Business Wire | Aug 6, 2021 06:55AM EDT

Natural Resource Partners L.P. Reports Second Quarter 2021 Results and Declares Second Quarter 2021 Distributions

Aug. 06, 2021

HOUSTON--(BUSINESS WIRE)--Aug. 06, 2021--Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2021 results as follows:

For the Last Twelve Three Months Months Ended Ended

(In thousands) (Unaudited) June 30, 2021

Net income $ 15,382 $ 45,666

Asset impairments 16 7,661

Net income excluding asset impairments ^(1) $ 15,398 $ 53,327

Adjusted EBITDA ^(1) 27,351 100,233

Cash flow provided by (used in) continuing operations:

Operating activities 13,384 74,062

Investing activities 657 2,365

Financing activities (12,900 ) (89,347 )

Free cash flow ^(1) 12,925 75,136

Cash flow cushion (last twelve months) ^(1) (12,522 )

___________________(1)

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

"NRP saw continued strength in demand for steel, glass and electricity in the second quarter of 2021, resulting in stable free cash flow generation and strong liquidity. We are continuing to reduce debt, maintain robust liquidity and maximize unitholder value as we navigate the ongoing effects of the COVID-19 pandemic," said Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $197.9 million at June 30, 2021, consisting of $97.9 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 second quarter 2021 cash distribution of $0.45 per common unit of NRP to be paid on August 26, 2021 to unitholders of record on August 19, 2021. In addition, the Board declared a $7.8 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. The preferred unit distribution includes interest on previously paid-in-kind units and will be paid one-half in cash and one-half in kind through the issuance of additional preferred units.

Segment Performance

Coal Royalty and Other

In the second quarter of 2021 net income increased $134.4 million as compared to the prior year period primarily due to a $132.3 million non-cash asset impairment expense recorded in the second quarter of 2020 that was primarily related to weakened coal markets compounded by the COVID-19 pandemic. Free cash flow was relatively flat in the second quarter of 2021 as compared to the prior year period as increased coal royalty cash flow due to stronger coal demand in the second quarter of 2021 was offset by $5 million of increased cash flow in the second quarter of 2020 related to the emergence of a lessee from bankruptcy. Approximately 65% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2021.

Metallurgical coal markets have rebounded from the lows seen in 2020 and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have significantly improved from the lows seen in 2020, but still face ongoing negative effects of the COVID-19 pandemic and the long-term challenges of lower electricity demand, competition from natural gas, and the secular shift to renewable energy. However, NRP does not have significant sensitivity to thermal coal price movements this year since the substantial majority of NRP's thermal cash flows are fixed through 2021 pursuant to a contract with Foresight Energy that went into effect as they emerged from bankruptcy last year.

In addition to actively managing its currently producing coal and hard mineral properties over the last year, NRP continues working to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities NRP is exploring include the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy. While the timing and likelihood of cash flows being realized from any of these activities is highly uncertain, NRP believes its large ownership footprint throughout the United States will provide opportunities to create value in this regard with minimal capital investment by NRP.

Soda Ash

Net income in the second quarter of 2021 increased $5.7 million as compared to the prior year period primarily as a result of increased sales volumes as demand for soda ash continued to rebound from its lows in 2020 caused by the global COVID-19 pandemic. Free cash flow was lower by $7.1 million as compared to the prior year period as a result of Ciner Wyoming's decision in August of 2020 to suspend its quarterly distributions in an effort to achieve greater financial and liquidity flexibility as a result of the COVID-19 pandemic. NRP does not expect Ciner Wyoming to resume regular cash distributions until they have greater visibility and confidence in the sustainability of the continuing improvement in global soda ash demand. 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.

NRP continues to believe 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 COVID-19.

Corporate and Financing

Corporate and financing costs in the second quarter of 2021 improved $0.9 million as compared to the prior year period primarily due to lower interest expense as a result of less debt outstanding in 2021. Free cash flow improved $0.5 million in the second quarter of 2021 as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding in 2021.

As noted earlier, NRP declared a second quarter 2021 preferred unit distribution of $7.8 million which will 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 June 30, 2021, NRP's leverage ratio was 4.6x. NRP expects its leverage ratio to begin a sustained long-term decline as NRP continues to pay down debt. Under the terms of the partnership agreement, if NRP's consolidated leverage ratio remains above 3.75x into 2022 and NRP remains unable to redeem any outstanding paid-in-kind preferred units, NRP would be required to temporarily suspend distributions on its common units until the leverage ratio drops below 3.75x and the outstanding paid-in-kind preferred units are redeemed. 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.

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/2296424. 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) 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, 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) 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.

"NRP saw continued strength in demand for steel, glass and electricity in the second quarter of 2021, resulting in stable free cash flow generation and strong liquidity. We are continuing to reduce debt, maintain robust liquidity and maximize unitholder value as we navigate the ongoing effects of the COVID-19 pandemic," said Craig Nunez, NRP's President and Chief Operating Officer.

NRP's liquidity was $197.9 million at June 30, 2021, consisting of $97.9 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 second quarter 2021 cash distribution of $0.45 per common unit of NRP to be paid on August 26, 2021 to unitholders of record on August 19, 2021. In addition, the Board declared a $7.8 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. The preferred unit distribution includes interest on previously paid-in-kind units and will be paid one-half in cash and one-half in kind through the issuance of additional preferred units.

Segment Performance

Coal Royalty and Other

In the second quarter of 2021 net income increased $134.4 million as compared to the prior year period primarily due to a $132.3 million non-cash asset impairment expense recorded in the second quarter of 2020 that was primarily related to weakened coal markets compounded by the COVID-19 pandemic. Free cash flow was relatively flat in the second quarter of 2021 as compared to the prior year period as increased coal royalty cash flow due to stronger coal demand in the second quarter of 2021 was offset by $5 million of increased cash flow in the second quarter of 2020 related to the emergence of a lessee from bankruptcy. Approximately 65% of coal royalty revenues and approximately 50% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2021.

Metallurgical coal markets have rebounded from the lows seen in 2020 and the outlook remains strong as steel demand driven by global economic recovery is more than offsetting challenges related to the COVID-19 pandemic. Domestic and export thermal coal markets have significantly improved from the lows seen in 2020, but still face ongoing negative effects of the COVID-19 pandemic and the long-term challenges of lower electricity demand, competition from natural gas, and the secular shift to renewable energy. However, NRP does not have significant sensitivity to thermal coal price movements this year since the substantial majority of NRP's thermal cash flows are fixed through 2021 pursuant to a contract with Foresight Energy that went into effect as they emerged from bankruptcy last year.

In addition to actively managing its currently producing coal and hard mineral properties over the last year, NRP continues working to identify alternative revenue sources across its large portfolio of land, mineral and timber assets. The types of opportunities NRP is exploring include the sequestration of carbon dioxide underground and in standing forests, and the generation of electricity using geothermal, solar and wind energy. While the timing and likelihood of cash flows being realized from any of these activities is highly uncertain, NRP believes its large ownership footprint throughout the United States will provide opportunities to create value in this regard with minimal capital investment by NRP.

