Natural Resource Partners L.P. (NYSE:NRP) today reported
fourth quarter and full year 2023 results as follows:
For the Three Months
Ended
For the Year Ended
(In thousands)
(Unaudited)
December 31, 2023
Net income
$
64,980
$
278,435
Operating cash flow
$
77,786
$
310,978
Free cash flow (1)
$
78,419
$
313,431
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
2023 Highlights:
- Generated record full year free cash flow of
$313 million
- Paid regular quarterly distributions of
$0.75 per common unit and a special cash distribution of $2.43 per
common unit to cover unitholder tax liabilities associated with
owning NRP's common units during 2022
- Redeemed $178 million of preferred units at
par with cash; $72 million of the original $250 million preferred
units remain outstanding
- Repurchased 1.46 million warrants with $56.1
million cash
- Increased credit facility borrowing capacity
from $130 million to $155 million
Early 2024 Highlights:
- Repurchased 1.22 million warrants with $55.7
million of cash and 198,767 of common units; 0.32 million of the
original 4 million warrants remain outstanding with a current
settlement value of approximately $20 million
- Increased credit facility borrowing capacity
from $155 million to $200 million
- Declared special cash distribution of $2.44
per common unit to cover unitholder tax liabilities associated with
owning NRP's common units during 2023
Craig Nunez, NRP's president & chief operating officer said,
"NRP generated a record $313 million of free cash flow in 2023
driven by increased distributions received from our soda ash
business and ongoing strength in metallurgical coal prices. We have
now been able to permanently redeem 71% of our preferred units at
par and settle 92% of our warrants."
Mr. Nunez continued, "In 2015 we laid out a strategy to de-lever
and de-risk the partnership in order to maximize long-term common
unitholder value. I'm proud of the significant progress we have
made and continue to make. We stand firm in our belief that the
best approach to maximizing the intrinsic value of our business is
to continue to aggressively pay off all permanent debt, redeem all
preferred units, and settle all remaining warrants."
NRP's liquidity was $71.2 million at December 31, 2023,
consisting of $12.0 million of cash and $59.2 million of borrowing
capacity available under its revolving credit facility.
NRP also announced today that the board of directors of its
general partner declared a special cash distribution of $2.44 per
common unit to be paid on March 26, 2024 to unitholders of record
on March 19, 2024. This special distribution is to help cover
unitholder tax liabilities associated with owning NRP's common
units during 2023. Future distributions on NRP's common and
preferred units will be determined on a quarterly basis by the
board of directors. The board of directors considers numerous
factors each quarter in determining cash distributions, including
profitability, cash flow, debt service obligations, market
conditions and outlook, estimated unitholder income tax liability
and the level of cash reserves that the board determines is
necessary for future operating and capital needs.
Segment Performance
Mineral Rights
Mineral Rights net income in the fourth quarter and full year of
2023 increased $0.2 million and decreased $21.9 million,
respectively, as compared to the prior year periods. Operating cash
flow in the fourth quarter and full year of 2023 increased $1.8
million and decreased $2.8 million, respectively, as compared to
the prior year periods. Free cash flow in the fourth quarter and
full year of 2023 increased $1.9 million and decreased $2.1
million, respectively, as compared to the prior year periods. The
decrease in net income for the full year of 2023 was primarily due
to lower metallurgical coal pricing, lower oil and gas royalty
revenues, lower transportation and processing revenues, and lower
carbon neutral initiative revenues as compared to the prior year.
Approximately 70% of coal royalty revenues and approximately 45% of
coal royalty sales volumes were derived from metallurgical coal in
the fourth quarter of 2023, and approximately 70% of coal royalty
revenues and approximately 50% of coal royalty sales volumes were
derived from metallurgical coal in the full year of 2023.
Metallurgical and thermal coal prices saw significant
variability in 2023, and were off the record highs seen in 2022,
but finished the year strong relative to historical norms. NRP
believes limitations from ongoing labor shortages, access to
capital, and inflationary pressures should provide continued price
support for metallurgical and thermal coal in 2024, despite
headwinds from lower steel demand and the long-term secular decline
in thermal energy production.
NRP continues to explore and identify carbon neutral revenue
sources across its large portfolio of surface, mineral, and timber
assets, including the permanent sequestration of carbon dioxide
underground and in standing forests, and the generation of
electricity using geothermal, solar, and wind energy, as well as
lithium production. While the timing and likelihood of additional
cash flows being realized from these activities is uncertain, NRP
believes its large ownership footprint throughout the United States
provides additional opportunities to create value in this regard
with minimal capital investment by NRP.
Soda Ash
Soda Ash net income in the fourth quarter and full year of 2023
decreased $1.0 million and increased $13.5 million, respectively,
as compared to the prior year periods. The increase in net income
for the full year of 2023 was primarily due to higher sales prices
driven by strong demand domestically, partially offset by lower
soda ash production and sales volumes. Operating cash flow and free
cash flow in the fourth quarter and full year of 2023 increased
$4.6 million and $36.5 million, respectively, as compared to the
prior year periods primarily due to increased distributions
received from Sisecam Wyoming.
