HOUSTON, Nov. 5, 2015 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE:NRP) today reported a net loss attributable to the limited partners for the third quarter of 2015 of $586.0 million, or $4.79 per unit, compared with net income attributable to the limited partners of $35.5 million, or $0.32 per unit a year earlier. Results for the third quarter of 2015 were negatively impacted by $614.3 million of non-cash impairment charges attributable to the limited partners, as the market value of certain of the Partnership's assets were impacted by continued deterioration of the coal markets and the significant decline in oil prices.
http://photos.prnewswire.com/prnvar/20060109/NRPLOGO
"Although our soda ash and aggregates businesses performed well again in the third quarter, low commodity prices and challenging markets continued to pressure our coal and oil and gas businesses," said Wyatt Hogan, President and Chief Operating Officer. "In this difficult operating environment, NRP remains steadfastly focused on achieving its deleveraging target of a Consolidated Debt-to-EBITDA ratio of 3.5x by the end of 2017. We believe the actions taken this year will better position the partnership to navigate this difficult commodity price period and become a stronger company for the future."
To date in 2015, NRP has taken the following steps to achieve the financial objectives outlined in the April 2015 strategic plan:
-- reduced quarterly unitholder distribution by 87% from $0.35 to $0.045 per common unit, which is expected to provide approximately $150 million of cash annually for debt repayment in future periods; -- extended the maturity of Opco's revolving credit facility until October 1, 2017; -- reduced net debt by $66 million, having repaid $56 million in principal on Opco's senior notes, repaid the $75 million Opco term loan in full using borrowings under Opco's revolving credit facility, and repaid $25 million under the NRP Oil and Gas revolving credit facility, of which $15 million was paid following the end of the third quarter; -- announced plans to close three regional offices and reduce NRP's coal related workforce by 15%, and implemented other steps to reduce overhead costs; and -- commenced processes, including the engagement of advisors, to sell assets in order to raise cash to help NRP stay on track to achieve its deleveraging objectives in spite of a difficult commodity environment.
At September 30, 2015, NRP had $76 million of liquidity, consisting of $61 million in cash and $15 million available for borrowing under its revolving credit facilities. Since the end of the quarter, the NRP Oil and Gas revolving credit facility borrowing base redetermination was completed and the borrowing base was reduced from $105 million to $88 million. NRP subsequently paid off $15 million of borrowings, leaving $85 million of debt outstanding under the facility.
In October 2015, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.045 per unit with respect to the third quarter of 2015, a decrease of 50% from the previous quarter, and a decrease of 87% from the distribution paid with respect to the third quarter of 2014.
Highlights For the Three Months Ended For the Nine Months Ended -------------------------- ------------------------- September 30, % September 30, % 2015 2014 Change 2015 2014 Change ---- ---- ------ ---- ---- ------ (in thousands except per unit and (in thousands except per unit and per ton) per ton) Revenues Total revenues and other income $125,479 $91,609 37% $372,786 $262,479 42% Coal production (tons) 11,395 13,370 (15)% 36,523 37,473 (3)% Average coal royalty revenue per ton $3.33 $3.80 (12)% $3.11 $3.74 (17)% Coal royalty revenues $37,957 $50,870 (25)% $113,602 $140,169 (19)% Other coal related revenue $17,047 $14,323 19% $51,788 $32,758 58% Total coal related revenues $55,004 $65,193 (16)% $165,390 $172,927 (4)% Aggregates related revenue $42,326 $2,655 1,494% $114,158 $9,614 1,087% Oil and gas related revenue $12,416 $9,601 29% $42,485 $37,481 13% Equity in earnings of unconsolidated investment $12,617 $9,685 30% $36,739 $28,865 27% Operating expenses $701,769 $36,582 1,818% $852,739 $104,610 715% Operating expenses excluding impairments $74,931 $36,582 105% $222,098 $98,986 124% Interest expense $23,711 $18,862 26% $69,997 $57,759 21% Net income Net income (loss) to limited partners $(586,013) $35,450 (1,753)% $(538,166) $98,181 (648)% Net income (loss) per common unit $(4.79) $0.32 (1,597)% $(4.40) $0.89 (594)% Weighted average common units outstanding 122,300 111,244 10% 122,300 110,504 11% Net income excluding impairments (1) Net income to limited partners $28,288 $35,450 (20)% $79,862 $103,693 (23)% Net income per unit $0.23 $0.32 (28)% $0.65 $0.94 (31)% Net cash provided by operating activities $55,240 $57,458 (4)% $161,350 $157,096 3% Distributable cash flow (1) $58,007 $57,773 -% $157,805 $160,670 (2)% Adjusted EBITDA (1) $78,539 $68,571 15% $221,896 $214,489 3%
(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.
