November 7, 2016 - 8:00 AM EST
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Natural Resource Partners L.P. Announces 2016 Third Quarter Results

2016 Third Quarter Highlights - Net income from continuing operations attributable to the limited partners of $16.2 million, or $1.32 per unit - Net cash provided by operating activities of continuing operations of $35.9 million - Adjusted EBITDA of $58.9 million

HOUSTON, Nov. 7, 2016 /PRNewswire/ --Natural Resource Partners L.P. (NYSE:NRP) today reported net income from continuing operations attributable to the limited partners for the three months ended September 30, 2016 of $16.2 million, or $1.32 per unit, an increase of $338.3 million, from a loss of  $322.1 million, or $(26.34) per unit, a year earlier.  Net cash provided by operating activities from continuing operations was $35.9 million in the third quarter of 2016, a decrease of $11.3 million compared to the prior year.  Adjusted EBITDA, a non-GAAP measure, was $58.9 million for the three months ended September 30, 2016, a decrease of $11.5 million compared to the same period in 2015. Excluding impairments and gains on sale of assets in both years, net income from continuing operations attributable to the limited partners was $15.4 million for the quarter ended September 30, 2016 compared to $30.5 million for the same quarter last year.  In addition, NRP received $109.9 million in net cash proceeds from the sale of its Williston Basin oil and gas properties (classified as discontinued operations).  NRP ended the quarter with $92.4 million in cash.  Reconciliations for all non-GAAP items are shown in tables at the end of the release.

Natural Resource Partners LP logo.

"Towards the end of the third quarter we began to see the benefits from higher coal prices as a result of the rapidly improving coal market," said Wyatt Hogan, President and Chief Operating Officer. "Our large exposure to metallurgical coal should benefit NRP as the benchmark metallurgical coal prices have increased over 100% in recent months.  In addition, our soda ash and construction aggregates businesses continue to perform in line with our expectations, and provide a steady source of diversified income."

Business Results and Outlook

The table below presents NRP's business results by segment for the three months ended September 30, 2016 and 2015:



Operating Business Segments






Coal
Royalty
and Other (1)






Corporate
and
Financing






Soda Ash


VantaCore



Total



(In thousands)

Three Months Ended September 30, 2016











Total revenues and other income


$

55,363



$

10,753



$

31,758



$



$

97,874


Total operating expenses excluding impairments (2)


$

17,461



$



$

30,674



$

5,135



$

53,270


Asset impairments


$

5,697



$



$



$



$

5,697


Net income (loss) from continuing operations


$

32,250



$

10,753



$

1,039



$

(27,623)



$

16,419


Adjusted EBITDA (2)


$

47,017



$

12,250



$

4,800



$

(5,132)



$

58,935


Net cash provided by (used in) operating  activities of continuing operations


$

34,997



$

12,250



$

4,357



$

(15,703)



$

35,901


Net cash provided by (used in) investing  activities of continuing operations


$

10,691



$



$

(434)



$



$

10,257


Net cash provided by (used in) financing  activities of continuing operations


$



$



$



$

24,843



$

24,843


Distributable Cash Flow (2)


$

45,683



$

12,250



$

4,093



$

(15,703)



$

156,212













Three Months Ended September 30, 2015











Total revenues and other income


$

62,222



$

12,617



$

39,193



$



$

114,032


Total operating expenses excluding impairments (2)


$

19,491



$



$

36,436



$

4,233



$

60,160


Asset impairments


$

361,703



$



$



$



$

361,703


Net income (loss) from continuing operations


$

(318,972)



$

12,617



$

2,757



$

(27,138)



$

(330,736)


Adjusted EBITDA (2)


$

55,390



$

12,740



$

6,535



$

(4,233)



$

70,432


Net cash provided by (used in) operating  activities of continuing operations


$

40,389



$

12,762



$

5,841



$

(11,818)



$

47,174


Net cash provided by (used in) investing  activities of continuing operations


$

8,422



$



$

(3,057)



$



$

5,365


Net cash provided by (used in) financing  activities of continuing operations


$



$



$



$

(11,678)



$

(11,678)


Distributable Cash Flow (2)


$

48,932



$

12,762



$

4,331



$

(11,818)



$

54,207






























(1)

As a result of the sale of our non-operated oil and gas working interest assets in the third quarter of 2016, the Partnership transitioned management responsibilities and reporting of its oil and gas royalty assets into the Coal Royalty and Other operating segment. The Partnership has adjusted the corresponding items of segment information for prior periods to reflect this change and eliminated its oil and gas segment.



