Business Wire | Nov 5, 2020 06:55AM EST

Natural Resource Partners L.P. Reports Third Quarter 2020 Results and Declares Third Quarter 2020 Distributions

Nov. 05, 2020

HOUSTON--(BUSINESS WIRE)--Nov. 05, 2020--Natural Resource Partners L.P. (NYSE:NRP) today reported third quarter 2020 results as follows:

For the Three Months Last Twelve Ended Months

September 30, September 30,

(In thousands) (Unaudited) 2020 2019 2020

Net income (loss) from continuing $ 7,216 $ 39,163 $ (218,954 )operations

Asset impairments 934 484 280,947

Net income from continuing operations $ 8,150 $ 39,647 $ 61,993 excluding asset impairments ^(1)

Adjusted EBITDA ^(1) 18,529 46,014 117,771

Cash flow provided by (used in) continuing operations:

Operating activities 24,323 41,734 93,807

Investing activities 332 6,567 1,228

Financing activities (19,910 ) (21,913 ) (91,625 )

Distributable cash flow ^(1) 24,655 48,179 95,918

Free cash flow ^(1) 24,655 42,193 94,639

Cash flow cushion (last twelve months) 1,460 ^(1)

____________________

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

"Demand for steel, electricity and glass began to rebound in the third quarter and the outlook for our coal and soda ash businesses has improved from the lows earlier this year. We continue to generate free cash flow and maintain strong liquidity, which provides us with significant financial flexibility to continue paying down debt and managing through challenging times," said Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $215.6 million at September 30, 2020, consisting of $115.6 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

NRP announced today that the Board of Directors of its general partner declared a third quarter 2020 cash distribution of $0.45 per common unit of NRP to be paid on November 20, 2020 to unitholders of record on November 19, 2020. In addition, the Board declared a $7.5 million distribution on the preferred units, which will be paid one-half in cash and one-half in kind through the issuance of additional preferred units. Future distributions on NRP's common and preferred units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board determines is necessary for future operating and capital needs.

Segment Performance

Coal Royalty and Other

Revenues and other income in the third quarter of 2020 were lower by $21.9 million and distributable cash flow and free cash flow were $18.8 million and $12.6 million lower, respectively, as compared to the prior year quarter. This decrease is primarily a result of a weakened market for metallurgical coal as compared to the prior year quarter due to a decline in global steel demand. As a result, both sales volumes and prices for metallurgical coal sold were lower in the third quarter of 2020 compared to the prior year quarter. Approximately 70% of coal royalty revenues and approximately 65% of coal royalty sales volumes were derived from metallurgical coal during the three months ended September 30, 2020. In addition, weaker domestic and export thermal coal markets compared to the prior year period resulted in lower revenue from NRP's thermal coal properties. Domestic and export thermal coal markets remained challenged by lower utility demand, continued low natural gas prices and the secular shift to renewable energy. Furthermore, the COVID-19 pandemic has compounded already weak coal pricing and demand, and NRP's coal lessees saw negative impacts on their businesses during 2020.

Soda Ash

Ciner Wyoming has also been negatively impacted by the COVID-19 pandemic as lower activity in the global auto, container and construction industries reduced demand for glass and soda ash. However, demand for glass began to rebound in the third quarter of 2020 and the outlook for the soda ash business has improved. Revenues and other income in the third quarter of 2020 were lower by $11.8 million compared to the prior year quarter primarily due to a combination of lower pricing and volumes sold. While Ciner has yet to recover to pre-COVID levels, overall sales volumes increased 26.7% and overall production volumes increased 1.5% over second quarter 2020 results. NRP believes Ciner Wyoming's facility is competitively positioned as one of the lowest cost producers of soda ash in the world, however, NRP expects the market to remain volatile as a result of ongoing uncertainties with the COVID-19 pandemic.

In order to have financial flexibility during the COVID-19 pandemic, Ciner Wyoming suspended its quarterly distribution in August 2020 and accordingly, did not pay quarterly distributions for the second or third quarters of 2020. Ciner Wyoming will continue to evaluate, on a quarterly basis, whether to reinstate the distribution. Ciner Wyoming's ability to pay future quarterly distributions will be dependent in part on its cash reserves, liquidity, total debt levels and anticipated capital expenditures.

Corporate and Financing

Corporate and financing costs were $0.8 million lower in the third quarter of 2020 compared to the prior year quarter. Distributable cash flow and free cash flow increased $1.3 million compared to the prior year quarter primarily due to lower cash paid for interest as a result of lower debt balances.

As noted above, the Board declared a third quarter $7.5 million distribution on NRP's preferred units, to be paid one-half in cash and one-half in kind. The indenture governing the 2025 parent company notes restricts NRP from paying more than one-half of the quarterly distribution on the preferred units in cash if NRP's consolidated leverage ratio exceeds 3.75x, and as of September 30, 2020, NRP's leverage ratio was 4.2x.

Conference Call

A conference call will be held today at 9:00 a.m. ET. To register for the conference call, please use this link http://www.directeventreg.com/registration/event/8267566. After registering a confirmation will be sent via email, including dial in details and unique conference call codes for entry. Registration is open through the live call, however, to ensure you are connected for the full call we suggest registering at least 10 minutes prior to the start of the call. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. To access the replay, please visit the Investor Relations section of NRP's website.

Withholding Information for Foreign Investors

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, NRP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns, manages and leases a diversified portfolio of mineral properties in the United States including interests in coal, industrial minerals and other natural resources. In addition, NRP owns an equity investment in Ciner Wyoming LLC, a trona ore mining and soda ash production business.

For additional information, please contact Tiffany Sammis at 713-751-7515 or tsammis@nrplp.com. Further information about NRP is available on the Partnership's website at http://www.nrplp.com.

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, among other things, statements regarding: the effects of the global COVID-19 pandemic; future distributions on the Partnership's common and preferred units; the Partnership's business strategy; its liquidity and access to capital and financing sources; its financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by the Partnership's lessees, including Foresight Energy; Ciner Wyoming LLC's trona mining and soda ash refinery operations; distributions from the soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving the Partnership, and of scheduled or potential regulatory or legal changes; global and U.S. economic conditions; 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.

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, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, 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 or loss, 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. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. 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" or "DCF"is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; 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. In addition, distributable cash flow is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. Distributable cash flow 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 our ability to make cash distributions and repay debt.

"Free cash flow" or "FCF"is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures, cash flow used in acquisition costs classified as investing or financing activities and distributions to non-controlling interest. FCF is calculated before mandatory debt repayments. Free 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. Free cash flow may not be calculated the same for us as for other companies. Free cash flow 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 our ability to make cash distributions and repay debt.

"Cash flow cushion"is a non-GAAP financial measure that we define as free cash flow less one-time beneficial items, mandatory Opco debt repayments, preferred unit distributions and common unit distributions. Cash flow cushion 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. Cash flow cushion is a supplemental liquidity measure used by our management to assess the Partnership's ability to make or raise cash distributions to our common and preferred unitholders and our general partner and repay debt or redeem preferred units.

"Return on capital employed" or "ROCE"is a non-GAAP financial measure that we define as net income (loss) from continuing operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and debt. Return on capital employed should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, 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. Return on capital employed is a supplemental performance measure used by our management team that measures our profitability and efficiency with which our capital is employed. The measure provides an indication of operating performance before the impact of leverage in the capital structure.

-Financial Tables and Reconciliation of Non-GAAP Measures Follow-

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Comprehensive Income (Loss)



For the Three Months Ended For the Nine Months Ended

September 30, June 30, September 30,

(In thousands,except per 2020 2019 2020 2020 2019unit data)

Revenues and other income

Coal royalty $ 25,740 $ 39,919 $ 31,666 $ 88,839 $ 154,037 and other

Transportationand processing 2,204 3,865 1,938 6,651 14,740 services

Equity inearnings 1,986 13,818 (3,058 ) 5,200 36,833 (loss) ofCiner Wyoming

Gain on assetsales and - 6,107 465 465 6,609 disposals

Total revenuesand other $ 29,930 $ 63,709 $ 31,011 $ 101,155 $ 212,219 income

Operating expenses

Operating andmaintenance $ 5,781 $ 5,994 $ 8,217 $ 19,200 $ 26,813 expenses

Depreciation,depletion and 2,111 3,384 2,062 6,185 11,746 amortization

General andadministrative 3,634 4,253 3,621 11,168 12,799 expenses

Asset 934 484 132,283 133,217 484 impairments

Totaloperating $ 12,460 $ 14,115 $ 146,183 $ 169,770 $ 51,842 expenses



Income (loss)from $ 17,470 $ 49,594 $ (115,172 ) $ (68,615 ) $ 160,377 operations



Other expenses, net

Interest $ (10,254 ) $ (10,431 ) $ (10,329 ) $ (30,891 ) $ (37,061 )expense, net

Loss onextinguishment - - - - (29,282 )of debt

Total other $ (10,254 ) $ (10,431 ) $ (10,329 ) $ (30,891 ) $ (66,343 )expenses, net



Net income(loss) from $ 7,216 $ 39,163 $ (125,501 ) $ (99,506 ) $ 94,034 continuingoperations

Income fromdiscontinued - 7 - - 206 operations

Net income $ 7,216 $ 39,170 $ (125,501 ) $ (99,506 ) $ 94,240 (loss)

