Business Wire | Mar 15, 2021 06:58AM EDT

Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2020 Results

Mar. 15, 2021

HOUSTON--(BUSINESS WIRE)--Mar. 15, 2021--Natural Resource Partners L.P. (NYSE:NRP) today reported fourth quarter and full year 2020 results as follows:

For the Three Months For the Year Ended Ended

December 31, December 31,

(In thousands) 2020 2019 2020 2019(Unaudited)

Net income (loss) from $ 14,687 $ (119,448) $ (84,819) $ (25,414)continuing operations

Asset impairments 2,668 147,730 135,885 148,214

Net income fromcontinuing operations $ 17,355 $ 28,282 $ 51,066 $ 122,800excluding assetimpairments ^(1)

Adjusted EBITDA ^(1) 24,917 37,974 104,714 199,228

Cash flow provided by(used in) continuing operations:

Operating activities 13,155 19,394 87,568 137,319

Investing activities 776 259 1,745 8,221

Financing activities (29,714) (33,551) (87,788) (253,305)

Distributable cash flow ^ 13,932 19,602 90,248 144,933(1) (2)

Free cash flow ^(1) 13,815 19,764 88,690 139,040

Cash flow cushion (last (739) 7,762twelve months) ^(1)

____________________(1)

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

(2)

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

"While 2020 proved to be a challenging year for us all, I'm proud of the efforts and discipline of our team as they managed the business safely and effectively over the course of the year. We paid down $46 million of debt in 2020 and ended the year with $200 million of liquidity. As we look to 2021, demand for steel, energy and soda ash continues to improve and we continue to focus on maximizing unitholder value by de-levering the capital structure while maintaining strong liquidity during these uncertain times," stated Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $199.8 million at December 31, 2020, consisting of $99.8 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

NRP declared a cash distribution of $0.45 per common unit and a distribution of $7.6 million on its preferred units for the fourth quarter of 2020. The preferred unit distribution included interest on previously paid-in-kind units and was 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 fourth quarter and full year of 2020 were lower by $7.8 million and $87.3 million, respectively, and free cash flow in the fourth quarter and full year of 2020 was $5.1 million and $54.7 million lower, respectively, as compared to the prior year periods. These decreases are primarily a result of a weakened market for metallurgical coal in 2020 due to a decline in global steel demand, and as a result, both sales volumes and prices for metallurgical coal sold were lower in the fourth quarter and full year of 2020 as compared to the prior year periods. Approximately 70% of coal royalty revenues and approximately 60% of coal royalty sales volumes were derived from metallurgical coal in 2020. In addition, weaker domestic and export thermal coal markets compared to the prior year periods resulted in lower revenues from NRP's thermal coal properties. Furthermore, the COVID-19 pandemic compounded already weak coal pricing and demand, and NRP's coal lessees saw significant negative impacts on their businesses.

NRP also recorded $2.7 million and $135.9 million in non-cash asset impairment expense in the fourth quarter and full year of 2020, respectively, as compared to $147.7 million and $148.2 million in non-cash asset impairment expense for the fourth quarter and full year of 2019, respectively. Asset impairments in 2020 primarily related to weak coal markets that were compounded by the COVID-19 pandemic and resulted in the termination of certain coal leases, changes to lessee mine plans resulting in permanent moves off of certain coal properties and decreased oil and gas drilling activity which negatively impacted the outlook for NRP's frac sand properties.

Domestic and export thermal coal markets remain challenged by lower utility demand, continued low natural gas prices, the secular shift to renewable energy and the ongoing negative effects from the COVID-19 pandemic. Metallurgical coal markets also remain challenged by the uncertainties around the COVID-19 pandemic, but prices have rebounded from the lows seen in the second quarter of 2020.

In addition to actively managing its currently producing coal and hard mineral properties over the last year, NRP has also been working to identify potential alternative revenue sources across its coal and hard mineral property portfolio. The Partnership has been evaluating opportunities which may exist in its surface and mineral property assets, where coal or other hard mineral development operations have ceased or have never been developed, as locations for environmentally sustainable projects, such as carbon sequestration or renewable energy projects. While NRP does not expect these activities to generate significant revenues or cash flow over the next several years, NRP believes its large ownership footprint throughout the United States will provide opportunities to create value in this regard with minimal capital investment by the Partnership.

Soda Ash

Ciner Wyoming was negatively impacted by the COVID-19 pandemic as lower demand for glass in the global auto, beverage container and construction industries reduced demand for soda ash. Revenues and other income in the fourth quarter and full year of 2020 were lower by $4.7 million and $36.4 million, respectively, as compared to the prior year periods primarily due to a combination of lower pricing and volumes sold. Distributions received from Ciner Wyoming were lower by $6.4 million and $17.6 million in the fourth quarter and full year of 2020, respectively, as compared to prior year periods due to Ciner Wyoming's decision to suspend distributions as announced in August of 2020. While Ciner Wyoming has yet to recover to pre-COVID-19 levels, fourth quarter 2020 overall sales volumes increased 9.5% and overall production volumes increased 49.1% over the third 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.

As previously mentioned, Ciner Wyoming suspended its quarterly distribution in August 2020 in an effort to achieve greater financial and liquidity flexibility during the COVID-19 pandemic and accordingly, did not pay quarterly distributions for the second, third or fourth 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 $1.1 million and $38.3 million lower in the fourth quarter and full year of 2020, respectively, as compared to the prior year periods. The decrease in costs for the fourth quarter of 2020 is primarily due to lower interest expense as a result of less debt outstanding. The decrease in costs for the full year of 2020 is primarily due to the loss on extinguishment of debt of $29.3 million related to the refinancing and extension of both NRP's 2022 Senior Notes and revolving credit facility in the second quarter of 2019, as well as lower interest expense as a result of less debt outstanding. Free cash flow was $5.5 million and $21.9 million higher in the fourth quarter and full year of 2020, respectively, as compared to the prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2020.

As noted earlier, NRP declared a fourth quarter $7.6 million distribution on its preferred units which was 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 December 31, 2020, NRP's leverage ratio was 4.6x. NRP expect its leverage ratio to continue to exceed 3.75x for the foreseeable future.

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/6473098. 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.

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-

____________________(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.

"While 2020 proved to be a challenging year for us all, I'm proud of the efforts and discipline of our team as they managed the business safely and effectively over the course of the year. We paid down $46 million of debt in 2020 and ended the year with $200 million of liquidity. As we look to 2021, demand for steel, energy and soda ash continues to improve and we continue to focus on maximizing unitholder value by de-levering the capital structure while maintaining strong liquidity during these uncertain times," stated Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $199.8 million at December 31, 2020, consisting of $99.8 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility.

NRP declared a cash distribution of $0.45 per common unit and a distribution of $7.6 million on its preferred units for the fourth quarter of 2020. The preferred unit distribution included interest on previously paid-in-kind units and was 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 fourth quarter and full year of 2020 were lower by $7.8 million and $87.3 million, respectively, and free cash flow in the fourth quarter and full year of 2020 was $5.1 million and $54.7 million lower, respectively, as compared to the prior year periods. These decreases are primarily a result of a weakened market for metallurgical coal in 2020 due to a decline in global steel demand, and as a result, both sales volumes and prices for metallurgical coal sold were lower in the fourth quarter and full year of 2020 as compared to the prior year periods. Approximately 70% of coal royalty revenues and approximately 60% of coal royalty sales volumes were derived from metallurgical coal in 2020. In addition, weaker domestic and export thermal coal markets compared to the prior year periods resulted in lower revenues from NRP's thermal coal properties. Furthermore, the COVID-19 pandemic compounded already weak coal pricing and demand, and NRP's coal lessees saw significant negative impacts on their businesses.

