,162) |
(45,717) |
(112,282) |
(106,140) |
|||||||||||
Net decrease in cash and cash equivalents |
(28,706) |
(5,750) |
(28,382) |
(22,551) |
|||||||||||
Cash and cash equivalents of continuing operations at beginning of period |
50,620 |
31,679 |
41,204 |
48,971 |
|||||||||||
Cash and cash equivalents of discontinued operations at beginning of period |
1,477 |
1,596 |
10,569 |
1,105 |
|||||||||||
Cash and cash equivalents at beginning of period |
52,097 |
33,275 |
51,773 |
50,076 |
|||||||||||
Cash and cash equivalents at end of period |
23,391 |
27,525 |
23,391 |
27,525 |
|||||||||||
Less: cash and cash equivalents of discontinued operations at end of period |
2,000 |
18,721 |
2,000 |
18,721 |
|||||||||||
Cash and cash equivalents of continuing operations at end of period |
$ |
21,391 |
$ |
8,804 |
$ |
21,391 |
$ |
8,804 |
Natural Resource Partners L.P. Financial Tables | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
June 30, 2016 |
December 31, 2015 | ||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
21,391 |
$ |
41,204 |
|||
Accounts receivable, net |
40,815 |
43,633 |
|||||
Accounts receivable—affiliates |
8,616 |
6,345 |
|||||
Inventory |
7,832 |
7,835 |
|||||
Prepaid expenses and other |
4,777 |
4,268 |
|||||
Current assets of discontinued operations (see Note 3) |
113,218 |
17,844 |
|||||
Total current assets |
196,649 |
121,129 |
|||||
Land |
25,020 |
25,022 |
|||||
Plant and equipment, net |
55,763 |
60,675 |
|||||
Mineral rights, net |
946,355 |
984,522 |
|||||
Intangible assets, net |
3,470 |
3,930 |
|||||
Intangible assets, net—affiliate |
51,570 |
52,997 |
|||||
Equity in unconsolidated investment |
259,778 |
261,942 |
|||||
Long-term contracts receivable—affiliate |
44,572 |
47,359 |
|||||
Other assets |
863 |
1,173 |
|||||
Other assets—affiliate |
1,046 |
1,124 |
|||||
Non-current assets of discontinued operations (see Note 3) |
— |
110,162 |
|||||
Total assets |
$ |
1,585,086 |
$ |
1,670,035 |
|||
LIABILITIES AND CAPITAL |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
5,260 |
$ |
5,022 |
|||
Accounts payable—affiliates |
779 |
801 |
|||||
Accrued liabilities |
33,837 |
44,997 |
|||||
Accrued liabilities—affiliates |
— |
456 |
|||||
Current portion of long-term debt, net |
157,996 |
80,745 |
|||||
Current liabilities of discontinued operations (see Note 3) |
79,947 |
4,388 |
|||||
Total current liabilities |
277,819 |
136,409 |
|||||
Deferred revenue |
42,608 |
80,812 |
|||||
Deferred revenue—affiliates |
78,793 |
82,853 |
|||||
Long-term debt, net |
1,050,562 |
1,186,681 |
|||||
Long-term debt, net—affiliate |
— |
19,930 |
|||||
Other non-current liabilities |
3,670 |
5,171 |
|||||
Non-current liabilities of discontinued operations (see Note 3) |
— |
85,237 |
|||||
Commitments and contingencies (see Note 11) |
|||||||
Partners' capital: |
|||||||
Common unitholders' interest (12,232,006 units outstanding) |
136,695 |
79,094 |
|||||
General partner's interest |
568 |
(606) |
|||||
Accumulated other comprehensive loss |
(2,235) |
(2,152) |
|||||
Total partners' capital |
135,028 |
76,336 |
|||||
Non-controlling interest |
(3,394) |
(3,394) |
|||||
Total capital |
131,634 |
72,942 |
|||||
Total liabilities and capital |
$ |
1,585,086 |
$ |
1,670,035 |
Natural Resource Partners L.P. Financial Tables | |||||||||||||||
Operating Statistics - Coal, Hard Mineral Royalty and Other | |||||||||||||||
(in thousands except per ton data) | |||||||||||||||
For the Three Months Ended June 30, |
For the Six Months Ended June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(Unaudited) | |||||||||||||||
Coal royalty production (tons) |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern (1) |
(138) |
4,318 |
1,292 |
6,063 |
|||||||||||
Central |
3,470 |
4,376 |
6,698 |
8,760 |
|||||||||||
Southern |
773 |
1,174 |
1,518 |
2,149 |
|||||||||||
Total Appalachia |
4,105 |
9,868 |
9,508 |
16,972 |
|||||||||||
Illinois Basin |
1,909 |
2,960 |
3,637 |
5,543 |
|||||||||||
Northern Powder River Basin |
442 |
892 |
1,416 |
2,196 |
|||||||||||
Gulf Coast |
— |
300 |
— |
417 |
|||||||||||
Total coal royalty production |
6,456 |
14,020 |
14,561 |
25,128 |
|||||||||||
Average coal royalty revenue per ton |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern |
N/A (1) |
$ |
0.16 |
$ |
1.27 |
$ |
0.22 |
||||||||
Central |
3.13 |
4.04 |
3.19 |
4.02 |
|||||||||||
Southern |
3.36 |
4.60 |
3.16 |
4.69 |
|||||||||||
Total Appalachia |
3.39 |
2.41 |
2.92 |
2.75 |
|||||||||||
Illinois Basin |
3.76 |
3.90 |
3.54 |
3.97 |
|||||||||||
Northern Powder River Basin |
3.05 |
2.32 |
2.82 |
2.54 |
|||||||||||
Gulf Coast |
— |
3.49 |
— |
3.50 |
|||||||||||
Combined average coal royalty revenue per ton |
3.48 |
2.74 |
3.07 |
3.01 |
|||||||||||
Coal royalty revenues |
|||||||||||||||
Appalachia |
|||||||||||||||
Northern (1) |
$ |
463 |
$ |
708 |
$ |
1,635 |
$ |
1,342 |
|||||||
Central |
10,864 |
17,670 |
21,337 |
35,176 |
|||||||||||
Southern |
2,598 |
5,399 |
4,800 |
10,085 |
|||||||||||
Total Appalachia |
13,925 |
23,777 |
27,772 |
46,603 |
|||||||||||
Illinois Basin |
7,181 |
11,538 |
12,867 |
22,005 |
|||||||||||
Northern Powder River Basin |
1,348 |
2,071 |
4,000 |
5,578 |
|||||||||||
Gulf Coast |
— |
1,047 |
— |
1,459 |
|||||||||||
Total coal royalty revenue |
$ |
22,454 |
$ |
38,433 |
$ |
44,639 |
$ |
75,645 |
|||||||
Other Coal and Hard Mineral Royalty and Other revenues |
|||||||||||||||
Override revenue |
$ |
657 |
$ |
1,071 |
$ |
867 |
$ |
1,762 |
|||||||
Transportation and processing fees |
5,302 |
6,465 |
9,536 |
11,062 |
|||||||||||
Minimums recognized as revenue |
43,527 |
4,706 |
50,492 |
9,246 |
|||||||||||
Gain on reserve swap |
— |
9,290 |
— |
9,290 |
|||||||||||
DOH sale |
— |
— |
268 |
1,665 |
|||||||||||
Wheelage |
465 |
939 |
878 |
1,716 |
|||||||||||
Hard mineral royalty revenues |
603 |
2,261 |
1,494 |
4,434 |
|||||||||||
Gain on asset sales |
67 |
3,056 |
1,656 |
4,671 |
|||||||||||
Property tax revenue |
3,027 |
3,070 |
6,332 |
6,074 |
|||||||||||
Other |
361 |
859 |
936 |
(290) |
|||||||||||
Total other Coal and Hard Mineral Royalty and Other revenue |
$ |
54,009 |
$ |
31,717 |
$ |
72,459 |
$ |
49,630 |
|||||||
Total Coal and Hard Mineral Royalty and Other revenue |
$ |
76,463 |
$ |
70,150 |
$ |
117,098 |
$ |
125,275 |
_______________ | |
(1) Northern Appalachia was impacted by a prior period adjustment of 0.4 million tons and less than $0.1 million in royalty revenue related to the Hibbs Run mine that ceased production during 2016. Absent this adjustment, production in the Northern Appalachia region was 0.2 million tons, average revenue per ton was $2.08 and revenue was $0.4 million. |
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal and Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
32,610 |
$ |
17,032 |
$ |
6,210 |
$ |
1,110 |
$ |
(33,773) |
$ |
23,189 |
||||||||||||
Add: return on long-term contract receivables—affiliate |
1,871 |
— |
— |
— |
— |
1,871 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
819 |
— |
21 |
— |
— |
840 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
— |
— |
— |
1,499 |
— |
1,499 |
||||||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(2,079) |
— |
— |
(2,079) |
||||||||||||||||||
DCF |
$ |
35,300 |
$ |
17,032 |
$ |
4,152 |
$ |
2,609 |
$ |
(33,773) |
$ |
25,320 |
||||||||||||
Three Months Ended June 30, 2015 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
63,071 |
$ |
11,567 |
$ |
6,625 |
$ |
1,435 |
$ |
(39,312) |
$ |
43,386 |
||||||||||||
Add: proceeds from sale of PP&E |
4,350 |
— |
— |
— |
— |
4,350 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
539 |
— |
— |
— |
— |
539 |
||||||||||||||||||
Less: maintenance capital expenditures |
158 |
— |
(1,120) |
— |
— |
(962) |
||||||||||||||||||
Less: distributions to non-controlling interest |
(1,041) |
— |
— |
(1,041) |
— |
(2,082) |
||||||||||||||||||
DCF |
$ |
67,077 |
$ |
11,567 |
$ |
5,505 |
$ |
394 |
$ |
(39,312) |
$ |
45,231 |
||||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
55,908 |
$ |
22,050 |
$ |
12,323 |
$ |
467 |
$ |
(52,102) |
$ |
38,646 |
||||||||||||
Add: return on long-term contract receivables—affiliate |
2,180 |
— |
— |
— |
— |
2,180 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
819 |
— |
24 |
— |
— |
843 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
9,802 |
— |
— |
34,347 |
— |
44,149 |
||||||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(3,329) |
— |
— |
(3,329) |
||||||||||||||||||
DCF |
$ |
68,709 |
$ |
22,050 |
$ |
9,018 |
$ |
34,814 |
$ |
(52,102) |
$ |
82,489 |
||||||||||||
Six Months Ended June 30, 2015 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations |
$ |
109,250 |
$ |
18,016 |
$ |
13,942 |
$ |
202 |
$ |
(56,393) |
$ |
85,017 |
||||||||||||
Add: return on long-term contract receivables—affiliate |
1,137 |
— |
— |
— |
— |
1,137 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
4,350 |
— |
905 |
— |
— |
5,255 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
1,845 |
— |
— |
— |
— |
1,845 |
||||||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(2,238) |
— |
— |
(2,238) |
||||||||||||||||||
Less: distributions to non-controlling interest |
(1,372) |
— |
— |
(1,372) |
— |
(2,744) |
||||||||||||||||||
DCF |
$ |
115,210 |
$ |
18,016 |
$ |
12,609 |
$ |
(1,170) |
$ |
(56,393) |
$ |
88,272 |
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal and Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
61,675 |
$ |
10,188 |
$ |
3,439 |
$ |
(522) |
$ |
(26,147) |
$ |
48,633 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(10,188) |
— |
— |
— |
(10,188) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
9,800 |
— |
— |
— |
9,800 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
7,308 |
— |
3,690 |
178 |
— |
11,176 |
||||||||||||||||||
Add: asset impairment |
91 |
— |
— |
— |
— |
91 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
22,115 |
22,115 |
||||||||||||||||||
Adjusted EBITDA |
$ |
69,074 |
$ |
9,800 |
$ |
7,129 |
$ |
(344) |
$ |
(4,032) |
$ |
81,627 |
||||||||||||
Three Months Ended June 30, 2015 |
||||||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
46,528 |
$ |
11,599 |
$ |
3,613 |
$ |
(1,197) |
$ |
(24,154) |
$ |
36,389 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(11,599) |
— |
— |
— |
(11,599) |
||||||||||||||||||
Less: gain on reserve swap |
(9,290) |
— |
— |
— |
— |
(9,290) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
10,902 |
— |
— |
— |
10,902 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
12,749 |
— |
4,865 |
1,463 |
— |
19,077 |
||||||||||||||||||
Add: asset impairment |
3,803 |
— |
— |
— |
— |
3,803 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
21,936 |
21,936 |
||||||||||||||||||
Adjusted EBITDA |
$ |
53,790 |
$ |
10,902 |
$ |
8,478 |
$ |
266 |
$ |
(2,218) |
$ |
71,218 |
||||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
86,277 |
$ |
19,989 |
$ |
2,402 |
$ |
19,275 |
$ |
(52,959) |
$ |
74,984 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(19,989) |
— |
— |
— |
(19,989) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
22,050 |
— |
— |
— |
22,050 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
14,069 |
— |
7,252 |
357 |
— |
21,678 |
||||||||||||||||||
Add: asset impairment |
1,984 |
— |
— |
— |
— |
1,984 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
44,774 |
44,774 |
||||||||||||||||||
Adjusted EBITDA |
$ |
102,330 |
$ |
22,050 |
$ |
9,654 |
$ |
19,632 |
$ |
(8,185) |
$ |
145,481 |
||||||||||||
Six Months Ended June 30, 2015 |
||||||||||||||||||||||||
Net income (loss) from continuing operations |
$ |
83,223 |
$ |
24,122 |
$ |
1,122 |
$ |
1,946 |
$ |
(49,645) |
$ |
60,768 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(24,122) |
— |
— |
— |
(24,122) |
||||||||||||||||||
Less: gain on reserve swap |
(9,290) |
— |
— |
— |
— |
(9,290) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
21,805 |
— |
— |
— |
21,805 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
22,765 |
— |
8,721 |