Less: incomeattributable (7,500 ) (7,500 ) (7,613 ) (22,613 ) (22,500 )to preferredunitholders

Net income(loss)attributableto common $ (284 ) $ 31,670 $ (133,114 ) $ (122,119 ) $ 71,740 unitholdersand generalpartner



Net income(loss)attributable $ (279 ) $ 31,036 $ (130,452 ) $ (119,677 ) $ 70,305 to commonunitholders

Net income(loss)attributable (5 ) 634 (2,662 ) (2,442 ) 1,435 to the generalpartner

Income (loss)fromcontinuing operations percommon unit

Basic $ (0.02 ) $ 2.53 $ (10.64 ) $ (9.76 ) $ 5.72

Diluted (0.02 ) 1.66 (10.64 ) (9.76 ) 3.91

Net income(loss) per common unit

Basic $ (0.02 ) $ 2.53 $ (10.64 ) $ (9.76 ) $ 5.73

Diluted (0.02 ) 1.66 (10.64 ) (9.76 ) 3.92



Net income $ 7,216 $ 39,170 $ (125,501 ) $ (99,506 ) $ 94,240 (loss)

Comprehensiveincome (loss)from 2,428 (520 ) 1,359 2,764 (340 )unconsolidatedinvestment andother

Comprehensive $ 9,644 $ 38,650 (124,142 ) $ (96,742 ) $ 93,900 income (loss)

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows

For the Three Months Ended

For the Nine Months Ended

September 30,

June 30,

September 30,

(In thousands)

2020

2019

2020

2020

2019

Cash flows from operating activities

Net income (loss)

$

7,216

$

39,170

$

(125,501

)

$

(99,506

)

$

94,240

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

Depreciation, depletion and amortization

2,111

3,384

2,062

6,185

11,746

Distributions from unconsolidated investment

-

6,370

7,105

14,210

25,480

Equity earnings from unconsolidated investment

(1,986

)

(13,818

)

3,058

(5,200

)

(36,833

)

Gain on asset sales and disposals

-

(6,107

)

(465

)

(465

)

(6,609

)

Loss on extinguishment of debt

-

-

-

-

29,282

Income from discontinued operations

-

(7

)

-

-

(206

)

Asset impairments

934

484

132,283

133,217

484

Bad debt expense

258

151

3,847

3,915

6,842

Unit-based compensation expense

913

466

924

2,566

1,842

Amortization of debt issuance costs and other

1,577

1,072

(1,534

)

491

3,223

Change in operating assets and liabilities:

Accounts receivable

4,621

996

8,446

7,994

(2,111

)

Accounts payable

144

355

(44

)

193

(822

)

Accrued liabilities

791

439

(915

)

(2,985

)

(5,083

)

Accrued interest

7,248

7,163

(7,351

)

6,957

19

Deferred revenue

(273

)

(1,236

)

2,202

10,194

(3,920

)

Other items, net

769

2,852

(4,182

)

(3,353

)

351

Net cash provided by operating activities of continuing operations

$

24,323

$

41,734

$

19,935

$

74,413

$

117,925

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

-

(359

)

-

1,706

(4

)

Net cash provided by operating activities

$

24,323

$

41,375

$

19,935

$

76,119

$

117,921

Cash flows from investing activities

Proceeds from asset sales and disposals

$

-

$

6,108

$

507

$

507

$

6,611

Return of long-term contract receivable

332

459

858

1,462

1,351

Acquisition of non-controlling interest in BRP

-

-

(1,000

)

(1,000

)

-

Net cash provided by investing activities of continuing operations

$

332

$

6,567

$

365

$

969

$

7,962

Net cash used in investing activities of discontinued operations

-

(122

)

-

(66

)

(556

)

Net cash provided by investing activities

$

332

$

6,445

$

365

$

903

$

7,406

Debt borrowings

$

-

$

-

$

-

$

-

$

300,000

Debt repayments

(6,780

)

(8,277

)

(2,365

)

(25,841

)

(442,747

)

Distributions to common unitholders and general partner

(5,630

)

(5,630

)

-

(11,260

)

(27,520

)

Distributions to preferred unitholders

(7,500

)

(7,500

)

(7,613

)

(22,613

)

(22,500

)

Contributions from (to) discontinued operations

-

(481

)

-

1,640

(560

)

Debt issuance costs and other

-

(25

)

-

-

(26,427

)

Net cash used in financing activities of continuing operations

$

(19,910

)

$

(21,913

)

$

(9,978

)

$

(58,074

)

$

(219,754

)

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

-

481

-

(1,640

)

560

Net cash used in financing activities

$

(19,910

)

$

(21,432

)

$

(9,978

)

$

(59,714

)

$

(219,194

)

Net increase (decrease) in cash and cash equivalents

$

4,745

$

26,388

$

10,322

$

17,308

$

(93,867

)

Cash and cash equivalents at beginning of period

110,828

85,775

100,506

98,265

206,030

Cash and cash equivalents at end of period

$

115,573

$

112,163

$

110,828

$

115,573

$

112,163

Supplemental cash flow information:

Cash paid during the period for interest

$

2,490

$

3,225

$

17,183

$

22,712

$

36,270

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

$

23

$

-

$

924

$

947

$

-

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows



For the Three Months Ended For the Nine Months Ended

September 30, June 30, September 30,

(In thousands) 2020 2019 2020 2020 2019

Cash flows fromoperating activities

Net income $ 7,216 $ 39,170 $ (125,501 ) $ (99,506 ) $ 94,240 (loss)

Adjustments toreconcile netincome (loss)to net cashprovided by operatingactivities ofcontinuingoperations:

Depreciation,depletion and 2,111 3,384 2,062 6,185 11,746 amortization

Distributionsfrom - 6,370 7,105 14,210 25,480 unconsolidatedinvestment

Equity earningsfrom (1,986 ) (13,818 ) 3,058 (5,200 ) (36,833 )unconsolidatedinvestment

Gain on assetsales and - (6,107 ) (465 ) (465 ) (6,609 )disposals

Loss onextinguishment - - - - 29,282 of debt

Income fromdiscontinued - (7 ) - - (206 )operations

Asset 934 484 132,283 133,217 484 impairments

Bad debt 258 151 3,847 3,915 6,842 expense

Unit-basedcompensation 913 466 924 2,566 1,842 expense

Amortization ofdebt issuance 1,577 1,072 (1,534 ) 491 3,223 costs and other

Change inoperating assets andliabilities:

Accounts 4,621 996 8,446 7,994 (2,111 )receivable

Accounts 144 355 (44 ) 193 (822 )payable

Accrued 791 439 (915 ) (2,985 ) (5,083 )liabilities

Accrued 7,248 7,163 (7,351 ) 6,957 19 interest

Deferred (273 ) (1,236 ) 2,202 10,194 (3,920 )revenue

Other items, 769 2,852 (4,182 ) (3,353 ) 351 net

Net cashprovided byoperating $ 24,323 $ 41,734 $ 19,935 $ 74,413 $ 117,925 activities ofcontinuingoperations

Net cashprovided by(used in)operating - (359 ) - 1,706 (4 )activities ofdiscontinuedoperations

Net cashprovided by $ 24,323 $ 41,375 $ 19,935 $ 76,119 $ 117,921 operatingactivities



Cash flows frominvesting activities

Proceeds fromasset sales and $ - $ 6,108 $ 507 $ 507 $ 6,611 disposals

Return oflong-term 332 459 858 1,462 1,351 contractreceivable

Acquisition ofnon-controlling - - (1,000 ) (1,000 ) - interest in BRP

Net cashprovided byinvesting $ 332 $ 6,567 $ 365 $ 969 $ 7,962 activities ofcontinuingoperations

Net cash usedin investingactivities of - (122 ) - (66 ) (556 )discontinuedoperations

Net cashprovided by $ 332 $ 6,445 $ 365 $ 903 $ 7,406 investingactivities



Debt borrowings $ - $ - $ - $ - $ 300,000

Debt repayments (6,780 ) (8,277 ) (2,365 ) (25,841 ) (442,747 )

Distributionsto common (5,630 ) (5,630 ) - (11,260 ) (27,520 )unitholders andgeneral partner

Distributionsto preferred (7,500 ) (7,500 ) (7,613 ) (22,613 ) (22,500 )unitholders

Contributionsfrom (to) - (481 ) - 1,640 (560 )discontinuedoperations

Debt issuance - (25 ) - - (26,427 )costs and other

Net cash usedin financingactivities of $ (19,910 ) $ (21,913 ) $ (9,978 ) $ (58,074 ) $ (219,754 )continuingoperations

Net cashprovided by(used in)financing - 481 - (1,640 ) 560 activities ofdiscontinuedoperations

Net cash usedin financing $ (19,910 ) $ (21,432 ) $ (9,978 ) $ (59,714 ) $ (219,194 )activities



Net increase(decrease) in $ 4,745 $ 26,388 $ 10,322 $ 17,308 $ (93,867 )cash and cashequivalents

Cash and cashequivalents at 110,828 85,775 100,506 98,265 206,030 beginning ofperiod

Cash and cashequivalents at $ 115,573 $ 112,163 $ 110,828 $ 115,573 $ 112,163 end of period



Supplementalcash flow information:

Cash paidduring the $ 2,490 $ 3,225 $ 17,183 $ 22,712 $ 36,270 period forinterest

Plant,equipment andmineral rightsfunded with $ 23 $ - $ 924 $ 947 $ - accountspayable oraccruedliabilities

Natural Resource Partners L.P.