Third Quarter 2015 compared to Third Quarter 2014
During the third quarter, NRP identified facts and circumstances that indicated that the carrying value of certain mineral rights may exceed expected future cash flows from those assets and recorded non-cash impairment expense as follows (in thousands):
Asset Description Amount ----------------- ------ Oil and Gas $335,662 Coal 247,815 Aggregates royalties 43,361 Total impairment expense $626,838 Impairments attributable to the general partner $12,537 Impairments attributable to the limited partners $614,301
Oil and gas property impairments primarily resulted from declines in future expected realized commodity prices and reduced expected drilling activity on NRP's acreage. Coal property impairments primarily resulted from idled operations in Appalachia combined with the continued deterioration in the coal markets and expectations of further reductions in global and domestic coal demand due to reduced global steel demand, low natural gas prices, and continued regulatory pressure on the electric power generation industry. Aggregates royalty property impairments primarily resulted from greenfield development projects that have not performed as well as initially projected. No VantaCore assets were subject to impairments.
Net income attributable to the limited partners for the third quarter, excluding impairments, declined 7.2 million, or 20%, compared to the previous year as contributions from our investment in the soda ash business and the VantaCore operations acquired in the fourth quarter of 2014 were more than offset by declines in coal revenues, losses in oil and gas, and increased interest expense. Including impairments, net income to the limited partners declined $621.5 million.
Net income per unit, excluding impairments, declined $0.09, or 28%, compared to the third quarter 2014, as a result of lower net income and 11.1 million additional common units outstanding during 2015. Including impairments, net income per unit declined by $5.11.
Distributable cash flow of $58.0 million for the third quarter of 2015 was essentially flat with the previous year, as an increase of $7.4 million from asset sales was substantially offset by $5.6 million of maintenance capital expenditures and reduced cash from operations. Distributable cash flow per unit declined 10% as a result of the increase in common units outstanding compared to the third quarter of 2014.
Adjusted EBITDA increased $10.0 million, or 15%, in the third quarter 2015 to $78.5 million. This increase in Adjusted EBITDA is mainly related to the inclusion of VantaCore and the Sanish Field in our operating results in 2015, as well as increased distributions from our soda ash investment.
Year to Date 2015 compared to Year to Date 2014
Net income attributable to the limited partners for the first nine months of 2015, excluding impairments, declined $23.8 million, or 23%, compared to the previous year as contributions from our investment in the soda ash business and the VantaCore operations acquired in the fourth quarter of 2014 were more than offset by declines in coal revenues, losses in oil and gas, and increased interest expense. Including impairments, net income to the limited partners declined $636.3 million.
Net income per unit, excluding impairments, declined $0.29, or 31%, compared to the first nine months of 2014 as a result of lower net income and 11.8 million additional outstanding units. Including impairments, net income per unit declined by $5.29.
Distributable cash flow of $157.8 million for the first nine months of 2015 was essentially flat with the previous year as increased cash from operating activities and asset sale proceeds of $17.9 million were more than offset by $20.9 million of maintenance capital expenditures. Distributable cash flow per common unit declined by 11% as a result of the increase in common units outstanding compared to the first nine months of 2014.
Adjusted EBITDA increased $7.4 million in the first nine months of 2015 over the prior period to $221.9 million. This increase in Adjusted EBITDA is mainly related to the inclusion of VantaCore and the Sanish Field in our operating results in 2015.
