HOUSTON, Nov. 4, 2014 /PRNewswire/ -- Natural Resource Partners L.P. (NYSE: NRP) today reported revenues of $91.6 million for the third quarter of 2014 compared to $82.2 million for the third quarter of 2013, and distributable cash flow, a non-GAAP measure, of $57.8 million compared to $104.6 million for the third quarter of 2013. Net income per unit was $0.32 for both the third quarter of 2014 and 2013. NRP reported EBITDA, a non-GAAP measure, of $78.3 million in the third quarter of 2014 compared to $72.9 million for the third quarter of 2013. Reconciliations of the non-GAAP measures of distributable cash flow and EBITDA are included in the tables at the end of this release.
"We continued to benefit in the third quarter from our diverse portfolio of natural resource assets," said Wyatt Hogan, President. "All of our commodities performed in line with our expectations for the quarter, and we remain on track to meet our guidance for the year. Our acquisition of the VantaCore construction aggregates business and the recently announced acquisition of oil and gas interests in the Sanish Field in the Williston Basin will even further diversify NRP and contribute to our future growth. In addition, we saw increased coal production from our properties in all of our regions in the third quarter as compared to the second quarter, which is especially impressive in light of the continuing difficult market conditions for the coal industry."
Third Quarter 2014 compared to Third Quarter 2013
|
Highlights
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
September
|
September
|
%
|
|
September
|
September
|
%
|
|
2014
|
2013
|
Change
|
|
2014
|
2013
|
Change
|
|
(in thousands except per unit and per ton)
|
|
|
(in thousands except per unit and per ton)
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Total revenues and other income
|
$ 91,609
|
$ 82,237
|
11%
|
|
$ 262,479
|
$ 263,373
|
0%
|
|
Coal production (tons)
|
13,370
|
13,476
|
-1%
|
|
37,473
|
42,203
|
-11%
|
|
Average coal royalty revenue per ton
|
$ 3.80
|
$ 3.88
|
-2%
|
|
$ 3.74
|
$ 3.91
|
-4%
|
|
Coal royalty revenues
|
$ 50,870
|
$ 52,305
|
-3%
|
|
$ 140,169
|
$ 164,957
|
-15%
|
|
Other coal related revenue
|
$ 14,323
|
$ 9,699
|
48%
|
|
$ 32,758
|
$ 42,279
|
-23%
|
|
Total coal related revenues
|
$ 65,193
|
$ 62,004
|
5%
|
|
$ 172,927
|
$ 207,236
|
-17%
|
|
Aggregates and industrial minerals related revenue(1)
|
$ 12,340
|
$ 11,027
|
12%
|
|
$ 38,479
|
$ 31,830
|
21%
|
|
Oil and gas related revenue
|
$ 9,601
|
$ 3,886
|
147%
|
|
$ 37,481
|
$ 9,742
|
285%
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
$ 36,582
|
$ 30,613
|
19%
|
|
$ 104,610
|
$ 93,889
|
11%
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
|
Net income to limited partners
|
$ 35,450
|
$ 35,403
|
0%
|
|
$ 98,181
|
$ 122,595
|
-20%
|
|
Net income per unit
|
$ 0.32
|
$ 0.32
|
0%
|
|
$ 0.89
|
$ 1.12
|
-21%
|
|
Average units outstanding
|
111,244
|
109,812
|
1%
|
|
110,504
|
109,507
|
1%
|
|
|
|
|
|
|
|
|
|
Net income before considering any impairments(2)
|
|
|
|
|
|
|
|
|
Net income to limited partners
|
35,450
|
35,403
|
0%
|
|
103,693
|
123,314
|
-16%
|
|
Net income per unit
|
$ 0.32
|
$ 0.32
|
0%
|
|
$ 0.94
|
$ 1.13
|
-17%
|
|
|
|
|
|
|
|
|
|
Distributable cash flow(2)
|
$ 57,773
|
$ 104,613
|
-45%
|
|
$ 161,644
|
$ 239,748
|
-33%
|
|
|
|
|
|
|
|
|
|
EBITDA(2)
|
$ 78,284
|
$ 72,860
|
7%
|
|
227,182
|
229,543
|
-1%
|
|
EBITDA margin(2)
|
85%
|
89%
|
-4%
|
|
87%
|
87%
|
0%
|
|
(1) Aggregates and industrial minerals include the equity and other unconsolidated investment income associated with the OCI Wyoming soda ash business.
|
|
(2) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.
|
Revenues and other income
Third quarter 2014 total revenues and other income increased 11% from the same period of 2013 due largely from NRP's diversification into other asset classes.
Average coal royalty revenue per ton decreased 3% on unchanged production resulting in a 3% reduction in coal royalty revenues in 2014 versus 2013. Gain on a reserve swap of $5.7 million more than offset reductions in total coal related revenues, resulting in an increase of $3.2 million over the third quarter 2013. Metallurgical coal accounted for 32% of NRP's coal production and 39% of its coal royalty revenues for the third quarter of 2014 compared to 35% of production and 47% of coal royalty revenues in the third quarter of 2013.