Financial Tables

Consolidated Balance Sheets

September 30,

December 31,

(In thousands, except unit data)

2020

2019

ASSETS

(unaudited)

Current assets

Cash and cash equivalents

$

115,573

$

98,265

Accounts receivable, net

17,462

30,869

Other current assets, net

3,972

1,244

Current assets of discontinued operations

-

1,706

Total current assets

$

137,007

$

132,084

Land

24,008

24,008

Mineral rights, net

465,870

605,096

Intangible assets, net

17,601

17,687

Equity in unconsolidated investment

256,834

263,080

Long-term contract receivable, net

33,791

36,963

Other long-term assets, net

7,447

6,989

Total assets

$

942,558

$

1,085,907

LIABILITIES AND CAPITAL

Current liabilities

Accounts payable

$

1,372

$

1,179

Accrued liabilities

6,859

8,764

Accrued interest

9,273

2,316

Current portion of deferred revenue

11,035

4,608

Current portion of long-term debt, net

39,072

45,776

Current liabilities of discontinued operations

-

65

Total current liabilities

$

67,611

$

62,708

Deferred revenue

50,980

47,213

Long-term debt, net

452,401

470,422

Other non-current liabilities

5,020

4,949

Total liabilities

$

576,012

$

585,292

Commitments and contingencies

Class A Convertible Preferred Units (250,000 units issued and outstanding at September 30, 2020 and

December 31, 2019, at $1,000 par value per unit; liquidation preference of $1,700 per unit at September

30, 2020 and $1,500 per unit at December 31, 2019)

$

164,587

$

164,587

Partners' capital:

Common unitholders' interest (12,261,199 units issued and outstanding at September 30, 2020 and December 31, 2019)

$

134,545

$

271,471

General partner's interest

428

3,270

Warrant holders' interest

66,816

66,816

Accumulated other comprehensive income (loss)

170

(2,594

)

Total partners' capital

$

201,959

$

338,963

Non-controlling interest

-

(2,935

)

Total capital

$

201,959

$

336,028

Total liabilities and capital

$

942,558

$

1,085,907

Natural Resource Partners L.P.

Financial Tables

Consolidated Balance Sheets



September December 31, 30,

(In thousands, except unit data) 2020 2019

ASSETS (unaudited)

Current assets

Cash and cash equivalents $ 115,573 $ 98,265

Accounts receivable, net 17,462 30,869

Other current assets, net 3,972 1,244

Current assets of discontinued operations - 1,706

Total current assets $ 137,007 $ 132,084

Land 24,008 24,008

Mineral rights, net 465,870 605,096

Intangible assets, net 17,601 17,687

Equity in unconsolidated investment 256,834 263,080

Long-term contract receivable, net 33,791 36,963

Other long-term assets, net 7,447 6,989

Total assets $ 942,558 $ 1,085,907

LIABILITIES AND CAPITAL

Current liabilities

Accounts payable $ 1,372 $ 1,179

Accrued liabilities 6,859 8,764

Accrued interest 9,273 2,316

Current portion of deferred revenue 11,035 4,608

Current portion of long-term debt, net 39,072 45,776

Current liabilities of discontinued operations - 65

Total current liabilities $ 67,611 $ 62,708

Deferred revenue 50,980 47,213

Long-term debt, net 452,401 470,422

Other non-current liabilities 5,020 4,949

Total liabilities $ 576,012 $ 585,292

Commitments and contingencies

Class A Convertible Preferred Units (250,000 unitsissued and outstanding at September 30, 2020 and

December 31, 2019, at $1,000 par value per unit; $ 164,587 $ 164,587 liquidation preference of $1,700 per unit atSeptember

30, 2020 and $1,500 per unit at December 31, 2019)

Partners' capital:

Common unitholders' interest (12,261,199 unitsissued and outstanding at September 30, 2020 and $ 134,545 $ 271,471 December 31, 2019)

General partner's interest 428 3,270

Warrant holders' interest 66,816 66,816

Accumulated other comprehensive income (loss) 170 (2,594 )

Total partners' capital $ 201,959 $ 338,963

Non-controlling interest - (2,935 )

Total capital $ 201,959 $ 336,028

Total liabilities and capital $ 942,558 $ 1,085,907

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

Common Unitholders

General

Partner

Warrant Holders

AccumulatedOtherComprehensive

Income (Loss)

Partners'

Capital

Excluding

Non-

Controlling

Interest

Non-

Controlling

Interest

Total

Capital

(In thousands)

Units

Amounts

Balance at December 31, 2019

12,261

$

271,471

$

3,270

$

66,816

$

(2,594

)

$

338,963

$

(2,935

)

$

336,028

Cumulative effect of adoption of accounting standard

-

(3,833

)

(78

)

-

-

(3,911

)

-

(3,911

)

Net income (1)

-

18,403

376

-

-

18,779

-

18,779

Distributions to common unitholders and general partner

-

(5,517

)

(113

)

-

-

(5,630

)

-

(5,630

)

Distributions to preferred unitholders

-

(7,350

)

(150

)

-

-

(7,500

)

-

(7,500

)

Unit-based awards amortization and vesting

-

673

-

-

-

673

-

673

Comprehensive loss from unconsolidated investment and other

-

-

-

-

(1,023

)

(1,023

)

-

(1,023

)

Balance at March 31, 2020

12,261

$

273,847

$

3,305

$

66,816

$

(3,617

)

$

340,351

$

(2,935

)

$

337,416

Net loss (2)

-

(122,991

)

(2,510

)

-

-

(125,501

)

-

(125,501

)

Distributions to preferred unitholders

-

(7,461

)

(152

)

-

-

(7,613

)

-

(7,613

)

Purchase of non-controlling interest in BRP

-

(4,747

)

(97

)

-

(4,844

)

2,935

(1,909

)

Unit-based awards amortization and vesting

-

869

-

-

-

869

-

869

Comprehensive income from unconsolidated investment and other

-

-

-

-

1,359

1,359

-

1,359

Balance at June 30, 2020

12,261

$

139,517

$

546

$

66,816

$

(2,258

)

$

204,621

$

-

$

204,621

Net income (1)

-

7,072

144

-

-

7,216

-

7,216

Distributions to common unitholders and general partner

-

(5,518

)

(112

)

-

-

(5,630

)

-

(5,630

)

Distributions to preferred unitholders

-

(7,350

)

(150

)

-

-

(7,500

)

-

(7,500

)

Unit-based awards amortization and vesting

-

824

-

-

-

824

-

824

Comprehensive income from unconsolidated investment and other

-

-

-

-

2,428

2,428

-

2,428

Balance at September 30, 2020

12,261

$

134,545

$

428

$

66,816

$

170

$

201,959

$

-

$

201,959

____________________

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

Partners' Capital Common Unitholders Accumulated Non- General Warrant Other Excluding Total Holders Comprehensive Controlling Partner Non- Capital Income (Loss) Interest Controlling(In thousands) Units Amounts Interest

Balance atDecember 31, 12,261 $ 271,471 $ 3,270 $ 66,816 $ (2,594 ) $ 338,963 $ (2,935 ) $ 336,028 2019

Cumulativeeffect ofadoption of - (3,833 ) (78 ) - - (3,911 ) - (3,911 )accountingstandard

Net income ^(1) - 18,403 376 - - 18,779 - 18,779

Distributionsto common - (5,517 ) (113 ) - - (5,630 ) - (5,630 )unitholders andgeneral partner

Distributionsto preferred - (7,350 ) (150 ) - - (7,500 ) - (7,500 )unitholders

Unit-basedawards - 673 - - - 673 - 673 amortizationand vesting

Comprehensiveloss fromunconsolidated - - - - (1,023 ) (1,023 ) - (1,023 )investment andother

Balance at 12,261 $ 273,847 $ 3,305 $ 66,816 $ (3,617 ) $ 340,351 $ (2,935 ) $ 337,416 March 31, 2020

Net loss ^(2) - (122,991 ) (2,510 ) - - (125,501 ) - (125,501 )

Distributionsto preferred - (7,461 ) (152 ) - - (7,613 ) - (7,613 )unitholders

Purchase ofnon-controlling - (4,747 ) (97 ) - (4,844 ) 2,935 (1,909 )interest in BRP

Unit-basedawards - 869 - - - 869 - 869 amortizationand vesting

Comprehensiveincome fromunconsolidated - - - - 1,359 1,359 - 1,359 investment andother

Balance at June 12,261 $ 139,517 $ 546 $ 66,816 $ (2,258 ) $ 204,621 $ - $ 204,621 30, 2020

Net income ^(1) - 7,072 144 - - 7,216 - 7,216

Distributionsto common - (5,518 ) (112 ) - - (5,630 ) - (5,630 )unitholders andgeneral partner

Distributionsto preferred - (7,350 ) (150 ) - - (7,500 ) - (7,500 )unitholders

Unit-basedawards - 824 - - - 824 - 824 amortizationand vesting

Comprehensiveincome fromunconsolidated - - - - 2,428 2,428 - 2,428 investment andother

Balance atSeptember 30, 12,261 $ 134,545 $ 428 $ 66,816 $ 170 $ 201,959 $ - $ 201,959 2020

____________________

Net income includes $7.5 million attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to(1) the common unitholders and $0.15 million is allocated to the general partner.