Strong sales prices at Sisecam Wyoming for the year ended
December 31, 2023 more than offset input cost inflation, supply
chain difficulties, and the influx of supply from China in the
latter part of the year. However, NRP believes this increase in
global soda ash production will result in an oversupplied market
and a decline in soda ash prices in 2024.
Corporate and Financing
Corporate and Financing costs in the fourth quarter and full
year of 2023 decreased $2.5 million and $18.4 million,
respectively, as compared to the prior year periods primarily due
to the loss on early extinguishment of debt recognized in 2022
related to the retirement of the 2025 Senior Notes. Full year 2023
results were also impacted by lower interest expense as a result of
less debt outstanding for the full year of 2023. Operating cash
flow in the fourth quarter and full year of 2023 improved $2.5
million and $10.4 million, respectively, as compared to the prior
year periods. Free cash flow in the fourth quarter and full year of
2023 improved $2.6 million and $10.5 million, respectively, as
compared to the prior year periods. These improvements were
primarily due to lower cash paid for interest as a result of less
debt outstanding in 2023.
NRP continues to make great strides in de-levering and
de-risking the partnership. In 2023, NRP redeemed $178 million of
its Class A Preferred Units at par with cash, repurchased 1.46
million of its warrants with $56.1 million cash, and upsized its
revolving credit facility borrowing capacity by $25 million to $155
million. In 2024, NRP repurchased 1.22 million warrants with $55.7
million of cash and 198,767 of common units and increased its
revolving credit facility borrowing capacity an additional $45
million to $200 million.
Of the originally issued 250,000 Class A Preferred Units, 71,666
Class A Preferred Units remain outstanding. Of the originally
issued 4 million warrants, 0.32 million warrants remain
outstanding.
NRP's consolidated leverage ratio was 0.5x at December 31,
2023.
In February 2023, NRP declared and paid a fourth quarter 2023
cash distribution of $0.75 per common unit and a $2.15 million cash
distribution on the preferred units. As previously mentioned, today
NRP declared a special distribution of $2.44 per common unit to
help cover unitholder tax liabilities associated with owning NRP's
common units during 2023.
Conference Call
A conference call will be held today at 9:00 a.m. ET. To
register for the conference call, please use this link:
https://registrations.events/direct/Q4I5055640. After registering a
confirmation will be sent via email, including dial in details and
unique conference call codes for entry. Registration is open
through the live call, however, to ensure you are connected for the
full conference call we suggest registering at minimum 10 minutes
prior to the start of the call. Investors may also listen to the
call via the Investor Relations section of the NRP website at
www.nrplp.com. To access the replay, please visit the Investor
Relations section of NRP’s website.
Withholding Information for Foreign Investors
Concurrent with this announcement, we are providing qualified
notice to brokers and nominees that hold NRP units on behalf of
non-U.S. investors under Treasury Regulation Section 1.1446-4(b)
and (d) and Treasury Regulation Section 1.1446(f)-4(c)(2)(iii).
Brokers and nominees should treat one hundred percent (100%) of
NRP's distributions to non-U.S. investors as being attributable to
income that is effectively connected with a United States trade or
business. In addition, brokers and nominees should treat one
hundred percent (100%) of the distribution as being in excess of
cumulative net income for purposes of determining the amount to
withhold. Accordingly, NRP's distributions to non-U.S. investors
are subject to federal income tax withholding at a rate equal to
the sum of the highest applicable rate plus ten percent (10%).
Company Profile
Natural Resource Partners L.P., a master limited partnership
headquartered in Houston, TX, is a diversified natural resource
company that owns, manages and leases a diversified portfolio of
properties in the United States including coal, industrial minerals
and other natural resources, as well as rights to conduct carbon
sequestration and renewable energy activities. NRP also owns an
equity investment in Sisecam Wyoming LLC, one of the world’s
lowest-cost producers of soda ash.
For additional information, please contact Tiffany Sammis at
713-751-7515 or tsammis@nrplp.com. Further information about NRP is
available on the Partnership’s website at http://www.nrplp.com.
Forward-Looking Statements
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that the
Partnership expects, believes or anticipates will or may occur in
the future are forward-looking statements. These statements are
based on certain assumptions made by the Partnership based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors it believes are
appropriate in the circumstances. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Partnership. These risks include, among
other things, statements regarding: the effects of the global
COVID-19 pandemic; future distributions on the Partnership’s common
and preferred units; the Partnership's business strategy; its
liquidity and access to capital and financing sources; its
financial strategy; prices of and demand for coal, trona and soda
ash, and other natural resources; estimated revenues, expenses and
results of operations; projected future performance by the
Partnership's lessees; Sisecam Wyoming LLC’s trona mining and soda
ash refinery operations; distributions from the soda ash joint
venture; the impact of governmental policies, laws and regulations,
as well as regulatory and legal proceedings involving the
Partnership, and of scheduled or potential regulatory or legal
changes; global and U.S. economic conditions; and other factors
detailed in Natural Resource Partners’ Securities and Exchange
Commission filings. Natural Resource Partners L.P. has no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
"Adjusted EBITDA" is a non-GAAP financial measure that we
define as net income (loss) less equity earnings from
unconsolidated investment, net income attributable to
non-controlling interest and gain on reserve swap; plus total
distributions from unconsolidated investment, interest expense,
net, debt modification expense, loss on extinguishment of debt,
depreciation, depletion and amortization and asset impairments.