(2)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

 

The table below presents NRP's business results by segment for the nine months ended September 30, 2016 and 2015:



Operating Business Segments






Coal
Royalty
and Other (1)






Corporate
and
Financing






Soda Ash


VantaCore



Total



(In thousands)

Nine Months Ended September 30, 2016











Total revenues and other income


$

193,114



$

30,742



$

88,091



$



$

311,947


Total operating expenses excluding impairments (2)


$

47,728



$



$

84,553



$

13,346



$

145,627


Asset impairments


$

7,681



$



$



$



$

7,681


Net income (loss) from continuing operations


$

137,802



$

30,742



$

3,441



$

(80,582)



$

91,403


Adjusted EBITDA (2)


$

168,979



$

34,300



$

14,454



$

(13,317)



$

204,416


Net cash provided by (used in) operating  activities of continuing operations


$

91,372



$

34,300



$

16,680



$

(67,805)



$

74,547


Net cash provided by (used in) investing  activities of continuing operations


$

57,834



$



$

(4,324)



$



$

53,510


Net cash provided by (used in) financing  activities of continuing operations


$



$

(7,229)



$

(1,593)



$

(68,047)



$

(76,869)


Distributable Cash Flow (2)


$

149,206



$

34,300



$

13,111



$

(67,805)



$

238,701













Nine Months Ended September 30, 2015











Total revenues and other income


$

190,004



$

36,739



$

107,034



$



$

333,777


Total operating expenses excluding impairments (2)


$

58,301



$



$

103,155



$

9,823



$

171,279


Asset impairments


$

365,506



$



$



$



$

365,506


Net income (loss) from continuing operations


$

(233,803)



$

36,739



$

3,879



$

(76,783)



$

(269,968)


Adjusted EBITDA (2)


$

156,942



$

34,545



$

16,378



$

(9,807)



$

198,058


Net cash provided by (used in) operating  activities of continuing operations


$

149,841



$

30,778



$

19,783



$

(68,211)



$

132,191


Net cash provided by (used in) investing  activities of continuing operations


$

15,546



$



$

(7,417)



$



$

8,129


Net cash provided by (used in) financing  activities of continuing operations


$

(2,744)



$



$



$

(136,882)



$

(139,626)


Distributable Cash Flow (2)


$

162,972



$

30,778



$

16,940



$

(68,211)



$

142,479






























(1)

As a result of the sale of our non-operated oil and gas working interest assets in the third quarter of 2016, the Partnership transitioned management responsibilities and reporting of its oil and gas royalty assets into the Coal Royalty and Other operating segment. The Partnership has adjusted the corresponding items of segment information for prior periods to reflect this change and eliminated its oil and gas segment.



(2)

See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

 

Coal Royalty and Other

NRP stands to benefit from recent improvements in both the thermal and metallurgical coal markets.  The metallurgical coal markets in particular have improved significantly over the last few months, with global contract and spot prices in excess of $200/ton due to supply shortages caused by China's recent production cutbacks, operational disruptions in Australia, and the significant number of mine closures in the United States.  As a result of the increased pricing, some of the higher-quality coal from our properties that is typically sold into the thermal market is now being sold by our lessees into the metallurgical markets, which command a higher price per ton than the thermal markets.  We expect this trend to continue to the extent the metallurgical markets show sustained improvements.  We derived approximately 32% of our coal royalty revenues and 37% of the related production from metallurgical coal during the nine months ended September 30, 2016.  The domestic thermal coal markets have also shown modest improvements, as production cuts over the last year have rationalized coal stockpiles.  Higher recent natural gas prices have also caused thermal coal to be more competitive for electricity generation.

Revenues and other income decreased $6.8 million, or 11%, from $62.2 million in the three months ended September 30, 2015 to $55.4 million in the three months ended September 30, 2016.  An $10.9 million reduction in total coal royalty revenues was caused by a 4.0 million ton reduction in sales and a $0.32 per ton decrease in combined average coal royalty revenue per ton.  While all regions except the Northern Powder River experienced reduced revenue, the largest decrease occurred in Central Appalachia, which continues to face challenges with respect to thermal coal production.