Soda Ash

Net income in the second quarter of 2021 increased $5.7 million as compared to the prior year period primarily as a result of increased sales volumes as demand for soda ash continued to rebound from its lows in 2020 caused by the global COVID-19 pandemic. Free cash flow was lower by $7.1 million as compared to the prior year period as a result of Ciner Wyoming's decision in August of 2020 to suspend its quarterly distributions in an effort to achieve greater financial and liquidity flexibility as a result of the COVID-19 pandemic. NRP does not expect Ciner Wyoming to resume regular cash distributions until they have greater visibility and confidence in the sustainability of the continuing improvement in global soda ash demand. 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.

NRP continues to believe 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 COVID-19.

Corporate and Financing

Corporate and financing costs in the second quarter of 2021 improved $0.9 million as compared to the prior year period primarily due to lower interest expense as a result of less debt outstanding in 2021. Free cash flow improved $0.5 million in the second quarter of 2021 as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding in 2021.

As noted earlier, NRP declared a second quarter 2021 preferred unit distribution of $7.8 million which will 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 June 30, 2021, NRP's leverage ratio was 4.6x. NRP expects its leverage ratio to begin a sustained long-term decline as NRP continues to pay down debt. Under the terms of the partnership agreement, if NRP's consolidated leverage ratio remains above 3.75x into 2022 and NRP remains unable to redeem any outstanding paid-in-kind preferred units, NRP would be required to temporarily suspend distributions on its common units until the leverage ratio drops below 3.75x and the outstanding paid-in-kind preferred units are redeemed. 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.

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/2296424. 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) 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, 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) 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 Six Months Ended

June 30, March 31, June 30,

(In thousands,except per 2021 2020 2021 2021 2020unit data)

Revenues and other income

Coal royalty $ 33,611 $ 31,666 $ 32,927 $ 66,538 $ 63,099 and other

Transportationand processing 2,182 1,938 2,192 4,374 4,447 services

Equity (loss)in earnings of 2,601 (3,058 ) 1,973 4,574 3,214 Ciner Wyoming

Gain on assetsales and 116 465 59 175 465 disposals

Total revenuesand other $ 38,510 $ 31,011 $ 37,151 $ 75,661 $ 71,225 income



Operating expenses

Operating andmaintenance $ 5,170 $ 8,217 $ 5,552 $ 10,722 $ 13,419 expenses

Depreciation,depletion and 4,871 2,062 5,092 9,963 4,074 amortization

General andadministrative 3,388 3,621 4,110 7,498 7,534 expenses

Asset 16 132,283 4,043 4,059 132,283 impairments

Totaloperating $ 13,445 $ 146,183 $ 18,797 $ 32,242 $ 157,310 expenses



Income (loss)from $ 25,065 $ (115,172 ) $ 18,354 $ 43,419 $ (86,085 )operations



Interest $ (9,683 ) $ (10,329 ) $ (9,973 ) $ (19,656 ) $ (20,637 )expense, net



Net income $ 15,382 $ (125,501 ) $ 8,381 $ 23,763 $ (106,722 )(loss)

Less: incomeattributable (7,842 ) (7,613 ) (7,727 ) (15,569 ) (15,113 )to preferredunitholders

Net income(loss)attributableto common $ 7,540 $ (133,114 ) $ 654 $ 8,194 $ (121,835 )unitholdersand thegeneralpartner



Net income(loss)attributable $ 7,389 $ (130,452 ) $ 641 $ 8,030 $ (119,398 )to commonunitholders

Net income(loss)attributable 151 (2,662 ) 13 164 (2,437 )to the generalpartner



Net income(loss) per common unit

Basic $ 0.60 $ (10.64 ) $ 0.05 $ 0.65 $ (9.74 )

Diluted 0.56 (10.64 ) 0.05 0.65 (9.74 )



Net income $ 15,382 $ (125,501 ) $ 8,381 $ 23,763 $ (106,722 )(loss)

Comprehensiveincome fromunconsolidated 2,533 1,359 732 3,265 336 investment andother

Comprehensive $ 17,915 $ (124,142 ) $ 9,113 $ 27,028 $ (106,386 )income (loss)

Natural Resource Partners L.P. Financial Tables (Unaudited)

Consolidated Statements of Cash Flows

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

June 30,

(In thousands)

2021

2020

2021

2021

2020

Cash flows from operating activities

Net income (loss)

$

15,382

$

(125,501

)

$

8,381

$

23,763

$

(106,722

)

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

Depreciation, depletion and amortization

4,871

2,062

5,092

9,963

4,074

Distributions from unconsolidated investment

-

7,105

3,920

3,920

14,210

Equity earnings from unconsolidated investment

(2,601

)

3,058

(1,973

)

(4,574

)

(3,214

)

Gain on asset sales and disposals

(116

)

(465

)

(59

)

(175

)

(465

)

Asset impairments

16

132,283

4,043

4,059

132,283

Bad debt expense

(737

)

3,847

383

(354

)

3,657

Unit-based compensation expense

593

924

1,126

1,719

1,653

Amortization of debt issuance costs and other

977

(1,534

)

269

1,246

(1,086

)

Change in operating assets and liabilities:

Accounts receivable

162

8,446

(3,331

)

(3,169

)

3,373

Accounts payable

(83

)

(44

)

(10

)

(93

)

49

Accrued liabilities

1,838

(915

)

(3,034

)

(1,196

)

(3,776

)

Accrued interest

(7,424

)

(7,351

)

7,133

(291

)

(291

)

Deferred revenue

677

2,202

(146

)

531

10,467

Other items, net

(171

)

(4,182

)

1,406

1,235

(4,122

)

Net cash provided by operating activities of continuing operations

$

13,384

$

19,935

$

23,200

$

36,584

$

50,090

Net cash provided by operating activities of discontinued operations

-

-

-

-

1,706

Net cash provided by operating activities

$

13,384

$

19,935

$

23,200

$

36,584

$

51,796

Cash flows from investing activities

Proceeds from asset sales and disposals

$

116

$

507

$

59

$

175

$

507

Return of long-term contract receivable

541

858

541

1,082

1,130

Acquisition of non-controlling interest in BRP

-

(1,000

)

-

-

(1,000

)

Net cash provided by investing activities of continuing operations

$

657

$

365

$

600

$

1,257

$

637

Net cash used in investing activities of discontinued operations

-

-

-

-

(66

)

Net cash provided by investing activities

$

657

$

365

$

600

$

1,257

$

571

Cash flows from financing activities

Debt repayments

$

(2,365

)

$

(2,365

)

$

(16,696

)

$

(19,061

)

$

(19,061

)

Distributions to common unitholders and the general partner

(5,672

)

-

(5,630

)

(11,302

)

(5,630

)

Distributions to preferred unitholders

(3,864

)

(7,613

)

(3,806

)

(7,670

)

(15,113

)

Contributions from discontinued operations

-

-

-

-

1,640

Acquisition of non-controlling interest in BRP

(1,000

)

-

-

(1,000

)

-

Other items

1

-

(691

)

(690

)

-

Net cash used in financing activities of continuing operations

$

(12,900

)

$

(9,978

)