NRP also recorded $2.7 million and $135.9 million in non-cash asset impairment expense in the fourth quarter and full year of 2020, respectively, as compared to $147.7 million and $148.2 million in non-cash asset impairment expense for the fourth quarter and full year of 2019, respectively. Asset impairments in 2020 primarily related to weak coal markets that were compounded by the COVID-19 pandemic and resulted in the termination of certain coal leases, changes to lessee mine plans resulting in permanent moves off of certain coal properties and decreased oil and gas drilling activity which negatively impacted the outlook for NRP's frac sand properties.

Domestic and export thermal coal markets remain challenged by lower utility demand, continued low natural gas prices, the secular shift to renewable energy and the ongoing negative effects from the COVID-19 pandemic. Metallurgical coal markets also remain challenged by the uncertainties around the COVID-19 pandemic, but prices have rebounded from the lows seen in the second quarter of 2020.

In addition to actively managing its currently producing coal and hard mineral properties over the last year, NRP has also been working to identify potential alternative revenue sources across its coal and hard mineral property portfolio. The Partnership has been evaluating opportunities which may exist in its surface and mineral property assets, where coal or other hard mineral development operations have ceased or have never been developed, as locations for environmentally sustainable projects, such as carbon sequestration or renewable energy projects. While NRP does not expect these activities to generate significant revenues or cash flow over the next several years, NRP believes its large ownership footprint throughout the United States will provide opportunities to create value in this regard with minimal capital investment by the Partnership.

Soda Ash

Ciner Wyoming was negatively impacted by the COVID-19 pandemic as lower demand for glass in the global auto, beverage container and construction industries reduced demand for soda ash. Revenues and other income in the fourth quarter and full year of 2020 were lower by $4.7 million and $36.4 million, respectively, as compared to the prior year periods primarily due to a combination of lower pricing and volumes sold. Distributions received from Ciner Wyoming were lower by $6.4 million and $17.6 million in the fourth quarter and full year of 2020, respectively, as compared to prior year periods due to Ciner Wyoming's decision to suspend distributions as announced in August of 2020. While Ciner Wyoming has yet to recover to pre-COVID-19 levels, fourth quarter 2020 overall sales volumes increased 9.5% and overall production volumes increased 49.1% over the third 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.

As previously mentioned, Ciner Wyoming suspended its quarterly distribution in August 2020 in an effort to achieve greater financial and liquidity flexibility during the COVID-19 pandemic and accordingly, did not pay quarterly distributions for the second, third or fourth 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 $1.1 million and $38.3 million lower in the fourth quarter and full year of 2020, respectively, as compared to the prior year periods. The decrease in costs for the fourth quarter of 2020 is primarily due to lower interest expense as a result of less debt outstanding. The decrease in costs for the full year of 2020 is primarily due to the loss on extinguishment of debt of $29.3 million related to the refinancing and extension of both NRP's 2022 Senior Notes and revolving credit facility in the second quarter of 2019, as well as lower interest expense as a result of less debt outstanding. Free cash flow was $5.5 million and $21.9 million higher in the fourth quarter and full year of 2020, respectively, as compared to the prior year periods primarily due to lower cash paid for interest as a result of less debt outstanding in 2020.

As noted earlier, NRP declared a fourth quarter $7.6 million distribution on its preferred units which was 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 December 31, 2020, NRP's leverage ratio was 4.6x. NRP expect its leverage ratio to continue to exceed 3.75x for the foreseeable future.

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/6473098. 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.

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 Year Ended

December 31, September December 31, 30,

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

Revenues and other income

Coal royalty $ 31,327 $ 37,032 $ 25,740 $ 120,166 $ 191,069and other

Transportationand processing 2,194 4,539 2,204 8,845 19,279services

Equity inearnings of 5,528 10,256 1,986 10,728 47,089Ciner Wyoming

Gain (loss) onasset sales 116 (111) - 581 6,498and disposals

Total revenuesand other $ 39,165 $ 51,716 $ 29,930 $ 140,320 $ 263,935income

Operating expenses

Operating andmaintenance $ 5,595 $ 5,925 $ 5,781 $ 24,795 $ 32,738expenses

Depreciation,depletion and 3,013 3,186 2,111 9,198 14,932amortization

General andadministrative 3,125 3,931 3,634 14,293 16,730expenses

Asset 2,668 147,730 934 135,885 148,214impairments

Totaloperating $ 14,401 $ 160,772 $ 12,460 $ 184,171 $ 212,614expenses



Income (loss)from $ 24,764 $ (109,056) $ 17,470 $ (43,851) $ 51,321operations



Other expenses, net

Interest $ (10,077) $ (10,392) $ (10,254) $ (40,968) $ (47,453)expense, net

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

Total other $ (10,077) $ (10,392) $ (10,254) $ (40,968) $ (76,735)expenses, net



Net income(loss) from $ 14,687 $ (119,448) $ 7,216 $ (84,819) $ (25,414)continuingoperations

Income fromdiscontinued - 750 - - 956operations

Net income $ 14,687 $ (118,698) $ 7,216 $ (84,819) $ (24,458)(loss)

Less: incomeattributable (7,612) (7,500) (7,500) (30,225) (30,000)to preferredunitholders

Net income(loss)attributableto common $ 7,075 $ (126,198) $ (284) $ (115,044) $ (54,458)unitholdersand thegeneralpartner



Net income(loss)attributable $ 6,934 $ (123,674) $ (279) $ (112,743) $ (53,369)to commonunitholders

Net income(loss)attributable 141 (2,524) (5) (2,301) (1,089)to the generalpartner

Income (loss)fromcontinuing operations percommon unit

Basic $ 0.57 $ (10.15) $ (0.02) $ (9.20) $ (4.43)

Diluted 0.56 (10.15) (0.02) (9.20) (4.43)

Net income(loss) per common unit

Basic $ 0.57 $ (10.09) $ (0.02) $ (9.20) $ (4.35)

Diluted 0.56 (10.09) (0.02) (9.20) (4.35)



Net income $ 14,687 $ (118,698) $ 7,216 $ (84,819) $ (24,458)(loss)

Comprehensiveincome fromunconsolidated 152 1,208 2,428 2,916 868investment andother

Comprehensive $ 14,839 $ (117,490) 9,644 $ (81,903) $ (23,590)income (loss)

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows

For the Three Months Ended

For the Year Ended

December 31,

September 30,

December 31,

(In thousands)

2020

2019

2020

2020

2019

Cash flows from operating activities

Net income (loss)

$

14,687

$

(118,698)

$

7,216

$

(84,819)

$

(24,458)

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

Depreciation, depletion and amortization

3,013

3,186

2,111

9,198

14,932

Distributions from unconsolidated investment

-

6,370

-

14,210

31,850

Equity earnings from unconsolidated investment

(5,528)

(10,256)

(1,986)

(10,728)

(47,089)

Loss (gain) on asset sales and disposals

(116)

111

-

(581)

(6,498)

Loss on extinguishment of debt

-

-

-

-

29,282

Income from discontinued operations

-

(750)

-

-

(956)

Asset impairments

2,668

147,730

934

135,885

148,214

Bad debt expense

86

620

258

4,001

7,462

Unit-based compensation expense

1,004

519

913

3,570

2,361

Amortization of debt issuance costs and other

832

464

1,577

1,323

3,687

Change in operating assets and liabilities:

Accounts receivable

4,859

(3,924)

4,621

12,853

(6,035)

Accounts payable

14

(412)

144

207

(1,234)

Accrued liabilities

780

1,427

791

(2,205)

(3,656)

Accrued interest

(7,559)

(12,048)

7,248

(602)

(12,029)

Deferred revenue

(461)

3,188

(273)

9,733

(732)

