Exhibit 99.1
Natural Resource Partners L.P.
1201 Louisiana St., Suite 3400, Houston, TX 77002
NEWS RELEASE
Natural Resource Partners L.P.
Announces 2016 Fourth Quarter and Full Year Results and
Completion of Recapitalization Transactions
2016 Highlights
| • | Net income from continuing operations attributable to the limited partners of $93.6 million, or $7.65 per unit |
| • | Net cash provided by operating activities of continuing operations of $100.6 million |
| • | Adjusted EBITDA of $255.5 million |
Fourth Quarter 2016 Highlights
| • | Net income from continuing operations attributable to the limited partners of $3.8 million, or $0.31 per unit |
| • | Net cash provided by operating activities of continuing operations of $26.1 million |
| • | Adjusted EBITDA of $51.1 million |
Closing of Recapitalization Transactions on March 2, 2017
| • | $250 million preferred unit investment |
| • | Extended 2018 debt maturities |
| • | Substantial near-term debt reduction |
HOUSTON, March 6, 2017 - Natural Resource Partners L.P. (NYSE:NRP) today reported net income from continuing operations attributable to the limited partners for the year ended December 31, 2016 of $93.6 million, or $7.65 per unit, an increase of $347.8 million from a loss of $254.2 million, or $(20.78) per unit, a year earlier. Net cash provided by operating activities from continuing operations was $100.6 million for the year ended December 31, 2016, a decrease of $67.9 million compared to the prior year. Adjusted EBITDA, a non-GAAP measure, was $255.5 million for the year ended December 31, 2016, a decrease of $7.1 million compared to the same period in 2015. Excluding impairments and gains on sales of assets in both years, net income from continuing operations attributable to the limited partners was $81.7 million for the year ended December 31, 2016 compared to $115.9 million for the year ended December 31, 2015. Reconciliations for all non-GAAP items are shown in tables at the end of the release.
NRP reported net income from continuing operations attributable to the limited partners for the quarter ended December 31, 2016 of $3.8 million, or $0.31 per unit, a $5.8 million decrease from the $9.6 million, or $0.79 per unit reported for the fourth quarter 2015. This decline is primarily attributed to coal lease assignment fees of $15 million that were reported in the fourth quarter of 2015. Net cash provided by operating activities from continuing operations was $26.1 million in the fourth quarter of 2016 compared to $36.3 million for the fourth quarter of 2015. Adjusted EBITDA for the fourth quarter of 2016 was $51.1 million compared to $64.6 million in the same quarter 2015. Excluding impairments and gains on sale of assets in both fourth quarters, net income from continuing operations attributable to the limited partners was $11.1 million for the quarter ended December 31, 2016 compared to $28.3 million for the quarter ended December 31, 2015.
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“Although 2016 was a challenging year for the coal industry, NRP enters 2017 as a much stronger company,” said Wyatt Hogan, President and Chief Operating Officer. “The recent improvements in the markets for both metallurgical and thermal coal, combined with the continued balance and diversification of our soda ash and aggregates businesses, position NRP well for the new year."
“Our successful deleveraging efforts throughout the course of 2016 culminated in the recently announced investments in NRP by Blackstone and GoldenTree, as well as the extensions of our 2018 debt maturities," said Craig Nunez, Chief Financial Officer. "We look forward to working with our new partners to continue to improve our balance sheet and explore new opportunities to grow and diversify the partnership.”
Business Results and Outlook
The table below presents NRP's business results by segment for the year ended December 31, 2016 and 2015:
| Operating Business Segments | ||||||||||||||||||||
| Coal Royalty and Other | Corporate and Financing | |||||||||||||||||||
| Soda Ash | VantaCore | Total | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Year Ended December 31, 2016 | ||||||||||||||||||||
| Total revenues and other income | $ | 239,183 | $ | 40,061 | $ | 120,815 | $ | — | $ | 400,059 | ||||||||||
Total operating expenses excluding impairments (1) | $ | 61,656 | $ | — | $ | 115,162 | $ | 20,570 | $ | 197,388 | ||||||||||
| Asset impairments | $ | 15,861 | $ | — | $ | 1,065 | $ | — | $ | 16,926 | ||||||||||
| Net income (loss) from continuing operations | $ | 161,816 | $ | 40,061 | $ | 4,438 | $ | (111,101 | ) | $ | 95,214 | |||||||||
Adjusted EBITDA (1) | $ | 209,443 | $ | 46,550 | $ | 20,009 | $ | (20,531 | ) | $ | 255,471 | |||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 134,490 | $ | 46,550 | $ | 20,400 | $ | (100,797 | ) | $ | 100,643 | |||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 65,057 | $ | — | $ | (5,114 | ) | $ | — | $ | 59,943 | |||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | 16 | $ | (7,229 | ) | $ | (1,825 | ) | $ | (152,381 | ) | $ | (161,419 | ) | ||||||
Distributable Cash Flow (1) | $ | 199,547 | $ | 46,550 | $ | 16,243 | $ | (100,797 | ) | $ | 271,415 | |||||||||
| Year Ended December 31, 2015 | ||||||||||||||||||||
| Total revenues and other income | $ | 250,717 | $ | 49,918 | $ | 139,013 | $ | — | $ | 439,648 | ||||||||||
Total operating expenses excluding impairments (1) | $ | 80,659 | $ | — | $ | 132,523 | $ | 12,348 | $ | 225,530 | ||||||||||
| Asset impairments | $ | 378,327 | $ | — | $ | 6,218 | $ | — | $ | 384,545 | ||||||||||
| Net income (loss) from continuing operations | $ | (208,248 | ) | $ | 49,918 | $ | 251 | $ | (102,092 | ) | $ | (260,171 | ) | |||||||
Adjusted EBITDA (1) | $ | 206,127 | $ | 46,795 | $ | 22,047 | $ | (12,330 | ) | $ | 262,639 | |||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 204,934 | $ | 43,029 | $ | 23,605 | $ | (103,056 | ) | $ | 168,512 | |||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 15,805 | $ | — | $ | (8,820 | ) | $ | — | $ | 6,985 | |||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | (2,744 | ) | $ | — | $ | — | $ | (180,520 | ) | $ | (183,264 | ) | |||||||