$

(26,823

)

$

(39,723

)

$

(38,164

)

Net cash used in financing activities of discontinued operations

-

-

-

-

(1,640

)

Net cash used in financing activities

$

(12,900

)

$

(9,978

)

$

(26,823

)

$

(39,723

)

$

(39,804

)

Net increase (decrease) in cash and cash equivalents

$

1,141

$

10,322

$

(3,023

)

$

(1,882

)

$

12,563

Cash and cash equivalents at beginning of period

96,767

100,506

99,790

99,790

98,265

Cash and cash equivalents at end of period

$

97,908

$

110,828

$

96,767

$

97,908

$

110,828

Supplemental cash flow information:

Cash paid for interest

$

16,611

$

17,183

$

2,320

$

18,931

$

20,222

Non-cash investing and financing activities:

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

$

-

$

924

$

992

$

-

$

924

Preferred unit distributions paid-in-kind

3,863

-

3,806

7,669

-

Natural Resource Partners L.P.Financial Tables(Unaudited)



Consolidated Statements of Cash Flows



For the Three Months Ended For the Six Months Ended

June 30, March 31, June 30,

(In thousands) 2021 2020 2021 2021 2020

Cash flows fromoperating activities

Net income $ 15,382 $ (125,501 ) $ 8,381 $ 23,763 $ (106,722 )(loss)

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

Depreciation,depletion and 4,871 2,062 5,092 9,963 4,074 amortization

Distributionsfrom - 7,105 3,920 3,920 14,210 unconsolidatedinvestment

Equity earningsfrom (2,601 ) 3,058 (1,973 ) (4,574 ) (3,214 )unconsolidatedinvestment

Gain on assetsales and (116 ) (465 ) (59 ) (175 ) (465 )disposals

Asset 16 132,283 4,043 4,059 132,283 impairments

Bad debt (737 ) 3,847 383 (354 ) 3,657 expense

Unit-basedcompensation 593 924 1,126 1,719 1,653 expense

Amortization ofdebt issuance 977 (1,534 ) 269 1,246 (1,086 )costs and other

Change inoperating assets andliabilities:

Accounts 162 8,446 (3,331 ) (3,169 ) 3,373 receivable

Accounts (83 ) (44 ) (10 ) (93 ) 49 payable

Accrued 1,838 (915 ) (3,034 ) (1,196 ) (3,776 )liabilities

Accrued (7,424 ) (7,351 ) 7,133 (291 ) (291 )interest

Deferred 677 2,202 (146 ) 531 10,467 revenue

Other items, (171 ) (4,182 ) 1,406 1,235 (4,122 )net

Net cashprovided byoperating $ 13,384 $ 19,935 $ 23,200 $ 36,584 $ 50,090 activities ofcontinuingoperations

Net cashprovided byoperating - - - - 1,706 activities ofdiscontinuedoperations

Net cashprovided by $ 13,384 $ 19,935 $ 23,200 $ 36,584 $ 51,796 operatingactivities



Cash flows frominvesting activities

Proceeds fromasset sales and $ 116 $ 507 $ 59 $ 175 $ 507 disposals

Return oflong-term 541 858 541 1,082 1,130 contractreceivable

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

Net cashprovided byinvesting $ 657 $ 365 $ 600 $ 1,257 $ 637 activities ofcontinuingoperations

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

Net cashprovided by $ 657 $ 365 $ 600 $ 1,257 $ 571 investingactivities



Cash flows fromfinancing activities

Debt repayments $ (2,365 ) $ (2,365 ) $ (16,696 ) $ (19,061 ) $ (19,061 )

Distributionsto commonunitholders and (5,672 ) - (5,630 ) (11,302 ) (5,630 )the generalpartner

Distributionsto preferred (3,864 ) (7,613 ) (3,806 ) (7,670 ) (15,113 )unitholders

Contributionsfrom - - - - 1,640 discontinuedoperations

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

Other items 1 - (691 ) (690 ) -

Net cash usedin financingactivities of $ (12,900 ) $ (9,978 ) $ (26,823 ) $ (39,723 ) $ (38,164 )continuingoperations

Net cash usedin financingactivities of - - - - (1,640 )discontinuedoperations

Net cash usedin financing $ (12,900 ) $ (9,978 ) $ (26,823 ) $ (39,723 ) $ (39,804 )activities



Net increase(decrease) in $ 1,141 $ 10,322 $ (3,023 ) $ (1,882 ) $ 12,563 cash and cashequivalents

Cash and cashequivalents at 96,767 100,506 99,790 99,790 98,265 beginning ofperiod

Cash and cashequivalents at $ 97,908 $ 110,828 $ 96,767 $ 97,908 $ 110,828 end of period



Supplementalcash flow information:

Cash paid for $ 16,611 $ 17,183 $ 2,320 $ 18,931 $ 20,222 interest

Non-cashinvesting and financingactivities:

Plant,equipment,mineral rightsand otherfunded with $ - $ 924 $ 992 $ - $ 924 accountspayable oraccruedliabilities

Preferred unitdistributions 3,863 - 3,806 7,669 - paid-in-kind

Natural Resource Partners L.P. Financial Tables

Consolidated Balance Sheets

June 30,

December 31,

(In thousands, except unit data)

2021

2020

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

97,908

$

99,790

Accounts receivable, net

15,322

12,322

Other current assets, net

4,038

5,080

Total current assets

$

117,268

$

117,192

Land

24,008

24,008

Mineral rights, net

447,155

460,373

Intangible assets, net

16,742

17,459

Equity in unconsolidated investment

266,433

262,514

Long-term contract receivable, net

32,514

33,264

Other long-term assets, net

6,085

7,067

Total assets

$

910,205

$

921,877

LIABILITIES AND CAPITAL

Current liabilities

Accounts payable

$

1,293

$

1,385

Accrued liabilities

5,746

7,733

Accrued interest

1,423

1,714

Current portion of deferred revenue

10,293

11,485

Current portion of long-term debt, net

39,060

39,055

Total current liabilities

$

57,815

$

61,372

Deferred revenue

51,793

50,069

Long-term debt, net

414,099

432,444

Other non-current liabilities

4,819

5,131

Total liabilities

$

528,526

$

549,016

Commitments and contingencies

Class A Convertible Preferred Units (261,420 and 253,750 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at June 30, 2021 and $1,700 per unit at December 31, 2020)

$

176,006

$

168,337

Partners' capital:

Common unitholders' interest (12,351,306 and 12,261,199 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