Net income from continuing operations increased $351.3 million, from a loss of $319.0 million in the three months ended September 30, 2015 to income of $32.3 million in the three months ended September 30, 2016.  This increase is primarily related to $361.7 million of impairments taken in the third quarter of 2015.

Adjusted EBITDA decreased $8.4 million, or 15%, from $55.4 million in the three months ended September 30, 2015 to $47.0 million in the three months ended September 30, 2016.  This decrease was primarily the result of lower revenues from Central Appalachian coal.

Operating cash provided by continuing operations decreased $5.4 million, or 13%, from $40.4 million in the three months ended September 30, 2015 to $35.0 million in the three months ended September 30, 2016.

Soda Ash

Revenues and other income related to our Soda Ash segment decreased $1.8 million, or 14%, from $12.6 million in the three months ended September 30, 2015 to $10.8 million in the three months ended September 30, 2016. This decrease is primarily related to lower international prices compared to the prior year, in addition to higher royalty and G&A costs. These decreases were partially offset by higher production compared to the prior year. For the three months ended September 30, 2016, we received $12.3 million in cash distributions from Ciner Wyoming and for the three months ended September 30, 2015, we received $12.7 million in cash distributions.

VantaCore

VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal.  The largest component, approximately half, of the VantaCore segment is the Laurel operation in southwestern Pennsylvania, that serves producers and service companies operating in the Marcellus and Utica Shales.  Low natural gas prices have led to a slowing pace of exploration and development in those areas and impacted Laurel's revenues.  This decline has been offset both by increased construction revenue at Laurel and reduced costs across all of the VantaCore operations.

Revenues and other income related to our VantaCore segment decreased $7.4 million, or 19%, from $39.2 million in the three months ended September 30, 2015 to $31.8 million in the three months ended September 30, 2016. While VantaCore's production and revenues have declined in 2016 compared to 2015, it's cost management efforts have enabled the business to maintain its profitability. Tonnage sold declined 14% or 0.3 million tons quarter-over-quarter to 1.8 million tons.

Discontinued Operations

In July 2016, NRP Oil and Gas sold its non-operated oil and gas working interest assets in the Williston Basin and repaid the reserve-based revolving credit facility in full. The net proceeds of $109.9 million from the sale is included in the calculation of distributable cash flow and included in net cash provided by investing activities of discontinued operations on the Consolidated Statement of Cash Flows.

Corporate and Financing

Corporate and financing general and administrative expense (including affiliates) includes corporate headquarters, financing and centralized treasury and accounting.  These costs increased $0.9 million, or 21% from $4.2 million in the three months ended September 30, 2015 to $5.1 million in the three months ended September 30, 2016 primarily due to increased legal and advisory fees related to the implementation of our long-term plan to strengthen our balance sheet, reduce debt and enhance liquidity.  Interest expense, net was essentially flat from $22.9 million in the three months ended September 30, 2015 to $22.5 million in the three months ended September 30, 2016.

In the third quarter, NRP repaid $82.7 million of debt, with $7.7 million in amortization payments on the NRP Operating senior notes and $75.0 million to repay the NRP Oil and Gas revolving credit facility in full.

Subsequent Events

On October 26, 2016, the Board of Directors of GP Natural Resource Partners LLC declared a distribution of $0.45 per unit to be paid on November 14, 2016 to unitholders of record on November 7, 2016.

On November 3, NRP sold its mineral fee interests in Grant County, Oklahoma for $7.5 million in gross cash proceeds.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States.  A large percentage of NRP's revenues are generated from royalties and other passive income.  In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.

For additional information, please contact Kathy H. Roberts at 713-751-7555 or [email protected]  Further information about NRP is available on the partnership's website at http://www.nrplp.com.

Non-GAAP Financial Measures

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings  in unconsolidated investment, interest expense, depreciation, depletion and amortization and asset impairments.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

"Distributable Cash Flow" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets, and returns of long-term contract receivables—affiliate, less maintenance capital expenditures and distributions to non-controlling interest. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the Partnership's ability to make cash distributions to our unitholders and our general partner and repay debt.