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 LLC (formerly OCI Wyoming LLC), a trona/soda ash operation, owns non-operated working interests in oil and gas properties and owns VantaCore, a construction aggregates business, 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" represents cash flow from operations plus return on unconsolidated equity investments, proceeds from the sale of assets, and the return on direct financing lease and contractual overrides less maintenance capital expenditures and distributions to non-controlling interest. Distributable cash flow is a "non-GAAP financial measure" that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP's ability to make quarterly cash distributions to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. 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. A reconciliation of distributable cash flow to net cash provided by operating activities is included in the tables attached to this release. Distributable cash flow may not be calculated the same for NRP as other companies.
"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income less equity and other unconsolidated investment income, gains on reserve swap and income to non-controlling interest; plus cash distributions received from unconsolidated affiliates, interest expense, taxes, 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, 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. Adjusted EBITDA provides no information regarding a company'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 useful in evaluating our financial performance because this measure is widely used by analysts, investors and rating agencies for comparative purposes. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect our net income or 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.
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.
-Financial statements follow-
Natural Resource Partners, L.P. Comparison of Third Quarter 2015 to Second Quarter 2015 For the Three Months Ended -------------------------- September 30, 2015 June 30, 2015 % Change -------------- ------------- -------- (in thousands, except per ton and per unit) Revenues and other income Total revenues and other income $125,479 $137,630 (9)% Coal production (tons) 11,395 14,020 (19)% Average coal royalty revenue per ton $3.33 $2.74 22% Coal royalty revenues $37,957 $38,433 (1)% Other coal related revenue $17,047 $22,471 (24)% Total coal related revenue $55,004 $60,904 (10)% Aggregates related revenue $42,326 $42,886 (1)% Oil and gas related revenue $12,416 $14,839 (16)% Equity in earnings of unconsolidated investment $12,617 $11,599 9% Operating expenses $701,769 $81,710 759% Operating expenses excluding impairments $74,931 $77,907 (4)% Net income (loss) Net income (loss) to limited partners $(586,013) $30,707 (2,008)% Net income (loss) per unit $(4.79) $0.25 (2,016)% Average units outstanding 122,300 122,300 -% Net income excluding impairments Net income to the limited partners $28,288 $34,434 (18)% Net income per unit $0.23 $0.28 (18)% Net cash provided by operating activities $55,240 $50,638 9% Distributable cash flow $58,007 $47,171 23% Adjusted EBITDA $78,539 $79,153 (1)%
Natural Resource Partners L.P. Consolidated Statements of Comprehensive Income (loss) (in thousands, except per unit data) For the Three Months Ended, For the Nine Months Ended September 30, September 30, ------------- ------------- 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Revenues and other income: Coal related revenues $35,469 $39,675 $94,452 $107,593 Coal related revenues - affiliates 19,535 25,518 70,938 65,334 Aggregates related revenues 42,326 2,655 114,158 9,614 Oil and gas related revenues 12,416 9,601 42,485 37,481 Equity in earnings of unconsolidated investment 12,617 9,685 36,739 28,865 Property taxes 2,528 3,520 8,602 10,865 Other 588 955 5,412 2,727 Total revenues and other income 125,479 91,609 372,786 262,479 Operating expenses: Coal related expenses 