Other items, net

(1,124)

1,867

769

(4,477)

2,218

Net cash provided by operating activities of continuing operations

$

13,155

$

19,394

$

24,323

$

87,568

$

137,319

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

-

(4)

-

1,706

(8)

Net cash provided by operating activities

$

13,155

$

19,390

$

24,323

$

89,274

$

137,311

Cash flows from investing activities

Proceeds from asset sales and disposals

$

116

$

(111)

$

-

$

623

$

6,500

Return of long-term contract receivable

660

392

332

2,122

1,743

Acquisition of non-controlling interest in BRP

-

-

-

(1,000)

-

Acquisition of mineral rights

-

(22)

-

-

(22)

Net cash provided by investing activities of continuing operations

$

776

$

259

$

332

$

1,745

$

8,221

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

1

(73)

-

(65)

(629)

Net cash provided by investing activities

$

777

$

186

$

332

$

1,680

$

7,592

Cash flows from financing activities

Debt borrowings

$

-

$

-

$

-

$

-

$

300,000

Debt repayments

(20,335)

(20,335)

(6,780)

(46,176)

(463,082)

Distributions to common unitholders and general partner

(5,630)

(5,630)

(5,630)

(16,890)

(33,150)

Distributions to preferred unitholders

(3,750)

(7,500)

(7,500)

(26,363)

(30,000)

Contributions from (to) discontinued operations

1

(77)

-

1,641

(637)

Debt issuance costs and other

-

(9)

-

-

(26,436)

Net cash used in financing activities of continuing operations

$

(29,714)

$

(33,551)

$

(19,910)

$

(87,788)

$

(253,305)

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

(1)

77

-

(1,641)

637

Net cash used in financing activities

$

(29,715)

$

(33,474)

$

(19,910)

$

(89,429)

$

(252,668)

Net increase (decrease) in cash and cash equivalents

$

(15,783)

$

(13,898)

$

4,745

$

1,525

$

(107,765)

Cash and cash equivalents at beginning of period

115,573

112,163

110,828

98,265

206,030

Cash and cash equivalents at end of period

$

99,790

$

98,265

$

115,573

$

99,790

$

98,265

Supplemental cash flow information:

Cash paid during the period for interest

$

17,118

$

22,327

$

2,490

$

39,830

$

58,597

Non-cash investing and financing activities:

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

$

23

$

-

$

23

$

970

$

-

Preferred unit distributions paid-in-kind

3,750

-

-

3,750

-

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Cash Flows



For the Three Months Ended For the Year Ended

December 31, September December 31, 30,

(In thousands) 2020 2019 2020 2020 2019

Cash flows fromoperating activities

Net income $ 14,687 $ (118,698) $ 7,216 $ (84,819) $ (24,458)(loss)

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

Depreciation,depletion and 3,013 3,186 2,111 9,198 14,932amortization

Distributionsfrom - 6,370 - 14,210 31,850unconsolidatedinvestment

Equity earningsfrom (5,528) (10,256) (1,986) (10,728) (47,089)unconsolidatedinvestment

Loss (gain) onasset sales and (116) 111 - (581) (6,498)disposals

Loss onextinguishment - - - - 29,282of debt

Income fromdiscontinued - (750) - - (956)operations

Asset 2,668 147,730 934 135,885 148,214impairments

Bad debt 86 620 258 4,001 7,462expense

Unit-basedcompensation 1,004 519 913 3,570 2,361expense

Amortization ofdebt issuance 832 464 1,577 1,323 3,687costs and other

Change inoperating assets andliabilities:

Accounts 4,859 (3,924) 4,621 12,853 (6,035)receivable

Accounts 14 (412) 144 207 (1,234)payable

Accrued 780 1,427 791 (2,205) (3,656)liabilities

Accrued (7,559) (12,048) 7,248 (602) (12,029)interest

Deferred (461) 3,188 (273) 9,733 (732)revenue

Other items, (1,124) 1,867 769 (4,477) 2,218net

Net cashprovided byoperating $ 13,155 $ 19,394 $ 24,323 $ 87,568 $ 137,319activities ofcontinuingoperations

Net cashprovided by(used in)operating - (4) - 1,706 (8)activities ofdiscontinuedoperations

Net cashprovided by $ 13,155 $ 19,390 $ 24,323 $ 89,274 $ 137,311operatingactivities



Cash flows frominvesting activities

Proceeds fromasset sales and $ 116 $ (111) $ - $ 623 $ 6,500disposals

Return oflong-term 660 392 332 2,122 1,743contractreceivable

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

Acquisition of - (22) - - (22)mineral rights

Net cashprovided byinvesting $ 776 $ 259 $ 332 $ 1,745 $ 8,221activities ofcontinuingoperations

Net cashprovided by(used in)investing 1 (73) - (65) (629)activities ofdiscontinuedoperations

Net cashprovided by $ 777 $ 186 $ 332 $ 1,680 $ 7,592investingactivities





Cash flows fromfinancing activities

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

Debt repayments (20,335) (20,335) (6,780) (46,176) (463,082)

Distributionsto common (5,630) (5,630) (5,630) (16,890) (33,150)unitholders andgeneral partner

Distributionsto preferred (3,750) (7,500) (7,500) (26,363) (30,000)unitholders

Contributionsfrom (to) 1 (77) - 1,641 (637)discontinuedoperations

Debt issuance - (9) - - (26,436)costs and other

Net cash usedin financingactivities of $ (29,714) $ (33,551) $ (19,910) $ (87,788) $ (253,305)continuingoperations

Net cashprovided by(used in)financing (1) 77 - (1,641) 637activities ofdiscontinuedoperations

Net cash usedin financing $ (29,715) $ (33,474) $ (19,910) $ (89,429) $ (252,668)activities



Net increase(decrease) in $ (15,783) $ (13,898) $ 4,745 $ 1,525 $ (107,765)cash and cashequivalents

Cash and cashequivalents at 115,573 112,163 110,828 98,265 206,030beginning ofperiod

Cash and cashequivalents at $ 99,790 $ 98,265 $ 115,573 $ 99,790 $ 98,265end of period



Supplementalcash flow information:

Cash paidduring the $ 17,118 $ 22,327 $ 2,490 $ 39,830 $ 58,597period forinterest

Non-cashinvesting and financingactivities:

Plant,equipment,mineral rightsand otherfunded with $ 23 $ - $ 23 $ 970 $ -accountspayable oraccruedliabilities

Preferred unitdistributions 3,750 - - 3,750 -paid-in-kind

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Balance Sheets

December 31,

(In thousands, except unit data)

2020

2019

ASSETS

Current assets

Cash and cash equivalents

$

99,790

$

98,265

Accounts receivable, net

12,322

30,869

Other current assets, net

5,080

1,244

Current assets of discontinued operations

-

1,706

Total current assets

$

117,192

$

132,084

Land

24,008

24,008

Mineral rights, net

460,373

605,096

Intangible assets, net

17,459

17,687

Equity in unconsolidated investment

262,514

263,080

Long-term contract receivable, net

33,264

36,963

Other long-term assets, net

7,067

6,989

Total assets

$

921,877

$

1,085,907

LIABILITIES AND CAPITAL

Current liabilities

Accounts payable

$

1,385

$

1,179

Accrued liabilities

7,733

8,764

Accrued interest

1,714

2,316

Current portion of deferred revenue

11,485

4,608

Current portion of long-term debt, net

39,055

45,776

Current liabilities of discontinued operations

-

65

Total current liabilities

$

61,372

$

62,708

Deferred revenue

50,069

47,213

Long-term debt, net

432,444

470,422

Other non-current liabilities

5,131

4,949

Total liabilities

$

549,016

$

585,292

Commitments and contingencies

Class A Convertible Preferred Units (253,750 and 250,000 units issued and outstanding at December 31, 2020 and 2019, respectively, at $1,000 par value per unit; liquidation preference of $1,700 per unit and $1,500 per unit at December 31, 2020 and 2019, respectively)

