Natural Resource Partners L.P. Announces 2015 Fourth-Quarter and Full-Year Results

2015 Full Year Highlights

- Net income attributable to the limited partners, excluding impairments, of $108.5 million, or $8.87 per unit on a split-adjusted basis

- Non-cash impairment charges attributable to the limited partners of $668.0 million

- Net loss attributable to the limited partners of $559.5 million, or $45.75 per unit on a split-adjusted basis

- Revenues of $488.8 million

- Distributable Cash Flow of $197.0 million

- Adjusted EBITDA of $292.1 million

11 Mar, 2016, 08:00 ET from Natural Resource Partners L.P.

HOUSTON, March 11, 2016 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today reported a net loss attributable to the limited partners for the year ended December 31, 2015 of $559.5 million, or $45.75 per unit, compared with net income attributable to the limited partners of $106.7 million, or $9.42  per unit, a year earlier.  Results for the full year 2015 were negatively impacted by $668.0 million of non-cash impairment charges attributable to the limited partners, as the market value of certain of NRP's assets were impacted by continued deterioration of the coal markets and the significant decline in oil prices.  Excluding those impairments, net income attributable to the limited partners was $8.87 per unit.  Distributable Cash Flow for the year ended December 31, 2015 declined 5% to $197.0 million and Adjusted EBITDA remained relatively flat at $292.1 million.  All references to net income or loss per unit, as well as distributions per unit, included in this release have been adjusted to give effect to the one-for-ten reverse unit split effective February 17, 2016.

NRP's results for the quarter ended December 31, 2015 included net loss attributable to the limited partners of $21.3 million, or $1.74 per unit, compared to net income attributable to the limited partners of $8.5 million, or $0.70 per unit, for the fourth quarter 2014.  Both quarters were negatively impacted by impairments, with $51.0 million recorded in 2015 versus $20.6 million in 2014.  Excluding impairments, net income attributable to the limited partners for the fourth quarter 2015 was $2.34 per unit, compared to $2.36 per unit for the fourth quarter 2014.  Distributable Cash Flow for the fourth quarter 2015 declined 18% to $39.1 million and Adjusted EBITDA declined 12% to $70.2 million.

"Although our soda ash business performed well again in the fourth quarter and we exceeded the upper end of our 2015 guidance for Adjusted EBITDA and Distributable Cash Flow, low commodity prices and challenging markets continued to pressure our coal and oil and gas businesses and, to a lesser extent, our aggregates business," said Wyatt Hogan, President and Chief Operating Officer.  "In this difficult operating environment, NRP remains steadfastly focused on deleveraging.  We believe the actions taken over the last year have better positioned the partnership to navigate this difficult commodity price period."

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 $3.50 to $0.45 per common unit, which provides approximately $150 million of additional 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 $91 million;
  • closed two regional offices and reduced NRP's coal related workforce by 15%, and implemented other steps to reduce overhead costs; and
  • sold $47.5 million of  assets in order to raise cash to help NRP stay on track to achieve its deleveraging objectives.

Effective February 17, 2016, NRP completed a 1-for-10 reverse unit split, decreasing the number of units outstanding to 12.2 million in order to ensure continued compliance with New York Stock Exchange listing standards.

At December 31, 2015, NRP had $64.8 million of liquidity, consisting of $51.8 million in cash and $13.0 million available for borrowing under its revolving credit facilities.

As a result of acquisitions that diversified its natural resource asset base, effective for the quarter ended December 31, 2015, NRP changed the organizational structure of its financial information from a single operating segment to the four operating segments described below:

1)   Coal, Hard Mineral Royalty and Other—consists primarily of coal royalty, coal related transportation and processing assets, aggregate and industrial minerals royalty assets and timber. NRP's coal reserves are primarily located in Appalachia, the Illinois Basin and the Western United States. NRP's aggregates and industrial minerals are located in a number of states across the United States.  In February, NRP sold a portion of its aggregates royalties properties for $10 million.

2)   Soda Ash—consists of the NRP's 49% non-controlling equity interest in a trona ore mining operation and soda ash refinery in the Green River Basin, Wyoming. Ciner Resources LP, NRP's operating partner, mines the trona, processes it into soda ash, and distributes the soda ash both domestically and internationally into the glass and chemicals industries. NRP receives regular quarterly distributions from this business.