Distributable Cash Flow (1) | $ | 217,842 | $ | 43,029 | $ | 18,802 | $ | (103,056 | ) | $ | 176,617 | |||||||||
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
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The table below presents NRP's business results by segment for the three months ended December 31, 2016 and 2015:
| Operating Business Segments | ||||||||||||||||||||
| Coal Royalty and Other | Corporate and Financing | |||||||||||||||||||
| Soda Ash | VantaCore | Total | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||||||||
| Total revenues and other income | $ | 46,069 | $ | 9,319 | $ | 32,724 | $ | — | $ | 88,112 | ||||||||||
Total operating expenses excluding impairments (1) | $ | 13,928 | $ | — | $ | 30,609 | $ | 7,224 | $ | 51,761 | ||||||||||
| Asset impairments | $ | 8,180 | $ | — | $ | 1,065 | $ | — | $ | 9,245 | ||||||||||
| Net income (loss) from continuing operations | $ | 24,014 | $ | 9,319 | $ | 997 | $ | (30,519 | ) | $ | 3,811 | |||||||||
Adjusted EBITDA (1) | $ | 40,464 | $ | 12,250 | $ | 5,555 | $ | (7,214 | ) | $ | 51,055 | |||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 43,118 | $ | 12,250 | $ | 3,720 | $ | (32,992 | ) | $ | 26,096 | |||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 7,223 | $ | — | $ | (790 | ) | $ | — | $ | 6,433 | |||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | 16 | $ | — | $ | (232 | ) | $ | (84,334 | ) | $ | (84,550 | ) | |||||||
Distributable Cash Flow (1) | $ | 50,341 | $ | 12,250 | $ | 3,132 | $ | (32,992 | ) | $ | 32,714 | |||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||||||
| Total revenues and other income | $ | 60,713 | $ | 13,179 | $ | 31,979 | $ | — | $ | 105,871 | ||||||||||
Total operating expenses excluding impairments (1) | $ | 22,358 | $ | — | $ | 29,368 | $ | 2,525 | $ | 54,251 | ||||||||||
| Asset impairments | $ | 12,821 | $ | — | $ | 6,218 | $ | — | $ | 19,039 | ||||||||||
| Net income (loss) from continuing operations | $ | 25,555 | $ | 13,179 | $ | (3,628 | ) | $ | (25,309 | ) | $ | 9,797 | ||||||||
Adjusted EBITDA (1) | $ | 49,185 | $ | 12,250 | $ | 5,669 | $ | (2,523 | ) | $ | 64,581 | |||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 55,093 | $ | 12,251 | $ | 3,822 | $ | (34,845 | ) | $ | 36,321 | |||||||||
| Net cash provided by (used in) investing activities of continuing operations | $ | 259 | $ | — | $ | (1,403 | ) | $ | — | $ | (1,144 | ) | ||||||||
| Net cash provided by (used in) financing activities of continuing operations | $ | — | $ | — | $ | — | $ | (43,638 | ) | $ | (43,638 | ) | ||||||||
Distributable Cash Flow (1) | $ | 54,870 | $ | 12,251 | $ | 1,862 | $ | (34,845 | ) | $ | 34,138 | |||||||||
| (1) | See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release. |
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Coal Royalty and Other
In the fourth quarter, NRP began to realize the benefits of the significant increases in metallurgical coal prices during 2016. A number of NRP's lessees were able to take advantage of the improved markets and lock in tonnage commitments for 2017 at substantially higher prices than they realized in 2016. While spot metallurgical prices have recently retreated from the highs reached in the fourth quarter, NRP believes that the global supply/demand dynamic will support long-term metallurgical coal prices well above the lows hit in the first half of 2016. NRP derived approximately 37% of its coal royalty revenues and approximately 35% of the related production from metallurgical coal during the year ended December 31, 2016. The domestic thermal coal markets have also shown modest improvements, as production cuts over the last two years have rationalized coal stockpiles. Although a mild winter has tempered demand for thermal coal, natural gas prices remain higher than 2016, causing thermal coal to be more competitive for electricity generation as compared to recent years.
Revenues and other income decreased $11.5 million, or 5%, from $250.7 million in the year ended December 31, 2015 to $239.2 million in the year ended December 31, 2016. A $42.3 million reduction in total coal royalty revenues was caused by a 16.8 million ton reduction in sales. While all regions experienced reduced revenue, the largest decrease occurred in Central Appalachia, which continues to face challenges with respect to thermal coal production. Included in the 2016 total coal royalty and other segment revenues and other income was recognition of $40.5 million of deferred revenue associated with lease modifications and terminations and $29.1 million in gains on asset sales primarily from the sale of certain oil and gas and aggregates royalty properties. Included in the 2015 total coal royalty and other segment revenues and other income was $21.0 million in lease assignment fees and a $9.3 million gain on reserve swap. Revenues and other income for the fourth quarter of 2016 decreased $14.6 million to $46.1 million from the $60.7 million reported for the fourth quarter of 2015. The decrease was primarily due to $15.0 million in lease assignment fees received in the fourth quarter of 2015.
Net income from continuing operations increased $370.0 million, from a loss of $208.2 million in the year ended December 31, 2015 to income of $161.8 million in the year ended December 31, 2016. This increase is primarily related to $378.3 million of impairments taken in the year ended December 31, 2015. Net income from continuing operations decreased $1.5 million to $24.0 million in the fourth quarter of 2016 from the same quarter in 2015.
Adjusted EBITDA increased $3.3 million, or 2%, from $206.1 million in the year ended December 31, 2015 to $209.4 million in the year ended December 31, 2016. This increase was primarily the result of lower operating and maintenance expenses year-over-year, partially offset by lower revenues as discussed. Adjusted EBITDA of $40.5 million reported in the fourth quarter of 2016 decreased $8.7 million from 2015.