Adjusted EBITDA should not be considered an alternative to, or more
meaningful than, net income or loss, net income or loss
attributable to partners, operating income or loss, cash flows from
operating activities or any other measure of financial performance
presented in accordance with GAAP as measures of operating
performance, liquidity or ability to service debt obligations.
There are significant limitations to using Adjusted EBITDA as a
measure of performance, including the inability to analyze the
effect of certain recurring items that materially affect our net
income, the lack of comparability of results of operations of
different companies and the different methods of calculating
Adjusted EBITDA reported by different companies. In addition,
Adjusted EBITDA presented below is not calculated or presented on
the same basis as Consolidated EBITDA as defined in our partnership
agreement or Consolidated EBITDDA as defined in Opco's debt
agreements. Adjusted EBITDA is a supplemental performance measure
used by our management and by external users of our financial
statements, such as investors, commercial banks, research analysts
and others to assess the financial performance of our assets
without regard to financing methods, capital structure or
historical cost basis.
“Distributable cash flow” or "DCF" is a non-GAAP
financial measure that we define as net cash provided by (used in)
operating activities of continuing operations plus distributions
from unconsolidated investment in excess of cumulative earnings,
proceeds from asset sales and disposals, including sales of
discontinued operations, and return of long-term contract
receivable; less maintenance capital expenditures and distributions
to non-controlling interest. DCF is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. DCF may not be calculated the same for us as for other
companies. In addition, distributable cash flow is not calculated
or presented on the same basis as distributable cash flow as
defined in our partnership agreement, which is used as a metric to
determine whether we are able to increase quarterly distributions
to our common unitholders. Distributable cash flow is a
supplemental liquidity measure used by our management and by
external users of our financial statements, such as investors,
commercial banks, research analysts and others to assess our
ability to make cash distributions and repay debt.
“Free cash flow” or "FCF" is a non-GAAP financial
measure that we define as net cash provided by (used in) operating
activities of continuing operations plus distributions from
unconsolidated investment in excess of cumulative earnings and
return of long-term contract receivable; less maintenance and
expansion capital expenditures, cash flow used in acquisition costs
classified as investing or financing activities and distributions
to non-controlling interest. FCF is calculated before mandatory
debt repayments. Free cash flow is not a measure of financial
performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing
activities. Free cash flow may not be calculated the same for us as
for other companies. Free cash flow is a supplemental liquidity
measure used by our management and by external users of our
financial statements, such as investors, commercial banks, research
analysts and others to assess our ability to make cash
distributions and repay debt.
"Leverage ratio" represents the outstanding principal of
NRP's debt at the end of the period divided by the last twelve
months' Adjusted EBITDA as defined above. NRP believes that
leverage ratio is a useful measure to management and investors to
evaluate and monitor the indebtedness of NRP relative to its
ability to generate income to service such debt and in
understanding trends in NRP’s overall financial condition. Leverage
ratio may not be calculated the same for us as for other companies
and is not a substitute for, and should not be used in conjunction
with, GAAP financial ratios.
-Financial Tables and Reconciliation of
Non-GAAP Measures Follow-
Natural Resource Partners L.P.
Financial Tables (Unaudited)
Consolidated Statements of
Comprehensive Income
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In thousands,
except per unit data)
2023
2022
2023
2023
2022
Revenues and other income
Royalty and other mineral rights
$
72,922
$
75,218
$
68,533
$
278,733
$
307,013
Transportation and processing services
3,476
5,695
4,579
14,923
21,072
Equity in earnings of Sisecam Wyoming
14,764
15,759
12,401
73,397
59,795
Gain on asset sales and disposals
2,001
383
854
2,956
1,082
Total revenues and other income
$
93,163
$
97,055
$
86,367
$
370,009
$
388,962
Operating expenses
Operating and maintenance expenses
$
8,864
$
8,914
$
8,358
$
32,315
$
34,903
Depreciation, depletion and
amortization
6,020
5,954
4,594
18,489
22,519
General and administrative expenses
8,954
7,815
5,669
26,111
21,852
Asset impairments
424
3,583
63
556
4,457
Total operating expenses
$
24,262
$
26,266
$
18,684
$
77,471
$
83,731
Income from operations
$
68,901
$
70,789
$
67,683
$
292,538
$
305,231
Other expenses, net
Interest expense, net
$
(3,921
)
$
(3,638
)
$
(3,837
)
$
(14,103
)
$
(26,274
)
Loss on extinguishment of debt
—
(3,933
)
—
—
(10,465
)
Total other expenses, net
$
(3,921
)
$
(7,571
)
$
(3,837
)
$
(14,103
)
$
(36,739
)
Net income
$
64,980
$
63,218
$
63,846
$
278,435
$
268,492
Less: income attributable to preferred
unitholders
(2,151
)
(7,500
)
(2,936
)
(16,719
)
(30,000
)
Less: redemption of preferred units
—
—
(17,083
)
(60,929
)
—
Net income attributable to common
unitholders and the general partner
$
62,829
$
55,718
$
43,827
$
200,787
$
238,492
Net income attributable to common
unitholders
$
61,572
$
54,603
$
42,951
$
196,771
$
233,722
Net income attributable to the general
partner
1,257
1,115
876
4,016
4,770
Net income per common unit
Basic
$
4.87
$
4.37
$
3.40
$
15.59
$
18.72
Diluted
4.31
3.13
2.91
13.08
13.39
Net income
$
64,980
$
63,218
$
63,846
$
278,435
$
268,492
Comprehensive income (loss) from
unconsolidated investment and other
(5,367
)
16,685
2,200
(21,839
)
15,506
Comprehensive income
$
59,613
$
79,903
$
66,046
$
256,596
$
283,998
Natural Resource Partners L.P.