(895) |
— |
30,591 |
||||||||||||||||||
Add: asset impairment |
3,803 |
— |
— |
— |
— |
3,803 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
44,071 |
44,071 |
||||||||||||||||||
Adjusted EBITDA |
$ |
100,501 |
$ |
21,805 |
$ |
9,843 |
$ |
1,051 |
$ |
(5,574) |
$ |
127,626 |
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||||
Operating Expenses Excluding Impairments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal and Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Three Months Ended June 30, 2016 |
||||||||||||||||||||||||
Total operating expenses |
$ |
14,818 |
$ |
— |
$ |
28,182 |
$ |
466 |
$ |
4,039 |
$ |
47,505 |
||||||||||||
Less: asset impairments |
91 |
— |
— |
— |
— |
91 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
14,727 |
$ |
— |
$ |
28,182 |
$ |
466 |
$ |
4,039 |
$ |
47,414 |
||||||||||||
Three Months Ended June 30, 2015 |
||||||||||||||||||||||||
Total operating expenses |
$ |
23,622 |
$ |
— |
$ |
37,429 |
$ |
2,089 |
$ |
2,219 |
$ |
65,359 |
||||||||||||
Less: asset impairments |
3,803 |
— |
— |
— |
— |
3,803 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
19,819 |
$ |
— |
$ |
37,429 |
$ |
2,089 |
$ |
2,219 |
$ |
61,556 |
||||||||||||
Six Months Ended June 30, 2016 |
||||||||||||||||||||||||
Total operating expenses |
30,873 |
— |
53,879 |
1,378 |
$ |
8,211 |
$ |
94,341 |
||||||||||||||||
Less: asset impairments |
1,984 |
— |
— |
— |
— |
1,984 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
28,889 |
$ |
— |
$ |
53,879 |
$ |
1,378 |
$ |
8,211 |
$ |
92,357 |
||||||||||||
Six Months Ended June 30, 2015 |
||||||||||||||||||||||||
Total operating expenses |
$ |
42,052 |
$ |
— |
$ |
66,719 |
$ |
561 |
$ |
5,590 |
$ |
114,922 |
||||||||||||
Less: asset impairments |
3,803 |
— |
— |
— |
— |
3,803 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
38,249 |
$ |
— |
$ |
66,719 |
$ |
561 |
$ |
5,590 |
$ |
111,119 |
Non-cash impairment charges attributable to the limited partners | ||||||||||||
(in thousands) | ||||||||||||
For the Three Months Ended |
For the Six Months Ended | |||||||||||
June 30, |
June 30, | |||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||
(Unaudited) | ||||||||||||
Asset impairments, as reported |
91 |
3,803 |
1,984 |
3,803 |
||||||||
Asset impairments attributable to the limited partners |
89 |
3,727 |
1,944 |
3,727 |
||||||||
Asset impairments attributable to the general partners |
2 |
76 |
40 |
76 |
||||||||
Gain on sale of assets attributable to the limited partners | ||||||||||||
(in thousands) | ||||||||||||
For the Three Months Ended |
For the Six Months Ended | |||||||||||
June 30, |
June 30, | |||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||
(Unaudited) | ||||||||||||
Gain on sale of assets, as reported |
(1,071) |
3,455 |
20,854 |
5,070 |
||||||||
Gain on sale of assets attributable to the limited partners |
(1,050) |
3,386 |
20,437 |
4,969 |
||||||||
Gain on sale of assets attributable to the general partners |
(21) |
69 |
417 |
101 |
||||||||
Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures | ||||||||||||||||
Net Income from Continuing Operations and Net Income from Continuing Operations Per Unit Attributable to the Limited Partners Excluding Impairments and Asset Sales | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended |
For the Six Months Ended | |||||||||||||||
June 30, |
June 30, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(Unaudited) | ||||||||||||||||
Net income from continuing operations attributable to the limited partners, as reported |
$ |
47,726 |
$ |
34,442 |
$ |
73,616 |
$ |
58,334 |
||||||||
Gain on sale of assets attributable to the limited partners |
(1,050) |
3,386 |
20,437 |
4,969 |
||||||||||||
Asset impairments attributable to the limited partners |
89 |
3,727 |
1,944 |
3,727 |
||||||||||||
Net income from continuing operations attributable to the limited partners excluding impairments and gain on asset sales |
$ |
46,765 |
$ |
41,555 |
$ |
95,997 |
$ |
67,030 |
||||||||
Weighted average number of common units outstanding: |
12,232 |
12,232 |
12,232 |
12,232 |
||||||||||||
Net income from continuing operations per unit attributable to the limited partners excluding impairments and gain on asset sales |
$ |
3.82 |
$ |
3.40 |
$ |
7.85 |
$ |
5.48 |
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, July 21, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) reported today the Board of Directors of its general partner declared a second quarter 2016 distribution of $0.45 per unit for NRP. The distribution will be paid on August 12, 2016 to unitholders of record on August 5, 2016.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in coal, aggregates, industrial minerals and oil and gas across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns VantaCore, one of the top 25 aggregates producers in the United States and owns non-operated working interests in oil and gas properties.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, June 14, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced that NRP Oil and Gas LLC has signed a definitive agreement with Lime Rock Resources IV-A, L.P. to sell all of its Williston Basin non-operated oil and gas working interest assets for $116.1 million before transaction expenses and customary purchase price adjustments. The closing of the sale is expected to occur by the end of July and is subject to customary closing conditions. NRP intends to use the proceeds to repay the $75 million NRP Oil and Gas revolving credit facility in full and use the remainder to further the partnership's ongoing deleveraging strategy. The sale of these assets will represent NRP's exit from the non-operated oil and gas working interest business.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in coal, aggregates, industrial minerals and oil and gas across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns VantaCore, one of the top 25 aggregates producers in the United States and owns non-operated working interests in oil and gas properties.
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, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment 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.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, May 6, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported net income attributable to the limited partners for the three months ended March 31, 2016 of $23.0 million, or $1.88 per unit, compared with net income attributable to the limited partners of $17.1 million, or $1.40 per unit, a year earlier. Results for the three months ended March 31, 2016 were positively impacted by gains on sale of assets of $21.5 million attributable to the limited partners and negatively impacted by $2.0 million of non-cash impairment charges attributable to the limited partners. Excluding these items, net income attributable to the limited partners was $0.29 per unit. Distributable Cash Flow for the three months ended March 31, 2016 increased $5.1 million to $58.4 million and Adjusted EBITDA increased $2.2 million to $66.4 million. Both Distributable Cash Flow and Adjusted EBITDA were positively impacted by the oil and gas royalty and hard mineral royalty sales executed during the first quarter of 2016.
"In spite of another challenging quarter across all of our business segments as a result of continued low commodity prices, we made significant strides towards achieving our longer-term deleveraging objectives during the first quarter," said Wyatt Hogan, President and Chief Operating Officer. "With the completed sales of a portion of our oil and gas and aggregates royalty properties, we were able to raise $47.5 million at attractive cash flow multiples to be used to pay down debt. In addition, we are actively engaged in a process to sell our Bakken oil and gas interests, which we hope to close by midyear. This sale will mark NRP's exit from the oil and gas business, allow us to further deleverage the company, and will permit us to focus our attention on our aggregates, soda ash and coal and hard minerals business segments, as well as our longer-term objective of repositioning NRP to thrive with a stronger balance sheet when commodity prices improve."
NRP has taken the following steps in the first quarter of 2016 to achieve the financial objectives outlined in the April 2015 strategic plan:
Effective February 17, 2016, NRP completed a 1-for-10 reverse unit split, decreasing the number of units outstanding to 12.2 million in order to ensure continued compliance with New York Stock Exchange listing standards.
At March 31, 2016, NRP had $62.1 million of liquidity, consisting of $52.1 million in cash and $10.0 million available for borrowing under its revolving credit facilities.
Business Results and Outlook
The table below presents NRP's business results by segment for the three months ended March 31, 2016 and 2015:
Operating Business Segments |
||||||||||||||||||||||||
Coal, Hard |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
40,635 |
$ |
9,801 |
$ |
24,682 |
$ |
27,633 |
$ |
— |
$ |
102,751 |
||||||||||||
Total operating expenses excluding impairments (1) |
14,142 |
— |
25,718 |
9,533 |
4,172 |
53,565 |
||||||||||||||||||
Asset impairments |
1,893 |
— |
— |
137 |
— |
2,030 |
||||||||||||||||||
Net income (loss) |
24,600 |
9,801 |
(1,036) |
17,963 |
(27,901) |
23,427 |
||||||||||||||||||
Adjusted EBITDA (1) |
33,255 |
12,250 |
2,526 |
22,519 |
(4,153) |
66,397 |
||||||||||||||||||
Distributable Cash Flow (1) |
33,409 |
5,018 |
4,866 |
33,451 |
(18,329) |
58,415 |
||||||||||||||||||
Three Months Ended March 31, 2015 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
55,125 |
$ |
12,523 |
$ |
26,799 |
$ |
15,230 |
$ |
— |
$ |
109,677 |
||||||||||||
Total operating expenses excluding impairments (1) |
18,430 |
— |
29,290 |
18,169 |
3,371 |
69,260 |
||||||||||||||||||
Asset impairments |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Net income (loss) |
36,695 |
12,523 |
(2,491) |
(2,939) |
(26,299) |
17,489 |
||||||||||||||||||
Adjusted EBITDA (1) |
46,711 |
10,903 |
1,365 |
8,581 |
(3,356) |
64,204 |
||||||||||||||||||
Distributable Cash Flow (1) |
47,999 |
6,449 |
7,104 |
11,530 |
(19,793) |
53,289 |
______________________ | |
1. |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Coal, Hard Mineral Royalty and Other
Both the thermal and metallurgical coal markets remained severely challenged, and NRP does not anticipate that either market will recover in the near term, despite some recent modest improvements in the metallurgical markets. First quarter coal production in the United States was down 32% as compared to the first quarter of 2015, and NRP expects that coal producers will continue to cut production and idle additional mines in response to market conditions. In spite of this supply reduction, decreased demand for both thermal and metallurgical coal continues to out-pace supply cuts, and utility stockpiles remain at peak levels.
Revenues and other income decreased $14.5 million, or 26%, from $55.1 million in the three months ended March 31, 2015 to $40.6 million in the three months ended March 31, 2016. This decrease is primarily related to a $15.0 million reduction in total coal royalty revenues caused by a 3.0 million ton reduction in sales and a $0.61 per ton reduction in combined average coal royalty revenue per ton. While all regions except Northern Appalachia experienced reduced revenue, the largest decreases occurred in Central Appalachia and in the Illinois Basin, where the Deer Run mine is currently not producing.
Net income decreased $12.1 million, or 33%, from $36.7 million in the three months ended March 31, 2015 to $24.6 million in the three months ended March 31, 2016. This decrease is primarily related to reduced revenues discussed above and additional impairments of $1.9 million, partially offset by lower depreciation, depletion and amortization expenses.