$

134,836

$

136,927

General partner's interest

434

459

Warrant holders' interest

66,816

66,816

Accumulated other comprehensive income

3,587

322

Total partners' capital

$

205,673

$

204,524

Total liabilities and capital

$

910,205

$

921,877

Natural Resource Partners L.P.Financial Tables



Consolidated Balance Sheets



June 30, December 31,

(In thousands, except unit data) 2021 2020

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents $ 97,908 $ 99,790

Accounts receivable, net 15,322 12,322

Other current assets, net 4,038 5,080

Total current assets $ 117,268 $ 117,192

Land 24,008 24,008

Mineral rights, net 447,155 460,373

Intangible assets, net 16,742 17,459

Equity in unconsolidated investment 266,433 262,514

Long-term contract receivable, net 32,514 33,264

Other long-term assets, net 6,085 7,067

Total assets $ 910,205 $ 921,877

LIABILITIES AND CAPITAL

Current liabilities

Accounts payable $ 1,293 $ 1,385

Accrued liabilities 5,746 7,733

Accrued interest 1,423 1,714

Current portion of deferred revenue 10,293 11,485

Current portion of long-term debt, net 39,060 39,055

Total current liabilities $ 57,815 $ 61,372

Deferred revenue 51,793 50,069

Long-term debt, net 414,099 432,444

Other non-current liabilities 4,819 5,131

Total liabilities $ 528,526 $ 549,016

Commitments and contingencies

Class A Convertible Preferred Units (261,420 and253,750 units issued and outstanding at June 30, 2021and December 31, 2020, respectively, at $1,000 par $ 176,006 $ 168,337 value per unit; liquidation preference of $1,850 perunit at June 30, 2021 and $1,700 per unit at December31, 2020)

Partners' capital:

Common unitholders' interest (12,351,306 and12,261,199 units issued and outstanding at June 30, $ 134,836 $ 136,927 2021 and December 31, 2020, respectively)

General partner's interest 434 459

Warrant holders' interest 66,816 66,816

Accumulated other comprehensive income 3,587 322

Total partners' capital $ 205,673 $ 204,524

Total liabilities and capital $ 910,205 $ 921,877

Natural Resource Partners L.P. Financial Tables (Unaudited)

Consolidated Statements of Partners' Capital

Common Unitholders

General

Partner

Warrant

Holders

Accumulated

Other

Comprehensive

Income

Partners'

Capital

Excluding

Non-

Controlling

Interest

Non-

Controlling

Interest

Total

Capital

(In thousands)

Units

Amounts

Balance at December 31, 2020

12,261

$

136,927

$

459

$

66,816

$

322

$

204,524

$

-

$

204,524

Net income (1)

-

8,213

168

-

-

8,381

-

8,381

Distributions to common unitholders and the general partner

-

(5,517

)

(113

)

-

-

(5,630

)

-

(5,630

)

Distributions to preferred unitholders

-

(7,461

)

(152

)

-

-

(7,613

)

-

(7,613

)

Issuance of unit-based awards

90

-

-

-

-

-

-

-

Unit-based awards amortization and vesting, net

-

215

-

-

-

215

-

215

Capital contribution

-

-

32

-

-

32

-

32

Comprehensive income from unconsolidated investment and other

-

-

-

-

732

732

-

732

Balance at March 31, 2021

12,351

$

132,377

$

394

$

66,816

$

1,054

$

200,641

$

-

$

200,641

Net income (2)

-

15,074

308

-

-

15,382

-

15,382

Distributions to common unitholders and general partner

-

(5,559

)

(113

)

-

-

(5,672

)

-

(5,672

)

Distributions to preferred unitholders

-

(7,571

)

(155

)

-

-

(7,726

)

-

(7,726

)

Unit-based awards amortization and vesting

-

515

-

-

-

515

-

515

Comprehensive income from unconsolidated investment and other

-

-

-

-

2,533

2,533

-

2,533

Balance at June 30, 2021

12,351

$

134,836

$

434

$

66,816

$

3,587

$

205,673

$

-

$

205,673

Natural Resource Partners L.P.Financial Tables(Unaudited)



Consolidated Statements of Partners' Capital

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

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

Net income ^ - 8,213 168 - - 8,381 - 8,381 (1)

Distributionsto commonunitholders - (5,517 ) (113 ) - - (5,630 ) - (5,630 )and thegeneralpartner

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

Issuance ofunit-based 90 - - - - - - - awards

Unit-basedawardsamortization - 215 - - - 215 - 215 and vesting,net

Capital - - 32 - - 32 - 32 contribution

Comprehensiveincome fromunconsolidated - - - - 732 732 - 732 investment andother

Balance at 12,351 $ 132,377 $ 394 $ 66,816 $ 1,054 $ 200,641 $ - $ 200,641 March 31, 2021

Net income ^ - 15,074 308 - - 15,382 - 15,382 (2)

Distributionsto commonunitholders - (5,559 ) (113 ) - - (5,672 ) - (5,672 )and generalpartner

Distributionsto preferred - (7,571 ) (155 ) - - (7,726 ) - (7,726 )unitholders

Unit-basedawards - 515 - - - 515 - 515 amortizationand vesting

Comprehensiveincome fromunconsolidated - - - - 2,533 2,533 - 2,533 investment andother

Balance at 12,351 $ 134,836 $ 434 $ 66,816 $ 3,587 $ 205,673 $ - $ 205,673 June 30, 2021

___________________(1)

Net income includes $7.7 million of income attributable to preferred unitholders that accumulated during the period, of which $7.6 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

(2)

Net income includes $7.8 million of income attributable to preferred unitholders that accumulated during the period, of which $7.7 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.___________________ Net income includes $7.7 million of income attributable to preferred(1) unitholders that accumulated during the period, of which $7.6 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

Net income includes $7.8 million of income attributable to preferred(2) unitholders that accumulated during the period, of which $7.7 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.Natural Resource Partners L.P. Financial Tables (Unaudited)

Common Unitholders

General

Partner

Warrant

Holders

Accumulated

Other

Comprehensive

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 the 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

)

Acquisition 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

Natural Resource Partners L.P.Financial Tables(Unaudited)



Partners' Accumulated Capital Common Unitholders Non- General Warrant Other Excluding Total Controlling Partner Holders Comprehensive Non- Capital Interest Loss 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 commonunitholders and - (5,517 ) (113 ) - - (5,630 ) - (5,630 )the generalpartner

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

Acquisition 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

___________________(1)

Net income includes $7.5 million of income attributable to preferred unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

(2)

Net loss includes $7.6 million of income attributable to preferred unitholders that accumulated during the period, of which $7.5 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

___________________ Net income includes $7.5 million of income attributable to preferred(1) unitholders that accumulated during the period, of which $7.4 million is allocated to the common unitholders and $0.2 million is allocated to the general partner.