649 3,383 2,474 4,623 Coal related expenses - affiliates, net (68) - 41 - Aggregates related expenses, net 31,107 (244) 86,314 (170) Oil and gas related expenses 3,049 2,147 9,809 6,359 General and administrative 5,140 4,825 14,829 13,543 General and administrative - affiliates 4,144 3,083 11,465 9,177 Depreciation, depletion and amortization 26,624 18,621 82,676 49,618 Property, franchise and other taxes 4,286 4,767 14,490 15,836 Asset impairments 626,838 - 630,641 5,624 Total operating expenses 701,769 36,582 852,739 104,610 Income (loss) from operations (576,290) 55,027 (479,953) 157,869 Other income (expense) Interest expense (23,711) (18,862) (69,997) (57,759) Interest income - 8 16 75 Other expense, net (23,711) (18,854) (69,981) (57,684) Net Income (loss) (600,001) 36,173 (549,934) 100,185 Less: net loss attributable to non-controlling interest 1,244 - - - Net income (loss) attributable to NRP $(598,757) $36,173 $(549,934) $100,185 ========= ======= ========= ======== Net income (loss) attributable to partners: Limited partners (586,013) 35,450 (538,166) 98,181 General partner (12,744) 723 (11,768) 2,004 Basic and diluted net income (loss) per common unit $(4.79) $0.32 $(4.40) $0.89 ====== ===== ====== ===== Weighted average number of common units outstanding: 122,300 111,244 122,300 110,504 Net income (loss) $(600,001) $36,173 $(549,934) $100,185 Add: Comprehensive income (loss) from unconsolidated investment and other (1,136) 370 (1,891) 106 Less: Comprehensive loss attributable to non- controlling interest 1,244 - - - ----- --- --- --- Comprehensive income (loss) attributable to NRP $(599,893) $36,543 $(551,825) $100,291 ========= ======= ========= ========
Natural Resource Partners L.P. Consolidated Statements of Cash Flow (in thousands, except per unit data) For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------- ------------- 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Cash flows from operating activities: Net income (loss) $(600,001) $36,173 $(549,934) $100,185 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Asset impairment 626,838 - 630,641 5,624 Depreciation, depletion and amortization 26,624 18,621 82,676 49,618 Distributions from equity earnings from unconsolidated investment 12,740 10,290 34,545 32,225 Equity earnings from unconsolidated investment (12,617) (9,685) (36,739) (28,865) Gain on reserve swap - (5,690) (9,290) (5,690) Other, net (305) 674 (3,033) 2,142 Other, net - affiliates (734) - (721) - Change in operating assets and liabilities: Accounts receivable (641) (2,394) 11,919 (5,072) Accounts receivable - affiliates 742 (1,529) 2,044 (2,881) Accounts payable (3,350) 2,782 (2,769) 1,662 Accounts payable - affiliates 1,627 40 1,616 94 Accrued liabilities 8,478 2,961 3,059 993 Deferred revenue (1,464) 1,084 6,035 (81) Deferred revenue - affiliates (3,462) 3,162 (3,399) 11,426 Accrued incentive plan expenses 535 471 (6,417) (5,445) Other items, net 498 432 1,750 750 Other items, net - affiliates (268) 66 (633) 411 Net cash provided by operating activities 55,240 57,458 161,350 157,096 Cash flows from investing activities: Acquisition of mineral rights (6,818) (5,144) (35,939) (14,035) Acquisition of plant and equipment and other (3,508) (72) (8,581) (207) Proceeds from sale of plant and equipment and other 5,751 5 11,006 5 Proceeds from sale of mineral rights 1,660 - 6,941 - Return on equity and other unconsolidated investments - - - 3,633 Return on long-term contract receivables - affiliate 984 310 2,121 910 Net cash used in investing activities (1,931) (4,901) (24,452) (9,694) Cash flows from financing activities: Proceeds from loans 75,000 - 100,000 2,000 Proceeds from issuance of common units - 10,984 - 24,826 Capital contribution by general partner - 160 - 507 Repayment of loans (82,692) (15,692) (151,175) (69,175) Distributions to partners (11,232) (39,733) (66,142) (118,372) Distributions to non- controlling interest - - (2,744) (974) Debt issuance costs and other (754) (163) (5,757) (601) Net cash used in financing activities (19,678) (44,444) (125,818) (161,789) Net increase (decrease) in cash and cash equivalents 33,631 8,113 11,080 (14,387) Cash and cash equivalents at beginning of period 27,525 70,013 50,076 92,513 Cash and cash equivalents at end of period $61,156 $78,126 $61,156 $78,126 ======= ======= ======= ======= Supplemental cash flow information: Cash paid during the period for interest $13,743 $13,131 $57,917 $52,266 Plant, equipment and mineral rights funded with accounts payable or accrued liabilities $13 - 4,465 -