Revenues other than coal related revenues increased 31% from the third quarter of 2013 primarily due to increased oil and gas revenues and our investment in the soda ash business.
Oil and gas revenues more than doubled over the third quarter of 2013 to $9.6 million, primarily due to the revenues generated by NRP's Williston Basin properties acquired in the second half of 2013. NRP also recognized a 34% increase in the equity income associated with NRP's investment in the soda ash business due to an increase in OCI Wyoming's net income.
Operating expenses
Total operating expenses for the third quarter 2014 rose $6.0 million to $36.6 million from the third quarter 2013. The increase was mainly due to $1.7 million of additional operating expenses associated with NRP's Williston Basin oil and gas properties and a $2.5 million accrued liability relating to a payment due to a royalty owner on one of NRP's properties recorded in 2014.
Net income attributable to the limited partners
Net income attributable to the limited partners for both periods was approximately $35 million.
Distributable cash flow
Distributable cash flow decreased to $57.8 million from $104.6 million mainly due to a one-time special distribution of $44.8 million received from OCI Wyoming in 2013.
EBITDA
EBITDA for the third quarter 2014 grew $5.4 million to $78.3 million compared to EBITDA generated in the third quarter 2013 of $72.9 million.
Third Quarter 2014 compared to Second Quarter 2014
|
Highlights
|
Quarter Ended
|
|
September 2014
|
June 2014
|
% Change
|
|
(in thousands, except per ton and per unit)
|
|
|
Revenues and other income
|
|
|
|
|
Total revenues and other income
|
$ 91,609
|
$ 90,561
|
1%
|
|
Coal production (tons)
|
13,370
|
11,851
|
13%
|
|
Average coal royalty revenue per ton
|
$ 3.80
|
$ 3.86
|
-1%
|
|
Coal royalty revenues
|
$ 50,870
|
$ 45,763
|
11%
|
|
Other coal related revenue
|
$ 14,323
|
$ 9,598
|
49%
|
|
Total coal related revenue
|
$ 65,193
|
$ 55,361
|
18%
|
|
Aggregates and industrial minerals related revenue(1)
|
$ 12,340
|
$ 12,964
|
-5%
|
|
Oil and gas related revenue
|
$ 9,601
|
$ 17,822
|
-46%
|
|
|
|
|
|
Operating expenses
|
$ 36,582
|
$ 40,158
|
-9%
|
|
|
|
|
|
Net income
|
|
|
|
|
Net income to limited partners
|
$ 35,450
|
$ 30,779
|
15%
|
|
Net income to the limited partners, before considering any impairments(2)
|
$ 35,450
|
$ 36,290
|
-2%
|
|
Net income per unit
|
$ 0.32
|
$ 0.28
|
14%
|
|
Net income per unit, before considering any impairments(2)
|
$ 0.32
|
$ 0.33
|
-3%
|
|
Average units outstanding
|
111,244
|
110,403
|
1%
|
|
|
|
|
|
Distributable cash flow(2)
|
$ 57,773
|
$ 64,944
|
-11%
|
|
|
|
|
|
EBITDA(2)
|
$ 78,284
|
$ 77,178
|
1%
|
|
EBITDA margin(2)
|
85%
|
85%
|
0%
|
|
(1) Aggregates and industrial minerals include the equity and other unconsolidated investment income associated with the OCI Wyoming soda ash business.
|
|
(2) See "Non-GAAP Financial Measures" and reconciliation tables at the end of the release.
|
Revenues and other income
Total revenues and other income for the third quarter increased $1.0 million or 1% from the second quarter, predominantly due to a $9.8 million increase in coal related revenues, offset by an $8.2 million decrease in oil and gas revenues. In the third quarter, NRP realized increased coal royalty revenues due to increased tonnage of 1.6 million tons over the second quarter resulting in a $5.1 million increase in coal royalty revenues. In addition, NRP realized a $5.7 million gain on a reserve swap related to coal properties. Oil and gas declined $8.2 million due to higher volumes and revenues recorded in the second quarter. These large fluctuations in oil and gas volumes and revenues are expected to moderate on a percentage basis following the acquisition of the additional Williston Basin assets that are scheduled to close in mid-November.
Operating expenses
Operating expenses decreased $3.6 million from the second quarter predominantly due to a $5.6 million asset impairment recognized in the second quarter, partially offset by a $2.5 million accrued liability associated with a payment due to a royalty owner on one of NRP's properties recorded in the third quarter.
Net income attributable to the limited partners
Net income attributable to the limited partners and net income per unit increased in the third quarter from the previous quarter by $4.7 million and $0.04 per unit, respectively. Before considering the non-cash impairment charge taken in the second quarter, net income attributable to the limited partners would have decreased by $0.8 million to $35.5 million while net income per unit would have decreased by $0.01 to $0.32 per unit.