Net loss includes $7.6 million attributable to preferred unitholders that(2) accumulated during the period, of which $7.46 million is allocated to the common unitholders and $0.15 million is allocated to the general partner.

Common Unitholders

General

Partner

Warrant

Holders

AccumulatedOtherComprehensiveLoss

Partners'

Capital

Excluding

Non-

Controlling

Interest

Non-

Controlling Interest

Total

Capital

(In thousands)

Units

Amounts

Balance at December 31, 2018

12,249

$

355,113

$

5,014

$

66,816

$

(3,462

)

$

423,481

$

(2,935

)

$

420,546

Net income (1)

-

35,005

714

-

-

35,719

-

35,719

Distributions to common unitholders and general partner

-

(5,513

)

(112

)

-

-

(5,625

)

-

(5,625

)

Distributions to preferred unitholders

-

(7,350

)

(150

)

-

-

(7,500

)

-

(7,500

)

Issuance of unit-based awards

12

486

-

-

-

486

-

486

Unit-based awards amortization and vesting

-

399

-

-

-

399

-

399

Comprehensive income from unconsolidated investment and other

-

-

10

-

1,005

1,015

-

1,015

Balance at March 31, 2019

12,261

$

378,140

$

5,476

$

66,816

$

(2,457

)

$

447,975

$

(2,935

)

$

445,040

Net income (1)

-

18,964

387

-

-

19,351

-

19,351

Distributions to common unitholders and general partner

-

(15,939

)

(326

)

-

-

(16,265

)

-

(16,265

)

Distributions to preferred unitholders

-

(7,350

)

(150

)

-

-

(7,500

)

-

(7,500

)

Unit-based awards amortization and vesting

-

460

-

-

-

460

-

460

Comprehensive loss from unconsolidated investment and other

-

-

-

-

(825

)

(825

)

-

(825

)

Balance at June 30, 2019

12,261

$

374,275

$

5,387

$

66,816

$

(3,282

)

$

443,196

$

(2,935

)

$

440,261

Net income (1)

-

38,386

784

-

-

39,170

-

39,170

Distributions to common unitholders and general partner

-

(5,518

)

(112

)

-

-

(5,630

)

-

(5,630

)

Distributions to preferred unitholders

-

(7,350

)

(150

)

-

-

(7,500

)

-

(7,500

)

Unit-based awards amortization and vesting

-

473

-

-

-

473

-

473

Comprehensive loss from unconsolidated investment and other

-

-

-

-

(520

)

(520

)

-

(520

)

Balance at September 30, 2019

12,261

$

400,266

$

5,909

$

66,816

$

(3,802

)

$

469,189

$

(2,935

)

$

466,254

____________________

Partners'

Capital Common Unitholders General Warrant Accumulated Excluding Non- Total Other Partner Holders Comprehensive Non- Controlling Capital Loss Interest Controlling(In thousands) Units Amounts Interest

Balance atDecember 31, 12,249 $ 355,113 $ 5,014 $ 66,816 $ (3,462 ) $ 423,481 $ (2,935 ) $ 420,546 2018

Net income ^ - 35,005 714 - - 35,719 - 35,719 (1)

Distributionsto commonunitholders - (5,513 ) (112 ) - - (5,625 ) - (5,625 )and generalpartner

Distributionsto preferred - (7,350 ) (150 ) - - (7,500 ) - (7,500 )unitholders

Issuance ofunit-based 12 486 - - - 486 - 486 awards

Unit-basedawards - 399 - - - 399 - 399 amortizationand vesting

Comprehensiveincome fromunconsolidated - - 10 - 1,005 1,015 - 1,015 investment andother

Balance at 12,261 $ 378,140 $ 5,476 $ 66,816 $ (2,457 ) $ 447,975 $ (2,935 ) $ 445,040 March 31, 2019

Net income ^ - 18,964 387 - - 19,351 - 19,351 (1)

Distributionsto commonunitholders - (15,939 ) (326 ) - - (16,265 ) - (16,265 )and generalpartner

Distributionsto preferred - (7,350 ) (150 ) - - (7,500 ) - (7,500 )unitholders

Unit-basedawards - 460 - - - 460 - 460 amortizationand vesting

Comprehensiveloss fromunconsolidated - - - - (825 ) (825 ) - (825 )investment andother

Balance at 12,261 $ 374,275 $ 5,387 $ 66,816 $ (3,282 ) $ 443,196 $ (2,935 ) $ 440,261 June 30, 2019

Net income^ - 38,386 784 - - 39,170 - 39,170 (1)

Distributionsto commonunitholders - (5,518 ) (112 ) - - (5,630 ) - (5,630 )and generalpartner

Distributionsto preferred - (7,350 ) (150 ) - - (7,500 ) - (7,500 )unitholders

Unit-basedawards - 473 - - - 473 - 473 amortizationand vesting

Comprehensiveloss fromunconsolidated - - - - (520 ) (520 ) - (520 )investment andother

Balance atSeptember 30, 12,261 $ 400,266 $ 5,909 $ 66,816 $ (3,802 ) $ 469,189 $ (2,935 ) $ 466,254 2019

____________________

Net income includes $7.5 million attributable to preferred unitholders that accumulated during the period, of which $7.35 million is allocated to(1) the common unitholders and $0.15 million is allocated to the general partner.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment for the three months ended September 30, 2020 and 2019 and June 30, 2020:

Operating Segments

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Three Months Ended September 30, 2020

Revenues

$

27,944

$

1,986

$

-

$

29,930

Gain on asset sales and disposals

-

-

-

-

Total revenues and other income

$

27,944

$

1,986

$

-

$

29,930

Asset impairments

934

$

-

$

-

$

934

Net income (loss) from continuing operations

19,173

1,890

(13,847

)

$

7,216

Adjusted EBITDA (1)

$

22,259

$

(96

)

$

(3,634

)

$

18,529

Cash flow provided by (used in) continuing operations:

Operating activities

$

28,573

$

(75

)

$

(4,175

)

$

24,323

Investing activities

$

332

$

-

$

-

$

332

Financing activities

$

-

$

-

$

(19,910

)

$

(19,910

)

Distributable cash flow (1)

$

28,905

$

(75

)

$

(4,175

)

$

24,655

Free cash flow (1)

$

28,905

$

(75

)

$

(4,175

)

$

24,655

For the Three Months Ended September 30, 2019

Revenues

$

43,784

$

13,818

$

-

$

57,602

Gain on asset sales and disposals

6,107

-

-

6,107

Total revenues and other income

$

49,891

$

13,818

$

-

$

63,709

Asset impairments

$

484

$

-

$

-

$

484

Net income (loss) from continuing operations

$

40,252

$

13,595

$

(14,684

)

$

39,163

Adjusted EBITDA (1)

$

44,120

$

6,147

$

(4,253

)

$

46,014

Cash flow provided by (used in) continuing operations:

Operating activities

$

41,094

$

6,147

$

(5,507

)

$

41,734

Investing activities

$

6,567

$

-

$

-

$

6,567

Financing activities

$

-

$

-

$

(21,913

)

$

(21,913

)

Distributable cash flow (1) (2)

$

47,661

$

6,147

$

(5,507

)

$

48,179

Free cash flow (1)

$

41,553

$

6,147

$

(5,507

)

$

42,193

For the Three Months Ended June 30, 2020

Revenues

$

33,604

$

(3,058

)

$

-

$

30,546

Gain on asset sales and disposals

465

-

-

465

Total revenues and other income (loss)

$

34,069

$

(3,058

)

$

-

$

31,011

Asset impairments

$

132,283

$

-

$

-

$

132,283

Net loss from continuing operations

(108,479

)

$

(3,087

)

$

(13,935

)

$

(125,501

)

Adjusted EBITDA (1)

$

25,881

$

7,076

$

(3,621

)

$

29,336

Cash flow provided by (used in) continuing operations:

Operating activities

$

31,953

$

7,077

$

(19,095

)

$

19,935

Investing activities

$

365

$

-

$

-

$

365

Financing activities

$

-

$

-

$

(9,978

)

$

(9,978

)

Distributable cash flow (1)

$

33,318

$

7,077

$

(19,095

)

$

21,300

Free cash flow (1)

$

31,811

$

7,077

$

(19,095

)

$

19,793

____________________

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment forthe three months ended September 30, 2020 and 2019 and June 30, 2020:

Operating Segments

Coal Corporate Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Three MonthsEnded September 30, 2020

Revenues $ 27,944 $ 1,986 $ - $ 29,930

Gain on asset sales and - - - - disposals

Total revenues and $ 27,944 $ 1,986 $ - $ 29,930 other income

Asset impairments 934 $ - $ - $ 934

Net income (loss) from 19,173 1,890 (13,847 ) $ 7,216 continuing operations

Adjusted EBITDA ^(1) $ 22,259 $ (96 ) $ (3,634 ) $ 18,529

Cash flow provided by(used in) continuing operations:

Operating activities $ 28,573 $ (75 ) $ (4,175 ) $ 24,323

Investing activities $ 332 $ - $ - $ 332

Financing activities $ - $ - $ (19,910 ) $ (19,910 )

Distributable cash flow $ 28,905 $ (75 ) $ (4,175 ) $ 24,655 ^(1)