3)   VantaCore—consists of NRP's construction materials business that operates hard rock quarries, sand and gravel plants, asphalt plants and two marine terminals. VantaCore operates in Pennsylvania, West Virginia, Tennessee, Kentucky and Louisiana.

4)   Oil and Gas—consists of NRP's non-operated working interests, royalty interests and overriding royalty interests in oil and natural gas properties. NRP's primary interests in oil and natural gas producing properties are non-operated working interests located in the Williston Basin in North Dakota and Montana. During 2015, NRP also owned fee mineral, royalty or overriding royalty interests in oil and gas properties in several other regions, including the Appalachian Basin, Oklahoma and Louisiana.  In February, NRP sold royalty interests in several producing properties located in the Appalachian Basin, including its overriding royalty interests in the Marcellus Shale, for $37.5 million in cash. The effective date of the sale was January 1, 2016.

Direct segment costs and certain costs incurred at a corporate level that are identifiable and that benefit NRP's segments are allocated to them. These allocated costs include costs of: taxes, legal, information technology; human resources; and shared facilities services.

In reconciling items to consolidated operating income, the Corporate and Financing segment includes functional corporate departments that do not earn revenues. Costs incurred by this segment include corporate headquarters, acquisition, financing, centralized treasury and accounting and other corporate-level activity not specifically allocated to a segment.

Business Results and Outlook

The table below presents NRP's business results by segment for the three and twelve months ended December 31, 2015 and 2014:

Operating Business Segments

Coal, Hard Mineral Royalty and Other

Corporate and Financing

Soda Ash

VantaCore

Oil and Gas

Total

(In thousands)

Three Months Ended December 31, 2015

Total revenues and other income

$

59,825

$

13,179

$

31,979

$

11,080

$

$

116,063

Operating expenses excluding impairments (1)

21,486

29,368

9,688

2,525

63,067

Asset impairments

12,821

6,218

31,914

50,953

Net income (loss)

25,518

13,179

(3,607)

(30,522)

(26,354)

(21,786)

Adjusted EBITDA (1)

48,856

12,250

5,690

5,963

(2,402)

70,357

Distributable Cash Flow (1)

47,961

12,251

2,687

3,343

(33,448)

32,794

Three Months Ended December 31, 2014

Total revenues and other income

$

60,586

$

12,551

$

42,051

$

22,085

$

$

137,273

Operating expenses excluding impairments (1)

22,247

42,019

19,777

1,595

85,638

Asset impairments

20,585

20,585

Net income (loss)

17,754

12,551

32

2,308

(24,000)

8,645

Adjusted EBITDA (1)

53,249

10,780

3,328

14,360

(1,574)

80,143

Distributable Cash Flow (1)

63,131

10,776

1,884

(1,864)

(26,231)

47,696

Year Ended December 31, 2015

Total revenues and other income

$

246,353

$

49,918

$

139,013

$

53,565

$

$

488,849

Operating expenses excluding impairments (1)

76,941

132,523

63,354

12,348

285,166

Asset impairments

307,800

6,218

367,576

681,594

Net income (loss)

(138,388)

49,918

272

(377,365)

(106,157)

(571,720)

Adjusted EBITDA (1)

204,600

46,795

22,068

30,983

(12,330)

292,116

Distributable Cash Flow (1)

212,193

43,029

18,802

24,616

(101,659)

196,981

Year Ended December 31, 2014

Total revenues and other income

$

256,719

$

41,416

$

42,051

$

59,566

$

$

399,752

Operating expenses excluding impairments (1)

86,832

42,019

45,228

10,545

184,624

Asset impairments

26,209

26,209

Net income (loss)

143,678

41,416

32

14,338

(90,634)

108,830

Adjusted EBITDA (1)

216,842

46,638

3,328

38,273

(10,449)

294,632

Distributable Cash Flow (1)

234,965

46,149

1,884

17,030

(91,662)

208,366

1.

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

 

Coal, Hard Mineral Royalty and Other

The thermal and metallurgical coal markets remained severely challenged in 2015, leading to reduced production and coal royalty revenues for NRP.  The domestic and global coal markets continue to be over-supplied due to decreased coal demand resulting from increased government regulations, low natural gas prices (coal's competing fuel) and the strength of the United States dollar that materially impacted exports in 2015. NRP expects the markets to remain challenged in 2016 with additional production cuts and mines idled, but NRP does not know to what extent its properties will be impacted.