Adjusted EBITDA decreased $13.4 million, or 29%, from $46.7 million in the three months ended March 31, 2015 to $33.3 million in the three months ended March 31, 2016. This decrease was primarily the result of lower coal royalty revenues.
Distributable cash flow decreased $14.6 million, or 30%, from $48.0 million in the three months ended March 31, 2015 to $33.4 million in the three months ended March 31, 2016. This decrease was primarily the result of lower revenues discussed above and lower receipts of deferred revenue, partially offset by the proceeds from the sale of the aggregate royalty properties of $9.8 million in the first quarter of 2016.
Soda Ash
Revenues and other income related to our Soda Ash segment decreased $2.7 million, or 22%, from $12.5 million in the three months ended March 31, 2015 to $9.8 million in the three months ended March 31, 2016. This decrease was mainly due to lower pricing and higher selling, general and administrative expenses. For the three months ended March 31, 2016, we received $12.3 million in cash distributions from Ciner Wyoming and for the three months ended March 31, 2015, we received $10.9 million in cash distributions. While distributable cash flow in both years reflects contingency payments related to the purchase of these assets, distributable cash flow of $5.0 million for the three months ended March 31, 2016 reflects the final contingency payment of $7.2 million.
VantaCore
VantaCore's construction aggregates mining and production business is largely dependent on the strength of the local markets that it serves and is seasonal, with lower production and sales expected during the first quarter of each year due to winter weather. VantaCore's Laurel Aggregates operation in southwestern Pennsylvania serves energy producers and oilfield service companies operating in the Marcellus and Utica shales and local residential and commercial construction businesses. The first quarter of 2016 was impacted by the slowing pace of natural gas exploration and development activity in those areas due to low natural gas prices, that was partially offset by increased local residential and commercial construction business activity. VantaCore's operations based in Clarksville, Tennessee and Baton Rouge, Louisiana depend on the pace of commercial and residential construction in those areas. Both the Clarksville and the Baton Rouge operations performed above expectations during the first quarter of 2016. VantaCore's Grand Rivers operations, which started up in July 2015, continues to build construction and sales volumes.
Revenues and other income related to our VantaCore segment decreased $2.1 million, or 8%, from $26.8 million in the three months ended March 31, 2015 to $24.7 million in the three months ended March 31, 2016. This decrease was primarily the result of a reduction in revenue from the brokered stone business at Laurel as well as reduced delivery and fuel income quarter-over-quarter. This decrease was partially offset by an increase in crushed stone, sand and gravel and construction revenue. Tonnage sold remained flat at 1.5 million tons quarter-over-quarter.
Net loss decreased $1.5 million, or 60% from a loss of $2.5 million in the three months ended March 31, 2015 to a loss of $1.0 million in the three months ended March 31, 2016. This reduction in loss was primarily due to a decline in materials cost and overhead, partially offset by the reduction in revenues discussed above.
Adjusted EBITDA increased $1.1 million from $1.4 million, or 79% in the three months ended March 31, 2015 to $2.5 million in the three months ended March 31, 2016. This increase was primarily the result of the decrease in net loss driven by lower costs discussed above.
Distributable cash flow decreased $2.2 million, or 31% from $7.1 million in the three months ended March 31, 2015 to $4.9 million in the three months ended March 31, 2016. This decrease was primarily the result of lower operating cash flows quarter-over-quarter.
Oil and Gas
Global crude oil prices remained low through the first quarter of 2016 and were significantly lower than the first quarter of 2015. Natural gas prices have remained depressed as well and are also significantly below the amounts realized in the first quarter of 2015. NRP's oil and gas revenues will continue to fluctuate with commodity prices and will decline over time due to the reduced drilling activity. As discussed previously, NRP sold substantially all of its oil and gas royalty properties in the first quarter and has initiated a process to sell NRP Oil and Gas' non-operated working interest properties.
Revenues and other income increased $12.4 million, or 82%, from $15.2 million in the three months ended March 31, 2015 to $27.6 million in the three months ended March 31, 2016. This increase was primarily due to a $20.3 million gain recorded on the sale of our oil and gas royalty assets. Production and royalty revenue within the segment declined $7.5 million mainly due to a decline in prices and production quarter-over-quarter and as a result of the sale of our royalty assets in February 2016.
Net income increased $20.9 million from a loss of $2.9 million in the three months ended March 31, 2015 to income of $18.0 million in the three months ended March 31, 2016. This increase was primarily the result of the asset sale gain discussed above.
Adjusted EBITDA increased $13.9 million, or 162%, from $8.6 million in the three months ended March 31, 2015 to $22.5 million in the three months ended March 31, 2016. This increase was primarily the result of the gain on the sale of assets discussed above. Decreased production revenues, partially offset by lower lease operating expenses and production taxes resulting from decreased production quarter-over-quarter, accounted for the remainder.
Distributable cash flow increased $22.0 million, or 191%, from $11.5 million in the three months ended March 31, 2015 to $33.5 million in the three months ended March 31, 2016. This increase was primarily the result of the $32.8 million asset sale proceeds received and $4.5 million lower reserves for maintenance capital expenditures, partially offset by lower cash flow from operations quarter-over-quarter.
Corporate and Financing
Corporate and financing general and administrative expense (including affiliates) includes corporate headquarters, financing and centralized treasury and accounting. These costs increased $0.8 million, or 24%, from $3.4 million in the three months ended March 31, 2015 to $4.2 million in the three months ended March 31, 2016 primarily due to increased legal and consulting fees and additional corporate personnel. Interest expense increased $0.8 million, or 3%, from $22.9 million in the three months ended March 31, 2015 to $23.7 million in the three months ended March 31, 2016. This increase was primarily the result of the write off of debt issue costs during the first quarter of 2016 in connection with the Fourth Amendment to our RBL Facility, partially offset by lower interest expense resulting from lower debt balances quarter-over-quarter.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Distributable Cash Flow" is a non-GAAP financial measure that represents net cash provided by operating activities, plus returns of unconsolidated equity investments, proceeds from sales of assets, and returns of long-term contract receivables—affiliate, less maintenance capital expenditures and distributions to non-controlling interest. Although distributable cash flow is a non-GAAP financial measure, we believe it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable 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. Distributable Cash Flow may not be calculated the same for us as for other companies. A reconciliation of Distributable Cash Flow to net cash provided by operating activities is included in the tables attached to this release.
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDA provides no information regarding a partnership's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Adjusted EBITDA does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Adjusted EBITDA is a useful measure because it is widely used by financial analysts, investors and rating agencies for comparative purposes. Adjusted EBITDA is also a financial measure widely used by investors in the high-yield bond market. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. A reconciliation of Adjusted EBITDA to net income is included in the tables attached to this release.
"Operating expenses excluding impairments" is a non-GAAP financial measure that we define as total operating expenses less asset impairments. "Operating expenses excluding impairments," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.
"Net income excluding impairments" Net income excluding impairments is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, trona and soda ash, construction aggregates, crude oil and natural gas, frac sand and other natural resources; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, our ability to consummate planned asset sales and execute on our long-term strategic plan 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.
-Financial Tables Follow-
Natural Resource Partners L.P. | ||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||
(in thousands, except per unit data) | ||||||||||
For the Three Months Ended | ||||||||||
March 31, | ||||||||||
2016 |
2015 | |||||||||
(unaudited) | ||||||||||
Revenues and other income: |
||||||||||
Coal, hard mineral royalty and other |
$ |
28,476 |
$ |
34,449 |
||||||
Coal, hard mineral royalty and other—affiliates |
10,569 |
19,061 |
||||||||
VantaCore |
24,682 |
26,799 |
||||||||
Oil and gas |
7,298 |
14,779 |
||||||||
Equity in earnings of Ciner Wyoming |
9,801 |
12,523 |
||||||||
Gain on asset sales |
21,925 |
2,066 |
||||||||
Total revenues and other income |
102,751 |
109,677 |
||||||||
Operating expenses: |
||||||||||
Operating and maintenance expenses |
30,902 |
37,421 |
||||||||
Operating and maintenance expenses—affiliates, net |
3,748 |
3,076 |
||||||||
Depreciation, depletion and amortization |
14,021 |
24,554 |
||||||||
Amortization expense—affiliate |
722 |
838 |
||||||||
General and administrative |
3,235 |
2,287 |
||||||||
General and administrative—affiliates |
937 |
1,084 |
||||||||
Asset impairments |
2,030 |
— |
||||||||
Total operating expenses |
55,595 |
69,260 |
||||||||
Income from operations |
47,156 |
40,417 |
||||||||
Other income (expense) |
||||||||||
Interest expense |
(23,748) |
(22,943) |
||||||||
Interest income |
19 |
15 |
||||||||
Other expense, net |
(23,729) |
(22,928) |
||||||||
Net income |
23,427 |
17,489 |
||||||||
Net income attributable to partners: |
||||||||||
Limited partners |
23,024 |
17,139 |
||||||||
General partner |
403 |
350 |
||||||||
Basic and diluted net income per common unit |
$ |
1.88 |
$ |
1.40 |
||||||
Weighted average number of common units outstanding |
12,230 |
12,230 |
||||||||
Net income |
$ |
23,427 |
$ |
17,489 |
||||||
Add: comprehensive loss from unconsolidated investment and other |
(545) |
(965) |
||||||||
Comprehensive income |
$ |
22,882 |
$ |
16,524 |
Natural Resource Partners L.P. | |||||||||||
Consolidated Statements of Cash Flow | |||||||||||
(in thousands) | |||||||||||
For the Three Months Ended | |||||||||||
March 31, | |||||||||||
2016 |
2015 | ||||||||||
(unaudited) | |||||||||||
Cash flows from operating activities: |
|||||||||||
Net income |
$ |
23,427 |
$ |
17,489 |
|||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||
Depreciation, depletion and amortization |
14,021 |
24,554 |
|||||||||
Amortization expense—affiliates |
722 |
838 |
|||||||||
Distributions from equity earnings from unconsolidated investments |
12,250 |
10,903 |
|||||||||
Asset impairment |
2,030 |
— |
|||||||||
Gain on asset sales |
(21,925) |
(2,066) |
|||||||||
Equity earnings from unconsolidated investment |
(9,801) |
(12,523) |
|||||||||
Other, net |
1,887 |
1,056 |
|||||||||
Other, net—affiliates |
664 |
7 |
|||||||||
Change in operating assets and liabilities: |
|||||||||||
Accounts receivable |
5,782 |
15,110 |
|||||||||
Accounts receivable—affiliates |
(661) |
3,643 |
|||||||||
Accounts payable |
(48) |
(2,642) |
|||||||||
Accounts payable—affiliates |
(237) |
(14) |
|||||||||
Accrued liabilities |
(5,900) |
(5,354) |
|||||||||
Deferred revenue |
(4,063) |
5,845 |
|||||||||
Deferred revenue—affiliates |
(985) |
(738) |
|||||||||
Other items, net |
1,146 |
103 |