Net cash provided by operating activities of continuing operations decreased $70.4 million or 34% from $204.9 million in the year ended December 31, 2015 to $134.5 million in the year ended December 31, 2016. This decrease is primarily related to lower coal royalty production and less minimum payments received from our coal leases. Net cash provided by operating activities of continuing operations decreased $12.0 million to $43.1 million in the fourth quarter of 2016 from 2015. This decline was primarily associated with the $15.0 million of lease assignment fees received in the fourth quarter of 2015.
Net cash provided by investing activities increased $49.3 million to $65.1 million in the year ending December 31, 2016, mainly due to the sale of certain oil and gas and aggregates royalty properties in 2016. Net cash provided by financing activities increased $2.8 million from 2015 due to distributions to non-controlling interests in 2015. For the quarter ending December 31, 2016, net cash provided by investing activities rose $7.0 million to $7.2 million mainly due to the proceeds from the sale of oil and gas royalty properties in the fourth quarter of 2016, while net cash provided by financing activities for the fourth quarter were virtually flat.
Distributable cash flow of $199.5 million for the calendar year 2016 declined $18.3 million from 2015 mainly due to the change in net cash provided by operating activities of continuing operations described above less the $48.5 million of increased proceeds from the sale of mineral rights and property plant and equipment in 2016 over that of 2015. Distributable cash flow of $50.3 million in the fourth quarter of 2016 declined $4.5 million from the fourth quarter of 2015. The $15.0 million of lease assignment fees reported in the fourth quarter of 2015 were partially offset by the $6.9 million of proceeds from the sale of mineral rights received in the fourth quarter of 2016.
Soda Ash
Revenues and other income related to our equity investment in Ciner Wyoming decreased $9.8 million, or 20%, from $49.9 million in the year ended December 31, 2015 to $40.1 million in the year ended December 31, 2016. This decrease is primarily related to lower international prices compared to the prior year, in addition to higher royalty and G&A costs. These decreases were partially offset by an increase in soda ash volumes sold compared to the prior year. For the year ended December 31, 2016, NRP received
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$46.6 million in cash distributions from Ciner Wyoming and for the year ended December 31, 2015, NRP received $46.8 million in cash distributions. For the fourth quarter of 2016 distributions of $12.3 million were flat with the fourth quarter of 2015.
VantaCore
VantaCore's construction aggregates mining business is largely dependent on the strength of the local markets that it serves and is seasonal. The largest component of the VantaCore segment is the Laurel operation in southwestern Pennsylvania, which primarily serves producers and service companies operating in the Marcellus and Utica Shales. Low natural gas prices led to a lower pace of exploration and development in those areas and had a material negative impact on Laurel's revenues as compared to 2015. VantaCore's Winn operation experienced a modest decline in revenues relative to 2015, while the McIntosh Construction and Southern operations enjoyed improvements in revenues compared to the prior year and the new Grand Rivers operation continued to grow its sales over the course of 2016.
Revenues and other income related to our VantaCore segment decreased $18.2 million, or 13%, from $139.0 million in the year ended December 31, 2015 to $120.8 million in the year ended December 31, 2016. While VantaCore's production and revenues declined in 2016 compared to 2015, its cost management efforts have enabled the business to maintain its profitability. Tonnage sold declined 5% or 0.4 million tons year-over-year to 7.0 million tons. Most metrics for the fourth quarter of 2016 were virtually flat with the fourth quarter of 2015 except for net income from continuing operations which improved $4.6 million mainly due to lower non-cash impairments booked in 2016 than in the fourth quarter of 2015.
Discontinued Operations
In July 2016, NRP Oil and Gas sold its non-operated oil and gas working interest assets in the Williston Basin and repaid the reserve-based revolving credit facility in full. The net proceeds of $109.9 million from the sale is included in the calculation of distributable cash flow and included in net cash provided by investing activities of discontinued operations on the Consolidated Statement of Cash Flows.
Corporate and Financing
Corporate and financing general and administrative expense (including affiliates) includes corporate headquarters, financing, legal and centralized treasury and accounting. These costs increased $8.3 million, or 67%, from $12.3 million in the year ended December 31, 2015 to $20.6 million in the year ended December 31, 2016 primarily due to increased legal and consulting fees associated with the implementation of our long-term plan to strengthen our balance sheet, reduce debt and enhance our liquidity and increased LTIP expense as a result of our unit price increasing in 2016 compared to decreasing in 2015 and the accelerated recognition of our LTIP awards granted in 2016. Interest expense, net was essentially flat from $89.7 million in the year ended December 31, 2015 to $90.5 million in the year ended December 31, 2016.
In 2016 NRP repaid $248.1 million of debt, including $85.0 million to repay the NRP Oil and Gas revolving credit facility in full, $82.9 million on the NRP Operating senior notes, and $80.0 million under the Opco Credit Facility.
Subsequent Events
On February 14, 2017, the Partnership paid a distribution of $0.45 per unit to unitholders of record on February 7, 2017.
On March 2, 2017, NRP completed its previously announced recapitalization transactions.
Company Profile
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. A large percentage of NRP's revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation, and owns VantaCore, making NRP one of the top 25 aggregates producers in the United States.
For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership’s website at http://www.nrplp.com.
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Non-GAAP Financial Measures
“Adjusted EBITDA” is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, gain on reserve swaps and income to non-controlling interest; plus distributions from equity earnings in unconsolidated investment, interest expense, depreciation, depletion and amortization and asset impairments.
Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.
“Distributable Cash Flow” is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations, plus returns of unconsolidated equity investments, proceeds from sales of assets including those included in discontinued operations, and returns of long-term contract receivables—affiliate, less maintenance capital expenditures and distributions to non-controlling interest. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the Partnership's ability to make cash distributions to our unitholders and our general partner and repay debt.