Financial Tables (Unaudited)
Consolidated Statements of
Cash Flows
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In
thousands)
2023
2022
2023
2023
2022
Cash flows from operating activities
Net income
$
64,980
$
63,218
$
63,846
$
278,435
$
268,492
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and
amortization
6,020
5,954
4,594
18,489
22,519
Distributions from unconsolidated
investment
15,338
10,780
23,010
81,478
44,835
Equity earnings from unconsolidated
investment
(14,764
)
(15,759
)
(12,401
)
(73,397
)
(59,795
)
Gain on asset sales and disposals
(2,001
)
(383
)
(854
)
(2,956
)
(1,082
)
Loss on extinguishment of debt
—
3,933
—
—
10,465
Asset impairments
424
3,583
63
556
4,457
Bad debt expense
1,431
421
1,621
2,244
1,062
Unit-based compensation expense
3,007
1,557
2,766
10,910
5,773
Amortization of debt issuance costs and
other
260
523
477
1,303
2,410
Change in operating assets and
liabilities:
Accounts receivable
(4,254
)
(8,553
)
(2,610
)
(164
)
(18,671
)
Accounts payable
(258
)
(186
)
(381
)
(1,108
)
37
Accrued liabilities
6,063
5,766
498
(225
)
935
Accrued interest
(641
)
(3,238
)
599
(406
)
(224
)
Deferred revenue
1,480
1,670
(2,163
)
(3,483
)
(15,424
)
Other items, net
701
(398
)
(123
)
(698
)
1,049
Net cash provided by operating
activities
$
77,786
$
68,888
$
78,942
$
310,978
$
266,838
Cash flows from investing activities
Proceeds from asset sales and
disposals
$
2,002
$
384
$
855
$
2,963
$
1,083
Return of long-term contract
receivable
633
585
622
2,463
1,723
Capital expenditures
—
(59
)
—
(10
)
(118
)
Net cash provided by investing
activities
$
2,635
$
910
$
1,477
$
5,416
$
2,688
Cash flows from financing activities
Debt borrowings
$
33,800
$
70,000
$
50,000
$
248,834
$
70,000
Debt repayments
(86,335
)
(141,731
)
(25,000
)
(262,396
)
(339,396
)
Distributions to common unitholders and
the general partner
(9,670
)
(9,571
)
(9,669
)
(69,908
)
(34,384
)
Distributions to preferred unitholders
(2,150
)
(7,500
)
(4,437
)
(22,069
)
(30,258
)
Redemptions of preferred units
—
—
(50,001
)
(178,334
)
—
Redemption of preferred units
paid-in-kind
—
—
—
—
(19,321
)
Warrant settlements
(22,481
)
—
(33,608
)
(56,089
)
—
Other items, net
(7
)
(2,842
)
(23
)
(3,534
)
(12,596
)
Net cash used in financing activities
$
(86,843
)
$
(91,644
)
$
(72,738
)
$
(343,496
)
$
(365,955
)
Net increase (decrease) in cash and cash
equivalents
$
(6,422
)
$
(21,846
)
$
7,681
$
(27,102
)
$
(96,429
)
Cash and cash equivalents at beginning of
period
18,411
60,937
10,730
39,091
135,520
Cash and cash equivalents at end of
period
$
11,989
$
39,091
$
18,411
$
11,989
$
39,091
Supplemental cash flow information:
Cash paid for interest
$
4,372
$
6,764
$
3,050
$
13,856
$
25,265
Natural Resource Partners L.P.
