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

Nov 05, 2015, 08:00 ET from Natural Resource Partners L.P.

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.

"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

 

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SOURCE Natural Resource Partners L.P.



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