“Operating expenses excluding impairments” is a non-GAAP financial measure that we define as total operating expenses less asset impairments. “Operating expenses excluding impairments,” as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Operating expenses excluding impairments should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Operating expenses excluding impairments provides no information regarding a company’s capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax positions. Operating expenses excluding impairments does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital and other commitments and obligations. Our management team believes Operating expenses excluding impairments is useful in evaluating our financial performance because asset impairments are one-time non-cash charges and excluding these from total operating expenses allows us to better compare results period-over-period. A reconciliation of Operating expenses excluding impairments to total operating expenses is included in the tables attached to this release.
“Net income excluding impairments” is a non-GAAP financial measure that we define as net income (loss) plus asset impairments. Net income excluding impairments, as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Net income excluding impairments should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes net income excluding impairments is useful in evaluating our financial performance because asset impairments are irregular non-cash charges and excluding these from net income allows us to better compare results period-over-period. A reconciliation of Net income excluding impairments to net income is included in the tables attached to this release.
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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, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; 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-
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Natural Resource Partners L.P.
Financial Tables
| Consolidated Statements of Comprehensive Income (Loss) | |||||||||||||||
| (in thousands, except per unit data) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Revenues and other income: | |||||||||||||||
| Coal royalty and other | $ | 28,184 | $ | 41,927 | $ | 144,520 | $ | 154,066 | |||||||
| Coal royalty and other—affiliates | 16,087 | 18,777 | 65,595 | 89,715 | |||||||||||
| VantaCore | 32,721 | 31,991 | 120,802 | 139,049 | |||||||||||
| Equity in earnings of Ciner Wyoming | 9,319 | 13,179 | 40,061 | 49,918 | |||||||||||
| Gain (loss) on asset sales | 1,801 | (3 | ) | 29,081 | 6,900 | ||||||||||
| Total revenues and other income | 88,112 | 105,871 | 400,059 | 439,648 | |||||||||||
| Operating expenses: | |||||||||||||||
| Operating and maintenance expenses | 31,797 | 30,605 | 119,621 | 136,943 | |||||||||||
| Operating and maintenance expenses—affiliates, net | 977 | 7,233 | 10,925 | 15,323 | |||||||||||
| Depreciation, depletion and amortization | 10,906 | 12,783 | 43,087 | 57,295 | |||||||||||
| Amortization expense—affiliate | 857 | 1,105 | 3,185 | 3,621 | |||||||||||
| General and administrative | 6,303 | 1,022 | 16,979 | 7,036 | |||||||||||
| General and administrative—affiliates | 921 | 1,503 | 3,591 | 5,312 | |||||||||||
| Asset impairments | 9,245 | 19,039 | 16,926 | 384,545 | |||||||||||
| Total operating expenses | 61,006 | 73,290 | 214,314 | 610,075 | |||||||||||
| Income (loss) from operations | 27,106 | 32,581 | 185,745 | (170,427 | ) | ||||||||||
| Other income (expense) | |||||||||||||||
| Interest expense | (23,305 | ) | (22,323 | ) | (90,047 | ) | (87,911 | ) | |||||||
| Interest expense—affiliate | — | (463 | ) | (523 | ) | (1,851 | ) | ||||||||
| Interest income | 10 | 2 | 39 | 18 | |||||||||||
| Other expense, net | (23,295 | ) | (22,784 | ) | (90,531 | ) | (89,744 | ) | |||||||
| Net income (loss) from continuing operations | 3,811 | 9,797 | 95,214 | (260,171 | ) | ||||||||||
| Income (loss) from discontinued operations | (323 | ) | (31,583 | ) | 1,678 | (311,549 | ) | ||||||||
| Net income (loss) | 3,488 | (21,786 | ) | 96,892 | (571,720 | ) | |||||||||
| Net income (loss) attributable to limited partners: | |||||||||||||||
| Continuing operations | $ | 3,814 | $ | 9,626 | $ | 93,585 | $ | (254,173 | ) | ||||||
| Discontinued operations | (317 | ) | (30,952 | ) | 1,644 | (305,319 | ) | ||||||||
| Total | 3,497 | (21,326 | ) | 95,229 | (559,492 | ) | |||||||||
| Net income (loss) attributable to the general partner: | |||||||||||||||
| Continuing operations | $ | (3 | ) | $ | 171 | $ | 1,629 | $ | (5,998 | ) | |||||
| Discontinued operations | (6 | ) | (631 | ) | 34 | (6,230 | ) | ||||||||
| Total | $ | (9 | ) | $ | (460 | ) | $ | 1,663 | $ | (12,228 | ) | ||||
| Basic and diluted net income (loss) per common unit: | |||||||||||||||
| Continuing operations | $ | 0.31 | $ | 0.79 | $ | 7.65 | $ | (20.78 | ) | ||||||
| Discontinued operations | (0.03 | ) | (2.53 | ) | 0.13 | (24.97 | ) | ||||||||
| Total | $ | 0.28 | $ | (1.75 | ) | $ | 7.78 | $ | (45.75 | ) | |||||
| Average number of common units outstanding | 12,232 | 12,232 | 12,232 | 12,232 | |||||||||||
| Net income (loss) | $ | 3,488 | $ | (21,786 | ) | $ | 96,892 | $ | (571,720 | ) | |||||
| Add: comprehensive income (loss) from unconsolidated investment and other | 1,178 | 198 | 486 | (1,693 | ) | ||||||||||
| Comprehensive income (loss) | $ | 4,666 | $ | (21,588 | ) | $ | 97,378 | $ | (573,413 | ) | |||||
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Natural Resource Partners L.P.