|||||||||
Other items, net—affiliates |
1,119 |
(739) |
|||||||||
Net cash provided by operating activities |
19,428 |
55,472 |
|||||||||
Cash flows from investing activities: |
|||||||||||
Acquisition of mineral rights |
(2,725) |
(16,788) |
|||||||||
Acquisition of plant and equipment and other |
(2,221) |
(1,365) |
|||||||||
Proceeds from sale of plant and equipment and other |
3 |
905 |
|||||||||
Proceeds from sale of oil and gas properties |
32,848 |
3,395 |
|||||||||
Proceeds from sale of coal and hard mineral royalty properties |
9,802 |
866 |
|||||||||
Return of long-term contract receivables—affiliate |
309 |
1,137 |
|||||||||
Net cash provided by (used in) investing activities |
38,016 |
(11,850) |
|||||||||
Cash flows from financing activities: |
|||||||||||
Proceeds from loans |
— |
25,000 |
|||||||||
Repayments of loans |
(51,166) |
(41,166) |
|||||||||
Distributions to partners |
(5,616) |
(43,678) |
|||||||||
Distributions to non-controlling interest |
— |
(662) |
|||||||||
Debt issue costs and other |
(338) |
83 |
|||||||||
Net cash used in financing activities |
(57,120) |
(60,423) |
|||||||||
Net increase (decrease) in cash and cash equivalents |
324 |
(16,801) |
|||||||||
Cash and cash equivalents at beginning of period |
51,773 |
50,076 |
|||||||||
Cash and cash equivalents at end of period |
$ |
52,097 |
$ |
33,275 |
|||||||
Supplemental cash flow information: |
|||||||||||
Cash paid during the period for interest |
$ |
13,812 |
$ |
14,344 |
|||||||
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities |
811 |
3,761 |
Natural Resource Partners L.P. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(in thousands) | |||||||||||
March 31, 2016 |
December 31, 2015 | ||||||||||
(unaudited) |
|||||||||||
ASSETS |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ |
52,097 |
$ |
51,773 |
|||||||
Accounts receivable, net |
48,154 |
50,167 |
|||||||||
Accounts receivable—affiliates |
7,525 |
6,864 |
|||||||||
Inventory |
7,406 |
7,835 |
|||||||||
Prepaid expenses and other |
3,835 |
4,490 |
|||||||||
Total current assets |
119,017 |
121,129 |
|||||||||
Land |
25,022 |
25,022 |
|||||||||
Plant and equipment, net |
57,444 |
61,239 |
|||||||||
Mineral rights, net |
1,060,829 |
1,094,027 |
|||||||||
Intangible assets, net |
3,701 |
3,930 |
|||||||||
Intangible assets, net—affiliate |
52,274 |
52,997 |
|||||||||
Equity in unconsolidated investment |
258,939 |
261,942 |
|||||||||
Long-term contracts receivable—affiliate |
45,931 |
47,359 |
|||||||||
Other assets |
1,204 |
1,266 |
|||||||||
Other assets—affiliate |
532 |
1,124 |
|||||||||
Total assets |
$ |
1,624,893 |
$ |
1,670,035 |
|||||||
LIABILITIES AND CAPITAL |
|||||||||||
Current liabilities: |
|||||||||||
Accounts payable |
$ |
7,595 |
$ |
8,465 |
|||||||
Accounts payable—affiliates |
1,227 |
1,464 |
|||||||||
Accrued liabilities |
40,004 |
45,735 |
|||||||||
Current portion of long-term debt, net |
154,441 |
80,745 |
|||||||||
Total current liabilities |
203,267 |
136,409 |
|||||||||
Deferred revenue |
76,750 |
80,812 |
|||||||||
Deferred revenue—affiliates |
81,868 |
82,853 |
|||||||||
Long-term debt, net |
1,146,958 |
1,270,281 |
|||||||||
Long-term debt, net—affiliate |
19,936 |
19,930 |
|||||||||
Other non-current liabilities |
5,839 |
6,808 |
|||||||||
Partners' capital: |
|||||||||||
Common unitholders' interest (12.2 million units outstanding) |
96,615 |
79,094 |
|||||||||
General partner's interest |
(249) |
(606) |
|||||||||
Accumulated other comprehensive loss |
(2,697) |
(2,152) |
|||||||||
Total partners' capital |
93,669 |
76,336 |
|||||||||
Non-controlling interest |
(3,394) |
(3,394) |
|||||||||
Total capital |
90,275 |
72,942 |
|||||||||
Total liabilities and capital |
$ |
1,624,893 |
$ |
1,670,035 |
Natural Resource Partners L.P. | ||||||||||||
Operating Statistics - Coal, Hard Mineral Royalty and Other | ||||||||||||
(in thousands except per ton data) | ||||||||||||
For the Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2016 |
2015 | |||||||||||
(unaudited) | ||||||||||||
Coal royalty production (tons) |
||||||||||||
Appalachia |
||||||||||||
Northern |
1,431 |
1,745 |
||||||||||
Central |
3,227 |
4,384 |
||||||||||
Southern |
745 |
974 |
||||||||||
Total Appalachia |
5,403 |
7,103 |
||||||||||
Illinois Basin |
1,727 |
2,584 |
||||||||||
Northern Powder River Basin |
974 |
1,304 |
||||||||||
Gulf Coast |
— |
117 |
||||||||||
Total coal royalty production |
8,104 |
11,108 |
||||||||||
Average coal royalty revenue per ton |
||||||||||||
Appalachia |
||||||||||||
Northern |
$ |
0.82 |
$ |
0.36 |
||||||||
Central |
3.25 |
3.99 |
||||||||||
Southern |
2.96 |
4.81 |
||||||||||
Total Appalachia |
2.56 |
3.21 |
||||||||||
Illinois Basin |
3.29 |
4.05 |
||||||||||
Northern Powder River Basin |
2.72 |
2.69 |
||||||||||
Gulf Coast |
— |
3.52 |
||||||||||
Combined average coal royalty revenue per ton |
$ |
2.74 |
$ |
3.35 |
||||||||
Coal royalty revenues |
||||||||||||
Appalachia |
||||||||||||
Northern |
$ |
1,172 |
$ |
634 |
||||||||
Central |
10,473 |
17,506 |
||||||||||
Southern |
2,202 |
4,686 |
||||||||||
Total Appalachia |
13,847 |
22,826 |
||||||||||
Illinois Basin |
5,686 |
10,467 |
||||||||||
Northern Powder River Basin |
2,652 |
3,507 |
||||||||||
Gulf Coast |
— |
412 |
||||||||||
Total coal royalty revenue |
$ |
22,185 |
$ |
37,212 |
||||||||
Other Coal, Hard Mineral Royalty and Other revenues |
||||||||||||
Override revenue |
$ |
210 |
$ |
691 |
||||||||
Transportation and processing fees |
4,234 |
4,597 |
||||||||||
Minimums recognized as revenue |
6,964 |
4,540 |
||||||||||
Condemnation related revenues |
268 |
1,665 |
||||||||||
Wheelage |
413 |
777 |
||||||||||
Hard mineral royalty revenues |
890 |
2,173 |
||||||||||
Gain on sale of hard mineral royalty properties |
1,590 |
— |
||||||||||
Property tax revenue |
3,305 |
3,004 |
||||||||||
Other |
576 |
466 |
||||||||||
Total other Coal, Hard Mineral Royalty and Other revenue |
$ |
18,450 |
$ |
17,913 |
||||||||
Total Coal, Hard Mineral Royalty and Other revenue |
$ |
40,635 |
$ |
55,125 |
Natural Resource Partners L.P. | ||||||||
Operating Statistics - Oil and Gas | ||||||||
(Revenues in thousands) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2016 |
2015 | |||||||
(unaudited) | ||||||||
Williston Basin non-operated working interests: |
||||||||
Production volumes: |
||||||||
Oil (MBbl) |
246 |
307 |
||||||
Natural gas (Mcf) |
229 |
221 |
||||||
NGL (MBbl) |
30 |
40 |
||||||
Total production (MBoe) |
314 |
384 |
||||||
Average sales price per unit: |
||||||||
Oil (Bbl) |
$ |
25.61 |
$ |
39.34 |
||||
Natural gas (Mcf) |
1.80 |
2.71 |
||||||
NGL (Bbl) |
7.00 |
12.28 |
||||||
Revenues: |
||||||||
Oil |
$ |
6,301 |
$ |
12,076 |
||||
Natural gas |
413 |
598 |
||||||
NGL |
210 |
491 |
||||||
Total production revenues |
$ |
6,924 |
$ |
13,165 |
||||
Other oil and gas related revenues |
||||||||
Royalty and overriding royalty revenues |
$ |
374 |
$ |
1,615 |
||||
Gain on sale of assets |
$ |
20,335 |
$ |
450 |
||||
Total oil and gas revenues |
$ |
27,633 |
$ |
15,230 |
Natural Resource Partners L.P. | ||||||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
23,298 |
$ |
5,018 |
$ |
6,113 |
$ |
3,328 |
$ |
(18,329) |
$ |
19,428 |
||||||||||||
Add: return on long-term contract receivables—affiliate |
309 |
— |
— |
— |
— |
309 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
9,802 |
— |
— |
32,848 |
— |
42,650 |
||||||||||||||||||
Less: maintenance capital expenditures |
— |
— |
(1,250) |
(2,725) |
— |
(3,975) |
||||||||||||||||||
Distributable Cash Flow |
$ |
33,409 |
$ |
5,018 |
$ |
4,866 |
$ |
33,451 |
$ |
(18,329) |
$ |
58,415 |
||||||||||||
Three Months Ended March 31, 2015 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
46,154 |
$ |
6,449 |
$ |
7,317 |
$ |
15,345 |
$ |
(19,793) |
$ |
55,472 |
||||||||||||
Add: return on long-term contract receivables—affiliate |
1,137 |
— |
— |
— |
— |
1,137 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
— |
— |
905 |
— |
— |
905 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
866 |
— |
— |
3,395 |
— |
4,261 |
||||||||||||||||||
Less: maintenance capital expenditures |
(158) |
— |
(1,118) |
(7,210) |
— |
(8,486) |
||||||||||||||||||
Distributable Cash Flow |
$ |
47,999 |
$ |
6,449 |
$ |
7,104 |
$ |
11,530 |
$ |
(19,793) |
$ |
53,289 |
Natural Resource Partners L.P. | ||||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||||||
Net income (loss) |
$ |
24,600 |
$ |
9,801 |
$ |
(1,036) |
$ |
17,963 |
$ |
(27,901) |
$ |
23,427 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(9,801) |
— |
— |
— |
(9,801) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
— |
12,250 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
6,762 |
— |
3,562 |
4,419 |
— |
14,743 |
||||||||||||||||||
Add: asset impairment |
1,893 |
— |
— |
137 |
— |
2,030 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
23,748 |
23,748 |
||||||||||||||||||
Adjusted EBITDA |
$ |
33,255 |
$ |
12,250 |
$ |
2,526 |
$ |
22,519 |
$ |
(4,153) |
$ |
66,397 |
||||||||||||
Three Months Ended March 31, 2015 |
||||||||||||||||||||||||
Net income (loss) |
$ |
36,695 |
$ |
12,523 |
$ |
(2,491) |
$ |
(2,939) |
$ |
(26,299) |
$ |
17,489 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(12,523) |
— |
— |
— |
(12,523) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
10,903 |
— |
— |
— |
10,903 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
10,016 |
— |
3,856 |
11,520 |
— |
25,392 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
22,943 |
22,943 |
||||||||||||||||||
Adjusted EBITDA |
$ |
46,711 |
$ |
10,903 |
$ |
1,365 |
$ |
8,581 |
$ |
(3,356) |
$ |
64,204 |
Operating Expenses Excluding Impairments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended March 31, 2016 |
||||||||||||||||||||||||
Total operating expenses |
$ |
16,035 |
$ |
— |
$ |
25,718 |
$ |
9,670 |
$ |
4,172 |
$ |
55,595 |
||||||||||||
Less: asset impairments |
1,893 |
— |
— |
137 |
— |
2,030 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
14,142 |
$ |
— |
$ |
25,718 |
$ |
9,533 |
$ |
4,172 |
$ |
53,565 |
||||||||||||
Three Months Ended March 31, 2015 |
||||||||||||||||||||||||
Total operating expenses |
$ |
18,430 |
$ |
— |
$ |
29,290 |
$ |
18,169 |
$ |
3,371 |
$ |
69,260 |
||||||||||||
Less: asset impairments |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
18,430 |
$ |
— |
$ |
29,290 |
$ |
18,169 |
$ |
3,371 |
$ |
69,260 |
Natural Resource Partners L.P. | ||||||||
Non-cash impairment charges attributable to the limited partners | ||||||||
(in thousands) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2016 |
2015 | |||||||
(unaudited) | ||||||||
Asset impairments, as reported |
$ |
2,030 |
$ |
— |
||||
Asset impairments attributable to the limited partners |
1,989 |
— |
||||||
Asset impairments attributable to the general partners |
41 |
— |
||||||
Gain on sale of assets attributable to the limited partners | ||||||||
(in thousands) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2016 |
2015 | |||||||
(unaudited) | ||||||||
Gain on sale of assets, as reported |
$ |
21,925 |
$ |
2,066 |
||||
Gain on sale of assets attributable to the limited partners |
21,487 |
2,025 |
||||||
Gain on sale of assets attributable to the general partners |
438 |
41 |
||||||
Net Income and Net Income Per Unit Attributable to the Limited Partners Excluding Impairments and Asset Sales | ||||||||
(in thousands) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2016 |
2015 | |||||||
(unaudited) | ||||||||
Net income attributable to the limited partners, as reported |
$ |
23,024 |
$ |
17,139 |
||||
Gain on sale of assets attributable to the limited partners |
(21,487) |
(2,025) |
||||||
Asset impairments attributable to the limited partners |
1,989 |
— |
||||||
Net income attributable to the limited partners excluding impairments and gain on asset sales |
$ |
3,526 |
$ |
15,114 |
||||
Weighted average number of common units outstanding: |
12,230 |
12,230 |
||||||
Net income per unit attributable to the limited partners excluding impairments and gain on asset sales |
$ |
0.29 |
$ |
1.24 |
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, April 21, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) reported today the Board of Directors of its general partner declared a first quarter 2016 distribution of $0.45 per unit for NRP. The distribution will be paid on May 13, 2016 to unitholders of record on May 5, 2016.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
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SOURCE Natural Resource Partners L.P.