"Operating expenses excluding impairments" is a non-GAAP financial measure that we define as total operating expenses less asset impairments. "Operating expenses excluding impairments," as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.

"Net income excluding impairments" is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.

Forward-Looking Statements

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission.  All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements.  These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.  Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership.  These risks include, but are not limited to, commodity prices; decreases in demand for coal, trona and soda ash, construction aggregates, crude oil and natural gas, frac sand and other natural resources; changes in operating conditions and costs; production cuts by our lessees; the pace of development of our oil and natural gas properties; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; changes in the legislative or regulatory environment, our ability to consummate planned asset sales and execute on our long-term strategic plan and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

-Financial Tables Follow-

 

Natural Resource Partners L.P.

Financial Tables


Consolidated Statements of Comprehensive Income

(in thousands, except per unit data)






Three Months Ended


Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(Unaudited)

Revenues and other income:








Coal royalty and other

$

27,504



$

40,431



$

116,336



$

112,139


Coal royalty and other—affiliates

21,434



19,535



49,508



70,938


VantaCore

31,757



39,616



88,081



107,058


Equity in earnings of Ciner Wyoming

10,753



12,617



30,742



36,739


Gain on asset sales, net

6,426



1,833



27,280



6,903


Total revenues and other income

97,874



114,032



311,947



333,777










Operating expenses:








Operating and maintenance expenses

31,242



37,746



87,824



106,338


Operating and maintenance expenses—affiliates, net

4,062



1,744



9,948



8,090


Depreciation, depletion and amortization

11,929



15,666



32,181



44,512


Amortization expense—affiliate

902



771



2,328



2,516


General and administrative

4,268



1,809



10,676



6,014


General and administrative—affiliates

867



2,424



2,670



3,809


Asset impairments

5,697



361,703



7,681



365,506


Total operating expenses

58,967



421,863



153,308



536,785










Income (loss) from operations

38,907



(307,831)



158,639



(203,008)










Other income (expense)








Interest expense

(22,491)



(22,441)



(66,742)



(65,588)


Interest expense—affiliate



(464)



(523)



(1,388)


Interest income

3





29



16


Other expense, net

(22,488)



(22,905)



(67,236)



(66,960)










Net income (loss) from continuing operations

16,419



(330,736)



91,403



(269,968)


Income (loss) from discontinued operations

7,112



(269,265)



2,001



(279,966)


Net income (loss)

23,531



(600,001)



93,404



(549,934)


Less: net loss attributable to non-controlling interest



1,244






Net income (loss) attributable to NRP

$

23,531



$

(598,757)



$

93,404



$

(549,934)










Net income (loss) attributable to limited partners:








Continuing operations

$

16,155



$

(322,133)



$

89,771



$

(263,799)


Discontinued operations

6,970



(263,880)



1,961



(274,367)


Total

23,125



(586,013)



91,732



(538,166)










Net income (loss) attributable to the general partner:








Continuing operations

$

264



$

(7,359)



$

1,632



$

(6,169)


Discontinued operations

142



(5,385)



40



(5,599)


Total

$

406



$

(12,744)



$

1,672



$

(11,768)










Basic and diluted net income (loss) per common unit:








Continuing operations

$

1.32



$

(26.34)



$

7.34



$

(21.57)


Discontinued operations

0.57



(21.57)



0.16



(22.43)


Total

$

1.89



$

(47.91)



$

7.50



$

(44.00)










Weighted average number of common units outstanding

12,232



12,232



12,232



12,232










Net income (loss)

$

23,531



$

(600,001)



$

93,404



$

(549,934)


Add: comprehensive loss from unconsolidated investment and other

(609)



(1,136)



(692)



(1,891)


Less: comprehensive loss attributable to non-controlling interest



1,244






Comprehensive income (loss) attributable to NRP

$

22,922



$

(599,893)



$

92,712



$

(551,825)


 

Natural Resource Partners L.P.