Distributable cash flow
Distributable cash flow decreased $7.2 million to $57.8 million, down from $64.9 million reported in the second quarter due in part to a non-recurring distribution of $3.6 million received from OCI Wyoming in the second quarter as part of the completion of a restructuring that began in 2013.
EBITDA
EBITDA for the third quarter 2014 increased modestly over the second quarter to $78.3 million due to increased revenues.
Acquisitions and Liquidity
During the third quarter of 2014, NRP reduced its debt by $15.7 million bringing the total net reduction for the first nine months of the year to $69.2 million. Following the end of the quarter, NRP closed the VantaCore acquisition, issuing 2,426,690 common units and borrowing $169 million on NRP Operating's revolving credit facility. In addition, on October 6, NRP announced a definitive agreement to purchase certain non-operated working interests in the Williston Basin for $340 million. This acquisition is expected to close mid-November. In anticipation of this closing, NRP completed a common equity offering, issuing 8.5 million common units for net proceeds of $100.4 million and issued an additional $125 million of its 9.125% senior notes due 2018 in a private offering for net proceeds of $122.1 million. NRP anticipates funding the remainder of the purchase price using additional borrowings under the expected upsized NRP Oil and Gas revolving credit facility. Following these transactions, the current units outstanding are 122,278,412.
"After closing the VantaCore acquisition in October, and upon completion of the acquisition of the non-operated working interests in the Williston Basin, we anticipate combined borrowing capacity of approximately $145 million," said Dwight Dunlap, Chief Financial Officer. "That capacity along with our cash balance of $78 million as of September 30, 2014 will provide ample liquidity for NRP."
Distributions
As reported on October 20, 2014, the Board of Directors of NRP's general partner declared a quarterly distribution of $0.35 per unit for the third quarter 2014.
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 OCI 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" represents cash flow from operations plus any proceeds from the sale of assets plus the return on direct financing lease and contractual overrides shown in the cash flows from investing activities section of the cash flow statement. 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.
"EBITDA" is a non-GAAP financial measure that we define as earnings before interest, taxes, depreciation, depletion and amortization and asset impairment, including interest, taxes, depreciation, depletion and amortization relating to OCI Wyoming. "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. 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. EBITDA provides no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. 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 EBITDA is useful in evaluating our financial performance because this measure is widely used by analysts and investors for comparative purposes. EBITDA is a financial measure widely used by investors in the high-yield bond market. There are significant limitations to using 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 EBITDA reported by different companies.
"EBITDA margin" represents NRP's EBITDA as a percentage of total revenues and other income.
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, decreases in demand for coal, oil and gas, and aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; changes in the legislative or regulatory environment, risks relating to recent acquisitions 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.
|
|
Operating Statistics - Coal Related Revenue
|
|
(in thousands except per ton data)
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
|
|
|
|
September
|
|
September
|
|
September
|
|
September
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Statistics
|
|
|
|
|
|
|
|
|
|
Coal royalty production (tons):
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
|
|
|
Northern
|
|
2,060
|
|
2,779
|
|
6,537
|
|
10,051
|
|
|
Central
|
|
5,432
|
|
5,116
|
|
15,096
|
|
16,062
|
|
|
Southern
|
|
1,017
|
|
921
|
|
2,950
|
|
3,188
|
|
|
|
Total Appalachia
|
|
8,509
|
|
8,816
|
|
24,583
|
|
29,301
|
|
Illinois Basin
|
|
3,526
|
|
3,635
|
|
10,064
|
|
9,541
|
|
Northern Powder River Basin
|
|
1,054
|
|
735
|
|
2,106
|
|
2,499
|
|
Gulf Coast
|
|
281
|
|
290
|
|
720
|
|
862
|
|
Total
|
|
|
|
13,370
|
|