Natural Resource Partners L.P. Consolidated Balance Sheets (in thousands, except for unit information) September 30, December 31, 2015 2014 ---- ---- (unaudited) ASSETS Current assets: Cash and cash equivalents $61,156 $50,076 Accounts receivable, net 54,888 66,455 Accounts receivable - affiliates 7,450 9,494 Inventory 6,849 5,814 Prepaid expenses and other 2,661 4,279 ----- Total current assets 133,004 136,118 Land 25,022 25,243 Plant and equipment, net 71,194 60,093 Mineral rights, net 1,144,809 1,781,852 Intangible assets, net 58,269 60,733 Equity in unconsolidated investment 262,347 264,020 Long-term contracts receivable - affiliate 48,520 50,008 Goodwill 4,840 52,012 Other assets 16,864 14,645 Other assets - affiliate 1,525 - ----- --- Total assets $1,766,394 $2,444,724 ========== ========== LIABILITIES AND CAPITAL Current liabilities: Accounts payable $11,377 $22,465 Accounts payable - affiliates 2,566 950 Accrued liabilities 54,895 43,533 Current portion of long-term debt, net 80,983 80,983 ------ Total current liabilities 149,821 147,931 Deferred revenue 79,242 73,207 Deferred revenue - affiliates 83,654 87,053 Long-term debt, net 1,323,708 1,374,336 Long-term debt, net - affiliate 19,923 19,904 Other non-current liabilities 9,839 22,138 Partners' capital: Common unitholders' interest (122,299,825 units outstanding) 106,011 709,019 General partner's interest (60) 12,245 Accumulated other comprehensive loss (2,350) (459) Total partners' capital 103,601 720,805 Non-controlling interest (3,394) (650) ------ ---- Total capital 100,207 720,155 Total liabilities and capital $1,766,394 $2,444,724 ========== ==========
Natural Resource Partners L.P. Operating Statistics - Coal Related Revenue (in thousands except per ton data) For the Three Months Ended For the Nine Months Ended September 30, September 30 ------------- ------------ 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Regional Statistics Coal royalty production (tons): Appalachia Northern 1,518 2,060 7,581 6,537 Central 4,642 5,432 13,402 15,096 Southern 851 1,017 3,000 2,950 --- ----- ----- ----- Total Appalachia 7,011 8,509 23,983 24,583 Illinois Basin 2,722 3,526 8,265 10,064 Northern Powder River Basin 1,301 1,054 3,497 2,106 Gulf Coast 361 281 778 720 Total coal royalty production 11,395 13,370 36,523 37,473 Average royalty revenue per ton: Appalachia Northern $0.50 $0.90 $0.28 $0.91 Central 3.76 4.69 3.93 4.59 Southern 4.18 5.04 4.55 5.24 Total Appalachia 3.10 3.81 2.85 3.69 Illinois Basin 4.05 4.08 4.00 4.07 Northern Powder River Basin 2.80 2.91 2.64 2.87 Gulf Coast 4.26 3.40 3.85 3.43 Combined average royalty revenue per ton $3.33 $3.80 $3.11 $3.74 Coal royalty revenues: Appalachia Northern $763 $1,844 $2,105 $5,941 Central 17,440 25,470 52,616 69,289 Southern 3,561 5,130 13,646 15,469 ----- ----- ------ ------ Total Appalachia 21,764 32,444 68,367 90,699 Illinois Basin 11,015 14,403 33,020 40,956 Northern Powder River Basin 3,641 3,069 9,219 6,041 Gulf Coast 1,537 954 2,996 2,473 Total coal royalty revenues $37,957 $50,870 $113,602 $140,169 Other coal related revenues: Override revenue $433 $771 $2,195 $3,516 Transportation and processing fees 5,338 5,589 16,400 16,682 Minimums recognized as revenue 3,234 1,396 12,480 4,204 Coal reserve swap - 5,690 9,290 5,690 DOH property sale 1,641 - 3,306 - Lease assignment fee 6,000 - 6,000 - Wheelage 401 877 2,117 2,666 Total other coal related revenues $17,047 $14,323 $51,788 $32,758 ------- ------- ------- ------- Total coal related revenues $55,004 $65,193 $165,390 $172,927 ======= ======= ======== ======== Coal related revenues $35,469 $39,675 $94,452 $107,593 Coal related revenues - affiliates 19,535 25,518 70,938 65,334