Financial Tables
| Consolidated Statements of Cash Flows | |||||||||||||||
| (in thousands) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income (loss) | $ | 3,488 | $ | (21,786 | ) | $ | 96,892 | $ | (571,720 | ) | |||||
| Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | |||||||||||||||
| Depreciation, depletion and amortization | 10,906 | 12,783 | 43,087 | 57,295 | |||||||||||
| Amortization expense—affiliates | 857 | 1,105 | 3,185 | 3,621 | |||||||||||
| Distributions from equity earnings from unconsolidated investment | 12,250 | 12,250 | 46,550 | 46,795 | |||||||||||
| Equity earnings from unconsolidated investment | (9,319 | ) | (13,179 | ) | (40,061 | ) | (49,918 | ) | |||||||
| (Gain) loss on asset sales | (1,801 | ) | 3 | (29,081 | ) | (6,900 | ) | ||||||||
| (Income) loss from discontinued operations | 323 | 31,583 | (1,678 | ) | 311,549 | ||||||||||
| Asset impairments | 9,245 | 19,039 | 16,926 | 384,545 | |||||||||||
| Gain on reserve swap | — | — | — | (9,290 | ) | ||||||||||
| Other, net | 1,590 | 665 | 8,284 | (7,109 | ) | ||||||||||
| Other, net—affiliates | 145 | 1,227 | 993 | (912 | ) | ||||||||||
| Change in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | 772 | 4,202 | 431 | 7,705 | |||||||||||
| Accounts receivable—affiliates | 399 | 1,105 | (313 | ) | 3,149 | ||||||||||
| Accounts payable | 72 | (1,462 | ) | 707 | (3,625 | ) | |||||||||
| Accounts payable—affiliates | 110 | (1,595 | ) | 139 | (32 | ) | |||||||||
| Accrued liabilities | (2,669 | ) | (7,065 | ) | 4,618 | 1,420 | |||||||||
| Accrued liabilities—affiliates | — | (457 | ) | (456 | ) | — | |||||||||
| Deferred revenue | 4,881 | 1,570 | (35,881 | ) | 7,605 | ||||||||||
| Deferred revenue—affiliates | (3,032 | ) | (801 | ) | (11,222 | ) | (4,200 | ) | |||||||
| Other items, net | (2,121 | ) | (2,866 | ) | (2,477 | ) | (1,466 | ) | |||||||
| Other items, net—affiliates | — | — | — | — | |||||||||||
| Net cash provided by operating activities of continuing operations | 26,096 | 36,321 | 100,643 | 168,512 | |||||||||||
| Net cash provided by (used in) operating activities of discontinued operations | (855 | ) | 5,753 | 7,318 | 34,912 | ||||||||||
| Net cash provided by operating activities | 25,241 | 42,074 | 107,961 | 203,424 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Proceeds from sale of oil and gas royalty properties | 6,880 | — | 42,844 | — | |||||||||||
| Proceeds from sale of coal and aggregate royalty properties | (25 | ) | — | 18,189 | 3,505 | ||||||||||
| Return of long-term contract receivables—affiliate | 391 | 342 | 2,968 | 2,463 | |||||||||||
| Proceeds from sale of plant and equipment and other | 164 | (460 | ) | 1,350 | 11,024 | ||||||||||
| Acquisition of plant and equipment and other | (977 | ) | (1,026 | ) | (5,408 | ) | (9,607 | ) | |||||||
| Acquisition of mineral rights | — | — | — | (400 | ) | ||||||||||
| Net cash provided by (used in) investing activities of continuing operations | 6,433 | (1,144 | ) | 59,943 | 6,985 | ||||||||||
| Net cash provided by (used in) investing activities of discontinued operations | 51 | (4,675 | ) | 106,872 | (37,256 | ) | |||||||||
| Net cash provided by (used in) investing activities | 6,484 | (5,819 | ) | 166,815 | (30,271 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from loans | — | — | 20,000 | 100,000 | |||||||||||
| Repayments of loans | (76,967 | ) | (24,808 | ) | (183,141 | ) | (165,983 | ) | |||||||
| Distributions to unitholders | (5,616 | ) | (5,616 | ) | (22,465 | ) | (71,758 | ) | |||||||
| Distributions to non-controlling interest | — | — | — | (2,744 | ) | ||||||||||
| Contributions from (to) discontinued operations | (805 | ) | (13,000 | ) | 39,421 | (36,725 | ) | ||||||||
| Debt issue costs and other | (1,162 | ) | (214 | ) | (15,234 | ) | (6,054 | ) | |||||||
| Net cash used in financing activities of continuing operations | (84,550 | ) | (43,638 | ) | (161,419 | ) | (183,264 | ) | |||||||
| Net cash provided by (used in) financing activities of discontinued operations | 805 | (2,000 | ) | (124,759 | ) | 11,808 | |||||||||
| Net cash used in financing activities | (83,745 | ) | (45,638 | ) | (286,178 | ) | (171,456 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents | (52,020 | ) | (9,383 | ) | (11,402 | ) | 1,697 | ||||||||
9
| Cash and cash equivalents of continuing operations at beginning of period | 92,391 | 49,665 | 41,204 | 48,971 | |||||||||||
| Cash and cash equivalents of discontinued operations at beginning of period | — | 11,491 | 10,569 | 1,105 | |||||||||||
| Cash and cash equivalents at beginning of period | 92,391 | 61,156 | 51,773 | 50,076 | |||||||||||
| Cash and cash equivalents at end of period | 40,371 | 51,773 | 40,371 | 51,773 | |||||||||||
| Less: cash and cash equivalents of discontinued operations at end of period | — | 10,569 | — | 10,569 | |||||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | 40,371 | $ | 41,204 | $ | 40,371 | $ | 41,204 | |||||||
| Supplemental cash flow information: | |||||||||||||||
| Cash paid during the period for interest | $ | 29,631 | $ | 29,977 | $ | 84,380 | $ | 85,738 | |||||||
| Plant, equipment and mineral rights funded with accounts payable or accrued liabilities | — | (161 | ) | — | 4,304 | ||||||||||
10
Natural Resource Partners L.P.