Financial Tables


Consolidated Statements of Cash Flows

(in thousands)










Three Months Ended


Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(Unaudited)

Cash flows from operating activities:








Net income (loss)

$

23,531



$

(600,001)



$

93,404



$

(549,934)


Adjustments to reconcile net income (loss) to net cash provided by operating activities of continuing operations:








Depreciation, depletion and amortization

11,929



15,666



32,181



44,512


Amortization expense—affiliates

902



771



2,328



2,516


Distributions from equity earnings from unconsolidated investment

12,250



12,740



34,300



34,545


Equity earnings from unconsolidated investment

(10,753)



(12,617)



(30,742)



(36,739)


Gain on asset sales, net

(6,426)



(1,833)



(27,280)



(6,903)


(Income) loss from discontinued operations

(7,112)



269,265



(2,001)



279,966


Asset impairments

5,697



361,703



7,681



365,506


Gain on reserve swap







(9,290)


Other, net

2,600



2,275



6,694



(7,774)


Other, net—affiliates

636



(1,787)



848



(2,139)


Change in assets and liabilities:








Accounts receivable

(4,263)



(3,117)



(341)



3,503


Accounts receivable—affiliates

1,559



742



(712)



2,044


Accounts payable

485



(2,849)



635



(2,163)


Accounts payable—affiliates

54



1,604



29



1,563


Accrued liabilities

10,418



8,422



7,287



8,485


Accrued liabilities—affiliates



457



(456)



457


Deferred revenue

(2,558)



(1,464)



(40,762)



6,035


Deferred revenue—affiliates

(4,130)



(3,462)



(8,190)



(3,399)


Other items, net

1,689



659



(356)



1,400


Other items, net—affiliates

(607)








Net cash provided by operating activities of continuing operations

35,901



47,174



74,547



132,191


Net cash provided by operating activities of discontinued operations

2,358



8,066



8,173



29,159


Net cash provided by operating activities

38,259



55,240



82,720



161,350


Cash flows from investing activities:








Proceeds from sale of oil and gas royalty properties

1,617





35,964




Proceeds from sale of coal and hard mineral royalty properties

8,412



1,660



18,214



3,505


Return of long-term contract receivables—affiliate

397



984



2,577



2,121


Proceeds from sale of plant and equipment and other

343



6,229



1,186



11,484


Acquisition of plant and equipment and other

(512)



(3,508)



(4,431)



(8,581)


Acquisition of mineral rights







(400)


Net cash provided by investing activities of continuing operations

10,257



5,365



53,510



8,129


Net cash provided by (used in) investing activities of discontinued operations

110,635



(7,296)



106,821



(32,581)


Net cash provided by (used in) investing activities

120,892



(1,931)



160,331



(24,452)


Cash flows from financing activities:








Proceeds from loans



75,000



20,000



100,000


Repayments of loans

(7,692)



(82,692)



(106,174)



(141,175)


Distributions to partners

(5,617)



(11,232)



(16,849)



(66,142)


Distributions to non-controlling interest







(2,744)


Contributions from (to) discontinued operations

40,226



8,000



40,226



(23,725)


Debt issue costs and other

(2,074)



(754)



(14,072)



(5,840)


Net cash used in financing activities of continuing operations

24,843



(11,678)



(76,869)



(139,626)


Net cash provided by (used in) financing activities of discontinued operations

(114,994)



(8,000)



(125,564)



13,808


Net cash used in financing activities

(90,151)



(19,678)



(202,433)



(125,818)


Net increase in cash and cash equivalents

69,000



33,631



40,618



11,080


Cash and cash equivalents of continuing operations at beginning of period

21,391



8,804



41,204



48,971


Cash and cash equivalents of discontinued operations at beginning of period

2,000



18,721



10,569



1,105


Cash and cash equivalents at beginning of period

23,391



27,525



51,773



50,076


Cash and cash equivalents at end of period

92,391



61,156



92,391



61,156


Less: cash and cash equivalents of discontinued operations at end of period



11,491





11,491


Cash and cash equivalents of continuing operations at end of period

$

92,391



$

49,665



$

92,391



$

49,665










Supplemental cash flow information:








Cash paid for interest

$

12,078



$

13,022



$

54,749



$

55,761


Plant, equipment and mineral rights funded with accounts payable or accrued liabilities



13





4,465


 

Natural Resource Partners L.P.