Financial Tables
Consolidated Balance
Sheets
December 31,
2023
2022
(In thousands,
except unit data)
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
11,989
$
39,091
Accounts receivable, net
41,086
42,701
Other current assets, net
2,218
1,822
Total current assets
$
55,293
$
83,614
Land
24,008
24,008
Mineral rights, net
394,483
412,312
Intangible assets, net
13,682
14,713
Equity in unconsolidated investment
276,549
306,470
Long-term contract receivable, net
26,321
28,946
Other long-term assets, net
7,540
7,068
Total assets
$
797,876
$
877,131
LIABILITIES AND CAPITAL
Current liabilities
Accounts payable
$
885
$
1,992
Accrued liabilities
12,987
11,916
Accrued interest
584
989
Current portion of deferred revenue
4,599
6,256
Current portion of long-term debt, net
30,785
39,076
Total current liabilities
$
49,840
$
60,229
Deferred revenue
38,356
40,181
Long-term debt, net
124,273
129,205
Other non-current liabilities
7,172
5,472
Total liabilities
$
219,641
$
235,087
Commitments and contingencies
Class A Convertible Preferred Units
(71,666 and 250,000 units issued and outstanding at December 31,
2023 and 2022, respectively, at $1,000 par value per unit;
liquidation preference of $1,850 per unit at December 31, 2023 and
2022)
$
47,181
$
164,587
Partners’ capital
Common unitholders’ interest (12,634,642
and 12,505,996 units issued and outstanding at December 31, 2023
and 2022, respectively)
$
503,076
$
404,799
General partner’s interest
8,005
5,977
Warrant holders' interest
23,095
47,964
Accumulated other comprehensive income
(loss)
(3,122
)
18,717
Total partners’ capital
$
531,054
$
477,457
Total liabilities and partners'
capital
$
797,876
$
877,131
Natural Resource Partners L.P.
Financial Tables (Unaudited)
Consolidated Statements of
Partners' Capital
Common Unitholders
General
Warrant
Accumulated Other
Comprehensive
Total Partners'
(In
thousands)
Units
Amounts
Partner
Holders
Income (Loss)
Capital
Balance at December 31, 2021
12,351
203,062
1,787
47,964
3,211
256,024
Net income (1)
—
263,122
5,370
—
—
268,492
Distributions to common unitholders and
the general partner
—
(33,697
)
(687
)
—
—
(34,384
)
Distributions to preferred unitholders
—
(29,653
)
(605
)
—
—
(30,258
)
Issuance of unit-based awards
155
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
1,965
—
—
—
1,965
Capital contribution
—
—
112
—
—
112
Comprehensive income from unconsolidated
investment and other
—
—
—
—
15,506
15,506
Balance at December 31, 2022
$
12,506
$
404,799
$
5,977
$
47,964
$
18,717
$
477,457
Net income (2)
—
272,866
5,569
—
—
278,435
Redemptions of preferred units
—
(59,710
)
(1,219
)
—
—
(60,929
)
Distributions to common unitholders and
the general partner
—
(68,510
)
(1,398
)
—
—
(69,908
)
Distributions to preferred unitholders
—
(21,628
)
(441
)
—
—
(22,069
)
Issuance of unit-based awards
129
—
—
—
—
—
Unit-based awards amortization and
vesting, net
—
5,854
—
—
—
5,854
Capital contribution
—
—
142
—
—
142
Warrant settlements
—
(30,595
)
(625
)
(24,869
)
—
(56,089
)
Comprehensive loss from unconsolidated
investment and other
—
—
—
—
(21,839
)
(21,839
)
Balance at December 31, 2023
12,635
$
503,076
$
8,005
$
23,095
$
(3,122
)
$
531,054
(1)
Net income includes $30.0 million of
income attributable to preferred unitholders that accumulated
during the period, of which $29.4 million is allocated to the
common unitholders and $0.6 million is allocated to the general
partner.
(2)
Net income includes $16.7 million of
income attributable to preferred unitholders that accumulated
during the period, of which $16.4 million is allocated to the
common unitholders and $0.3 million is allocated to the general
partner.
Natural Resource Partners L.P.