$

168,337

$

164,587

Partners' capital:

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

$

136,927

$

271,471

General partner's interest

459

3,270

Warrant holders' interest

66,816

66,816

Accumulated other comprehensive income (loss)

322

(2,594)

Total partners' capital

$

204,524

$

338,963

Non-controlling interest

-

(2,935)

Total capital

$

204,524

$

336,028

Total liabilities and capital

$

921,877

$

1,085,907

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Balance Sheets



December 31,

(In thousands, except unit data) 2020 2019

ASSETS

Current assets

Cash and cash equivalents $ 99,790 $ 98,265

Accounts receivable, net 12,322 30,869

Other current assets, net 5,080 1,244

Current assets of discontinued operations - 1,706

Total current assets $ 117,192 $ 132,084

Land 24,008 24,008

Mineral rights, net 460,373 605,096

Intangible assets, net 17,459 17,687

Equity in unconsolidated investment 262,514 263,080

Long-term contract receivable, net 33,264 36,963

Other long-term assets, net 7,067 6,989

Total assets $ 921,877 $ 1,085,907

LIABILITIES AND CAPITAL

Current liabilities

Accounts payable $ 1,385 $ 1,179

Accrued liabilities 7,733 8,764

Accrued interest 1,714 2,316

Current portion of deferred revenue 11,485 4,608

Current portion of long-term debt, net 39,055 45,776

Current liabilities of discontinued operations - 65

Total current liabilities $ 61,372 $ 62,708

Deferred revenue 50,069 47,213

Long-term debt, net 432,444 470,422

Other non-current liabilities 5,131 4,949

Total liabilities $ 549,016 $ 585,292

Commitments and contingencies

Class A Convertible Preferred Units (253,750 and250,000 units issued and outstanding at December31, 2020 and 2019, respectively, at $1,000 par $ 168,337 $ 164,587 value per unit; liquidation preference of $1,700per unit and $1,500 per unit at December 31, 2020and 2019, respectively)

Partners' capital:

Common unitholders' interest (12,261,199 unitsissued and outstanding at December 31, 2020 and $ 136,927 $ 271,471 2019)

General partner's interest 459 3,270

Warrant holders' interest 66,816 66,816

Accumulated other comprehensive income (loss) 322 (2,594)

Total partners' capital $ 204,524 $ 338,963

Non-controlling interest - (2,935)

Total capital $ 204,524 $ 336,028

Total liabilities and capital $ 921,877 $ 1,085,907

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

Common Unitholders

General Partner

Warrant Holders

AccumulatedOtherComprehensiveIncome (Loss)

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 loss (1)

-

(23,969)

(489)

-

-

(24,458)

-

(24,458)

Distributions to common unitholders and general partner

-

(32,487)

(663)

-

-

(33,150)

-

(33,150)

Distributions to preferred unitholders

-

(29,400)

(600)

-

-

(30,000)

-

(30,000)

Issuance of unit-based awards

12

486

-

-

-

486

-

486

Unit-based awards amortization and vesting

-

1,804

-

-

-

1,804

-

1,804

Comprehensive income (loss) from unconsolidated investment and other

-

(76)

8

-

868

800

-

800

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 loss (2)

-

(83,123)

(1,696)

-

-

(84,819)

-

(84,819)

Distributions to common unitholders and general partner

-

(16,552)

(338)

-

-

(16,890)

-

(16,890)

Distributions to preferred unitholders

-

(29,511)

(602)

-

-

(30,113)

-

(30,113)

Acquisition of non-controlling interest in BRP

-

(4,747)

(97)

-

-

(4,844)

2,935

(1,909)

Issuance of unit-based awards

-

-

-

-

-

-

-

-

Unit-based awards amortization and vesting

-

3,222

-

-

-

3,222

-

3,222

Comprehensive income from unconsolidated investment and other

-

-

-

-

2,916

2,916

-

2,916

Balance at December 31, 2020

12,261

$

136,927

$

459

$

66,816

$

322

$

204,524

$

-

$

204,524

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Consolidated Statements of Partners' Capital

Accumulated Partners' Common Unitholders General Warrant Other Capital Non-Controlling Total Partner Holders Comprehensive Excluding Interest Capital Income (Loss) Non-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 loss ^(1) - (23,969) (489) - - (24,458) - (24,458)

Distributionsto common - (32,487) (663) - - (33,150) - (33,150) unitholders andgeneral partner

Distributionsto preferred - (29,400) (600) - - (30,000) - (30,000) unitholders

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

Unit-basedawards - 1,804 - - - 1,804 - 1,804 amortizationand vesting

Comprehensiveincome (loss)from - (76) 8 - 868 800 - 800 unconsolidatedinvestment andother

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 loss ^(2) - (83,123) (1,696) - - (84,819) - (84,819)

Distributionsto common - (16,552) (338) - - (16,890) - (16,890) unitholders andgeneral partner

Distributionsto preferred - (29,511) (602) - - (30,113) - (30,113) unitholders

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

Issuance ofunit-based - - - - - - - - awards

Unit-basedawards - 3,222 - - - 3,222 - 3,222 amortizationand vesting

Comprehensiveincome fromunconsolidated - - - - 2,916 2,916 - 2,916 investment andother

Balance atDecember 31, 12,261 $ 136,927 $ 459 $ 66,816 $ 322 $ 204,524 $ - $ 204,524 2020

____________________(1)

Net loss includes $30.0 million of income attributable to preferred unitholders that accumulated during the period, of which $29.4 million is allocated to the common unitholders and $0.6 million is allocated to the general partner.

(2)

Net loss includes $30.2 million of income attributable to preferred unitholders that accumulated during the period, of which $29.6 million is allocated to the common unitholders and $0.6 million is allocated to the general partner.

____________________ Net loss includes $30.0 million of income attributable to preferred(1) unitholders that accumulated during the period, of which $29.4 million is allocated to the common unitholders and $0.6 million is allocated to the general partner.

Net loss includes $30.2 million of income attributable to preferred(2) unitholders that accumulated during the period, of which $29.6 million is allocated to the common unitholders and $0.6 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 December 31, 2020 and 2019 and September 30, 2020:

Operating Segments

Coal Royaltyand Other

Corporate and Financing

(In thousands)

Soda AshTotalFor the Three Months Ended December 31, 2020

Revenues

$

33,521

$

5,528

$

-

$

39,049

Gain on asset sales and disposals

116

-

-

116

Total revenues and other income

$

33,637

$

5,528

$

-

$

39,165

Asset impairments

$

2,668

$

-

$

-

$

2,668

Net income (loss) from continuing operations

$

22,382

$

5,484

$

(13,179)

$

14,687

Adjusted EBITDA (1)

$

28,086

$

(44)

$

(3,125)

$

24,917

Cash flow provided by (used in) continuing operations:

Operating activities

$

33,655

$

(54)

$

(20,446)

$

13,155

Investing activities

$

776

$

-

$

-

$

776

Financing activities

$

-

$

-

$

(29,714)

$

(29,714)

Distributable cash flow (1) (2)

$

34,431

$

(54)

$

(20,446)

$

13,932

Free cash flow (1)

$

34,315

$

(54)

$

(20,446)

$

13,815

For the Three Months Ended December 31, 2019

Revenues

$

41,571

$

10,256

$

-

$

51,827

Loss on asset sales and disposals

(111)

-

-

(111)

Total revenues and other income

$

41,460

$

10,256

$

-

$

51,716

Asset impairments

$

147,730

$

-

$

-

$

147,730

Net income (loss) from continuing operations

$

(115,355)