13,476
|
|
37,473
|
|
42,203
|
|
Average royalty revenue per ton:
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
|
|
|
Northern
|
|
$ 0.90
|
|
$ 1.04
|
|
$ 0.91
|
|
$ 1.19
|
|
|
Central
|
|
4.69
|
|
4.94
|
|
4.59
|
|
5.10
|
|
|
Southern
|
|
5.04
|
|
6.05
|
|
5.24
|
|
6.47
|
|
|
|
Total Appalachia
|
|
3.81
|
|
3.83
|
|
3.69
|
|
3.91
|
|
Illinois Basin
|
|
4.08
|
|
4.23
|
|
4.07
|
|
4.28
|
|
Northern Powder River Basin
|
|
2.91
|
|
3.10
|
|
2.87
|
|
2.68
|
|
Gulf Coast
|
|
3.40
|
|
3.24
|
|
3.43
|
|
3.36
|
|
Combined average royalty revenue per ton
|
|
$ 3.80
|
|
$ 3.88
|
|
$ 3.74
|
|
$ 3.91
|
|
Coal royalty revenues:
|
|
|
|
|
|
|
|
|
|
Appalachia
|
|
|
|
|
|
|
|
|
|
|
Northern
|
|
$ 1,844
|
|
$ 2,882
|
|
$ 5,941
|
|
$ 12,008
|
|
|
Central
|
|
25,470
|
|
25,270
|
|
69,289
|
|
81,861
|
|
|
Southern
|
|
5,130
|
|
5,571
|
|
15,469
|
|
20,623
|
|
|
|
Total Appalachia
|
|
$ 32,444
|
|
$ 33,723
|
|
$ 90,699
|
|
$ 114,492
|
|
Illinois Basin
|
|
14,403
|
|
15,364
|
|
40,956
|
|
40,864
|
|
Northern Powder River Basin
|
|
3,069
|
|
2,279
|
|
6,041
|
|
6,703
|
|
Gulf Coast
|
|
954
|
|
939
|
|
2,473
|
|
2,898
|
|
Total coal royalty revenues
|
|
$ 50,870
|
|
$ 52,305
|
|
$ 140,169
|
|
$ 164,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other coal related revenues:
|
|
|
|
|
|
|
|
|
|
Override revenue
|
|
771
|
|
2,269
|
|
3,516
|
|
8,713
|
|
Transportation and processing fees
|
|
5,589
|
|
6,005
|
|
16,682
|
|
17,010
|
|
Minimums recognized as revenue
|
|
1,396
|
|
626
|
|
4,204
|
|
5,613
|
|
Reserve swap
|
|
5,690
|
|
-
|
|
5,690
|
|
8,149
|
|
Wheelage
|
|
877
|
|
799
|
|
2,666
|
|
2,794
|
|
|
Total other coal related revenues
|
|
$ 14,323
|
|
$ 9,699
|
|
$ 32,758
|
|
$ 42,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total coal related revenues
|
|
$ 65,193
|
|
$ 62,004
|
|
$ 172,927
|
|
$ 207,236
|
|
Natural Resource Partners L.P.
|
|
Operating Statistics - Aggregates and Industrial Minerals
|
|
(in thousands except per ton data)
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
September
|
|
September
|
|
September
|
|
September
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Aggregate royalty revenues and production
|
|
|
|
|
|
|
|
|
Tonnage
|
702
|
|
1,767
|
|
2,844
|
|
4,513
|
|
Average royalty per ton
|
$ 0.79
|
|
$ 1.13
|
|
$ 0.94
|
|
$ 1.17
|
|
Total aggregate royalty revenues
|
$ 553
|
|
$ 1,996
|
|
$ 2,678
|
|
$ 5,299
|
|
|
|
|
|
|
|
|
|
Other aggregate related revenue
|
|
|
|
|
|
|
|
|
Override revenue
|
$ 1,708
|
|
$ 658
|
|
$ 3,908
|
|
$ 2,298
|
|
Bonus revenue
|
-
|
|
570
|
|
562
|
|
570
|
|
Processing fees
|
142
|
|
114
|
|
448
|
|
375
|
|
Minimums recognized as revenue
|
110
|
|
372
|
|
1,617
|
|
812
|
|
Wheelage
|
142
|
|
79
|
|
401
|
|
308
|
|
Total other aggregate related revenue
|
$ 2,102
|
|
$ 1,793
|
|
$ 6,936
|
|
$ 4,363
|
|
|
|
|
|
|
|
|
|
Total aggregate related revenues
|
$ 2,655
|
|
$ 3,789
|
|
$ 9,614
|
|
$ 9,662
|
|
|
|
|
|
|
|
|
|
Equity and other unconsolidated investment earnings
|
$ 9,685
|
|
$ 7,238
|
|
$ 28,865
|
|
$ 22,168
|
|
|
|
|
|
|
|
|
|
Total aggregates and industrial minerals related revenue
|
$ 12,340
|
|
$ 11,027
|
|
$ 38,479
|
|
$ 31,830
|
|
|
|
|
|
|
|
|
|
Cash distributions received from OCI Wyoming
|
$ 10,290
|
|
$ 46,007
|
|
$ 35,858
|
|
$ 72,946
|
|
Natural Resource Partners L.P.
|
|
Operating Statistics - Oil and Gas
|
|
(in thousands except per unit data)
|
|
Quarter Ended
|
|
Nine Months Ended
|
|
September
|
|
September
|
|
September
|
|
September
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
Williston Basin non-operated working interests
|
|
|
|
|
|
|
|
|
Production volumes
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
77
|
|
N/A
|
|
284
|
|
N/A
|
|
Natural gas (Mcf)
|
90
|
|
N/A
|
|
202
|
|
N/A
|
|
NGL (MBoe)
|
8
|
|
N/A
|
|
20
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Average sales price per unit
|
|
|
|
|
|
|
|
|
Oil ($/Bbl)
|
$ 84.65
|
|
N/A
|
|
$ 92.82
|
|
N/A
|
|
Natural gas ($/Mcf)
|
$ 5.11
|
|
N/A
|
|
$ 6.45
|
|
N/A
|
|
NGL ($/Boe)
|
$ 41.00
|
|
N/A
|
|
$ 45.55
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Oil
|
$ 6,518
|
|
N/A
|
|
$ 26,360
|
|
N/A
|
|
Natural gas
|
$ 460
|
|
N/A
|
|
$ 1,303
|
|
N/A
|
|
NGL
|
$ 328
|
|
N/A
|
|
$ 911
|
|
N/A
|
|
Total
|
$ 7,306
|
|
N/A
|
|
$ 28,574
|
|
N/A
|
|
|
|
|
|
|
|
|
|
Other oil and gas related revenues
|
|
|
|
|
|
|
|
|
Royalty and overriding revenues
|
$ 2,295
|
|
$ 3,886
|
|
$ 8,907
|
|
$ 9,742
|
|
|
|
|
|
|
|
|
|
Total oil and gas revenues
|
$ 9,601
|
|
$ 3,886
|
|
$ 37,481
|
|
$ 9,742
|
|
Natural Resource Partners L.P.