Financial Tables (Unaudited)
The following tables present NRP's unaudited business results by
segment for the three months ended December 31, 2023 and 2022 and
September 30, 2023:
Operating Segments
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Three Months Ended December 31,
2023
Revenues
$
76,398
$
14,764
$
—
$
91,162
Gain on asset sales and disposals
2,001
—
—
2,001
Total revenues and other income
$
78,399
$
14,764
$
—
$
93,163
Asset impairments
$
424
$
—
$
—
$
424
Net income (loss)
$
63,127
$
14,732
$
(12,879
)
$
64,980
Adjusted EBITDA (1)
$
69,567
$
15,306
$
(8,954
)
$
75,919
Cash flow provided by (used in):
Operating activities
$
70,147
$
15,306
$
(7,667
)
$
77,786
Investing activities
$
2,635
$
—
$
—
$
2,635
Financing activities
$
—
$
—
$
(86,843
)
$
(86,843
)
Distributable cash flow (1)
$
72,782
$
15,306
$
(7,667
)
$
80,421
Free cash flow (1)
$
70,780
$
15,306
$
(7,667
)
$
78,419
For the Three Months Ended December 31,
2022
Revenues
$
80,913
$
15,759
$
—
$
96,672
Gain on asset sales and disposals
383
—
—
383
Total revenues and other income
$
81,296
$
15,759
$
—
$
97,055
Asset impairments
$
3,583
$
—
$
—
$
3,583
Net income (loss)
$
62,900
$
15,704
$
(15,386
)
$
63,218
Adjusted EBITDA (1)
$
72,437
$
10,725
$
(7,815
)
$
75,347
Cash flow provided by (used in):
Operating activities
$
68,332
$
10,738
$
(10,182
)
$
68,888
Investing activities
$
969
$
—
$
(59
)
$
910
Financing activities
$
—
$
—
$
(91,644
)
$
(91,644
)
Distributable cash flow (1)
$
69,301
$
10,738
$
(10,241
)
$
69,798
Free cash flow (1)
$
68,917
$
10,738
$
(10,241
)
$
69,414
For the Three Months Ended September 30,
2023
Revenues
$
73,112
$
12,401
$
—
$
85,513
Gain on asset sales and disposals
854
—
—
854
Total revenues and other income
$
73,966
$
12,401
$
—
$
86,367
Asset impairments
$
63
$
—
$
—
$
63
Net income (loss)
$
61,009
$
12,348
$
(9,511
)
$
63,846
Adjusted EBITDA (1)
$
65,661
$
22,957
$
(5,669
)
$
82,949
Cash flow provided by (used in):
Operating activities
$
60,938
$
22,958
$
(4,954
)
$
78,942
Investing activities
$
1,477
$
—
$
—
$
1,477
Financing activities
$
—
$
—
$
(72,738
)
$
(72,738
)
Distributable cash flow (1)
$
62,415
$
22,958
$
(4,954
)
$
80,419
Free cash flow (1)
$
61,560
$
22,958
$
(4,954
)
$
79,564
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Natural Resource Partners L.P.
Financial Tables (Unaudited)
The following table presents NRP's unaudited business results by
segment for the year ended December 31, 2023 and 2022:
Operating Segments
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Year Ended December 31, 2023
Revenues
$
293,656
$
73,397
$
—
$
367,053
Gain on asset sales and disposals
2,956
—
—
$
2,956
Total revenues and other income
$
296,612
$
73,397
$
—
$
370,009
Asset impairments
$
556
$
—
$
—
$
556
Net income (loss)
$
245,527
$
73,140
$
(40,232
)
$
278,435
Adjusted EBITDA (1)
$
264,554
$
81,221
$
(26,111
)
$
319,664
Cash flow provided by (used in):
Operating activities
$
259,983
$
81,207
$
(30,212
)
$
310,978
Investing activities
$
5,426
$
—
$
(10
)
$
5,416
Financing activities
$
(583
)
$
—
$
(342,913
)
$
(343,496
)
Distributable cash flow (1)
$
265,409
$
81,207
$
(30,222
)
$
316,394
Free cash flow (1)
$
262,446
$
81,207
$
(30,222
)
$
313,431
For the Year Ended December 31, 2022
Revenues
$
328,085
$
59,795
$
—
$
387,880
Gain on asset sales and disposals
1,082
—
—
1,082
Total revenues and other income
$
329,167
$
59,795
$
—
$
388,962
Asset impairments
$
4,457
$
—
$
—
$
4,457
Net income (loss)
$
267,448
$
59,635
$
(58,591
)
$
268,492
Adjusted EBITDA (1)
$
294,424
$
44,675
$
(21,852
)
$
317,247
Cash flow provided by (used in):
Operating activities
$
262,807
$
44,672
$
(40,641
)
$
266,838
Investing activities
$
2,806
$
—
$
(118
)
$
2,688
Financing activities
$
(614
)
$
—
$
(365,341
)
$
(365,955
)
Distributable cash flow (1)
$
265,613
$
44,672
$
(40,759
)
$
269,526
Free cash flow (1)
$
264,530
$
44,672
$
(40,759
)
$
268,443
(1)
See "Non-GAAP Financial Measures" and
reconciliation tables at the end of this release.
Natural Resource Partners L.P.