Financial Tables


Consolidated Balance Sheets

(in thousands, except unit data)


September 30,

2016


December 31,

2015


(Unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$

92,391



$

41,204


Accounts receivable, net

44,139



43,633


Accounts receivable—affiliates, net

7,057



6,345


Inventory

7,160



7,835


Prepaid expenses and other

3,707



4,268


Current assets held for sale

5,520




Current assets of discontinued operations

991



17,844


Total current assets

160,965



121,129


Land

25,020



25,022


Plant and equipment, net

52,516



60,675


Mineral rights, net

924,181



984,522


Intangible assets, net

3,239



3,930


Intangible assets, net—affiliate

50,668



52,997


Equity in unconsolidated investment

257,661



261,942


Long-term contracts receivable—affiliate

44,224



47,359


Other assets

1,898



1,173


Other assets—affiliate

1,034



1,124


Non-current assets of discontinued operations



110,162


Total assets

$

1,521,406



$

1,670,035


LIABILITIES AND CAPITAL




Current liabilities:




Accounts payable

$

6,223



$

5,022


Accounts payable—affiliates

829



801


Accrued liabilities

44,816



44,997


Accrued liabilities—affiliates



456


Current portion of long-term debt, net

158,597



80,745


Current liabilities of discontinued operations

835



4,388


Total current liabilities

211,300



136,409


Deferred revenue

40,050



80,812


Deferred revenueaffiliates

74,663



82,853


Long-term debt, net

1,041,984



1,186,681


Long-term debt, netaffiliate



19,930


Other non-current liabilities

4,404



5,171


Non-current liabilities of discontinued operations



85,237


Commitments and contingencies




Partners' capital:




Common unitholders' interest (12,232,006 units outstanding)

154,315



79,094


General partner's interest

928



(606)


Accumulated other comprehensive loss

(2,844)



(2,152)


Total partners' capital

152,399



76,336


Non-controlling interest

(3,394)



(3,394)


Total capital

149,005



72,942


Total liabilities and capital

$

1,521,406



$

1,670,035


 

Natural Resource Partners L.P.

Financial Tables


Operating Statistics - Coal Royalty and Other

(in thousands except per ton data)






For the Three Months Ended

September 30,


For the Nine Months Ended

September 30,


2016


2015


2016


2015


(Unaudited)

Coal production (tons)








Appalachia








Northern (1)

(356)



1,518



479



7,581


Central

3,348



4,642



10,046



13,402


Southern

683



851



2,201



3,000


Total Appalachia

3,675



7,011



12,726



23,983


Illinois Basin

2,411



2,722



6,056



8,265


Northern Powder River Basin

1,318



1,301



2,734



3,497


Gulf Coast



361





778


Total coal production

7,404



11,395



21,516



36,523










Coal royalty revenue per ton








Appalachia








Northern

N/A (1)



$

0.50



$

4.19



$

0.28


Central

3.28



3.76



3.22



3.93


Southern

3.83



4.18



3.37



4.55


Illinois Basin

3.63



4.05



3.57



4.00


Northern Powder River Basin

3.27



2.80



3.04



2.64


Gulf Coast



4.26





3.85










Coal royalty revenues








Appalachia








Northern (1)

$

370



$

763



$

2,005



$

2,105


Central

10,994



17,440



32,331



52,616


Southern

2,618



3,561



7,419



13,646


Total Appalachia

13,982



21,764



41,755



68,367


Illinois Basin

8,745



11,015



21,611



33,020


Northern Powder River Basin

4,314



3,641



8,314



9,219


Gulf Coast



1,537





2,996


Total coal royalty revenue

$

27,041



$

37,957



$

71,680



$

113,602










Other revenues








Override revenue

$

615



$

433



$

1,482



$

2,195


Transportation and processing fees

6,127



5,338



15,663



16,400


Minimums recognized as revenue

9,755



3,234



60,455



12,480


Lease assignment fee



6,000





6,000


Gain on reserve swap







9,290


Wheelage

919



401



1,797



2,117


Hard mineral royalty revenues

700



3,118



2,194



7,552


Oil and gas royalty revenues

1,283



969



2,538



3,476


Property tax revenue

2,567



2,528



8,899



8,602


Other

(69)



(12)



1,136



1,363


Total other revenues

$

21,897



$

22,009



$

94,164



$

69,475


Coal royalty and other income

48,938



59,966



165,844



183,077


Gain on coal royalty and other segment asset sales

6,425



2,256



27,270



6,927


Total coal royalty and other segment revenues and other income

$

55,363



$

62,222



$

193,114



$

190,004














(1)  Northern Appalachia was impacted by a prior period adjustment of 0.5 million tons and less than $0.1 million in royalty revenue primarily related to the Hibbs Run mine that ceased production during 2016. Absent this adjustment, production in the Northern Appalachia region was 0.2 million tons, average revenue per ton was $1.97 and revenue was $0.4 million.

