Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 November 5, 2015 - 8:00 AM EST
Print Email Article Font Down Font Up
Natural Resource Partners L.P. Reports Third Quarter Results

Third Quarter 2015 Highlights - Net income attributable to the limited partners, excluding impairments, of $28.3 million, or $0.23 per unit - Non-cash impairment charges attributable to the limited partners of $614.3 million, or $5.02 per unit - Net loss attributable to the limited partners of $586.0 million, or $4.79 per unit - Distributable cash flow of $58.0 million, or $0.46 per unit - Adjusted EBITDA of $78.5 million - Consolidated Debt-to-Adjusted EBITDA of 4.7x at September 30, 2015

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.

Natural Resource Partners LP logo.

"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 per ton)




(in thousands except per unit and 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.


Source: PR Newswire (November 5, 2015 - 8:00 AM EST)

News by QuoteMedia
www.quotemedia.com