Revenues and other income decreased $10.4 million, or 4%, from $256.7 million in 2014 to $246.4 million in 2015. This decrease is primarily related to a 3.4 million ton decrease in coal production and a $0.59 per ton decline in average coal royalty revenue per ton, resulting in a $40.2 million reduction in coal royalty revenues.  Offsetting a significant portion of this decline was $21 million in revenues for lease assignment fees as well as a $3.7 million increase in gains from condemnation sales.

Net income decreased $282.1 million, from income of $143.7 million in 2014 to a $138.4 million loss in 2015.  This decrease is primarily related to the $281.6 million increase in asset impairment expense during the year ended December 31, 2015. The impairment expense resulted from facts and circumstances that indicated that the carrying value of certain mineral rights exceeded expected future cash flows from those assets. The decrease in revenues discussed above also contributed to the decrease in net income year-over-year.  These factors were partially offset by an $8.2 million decrease in depreciation, depletion and amortization as a result of the third quarter 2015 asset impairments in addition to a $1.7 million decrease in operating expenses mainly related to lower property taxes.

Adjusted EBITDA decreased $12.2 million, or 6%, from $216.8 million in 2014 to $204.6 million in 2015.  This decrease was primarily the result of decreased revenues.

Distributable cash flow decreased $22.8 million, or 10%, from $235.0 million in 2014 to $212.2 million in 2015.  This decrease was primarily the result of lower coal royalty revenues.

Soda Ash

Revenues and other income related to our Soda Ash segment increased $8.5 million, or 21%, from $41.4 million in 2014 to $49.9 million in 2015. For the year ended December 31, 2015, we received $46.8 million in cash distributions from Ciner Wyoming and for the year ended December 31, 2014, we received $46.6 million in cash distributions.

VantaCore

VantaCore's construction aggregates mining and production business is largely dependent on the strength of the local markets that it serves and is also seasonal, with lower production and sales expected during the first quarter of each year due to winter weather. VantaCore's Laurel Aggregates operation in southwestern Pennsylvania serves producers and oilfield service companies operating in the Marcellus and Utica Shales and was impacted during 2015 by the slowing pace of exploration and development of natural gas in those areas due to low natural gas prices. Increased local construction activity partially offset these declines during 2015, but we expect that Laurel's business will continue to be impacted by decreased natural gas development activities. VantaCore's operations based in Clarksville, Tennessee and Baton Rouge, Louisiana depend on the pace of commercial and residential construction in those areas. The Clarksville operation performed above expectations during 2015, while the Baton Rouge operation volumes were lower than expected. In June 2015, VantaCore purchased a hard rock quarry operation located on the Tennessee River near Grand Rivers, Kentucky from one of NRP's aggregates lessees. This operation leases reserves from NRP and sells its produced limestone aggregates in both the local market and downstream to river-based markets.

Tonnage sold increased 5.1 million tons, or 222%, from 2.3 million tons in 2014 to 7.4 million tons in 2015.  Revenues and other income related to our VantaCore segment increased $97.0 million, or 231%, from $42.1 million in 2014 to $139.0 million in 2015. Net income increased $0.2 million from less than $0.1 million in 2014 to $0.2 million in 2015.  Adjusted EBITDA increased $18.7 million from $3.3 million in 2014 to $22.1 million in 2015.  Distributable cash flow increased $16.9 million from $1.9 million in 2014 to $18.8 million. These increases are due to the fact that 2014 results only include three months of VantaCore results as compared to a full year of results for 2015.

Oil and Gas

Global oil prices continued to decline in 2015 and remained significantly lower than the same period in 2014. Although domestic crude oil production has also started to decline, oil is being imported into storage and inventories remain above the five year average indicating continued excessive global supply. Production of crude is estimated to continue to decline as a result of reduced development drilling activities. Natural gas prices have also shown recent declines due to reduced demand and increased inventories.

Revenues and other income decreased $6.0 million, or 10%, from $59.6 million in 2014 to $53.6 million in 2015. This decrease is due to lower commodity prices during the year, partially offset by increased production.