 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Distributable Cash Flow

(in thousands)






Coal
Royalty
and Other






Corporate
and
Financing






Soda Ash


VantaCore



Total



(Unaudited)

Three Months Ended September 30, 2016











  Net cash provided by (used in) operating activities of continuing operations


$

34,997



$

12,250



$

4,357



$

(15,703)



$

35,901


  Add: return on long-term contract receivables—affiliate


397









397


  Add: proceeds from sale of PP&E


265





78





343


  Add: proceeds from sale of mineral rights


10,029









10,029


  Add: proceeds from sale of assets included in discontinued operations










109,889


  Less: maintenance capital expenditures


(5)





(342)





(347)


  DCF


$

45,683



$

12,250



$

4,093



$

(15,703)



$

156,212













Three Months Ended September 30, 2015











  Net cash provided by (used in) operating activities of continuing operations


$

40,389



$

12,762



$

5,841



$

(11,818)



$

47,174


  Add: return on long-term contract receivables—affiliate


984









984


  Add: proceeds from sale of PP&E


6,228





1





6,229


  Add: proceeds from sale of mineral rights


1,660









1,660


  Less: maintenance capital expenditures


(329)





(1,511)





(1,840)


  DCF


$

48,932



$

12,762



$

4,331



$

(11,818)



$

54,207













Nine Months Ended September 30, 2016











  Net cash provided by (used in) operating activities of continuing operations


$

91,372



$

34,300



$

16,680



$

(67,805)



$

74,547


  Add: return on long-term contract receivables—affiliate


2,577









2,577


  Add: proceeds from sale of PP&E


1,084





102





1,186


  Add: proceeds from sale of mineral rights


54,178









54,178


  Add: proceeds from sale of assets included in discontinued operations










109,889


  Less: maintenance capital expenditures


(5)





(3,671)





(3,676)


  DCF


$

149,206



$

34,300



$

13,111



$

(67,805)



$

238,701













Nine Months Ended September 30, 2015











  Net cash provided by (used in) operating activities of continuing operations


$

149,841



$

30,778



$

19,783



$

(68,211)



$

132,191


  Add: return on long-term contract receivables—affiliate


2,121









2,121


  Add: proceeds from sale of PP&E


10,578





906





11,484


  Add: proceeds from sale of mineral rights


3,505









3,505


  Less: maintenance capital expenditures


(329)





(3,749)





(4,078)


  Less: distributions to non-controlling interest


(2,744)









(2,744)


  DCF


$

162,972



$

30,778



$

16,940



$

(68,211)



$

142,479


 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Adjusted EBITDA

(in thousands)






Coal
Royalty and
Other






Corporate
and
Financing






Soda Ash


VantaCore



Total



(Unaudited)

Three Months Ended September 30, 2016











  Net income (loss) from continuing operations


$

32,250



$

10,753



$

1,039



$

(27,623)



$

16,419


  Less: equity earnings from unconsolidated investment




(10,753)







(10,753)


  Add: distributions from unconsolidated investment




12,250







12,250


  Add: depreciation, depletion and amortization


9,070





3,761





12,831


  Add: asset impairments


5,697









5,697


  Add: interest expense








22,491



22,491


  Adjusted EBITDA


$

47,017



$

12,250



$

4,800



$

(5,132)



$

58,935













Three Months Ended September 30, 2015











  Net income (loss) from continuing operations


$

(318,972)



$

12,617



$

2,757



$

(27,138)



$

(330,736)


  Less: equity earnings from unconsolidated investment




(12,617)







(12,617)


  Add: distributions from unconsolidated investment




12,740







12,740


  Add: depreciation, depletion and amortization


12,659





3,778





16,437


  Add: asset impairments


361,703









361,703


  Add: interest expense








22,905



22,905


  Adjusted EBITDA


$

55,390



$

12,740



$

6,535



$

(4,233)