Net loss includes $7.6 million of income attributable to preferred(2) unitholders that accumulated during the period, of which $7.5 million is allocated to the common unitholders and $0.2 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 June 30, 2021 and 2020 and March 31, 2021:

Operating Segments

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Three Months Ended June 30, 2021

Revenues

$

35,793

$

2,601

$

-

$

38,394

Gain on asset sales and disposals

116

-

-

116

Total revenues and other income

$

35,909

$

2,601

$

-

$

38,510

Asset impairments

$

16

$

-

$

-

$

16

Net income (loss)

$

25,886

$

2,566

$

(13,070

)

$

15,382

Adjusted EBITDA (1)

$

30,774

$

(35

)

$

(3,388

)

$

27,351

Cash flow provided by (used in) continuing operations:

Operating activities

$

32,028

$

(35

)

$

(18,609

)

$

13,384

Investing activities

$

657

$

-

$

-

$

657

Financing activities

$

(1,000

)

$

-

$

(11,900

)

$

(12,900

)

Distributable cash flow (1)

$

32,685

$

(35

)

$

(18,609

)

$

14,041

Free cash flow (1)

$

31,569

$

(35

)

$

(18,609

)

$

12,925

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

$

34,069

$

(3,058

)

$

-

$

31,011

Asset impairments

$

132,283

$

-

$

-

$

132,283

Net loss

$

(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

For the Three Months Ended March 31, 2021

Revenues

$

35,119

$

1,973

$

-

$

37,092

Gain on asset sales and disposals

59

-

-

59

Total revenues and other income

$

35,178

$

1,973

$

-

$

37,151

Asset impairments

$

4,043

$

-

$

-

$

4,043

Net income (loss)

$

20,488

$

1,953

$

(14,060

)

$

8,381

Adjusted EBITDA (1)

$

29,646

$

3,900

$

(4,110

)

$

29,436

Cash flow provided by (used in) continuing operations:

Operating activities

$

25,962

$

3,888

$

(6,650

)

$

23,200

Investing activities

$

600

$

-

$

-

$

600

Financing activities

$

(132

)

$

-

$

(26,691

)

$

(26,823

)

Distributable cash flow (1)

$

26,562

$

3,888

$

(6,650

)

$

23,800

Free cash flow (1)

$

26,503

$

3,888

$

(6,650

)

$

23,741

Natural Resource Partners L.P.Financial Tables(Unaudited)

The following tables present NRP's unaudited business results by segment forthe three months ended June 30, 2021 and 2020 and March 31, 2021:

Operating Segments

Corporate Coal Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Three Months Ended June 30, 2021

Revenues $ 35,793 $ 2,601 $ - $ 38,394

Gain on asset sales 116 - - 116 and disposals

Total revenues and $ 35,909 $ 2,601 $ - $ 38,510 other income

Asset impairments $ 16 $ - $ - $ 16

Net income (loss) $ 25,886 $ 2,566 $ (13,070 ) $ 15,382

Adjusted EBITDA ^(1) $ 30,774 $ (35 ) $ (3,388 ) $ 27,351

Cash flow provided by(used in) continuing operations:

Operating activities $ 32,028 $ (35 ) $ (18,609 ) $ 13,384

Investing activities $ 657 $ - $ - $ 657

Financing activities $ (1,000 ) $ - $ (11,900 ) $ (12,900 )

Distributable cash $ 32,685 $ (35 ) $ (18,609 ) $ 14,041 flow ^(1)

Free cash flow^ (1) $ 31,569 $ (35 ) $ (18,609 ) $ 12,925



For the Three Months Ended June 30, 2020

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

Gain on asset sales 465 - - 465 and disposals

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

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

Net loss $ (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 $ 33,318 $ 7,077 $ (19,095 ) $ 21,300 flow^ (1)

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



For the Three Months Ended March 31, 2021

Revenues $ 35,119 $ 1,973 $ - $ 37,092

Gain on asset sales 59 - - 59 and disposals

Total revenues and $ 35,178 $ 1,973 $ - $ 37,151 other income

Asset impairments $ 4,043 $ - $ - $ 4,043

Net income (loss) $ 20,488 $ 1,953 $ (14,060 ) $ 8,381

Adjusted EBITDA ^(1) $ 29,646 $ 3,900 $ (4,110 ) $ 29,436

Cash flow provided by(used in) continuing operations:

Operating activities $ 25,962 $ 3,888 $ (6,650 ) $ 23,200

Investing activities $ 600 $ - $ - $ 600

Financing activities $ (132 ) $ - $ (26,691 ) $ (26,823 )

Distributable cash $ 26,562 $ 3,888 $ (6,650 ) $ 23,800 flow ^(1)

Free cash flow ^(1) $ 26,503 $ 3,888 $ (6,650 ) $ 23,741

___________________(1)

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

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

Natural Resource Partners L.P. Financial Tables (Unaudited)

The following table presents NRP's unaudited business results by segment for the six months ended June 30, 2021 and 2020:

Operating Business Segments

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

For the Six Months Ended June 30, 2021

Revenues

$

70,912

$

4,574

$

-

$

75,486

Gain on asset sales and disposals

175

-

-

175

Total revenues and other income

$

71,087

$

4,574

$

-

$

75,661

Asset impairments

$

4,059

$

-

$

-

$

4,059

Net income (loss)

$

46,374

$

4,519

$

(27,130

)

$

23,763

Adjusted EBITDA (1)

$

60,420

$

3,865

$

(7,498

)

$

56,787

Cash flow provided by (used in) continuing operations:

Operating activities

$

57,990

$

3,853

$

(25,259

)

$

36,584

Investing activities

$

1,257

$

-

$

-

$

1,257

Financing activities

$

(1,132

)

$

-

$

(38,591

)

$

(39,723

)

Distributable cash flow (1)

$

59,247

$

3,853

$

(25,259

)

$

37,841

Free cash flow (1)

$

58,072

$

3,853

$

(25,259

)

$

36,666

For the Six Months Ended June 30, 2020

Revenues

$

67,546

$

3,214

$

-

$

70,760

Gain on asset sales and disposals

465

-

-

465

Total revenues and other income

$

68,011

$

3,214

$

-

$

71,225

Asset impairments

$

132,283

$

-

$

-

$

132,283

Net income (loss)

$

(81,735

)

$

3,169

$

(28,156

)

$

(106,722

)

Adjusted EBITDA (1)

$

54,637

$

14,165

$

(7,534

)

$

61,268

Cash flow provided by (used in) continuing operations:

Operating activities

$

62,509

$

14,166

$

(26,585

)

$

50,090

Investing activities

$

637

$

-

$

-

$

637

Financing activities

$

-

$

-

$

(38,164

)

$

(38,164

)

Distributable cash flow (1) (2)

$

64,146

$

14,166

$

(26,585

)

$

51,661

Free cash flow (1)

$

62,639

$

14,166

$

(26,585

)

$

50,220

Natural Resource Partners L.P.Financial Tables(Unaudited)

The following table presents NRP's unaudited business results by segment forthe six months ended June 30, 2021 and 2020:

Operating Business Segments

Coal Corporate Royalty and

(In thousands) and Other Soda Ash Financing Total

For the Six Months Ended June 30, 2021

Revenues $ 70,912 $ 4,574 $ - $ 75,486

Gain on asset sales and 175 - - 175 disposals

Total revenues and $ 71,087 $ 4,574 $ - $ 75,661 other income

Asset impairments $ 4,059 $ - $ - $ 4,059

Net income (loss) $ 46,374 $ 4,519 $ (27,130 ) $ 23,763

Adjusted EBITDA ^(1) $ 60,420 $ 3,865 $ (7,498 ) $ 56,787

Cash flow provided by(used in) continuing operations:

Operating activities $ 57,990 $ 3,853 $ (25,259 ) $ 36,584

Investing activities $ 1,257 $ - $ - $ 1,257

Financing activities $ (1,132 ) $ - $ (38,591 ) $ (39,723 )

Distributable cash flow $ 59,247 $ 3,853 $ (25,259 ) $ 37,841 ^(1)