Financial Tables (Unaudited)
Operating Statistics - Mineral
Rights
For the Three Months
Ended
For the Year Ended
December 31,
September 30,
December 31,
(In thousands,
except per ton data)
2023
2022
2023
2023
2022
Coal sales volumes (tons)
Appalachia
Northern
92
436
284
1,145
1,696
Central
3,537
3,408
3,429
13,927
13,646
Southern
654
613
741
2,670
1,784
Total Appalachia
4,283
4,457
4,454
17,742
17,126
Illinois Basin
2,637
2,740
2,541
8,119
11,135
Northern Powder River Basin
1,259
1,516
1,364
4,589
4,288
Gulf Coast
801
61
479
1,477
385
Total coal sales volumes
8,980
8,774
8,838
31,927
32,934
Coal royalty revenue per ton
Appalachia
Northern
$
2.18
$
6.63
$
5.54
$
7.15
$
8.75
Central
9.12
9.33
8.20
8.95
10.47
Southern
14.04
11.99
11.88
12.81
13.50
Illinois Basin
3.57
3.11
3.98
3.61
2.50
Northern Powder River Basin
3.89
3.75
4.86
4.50
4.07
Gulf Coast
0.63
0.59
0.69
0.66
0.58
Combined average coal royalty revenue per
ton
6.29
6.42
6.29
6.83
6.90
Coal royalty revenues
Appalachia
Northern
$
201
$
2,890
$
1,573
$
8,192
$
14,836
Central
32,269
31,809
28,111
124,631
142,930
Southern
9,181
7,351
8,806
34,205
24,076
Total Appalachia
41,651
42,050
38,490
167,028
181,842
Illinois Basin
9,426
8,525
10,108
29,350
27,856
Northern Powder River Basin
4,898
5,686
6,627
20,666
17,437
Gulf Coast
508
36
330
969
223
Unadjusted coal royalty revenues
56,483
56,297
55,555
218,013
227,358
Coal royalty adjustment for minimum
leases
1
(116
)
(11
)
(2
)
(402
)
Total coal royalty revenues
$
56,484
$
56,181
$
55,544
$
218,011
$
226,956
Other revenues
Production lease minimum revenues
$
1,297
$
2,312
$
850
$
3,322
$
5,854
Minimum lease straight-line revenues
5,975
4,557
4,464
19,389
18,792
Carbon neutral initiative revenues
55
—
681
2,969
8,600
Wheelage revenues
2,653
2,888
2,385
12,191
13,961
Property tax revenues
1,509
1,351
1,770
6,219
5,878
Coal overriding royalty revenues
1,010
1,127
827
2,175
3,434
Lease amendment revenues
748
751
623
3,070
3,201
Aggregates royalty revenues
701
608
736
2,876
3,299
Oil and gas royalty revenues
2,261
5,271
324
7,387
16,161
Other revenues
229
172
329
1,124
877
Total other revenues
$
16,438
$
19,037
$
12,989
$
60,722
$
80,057
Royalty and other mineral rights
$
72,922
$
75,218
$
68,533
$
278,733
$
307,013
Transportation and processing services
revenues
3,476
5,695
4,579
14,923
21,072
Gain on asset sales and disposals
2,001
383
854
2,956
1,082
Total Mineral Rights segment revenues and
other income
$
78,399
$
81,296
$
73,966
$
296,612
$
329,167
Natural Resource Partners L.P.
Financial Tables (Unaudited)
Adjusted EBITDA
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Three Months Ended December 31,
2023
Net income (loss)
$
63,127
$
14,732
$
(12,879
)
$
64,980
Less: equity earnings from unconsolidated
investment
—
(14,764
)
—
(14,764
)
Add: total distributions from
unconsolidated investment
—
15,338
—
15,338
Add: interest expense, net
—
—
3,921
3,921
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
6,016
—
4
6,020
Add: asset impairments
424
—
—
424
Adjusted EBITDA
$
69,567
$
15,306
$
(8,954
)
$
75,919
For the Three Months Ended December 31,
2022
Net income (loss)
$
62,900
$
15,704
$
(15,386
)
$
63,218
Less: equity earnings from unconsolidated
investment
—
(15,759
)
—
(15,759
)
Add: total distributions from
unconsolidated investment
—
10,780
—
10,780
Add: interest expense, net
—
—
3,638
3,638
Add: loss on extinguishment of debt
—
—
3,933
3,933
Add: depreciation, depletion and
amortization
5,954
—
—
5,954
Add: asset impairments
3,583
—
—
3,583
Adjusted EBITDA
$
72,437
$
10,725
$
(7,815
)
$
75,347
For the Three Months Ended September
30, 2023
Net income (loss)
$
61,009
$
12,348
$
(9,511
)
$
63,846
Less: equity earnings from unconsolidated
investment
—
(12,401
)
—
(12,401
)
Add: total distributions from
unconsolidated investment
—
23,010
—
23,010
Add: interest expense, net
—
—
3,837
3,837
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
4,589
—
5
4,594
Add: asset impairments
63
—
—
63
Adjusted EBITDA
$
65,661
$
22,957
$
(5,669
)
$
82,949
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
Adjusted EBITDA
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Year Ended December 31,
2023
Net income (loss)
$
245,527
$
73,140
$
(40,232
)
$
278,435
Less: equity earnings from unconsolidated
investment
—
(73,397
)
—
(73,397
)
Add: total distributions from
unconsolidated investment
—
81,478
—
81,478
Add: interest expense, net
—
—
14,103
14,103
Add: loss on extinguishment of debt
—
—
—
—
Add: depreciation, depletion and
amortization
18,471
—
18
18,489
Add: asset impairments
556
—
—
556
Adjusted EBITDA
$
264,554
$
81,221
$
(26,111
)
$
319,664
For the Year Ended December 31,