Net income decreased $392 million from income of $14.3 million in 2014 to a loss of $377.4 million in 2015. This decrease was primarily the result of the $367.6 million impairment expense in our Oil and Gas segment. Also contributing to this reduction in income was the decreased revenue discussed above, in addition to the increase in operating and maintenance expenses and depreciation, depletion and amortization expense as a result of a full year of operating expenses related to the fourth quarter 2014 Sanish Field acquisition.

Adjusted EBITDA decreased $7.3 million, or 19%, from $38.3 million in 2014 to $31.0 million in 2015.  This decrease was primarily the result of decreased revenues and increased operating expenses year-over-year.

Distributable cash flow increased $7.6 million, or 45%, from $17.0 million in 2014 to $24.6 million in 2015.  This increase was primarily the result of increased cash flow from operations offset somewhat by higher maintenance capital expenditures.

Corporate and Financing

General and administrative costs increased $1.8 million from $10.5 million in 2014 to $12.3 million in 2015 due to additional personnel and higher outsourcing costs.   Interest expense increased $13.6 million, or 17%, from $80.2 million in 2014 to $93.8 million in 2015. This increase was primarily the result of additional debt incurred to complete acquisitions in the fourth quarter of 2014.

2016 Market Outlook

NRP expects that its aggregates business will remain relatively flat and that distributions received from its soda ash business will increase in 2016.  However, NRP expects continued deterioration in both the coal and oil and gas businesses in 2016.  Given the extreme volatility in these markets, it is difficult for NRP to anticipate how much its properties will be affected at this time.  Accordingly, NRP is not issuing any financial guidance for 2016 at this time.

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, a trona/soda ash operation, owns non-operated working interests in oil and gas properties 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 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" is a non-GAAP financial measure that represents net cash provided by operating activities, 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. Although distributable cash flow is a non-GAAP financial measure, we believe it is a useful adjunct to net cash provided by operating activities under GAAP. 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. Distributable Cash Flow may not be calculated the same for us as for other companies. A reconciliation of Distributable Cash Flow to net cash provided by operating activities is included in the tables attached to this release.

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) 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, 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 (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. Adjusted EBITDA provides no information regarding a partnership'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 a useful measure because it is widely used by financial analysts, investors and rating agencies for comparative purposes. Adjusted EBITDA is also a financial measure widely used by investors in the high-yield bond market. 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. A reconciliation of Adjusted EBITDA to net income is included in the tables attached to this release.

"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" 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 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 (Loss)

(in thousands, except per unit data)

For the Three Months Ended,

For the Year Ended

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

Revenues and other income:

Coal, hard mineral royalty and other

$

41,048

$

41,361

$

156,638

$

172,160

Coal, hard mineral royalty and other - affiliates

18,777

19,225

89,715

84,559

VantaCore

31,979

42,051

139,013

42,051

Oil and gas

11,080

22,085

53,565

59,566

Equity in earnings of Ciner Wyoming

13,179

12,551

49,918

41,416

Total revenues and other income

116,063

137,273

488,849

399,752

Operating expenses:

Operating and maintenance expenses

34,057

49,708

155,959

83,433

Operating and maintenance expenses - affiliates

8,334

4,077

16,031

10,770

Depreciation, depletion and amortization

18,152

30,258

100,828

79,876

General and administrative

1,022

821

7,036

7,287

General and administrative - affiliates

1,503

774

5,312

3,258

Asset impairments

50,953

20,585

681,594

26,209

Total operating expenses

114,021

106,223

966,760

210,833

Income (loss) from operations

2,042

31,050

(477,911)

188,919

Other income (expense)

Interest expense

(23,830)

(22,426)

(93,827)

(80,185)

Interest income

2

21

18

96

Other expense, net

(23,828)

(22,405)

(93,809)

(80,089)

Net Income (loss)

(21,786)

8,645

(571,720)

108,830

Net income (loss) attributable to partners:

Limited partners

(21,326)

8,472

(559,492)

106,653

General partner

(460)

173

(12,228)

2,177

Basic and diluted net income (loss) per common unit

$

(1.74)

$

0.70

$

(45.75)

$

9.42

Weighted average number of common units outstanding:

12,230

12,145

12,230

11,326

Net income (loss)

$

(21,786)

$

8,645

$

(571,720)

$

108,830

Add: Comprehensive income (loss) from unconsolidated investment and other

198

(187)

(1,693)