Financial Tables
| Consolidated Balance Sheets | |||||||
| (in thousands, except unit data) | |||||||
| December 31, | |||||||
| 2016 | 2015 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 40,371 | $ | 41,204 | |||
| Accounts receivable, net | 43,202 | 43,633 | |||||
| Accounts receivable—affiliates, net | 6,658 | 6,345 | |||||
| Inventory | 6,893 | 7,835 | |||||
| Prepaid expenses and other | 6,137 | 4,268 | |||||
| Current assets of discontinued operations | 991 | 17,844 | |||||
| Total current assets | 104,252 | 121,129 | |||||
| Land | 25,252 | 25,022 | |||||
| Plant and equipment, net | 49,443 | 60,675 | |||||
| Mineral rights, net | 908,192 | 984,522 | |||||
| Intangible assets, net | 3,236 | 3,930 | |||||
| Intangible assets, net—affiliate | 49,811 | 52,997 | |||||
| Equity in unconsolidated investment | 255,901 | 261,942 | |||||
| Long-term contracts receivable—affiliate | 43,785 | 47,359 | |||||
| Other assets | 3,791 | 1,173 | |||||
| Other assets—affiliate | 1,018 | 1,124 | |||||
| Non-current assets of discontinued operations | — | 110,162 | |||||
| Total assets | $ | 1,444,681 | $ | 1,670,035 | |||
| LIABILITIES AND CAPITAL | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 6,234 | $ | 5,022 | |||
| Accounts payable—affiliates | 940 | 801 | |||||
| Accrued liabilities | 41,587 | 44,997 | |||||
| Accrued liabilities—affiliates | — | 456 | |||||
| Current portion of long-term debt, net | 138,903 | 80,745 | |||||
| Current liabilities of discontinued operations | 353 | 4,388 | |||||
| Total current liabilities | 188,017 | 136,409 | |||||
| Deferred revenue | 44,931 | 80,812 | |||||
Deferred revenue—affiliates | 71,632 | 82,853 | |||||
| Long-term debt, net | 987,400 | 1,186,681 | |||||
Long-term debt, net—affiliate | — | 19,930 | |||||
| Other non-current liabilities | 4,565 | 5,171 | |||||
| Non-current liabilities of discontinued operations | — | 85,237 | |||||
| Commitments and contingencies | |||||||
| Partners’ capital: | |||||||
| Common unitholders’ interest (12,232,006 units outstanding) | 152,309 | 79,094 | |||||
| General partner’s interest | 887 | (606 | ) | ||||
| Accumulated other comprehensive loss | (1,666 | ) | (2,152 | ) | |||
| Total partners’ capital | 151,530 | 76,336 | |||||
| Non-controlling interest | (3,394 | ) | (3,394 | ) | |||
| Total capital | 148,136 | 72,942 | |||||
| Total liabilities and capital | $ | 1,444,681 | $ | 1,670,035 | |||
11
Natural Resource Partners L.P.
Financial Tables
| Operating Statistics - Coal Royalty and Other | |||||||||||||||
| (in thousands except per ton data) | |||||||||||||||
For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Coal production (tons) | |||||||||||||||
| Appalachia | |||||||||||||||
| Northern | 1,833 | 1,981 | 2,312 | 9,562 | |||||||||||
| Central | 3,176 | 3,460 | 13,222 | 16,862 | |||||||||||
| Southern | 575 | 803 | 2,776 | 3,803 | |||||||||||
| Total Appalachia | 5,584 | 6,244 | 18,310 | 30,227 | |||||||||||
| Illinois Basin | 2,060 | 2,908 | 8,116 | 11,173 | |||||||||||
| Northern Powder River Basin | 1,047 | 1,408 | 3,781 | 4,905 | |||||||||||
| Gulf Coast | — | (38 | ) | 0.4 | 740 | ||||||||||
| Total coal production | 8,691 | 10,522 | 30,207 | 47,045 | |||||||||||
| Coal royalty revenue per ton | |||||||||||||||
| Appalachia | |||||||||||||||
| Northern | $ | 0.36 | $ | 0.29 | $ | 1.15 | $ | 0.28 | |||||||
| Central | 4.97 | 3.54 | 3.64 | 3.85 | |||||||||||
| Southern | 5.64 | 4.66 | 3.84 | 4.57 | |||||||||||
| Illinois Basin | 3.92 | 3.80 | 3.66 | 3.94 | |||||||||||
| Northern Powder River Basin | 2.22 | 2.29 | 2.81 | 2.54 | |||||||||||
| Gulf Coast | — | 11.21 | 3.28 | 3.47 | |||||||||||
| Coal royalty revenues | |||||||||||||||
| Appalachia | |||||||||||||||
| Northern | $ | 662 | $ | 567 | $ | 2,667 | $ | 2,672 | |||||||
| Central | 15,788 | 12,261 | 48,119 | 64,877 | |||||||||||
| Southern | 3,241 | 3,744 | 10,660 | 17,390 | |||||||||||
| Total Appalachia | 19,691 | 16,572 | 61,446 | 84,939 | |||||||||||
| Illinois Basin | 8,069 | 11,043 | 29,680 | 44,063 | |||||||||||
| Northern Powder River Basin | 2,323 | 3,224 | 10,637 | 12,443 | |||||||||||
| Gulf Coast | 1 | (426 | ) | 1 | 2,570 | ||||||||||
| Total coal royalty revenue | $ | 30,084 | $ | 30,413 | $ | 101,764 | $ | 144,015 | |||||||
| Other revenues | |||||||||||||||
| Coal override revenue | $ | 799 | $ | 725 | $ | 2,281 | $ | 2,920 | |||||||
| Transportation and processing fees | 3,673 | 5,633 | 19,336 | 22,033 | |||||||||||
| Minimums recognized as revenue | 4,136 | 3,009 | 64,591 | 15,489 | |||||||||||
| Lease assignment fee | — | 15,000 | — | 21,000 | |||||||||||
| Gain on reserve swap | — | — | — | 9,290 | |||||||||||
| Wheelage | 577 | 1,049 | 2,374 | 3,166 | |||||||||||
| Hard mineral royalty revenues | 969 | 538 | 3,163 | 8,090 | |||||||||||
| Oil and gas royalty revenues | 999 | 888 | 3,537 | 4,364 | |||||||||||
| Property tax revenue | 1,558 | 2,656 | 10,457 | 11,258 | |||||||||||
| Other | 1,476 | 793 | 2,612 | 2,156 | |||||||||||
| Total other revenues | $ | 14,187 | $ | 30,291 | $ | 108,351 | $ | 99,766 | |||||||