$

10,230

$

(14,323)

$

(119,448)

Adjusted EBITDA (1)

$

35,561

$

6,344

$

(3,931)

$

37,974

Cash flow provided by (used in) continuing operations:

Operating activities

$

39,042

$

6,344

$

(25,992)

$

19,394

Investing activities

$

259

$

-

$

-

$

259

Financing activities

$

-

$

-

$

(33,551)

$

(33,551)

Distributable cash flow (1) (2)

$

39,323

$

6,344

$

(25,992)

$

19,602

Free cash flow (1)

$

39,412

$

6,344

$

(25,992)

$

19,764

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment forthe three months ended December 31, 2020 and 2019 and September 30, 2020:

Operating Segments

Coal Royalty Corporate and Other and(In thousands) Soda Ash Financing Total

For the ThreeMonths Ended December 31, 2020

Revenues $ 33,521 $ 5,528 $ - $ 39,049

Gain on asset sales 116 - - 116 and disposals

Total revenues and $ 33,637 $ 5,528 $ - $ 39,165 other income

Asset impairments $ 2,668 $ - $ - $ 2,668

Net income (loss)from continuing $ 22,382 $ 5,484 $ (13,179) $ 14,687 operations

Adjusted EBITDA ^ $ 28,086 $ (44) $ (3,125) $ 24,917 (1)

Cash flow providedby (used in) continuingoperations:

Operating $ 33,655 $ (54) $ (20,446) $ 13,155 activities

Investing $ 776 $ - $ - $ 776 activities

Financing $ - $ - $ (29,714) $ (29,714) activities

Distributable cash $ 34,431 $ (54) $ (20,446) $ 13,932 flow ^(1) (2)

Free cash flow^ (1) $ 34,315 $ (54) $ (20,446) $ 13,815



For the ThreeMonths Ended December 31, 2019

Revenues $ 41,571 $ 10,256 $ - $ 51,827

Loss on asset sales (111) - - (111) and disposals

Total revenues and $ 41,460 $ 10,256 $ - $ 51,716 other income

Asset impairments $ 147,730 $ - $ - $ 147,730

Net income (loss)from continuing $ (115,355) $ 10,230 $ (14,323) $ (119,448) operations

Adjusted EBITDA ^ $ 35,561 $ 6,344 $ (3,931) $ 37,974 (1)

Cash flow providedby (used in) continuingoperations:

Operating $ 39,042 $ 6,344 $ (25,992) $ 19,394 activities

Investing $ 259 $ - $ - $ 259 activities

Financing $ - $ - $ (33,551) $ (33,551) activities

Distributable cash $ 39,323 $ 6,344 $ (25,992) $ 19,602 flow^ (1) (2)

Free cash flow^ (1) $ 39,412 $ 6,344 $ (25,992) $ 19,764



For the ThreeMonths Ended 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 continuing $ 19,173 $ 1,890 $ (13,847) $ 7,216 operations

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

Cash flow providedby (used in) continuingoperations:

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

Investing $ 332 $ - $ - $ 332 activities

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

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

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

____________________(1)

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

(2)

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

____________________(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 years ended December 31, 2020 and 2019:

Operating Business Segments

Coal Royalty and Other

Corporate and Financing

(In thousands)

Soda Ash

Total

For the Year Ended December 31, 2020

Revenues

$

129,011

$

10,728

$

-

$

139,739

Gain on asset sales and disposals

581

-

-

581

Total revenues and other income

$

129,592

$

10,728

$

-

$

140,320

Asset impairments

$

135,885

$

-

$

-

$

135,885

Net income (loss) from continuing operations

$

(40,180)

$

10,543

$

(55,182)

$

(84,819)

Adjusted EBITDA (1)

$

104,982

$

14,025

$

(14,293)

$

104,714

Cash flow provided by (used in) continuing operations:

Operating activities

$

124,737

$

14,037

$

(51,206)

$

87,568

Investing activities

$

1,745

$

-

$

-

$

1,745

Financing activities

$

-

$

-

$

(87,788)

$

(87,788)

Distributable cash flow (1) (2)

$

127,482

$

14,037

$

(51,206)

$

90,248

Free cash flow (1)

$

125,859

$

14,037

$

(51,206)

$

88,690

For the Year Ended December 31, 2019

Revenues

$

210,348

$

47,089

$

-

$

257,437

Gain on asset sales and disposals

6,498

-

-

6,498

Total revenues and other income

$

216,846

$

47,089

$

-

$

263,935

Asset impairments

$

148,214

$

-

$

-

$

148,214

Net income (loss) from continuing operations

$

21,211

$

46,840

$

(93,465)

$

(25,414)

Adjusted EBITDA (1)

$

184,357

$

31,601

$

(16,730)

$

199,228

Cash flow provided by (used in) continuing operations:

Operating activities

$

178,863

$

31,601

$

(73,145)

$

137,319

Investing activities

$

8,221

$

-

$

-

$

8,221

Financing activities

$

-

$

-

$

(253,305)

$

(253,305)

Distributable cash flow (1) (2)

$

187,106

$

31,601

$

(73,145)

$

144,933

Free cash flow (1)

$

180,584

$

31,601

$

(73,145)

$

139,040

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

The following tables present NRP's unaudited business results by segment forthe years ended December 31, 2020 and 2019:

Operating Business Segments

Coal Royalty Corporate and and Other Financing(In thousands) Soda Ash Total

For the Year Ended December 31, 2020

Revenues $ 129,011 $ 10,728 $ - $ 139,739

Gain on asset sales 581 - - 581 and disposals

Total revenues and $ 129,592 $ 10,728 $ - $ 140,320 other income

Asset impairments $ 135,885 $ - $ - $ 135,885

Net income (loss)from continuing $ (40,180) $ 10,543 $ (55,182) $ (84,819) operations

Adjusted EBITDA ^ $ 104,982 $ 14,025 $ (14,293) $ 104,714 (1)

Cash flow providedby (used in) continuingoperations:

Operating $ 124,737 $ 14,037 $ (51,206) $ 87,568 activities

Investing $ 1,745 $ - $ - $ 1,745 activities

Financing $ - $ - $ (87,788) $ (87,788) activities

Distributable cash $ 127,482 $ 14,037 $ (51,206) $ 90,248 flow ^(1) (2)

Free cash flow ^(1) $ 125,859 $ 14,037 $ (51,206) $ 88,690



For the Year Ended December 31, 2019

Revenues $ 210,348 $ 47,089 $ - $ 257,437

Gain on asset sales 6,498 - - 6,498 and disposals

Total revenues and $ 216,846 $ 47,089 $ - $ 263,935 other income

Asset impairments $ 148,214 $ - $ - $ 148,214

Net income (loss)from continuing $ 21,211 $ 46,840 $ (93,465) $ (25,414) operations

Adjusted EBITDA ^ $ 184,357 $ 31,601 $ (16,730) $ 199,228 (1)

Cash flow providedby (used in) continuingoperations:

Operating $ 178,863 $ 31,601 $ (73,145) $ 137,319 activities

Investing $ 8,221 $ - $ - $ 8,221 activities

Financing $ - $ - $ (253,305) $ (253,305) activities

Distributable cash $ 187,106 $ 31,601 $ (73,145) $ 144,933 flow ^(1) (2)

Free cash flow ^(1) $ 180,584 $ 31,601 $ (73,145) $ 139,040

____________________(1)

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

(2)

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

____________________(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 Year Ended

December 31,

September 30,

December 31,

(In thousands, except per ton data)

2020

2019

2020

2020

2019

Coal sales volumes (tons)

Appalachia

Northern (1)