(81)

Comprehensive income (loss) attributable to NRP

$

(21,588)

$

8,458

$

(573,413)

$

108,749

 

Natural Resource Partners L.P. Financial Tables

Consolidated Statements of Cash Flow

(in thousands)

For the Three Months Ended

For the Year Ended

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

Cash flows from operating activities:

Net income (loss)

$

(21,786)

$

8,645

$

(571,720)

$

108,830

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

Asset impairment

50,953

20,585

681,594

26,209

Depreciation, depletion and amortization

18,152

30,258

100,828

79,876

Distributions from equity earnings from unconsolidated investment

12,250

10,780

46,795

43,005

Equity earnings from unconsolidated investment

(13,179)

(12,551)

(49,918)

(41,416)

Gain on reserve swap

(9,290)

(5,690)

Other, net

1,738

(200)

(1,295)

1,942

Other, net - affiliates

434

(287)

Change in operating assets and liabilities:

Accounts receivable

4,567

(3,613)

16,486

(8,685)

Accounts receivable - affiliates

586

1,053

2,630

(1,828)

Accounts payable

(1,006)

(4,070)

(3,775)

(2,408)

Accounts payable - affiliates

(1,102)

465

514

559

Accrued liabilities

(7,735)

(2,814)

(4,676)

(1,821)

Deferred revenue

1,570

2,137

7,605

2,056

Deferred revenue - affiliates

(801)

4,192

(4,200)

15,618

Accrued incentive plan expenses

(606)

180

(7,023)

(5,265)

Other items, net

(2,780)

(797)

(1,030)

(47)

Other items, net - affiliates

819

(591)

186

(180)

Net cash provided by operating activities

42,074

53,659

203,424

210,755

Cash flows from investing activities:

Acquisition of mineral rights

(4,740)

(341,991)

(40,679)

(356,026)

Acquisition of plant and equipment and other

(1,594)

(2,247)

(10,175)

(2,454)

Acquisition of aggregates business

(168,978)

(168,978)

Proceeds from sale of plant and equipment and other

18

1,001

11,024

1,006

Proceeds from sale of mineral rights

155

412

7,096

412

Return of  equity  and other unconsolidated investments

3,633

Return of long-term contract receivables - affiliate

342

994

2,463

1,904

Net cash used in investing activities

(5,819)

(510,809)

(30,271)

(520,503)

Cash flows from financing activities:

Proceeds from loans

615,471

100,000

617,471

Proceeds from loans - affiliate

19,904

19,904

Proceeds from issuance of common units

102,376

127,202

Capital contribution by general partner

2,733

3,240

Repayments of loans

(39,808)

(258,808)

(190,983)

(327,983)

Distributions to partners

(5,616)

(43,670)

(71,758)

(162,042)

Distributions to non-controlling interest

(2,744)

(974)

Debt issue costs and other

(214)

(8,906)

(5,971)

(9,507)

Net cash provided by (used in) financing activities

(45,638)

429,100

(171,456)

267,311

Net increase (decrease) in cash and cash equivalents

(9,383)

(28,050)

1,697

(42,437)

Cash and cash equivalents at beginning of period

61,156

78,126

50,076

92,513

Cash and cash equivalents at end of period

$

51,773

$

50,076

$

51,773

$

50,076

Supplemental cash flow information:

Cash paid during the period for interest

$

30,576

$

23,889

$

88,493

$

76,155

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

1,484

11,879

5,949

11,879

Units issued for acquisition of aggregates operations

31,604

 

Natural Resource Partners L.P. Financial Tables

Consolidated Balance Sheets

(in thousands)

December 31,

2015

2014

ASSETS

Current assets:

Cash and cash equivalents

$

51,773

$

50,076

Accounts receivable, net

50,167

66,455

Accounts receivable - affiliates

6,864

9,494

Inventory

7,835

5,814

Prepaid expenses and other

4,490

4,279

Total current assets

121,129

136,118

Land

25,022

25,243

Plant and equipment, net

61,239

60,093

Mineral rights, net

1,094,027

1,781,852

Intangible assets, net

56,927

60,733

Equity in unconsolidated investment

261,942

264,020

Long-term contracts receivable - affiliate

47,359

50,008

Goodwill

52,012

Other assets

15,306

14,645

Other assets - affiliate

1,124

Total assets

$

1,684,075

$

2,444,724

LIABILITIES AND CAPITAL

Current liabilities:

Accounts payable

$

8,465

$

22,465

Accounts payable - affiliates

1,464

950

Accrued liabilities

45,735

43,533

Current portion of long-term debt, net

80,983

80,983

Total current liabilities

136,647

147,931

Deferred revenue

80,812

73,207

Deferred revenue - affiliates

82,853

87,053

Long-term debt, net

1,284,083

1,374,336

Long-term debt, net - affiliate

19,930

19,904

Other non-current liabilities

6,808

22,138

Partners' capital:

Common unitholders' interest (12.2 million units outstanding)

79,094

709,019

General partner's interest

(606)

12,245

Accumulated other comprehensive loss

(2,152)

(459)

Total partners' capital

76,336

720,805

Non-controlling interest

(3,394)

(650)

Total capital

72,942

720,155

Total liabilities and capital

$

1,684,075

$

2,444,724

 

Natural Resource Partners L.P. Financial Tables

Operating Statistics - Coal, Hard Mineral Royalty and Other

(in thousands except per ton data)

For the Three Months Ended

For the Year Ended

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

(unaudited)

Coal royalty production (tons)

Appalachia

Northern

1,981

2,802

9,562

9,339

Central

3,460

4,996

16,862

20,092

Southern

803

964

3,803

3,914

Total Appalachia

6,244

8,762

30,227

33,345

Illinois Basin

2,908

3,113

11,173

13,177

Northern Powder River Basin

1,408

738

4,905

2,844

Gulf Coast

(38)

373

740

1,093

Total coal royalty production

10,522

12,986

47,045

50,459

Average royalty revenue per ton:

Appalachia

Northern

$

0.29

$

0.96

$

0.28

$

0.92

Central

3.54

4.07

3.85

4.46

Southern

4.66

5.00

4.57

5.18

Total Appalachia

2.65

3.18

2.81

3.55

Illinois Basin

3.80

4.21

3.94

4.10

Northern Powder River Basin

2.29

2.39

2.54

2.74

Gulf Coast

11.21

3.54

3.47

3.47

Combined average royalty revenue per ton

$

2.89

$

3.39

$

3.06

$

3.65

Coal royalty revenues:

Appalachia

Northern

$

567

$

2,680

$

2,672

$

8,621

Central

12,261

20,338

64,877

89,627

Southern

3,744

4,823

17,390

20,292

Total Appalachia

16,572

27,841

84,939

118,540

Illinois Basin

11,043

13,093

44,063

54,049

Northern Powder River Basin

3,224

1,763

12,443

7,804

Gulf Coast

(426)

1,320

2,570

3,793

Total coal royalty revenues

$

30,413

$

44,017

$

144,015

$

184,186

Other coal related revenues:

Override revenue

$

725

$

1,085

$

2,920

$

4,601

Transportation and processing fees

5,633

5,366

22,033

22,048

Minimums recognized as revenue

3,009

2,455

15,489

6,659

Lease assignment fees

15,000

21,000

Coal bonus related revenues

98

98

Condemnation related revenues

363

3,669

Coal reserve swap

9,290

5,690

Wheelage

1,049

776

3,166

3,442

Total other coal related revenues

$

25,779

$

9,780

$

77,567

$

42,538

Total coal related revenues and coal related revenues - affiliates

$

56,192

$

53,797

$

221,582

$

226,724

Hard mineral royalty revenues

538

2,459

8,090

12,073

Property tax revenue

2,656

2,744

11,258

13,609

Other

11

1,586

5,423

4,313

Total coal, hard mineral royalty and other revenue

$

59,397

$

60,586

$

246,353

$

256,719

 

Natural Resource Partners L.P. Financial Tables

Operating Statistics - Oil and Gas

(Revenues in thousands)

For the Three Months Ended

For the Year Ended

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

(unaudited)

Williston Basin non-operated working interests:

Production volumes:

  Oil (MBbl)

259

294

1,108

578

  Natural gas (Mcf)

209

206

810

408

  NGL (MBbl)

29

33

138

53

Total Production (MBoe)

323

361

1,381

699

Average sales price per unit

  Oil ($/Bbl)

$

37.29

$

63.38

$

41.19

$

77.85

  Natural gas ($/Mcf)

