NATURAL RESOURCE PARTNERS LP 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.
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"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
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SOURCE Natural Resource Partners L.P.