$

70,432













Nine Months Ended September 30, 2016











  Net income (loss) from continuing operations


$

137,802



$

30,742



$

3,441



$

(80,582)



$

91,403


  Less: equity earnings from unconsolidated investment




(30,742)







(30,742)


  Add: distributions from unconsolidated investment




34,300







34,300


  Add: depreciation, depletion and amortization


23,496





11,013





34,509


  Add: asset impairments


7,681









7,681


  Add: interest expense








67,265



67,265


  Adjusted EBITDA


$

168,979



$

34,300



$

14,454



$

(13,317)



$

204,416













Nine Months Ended September 30, 2015











  Net income (loss) from continuing operations


$

(233,803)



$

36,739



$

3,879



$

(76,783)



$

(269,968)


  Less: equity earnings from unconsolidated investment




(36,739)







(36,739)


  Less: gain on reserve swap


(9,290)









(9,290)


  Add: distributions from unconsolidated investment




34,545







34,545


  Add: depreciation, depletion and amortization


34,529





12,499





47,028


  Add: asset impairments


365,506









365,506


  Add: interest expense








66,976



66,976


  Adjusted EBITDA


$

156,942



$

34,545



$

16,378



$

(9,807)



$

198,058


 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Operating Expenses Excluding Impairments

(in thousands)






Coal
Royalty
and Other






Corporate
and
Financing






Soda Ash


VantaCore



Total



(Unaudited)

Three Months Ended September 30, 2016











Total operating expenses


$

23,158



$



$

30,674



$

5,135



$

58,967


Less: asset impairments


5,697









5,697


Operating expenses excluding impairments


$

17,461



$



$

30,674



$

5,135



$

53,270













Three Months Ended September 30, 2015











Total operating expenses


$

381,194



$



$

36,436



$

4,233



$

421,863


Less: asset impairments


361,703









361,703


Operating expenses excluding impairments


$

19,491



$



$

36,436



$

4,233



$

60,160













Nine Months Ended September 30, 2016











Total operating expenses


55,409





84,553



$

13,346



$

153,308


Less: asset impairments


7,681









7,681


Operating expenses excluding impairments


$

47,728



$



$

84,553



$

13,346



$

145,627













Nine Months Ended September 30, 2015











Total operating expenses


$

423,807



$



$

103,155



$

9,823



$

536,785


Less: asset impairments


365,506









365,506


Operating expenses excluding impairments


$

58,301



$



$

103,155



$

9,823



$

171,279


 


Non-cash impairment charges attributable to the limited partners

(in thousands)




For the Three Months Ended


For the Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(Unaudited)

Asset impairments, as reported


5,697



361,703



7,681



365,506


Asset impairments attributable to the limited partners


5,583



354,469



7,527



358,196


Asset impairments attributable to the general partners


114



7,234



154



7,310











Gain on sale of assets attributable to the limited partners

(in thousands)




For the Three Months Ended


For the Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(Unaudited)

Gain on sale of assets, as reported


6,426



1,833



27,280



6,903


Gain on sale of assets attributable to the limited partners


6,297



1,796



26,734



6,765


Gain on sale of assets attributable to the general partners


129



37



546



138











 

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures


Net Income from Continuing Operations and Net Income from Continuing Operations Per Unit Attributable to the Limited Partners Excluding Impairments and Asset Sales

(in thousands)










For the Three Months Ended


For the Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(Unaudited)

Net income (loss) from continuing operations attributable to the limited partners, as reported


$

16,155



$

(322,133)



$

89,771



$

(263,799)


Gain on sale of assets attributable to the limited partners


(6,297)



(1,796)



(26,734)



(6,765)


Asset impairments attributable to the limited partners


5,583



354,469



7,527



358,196


Net income from continuing operations attributable to the limited partners excluding impairments and gain on asset sales


$

15,441



$

30,540



$

70,564



$

87,632


Weighted average number of common units outstanding:


12,232



12,232



12,232



12,232


Net income from continuing operations per unit attributable to the limited partners excluding impairments and gain on asset sales


$

1.26



$

2.50



$

5.77



$

7.16


 

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/natural-resource-partners-lp-announces-2016-third-quarter-results-300357920.html

SOURCE Natural Resource Partners L.P.


Source: PR Newswire (November 7, 2016 - 8:00 AM EST)

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