1.47

3.66

2.28

5.04

  NGL ($/Bbl)

7.79

26.42

9.20

33.64

Revenues

  Oil

$

9,659

18,635

$

45,635

44,995

  Natural gas

307

753

1,847

2,056

  NGL

226

872

1,269

1,783

  Non-production revenue

450

    Total revenues

$

10,192

$

20,260

$

49,201

$

48,834

Other oil and gas related revenues

  Royalty and overriding royalty revenues

888

1,825

$

4,364

10,732

Total oil and gas revenues

$

11,080

$

22,085

$

53,565

$

59,566

 

 

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures

Distributable Cash Flow

(in thousands)

Coal, Hard Mineral Royalty and Other

Corporate and Financing

Soda Ash

VantaCore

Oil and Gas

Total

(unaudited)

Three Months Ended December 31, 2015

Net cash provided by (used in) operating activities

$

52,498

$

12,251

$

3,822

$

6,951

$

(33,448)

$

42,074

Add: return on long-term contract receivables - affiliate

342

342

Add: proceeds from sale of PP&E

18

18

Add: proceeds from sale of mineral rights

155

155

Less: maintenance capital expenditures

(87)

(1,153)

(2,173)

(3,413)

Distributable Cash Flow

$

47,961

$

12,251

$

2,687

$

3,343

$

(33,448)

$

39,078

Three Months Ended December 31, 2014

Net cash provided by (used in) operating activities

$

61,078

$

10,776

$

2,746

$

5,290

$

(26,231)

$

53,659

Add: return on long-term contract receivables - affiliate

994

994

Add: proceeds from sale of PP&E

963

38

1,001

Add: proceeds from sale of mineral rights

412

412

Less: maintenance capital expenditures

(316)

(900)

(7,154)

(8,370)

     Distributable Cash Flow

$

63,131

$

10,776

$

1,884

$

(1,864)

$

(26,231)

$

47,696

Year Ended December 31, 2015

Net cash provided by (used in) operating activities

$

197,913

$

43,029

$

23,605

$

40,536

$

(101,659)

$

203,424

Add: return on long-term contract receivables - affiliate

2,463

2,463

Add: proceeds from sale of PP&E

10,100

924

11,024

Add: proceeds from sale of mineral rights

3,505

3,591

7,096

Less: maintenance capital expenditures

(416)

(5,727)

(18,139)

(24,282)

Less: distributions to non-controlling interest

(1,372)

(1,372)

(2,744)

     Distributable Cash Flow

$

212,193

$

43,029

$

18,802

$

24,616

$

(101,659)

$

196,981

Year Ended December 31, 2014

Net cash provided by (used in) operating activities

$

232,484

$

42,516

$

2,746

$

24,671

$

(91,662)

$

210,755

Add: return on long-term contract receivables - affiliate

1,904

1,904

Add: return of unconsolidated equity investment

3,633

3,633

Add: proceeds from sale of PP&E

968

38

1,006

Add: proceeds from sale of mineral rights

412

412

Less: maintenance capital expenditures

(316)

(900)

(7,154)

(8,370)

Less: distributions to non-controlling interest

(487)

(487)

(974)

     Distributable Cash Flow

$

234,965

$

46,149

$

1,884

$

17,030

$

(91,662)

$

208,366

 

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures

Adjusted EBITDA

(in thousands)

Coal, Hard Mineral Royalty and Other

Corporate and Financing

Soda Ash

VantaCore

Oil and Gas

Total

(unaudited)

Three Months Ended December 31, 2015

Net income (loss)

$

25,518

$

13,179

$

(3,607)

$

(30,522)

$

(26,354)

$

(21,786)

Less: equity earnings from unconsolidated investment

(13,179)

(13,179)

Add: distributions from unconsolidated investment

12,250

12,250

Add: depreciation, depletion and amortization

10,517

3,079

4,556

18,152

Add: asset impairment

12,821

6,218

31,914

50,953

Add: interest expense

23,830

23,830

Adjusted EBITDA

$

48,856

$

12,250

$

5,690

$

5,963

$

(2,402)

$

70,220

Three Months Ended December 31, 2014

Net income (loss)

$

17,754

$

12,551

$

32

$

2,308

$

(24,000)

$

8,645

Less: equity earnings from unconsolidated investment

(12,551)