| Coal royalty and other income | 44,271 | 60,704 | 210,115 | 243,781 | |||||||||||
| Gain on coal royalty and other segment asset sales | 1,798 | 9 | 29,068 | 6,936 | |||||||||||
| Total coal royalty and other segment revenues and other income | $ | 46,069 | $ | 60,713 | $ | 239,183 | $ | 250,717 | |||||||
12
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
| Distributable Cash Flow | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Coal Royalty and Other | Corporate and Financing | |||||||||||||||||||
| �� | Soda Ash | VantaCore | Total | |||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 43,118 | $ | 12,250 | $ | 3,720 | $ | (32,992 | ) | $ | 26,096 | |||||||||
| Add: proceeds from sale of PP&E | — | — | 164 | — | 164 | |||||||||||||||
| Add: proceeds from sale of mineral rights | 6,855 | — | — | — | 6,855 | |||||||||||||||
| Add: proceeds from sale of assets included in discontinued operations | — | — | — | — | (17 | ) | ||||||||||||||
| Add: return on long-term contract receivables—affiliate | 391 | — | — | — | 391 | |||||||||||||||
| Less: maintenance capital expenditures | (23 | ) | — | (752 | ) | — | (775 | ) | ||||||||||||
| DCF | $ | 50,341 | $ | 12,250 | $ | 3,132 | $ | (32,992 | ) | $ | 32,714 | |||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 55,093 | $ | 12,251 | $ | 3,822 | $ | (34,845 | ) | $ | 36,321 | |||||||||
| Add: proceeds from sale of PP&E | (478 | ) | — | 18 | — | (460 | ) | |||||||||||||
| Add: proceeds from sale of mineral rights | — | — | — | — | — | |||||||||||||||
| Add: return on long-term contract receivables—affiliate | 342 | — | — | — | 342 | |||||||||||||||
| Less: maintenance capital expenditures | (87 | ) | — | (1,978 | ) | — | (2,065 | ) | ||||||||||||
| Less: distributions to non-controlling interest | — | — | — | — | — | |||||||||||||||
| DCF | $ | 54,870 | $ | 12,251 | $ | 1,862 | $ | (34,845 | ) | $ | 34,138 | |||||||||
| Year Ended December 31, 2016 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 134,490 | $ | 46,550 | $ | 20,400 | $ | (100,797 | ) | $ | 100,643 | |||||||||
| Add: proceeds from sale of PP&E | 1,084 | — | 266 | — | 1,350 | |||||||||||||||
| Add: proceeds from sale of mineral rights | 61,033 | — | — | — | 61,033 | |||||||||||||||
| Add: proceeds from sale of assets included in discontinued operations | — | — | — | — | 109,872 | |||||||||||||||
| Add: return on long-term contract receivables—affiliate | 2,968 | — | — | — | 2,968 | |||||||||||||||
| Less: maintenance capital expenditures | (28 | ) | — | (4,423 | ) | — | (4,451 | ) | ||||||||||||
| DCF | $ | 199,547 | $ | 46,550 | $ | 16,243 | $ | (100,797 | ) | $ | 271,415 | |||||||||
| Year Ended December 31, 2015 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities of continuing operations | $ | 204,934 | $ | 43,029 | $ | 23,605 | $ | (103,056 | ) | $ | 168,512 | |||||||||
| Add: proceeds from sale of PP&E | 10,100 | — | 924 | — | 11,024 | |||||||||||||||
| Add: proceeds from sale of mineral rights | 3,505 | — | — | — | 3,505 | |||||||||||||||
| Add: return on long-term contract receivables—affiliate | 2,463 | — | — | — | 2,463 | |||||||||||||||
| Less: maintenance capital expenditures | (416 | ) | — | (5,727 | ) | — | (6,143 | ) | ||||||||||||
| Less: distributions to non-controlling interest | (2,744 | ) | — | — | — | (2,744 | ) | |||||||||||||
| DCF | $ | 217,842 | $ | 43,029 | $ | 18,802 | $ | (103,056 | ) | $ | 176,617 | |||||||||
13
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
| Adjusted EBITDA | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Coal Royalty and Other | Corporate and Financing | |||||||||||||||||||
| Soda Ash | VantaCore | Total | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 24,014 | $ | 9,319 | $ | 997 | $ | (30,519 | ) | $ | 3,811 | |||||||||
| Less: equity earnings from unconsolidated investment | — | (9,319 | ) | — | — | (9,319 | ) | |||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | |||||||||||||||
| Add: interest expense | — | — | — | 23,305 | 23,305 | |||||||||||||||
| Add: depreciation, depletion and amortization | 8,270 | — | 3,493 | — | 11,763 | |||||||||||||||
| Add: asset impairments | 8,180 | — | 1,065 | — | 9,245 | |||||||||||||||
| Adjusted EBITDA | $ | 40,464 | $ | 12,250 | $ | 5,555 | $ | (7,214 | ) | $ | 51,055 | |||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 25,555 | $ | 13,179 | $ | (3,628 | ) | $ | (25,309 | ) | $ | 9,797 | ||||||||
| Less: equity earnings from unconsolidated investment | — | (13,179 | ) | — | — | (13,179 | ) | |||||||||||||
| Less: gain on reserve swap | — | — | — | — | — | |||||||||||||||
| Add: distributions from unconsolidated investment | — | 12,250 | — | — | 12,250 | |||||||||||||||
| Add: interest expense | — | — | — | 22,786 | 22,786 | |||||||||||||||
| Add: depreciation, depletion and amortization | 10,809 | — | 3,079 | — | 13,888 | |||||||||||||||
| Add: asset impairments | 12,821 | — | 6,218 | — | 19,039 | |||||||||||||||
| Adjusted EBITDA | $ | 49,185 | $ | 12,250 | $ | 5,669 | $ | (2,523 | ) | $ | 64,581 | |||||||||