Natural Resource Partners L.P. Operating Statistics - Aggregates and Industrial Minerals (in thousands) For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------- ------------- 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- VantaCore Tonnage Sold 2,126 - 5,652 - Revenues $39,208 - $106,606 - Operating expenses $31,107 - $86,314 - Other aggregate related revenue Override revenue $1,398 $1,708 $4,285 $3,908 Bonus revenue - - - 562 Processing fees 215 142 551 448 Minimums recognized as revenue 25 110 58 1,617 Sale of prep plant 623 - 623 - Wheelage 414 142 688 401 Aggregates royalty revenue 443 553 1,347 2,678 --- --- ----- ----- Total aggregate royalty related revenue $3,118 $2,655 $7,552 $9,614 Total aggregate related revenues $42,326 $2,655 $114,158 $9,614 ======= ====== ======== ====== Investment in Ciner Wyoming: Soda ash revenues and distributions Equity in earnings of unconsolidated investment $12,617 $9,685 $36,739 $28,865 Cash distributions from equity earnings in unconsolidated investment $12,740 $10,290 $34,545 $35,858
Natural Resource Partners L.P. Operating Statistics - Oil and Gas ($ in thousands) For the Three Months Ended For the Nine Months Ended September 30 September 30 ------------ ------------ 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Williston Basin non-operated working interests: Production volumes: Oil (MBbl) 276 77 849 284 Natural gas (Mcf) 192 90 601 202 NGL (MBbl) 33 8 109 20 Total Production (MBoe) 341 100 1,058 338 Average sales price per unit Oil ($/Bbl) $39.24 $84.65 $42.37 $92.82 Natural gas ($/Mcf) 2.62 5.11 2.56 6.45 NGL ($/Bbl) 3.48 41.00 9.57 45.55 Revenues Oil $10,829 6,518 $35,976 26,360 Natural gas 503 460 1,540 1,303 NGL 115 328 1,043 911 Non-production revenue - - 450 - --- --- --- --- Total revenues $11,447 $7,306 $39,009 $28,574 Other oil and gas related revenues Royalty and overriding royalty revenues $969 2,295 $3,476 8,907 Total oil and gas revenues $12,416 $9,601 $42,485 $37,481 ======= ====== ======= =======
Natural Resource Partners L.P. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (in thousands) Reconciliation of GAAP "Net cash provided by operating activities" to Non-GAAP "Distributable cash flow" For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------- ------------- 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net cash provided by operating activities $55,240 $57,458 $161,350 $157,096 Add: return on long-term contract receivables - affiliate 984 310 2,121 910 Add: return on unconsolidated equity investments - - - 3,633 Add: proceeds from sale of mineral rights 1,660 - 6,941 - Add: proceeds from sale of plant and equipment and other 5,751 5 11,006 5 Less: maintenance capital expenditures (5,628) - (20,869) - Less: distributions to non- controlling interest - - (2,744) (974) --- --- Distributable cash flow $58,007 $57,773 $157,805 $160,670 ======= ======= ======== ======== Units Outstanding 122,300 111,244 122,300 110,504 Distributable cash flow per unit $0.46 $0.51 $1.26 $1.42 Reconciliation of GAAP "Net cash provided by operating activities" to Non-GAAP "Distributable cash flow" For the Three Months Ended -------------------------- September 30, June 30, 2015 2015 ---- ---- (unaudited) ---------- Net cash provided by operating activities $55,240 $50,638 Add: return on long-term contract receivables - affiliate 984 - Add: proceeds from sale of mineral rights 1,660 1,020 Add: proceeds from sale of plant and equipment and other 5,751 4,350 Less: maintenance capital expenditures (5,628) (6,755) Less: distributions to non- controlling interest - (2,082) --- Distributable cash flow $58,007 $47,171 ======= ======= Units Outstanding 122,300 122,300 Distributable cash flow per unit $0.46 $0.38