Free cash flow ^(1) $ 58,072 $ 3,853 $ (25,259 ) $ 36,666



For the Six Months Ended June 30, 2020

Revenues $ 67,546 $ 3,214 $ - $ 70,760

Gain on asset sales and 465 - - 465 disposals

Total revenues and $ 68,011 $ 3,214 $ - $ 71,225 other income

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

Net income (loss) $ (81,735 ) $ 3,169 $ (28,156 ) $ (106,722 )

Adjusted EBITDA ^(1) $ 54,637 $ 14,165 $ (7,534 ) $ 61,268

Cash flow provided by(used in) continuing operations:

Operating activities $ 62,509 $ 14,166 $ (26,585 ) $ 50,090

Investing activities $ 637 $ - $ - $ 637

Financing activities $ - $ - $ (38,164 ) $ (38,164 )

Distributable cash flow $ 64,146 $ 14,166 $ (26,585 ) $ 51,661 ^(1) (2)

Free cash flow ^(1) $ 62,639 $ 14,166 $ (26,585 ) $ 50,220

___________________(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 Six Months Ended

June 30,

March 31,

June 30,

(In thousands, except per ton data)

2021

2020

2021

2021

2020

Coal sales volumes (tons)

Appalachia

Northern (1)

405

87

120

525

414

Central

2,975

2,463

2,650

5,625

5,396

Southern

316

426

100

416

648

Total Appalachia

3,696

2,976

2,870

6,566

6,458

Illinois Basin

2,640

578

2,658

5,298

1,083

Northern Powder River Basin

185

340

1,059

1,244

867

Total coal sales volumes

6,521

3,894

6,587

13,108

8,408

Coal royalty revenue per ton

Appalachia

Northern (1)

$

4.45

$

2.74

$

3.64

$

4.27

$

2.01

Central

4.62

4.04

4.22

4.44

4.47

Southern

7.63

4.96

5.28

7.06

4.68

Illinois Basin

2.01

1.97

2.06

2.04

3.08

Northern Powder River Basin

4.15

3.15

3.37

3.49

3.75

Combined average coal royalty revenue per ton

3.69

3.73

3.22

3.45

4.11

Coal royalty revenues

Appalachia

Northern (1)

$

1,804

$

238

$

437

$

2,241

$

831

Central

13,756

9,951

11,195

24,951

24,124

Southern

2,410

2,111

528

2,938

3,034

Total Appalachia

17,970

12,300

12,160

30,130

27,989

Illinois Basin

5,300

1,137

5,483

10,783

3,336

Northern Powder River Basin

768

1,071

3,573

4,341

3,248

Unadjusted coal royalty revenues

24,038

14,508

21,216

45,254

34,573

Coal royalty adjustment for minimum leases (2)

(5,740

)

(3,661

)

(5,851

)

(11,591

)

(4,624

)

Total coal royalty revenues

$

18,298

$

10,847

$

15,365

$

33,663

$

29,949

Other revenues

Production lease minimum revenues (2)

$

3,556

$

8,485

$

3,450

$

7,006

$

9,287

Minimum lease straight-line revenues (2)

4,869

4,987

6,096

10,965

8,796

Property tax revenues

1,587

761

1,469

3,056

2,360

Wheelage revenues

1,844

1,584

1,781

3,625

3,788

Coal overriding royalty revenues

976

683

1,859

2,835

2,005

Lease amendment revenues

772

890

868

1,640

1,733

Aggregates royalty revenues

456

271

454

910

847

Oil and gas royalty revenues

900

2,742

1,366

2,266

3,845

Other revenues

353

416

219

572

489

Total other revenues

$

15,313

$

20,819

$

17,562

$

32,875

$

33,150

Coal royalty and other

$

33,611

$

31,666

$

32,927

$

66,538

$

63,099

Transportation and processing services revenues

2,182

1,938

2,192

4,374

4,447

Gain on asset sales and disposals

116

465

59

175

465

Total Coal Royalty and Other segment revenues and other income

$

35,909

$

34,069

$

35,178

$

71,087

$

68,011

Natural Resource Partners L.P.Financial Tables(Unaudited)



Operating Statistics - Coal Royalty and Other



For the Three Months Ended For the Six Months Ended

June 30, March 31, June 30,

(In thousands,except per ton 2021 2020 2021 2021 2020data)

Coal sales volumes (tons)

Appalachia

Northern ^(1) 405 87 120 525 414

Central 2,975 2,463 2,650 5,625 5,396

Southern 316 426 100 416 648

Total 3,696 2,976 2,870 6,566 6,458 Appalachia

Illinois Basin 2,640 578 2,658 5,298 1,083

NorthernPowder River 185 340 1,059 1,244 867 Basin

Total coal 6,521 3,894 6,587 13,108 8,408 sales volumes

Coal royaltyrevenue per ton

Appalachia

Northern ^(1) $ 4.45 $ 2.74 $ 3.64 $ 4.27 $ 2.01

Central 4.62 4.04 4.22 4.44 4.47

Southern 7.63 4.96 5.28 7.06 4.68

Illinois Basin 2.01 1.97 2.06 2.04 3.08

NorthernPowder River 4.15 3.15 3.37 3.49 3.75 Basin

Combinedaverage coalroyalty 3.69 3.73 3.22 3.45 4.11 revenue perton

Coal royalty revenues

Appalachia

Northern ^(1) $ 1,804 $ 238 $ 437 $ 2,241 $ 831

Central 13,756 9,951 11,195 24,951 24,124

Southern 2,410 2,111 528 2,938 3,034

Total 17,970 12,300 12,160 30,130 27,989 Appalachia

Illinois Basin 5,300 1,137 5,483 10,783 3,336

NorthernPowder River 768 1,071 3,573 4,341 3,248 Basin

Unadjustedcoal royalty 24,038 14,508 21,216 45,254 34,573 revenues

Coal royaltyadjustment for (5,740 ) (3,661 ) (5,851 ) (11,591 ) (4,624 )minimum leases^ (2)

Total coalroyalty $ 18,298 $ 10,847 $ 15,365 $ 33,663 $ 29,949 revenues

Other revenues

Productionlease minimum $ 3,556 $ 8,485 $ 3,450 $ 7,006 $ 9,287 revenues^ (2)

Minimum leasestraight-line 4,869 4,987 6,096 10,965 8,796 revenues^ (2)

Property tax 1,587 761 1,469 3,056 2,360 revenues

Wheelage 1,844 1,584 1,781 3,625 3,788 revenues

Coaloverriding 976 683 1,859 2,835 2,005 royaltyrevenues

Leaseamendment 772 890 868 1,640 1,733 revenues

Aggregatesroyalty 456 271 454 910 847 revenues

Oil and gasroyalty 900 2,742 1,366 2,266 3,845 revenues

Other revenues 353 416 219 572 489

Total other $ 15,313 $ 20,819 $ 17,562 $ 32,875 $ 33,150 revenues

Coal royalty $ 33,611 $ 31,666 $ 32,927 $ 66,538 $ 63,099 and other

Transportationand processing 2,182 1,938 2,192 4,374 4,447 servicesrevenues

Gain on assetsales and 116 465 59 175 465 disposals

Total CoalRoyalty andOther segment $ 35,909 $ 34,069 $ 35,178 $ 71,087 $ 68,011 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)

Beginning April 1, 2020 and 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 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.