|
|
Consolidated Statements of Comprehensive Income
|
|
(in thousands, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
|
|
|
September
|
|
September
|
|
September
|
|
September
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other income:
|
|
|
|
|
|
|
|
|
|
Coal related revenues
|
|
$ 65,193
|
|
$ 62,004
|
|
$ 172,927
|
|
$ 207,236
|
|
Aggregate related revenues
|
|
2,655
|
|
3,789
|
|
9,614
|
|
9,662
|
|
Oil and gas related revenues
|
|
9,601
|
|
3,886
|
|
37,481
|
|
9,742
|
|
Equity and other unconsolidated investment income
|
|
9,685
|
|
7,238
|
|
28,865
|
|
22,168
|
|
Property taxes
|
|
3,520
|
|
4,009
|
|
10,865
|
|
11,805
|
|
Other
|
|
955
|
|
1,311
|
|
2,727
|
|
2,760
|
|
|
Total revenues and other income
|
|
91,609
|
|
82,237
|
|
262,479
|
|
263,373
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
18,621
|
|
17,852
|
|
49,618
|
|
50,025
|
|
Asset impairments
|
|
-
|
|
-
|
|
5,624
|
|
734
|
|
General and administrative
|
|
7,664
|
|
7,305
|
|
22,550
|
|
27,769
|
|
Property, franchise and other taxes
|
|
4,767
|
|
4,234
|
|
15,836
|
|
12,810
|
|
Oil and gas lease operating expenses
|
|
2,147
|
|
483
|
|
6,359
|
|
483
|
|
Transportation costs
|
|
354
|
|
455
|
|
1,238
|
|
1,242
|
|
Royalty payments
|
|
3,029
|
|
284
|
|
3,385
|
|
826
|
|
|
Total operating expenses
|
|
36,582
|
|
30,613
|
|
104,610
|
|
93,889
|
|
Income from operations
|
|
55,027
|
|
51,624
|
|
157,869
|
|
169,484
|
|
Other income (expense)
|
|
|
|
|
|
|
|
-
|
|
Interest expense
|
|
(18,862)
|
|
(15,516)
|
|
(57,759)
|
|
(44,619)
|
|
Interest income
|
|
8
|
|
18
|
|
75
|
|
232
|
|
Income before non-controlling interest
|
|
$ 36,173
|
|
$ 36,126
|
|
$ 100,185
|
|
$ 125,097
|
|
Non-controlling interest
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net income
|
|
$ 36,173
|
|
$ 36,126
|
|
$ 100,185
|
|
$ 125,097
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
General partner
|
|
$ 723
|
|
$ 723
|
|
$ 2,004
|
|
$ 2,502
|
|
Limited partners
|
|
$ 35,450
|
|
$ 35,403
|
|
$ 98,181
|
|
$ 122,595
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per limited partner unit:
|
|
$ 0.32
|
|
$ 0.32
|
|
$ 0.89
|
|
$ 1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of units outstanding:
|
|
111,244
|
|
109,812
|
|
110,504
|
|
109,507
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
$ 36,543
|
|
$ 36,167
|
|
$ 100,291
|
|
$ 125,243
|
|
Natural Resource Partners L.P.