Free cash flow^ (1) $ 28,905 $ (75 ) $ (4,175 ) $ 24,655



For the Three MonthsEnded September 30, 2019

Revenues $ 43,784 $ 13,818 $ - $ 57,602

Gain on asset sales and 6,107 - - 6,107 disposals

Total revenues and $ 49,891 $ 13,818 $ - $ 63,709 other income

Asset impairments $ 484 $ - $ - $ 484

Net income (loss) from $ 40,252 $ 13,595 $ (14,684 ) $ 39,163 continuing operations

Adjusted EBITDA ^(1) $ 44,120 $ 6,147 $ (4,253 ) $ 46,014

Cash flow provided by(used in) continuing operations:

Operating activities $ 41,094 $ 6,147 $ (5,507 ) $ 41,734

Investing activities $ 6,567 $ - $ - $ 6,567

Financing activities $ - $ - $ (21,913 ) $ (21,913 )

Distributable cash flow $ 47,661 $ 6,147 $ (5,507 ) $ 48,179 ^ (1) (2)

Free cash flow^ (1) $ 41,553 $ 6,147 $ (5,507 ) $ 42,193



For the Three Months Ended June 30, 2020

Revenues $ 33,604 $ (3,058 ) $ - $ 30,546

Gain on asset sales and 465 - - 465 disposals

Total revenues and $ 34,069 $ (3,058 ) $ - $ 31,011 other income (loss)

Asset impairments $ 132,283 $ - $ - $ 132,283

Net loss from (108,479 ) $ (3,087 ) $ (13,935 ) $ (125,501 )continuing operations

Adjusted EBITDA ^(1) $ 25,881 $ 7,076 $ (3,621 ) $ 29,336

Cash flow provided by(used in) continuing operations:

Operating activities $ 31,953 $ 7,077 $ (19,095 ) $ 19,935

Investing activities $ 365 $ - $ - $ 365

Financing activities $ - $ - $ (9,978 ) $ (9,978 )

Distributable cash flow $ 33,318 $ 7,077 $ (19,095 ) $ 21,300 ^(1)

Free cash flow ^(1) $ 31,811 $ 7,077 $ (19,095 ) $ 19,793

____________________

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

Includes net proceeds from the sale of the construction aggregates(2) business which are classified as investing cash flow from discontinued operations.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment for the nine months ended September 30, 2020 and 2019:

Operating Business Segments

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Nine Months Ended September 30, 2020

Revenues

$

95,490

$

5,200

$

-

$

100,690

Gain on asset sales and disposals

465

-

-

465

Total revenues and other income

$

95,955

$

5,200

$

-

$

101,155

Asset impairments

$

133,217

$

-

$

-

$

133,217

Net income (loss) from continuing operations

$

(62,562

)

$

5,059

$

(42,003

)

$

(99,506

)

Adjusted EBITDA (1)

$

76,896

$

14,069

$

(11,168

)

$

79,797

Cash flow provided by (used in) continuing operations:

Operating activities

$

91,082

$

14,091

$

(30,760

)

$

74,413

Investing activities

$

969

$

-

$

-

$

969

Financing activities

$

-

$

-

$

(58,074

)

$

(58,074

)

Distributable cash flow (1) (2)

$

93,051

$

14,091

$

(30,760

)

$

76,316

Free cash flow (1)

$

91,544

$

14,091

$

(30,760

)

$

74,875

For the Nine Months Ended September 30, 2019

Revenues

$

168,777

$

36,833

$

-

$

205,610

Gain on asset sales and disposals

6,609

-

-

6,609

Total revenues and other income

$

175,386

$

36,833

$

-

$

212,219

Asset impairments

$

484

$

-

$

-

$

484

Net income (loss) from continuing operations

$

136,566

$

36,610

$

(79,142

)

$

94,034

Adjusted EBITDA (1)

$

148,796

$

25,257

$

(12,799

)

$

161,254

Cash flow provided by (used in) continuing operations:

Operating activities

$

139,821

$

25,257

$

(47,153

)

$

117,925

Investing activities

$

7,962

$

-

$

-

$

7,962

Financing activities

$

-

$

-

$

(219,754

)

$

(219,754

)

Distributable cash flow (1) (2)

$

147,783

$

25,257

$

(47,153

)

$

125,331

Free cash flow (1)

$

141,172

$

25,257

$

(47,153

)

$

119,276

____________________

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment forthe nine months ended September 30, 2020 and 2019:

Operating Business Segments

Coal Corporate Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Nine MonthsEnded September 30, 2020

Revenues $ 95,490 $ 5,200 $ - $ 100,690

Gain on asset sales 465 - - 465 and disposals

Total revenues and $ 95,955 $ 5,200 $ - $ 101,155 other income

Asset impairments $ 133,217 $ - $ - $ 133,217

Net income (loss) from $ (62,562 ) $ 5,059 $ (42,003 ) $ (99,506 )continuing operations

Adjusted EBITDA ^(1) $ 76,896 $ 14,069 $ (11,168 ) $ 79,797

Cash flow provided by(used in) continuing operations:

Operating activities $ 91,082 $ 14,091 $ (30,760 ) $ 74,413

Investing activities $ 969 $ - $ - $ 969

Financing activities $ - $ - $ (58,074 ) $ (58,074 )

Distributable cash $ 93,051 $ 14,091 $ (30,760 ) $ 76,316 flow ^(1) (2)

Free cash flow ^(1) $ 91,544 $ 14,091 $ (30,760 ) $ 74,875



For the Nine MonthsEnded September 30, 2019

Revenues $ 168,777 $ 36,833 $ - $ 205,610

Gain on asset sales 6,609 - - 6,609 and disposals

Total revenues and $ 175,386 $ 36,833 $ - $ 212,219 other income

Asset impairments $ 484 $ - $ - $ 484

Net income (loss) from $ 136,566 $ 36,610 $ (79,142 ) $ 94,034 continuing operations

Adjusted EBITDA ^(1) $ 148,796 $ 25,257 $ (12,799 ) $ 161,254

Cash flow provided by(used in) continuing operations:

Operating activities $ 139,821 $ 25,257 $ (47,153 ) $ 117,925

Investing activities $ 7,962 $ - $ - $ 7,962

Financing activities $ - $ - $ (219,754 ) $ (219,754 )

Distributable cash $ 147,783 $ 25,257 $ (47,153 ) $ 125,331 flow ^(1) (2)

Free cash flow ^(1) $ 141,172 $ 25,257 $ (47,153 ) $ 119,276

____________________

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

Includes net proceeds from the sale of the construction aggregates(2) business which are classified as investing cash flow from discontinued operations.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Operating Statistics - Coal Royalty and Other

For the Three Months Ended

For the Nine Months Ended

September 30,

June 30,

September 30,

(In thousands, except per ton data)

2020

2019

2020

2020

2019

Coal sales volumes (tons)

Appalachia

Northern (1)

102

290

87

516

2,774

Central

2,247

3,222

2,463

7,643

10,469

Southern

172

438

426

820

1,172

Total Appalachia

2,521

3,950

2,976

8,979

14,415

Illinois Basin

758

551

578

1,841

1,646

Northern Powder River Basin

365

532

340

1,232

1,979

Total coal sales volumes

3,644

5,033

3,894

12,052

18,040

Coal royalty revenue per ton

Appalachia

Northern (1)

$

3.06

$

2.54

$

2.74

$

2.22

$

2.23

Central

3.83

5.25

4.04

4.28

5.79

Southern

4.78

5.99

4.96

4.70

7.00

Illinois Basin

1.63

4.82

1.97

2.48

4.70

Northern Powder River Basin

3.46

4.69

3.15

3.66

3.21

Combined average coal royalty revenue per ton

3.36

5.05

3.73

3.88

4.94

Coal royalty revenues

Appalachia

Northern (1)

$

312

$

735

$

238

$

1,143

$

6,173

Central

8,602

16,929

9,951

32,726

60,628

Southern

823

2,626

2,111

3,857

8,204

Total Appalachia

9,737

20,290

12,300

37,726

75,005

Illinois Basin

1,234

2,658

1,137

4,570

7,739

Northern Powder River Basin

1,262

2,492

1,071

4,510

6,347

Unadjusted coal royalty revenues

12,233

25,440

14,508

46,806

89,091

Coal royalty adjustment for minimum leases (2)

(1,623

)

(713

)

(3,661

)

(6,247

)

(1,530

)

Total coal royalty revenues

$

10,610

$

24,727

$

10,847

$

40,559

$

87,561

Other revenues

Production lease minimum revenues (2)

$

4,267

$

2,752

$

8,485

$

13,554

$

21,331

Minimum lease straight-line revenues (2)

3,553

3,982

4,987

12,349

11,152

Property tax revenues

1,896

1,606

761

4,256

4,416

Wheelage revenues

1,680

1,675

1,584

5,468

5,035

Coal overriding royalty revenues

1,314

2,189

683

3,319

10,163

Lease amendment revenues

858

1,535

890

2,591

6,720

Aggregates royalty revenues

221

954

271

1,068

3,655

Oil and gas royalty revenues

1,078

374

2,742

4,923

2,575

Other revenues

263

125

416

752

1,429

Total other revenues

$

15,130

$

15,192

$

20,819

$

48,280

$

66,476

Coal royalty and other

$

25,740

$

39,919

$

31,666

$

88,839

$

154,037

Transportation and processing services revenues

2,204

3,865

1,938

6,651

14,740

Gain on asset sales and disposals

-

6,107

465

465

6,609

Total Coal Royalty and Other segment revenues and other income

$

27,944

$

49,891

$

34,069

$

95,955

$

175,386

____________________

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Operating Statistics - Coal Royalty and Other