2022
Net income (loss)
$
267,448
$
59,635
$
(58,591
)
$
268,492
Less: equity earnings from unconsolidated
investment
—
(59,795
)
—
(59,795
)
Add: total distributions from
unconsolidated investment
—
44,835
—
44,835
Add: interest expense, net
—
—
26,274
26,274
Add: loss on extinguishment of debt
—
—
10,465
10,465
Add: depreciation, depletion and
amortization
22,519
—
—
22,519
Add: asset impairments
4,457
—
—
4,457
Adjusted EBITDA
$
294,424
$
44,675
$
(21,852
)
$
317,247
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
Distributable Cash Flow and
Free Cash Flow
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Three Months Ended December 31,
2023
Net cash provided by (used in) operating
activities
$
70,147
$
15,306
$
(7,667
)
$
77,786
Add: proceeds from asset sales and
disposals
2,002
—
—
2,002
Add: return of long-term contract
receivable
633
—
—
633
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
72,782
$
15,306
$
(7,667
)
$
80,421
Less: proceeds from asset sales and
disposals
(2,002
)
—
—
(2,002
)
Free cash flow
$
70,780
$
15,306
$
(7,667
)
$
78,419
Net cash provided by investing
activities
$
2,635
$
—
$
—
$
2,635
Net cash used in financing activities
$
—
$
—
$
(86,843
)
$
(86,843
)
For the Three Months Ended December 31,
2022
Net cash provided by (used in) operating
activities
$
68,332
$
10,738
$
(10,182
)
$
68,888
Add: proceeds from asset sales and
disposals
384
—
—
384
Add: return of long-term contract
receivable
585
—
—
585
Less: maintenance capital expenditures
—
—
(59
)
(59
)
Distributable cash flow
$
69,301
$
10,738
$
(10,241
)
$
69,798
Less: proceeds from asset sales and
disposals
(384
)
—
—
(384
)
Free cash flow
$
68,917
$
10,738
$
(10,241
)
$
69,414
Net cash provided by (used in) investing
activities
$
969
$
—
$
(59
)
$
910
Net cash used in financing activities
$
—
$
—
$
(91,644
)
$
(91,644
)
For the Three Months Ended September
30, 2023
Net cash provided by (used in) operating
activities
$
60,938
$
22,958
$
(4,954
)
$
78,942
Add: proceeds from asset sales and
disposals
855
—
—
855
Add: return of long-term contract
receivable
622
—
—
622
Less: maintenance capital expenditures
—
—
—
—
Distributable cash flow
$
62,415
$
22,958
$
(4,954
)
$
80,419
Less: proceeds from asset sales and
disposals
(855
)
—
—
(855
)
Free cash flow
$
61,560
$
22,958
$
(4,954
)
$
79,564
Net cash provided by investing
activities
$
1,477
$
—
$
—
$
1,477
Net cash used in financing activities
$
—
$
—
$
(72,738
)
$
(72,738
)
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures (Unaudited)
Distributable Cash Flow and
Free Cash Flow
(In
thousands)
Mineral Rights
Soda Ash
Corporate and
Financing
Total
For the Year Ended December 31,
2023
Net cash provided by (used in) operating
activities
$
259,983
$
81,207
$
(30,212
)
$
310,978
Add: proceeds from asset sales and
disposals
2,963
—
—
2,963
Add: return of long-term contract
receivable
2,463
—
—
2,463
Less: maintenance capital expenditures
—
—
(10
)
(10
)
Distributable cash flow
$
265,409
$
81,207
$
(30,222
)
$
316,394
Less: proceeds from asset sales and
disposals
(2,963
)
—
—
(2,963
)
Free cash flow
$
262,446
$
81,207
$
(30,222
)
$
313,431
Net cash provided by (used in) investing
activities
$
5,426
$
—
$
(10
)
$
5,416
Net cash used in financing activities
$
(583
)
$
—
$
(342,913
)
$
(343,496
)
For the Year Ended December 31,
2022
Net cash provided by (used in) operating
activities
$
262,807
$
44,672
$
(40,641
)
$
266,838
Add: proceeds from asset sales and
disposals
1,083
—
—
1,083
Add: return of long-term contract
receivable
1,723
—
—
1,723
Less: maintenance capital expenditures
—
—
(118
)
(118
)
Distributable cash flow
$
265,613
$
44,672
$
(40,759
)
$
269,526
Less: proceeds from asset sales and
disposals
(1,083
)
—
—
(1,083
)
Free cash flow
$
264,530
$
44,672
$
(40,759
)
$
268,443
Net cash provided by (used in) investing
activities
$
2,806
$
—
$
(118
)
$
2,688
Net cash used in financing activities
$
(614
)
$
—
$
(365,341
)
$
(365,955
)
Leverage Ratio
(In
thousands)
For the Year Ended December
31, 2023
Adjusted EBITDA
$
319,664
Debt—at December 31, 2023
$
155,525
Leverage Ratio
0.5x
(In
thousands)
For the Year Ended December
31, 2022
Adjusted EBITDA
$
317,247
Debt—at December 31, 2022
$
169,087
Leverage Ratio
0.5x
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version on businesswire.com: https://www.businesswire.com/news/home/20240307718542/en/
Tiffany Sammis Investor Relations 713.751.7515
tsammis@nrplp.com
Natural Resource Partners (NYSE:NRP)
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Natural Resource Partners (NYSE:NRP)
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De Mai 2023 à Mai 2024