HOUSTON, March 14, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced today that the 2015 tax packages for unitholders, including the individual K-1 tax information is now available on its website www.taxpackagesupport.com/naturalresource. The K-1 tax information will be mailed commencing March 15, 2016. For additional K-1 tax information and unitholder support, unitholders may call (888) 334-7102.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, March 11, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced today that it has filed its Form 10-K for the period ended December 31, 2015 with the Securities and Exchange Commission. The report is available for viewing or downloading on its website www.nrplp.com. Unitholders may request a hardcopy of the complete audited financial statements, free of charge, at info@nrplp.com or by contacting the partnership at 1201 Louisiana, Suite 3400, Houston, TX 77002.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, March 11, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported a net loss attributable to the limited partners for the year ended December 31, 2015 of $559.5 million, or $45.75 per unit, compared with net income attributable to the limited partners of $106.7 million, or $9.42 per unit, a year earlier. Results for the full year 2015 were negatively impacted by $668.0 million of non-cash impairment charges attributable to the limited partners, as the market value of certain of NRP's assets were impacted by continued deterioration of the coal markets and the significant decline in oil prices. Excluding those impairments, net income attributable to the limited partners was $8.87 per unit. Distributable Cash Flow for the year ended December 31, 2015 declined 5% to $197.0 million and Adjusted EBITDA remained relatively flat at $292.1 million. All references to net income or loss per unit, as well as distributions per unit, included in this release have been adjusted to give effect to the one-for-ten reverse unit split effective February 17, 2016.
NRP's results for the quarter ended December 31, 2015 included net loss attributable to the limited partners of $21.3 million, or $1.74 per unit, compared to net income attributable to the limited partners of $8.5 million, or $0.70 per unit, for the fourth quarter 2014. Both quarters were negatively impacted by impairments, with $51.0 million recorded in 2015 versus $20.6 million in 2014. Excluding impairments, net income attributable to the limited partners for the fourth quarter 2015 was $2.34 per unit, compared to $2.36 per unit for the fourth quarter 2014. Distributable Cash Flow for the fourth quarter 2015 declined 18% to $39.1 million and Adjusted EBITDA declined 12% to $70.2 million.
"Although our soda ash business performed well again in the fourth quarter and we exceeded the upper end of our 2015 guidance for Adjusted EBITDA and Distributable Cash Flow, low commodity prices and challenging markets continued to pressure our coal and oil and gas businesses and, to a lesser extent, our aggregates business," said Wyatt Hogan, President and Chief Operating Officer. "In this difficult operating environment, NRP remains steadfastly focused on deleveraging. We believe the actions taken over the last year have better positioned the partnership to navigate this difficult commodity price period."
NRP has taken the following steps to achieve the financial objectives outlined in the April 2015 strategic plan:
Effective February 17, 2016, NRP completed a 1-for-10 reverse unit split, decreasing the number of units outstanding to 12.2 million in order to ensure continued compliance with New York Stock Exchange listing standards.
At December 31, 2015, NRP had $64.8 million of liquidity, consisting of $51.8 million in cash and $13.0 million available for borrowing under its revolving credit facilities.
As a result of acquisitions that diversified its natural resource asset base, effective for the quarter ended December 31, 2015, NRP changed the organizational structure of its financial information from a single operating segment to the four operating segments described below:
1) Coal, Hard Mineral Royalty and Other—consists primarily of coal royalty, coal related transportation and processing assets, aggregate and industrial minerals royalty assets and timber. NRP's coal reserves are primarily located in Appalachia, the Illinois Basin and the Western United States. NRP's aggregates and industrial minerals are located in a number of states across the United States. In February, NRP sold a portion of its aggregates royalties properties for $10 million.
2) Soda Ash—consists of the NRP's 49% non-controlling equity interest in a trona ore mining operation and soda ash refinery in the Green River Basin, Wyoming. Ciner Resources LP, NRP's operating partner, mines the trona, processes it into soda ash, and distributes the soda ash both domestically and internationally into the glass and chemicals industries. NRP receives regular quarterly distributions from this business.
3) VantaCore—consists of NRP's construction materials business that operates hard rock quarries, sand and gravel plants, asphalt plants and two marine terminals. VantaCore operates in Pennsylvania, West Virginia, Tennessee, Kentucky and Louisiana.
4) Oil and Gas—consists of NRP's non-operated working interests, royalty interests and overriding royalty interests in oil and natural gas properties. NRP's primary interests in oil and natural gas producing properties are non-operated working interests located in the Williston Basin in North Dakota and Montana. During 2015, NRP also owned fee mineral, royalty or overriding royalty interests in oil and gas properties in several other regions, including the Appalachian Basin, Oklahoma and Louisiana. In February, NRP sold royalty interests in several producing properties located in the Appalachian Basin, including its overriding royalty interests in the Marcellus Shale, for $37.5 million in cash. The effective date of the sale was January 1, 2016.
Direct segment costs and certain costs incurred at a corporate level that are identifiable and that benefit NRP's segments are allocated to them. These allocated costs include costs of: taxes, legal, information technology; human resources; and shared facilities services.
In reconciling items to consolidated operating income, the Corporate and Financing segment includes functional corporate departments that do not earn revenues. Costs incurred by this segment include corporate headquarters, acquisition, financing, centralized treasury and accounting and other corporate-level activity not specifically allocated to a segment.
Business Results and Outlook
The table below presents NRP's business results by segment for the three and twelve months ended December 31, 2015 and 2014:
Operating Business Segments |
||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
59,825 |
$ |
13,179 |
$ |
31,979 |
$ |
11,080 |
$ |
— |
$ |
116,063 |
||||||||||||
Operating expenses excluding impairments (1) |
21,486 |
— |
29,368 |
9,688 |
2,525 |
63,067 |
||||||||||||||||||
Asset impairments |
12,821 |
— |
6,218 |
31,914 |
— |
50,953 |
||||||||||||||||||
Net income (loss) |
25,518 |
13,179 |
(3,607) |
(30,522) |
(26,354) |
(21,786) |
||||||||||||||||||
Adjusted EBITDA (1) |
48,856 |
12,250 |
5,690 |
5,963 |
(2,402) |
70,357 |
||||||||||||||||||
Distributable Cash Flow (1) |
47,961 |
12,251 |
2,687 |
3,343 |
(33,448) |
32,794 |
||||||||||||||||||
Three Months Ended December 31, 2014 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
60,586 |
$ |
12,551 |
$ |
42,051 |
$ |
22,085 |
$ |
— |
$ |
137,273 |
||||||||||||
Operating expenses excluding impairments (1) |
22,247 |
— |
42,019 |
19,777 |
1,595 |
85,638 |
||||||||||||||||||
Asset impairments |
20,585 |
— |
— |
— |
— |
20,585 |
||||||||||||||||||
Net income (loss) |
17,754 |
12,551 |
32 |
2,308 |
(24,000) |
8,645 |
||||||||||||||||||
Adjusted EBITDA (1) |
53,249 |
10,780 |
3,328 |
14,360 |
(1,574) |
80,143 |
||||||||||||||||||
Distributable Cash Flow (1) |
63,131 |
10,776 |
1,884 |
(1,864) |
(26,231) |
47,696 |
||||||||||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
246,353 |
$ |
49,918 |
$ |
139,013 |
$ |
53,565 |
$ |
— |
$ |
488,849 |
||||||||||||
Operating expenses excluding impairments (1) |
76,941 |
— |
132,523 |
63,354 |
12,348 |
285,166 |
||||||||||||||||||
Asset impairments |
307,800 |
— |
6,218 |
367,576 |
— |
681,594 |
||||||||||||||||||
Net income (loss) |
(138,388) |
49,918 |
272 |
(377,365) |
(106,157) |
(571,720) |
||||||||||||||||||
Adjusted EBITDA (1) |
204,600 |
46,795 |
22,068 |
30,983 |
(12,330) |
292,116 |
||||||||||||||||||
Distributable Cash Flow (1) |
212,193 |
43,029 |
18,802 |
24,616 |
(101,659) |
196,981 |
||||||||||||||||||
Year Ended December 31, 2014 |
||||||||||||||||||||||||
Total revenues and other income |
$ |
256,719 |
$ |
41,416 |
$ |
42,051 |
$ |
59,566 |
$ |
— |
$ |
399,752 |
||||||||||||
Operating expenses excluding impairments (1) |
86,832 |
— |
42,019 |
45,228 |
10,545 |
184,624 |
||||||||||||||||||
Asset impairments |
26,209 |
— |
— |
— |
— |
26,209 |
||||||||||||||||||
Net income (loss) |
143,678 |
41,416 |
32 |
14,338 |
(90,634) |
108,830 |
||||||||||||||||||
Adjusted EBITDA (1) |
216,842 |
46,638 |
3,328 |
38,273 |
(10,449) |
294,632 |
||||||||||||||||||
Distributable Cash Flow (1) |
234,965 |
46,149 |
1,884 |
17,030 |
(91,662) |
208,366 |
1. |
See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
Coal, Hard Mineral Royalty and Other
The thermal and metallurgical coal markets remained severely challenged in 2015, leading to reduced production and coal royalty revenues for NRP. The domestic and global coal markets continue to be over-supplied due to decreased coal demand resulting from increased government regulations, low natural gas prices (coal's competing fuel) and the strength of the United States dollar that materially impacted exports in 2015. NRP expects the markets to remain challenged in 2016 with additional production cuts and mines idled, but NRP does not know to what extent its properties will be impacted.
Revenues and other income decreased $10.4 million, or 4%, from $256.7 million in 2014 to $246.4 million in 2015. This decrease is primarily related to a 3.4 million ton decrease in coal production and a $0.59 per ton decline in average coal royalty revenue per ton, resulting in a $40.2 million reduction in coal royalty revenues. Offsetting a significant portion of this decline was $21 million in revenues for lease assignment fees as well as a $3.7 million increase in gains from condemnation sales.
Net income decreased $282.1 million, from income of $143.7 million in 2014 to a $138.4 million loss in 2015. This decrease is primarily related to the $281.6 million increase in asset impairment expense during the year ended December 31, 2015. The impairment expense resulted from facts and circumstances that indicated that the carrying value of certain mineral rights exceeded expected future cash flows from those assets. The decrease in revenues discussed above also contributed to the decrease in net income year-over-year. These factors were partially offset by an $8.2 million decrease in depreciation, depletion and amortization as a result of the third quarter 2015 asset impairments in addition to a $1.7 million decrease in operating expenses mainly related to lower property taxes.
Adjusted EBITDA decreased $12.2 million, or 6%, from $216.8 million in 2014 to $204.6 million in 2015. This decrease was primarily the result of decreased revenues.
Distributable cash flow decreased $22.8 million, or 10%, from $235.0 million in 2014 to $212.2 million in 2015. This decrease was primarily the result of lower coal royalty revenues.
Soda Ash
Revenues and other income related to our Soda Ash segment increased $8.5 million, or 21%, from $41.4 million in 2014 to $49.9 million in 2015. For the year ended December 31, 2015, we received $46.8 million in cash distributions from Ciner Wyoming and for the year ended December 31, 2014, we received $46.6 million in cash distributions.
VantaCore
VantaCore's construction aggregates mining and production business is largely dependent on the strength of the local markets that it serves and is also seasonal, with lower production and sales expected during the first quarter of each year due to winter weather. VantaCore's Laurel Aggregates operation in southwestern Pennsylvania serves producers and oilfield service companies operating in the Marcellus and Utica Shales and was impacted during 2015 by the slowing pace of exploration and development of natural gas in those areas due to low natural gas prices. Increased local construction activity partially offset these declines during 2015, but we expect that Laurel's business will continue to be impacted by decreased natural gas development activities. VantaCore's operations based in Clarksville, Tennessee and Baton Rouge, Louisiana depend on the pace of commercial and residential construction in those areas. The Clarksville operation performed above expectations during 2015, while the Baton Rouge operation volumes were lower than expected. In June 2015, VantaCore purchased a hard rock quarry operation located on the Tennessee River near Grand Rivers, Kentucky from one of NRP's aggregates lessees. This operation leases reserves from NRP and sells its produced limestone aggregates in both the local market and downstream to river-based markets.