| Year Ended December 31, 2016 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 161,816 | $ | 40,061 | $ | 4,438 | $ | (111,101 | ) | $ | 95,214 | |||||||||
| Less: equity earnings from unconsolidated investment | — | (40,061 | ) | — | — | (40,061 | ) | |||||||||||||
| Add: distributions from unconsolidated investment | — | 46,550 | — | — | 46,550 | |||||||||||||||
| Add: interest expense | — | — | — | 90,570 | 90,570 | |||||||||||||||
| Add: depreciation, depletion and amortization | 31,766 | — | 14,506 | — | 46,272 | |||||||||||||||
| Add: asset impairments | 15,861 | — | 1,065 | — | 16,926 | |||||||||||||||
| Adjusted EBITDA | $ | 209,443 | $ | 46,550 | $ | 20,009 | $ | (20,531 | ) | $ | 255,471 | |||||||||
| Year Ended December 31, 2015 | ||||||||||||||||||||
| Net income (loss) from continuing operations | $ | (208,248 | ) | $ | 49,918 | $ | 251 | $ | (102,092 | ) | $ | (260,171 | ) | |||||||
| 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: interest expense | — | — | — | 89,762 | 89,762 | |||||||||||||||
| Add: depreciation, depletion and amortization | 45,338 | — | 15,578 | — | 60,916 | |||||||||||||||
| Add: asset impairments | 378,327 | — | 6,218 | — | 384,545 | |||||||||||||||
| Adjusted EBITDA | $ | 206,127 | $ | 46,795 | $ | 22,047 | $ | (12,330 | ) | $ | 262,639 | |||||||||
14
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
| Operating Expenses Excluding Impairments | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Coal Royalty and Other | Corporate and Financing | |||||||||||||||||||
| Soda Ash | VantaCore | Total | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended December 31, 2016 | ||||||||||||||||||||
| Total operating expenses | $ | 22,108 | $ | — | $ | 31,674 | $ | 7,224 | $ | 61,006 | ||||||||||
| Less: asset impairments | 8,180 | — | 1,065 | — | 9,245 | |||||||||||||||
| Operating expenses excluding impairments | $ | 13,928 | $ | — | $ | 30,609 | $ | 7,224 | $ | 51,761 | ||||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||||||
| Total operating expenses | $ | 35,179 | $ | — | $ | 35,586 | $ | 2,525 | $ | 73,290 | ||||||||||
| Less: asset impairments | 12,821 | — | 6,218 | — | 19,039 | |||||||||||||||
| Operating expenses excluding impairments | $ | 22,358 | $ | — | $ | 29,368 | $ | 2,525 | $ | 54,251 | ||||||||||
| Year Ended December 31, 2016 | ||||||||||||||||||||
| Total operating expenses | $ | 77,517 | $ | — | $ | 116,227 | $ | 20,570 | $ | 214,314 | ||||||||||
| Less: asset impairments | 15,861 | — | 1,065 | — | 16,926 | |||||||||||||||
| Operating expenses excluding impairments | $ | 61,656 | $ | — | $ | 115,162 | $ | 20,570 | $ | 197,388 | ||||||||||
| Year Ended December 31, 2015 | ||||||||||||||||||||
| Total operating expenses | $ | 458,986 | $ | — | $ | 138,741 | $ | 12,348 | $ | 610,075 | ||||||||||
| Less: asset impairments | 378,327 | — | 6,218 | — | 384,545 | |||||||||||||||
| Operating expenses excluding impairments | $ | 80,659 | $ | — | $ | 132,523 | $ | 12,348 | $ | 225,530 | ||||||||||
| Non-cash impairment charges attributable to the limited partners | ||||||||||||
| (in thousands) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| (Unaudited) | ||||||||||||
| Asset impairments, as reported | 9,245 | 19,039 | 16,926 | 384,545 | ||||||||
| Asset impairments attributable to the limited partners | 9,060 | 18,658 | 16,587 | 376,854 | ||||||||
| Asset impairments attributable to the general partners | 185 | 381 | 339 | 7,691 | ||||||||
| Gain on sale of assets attributable to the limited partners | ||||||||||||
| (in thousands) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| (Unaudited) | ||||||||||||
| Gain (loss) on sale of assets, as reported | 1,801 | (3 | ) | 29,081 | 6,900 | |||||||
| Gain (loss) on sale of assets attributable to the limited partners | 1,765 | (3 | ) | 28,499 | 6,762 | |||||||
| Gain (loss) on sale of assets attributable to the general partners | 36 | — | 582 | 138 | ||||||||
15
Natural Resource Partners L.P.
Reconciliation of Non-GAAP Measures
| Net Income from Continuing Operations and Net Income from Continuing Operations Per Unit Attributable to the Limited Partners Excluding Impairments and Asset Sales | ||||||||||||||||
| (in thousands, except per unit data) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net income (loss) from continuing operations attributable to the limited partners, as reported | $ | 3,814 | $ | 9,626 | $ | 93,585 | $ | (254,173 | ) | |||||||
| (Gain) loss on sale of assets attributable to the limited partners | (1,765 | ) | 3 | (28,499 | ) | (6,762 | ) | |||||||||
| Asset impairments attributable to the limited partners | 9,060 | 18,658 | 16,587 | 376,854 | ||||||||||||
| Net income from continuing operations attributable to the limited partners excluding impairments and gain on asset sales | $ | 11,109 | $ | 28,287 | $ | 81,673 | $ | 115,919 | ||||||||
| Weighted average number of common units outstanding | 12,232 | 12,232 | 12,232 | 12,232 | ||||||||||||
| Net income from continuing operations per unit attributable to the limited partners excluding impairments and gain on asset sales | $ | 0.91 | $ | 2.31 | $ | 6.68 | $ | 9.48 | ||||||||
-end-
16