(12,551)

Add: distributions from unconsolidated investment

10,780

10,780

Add: depreciation, depletion and amortization

14,910

3,296

12,052

30,258

Add: asset impairment

20,585

20,585

Add: interest expense

22,426

22,426

Adjusted EBITDA

$

53,249

$

10,780

$

3,328

$

14,360

$

(1,574)

$

80,143

Year Ended December 31, 2015

Net income (loss)

$

(138,388)

$

49,918

$

272

$

(377,365)

$

(106,157)

$

(571,720)

Less: equity earnings from unconsolidated investment

(49,918)

(49,918)

Less: gain on reserve swap

(9,290)

(9,290)

Add: distributions from unconsolidated investment

46,795

46,795

Add: depreciation, depletion and amortization

44,478

15,578

40,772

100,828

Add: asset impairment

307,800

6,218

367,576

681,594

Add: interest expense

93,827

93,827

Adjusted EBITDA

$

204,600

$

46,795

$

22,068

$

30,983

$

(12,330)

$

292,116

Year Ended December 31, 2014

Net income (loss)

$

143,678

$

41,416

$

32

$

14,338

$

(90,634)

$

108,830

Less: equity earnings from unconsolidated investment

(41,416)

(41,416)

Less: gain on reserve swap

(5,690)

(5,690)

Add: distributions from unconsolidated investment

46,638

46,638

Add: depreciation, depletion and amortization

52,645

3,296

23,935

79,876

Add: asset impairment

26,209

26,209

Add: interest expense

80,185

80,185

Adjusted EBITDA

$

216,842

$

46,638

$

3,328

$

38,273

$

(10,449)

$

294,632

 

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures

Operating Expenses Excluding Impairments

(in thousands)

Coal, Hard Mineral Royalty and Other

Corporate and Financing

Soda Ash

VantaCore

Oil and Gas

Total

(unaudited)

Three Months Ended December 31, 2015

Total operating expenses

$

34,307

$

$

35,586

$

41,602

$

2,525

$

114,020

Less: asset impairments

12,821

6,218

31,914

50,953

Operating expenses excluding impairments

$

21,486

$

$

29,368

$

9,688

$

2,525

$

63,067

Three Months Ended December 31, 2014

Total operating expenses

$

42,832

$

$

42,019

$

19,777

$

1,595

$

106,223

Less: asset impairments

20,585

20,585

Operating expenses excluding impairments

$

22,247

$

$

42,019

$

19,777

$

1,595

$

85,638

Year Ended December 31, 2015

Total operating expenses

$

384,741

$

$

138,741

$

430,930

$

12,348

$

966,760

Less: asset impairments

307,800

6,218

367,576

681,594

Operating expenses excluding impairments

$

76,941

$

$

132,523

$

63,354

$

12,348

$

285,166

Year Ended December 31, 2014

Total operating expenses

$

113,041

$

$

42,019

$

45,228

$

10,545

$

210,833

Less: asset impairments

26,209

26,209

Operating expenses excluding impairments

$

86,832

$

$

42,019

$

45,228

$

10,545

$

184,624

 

Non-cash impairment charges attributable to the limited partners

(in thousands)

For the Three Months Ended

For the Year Ended

December 31,

December 31,

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

(unaudited)

Asset impairments, as reported

$

50,953

$

20,585

$

681,594

$

26,209

Asset impairments attributable to the limited partners

49,934

20,173

667,962

25,685

Asset impairments attributable to the general partners

1,019

412

13,632

524

 

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures

Net Income and Net Income Per Unit Attributable to the Limited Partners Excluding Impairments

(in thousands)

For the Three Months Ended

For the Year Ended

December 31,

December 31,

December 31,

December 31,

2015

2014

2015

2014

(unaudited)

(unaudited)

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

$

(21,326)

$

8,472

$

(559,492)

$

106,653

Asset impairments attributable to the limited partners

49,934

20,173

667,962

25,685

Net income attributable to the limited partners excluding impairments

$

28,608

$

28,645

$

108,470

$

132,338

Weighted average number of common units outstanding:

12,230

12,145

12,230

11,326

Net income per unit attributable to the limited partners excluding impairments

$

2.34

$

2.36

$

8.87

$

11.68

 

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SOURCE Natural Resource Partners L.P.



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