Tonnage sold increased 5.1 million tons, or 222%, from 2.3 million tons in 2014 to 7.4 million tons in 2015. Revenues and other income related to our VantaCore segment increased $97.0 million, or 231%, from $42.1 million in 2014 to $139.0 million in 2015. Net income increased $0.2 million from less than $0.1 million in 2014 to $0.2 million in 2015. Adjusted EBITDA increased $18.7 million from $3.3 million in 2014 to $22.1 million in 2015. Distributable cash flow increased $16.9 million from $1.9 million in 2014 to $18.8 million. These increases are due to the fact that 2014 results only include three months of VantaCore results as compared to a full year of results for 2015.
Oil and Gas
Global oil prices continued to decline in 2015 and remained significantly lower than the same period in 2014. Although domestic crude oil production has also started to decline, oil is being imported into storage and inventories remain above the five year average indicating continued excessive global supply. Production of crude is estimated to continue to decline as a result of reduced development drilling activities. Natural gas prices have also shown recent declines due to reduced demand and increased inventories.
Revenues and other income decreased $6.0 million, or 10%, from $59.6 million in 2014 to $53.6 million in 2015. This decrease is due to lower commodity prices during the year, partially offset by increased production.
Net income decreased $392 million from income of $14.3 million in 2014 to a loss of $377.4 million in 2015. This decrease was primarily the result of the $367.6 million impairment expense in our Oil and Gas segment. Also contributing to this reduction in income was the decreased revenue discussed above, in addition to the increase in operating and maintenance expenses and depreciation, depletion and amortization expense as a result of a full year of operating expenses related to the fourth quarter 2014 Sanish Field acquisition.
Adjusted EBITDA decreased $7.3 million, or 19%, from $38.3 million in 2014 to $31.0 million in 2015. This decrease was primarily the result of decreased revenues and increased operating expenses year-over-year.
Distributable cash flow increased $7.6 million, or 45%, from $17.0 million in 2014 to $24.6 million in 2015. This increase was primarily the result of increased cash flow from operations offset somewhat by higher maintenance capital expenditures.
Corporate and Financing
General and administrative costs increased $1.8 million from $10.5 million in 2014 to $12.3 million in 2015 due to additional personnel and higher outsourcing costs. Interest expense increased $13.6 million, or 17%, from $80.2 million in 2014 to $93.8 million in 2015. This increase was primarily the result of additional debt incurred to complete acquisitions in the fourth quarter of 2014.
2016 Market Outlook
NRP expects that its aggregates business will remain relatively flat and that distributions received from its soda ash business will increase in 2016. However, NRP expects continued deterioration in both the coal and oil and gas businesses in 2016. Given the extreme volatility in these markets, it is difficult for NRP to anticipate how much its properties will be affected at this time. Accordingly, NRP is not issuing any financial guidance for 2016 at this time.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Non-GAAP Financial Measures
"Distributable Cash Flow" is a non-GAAP financial measure that represents net cash provided by operating activities, plus returns of unconsolidated equity investments, proceeds from sales of assets, and returns of long-term contract receivables—affiliate, less maintenance capital expenditures and distributions to non-controlling interest. Although distributable cash flow is a non-GAAP financial measure, we believe it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable 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. Distributable Cash Flow may not be calculated the same for us as for other companies. A reconciliation of Distributable Cash Flow to net cash provided by operating activities is included in the tables attached to this release.
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDA should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDA provides no information regarding a partnership's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Adjusted EBITDA does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Adjusted EBITDA is a useful measure because it is widely used by financial analysts, investors and rating agencies for comparative purposes. Adjusted EBITDA is also a financial measure widely used by investors in the high-yield bond market. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. A reconciliation of Adjusted EBITDA to net income is included in the tables attached to this release.
"Operating expenses excluding impairments" is a non-GAAP financial measure that we define as total operating expenses less asset impairments. "Operating expenses excluding impairments," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.
"Net income excluding impairments" Net income excluding impairments is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.
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, but are not limited to, commodity prices; decreases in demand for coal, trona and soda ash, construction aggregates, crude oil and natural gas, frac sand and other natural resources; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment 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.
-Financial Tables Follow-
Natural Resource Partners L.P. | ||||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||||
(in thousands, except per unit data) | ||||||||||||||||||
For the Three Months Ended, |
For the Year Ended | |||||||||||||||||
December 31, |
December 31, | |||||||||||||||||
2015 |
2014 |
2015 |
2014 | |||||||||||||||
(unaudited) |
||||||||||||||||||
Revenues and other income: |
||||||||||||||||||
Coal, hard mineral royalty and other |
$ |
41,048 |
$ |
41,361 |
$ |
156,638 |
$ |
172,160 |
||||||||||
Coal, hard mineral royalty and other - affiliates |
18,777 |
19,225 |
89,715 |
84,559 |
||||||||||||||
VantaCore |
31,979 |
42,051 |
139,013 |
42,051 |
||||||||||||||
Oil and gas |
11,080 |
22,085 |
53,565 |
59,566 |
||||||||||||||
Equity in earnings of Ciner Wyoming |
13,179 |
12,551 |
49,918 |
41,416 |
||||||||||||||
Total revenues and other income |
116,063 |
137,273 |
488,849 |
399,752 |
||||||||||||||
Operating expenses: |
||||||||||||||||||
Operating and maintenance expenses |
34,057 |
49,708 |
155,959 |
83,433 |
||||||||||||||
Operating and maintenance expenses - affiliates |
8,334 |
4,077 |
16,031 |
10,770 |
||||||||||||||
Depreciation, depletion and amortization |
18,152 |
30,258 |
100,828 |
79,876 |
||||||||||||||
General and administrative |
1,022 |
821 |
7,036 |
7,287 |
||||||||||||||
General and administrative - affiliates |
1,503 |
774 |
5,312 |
3,258 |
||||||||||||||
Asset impairments |
50,953 |
20,585 |
681,594 |
26,209 |
||||||||||||||
Total operating expenses |
114,021 |
106,223 |
966,760 |
210,833 |
||||||||||||||
Income (loss) from operations |
2,042 |
31,050 |
(477,911) |
188,919 |
||||||||||||||
Other income (expense) |
||||||||||||||||||
Interest expense |
(23,830) |
(22,426) |
(93,827) |
(80,185) |
||||||||||||||
Interest income |
2 |
21 |
18 |
96 |
||||||||||||||
Other expense, net |
(23,828) |
(22,405) |
(93,809) |
(80,089) |
||||||||||||||
Net Income (loss) |
(21,786) |
8,645 |
(571,720) |
108,830 |
||||||||||||||
Net income (loss) attributable to partners: |
||||||||||||||||||
Limited partners |
(21,326) |
8,472 |
(559,492) |
106,653 |
||||||||||||||
General partner |
(460) |
173 |
(12,228) |
2,177 |
||||||||||||||
Basic and diluted net income (loss) per common unit |
$ |
(1.74) |
$ |
0.70 |
$ |
(45.75) |
$ |
9.42 |
||||||||||
Weighted average number of common units outstanding: |
12,230 |
12,145 |
12,230 |
11,326 |
||||||||||||||
Net income (loss) |
$ |
(21,786) |
$ |
8,645 |
$ |
(571,720) |
$ |
108,830 |
||||||||||
Add: Comprehensive income (loss) from unconsolidated investment and other |
198 |
(187) |
(1,693) |
(81) |
||||||||||||||
Comprehensive income (loss) attributable to NRP |
$ |
(21,588) |
$ |
8,458 |
$ |
(573,413) |
$ |
108,749 |
Natural Resource Partners L.P. | |||||||||||||||||||
Consolidated Statements of Cash Flow | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||
(unaudited) |
|||||||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||||
Net income (loss) |
$ |
(21,786) |
$ |
8,645 |
$ |
(571,720) |
$ |
108,830 |
|||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||||||||||||||||
Asset impairment |
50,953 |
20,585 |
681,594 |
26,209 |
|||||||||||||||
Depreciation, depletion and amortization |
18,152 |
30,258 |
100,828 |
79,876 |
|||||||||||||||
Distributions from equity earnings from unconsolidated investment |
12,250 |
10,780 |
46,795 |
43,005 |
|||||||||||||||
Equity earnings from unconsolidated investment |
(13,179) |
(12,551) |
(49,918) |
(41,416) |
|||||||||||||||
Gain on reserve swap |
— |
— |
(9,290) |
(5,690) |
|||||||||||||||
Other, net |
1,738 |
(200) |
(1,295) |
1,942 |
|||||||||||||||
Other, net - affiliates |
434 |
— |
(287) |
— |
|||||||||||||||
Change in operating assets and liabilities: |
|||||||||||||||||||
Accounts receivable |
4,567 |
(3,613) |
16,486 |
(8,685) |
|||||||||||||||
Accounts receivable - affiliates |
586 |
1,053 |
2,630 |
(1,828) |
|||||||||||||||
Accounts payable |
(1,006) |
(4,070) |
(3,775) |
(2,408) |
|||||||||||||||
Accounts payable - affiliates |
(1,102) |
465 |
514 |
559 |
|||||||||||||||
Accrued liabilities |
(7,735) |
(2,814) |
(4,676) |
(1,821) |
|||||||||||||||
Deferred revenue |
1,570 |
2,137 |
7,605 |
2,056 |
|||||||||||||||
Deferred revenue - affiliates |
(801) |
4,192 |
(4,200) |
15,618 |
|||||||||||||||
Accrued incentive plan expenses |
(606) |
180 |
(7,023) |
(5,265) |
|||||||||||||||
Other items, net |
(2,780) |
(797) |
(1,030) |
(47) |
|||||||||||||||
Other items, net - affiliates |
819 |
(591) |
186 |
(180) |
|||||||||||||||
Net cash provided by operating activities |
42,074 |
53,659 |
203,424 |
210,755 |
|||||||||||||||
Cash flows from investing activities: |
|||||||||||||||||||
Acquisition of mineral rights |
(4,740) |
(341,991) |
(40,679) |
(356,026) |
|||||||||||||||
Acquisition of plant and equipment and other |
(1,594) |
(2,247) |
(10,175) |
(2,454) |
|||||||||||||||
Acquisition of aggregates business |
— |
(168,978) |
— |
(168,978) |
|||||||||||||||
Proceeds from sale of plant and equipment and other |
18 |
1,001 |
11,024 |
1,006 |
|||||||||||||||
Proceeds from sale of mineral rights |
155 |
412 |
7,096 |
412 |
|||||||||||||||
Return of equity and other unconsolidated investments |
— |
— |
— |
3,633 |
|||||||||||||||
Return of long-term contract receivables - affiliate |
342 |
994 |
2,463 |
1,904 |
|||||||||||||||
Net cash used in investing activities |
(5,819) |
(510,809) |
(30,271) |
(520,503) |
|||||||||||||||
Cash flows from financing activities: |
|||||||||||||||||||
Proceeds from loans |
— |
615,471 |
100,000 |
617,471 |
|||||||||||||||
Proceeds from loans - affiliate |
— |
19,904 |
— |
19,904 |
|||||||||||||||
Proceeds from issuance of common units |
— |
102,376 |
— |
127,202 |
|||||||||||||||
Capital contribution by general partner |
— |
2,733 |
— |
3,240 |
|||||||||||||||
Repayments of loans |
(39,808) |