131

686

102

647

3,460

Central

2,468

2,908

2,247

10,111

13,377

Southern

69

498

172

889

1,670

Total Appalachia

2,668

4,092

2,521

11,647

18,507

Illinois Basin

1,540

555

758

3,381

2,201

Northern Powder River Basin

506

1,057

365

1,738

3,036

Total coal sales volumes

4,714

5,704

3,644

16,766

23,744

Coal royalty revenue per ton

Appalachia

Northern (1)

$

2.92

$

0.88

$

3.06

$

2.36

$

1.96

Central

3.84

4.58

3.83

4.17

5.53

Southern

5.28

5.96

4.78

4.75

6.69

Illinois Basin

2.21

4.53

1.63

2.36

4.66

Northern Powder River Basin

3.11

2.33

3.46

3.50

2.90

Combined average coal royalty revenue per ton

3.23

3.84

3.36

3.70

4.67

Coal royalty revenues

Appalachia

Northern (1)

$

383

$

602

$

312

$

1,526

$

6,775

Central

9,481

13,332

8,602

42,207

73,960

Southern

364

2,965

823

4,221

11,169

Total Appalachia

10,228

16,899

9,737

47,954

91,904

Illinois Basin

3,403

2,516

1,234

7,973

10,255

Northern Powder River Basin

1,576

2,462

1,262

6,086

8,809

Unadjusted coal royalty revenues

15,207

21,877

12,233

62,013

110,968

Coal royalty adjustment for minimum leases (2)

(3,898)

174

(1,623)

(10,145)

(1,356)

Total coal royalty revenues

$

11,309

$

22,051

$

10,610

$

51,868

$

109,612

Other revenues

Production lease minimum revenue (2)

$

8,195

$

2,737

$

4,267

$

21,749

$

24,068

Minimum lease straight-line revenues (2)

4,447

3,758

3,553

16,796

14,910

Property tax revenues

1,530

1,871

1,896

5,786

6,287

Wheelage revenues

1,557

845

1,680

7,025

5,880

Coal overriding royalty revenues

1,658

3,333

1,314

4,977

13,496

Lease amendment revenues

859

1,271

858

3,450

7,991

Aggregates royalty revenues

649

610

221

1,717

4,265

Oil and gas royalty revenues

893

456

1,078

5,816

3,031

Other revenues

230

100

263

982

1,529

Total other revenues

$

20,018

$

14,981

$

15,130

$

68,298

$

81,457

Coal royalty and other

$

31,327

$

37,032

$

25,740

$

120,166

$

191,069

Transportation and processing services revenues

2,194

4,539

2,204

8,845

19,279

Gain (loss) on asset sales and disposals

116

(111)

-

581

6,498

Total Coal Royalty and Other segment revenues and other income

$

33,637

$

41,460

$

27,944

$

129,592

$

216,846

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Operating Statistics - Coal Royalty and Other



For the Three Months Ended For the Year Ended

December 31, September December 31, 30,

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

Coal sales volumes (tons)

Appalachia

Northern ^(1) 131 686 102 647 3,460

Central 2,468 2,908 2,247 10,111 13,377

Southern 69 498 172 889 1,670

Total 2,668 4,092 2,521 11,647 18,507 Appalachia

Illinois Basin 1,540 555 758 3,381 2,201

NorthernPowder River 506 1,057 365 1,738 3,036 Basin

Total coal 4,714 5,704 3,644 16,766 23,744 sales volumes

Coal royaltyrevenue per ton

Appalachia

Northern ^(1) $ 2.92 $ 0.88 $ 3.06 $ 2.36 $ 1.96

Central 3.84 4.58 3.83 4.17 5.53

Southern 5.28 5.96 4.78 4.75 6.69

Illinois Basin 2.21 4.53 1.63 2.36 4.66

NorthernPowder River 3.11 2.33 3.46 3.50 2.90 Basin

Combinedaverage coalroyalty 3.23 3.84 3.36 3.70 4.67 revenue perton

Coal royalty revenues

Appalachia

Northern ^(1) $ 383 $ 602 $ 312 $ 1,526 $ 6,775

Central 9,481 13,332 8,602 42,207 73,960

Southern 364 2,965 823 4,221 11,169

Total 10,228 16,899 9,737 47,954 91,904 Appalachia

Illinois Basin 3,403 2,516 1,234 7,973 10,255

NorthernPowder River 1,576 2,462 1,262 6,086 8,809 Basin

Unadjustedcoal royalty 15,207 21,877 12,233 62,013 110,968 revenues

Coal royaltyadjustment for (3,898) 174 (1,623) (10,145) (1,356) minimum leases^ (2)

Total coalroyalty $ 11,309 $ 22,051 $ 10,610 $ 51,868 $ 109,612 revenues

Other revenues

Productionlease minimum $ 8,195 $ 2,737 $ 4,267 $ 21,749 $ 24,068 revenue ^(2)

Minimum leasestraight-line 4,447 3,758 3,553 16,796 14,910 revenues ^(2)

Property tax 1,530 1,871 1,896 5,786 6,287 revenues

Wheelage 1,557 845 1,680 7,025 5,880 revenues

Coaloverriding 1,658 3,333 1,314 4,977 13,496 royaltyrevenues

Leaseamendment 859 1,271 858 3,450 7,991 revenues

Aggregatesroyalty 649 610 221 1,717 4,265 revenues

Oil and gasroyalty 893 456 1,078 5,816 3,031 revenues

Other revenues 230 100 263 982 1,529

Total other $ 20,018 $ 14,981 $ 15,130 $ 68,298 $ 81,457 revenues

Coal royalty $ 31,327 $ 37,032 $ 25,740 $ 120,166 $ 191,069 and other

Transportationand processing 2,194 4,539 2,204 8,845 19,279 servicesrevenues

Gain (loss) onasset sales 116 (111) - 581 6,498 and disposals

Total CoalRoyalty andOther segment $ 33,637 $ 41,460 $ 27,944 $ 129,592 $ 216,846 revenues andother income

___________________(1)

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

(2)

Effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or minimum lease straight-line revenues due to contract modifications with Foresight Energy Resources LLC ("Foresight") that fixed consideration paid to us over a two-year period.

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

Effective January 1, 2020, certain revenues previously classified as coal royalty revenues are classified as production lease minimum revenues or(2) minimum lease straight-line revenues due to contract modifications with Foresight Energy Resources LLC ("Foresight") 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 December 31, 2020

Net income (loss) from continuing operations

22,382

5,484

(13,179)

$

14,687

Less: equity earnings from unconsolidated investment

-

(5,528)

-

(5,528)

Add: total distributions from unconsolidated investment

-

-

-

-

Add: interest expense, net

23

-

10,054

10,077

Add: depreciation, depletion and amortization

3,013

-

-

3,013

Add: asset impairments

2,668

-

-

2,668

Adjusted EBITDA

$

28,086

$

(44)

$

(3,125)

$

24,917

For the Three Months Ended December 31, 2019

Net income (loss) from continuing operations

$

(115,355)

$

10,230

$

(14,323)

$

(119,448)

Less: equity earnings from unconsolidated investment

-

(10,256)

-

(10,256)

Add: total distributions from unconsolidated investment

-

6,370

-

6,370

Add: interest expense, net

-

-

10,392

10,392

Add: depreciation, depletion and amortization

3,186

-

-

3,186

Add: asset impairments

147,730

-

-

147,730

Adjusted EBITDA

$

35,561

$

6,344

$

(3,931)

$

37,974

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: depreciation, depletion and amortization

2,111

-

-

2,111

Add: asset impairments

934

-

-

934

Adjusted EBITDA

$

22,259

$

(96)

$

(3,634)