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 with Foresight Energy Resources LLC 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 June 30, 2021

Net income (loss)

$

25,886

$

2,566

$

(13,070

)

$

15,382

Less: equity earnings from unconsolidated investment

-

(2,601

)

-

(2,601

)

Add: total distributions from unconsolidated investment

-

-

-

-

Add: interest expense, net

1

-

9,682

9,683

Add: depreciation, depletion and amortization

4,871

-

-

4,871

Add: asset impairments

16

-

-

16

Adjusted EBITDA

$

30,774

$

(35

)

$

(3,388

)

$

27,351

For the Three Months Ended June 30, 2020

Net loss

$

(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: 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

For the Three Months Ended March 31, 2021

Net income (loss)

$

20,488

$

1,953

(14,060

)

$

8,381

Less: equity earnings from unconsolidated investment

-

(1,973

)

-

(1,973

)

Add: total distributions from unconsolidated investment

-

3,920

-

3,920

Add: interest expense, net

23

-

9,950

9,973

Add: depreciation, depletion and amortization

5,092

-

-

5,092

Add: asset impairments

4,043

-

-

4,043

Adjusted EBITDA

$

29,646

$

3,900

$

(4,110

)

$

29,436

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 Months Ended June 30, 2021

Net income (loss) $ 25,886 $ 2,566 $ (13,070 ) $ 15,382

Less: equity earningsfrom unconsolidated - (2,601 ) - (2,601 )investment

Add: totaldistributions from - - - - unconsolidatedinvestment

Add: interest expense, 1 - 9,682 9,683 net

Add: depreciation,depletion and 4,871 - - 4,871 amortization

Add: asset impairments 16 - - 16

Adjusted EBITDA $ 30,774 $ (35 ) $ (3,388 ) $ 27,351



For the Three Months Ended June 30, 2020

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

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: 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



For the Three Months Ended March 31, 2021

Net income (loss) $ 20,488 $ 1,953 (14,060 ) $ 8,381

Less: equity earningsfrom unconsolidated - (1,973 ) - (1,973 )investment

Add: totaldistributions from - 3,920 - 3,920 unconsolidatedinvestment

Add: interest expense, 23 - 9,950 9,973 net

Add: depreciation,depletion and 5,092 - - 5,092 amortization

Add: asset impairments 4,043 - - 4,043

Adjusted EBITDA $ 29,646 $ 3,900 $ (4,110 ) $ 29,436

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 Six Months Ended June 30, 2021

Net income (loss)

$

46,374

$

4,519

$

(27,130

)

$

23,763

Less: equity earnings from unconsolidated investment

-

(4,574

)

-

(4,574

)

Add: total distributions from unconsolidated investment

-

3,920

-

3,920

Add: interest expense, net

24

-

19,632

19,656

Add: depreciation, depletion and amortization

9,963

-

-

9,963

Add: asset impairments

4,059

-

-

4,059

Adjusted EBITDA

$

60,420

$

3,865

$

(7,498

)

$

56,787

For the Six Months Ended June 30, 2020

Net income (loss)

$

(81,735

)

$

3,169

$

(28,156

)

$

(106,722

)

Less: equity earnings from unconsolidated investment

-

(3,214

)

-

(3,214

)

Add: total distributions from unconsolidated investment

-

14,210

-

14,210

Add: interest expense, net

15

-

20,622

20,637

Add: depreciation, depletion and amortization

4,074

-

-

4,074

Add: asset impairments

132,283

-

-

132,283

Adjusted EBITDA

$

54,637

$

14,165

$

(7,534

)

$

61,268

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 Six Months Ended June 30, 2021

Net income (loss) $ 46,374 $ 4,519 $ (27,130 ) $ 23,763

Less: equity earningsfrom unconsolidated - (4,574 ) - (4,574 )investment

Add: totaldistributions from - 3,920 - 3,920 unconsolidatedinvestment

Add: interest expense, 24 - 19,632 19,656 net

Add: depreciation,depletion and 9,963 - - 9,963 amortization

Add: asset impairments 4,059 - - 4,059

Adjusted EBITDA $ 60,420 $ 3,865 $ (7,498 ) $ 56,787



For the Six Months Ended June 30, 2020

Net income (loss) $ (81,735 ) $ 3,169 $ (28,156 ) $ (106,722 )

Less: equity earningsfrom unconsolidated - (3,214 ) - (3,214 )investment

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

Add: interest expense, 15 - 20,622 20,637 net

Add: depreciation,depletion and 4,074 - - 4,074 amortization

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

Adjusted EBITDA $ 54,637 $ 14,165 $ (7,534 ) $ 61,268

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 June 30, 2021

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

$

32,028

$

(35

)

$

(18,609

)

$

13,384

Add: proceeds from asset sales and disposals

116

-

-

116

Add: return of long-term contract receivable

541

-

-

541

Distributable cash flow

$

32,685

$

(35

)

$

(18,609

)

$

14,041

Less: proceeds from asset sales and disposals

(116

)

-

-

(116

)

Less: acquisition costs

(1,000

)

-

-

(1,000

)

Free cash flow

$

31,569

$

(35

)

$

(18,609

)

$

12,925

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: 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: acquisition costs

(1,000

)

-

-

(1,000

)

Free cash flow

$

31,811

$

7,077

$

(19,095

)

$

19,793

For the Three Months Ended March 31, 2021

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

$

25,962

$

3,888

$

(6,650

)

$

23,200

Add: proceeds from asset sales and disposals

59

-

-

59

Add: return of long-term contract receivable

541

-

-

541

Distributable cash flow

$

26,562

$

3,888

$

(6,650

)

$

23,800

Less: proceeds from asset sales and disposals

(59

)

-

-

(59

)

Less: acquisition costs

-

-

-

-

Free cash flow

$

26,503

$

3,888

$

(6,650

)

$

23,741

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 June 30, 2021

Net cash provided by (usedin) operating activities of $ 32,028 $ (35 ) $ (18,609 ) $ 13,384 continuing operations

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

Add: return of long-term 541 - - 541 contract receivable

Distributable cash flow $ 32,685 $ (35 ) $ (18,609 ) $ 14,041

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

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

Free cash flow $ 31,569 $ (35 ) $ (18,609 ) $ 12,925



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

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



For the Three Months Ended March 31, 2021

Net cash provided by (usedin) operating activities of $ 25,962 $ 3,888 $ (6,650 ) $ 23,200 continuing operations

Add: proceeds from asset 59 - - 59 sales and disposals

Add: return of long-term 541 - - 541 contract receivable

Distributable cash flow $ 26,562 $ 3,888 $ (6,650 ) $ 23,800

Less: proceeds from asset (59 ) - - (59 )sales and disposals

Less: acquisition costs - - - -

Free cash flow $ 26,503 $ 3,888 $ (6,650 ) $ 23,741

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 Six Months Ended June 30, 2021