(258,808) |
(190,983) |
(327,983) |
|||||||||||||||
Distributions to partners |
(5,616) |
(43,670) |
(71,758) |
(162,042) |
|||||||||||||||
Distributions to non-controlling interest |
— |
— |
(2,744) |
(974) |
|||||||||||||||
Debt issue costs and other |
(214) |
(8,906) |
(5,971) |
(9,507) |
|||||||||||||||
Net cash provided by (used in) financing activities |
(45,638) |
429,100 |
(171,456) |
267,311 |
|||||||||||||||
Net increase (decrease) in cash and cash equivalents |
(9,383) |
(28,050) |
1,697 |
(42,437) |
|||||||||||||||
Cash and cash equivalents at beginning of period |
61,156 |
78,126 |
50,076 |
92,513 |
|||||||||||||||
Cash and cash equivalents at end of period |
$ |
51,773 |
$ |
50,076 |
$ |
51,773 |
$ |
50,076 |
|||||||||||
Supplemental cash flow information: |
|||||||||||||||||||
Cash paid during the period for interest |
$ |
30,576 |
$ |
23,889 |
$ |
88,493 |
$ |
76,155 |
|||||||||||
Plant, equipment and mineral rights funded with accounts payable or accrued liabilities |
1,484 |
11,879 |
5,949 |
11,879 |
|||||||||||||||
Units issued for acquisition of aggregates operations |
— |
— |
— |
31,604 |
Natural Resource Partners L.P. | |||||||||||
Consolidated Balance Sheets | |||||||||||
(in thousands) | |||||||||||
December 31, | |||||||||||
2015 |
2014 | ||||||||||
ASSETS |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ |
51,773 |
$ |
50,076 |
|||||||
Accounts receivable, net |
50,167 |
66,455 |
|||||||||
Accounts receivable - affiliates |
6,864 |
9,494 |
|||||||||
Inventory |
7,835 |
5,814 |
|||||||||
Prepaid expenses and other |
4,490 |
4,279 |
|||||||||
Total current assets |
121,129 |
136,118 |
|||||||||
Land |
25,022 |
25,243 |
|||||||||
Plant and equipment, net |
61,239 |
60,093 |
|||||||||
Mineral rights, net |
1,094,027 |
1,781,852 |
|||||||||
Intangible assets, net |
56,927 |
60,733 |
|||||||||
Equity in unconsolidated investment |
261,942 |
264,020 |
|||||||||
Long-term contracts receivable - affiliate |
47,359 |
50,008 |
|||||||||
Goodwill |
— |
52,012 |
|||||||||
Other assets |
15,306 |
14,645 |
|||||||||
Other assets - affiliate |
1,124 |
— |
|||||||||
Total assets |
$ |
1,684,075 |
$ |
2,444,724 |
|||||||
LIABILITIES AND CAPITAL |
|||||||||||
Current liabilities: |
|||||||||||
Accounts payable |
$ |
8,465 |
$ |
22,465 |
|||||||
Accounts payable - affiliates |
1,464 |
950 |
|||||||||
Accrued liabilities |
45,735 |
43,533 |
|||||||||
Current portion of long-term debt, net |
80,983 |
80,983 |
|||||||||
Total current liabilities |
136,647 |
147,931 |
|||||||||
Deferred revenue |
80,812 |
73,207 |
|||||||||
Deferred revenue - affiliates |
82,853 |
87,053 |
|||||||||
Long-term debt, net |
1,284,083 |
1,374,336 |
|||||||||
Long-term debt, net - affiliate |
19,930 |
19,904 |
|||||||||
Other non-current liabilities |
6,808 |
22,138 |
|||||||||
Partners' capital: |
|||||||||||
Common unitholders' interest (12.2 million units outstanding) |
79,094 |
709,019 |
|||||||||
General partner's interest |
(606) |
12,245 |
|||||||||
Accumulated other comprehensive loss |
(2,152) |
(459) |
|||||||||
Total partners' capital |
76,336 |
720,805 |
|||||||||
Non-controlling interest |
(3,394) |
(650) |
|||||||||
Total capital |
72,942 |
720,155 |
|||||||||
Total liabilities and capital |
$ |
1,684,075 |
$ |
2,444,724 |
Natural Resource Partners L.P. | |||||||||||||||||||||
Operating Statistics - Coal, Hard Mineral Royalty and Other | |||||||||||||||||||||
(in thousands except per ton data) | |||||||||||||||||||||
For the Three Months Ended |
For the Year Ended | ||||||||||||||||||||
December 31, |
December 31, | ||||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||
(unaudited) |
(unaudited) | ||||||||||||||||||||
Coal royalty production (tons) |
|||||||||||||||||||||
Appalachia |
|||||||||||||||||||||
Northern |
1,981 |
2,802 |
9,562 |
9,339 |
|||||||||||||||||
Central |
3,460 |
4,996 |
16,862 |
20,092 |
|||||||||||||||||
Southern |
803 |
964 |
3,803 |
3,914 |
|||||||||||||||||
Total Appalachia |
6,244 |
8,762 |
30,227 |
33,345 |
|||||||||||||||||
Illinois Basin |
2,908 |
3,113 |
11,173 |
13,177 |
|||||||||||||||||
Northern Powder River Basin |
1,408 |
738 |
4,905 |
2,844 |
|||||||||||||||||
Gulf Coast |
(38) |
373 |
740 |
1,093 |
|||||||||||||||||
Total coal royalty production |
10,522 |
12,986 |
47,045 |
50,459 |
|||||||||||||||||
Average royalty revenue per ton: |
|||||||||||||||||||||
Appalachia |
|||||||||||||||||||||
Northern |
$ |
0.29 |
$ |
0.96 |
$ |
0.28 |
$ |
0.92 |
|||||||||||||
Central |
3.54 |
4.07 |
3.85 |
4.46 |
|||||||||||||||||
Southern |
4.66 |
5.00 |
4.57 |
5.18 |
|||||||||||||||||
Total Appalachia |
2.65 |
3.18 |
2.81 |
3.55 |
|||||||||||||||||
Illinois Basin |
3.80 |
4.21 |
3.94 |
4.10 |
|||||||||||||||||
Northern Powder River Basin |
2.29 |
2.39 |
2.54 |
2.74 |
|||||||||||||||||
Gulf Coast |
11.21 |
3.54 |
3.47 |
3.47 |
|||||||||||||||||
Combined average royalty revenue per ton |
$ |
2.89 |
$ |
3.39 |
$ |
3.06 |
$ |
3.65 | |||||||||||||
Coal royalty revenues: |
|||||||||||||||||||||
Appalachia |
|||||||||||||||||||||
Northern |
$ |
567 |
$ |
2,680 |
$ |
2,672 |
$ |
8,621 |
|||||||||||||
Central |
12,261 |
20,338 |
64,877 |
89,627 |
|||||||||||||||||
Southern |
3,744 |
4,823 |
17,390 |
20,292 |
|||||||||||||||||
Total Appalachia |
16,572 |
27,841 |
84,939 |
118,540 |
|||||||||||||||||
Illinois Basin |
11,043 |
13,093 |
44,063 |
54,049 |
|||||||||||||||||
Northern Powder River Basin |
3,224 |
1,763 |
12,443 |
7,804 |
|||||||||||||||||
Gulf Coast |
(426) |
1,320 |
2,570 |
3,793 |
|||||||||||||||||
Total coal royalty revenues |
$ |
30,413 |
$ |
44,017 |
$ |
144,015 |
$ |
184,186 | |||||||||||||
Other coal related revenues: |
|||||||||||||||||||||
Override revenue |
$ |
725 |
$ |
1,085 |
$ |
2,920 |
$ |
4,601 |
|||||||||||||
Transportation and processing fees |
5,633 |
5,366 |
22,033 |
22,048 |
|||||||||||||||||
Minimums recognized as revenue |
3,009 |
2,455 |
15,489 |
6,659 |
|||||||||||||||||
Lease assignment fees |
15,000 |
— |
21,000 |
— |
|||||||||||||||||
Coal bonus related revenues |
— |
98 |
— |
98 |
|||||||||||||||||
Condemnation related revenues |
363 |
— |
3,669 |
— |
|||||||||||||||||
Coal reserve swap |
— |
— |
9,290 |
5,690 |
|||||||||||||||||
Wheelage |
1,049 |
776 |
3,166 |
3,442 |
|||||||||||||||||
Total other coal related revenues |
$ |
25,779 |
$ |
9,780 |
$ |
77,567 |
$ |
42,538 | |||||||||||||
Total coal related revenues and coal related revenues - affiliates |
$ |
56,192 |
$ |
53,797 |
$ |
221,582 |
$ |
226,724 | |||||||||||||
Hard mineral royalty revenues |
538 |
2,459 |
8,090 |
12,073 |
|||||||||||||||||
Property tax revenue |
2,656 |
2,744 |
11,258 |
13,609 |
|||||||||||||||||
Other |
11 |
1,586 |
5,423 |
4,313 |
|||||||||||||||||
Total coal, hard mineral royalty and other revenue |
$ |
59,397 |
$ |
60,586 |
$ |
246,353 |
$ |
256,719 |
Natural Resource Partners L.P. | ||||||||||||||||
Operating Statistics - Oil and Gas | ||||||||||||||||
(Revenues in thousands) | ||||||||||||||||
For the Three Months Ended |
For the Year Ended | |||||||||||||||
December 31, |
December 31, | |||||||||||||||
2015 |
2014 |
2015 |
2014 | |||||||||||||
(unaudited) |
(unaudited) | |||||||||||||||
Williston Basin non-operated working interests: |
||||||||||||||||
Production volumes: |
||||||||||||||||
Oil (MBbl) |
259 |
294 |
1,108 |
578 |
||||||||||||
Natural gas (Mcf) |
209 |
206 |
810 |
408 |
||||||||||||
NGL (MBbl) |
29 |
33 |
138 |
53 |
||||||||||||
Total Production (MBoe) |
323 |
361 |
1,381 |
699 |
||||||||||||
Average sales price per unit |
||||||||||||||||
Oil ($/Bbl) |
$ |
37.29 |
$ |
63.38 |
$ |
41.19 |
$ |
77.85 |
||||||||
Natural gas ($/Mcf) |
1.47 |
3.66 |
2.28 |
5.04 |
||||||||||||
NGL ($/Bbl) |
7.79 |
26.42 |
9.20 |
33.64 |
||||||||||||
Revenues |
||||||||||||||||
Oil |
$ |
9,659 |
18,635 |
$ |
45,635 |
44,995 |
||||||||||
Natural gas |
307 |
753 |
1,847 |
2,056 |
||||||||||||
NGL |
226 |
872 |
1,269 |
1,783 |
||||||||||||
Non-production revenue |
— |
— |
450 |
— |
||||||||||||
Total revenues |
$ |
10,192 |
$ |
20,260 |
$ |
49,201 |
$ |
48,834 |
||||||||
Other oil and gas related revenues |
||||||||||||||||
Royalty and overriding royalty revenues |
888 |
1,825 |
$ |
4,364 |
10,732 |
|||||||||||
Total oil and gas revenues |
$ |
11,080 |
$ |
22,085 |
$ |
53,565 |
$ |
59,566 |
Natural Resource Partners L.P. | ||||||||||||||||||||||||
Distributable Cash Flow | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
52,498 |
$ |
12,251 |
$ |
3,822 |
$ |
6,951 |
$ |
(33,448) |
$ |
42,074 |
||||||||||||
Add: return on long-term contract receivables - affiliate |
342 |
— |
— |
— |
— |
342 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
— |
— |
18 |
— |
— |
18 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
— |
— |
— |
155 |
— |
155 |
||||||||||||||||||
Less: maintenance capital expenditures |
(87) |
— |
(1,153) |
(2,173) |
— |
(3,413) |
||||||||||||||||||
Distributable Cash Flow |
$ |
47,961 |
$ |
12,251 |
$ |
2,687 |
$ |
3,343 |
$ |
(33,448) |
$ |
39,078 |
||||||||||||
Three Months Ended December 31, 2014 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
61,078 |
$ |
10,776 |
$ |
2,746 |
$ |
5,290 |
$ |
(26,231) |
$ |
53,659 |
||||||||||||
Add: return on long-term contract receivables - affiliate |
994 |
— |
— |
— |
— |
994 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
963 |
— |
38 |
— |
— |
1,001 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
412 |
— |
— |
— |
— |
412 |
||||||||||||||||||
Less: maintenance capital expenditures |
(316) |
— |
(900) |
(7,154) |
— |
(8,370) |
||||||||||||||||||
Distributable Cash Flow |
$ |
63,131 |
$ |
10,776 |
$ |
1,884 |
$ |
(1,864) |
$ |
(26,231) |
$ |
47,696 |
||||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
197,913 |
$ |
43,029 |
$ |
23,605 |
$ |
40,536 |
$ |
(101,659) |
$ |
203,424 |
||||||||||||
Add: return on long-term contract receivables - affiliate |
2,463 |
— |
— |
— |
— |
2,463 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
10,100 |
— |
924 |
— |
— |
11,024 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
3,505 |
— |
— |
3,591 |
— |
7,096 |
||||||||||||||||||
Less: maintenance capital expenditures |
(416) |
— |
(5,727) |
(18,139) |
(24,282) |
|||||||||||||||||||
Less: distributions to non-controlling interest |
(1,372) |
— |
— |
(1,372) |
— |
(2,744) |
||||||||||||||||||
Distributable Cash Flow |
$ |
212,193 |
$ |
43,029 |
$ |
18,802 |
$ |
24,616 |
$ |
(101,659) |
$ |
196,981 |
||||||||||||
Year Ended December 31, 2014 |
||||||||||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
232,484 |
$ |
42,516 |
$ |
2,746 |
$ |
24,671 |
$ |
(91,662) |
$ |
210,755 |
||||||||||||
Add: return on long-term contract receivables - affiliate |
1,904 |
— |
— |
— |
— |
1,904 |
||||||||||||||||||
Add: return of unconsolidated equity investment |
— |
3,633 |
— |
— |
— |
3,633 |
||||||||||||||||||
Add: proceeds from sale of PP&E |
968 |
— |
38 |
— |
— |
1,006 |
||||||||||||||||||
Add: proceeds from sale of mineral rights |
412 |
— |
— |
— |
— |
412 |
||||||||||||||||||
Less: maintenance capital expenditures |
(316) |
— |
(900) |
(7,154) |
— |
(8,370) |
||||||||||||||||||
Less: distributions to non-controlling interest |
(487) |
— |
— |
(487) |
— |
(974) |
||||||||||||||||||
Distributable Cash Flow |
$ |
234,965 |
$ |
46,149 |
$ |
1,884 |
$ |
17,030 |
$ |
(91,662) |
$ |
208,366 |
Natural Resource Partners L.P. | ||||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||||||
Net income (loss) |
$ |