$

18,529

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA



Coal Royalty Corporate and Other and(In thousands) Soda Ash Financing Total

For the ThreeMonths Ended December 31, 2020

Net income (loss)from continuing 22,382 5,484 (13,179) $ 14,687 operations

Less: equityearnings from - (5,528) - (5,528) unconsolidatedinvestment

Add: totaldistributions from - - - - unconsolidatedinvestment

Add: interest 23 - 10,054 10,077 expense, net

Add: depreciation,depletion and 3,013 - - 3,013 amortization

Add: asset 2,668 - - 2,668 impairments

Adjusted EBITDA $ 28,086 $ (44) $ (3,125) $ 24,917



For the ThreeMonths Ended December 31, 2019

Net income (loss)from continuing $ (115,355) $ 10,230 $ (14,323) $ (119,448) operations

Less: equityearnings from - (10,256) - (10,256) unconsolidatedinvestment

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

Add: interest - - 10,392 10,392 expense, net

Add: depreciation,depletion and 3,186 - - 3,186 amortization

Add: asset 147,730 - - 147,730 impairments

Adjusted EBITDA $ 35,561 $ 6,344 $ (3,931) $ 37,974



For the ThreeMonths Ended September 30, 2020

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

Less: equityearnings from - (1,986) - (1,986) unconsolidatedinvestment

Add: totaldistributions from - - - - unconsolidatedinvestment

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

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

Add: asset 934 - - 934 impairments

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA

Coal Royalty and Other

Corporate and Financing

(In thousands)

Soda Ash

Total

For the Year Ended December 31, 2020

Net income (loss) from continuing operations

$

(40,180)

$

10,543

$

(55,182)

$

(84,819)

Less: equity earnings from unconsolidated investment

-

(10,728)

-

(10,728)

Add: total distributions from unconsolidated investment

-

14,210

-

14,210

Add: interest expense, net

79

-

40,889

40,968

Add: loss on extinguishment of debt

-

-

-

-

Add: depreciation, depletion and amortization

9,198

-

-

9,198

Add: asset impairments

135,885

-

-

135,885

Adjusted EBITDA

$

104,982

$

14,025

$

(14,293)

$

104,714

For the Year Ended December 31, 2019

Net income (loss) from continuing operations

$

21,211

$

46,840

$

(93,465)

$

(25,414)

Less: equity earnings from unconsolidated investment

-

(47,089)

-

(47,089)

Add: total distributions from unconsolidated investment

-

31,850

-

31,850

Add: interest expense, net

-

-

47,453

47,453

Add: loss on extinguishment of debt

-

-

29,282

29,282

Add: depreciation, depletion and amortization

14,932

-

-

14,932

Add: asset impairments

148,214

-

-

148,214

Adjusted EBITDA

$

184,357

$

31,601

$

(16,730)

$

199,228

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Adjusted EBITDA



Coal Royalty Corporate and Other and(In thousands) Soda Ash Financing Total

For the Year Ended December 31, 2020

Net income (loss)from continuing $ (40,180) $ 10,543 $ (55,182) $ (84,819) operations

Less: equity earningsfrom unconsolidated - (10,728) - (10,728) investment

Add: totaldistributions from - 14,210 - 14,210 unconsolidatedinvestment

Add: interest 79 - 40,889 40,968 expense, net

Add: loss onextinguishment of - - - - debt

Add: depreciation,depletion and 9,198 - - 9,198 amortization

Add: asset 135,885 - - 135,885 impairments

Adjusted EBITDA $ 104,982 $ 14,025 $ (14,293) $ 104,714



For the Year Ended December 31, 2019

Net income (loss)from continuing $ 21,211 $ 46,840 $ (93,465) $ (25,414) operations

Less: equity earningsfrom unconsolidated - (47,089) - (47,089) investment

Add: totaldistributions from - 31,850 - 31,850 unconsolidatedinvestment

Add: interest - - 47,453 47,453 expense, net

Add: loss onextinguishment of - - 29,282 29,282 debt

Add: depreciation,depletion and 14,932 - - 14,932 amortization

Add: asset 148,214 - - 148,214 impairments

Adjusted EBITDA $ 184,357 $ 31,601 $ (16,730) $ 199,228

Natural Resource Partners L.P.

Financial Tables

(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 December 31, 2020

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

$

33,655

$

(54)

$

(20,446)

13,155

Add: proceeds from asset sales and disposals

116

-

-

116

Add: proceeds from sale of discontinued operations

-

-

-

1

Add: return of long-term contract receivable

660

-

-

660

Distributable cash flow

$

34,431

$

(54)

$

(20,446)

$

13,932

Less: proceeds from asset sales and disposals

(116)

-

-

(116)

Less: proceeds from sale of discontinued operations

-

-

-

(1)

Less: acquisition costs

-

-

-

-

Free cash flow

$

34,315

$

(54)

$

(20,446)

$

13,815

For the Three Months Ended December 31, 2019

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

$

39,042

$

6,344

$

(25,992)

$

19,394

Add: proceeds from asset sales and disposals

(111)

-

-

(111)

Add: proceeds from sale of discontinued operations

-

-

-

(73)

Add: return of long-term contract receivable

392

-

-

392

Distributable cash flow

$

39,323

$

6,344

$

(25,992)

$

19,602

Less: proceeds from asset sales and disposals

111

-

-

111

Less: proceeds from sale of discontinued operations

-

-

-

73

Less: acquisition costs

(22)

-

-

(22)

Free cash flow

$

39,412

$

6,344

$

(25,992)

$

19,764

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

Natural Resource Partners L.P.

Financial Tables

(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 December 31, 2020

Net cash provided by (usedin) operating activities $ 33,655 $ (54) $ (20,446) 13,155 of continuing operations

Add: proceeds from asset 116 - - 116 sales and disposals

Add: proceeds from sale of - - - 1 discontinued operations

Add: return of long-term 660 - - 660 contract receivable

Distributable cash flow $ 34,431 $ (54) $ (20,446) $ 13,932

Less: proceeds from asset (116) - - (116) sales and disposals

Less: proceeds from sale - - - (1) of discontinued operations

Less: acquisition costs - - - -

Free cash flow $ 34,315 $ (54) $ (20,446) $ 13,815



For the Three Months Ended December 31, 2019

Net cash provided by (usedin) operating activities $ 39,042 $ 6,344 $ (25,992) $ 19,394 of continuing operations

Add: proceeds from asset (111) - - (111) sales and disposals

Add: proceeds from sale of - - - (73) discontinued operations

Add: return of long-term 392 - - 392 contract receivable

Distributable cash flow $ 39,323 $ 6,344 $ (25,992) $ 19,602

Less: proceeds from asset 111 - - 111 sales and disposals

Less: proceeds from sale - - - 73 of discontinued operations

Less: acquisition costs (22) - - (22)

Free cash flow $ 39,412 $ 6,344 $ (25,992) $ 19,764



For the Three Months Ended September 30, 2020

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

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Distributable Cash Flow and Free Cash Flow

Coal Royalty and Other

Corporate and Financing

(In thousands)

Soda Ash

Total

For the Year Ended December 31, 2020

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

$

124,737

$

14,037

$

(51,206)

$

87,568

Add: proceeds from asset sales and disposals

623

-

-

623

Add: proceeds from sale of discontinued operations

-

-

-

(65)

Add: return of long-term contract receivable

2,122

-

-

2,122

Distributable cash flow

$

127,482

$

14,037

$

(51,206)

$

90,248

Less: proceeds from asset sales and disposals

(623)

-

-

(623)

Less: proceeds from sale of discontinued operations

-

-

-

65

Less: acquisition costs

(1,000)

-

-

(1,000)

Free cash flow

$

125,859

$

14,037

$

(51,206)