For the Three Months Ended For the Nine Months Ended

September 30, June 30, September 30,

(In thousands,except per ton 2020 2019 2020 2020 2019data)

Coal sales volumes (tons)

Appalachia

Northern ^(1) 102 290 87 516 2,774

Central 2,247 3,222 2,463 7,643 10,469

Southern 172 438 426 820 1,172

Total 2,521 3,950 2,976 8,979 14,415 Appalachia

Illinois Basin 758 551 578 1,841 1,646

NorthernPowder River 365 532 340 1,232 1,979 Basin

Total coal 3,644 5,033 3,894 12,052 18,040 sales volumes

Coal royaltyrevenue per ton

Appalachia

Northern ^(1) $ 3.06 $ 2.54 $ 2.74 $ 2.22 $ 2.23

Central 3.83 5.25 4.04 4.28 5.79

Southern 4.78 5.99 4.96 4.70 7.00

Illinois Basin 1.63 4.82 1.97 2.48 4.70

NorthernPowder River 3.46 4.69 3.15 3.66 3.21 Basin

Combinedaverage coalroyalty 3.36 5.05 3.73 3.88 4.94 revenue perton

Coal royalty revenues

Appalachia

Northern ^(1) $ 312 $ 735 $ 238 $ 1,143 $ 6,173

Central 8,602 16,929 9,951 32,726 60,628

Southern 823 2,626 2,111 3,857 8,204

Total 9,737 20,290 12,300 37,726 75,005 Appalachia

Illinois Basin 1,234 2,658 1,137 4,570 7,739

NorthernPowder River 1,262 2,492 1,071 4,510 6,347 Basin

Unadjustedcoal royalty 12,233 25,440 14,508 46,806 89,091 revenues

Coal royaltyadjustment for (1,623 ) (713 ) (3,661 ) (6,247 ) (1,530 )minimum leases^ (2)

Total coalroyalty $ 10,610 $ 24,727 $ 10,847 $ 40,559 $ 87,561 revenues

Other revenues

Productionlease minimum $ 4,267 $ 2,752 $ 8,485 $ 13,554 $ 21,331 revenues ^(2)

Minimum leasestraight-line 3,553 3,982 4,987 12,349 11,152 revenues ^(2)

Property tax 1,896 1,606 761 4,256 4,416 revenues

Wheelage 1,680 1,675 1,584 5,468 5,035 revenues

Coaloverriding 1,314 2,189 683 3,319 10,163 royaltyrevenues

Leaseamendment 858 1,535 890 2,591 6,720 revenues

Aggregatesroyalty 221 954 271 1,068 3,655 revenues

Oil and gasroyalty 1,078 374 2,742 4,923 2,575 revenues

Other revenues 263 125 416 752 1,429

Total other $ 15,130 $ 15,192 $ 20,819 $ 48,280 $ 66,476 revenues

Coal royalty $ 25,740 $ 39,919 $ 31,666 $ 88,839 $ 154,037 and other

Transportationand processing 2,204 3,865 1,938 6,651 14,740 servicesrevenues

Gain on assetsales and - 6,107 465 465 6,609 disposals

Total CoalRoyalty andOther segment $ 27,944 $ 49,891 $ 34,069 $ 95,955 $ 175,386 revenues andother income

____________________

(1) Northern Appalachia includes NRP's Hibbs Run property that has significant sales volumes, but a low fixed rate per ton.

Beginning April 1, 2020 and effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as(2) production lease minimum revenues or minimum lease straight-line revenues due to contract modifications that fixed consideration paid to us over a two-year period.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Three Months Ended September 30, 2020

Net income (loss) from continuing operations

19,173

1,890

(13,847

)

$

7,216

Less: equity earnings from unconsolidated investment

-

(1,986

)

-

(1,986

)

Add: total distributions from unconsolidated investment

-

-

-

-

Add: interest expense, net

41

-

10,213

10,254

Add: loss on extinguishment of debt

-

-

-

-

Add: depreciation, depletion and amortization

2,111

-

-

2,111

Add: asset impairments

934

-

-

934

Adjusted EBITDA

$

22,259

$

(96

)

$

(3,634

)

$

18,529

For the Three Months Ended September 30, 2019

Net income (loss) from continuing operations

$

40,252

$

13,595

$

(14,684

)

$

39,163

Less: equity earnings from unconsolidated investment

-

(13,818

)

-

(13,818

)

Add: total distributions from unconsolidated investment

-

6,370

-

6,370

Add: interest expense, net

-

-

10,431

10,431

Add: loss on extinguishment of debt

-

-

-

-

Add: depreciation, depletion and amortization

3,384

-

-

3,384

Add: asset impairments

484

-

-

484

Adjusted EBITDA

$

44,120

$

6,147

$

(4,253

)

$

46,014

For the Three Months Ended June 30, 2020

Net loss from continuing operations

$

(108,479

)

$

(3,087

)

(13,935

)

$

(125,501

)

Less: equity earnings from unconsolidated investment

-

3,058

-

3,058

Add: total distributions from unconsolidated investment

-

7,105

-

7,105

Add: interest expense, net

15

-

10,314

10,329

Add: loss on extinguishment of debt

-

-

-

-

Add: depreciation, depletion and amortization

2,062

-

-

2,062

Add: asset impairments

132,283

-

-

132,283

Adjusted EBITDA

$

25,881

$

7,076

$

(3,621

)

$

29,336

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA



Corporate Coal Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Three MonthsEnded September 30, 2020

Net income (loss) from 19,173 1,890 (13,847 ) $ 7,216 continuing operations

Less: equity earningsfrom unconsolidated - (1,986 ) - (1,986 )investment

Add: totaldistributions from - - - - unconsolidatedinvestment

Add: interest expense, 41 - 10,213 10,254 net

Add: loss on - - - - extinguishment of debt

Add: depreciation,depletion and 2,111 - - 2,111 amortization

Add: asset impairments 934 - - 934

Adjusted EBITDA $ 22,259 $ (96 ) $ (3,634 ) $ 18,529



For the Three MonthsEnded September 30, 2019

Net income (loss) from $ 40,252 $ 13,595 $ (14,684 ) $ 39,163 continuing operations

Less: equity earningsfrom unconsolidated - (13,818 ) - (13,818 )investment

Add: totaldistributions from - 6,370 - 6,370 unconsolidatedinvestment

Add: interest expense, - - 10,431 10,431 net

Add: loss on - - - - extinguishment of debt

Add: depreciation,depletion and 3,384 - - 3,384 amortization

Add: asset impairments 484 - - 484

Adjusted EBITDA $ 44,120 $ 6,147 $ (4,253 ) $ 46,014



For the Three Months Ended June 30, 2020

Net loss from $ (108,479 ) $ (3,087 ) (13,935 ) $ (125,501 )continuing operations

Less: equity earningsfrom unconsolidated - 3,058 - 3,058 investment

Add: totaldistributions from - 7,105 - 7,105 unconsolidatedinvestment

Add: interest expense, 15 - 10,314 10,329 net

Add: loss on - - - - extinguishment of debt

Add: depreciation,depletion and 2,062 - - 2,062 amortization

Add: asset impairments 132,283 - - 132,283

Adjusted EBITDA $ 25,881 $ 7,076 $ (3,621 ) $ 29,336

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Adjusted EBITDA

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Nine Months Ended September 30, 2020

Net income (loss) from continuing operations

$

(62,562

)

$

5,059

$

(42,003

)

$

(99,506

)

Less: equity earnings from unconsolidated investment

-

(5,200

)

-

(5,200

)

Add: total distributions from unconsolidated investment

-

14,210

-

14,210

Add: interest expense, net

56

-

30,835

30,891

Add: loss on extinguishment of debt

-

-

-

-

Add: depreciation, depletion and amortization

6,185

-

-

6,185

Add: asset impairments

133,217

-

-

133,217

Adjusted EBITDA

$

76,896

$

14,069

$

(11,168

)

$

79,797

For the Nine Months Ended September 30, 2019

Net income (loss) from continuing operations

$

136,566

$

36,610

$

(79,142

)

$

94,034

Less: equity earnings from unconsolidated investment

-

(36,833

)

-

(36,833

)

Add: total distributions from unconsolidated investment

-

25,480

-

25,480

Add: interest expense, net

-

-

37,061

37,061

Add: loss on extinguishment of debt

-

-

29,282

29,282

Add: depreciation, depletion and amortization

11,746

-

-

11,746

Add: asset impairments

484

-

-

484

Adjusted EBITDA

$

148,796

$

25,257

$

(12,799

)

$

161,254

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Adjusted EBITDA



Coal Corporate Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Nine Months Ended September 30, 2020

Net income (loss) from $ (62,562 ) $ 5,059 $ (42,003 ) $ (99,506 )continuing operations