25,518 |
$ |
13,179 |
$ |
(3,607) |
$ |
(30,522) |
$ |
(26,354) |
$ |
(21,786) |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(13,179) |
— |
— |
— |
(13,179) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
12,250 |
— |
— |
— |
12,250 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
10,517 |
— |
3,079 |
4,556 |
— |
18,152 |
||||||||||||||||||
Add: asset impairment |
12,821 |
— |
6,218 |
31,914 |
— |
50,953 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
23,830 |
23,830 |
||||||||||||||||||
Adjusted EBITDA |
$ |
48,856 |
$ |
12,250 |
$ |
5,690 |
$ |
5,963 |
$ |
(2,402) |
$ |
70,220 |
||||||||||||
Three Months Ended December 31, 2014 |
||||||||||||||||||||||||
Net income (loss) |
$ |
17,754 |
$ |
12,551 |
$ |
32 |
$ |
2,308 |
$ |
(24,000) |
$ |
8,645 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(12,551) |
— |
— |
— |
(12,551) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
10,780 |
— |
— |
— |
10,780 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
14,910 |
— |
3,296 |
12,052 |
— |
30,258 |
||||||||||||||||||
Add: asset impairment |
20,585 |
— |
— |
— |
— |
20,585 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
22,426 |
22,426 |
||||||||||||||||||
Adjusted EBITDA |
$ |
53,249 |
$ |
10,780 |
$ |
3,328 |
$ |
14,360 |
$ |
(1,574) |
$ |
80,143 |
||||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||||||
Net income (loss) |
$ |
(138,388) |
$ |
49,918 |
$ |
272 |
$ |
(377,365) |
$ |
(106,157) |
$ |
(571,720) |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(49,918) |
— |
— |
— |
(49,918) |
||||||||||||||||||
Less: gain on reserve swap |
(9,290) |
— |
— |
— |
— |
(9,290) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
46,795 |
— |
— |
— |
46,795 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
44,478 |
— |
15,578 |
40,772 |
— |
100,828 |
||||||||||||||||||
Add: asset impairment |
307,800 |
— |
6,218 |
367,576 |
— |
681,594 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
93,827 |
93,827 |
||||||||||||||||||
Adjusted EBITDA |
$ |
204,600 |
$ |
46,795 |
$ |
22,068 |
$ |
30,983 |
$ |
(12,330) |
$ |
292,116 |
||||||||||||
Year Ended December 31, 2014 |
||||||||||||||||||||||||
Net income (loss) |
$ |
143,678 |
$ |
41,416 |
$ |
32 |
$ |
14,338 |
$ |
(90,634) |
$ |
108,830 |
||||||||||||
Less: equity earnings from unconsolidated investment |
— |
(41,416) |
— |
— |
— |
(41,416) |
||||||||||||||||||
Less: gain on reserve swap |
(5,690) |
— |
— |
— |
— |
(5,690) |
||||||||||||||||||
Add: distributions from unconsolidated investment |
— |
46,638 |
— |
— |
— |
46,638 |
||||||||||||||||||
Add: depreciation, depletion and amortization |
52,645 |
— |
3,296 |
23,935 |
— |
79,876 |
||||||||||||||||||
Add: asset impairment |
26,209 |
— |
— |
— |
— |
26,209 |
||||||||||||||||||
Add: interest expense |
— |
— |
— |
— |
80,185 |
80,185 |
||||||||||||||||||
Adjusted EBITDA |
$ |
216,842 |
$ |
46,638 |
$ |
3,328 |
$ |
38,273 |
$ |
(10,449) |
$ |
294,632 |
Natural Resource Partners L.P. | ||||||||||||||||||||||||
Operating Expenses Excluding Impairments | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Coal, Hard Mineral Royalty and Other |
Corporate and Financing |
|||||||||||||||||||||||
Soda Ash |
VantaCore |
Oil and Gas |
Total | |||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||
Three Months Ended December 31, 2015 |
||||||||||||||||||||||||
Total operating expenses |
$ |
34,307 |
$ |
— |
$ |
35,586 |
$ |
41,602 |
$ |
2,525 |
$ |
114,020 |
||||||||||||
Less: asset impairments |
12,821 |
— |
6,218 |
31,914 |
— |
50,953 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
21,486 |
$ |
— |
$ |
29,368 |
$ |
9,688 |
$ |
2,525 |
$ |
63,067 |
||||||||||||
Three Months Ended December 31, 2014 |
||||||||||||||||||||||||
Total operating expenses |
$ |
42,832 |
$ |
— |
$ |
42,019 |
$ |
19,777 |
$ |
1,595 |
$ |
106,223 |
||||||||||||
Less: asset impairments |
20,585 |
— |
— |
— |
— |
20,585 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
22,247 |
$ |
— |
$ |
42,019 |
$ |
19,777 |
$ |
1,595 |
$ |
85,638 |
||||||||||||
Year Ended December 31, 2015 |
||||||||||||||||||||||||
Total operating expenses |
$ |
384,741 |
$ |
— |
$ |
138,741 |
$ |
430,930 |
$ |
12,348 |
$ |
966,760 |
||||||||||||
Less: asset impairments |
307,800 |
— |
6,218 |
367,576 |
— |
681,594 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
76,941 |
$ |
— |
$ |
132,523 |
$ |
63,354 |
$ |
12,348 |
$ |
285,166 |
||||||||||||
Year Ended December 31, 2014 |
||||||||||||||||||||||||
Total operating expenses |
$ |
113,041 |
$ |
— |
$ |
42,019 |
$ |
45,228 |
$ |
10,545 |
$ |
210,833 |
||||||||||||
Less: asset impairments |
26,209 |
— |
— |
— |
— |
26,209 |
||||||||||||||||||
Operating expenses excluding impairments |
$ |
86,832 |
$ |
— |
$ |
42,019 |
$ |
45,228 |
$ |
10,545 |
$ |
184,624 |
Non-cash impairment charges attributable to the limited partners | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended |
For the Year Ended | |||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
2015 |
2014 |
2015 |
2014 | |||||||||||||
(unaudited) |
(unaudited) | |||||||||||||||
Asset impairments, as reported |
$ |
50,953 |
$ |
20,585 |
$ |
681,594 |
$ |
26,209 |
||||||||
Asset impairments attributable to the limited partners |
49,934 |
20,173 |
667,962 |
25,685 |
||||||||||||
Asset impairments attributable to the general partners |
1,019 |
412 |
13,632 |
524 |
Natural Resource Partners L.P. | ||||||||||||||||
Net Income and Net Income Per Unit Attributable to the Limited Partners Excluding Impairments | ||||||||||||||||
(in thousands) | ||||||||||||||||
For the Three Months Ended |
For the Year Ended | |||||||||||||||
December 31, |
December 31, |
December 31, |
December 31, | |||||||||||||
2015 |
2014 |
2015 |
2014 | |||||||||||||
(unaudited) |
(unaudited) | |||||||||||||||
Net income (loss) attributable to the limited partners, as reported |
$ |
(21,326) |
$ |
8,472 |
$ |
(559,492) |
$ |
106,653 |
||||||||
Asset impairments attributable to the limited partners |
49,934 |
20,173 |
667,962 |
25,685 |
||||||||||||
Net income attributable to the limited partners excluding impairments |
$ |
28,608 |
$ |
28,645 |
$ |
108,470 |
$ |
132,338 |
||||||||
Weighted average number of common units outstanding: |
12,230 |
12,145 |
12,230 |
11,326 |
||||||||||||
Net income per unit attributable to the limited partners excluding impairments |
$ |
2.34 |
$ |
2.36 |
$ |
8.87 |
$ |
11.68 |
Logo: http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, Feb. 16, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced that it has signed a definitive agreement to sell a portion of its oil and gas mineral rights and has closed a transaction to sell certain of its aggregates mineral rights for combined proceeds of $47.5 million before transaction expenses. The assets being sold generated $3.4 million of royalty revenues in 2015. The closing of the oil and gas sale is expected to occur by the end of February and is subject to customary closing conditions. NRP intends to use the proceeds from the combined sales to pay down debt. The asset sales are a continuation of NRP's ongoing deleveraging strategy and NRP will continue to evaluate other opportunities to monetize assets and reduce leverage. The assets being sold do not include NRP's non-operated Bakken interests or the VantaCore aggregates operations.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
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, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment 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.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.
HOUSTON, Jan. 27, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) announced today the Board of Directors of its general partner has approved a 1-for-10 reverse unit split on its common units, effective after the market closes on February 17, 2016. The common units will begin trading on a split-adjusted basis on February 18, 2016.
Pursuant to the reverse unit split, common unitholders will receive one common unit for every 10 common units owned at the close of business on February 17, 2016. All fractional units created by the reverse unit split will be rounded to the nearest whole unit, as provided by NRP's partnership agreement. NRP's common unit count will be reduced from approximately 122.3 million outstanding common units to approximately 12.2 million outstanding common units post-split. The announced distribution of $0.045 per common unit for the fourth quarter of 2015 will not be impacted by the reverse unit split, as the distribution will be paid in advance of the effective date of the reverse unit split. NRP's common units will continue to trade on the New York Stock Exchange under the symbol "NRP" but will trade under a new CUSIP. The reverse split is intended to increase the market price per unit of NRP's common units to allow NRP to maintain its New York Stock Exchange listing.
NRP's transfer agent, American Stock Transfer and Trust Company, will act as the exchange agent. Common unit adjustments to physical unit certificates can be made upon surrender of the certificate to the transfer agent. Please contact American Stock Transfer and Trust Company for further information at (800) 937-5449.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
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, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment 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.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
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SOURCE Natural Resource Partners L.P.
HOUSTON, Jan. 21, 2016 /PRNewswire/-- Natural Resource Partners L.P. (NYSE: NRP) reported today the Board of Directors of its general partner declared a fourth quarter 2015 distribution of $0.045 per unit for NRP. The distribution will be paid on February 12, 2016 to unitholders of record on February 5, 2016.
The Board of Directors determined to maintain the fourth quarter 2015 distribution at a level consistent with the distribution declared and paid with respect to the previous quarter. NRP expects that distributable cash flow and EBITDA for the year ended December 31, 2015 will exceed the upper range of its August 2015 guidance. However, NRP also acknowledges the current challenging market conditions and expects that 2016 will be a difficult year for its coal and oil and gas business segments. The level of future quarterly distributions, if any, will be determined by the Board of Directors on a quarterly basis.
Company Profile
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX. NRP is a diversified natural resource company that owns interests in oil and gas, coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
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, but are not limited to, commodity prices; decreases in demand for coal, oil, natural gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity and access to capital and financing sources; changes in the legislative or regulatory environment 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.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
For additional information please contact Kathy Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership's website at http://www.nrplp.com.
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SOURCE Natural Resource Partners L.P.
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