|
|
Consolidated Statements of Cash Flow
|
|
(in thousands, except per unit data)
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
|
|
|
|
September
|
|
September
|
|
September
|
|
September
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 36,173
|
|
$ 36,126
|
|
$ 100,185
|
|
$ 125,097
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
18,621
|
|
17,852
|
|
49,618
|
|
50,025
|
|
|
Gain on reserve swap
|
|
(5,690)
|
|
-
|
|
(5,690)
|
|
(8,149)
|
|
|
Equity and other unconsolidated investment income
|
|
(9,685)
|
|
(7,238)
|
|
(28,865)
|
|
(22,168)
|
|
|
Distributions of earnings from unconsolidated investments
|
|
10,290
|
|
7,951
|
|
32,225
|
|
24,113
|
|
|
Non-cash interest charge, net
|
|
677
|
|
899
|
|
2,145
|
|
1,454
|
|
|
Gain on sale of assets
|
|
(3)
|
|
(401)
|
|
(3)
|
|
(551)
|
|
|
Asset impairment
|
|
-
|
|
-
|
|
5,624
|
|
734
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(3,857)
|
|
5,227
|
|
(7,542)
|
|
9,477
|
|
|
Other assets
|
|
432
|
|
3,849
|
|
750
|
|
864
|
|
|
Accounts payable and accrued liabilities
|
|
2,036
|
|
571
|
|
1,623
|
|
792
|
|
|
Accrued interest
|
|
4,964
|
|
(2,022)
|
|
3,192
|
|
(2,598)
|
|
|
Deferred revenue
|
|
4,246
|
|
3,380
|
|
11,345
|
|
13,331
|
|
|
Accrued incentive plan expenses
|
|
471
|
|
1,139
|
|
(5,445)
|
|
(80)
|
|
|
Property, franchise and other taxes payable
|
|
(1,217)
|
|
(1,467)
|
|
(2,066)
|
|
(2,826)
|
|
|
|
Net cash provided by operating activities:
|
|
57,458
|
|
65,866
|
|
157,096
|
|
189,515
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
Acquisition of plant and equipment
|
|
(72)
|
|
-
|
|
(207)
|
|
-
|
|
|
Acquisition of land, coal, other mineral rights, and related intangibles
|
|
-
|
|
(38,303)
|
|
(768)
|
|
(38,303)
|
|
|
Oil and gas capital expenditures
|
|
(5,144)
|
|
-
|
|
(13,267)
|
|
-
|
|
|
Acquisition of equity interests
|
|
-
|
|
(98)
|
|
-
|
|
(293,077)
|
|
|
Distributions from unconsolidated investments
|
|
-
|
|
38,056
|
|
3,633
|
|
48,833
|
|
|
Proceeds from sale of assets
|
|
5
|
|
405
|
|
5
|
|
559
|
|
|
Return on direct financing lease and contractual override
|
|
310
|
|
286
|
|
910
|
|
841
|
|
|
|
Net cash used in investing activities
|
|
(4,901)
|
|
346
|
|
(9,694)
|
|
(281,147)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from loans
|
|
-
|
|
304,020
|
|
2,000
|
|
547,020
|
|
|
Repayment of loans
|
|
(15,692)
|
|
(306,692)
|
|
(69,175)
|
|
(386,230)
|
|
|
Deferred financing costs
|
|
-
|
|
(7,440)
|
|
-
|
|
(9,061)
|
|
|
Proceeds from issuance of common units
|
|
10,984
|
|
-
|
|
24,826
|
|
75,000
|
|
|
Capital contribution by general partner
|
|
160
|
|
-
|
|
507
|
|
1,531
|
|
|
Costs associated with equity transactions
|
|
(163)
|
|
-
|
|
(601)
|
|
(60)
|
|
|
Distributions to partners
|
|
(39,733)
|
|
(61,629)
|
|
(119,346)
|
|
(186,317)
|
|
|
|
Net cash provided by (used in) financing activities
|
|
(44,444)
|
|
(71,741)
|
|
(161,789)
|
|
41,883
|
|
Net increase (decrease) in cash and cash equivalents
|
|
8,113
|
|
(5,529)
|
|
(14,387)
|
|
(49,749)
|
|
Cash and cash equivalents at beginning of period
|
|
70,013
|
|
105,204
|
|
92,513
|
|
149,424
|
|
Cash and cash equivalents at end of period
|
|
$ 78,126
|
|
$ 99,675
|
|
$ 78,126
|
|
$ 99,675
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest
|
|
$ 13,131
|
|
$ 16,631
|
|
$ 52,266
|
|
$ 45,716
|
|
Natural Resource Partners L.P.