Natural Resource Partners L.P. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (in thousands) Reconciliation of GAAP "Net income" to Non-GAAP "Adjusted EBITDA" For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------- ------------- 2015 2014 2015 2014 ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net income (loss) $(600,001) $36,173 $(549,934) $100,185 Less: equity earnings in unconsolidated investment (12,617) (9,685) (36,739) (28,865) Less: gain on reserve swap - (5,690) (9,290) (5,690) Add: loss to non- controlling interest 1,244 - - - Add: distributions from equity earnings in unconsolidated investment 12,740 10,290 34,545 35,858 Add: depreciation, depletion and amortization 26,624 18,621 82,676 49,618 Add: asset impairments 626,838 - 630,641 5,624 Add: interest expense, gross 23,711 18,862 69,997 57,759 Adjusted EBITDA $78,539 $68,571 $221,896 $214,489 ======= ======= ======== ======== Reconciliation of GAAP "Net income" to Non-GAAP "Adjusted EBITDA" For the Three Months Ended -------------------------- September 30, June 30, 2015 2015 ---- ---- (unaudited) ---------- Net income (loss) $(600,001) $32,578 Less: equity earnings in unconsolidated investment (12,617) (11,599) Less: gain on reserve swap - (9,290) Less: (income) loss to non- controlling interest 1,244 (1,244) Add: distributions from equity earnings in unconsolidated investment 12,740 10,902 Add: depreciation, depletion and amortization 26,624 30,660 Add: asset impairments 626,838 3,803 Add: interest expense, gross 23,711 23,343 Adjusted EBITDA $78,539 $79,153 ======= =======
Natural Resource Partners L.P. Reconciliation of GAAP "Total operating costs and expenses" to Non-GAAP "Total operating expenses excluding impairments" (in thousands) For the Three Months Ended For the Nine Months Ended -------------------------- June 30, September 30, September 30, September 30, September 30, 2015 2015 2014 2015 2014 ---- ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Operating expenses ------------------ Total operating expenses as reported $81,710 $701,769 $36,582 $852,739 $104,610 Asset impairments (3,803) (626,838) - (630,641) (5,624) Total operating expenses excluding impairments 77,907 74,931 36,582 222,098 98,986 Reconciliation of GAAP "Net income (loss) attributable to the limited partners" to Non-GAAP "Net income attributable to the limited partners excluding impairments" (in thousands) For the Three Months Ended For the Nine Months Ended -------------------------- June 30, September 30, September 30, September 30, September 30, 2015 2015 2014 2015 2014 ---- ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net income (loss) attributable to the limited partners ------------------------------------- Net income (loss) attributable to the limited partners, as reported $30,707 $(586,013) $35,450 $(538,166) $98,181 Asset impairments attributable to the limited partners 3,727 614,301 - 618,028 5,512 Net income attributable to the limited partners excluding impairments $34,434 $28,288 $35,450 $79,862 $103,693 Reconciliation of GAAP "Basic and diluted net income (loss) per unit" to Non-GAAP "Net income per unit excluding impairments" (in thousands, except per unit) For the Three Months Ended For the Nine Months Ended -------------------------- June 30, September 30, September 30, September 30, September 30, 2015 2015 2014 2015 2014 ---- ---- ---- ---- ---- (unaudited) (unaudited) ---------- ---------- Net income (loss) per unit -------------------------- Net income (loss) per unit as reported $0.25 $(4.79) $0.32 $(4.40) $0.89 Adjustment for asset impairments 0.03 5.02 - 5.05 0.05 Net income per limited partner unit excluding impairments 0.28 0.23 0.32 0.65 0.94 Weighted number of units outstanding 122,300 122,300 111,244 122,300 110,504 * Numbers may not add due to rounding
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/natural-resource-partners-lp-reports-third-quarter-results-300173189.html
SOURCE Natural Resource Partners L.P.