Less: equity earningsfrom unconsolidated - (5,200 ) - (5,200 )investment

Add: total distributionsfrom unconsolidated - 14,210 - 14,210 investment

Add: interest expense, 56 - 30,835 30,891 net

Add: loss on - - - - extinguishment of debt

Add: depreciation,depletion and 6,185 - - 6,185 amortization

Add: asset impairments 133,217 - - 133,217

Adjusted EBITDA $ 76,896 $ 14,069 $ (11,168 ) $ 79,797



For the Nine Months Ended September 30, 2019

Net income (loss) from $ 136,566 $ 36,610 $ (79,142 ) $ 94,034 continuing operations

Less: equity earningsfrom unconsolidated - (36,833 ) - (36,833 )investment

Add: total distributionsfrom unconsolidated - 25,480 - 25,480 investment

Add: interest expense, - - 37,061 37,061 net

Add: loss on - - 29,282 29,282 extinguishment of debt

Add: depreciation,depletion and 11,746 - - 11,746 amortization

Add: asset impairments 484 - - 484

Adjusted EBITDA $ 148,796 $ 25,257 $ (12,799 ) $ 161,254

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Three Months Ended September 30, 2020

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

$

28,573

$

(75

)

$

(4,175

)

24,323

Add: proceeds from asset sales and disposals

-

-

-

-

Add: proceeds from sale of discontinued operations

-

-

-

-

Add: return of long-term contract receivable

332

-

-

332

Distributable cash flow

$

28,905

$

(75

)

$

(4,175

)

$

24,655

Less: proceeds from asset sales and disposals

-

-

-

-

Less: proceeds from sale of discontinued operations

-

-

-

-

Less: acquisition costs

-

-

-

-

Free cash flow

$

28,905

$

(75

)

$

(4,175

)

$

24,655

For the Three Months Ended September 30, 2019

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

$

41,094

$

6,147

$

(5,507

)

$

41,734

Add: proceeds from asset sales and disposals

6,108

-

-

6,108

Add: proceeds from sale of discontinued operations

-

-

-

(122

)

Add: return of long-term contract receivable

459

-

-

459

Distributable cash flow

$

47,661

$

6,147

$

(5,507

)

$

48,179

Less: proceeds from asset sales and disposals

(6,108

)

-

-

(6,108

)

Less: proceeds from sale of discontinued operations

-

-

-

122

Less: acquisition costs

-

-

-

-

Free cash flow

$

41,553

$

6,147

$

(5,507

)

$

42,193

For the Three Months Ended June 30, 2020

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

$

31,953

$

7,077

$

(19,095

)

$

19,935

Add: proceeds from asset sales and disposals

507

-

-

507

Add: proceeds from sale of discontinued operations

-

-

-

-

Add: return of long-term contract receivable

858

-

-

858

Distributable cash flow

$

33,318

$

7,077

$

(19,095

)

$

21,300

Less: proceeds from asset sales and disposals

(507

)

-

-

(507

)

Less: proceeds from sale of discontinued operations

-

-

-

-

Less: acquisition costs

(1,000

)

-

-

(1,000

)

Free cash flow

$

31,811

$

7,077

$

(19,095

)

$

19,793

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow



Coal Corporate Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Three Months Ended September 30, 2020

Net cash provided by (usedin) operating activities of $ 28,573 $ (75 ) $ (4,175 ) 24,323 continuing operations

Add: proceeds from asset - - - - sales and disposals

Add: proceeds from sale of - - - - discontinued operations

Add: return of long-term 332 - - 332 contract receivable

Distributable cash flow $ 28,905 $ (75 ) $ (4,175 ) $ 24,655

Less: proceeds from asset - - - - sales and disposals

Less: proceeds from sale of - - - - discontinued operations

Less: acquisition costs - - - -

Free cash flow $ 28,905 $ (75 ) $ (4,175 ) $ 24,655



For the Three Months Ended September 30, 2019

Net cash provided by (usedin) operating activities of $ 41,094 $ 6,147 $ (5,507 ) $ 41,734 continuing operations

Add: proceeds from asset 6,108 - - 6,108 sales and disposals

Add: proceeds from sale of - - - (122 )discontinued operations

Add: return of long-term 459 - - 459 contract receivable

Distributable cash flow $ 47,661 $ 6,147 $ (5,507 ) $ 48,179

Less: proceeds from asset (6,108 ) - - (6,108 )sales and disposals

Less: proceeds from sale of - - - 122 discontinued operations

Less: acquisition costs - - - -

Free cash flow $ 41,553 $ 6,147 $ (5,507 ) $ 42,193



For the Three Months Ended June 30, 2020

Net cash provided by (usedin) operating activities of $ 31,953 $ 7,077 $ (19,095 ) $ 19,935 continuing operations

Add: proceeds from asset 507 - - 507 sales and disposals

Add: proceeds from sale of - - - - discontinued operations

Add: return of long-term 858 - - 858 contract receivable

Distributable cash flow $ 33,318 $ 7,077 $ (19,095 ) $ 21,300

Less: proceeds from asset (507 ) - - (507 )sales and disposals

Less: proceeds from sale of - - - - discontinued operations

Less: acquisition costs (1,000 ) - - (1,000 )

Free cash flow $ 31,811 $ 7,077 $ (19,095 ) $ 19,793

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Nine Months Ended September 30, 2020

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

$

91,082

$

14,091

$

(30,760

)

$

74,413

Add: proceeds from asset sales and disposals

507

-

-

507

Add: proceeds from sale of discontinued operations

-

-

-

(66

)

Add: return of long-term contract receivable

1,462

-

-

1,462

Distributable cash flow

$

93,051

$

14,091

$

(30,760

)

$

76,316

Less: proceeds from asset sales and disposals

(507

)

-

-

(507

)

Less: proceeds from sale of discontinued operations

-

-

-

66

Less: acquisition costs

(1,000

)

-

-

(1,000

)

Free cash flow

$

91,544

$

14,091

$

(30,760

)

$

74,875

For the Nine Months Ended September 30, 2019

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

$

139,821

$

25,257

$

(47,153

)

$

117,925

Add: proceeds from asset sales and disposals

6,611

-

-

6,611

Add: proceeds from sale of discontinued operations

-

-

-

(556

)

Add: return of long-term contract receivable

1,351

-

-

1,351

Distributable cash flow

$

147,783

$

25,257

$

(47,153

)

$

125,331

Less: proceeds from asset sales and disposals

(6,611

)

-

-

(6,611

)

Less: proceeds from sale of discontinued operations

-

-

-

556

Less: acquisition costs

-

-

-

-

Free cash flow

$

141,172

$

25,257

$

(47,153

)

$

119,276

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Distributable Cash Flow and Free Cash Flow



Coal Corporate Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Nine Months Ended September 30, 2020

Net cash provided by(used in) operating $ 91,082 $ 14,091 $ (30,760 ) $ 74,413 activities of continuingoperations

Add: proceeds from asset 507 - - 507 sales and disposals

Add: proceeds from saleof discontinued - - - (66 )operations

Add: return of long-term 1,462 - - 1,462 contract receivable

Distributable cash flow $ 93,051 $ 14,091 $ (30,760 ) $ 76,316

Less: proceeds fromasset sales and (507 ) - - (507 )disposals

Less: proceeds from saleof discontinued - - - 66 operations

Less: acquisition costs (1,000 ) - - (1,000 )

Free cash flow $ 91,544 $ 14,091 $ (30,760 ) $ 74,875



For the Nine Months Ended September 30, 2019

Net cash provided by(used in) operating $ 139,821 $ 25,257 $ (47,153 ) $ 117,925 activities of continuingoperations

Add: proceeds from asset 6,611 - - 6,611 sales and disposals

Add: proceeds from saleof discontinued - - - (556 )operations

Add: return of long-term 1,351 - - 1,351 contract receivable

Distributable cash flow $ 147,783 $ 25,257 $ (47,153 ) $ 125,331

Less: proceeds fromasset sales and (6,611 ) - - (6,611 )disposals

Less: proceeds from saleof discontinued - - - 556 operations

Less: acquisition costs - - - -

Free cash flow $ 141,172 $ 25,257 $ (47,153 ) $ 119,276

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

LTM Free Cash Flow and Cash Flow Cushion

For the Three Months Ended

(In thousands)

December 31,2019

March 31,

2020

June 30,

2020

September 30,

2020

Last 12

Months

Net cash provided by operating activities of continuing operations

$

19,394

$

30,155

$

19,935

$

24,323

$

93,807

Add: proceeds from asset sales and disposals

(111

)

-

507

-

396

Add: proceeds from sale of discontinued operations

(73

)

(66

)

-

-

(139

)

Add: return of long-term contract receivable

392

272

858

332

1,854

Distributable cash flow

$

19,602

$

30,361

$

21,300

$

24,655

$

95,918

Less: proceeds from asset sales and disposals

111

-

(507

)

-

(396

)

Less: proceeds from sale of discontinued operations

73

66

-

-

139

Less: acquisition costs

(22

)

-

(1,000

)

-

(1,022

)

Free cash flow

$

19,764

$

30,427

$

19,793

$

24,655

$

94,639

Add (less): free cash flow provided by (used by)

discontinued operations

(4

)

1,706

-

-

1,702

Free cash flow including discontinued operations

$

19,760

$

32,133

$

19,793

$

24,655

$

96,341

Add (less): free cash flow used by (provided by)

discontinued operations

4

(1,706

)

-

-

(1,702

)