|
|
Consolidated Balance Sheets
|
|
(in thousands, except for unit information)
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
September
|
|
December 31,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$ 78,126
|
|
$ 92,513
|
|
Accounts receivable, net of allowance for doubtful accounts
|
|
33,954
|
|
33,737
|
|
Accounts receivable - affiliates
|
|
|
|
10,547
|
|
7,666
|
|
Other
|
|
|
|
|
|
899
|
|
1,691
|
|
|
Total current assets
|
|
|
|
|
123,526
|
|
135,607
|
|
Land
|
|
|
|
|
|
|
24,338
|
|
24,340
|
|
Plant and equipment, net
|
|
|
|
|
22,839
|
|
26,435
|
|
Mineral rights, net
|
|
|
|
|
1,385,919
|
|
1,405,455
|
|
Intangible assets, net
|
|
|
|
|
58,696
|
|
66,950
|
|
Equity and other unconsolidated investments
|
|
|
|
262,414
|
|
269,338
|
|
Loan financing costs, net
|
|
|
|
|
9,841
|
|
11,502
|
|
Long-term contracts receivable - affiliate
|
|
|
|
50,411
|
|
51,732
|
|
Other assets
|
|
|
|
|
560
|
|
497
|
|
|
Total assets
|
|
|
|
|
$ 1,938,544
|
|
$ 1,991,856
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND PARTNERS' CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
$ 13,907
|
|
$ 8,659
|
|
Accounts payable - affiliates
|
|
|
|
|
485
|
|
391
|
|
Current portion of long-term debt
|
|
|
|
80,983
|
|
80,983
|
|
Accrued incentive plan expenses - current portion
|
|
|
6,535
|
|
8,341
|
|
Property, franchise and other taxes payable
|
|
|
5,764
|
|
7,830
|
|
Accrued interest
|
|
|
|
|
20,376
|
|
17,184
|
|
|
Total current liabilities
|
|
|
|
|
128,050
|
|
123,388
|
|
Deferred revenue
|
|
|
|
|
153,931
|
|
142,586
|
|
Accrued incentive plan expenses
|
|
|
|
|
6,887
|
|
10,526
|
|
Other non-current liabilities
|
|
|
|
|
9,712
|
|
14,341
|
|
Long-term debt
|
|
|
|
|
1,017,498
|
|
1,084,226
|
|
Partners' capital:
|
|
|
|
|
|
|
|
|
Common units outstanding ( 111,351,722 and 109,812,408)
|
|
613,176
|
|
606,774
|
|
General partner's interest
|
|
|
|
|
10,212
|
|
10,069
|
|
Non-controlling interest
|
|
|
|
|
(650)
|
|
324
|
|
Accumulated other comprehensive loss
|
|
|
|
(272)
|
|
(378)
|
|
|
Total partners' capital
|
|
|
|
|
622,466
|
|
616,789
|
|
|
Total liabilities and partners' capital
|
|
|
|
$ 1,938,544
|
|
$ 1,991,856
|
|
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"
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
|
September
|
|
September
|
|
September
|
|
September
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$ 57,458
|
|
$ 65,866
|
|
$ 157,096
|
|
$ 189,515
|
|
Return on direct financing lease and contractual override
|
|
310
|
|
286
|
|
910
|
|
841
|
|
Distributions from unconsolidated investments
|
|
-
|
|
38,056
|
|
3,633
|
|
48,833
|
|
Proceeds from sale of assets
|
|
5
|
|
405
|
|
5
|
|
559
|
|
Distributable cash flow
|
|
$ 57,773
|
|
$ 104,613
|
|
$ 161,644
|
|
$ 239,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "Net cash provided by operating activities"
|
|
to Non-GAAP "Distributable cash flow"
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
September
|
|
June
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
$ 57,458
|
|
$ 61,008
|
|
|
|
|
|
Return on direct financing lease and contractual override
|
|
310
|
|
303
|
|
|
|
|
|
Distributions from unconsolidated investments
|
|
-
|
|
3,633
|
|
|
|
|
|
Proceeds from sale of assets
|
|
5
|
|
-
|
|
|
|
|
|
Distributable cash flow
|
|
$ 57,773
|
|
$ 64,944
|
|
|
|
|
|
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 "EBITDA"
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
|
September
|
|
September
|
|
September
|
|
September
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 36,173
|
|
$ 36,126
|
|
$ 100,185
|
|
$ 125,097
|
|
Add depreciation, depletion and amortization
|
|
18,621
|
|
17,852
|
|
49,618
|
|
50,025
|
|
Add asset impairments
|
|
-
|
|
-
|
|
5,624
|
|
734
|
|
Add interest expense, gross
|
|
18,862
|
|
15,516
|
|
57,759
|
|
44,619
|
|
Add depreciation, depletion and amortization, taxes and interest relating to OCI Wyoming
|
|
4,628
|
|
3,366
|
|
13,996
|
|
9,068
|
|
EBITDA
|
|
$ 78,284
|
|
$ 72,860
|
|
$ 227,182
|
|
$ 229,543
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$ 78,284
|
|
$ 72,860
|
|
$ 227,182
|
|
$ 229,543
|
|
Total revenues
|
|
$ 91,609
|
|
$ 82,237
|
|
$ 262,479
|
|
$ 263,373
|
|
EBITDA margin
|
|
85%
|
|
89%
|
|
87%
|
|
87%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "Net income"
|
|
to Non-GAAP "EBITDA"
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
September
|
|
June
|
|
|
|
|
|
|
2014
|
|
2014
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 36,173
|
|
$ 31,407
|
|
|