$

88,690

For the Year Ended December 31, 2019

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

$

178,863

$

31,601

$

(73,145)

$

137,319

Add: proceeds from asset sales and disposals

6,500

-

-

6,500

Add: proceeds from sale of discontinued operations

-

-

-

(629)

Add: return of long-term contract receivable

1,743

-

-

1,743

Distributable cash flow

$

187,106

$

31,601

$

(73,145)

$

144,933

Less: proceeds from asset sales and disposals

(6,500)

-

-

(6,500)

Less: proceeds from sale of discontinued operations

-

-

-

629

Less: acquisition costs

(22)

-

-

(22)

Free cash flow

$

180,584

$

31,601

$

(73,145)

$

139,040

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Distributable Cash Flow and Free Cash Flow



Coal Corporate Royalty and(In thousands) and Other Soda Ash Financing Total

For the Year Ended December 31, 2020

Net cash provided by(used in) operating $ 124,737 $ 14,037 $ (51,206) $ 87,568 activities ofcontinuing operations

Add: proceeds fromasset sales and 623 - - 623 disposals

Add: proceeds from saleof discontinued - - - (65) operations

Add: return oflong-term contract 2,122 - - 2,122 receivable

Distributable cash flow $ 127,482 $ 14,037 $ (51,206) $ 90,248

Less: proceeds fromasset sales and (623) - - (623) disposals

Less: proceeds fromsale of discontinued - - - 65 operations

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

Free cash flow $ 125,859 $ 14,037 $ (51,206) $ 88,690



For the Year Ended December 31, 2019

Net cash provided by(used in) operating $ 178,863 $ 31,601 $ (73,145) $ 137,319 activities ofcontinuing operations

Add: proceeds fromasset sales and 6,500 - - 6,500 disposals

Add: proceeds from saleof discontinued - - - (629) operations

Add: return oflong-term contract 1,743 - - 1,743 receivable

Distributable cash flow $ 187,106 $ 31,601 $ (73,145) $ 144,933

Less: proceeds fromasset sales and (6,500) - - (6,500) disposals

Less: proceeds fromsale of discontinued - - - 629 operations

Less: acquisition costs (22) - - (22)

Free cash flow $ 180,584 $ 31,601 $ (73,145) $ 139,040

Cash Flow Cushion

For the Year Ended December 31,

(In thousands)

2020

2019

Free cash flow

$

88,690

$

139,040

Less: mandatory Opco debt repayments

(46,176)

(68,128)

Less: preferred unit distributions and redemption of PIK units

(26,363)

(30,000)

Less: common unit distributions

(16,890)

(33,150)

Cash flow cushion

$

(739)

$

7,762

Cash Flow Cushion

For the Year Ended December 31,

(In thousands) 2020 2019

Free cash flow $ 88,690 $ 139,040

Less: mandatory Opco debt repayments (46,176) (68,128)

Less: preferred unit distributions and redemption (26,363) (30,000) of PIK units

Less: common unit distributions (16,890) (33,150)

Cash flow cushion $ (739) $ 7,762

Leverage Ratio

(In thousands)

For the Year Ended December 31, 2020

Adjusted EBITDA

$

104,714

Debt-at December 31, 2020

$

477,880

Leverage Ratio (1)

4.6x

Leverage Ratio

(In thousands) For the Year Ended December 31, 2020

Adjusted EBITDA $ 104,714

Debt-at December 31, 2020 $ 477,880

Leverage Ratio ^(1) 4.6x

___________________(1)

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2020 divided by the last twelve months' Adjusted EBITDA. 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 December 31, 2020, was 4.6x as calculated under the indenture governing NRP's 2025 parent company notes.

___________________ Leverage Ratio is calculated as the outstanding principal of NRP's debt as of December 31, 2020 divided by the last twelve months' Adjusted EBITDA. Note that Adjusted EBITDA under the indenture governing NRP's(1) 2025 parent company notes may be different than the amount shown above. However, NRP's last twelve months Leverage ratio as of December 31, 2020, was 4.6x as calculated under the indenture governing NRP's 2025 parent company notes.

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Return on Capital Employed ("ROCE")

Coal Royalty and Other

Corporate and Financing

(In thousands)

Soda Ash

Total

LTM Ended December 31, 2020

Net income (loss) from continuing operations

$

(40,180)

$

10,543

$

(55,182)

$

(84,819)

Financing costs

79

-

41,275

41,354

Return

$

(40,101)

$

10,543

$

(13,907)

$

(43,465)

As of December 31, 2019

Total assets of continuing operations

$

817,768

$

263,080

$

3,353

$

1,084,201

Less: total current liabilities of continuing operations excluding current debt

(11,542)

-

(5,325)

(16,867)

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

(51,700)

-

(462)

(52,162)

Capital employed excluding discontinued operations

$

754,526

$

263,080

$

(2,434)

$

1,015,172

Total partners' capital (1)

$

757,461

$

263,080

$

(683,219)

$

338,963

Less: non-controlling interest

(2,935)

-

-

(2,935)

Less: partners' capital from discontinued operations

-

-

-

(1,641)

Total partners' capital excluding discontinued operations

$

754,526

$

263,080

$

(683,219)

$

334,387

Class A convertible preferred units

-

-

164,587

164,587

Debt

-

-

516,198

516,198

Capital employed excluding discontinued operations

$

754,526

$

263,080

$

(2,434)

$

1,015,172

ROCE excluding discontinued operations

(5.3)%

4.0%

N/A

(4.3)%

Excluding asset impairments:

Return

$

(40,101)

$

10,543

$

(13,907)

$

(43,465)

Add: asset impairments

135,885

-

-

135,885

Return excluding asset impairments

$

95,784

$

10,543

$

(13,907)

$

92,420

ROCE excluding discontinued operations and asset impairments

12.7%

4.0%

N/A

9.1%

Natural Resource Partners L.P.

Financial Tables

(Unaudited)

Return on Capital Employed ("ROCE")

Coal Royalty Corporate and and Other Financing(In thousands) Soda Ash Total

LTM Ended December 31, 2020

Net income (loss)from continuing $ (40,180) $ 10,543 $ (55,182) $ (84,819) operations

Financing costs 79 - 41,275 41,354

Return $ (40,101) $ 10,543 $ (13,907) $ (43,465)



As of December 31, 2019

Total assets ofcontinuing $ 817,768 $ 263,080 $ 3,353 $ 1,084,201 operations

Less: totalcurrentliabilities ofcontinuing (11,542) - (5,325) (16,867) operationsexcluding currentdebt

Less: totallong-termliabilities ofcontinuing (51,700) - (462) (52,162) operationsexcludinglong-term debt

Capital employedexcluding $ 754,526 $ 263,080 $ (2,434) $ 1,015,172 discontinuedoperations



Total partners' $ 757,461 $ 263,080 $ (683,219) $ 338,963 capital ^(1)

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

Less: partners'capital from - - - (1,641) discontinuedoperations

Total partners'capital excluding $ 754,526 $ 263,080 $ (683,219) $ 334,387 discontinuedoperations

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

Debt - - 516,198 516,198

Capital employedexcluding $ 754,526 $ 263,080 $ (2,434) $ 1,015,172 discontinuedoperations



ROCE excludingdiscontinued (5.3)% 4.0% N/A (4.3)%operations



Excluding asset impairments:

Return $ (40,101) $ 10,543 $ (13,907) $ (43,465)

Add: asset 135,885 - - 135,885 impairments

Return excluding $ 95,784 $ 10,543 $ (13,907) $ 92,420 asset impairments



ROCE excludingdiscontinued 12.7% 4.0% N/A 9.1%operations andasset impairments

___________________(1)

Total partners' capital includes $1.6 million from discontinued operations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210315005122/en/

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