Free cash flow excluding discontinued operations

$

19,764

$

30,427

$

19,793

$

24,655

$

94,639

Less: mandatory Opco debt repayments

(20,335

)

(16,696

)

(2,365

)

(6,780

)

(46,176

)

Less: preferred unit distributions

(7,500

)

(7,500

)

(7,613

)

(7,500

)

(30,113

)

Less: common unit distributions

(5,630

)

(5,630

)

-

(5,630

)

(16,890

)

Cash flow cushion

$

(13,701

)

$

601

$

9,815

$

4,745

$

1,460

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

LTM Free Cash Flow and Cash Flow Cushion



For the Three Months Ended

December March 31, June 30, September Last 12(In 31, 30, thousands) 2019 2020 2020 Months 2020

Net cashprovided byoperating $ 19,394 $ 30,155 $ 19,935 $ 24,323 $ 93,807 activities ofcontinuingoperations

Add: proceedsfrom asset (111 ) - 507 - 396 sales anddisposals

Add: proceedsfrom sale of (73 ) (66 ) - - (139 )discontinuedoperations

Add: returnof long-term 392 272 858 332 1,854 contractreceivable

Distributable $ 19,602 $ 30,361 $ 21,300 $ 24,655 $ 95,918 cash flow

Less:proceeds from 111 - (507 ) - (396 )asset salesand disposals

Less:proceeds fromsale of 73 66 - - 139 discontinuedoperations

Less:acquisition (22 ) - (1,000 ) - (1,022 )costs

Free cash $ 19,764 $ 30,427 $ 19,793 $ 24,655 $ 94,639 flow

Add (less):free cashflow providedby (used by) (4 ) 1,706 - - 1,702

discontinuedoperations

Free cashflowincluding $ 19,760 $ 32,133 $ 19,793 $ 24,655 $ 96,341 discontinuedoperations

Add (less):free cashflow used by(provided by) 4 (1,706 ) - - (1,702 )

discontinuedoperations

Free cashflowexcluding $ 19,764 $ 30,427 $ 19,793 $ 24,655 $ 94,639 discontinuedoperations

Less:mandatory (20,335 ) (16,696 ) (2,365 ) (6,780 ) (46,176 )Opco debtrepayments

Less:preferred (7,500 ) (7,500 ) (7,613 ) (7,500 ) (30,113 )unitdistributions

Less: commonunit (5,630 ) (5,630 ) - (5,630 ) (16,890 )distributions

Cash flow $ (13,701 ) $ 601 $ 9,815 $ 4,745 $ 1,460 cushion

Leverage Ratio

For the Three Months Ended

(In thousands)

December 31,2019

March 31,

2020

June 30,

2020

September 30,

2020

Last 12

Months

Net income (loss) from continuing operations

$

(119,448

)

$

18,779

$

(125,501

)

$

7,216

$

(218,954

)

Less: equity earnings from unconsolidated investment

(10,256

)

(6,272

)

3,058

(1,986

)

(15,456

)

Add: total distributions from unconsolidated investment

6,370

7,105

7,105

-

20,580

Add: interest expense, net

10,392

10,308

10,329

10,254

41,283

Add: depreciation, depletion and amortization

3,186

2,012

2,062

2,111

9,371

Add: asset impairments

147,730

-

132,283

934

280,947

Adjusted EBITDA

$

37,974

$

31,932

$

29,336

$

18,529

$

117,771

Debt-at September 30, 2020

$

498,215

Leverage Ratio (1)

4.2

x

____________________

Leverage Ratio



For the Three Months Ended

March 31, June 30, September Last 12(In thousands) December 31, 30, 2019 2020 2020 Months 2020

Net income(loss) from $ (119,448 ) $ 18,779 $ (125,501 ) $ 7,216 $ (218,954 )continuingoperations

Less: equityearnings from (10,256 ) (6,272 ) 3,058 (1,986 ) (15,456 )unconsolidatedinvestment

Add: totaldistributionsfrom 6,370 7,105 7,105 - 20,580 unconsolidatedinvestment

Add: interest 10,392 10,308 10,329 10,254 41,283 expense, net

Add:depreciation, 3,186 2,012 2,062 2,111 9,371 depletion andamortization

Add: asset 147,730 - 132,283 934 280,947 impairments

Adjusted $ 37,974 $ 31,932 $ 29,336 $ 18,529 $ 117,771 EBITDA

Debt-atSeptember 30, $ 498,215 2020

Leverage Ratio 4.2 x^(1)

____________________

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of September 30, 2020 divided by the last twelve months' Adjusted EBITDA.(1) Note that adjusted EBITDA under the indenture governing NRP's 2025 parent company notes may be different than the amount shown above. However, NRP's last twelve months Leverage ratio as of September 30, 2020, was 4.2x as calculated under the indenture governing NRP's 2025 parent company notes.

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Return on Capital Employed ("ROCE")

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

LTM Ended September 30, 2020

Net income (loss) from continuing operations

$

(177,917

)

$

15,289

$

(56,326

)

$

(218,954

)

Financing costs

56

-

42,010

42,066

Return

$

(177,861

)

$

15,289

$

(14,316

)

$

(176,888

)

As of September 30, 2019

Total assets of continuing operations

$

969,425

$

258,063

$

15,428

$

1,242,916

Less: total current liabilities of continuing operations excluding current debt

(10,867

)

-

(17,425

)

(28,292

)

Less: total long-term liabilities of continuing operations excluding long-term debt

(48,017

)

-

(413

)

(48,430

)

Capital employed excluding discontinued operations

$

910,541

$

258,063

$

(2,410

)

$

1,166,194

Total partners' capital (1)

$

913,476

$

258,063

$

(703,164

)

$

469,189

Less: non-controlling interest

(2,935

)

-

-

(2,935

)

Less: partners' capital from discontinued operations

-

-

-

(814

)

Total partners' capital excluding discontinued operations

$

910,541

$

258,063

$

(703,164

)

$

465,440

Class A convertible preferred units

-

-

164,587

164,587

Debt

-

-

536,167

536,167

Capital employed excluding discontinued operations

$

910,541

$

258,063

$

(2,410

)

$

1,166,194

ROCE excluding discontinued operations

(19.5

)%

5.9

%

N/A

(15.2

)%

Excluding asset impairments:

Return

$

(177,861

)

$

15,289

$

(14,316

)

$

(176,888

)

Add: asset impairments

280,947

-

-

280,947

Return excluding asset impairments

$

103,086

$

15,289

$

(14,316

)

$

104,059

ROCE excluding discontinued operations and asset impairments

11.3

%

5.9

%

N/A

8.9

%

____________________

Natural Resource Partners L.P.

Reconciliation of Non-GAAP Measures

(Unaudited)

Return on Capital Employed ("ROCE")

Corporate Coal Royalty and

(In thousands) and Other Soda Ash Financing Total

LTM EndedSeptember 30, 2020

Net income(loss) from $ (177,917 ) $ 15,289 $ (56,326 ) $ (218,954 )continuingoperations

Financing costs 56 - 42,010 42,066

Return $ (177,861 ) $ 15,289 $ (14,316 ) $ (176,888 )



As of September 30, 2019

Total assets ofcontinuing $ 969,425 $ 258,063 $ 15,428 $ 1,242,916 operations

Less: totalcurrentliabilities ofcontinuing (10,867 ) - (17,425 ) (28,292 )operationsexcludingcurrent debt

Less: totallong-termliabilities ofcontinuing (48,017 ) - (413 ) (48,430 )operationsexcludinglong-term debt

Capital employedexcluding $ 910,541 $ 258,063 $ (2,410 ) $ 1,166,194 discontinuedoperations



Total partners' $ 913,476 $ 258,063 $ (703,164 ) $ 469,189 capital ^(1)

Less:non-controlling (2,935 ) - - (2,935 )interest

Less: partners'capital from - - - (814 )discontinuedoperations

Total partners'capitalexcluding $ 910,541 $ 258,063 $ (703,164 ) $ 465,440 discontinuedoperations

Class Aconvertible - - 164,587 164,587 preferred units

Debt - - 536,167 536,167

Capital employedexcluding $ 910,541 $ 258,063 $ (2,410 ) $ 1,166,194 discontinuedoperations



ROCE excluding ) )discontinued (19.5 % 5.9 % N/A (15.2 %operations



Excluding asset impairments:

Return $ (177,861 ) $ 15,289 $ (14,316 ) $ (176,888 )

Add: asset 280,947 - - 280,947 impairments

Return excludingasset $ 103,086 $ 15,289 $ (14,316 ) $ 104,059 impairments



ROCE excludingdiscontinuedoperations and 11.3 % 5.9 % N/A 8.9 %assetimpairments

____________________

(1) Total partners' capital includes $0.8 million from discontinued operations.

Change in Common Unitholders' Equity Excluding Asset Impairments Attributable to Common Unitholders

(In thousands)

Q3 2020 Common unitholders' equity

$

134,545

Q3 2019 Common unitholders' equity

400,266

LTM Change in common unitholders' equity

$

(265,721

)

LTM Asset impairments

$

280,947

LTM Asset impairments attributable to common unitholders

$

275,328

LTM Change in common unitholders' equity excluding asset impairments attributable to common unitholders

$

9,607

View source version on businesswire.com: https://www.businesswire.com/news/home/20201105005107/en/

CONTACT: Tiffany Sammis 713-751-7515 tsammis@nrplp.com