|
|
|
Add depreciation, depletion and amortization
|
|
18,621
|
|
16,350
|
|
|
|
|
|
Add asset impairments
|
|
-
|
|
5,624
|
|
|
|
|
|
Add interest expense, gross
|
|
18,862
|
|
19,037
|
|
|
|
|
|
Add depreciation, depletion and amortization, taxes and interest relating to OCI Wyoming
|
|
4,628
|
|
4,760
|
|
|
|
|
|
EBITDA
|
|
$ 78,284
|
|
$ 77,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$ 78,284
|
|
$ 77,178
|
|
|
|
|
|
Total revenues
|
|
$ 91,609
|
|
$ 90,561
|
|
|
|
|
|
EBITDA margin
|
|
85%
|
|
85%
|
|
|
|
|
|
Reconciliation of GAAP "Total operating costs and expenses"
|
|
to Non-GAAP "Total operating expenses before considering any impairments"
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
September
|
|
September
|
|
September
|
|
September
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Total operating expenses as reported
|
$ 36,582
|
|
$ 30,613
|
|
$ 104,610
|
|
$ 93,889
|
|
Impairments
|
$ -
|
|
$ -
|
|
$ (5,624)
|
|
$ (734)
|
|
Total operating costs before considering any impairments
|
$ 36,582
|
|
$ 30,613
|
|
$ 98,986
|
|
$ 93,155
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "Net income attributable to the limited partners"
|
|
to Non-GAAP "Net income attributable to the limited partners before considering any impairments"
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
September
|
|
September
|
|
September
|
|
September
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
Net income attributable to the limited partners
|
|
|
|
|
|
|
|
|
Net income as reported
|
$ 36,173
|
|
$ 36,126
|
|
$ 100,185
|
|
$ 125,097
|
|
Impairments
|
-
|
|
-
|
|
$ 5,624
|
|
$ 734
|
|
Net income before considering any impairments
|
$ 36,173
|
|
$ 36,126
|
|
$ 105,809
|
|
$ 125,831
|
|
Net income, before considering any impairments, attributable to:
|
|
|
|
|
|
|
|
|
General partner
|
$ 723
|
|
$ 723
|
|
$ 2,116
|
|
$ 2,517
|
|
Limited partners
|
$ 35,450
|
|
$ 35,403
|
|
$ 103,693
|
|
$ 123,314
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP "Basic and diluted net income per unit"
|
|
to Non-GAAP "Net income per unit before considering any impairments"
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
For the Nine Months Ended
|
|
September
|
|
September
|
|
September
|
|
September
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
(unaudited)
|
|
Net income per unit
|
|
|
|
|
*
|
|
|
|
Net income per unit as reported
|
$ 0.32
|
|
$ 0.32
|
|
$ 0.89
|
|
$ 1.12
|
|
Adjustment for impairments
|
-
|
|
-
|
|
$ 0.05
|
|
$ 0.01
|
|
Net income per limited partner unit, before considering any impairments
|
$ 0.32
|
|
$ 0.32
|
|
$ 0.94
|
|
$ 1.13
|
|
|
|
|
|
|
|
|
|
Weighted number of units outstanding
|
111,244
|
|
109,812
|
|
110,504
|
|
109,507
|
|
|
|
|
|
|
|
|
|
* Numbers may not add due to rounding
|
|
|
|
|
|
|
|
Reconciliation of GAAP "Total operating costs and expenses"
|
|
to Non-GAAP "Total operating expenses before considering any impairments"
|
|
|
|
|
|
Quarter Ended
|
|
September
|
|
June
|
|
2014
|
|
2014
|
|
(unaudited)
|
|
Operating expenses
|
|
|
|
|
Total operating expenses as reported
|
$ 36,582
|
|
$ 40,158
|
|
Impairments
|
-
|
|
(5,624)
|
|
Total operating costs before considering any impairments
|
$ 36,582
|
|
$ 34,534
|
|
|
|
|
|
Reconciliation of GAAP "Net income attributable to the limited partners"
|
|
to Non-GAAP "Net income attributable to the limited partners before considering any impairments"
|
|
Quarter Ended
|
|
September
|
|
June
|
|
2014
|
|
2014
|
|
(unaudited)
|
|
Net income attributable to the limited partners
|
|
|
|
|
Net income as reported
|
$ 36,173
|
|
$ 31,407
|
|
Impairments
|
-
|
|
5,624
|
|
Net income before considering any impairments
|
$ 36,173
|
|
$ 37,031
|
|
Net income, before considering any impairments, attributable to:
|
|
|
|
|
General partner
|
$ 723
|
|
$ 741
|
|
Limited partners
|
$ 35,450
|
|
$ 36,290
|
|
|
|
|
|
Reconciliation of GAAP "Basic and diluted net income per unit"
|
|
to Non-GAAP "Net income per unit before considering any impairments"
|
|
Quarter Ended
|
|
September
|
|
June
|
|
2014
|
|
2014
|
|
(unaudited)
|
|
Net income per unit
|
|
|
|
|
Net income per unit as reported
|
$ 0.32
|
|
$ 0.28
|
|
Adjustment for impairments
|
-
|
|
0.05
|
|
Net income per limited partner unit, before considering any impairments
|
$ 0.32
|
|
$ 0.33
|
|
|
|
|
|
Weighted number of units outstanding
|
111,244
|
|
110,403
|
|
|
|
|
|
* Numbers may not add due to rounding
|
|
|
|
Logo - http://photos.prnewswire.com/prnh/20060109/NRPLOGO
SOURCE Natural Resource Partners L.P.