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

$

57,990

$

3,853

$

(25,259

)

$

36,584

Add: proceeds from asset sales and disposals

175

-

-

175

Add: proceeds from sale of discontinued operations

-

-

-

-

Add: return of long-term contract receivable

1,082

-

-

1,082

Distributable cash flow

$

59,247

$

3,853

$

(25,259

)

$

37,841

Less: proceeds from asset sales and disposals

(175

)

-

-

(175

)

Less: acquisition costs

(1,000

)

-

-

(1,000

)

Free cash flow

$

58,072

$

3,853

$

(25,259

)

$

36,666

For the Six Months Ended June 30, 2020

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

$

62,509

$

14,166

$

(26,585

)

$

50,090

Add: proceeds from asset sales and disposals

507

-

-

507

Add: proceeds from sale of discontinued operations

-

-

-

(66

)

Add: return of long-term contract receivable

1,130

-

-

1,130

Distributable cash flow

$

64,146

$

14,166

$

(26,585

)

$

51,661

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

$

62,639

$

14,166

$

(26,585

)

$

50,220

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 Six Months Ended June 30, 2021

Net cash provided by (usedin) operating activities $ 57,990 $ 3,853 $ (25,259 ) $ 36,584 of continuing operations

Add: proceeds from asset 175 - - 175 sales and disposals

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

Add: return of long-term 1,082 - - 1,082 contract receivable

Distributable cash flow $ 59,247 $ 3,853 $ (25,259 ) $ 37,841

Less: proceeds from asset (175 ) - - (175 )sales and disposals

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

Free cash flow $ 58,072 $ 3,853 $ (25,259 ) $ 36,666



For the Six Months Ended June 30, 2020

Net cash provided by (usedin) operating activities $ 62,509 $ 14,166 $ (26,585 ) $ 50,090 of continuing operations

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

Add: proceeds from sale of - - - (66 )discontinued operations

Add: return of long-term 1,130 - - 1,130 contract receivable

Distributable cash flow $ 64,146 $ 14,166 $ (26,585 ) $ 51,661

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

Less: proceeds from sale - - - 66 of discontinued operations

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

Free cash flow $ 62,639 $ 14,166 $ (26,585 ) $ 50,220

LTM Free Cash Flow and Cash Flow Cushion

For the Three Months Ended

(In thousands)

September 30,

2020

December 31,

2020

March 31,

2021

June 30,

2021

Last 12

Months

Net cash provided by operating activities of continuing operations

$

24,323

$

13,155

$

23,200

$

13,384

$

74,062

Add: proceeds from asset sales and disposals

-

116

59

116

291

Add: proceeds from sale of discontinued operations

-

1

-

-

1

Add: return of long-term contract receivable

332

660

541

541

2,074

Distributable cash flow

$

24,655

$

13,932

$

23,800

$

14,041

$

76,428

Less: proceeds from asset sales and disposals

-

(116

)

(59

)

(116

)

(291

)

Less: proceeds from sale of discontinued operations

-

(1

)

-

-

(1

)

Less: acquisition costs

-

-

-

(1,000

)

(1,000

)

Free cash flow

$

24,655

$

13,815

$

23,741

$

12,925

$

75,136

Less: mandatory Opco debt repayments

(6,780

)

(20,335

)

(16,696

)

(2,365

)

(46,176

)

Less: preferred unit distributions

(7,500

)

(3,750

)

(3,806

)

(3,864

)

(18,920

)

Less: common unit distributions

(5,630

)

(5,630

)

(5,630

)

(5,672

)

(22,562

)

Cash flow cushion

$

4,745

$

(15,900

)

$

(2,391

)

$

1,024

$

(12,522

)

LTM Free Cash Flow and Cash Flow Cushion



For the Three Months Ended

September December March 31, June 30, Last 12(In 30, 31, thousands) 2021 2021 Months 2020 2020

Net cashprovided byoperating $ 24,323 $ 13,155 $ 23,200 $ 13,384 $ 74,062 activities ofcontinuingoperations

Add: proceedsfrom asset - 116 59 116 291 sales anddisposals

Add: proceedsfrom sale of - 1 - - 1 discontinuedoperations

Add: returnof long-term 332 660 541 541 2,074 contractreceivable

Distributable $ 24,655 $ 13,932 $ 23,800 $ 14,041 $ 76,428 cash flow

Less:proceeds from - (116 ) (59 ) (116 ) (291 )asset salesand disposals

Less:proceeds fromsale of - (1 ) - - (1 )discontinuedoperations

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

Free cash $ 24,655 $ 13,815 $ 23,741 $ 12,925 $ 75,136 flow

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

Less:preferred (7,500 ) (3,750 ) (3,806 ) (3,864 ) (18,920 )unitdistributions

Less: commonunit (5,630 ) (5,630 ) (5,630 ) (5,672 ) (22,562 )distributions

Cash flow $ 4,745 $ (15,900 ) $ (2,391 ) $ 1,024 $ (12,522 )cushion

Natural Resource Partners L.P. Reconciliation of Non-GAAP Measures (Unaudited)

Leverage Ratio

For the Three Months Ended

(In thousands)

September 30,

2020

December 31,

2020

March 31,

2021

June 30,

2021

Last 12

Months

Net income

$

7,216

$

14,687

$

8,381

$

15,382

$

45,666

Less: equity earnings from unconsolidated investment

(1,986

)

(5,528

)

(1,973

)

(2,601

)

(12,088

)

Add: total distributions from unconsolidated investment

-

-

3,920

-

3,920

Add: interest expense, net

10,254

10,077

9,973

9,683

39,987

Add: depreciation, depletion and amortization

2,111

3,013

5,092

4,871

15,087

Add: asset impairments

934

2,668

4,043

16

7,661

Adjusted EBITDA

$

18,529

$

24,917

$

29,436

$

27,351

$

100,233

Debt-at June 30, 2021

$

458,819

Leverage Ratio (1)

4.6x

Natural Resource Partners L.P.Reconciliation of Non-GAAP Measures(Unaudited)



Leverage Ratio



For the Three Months Ended

September December March 31, June 30, Last 12(In thousands) 30, 31, 2021 2021 Months 2020 2020

Net income $ 7,216 $ 14,687 $ 8,381 $ 15,382 $ 45,666

Less: equityearnings from (1,986 ) (5,528 ) (1,973 ) (2,601 ) (12,088 )unconsolidatedinvestment

Add: totaldistributionsfrom - - 3,920 - 3,920 unconsolidatedinvestment

Add: interest 10,254 10,077 9,973 9,683 39,987 expense, net

Add:depreciation, 2,111 3,013 5,092 4,871 15,087 depletion andamortization

Add: asset 934 2,668 4,043 16 7,661 impairments

Adjusted $ 18,529 $ 24,917 $ 29,436 $ 27,351 $ 100,233 EBITDA

Debt-at June $ 458,819 30, 2021

Leverage Ratio 4.6x^(1)

___________________(1)

Leverage Ratio is calculated as the outstanding principal of NRP's debt as of June 30, 2021 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 June 30, 2021, 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 June 30, 2021 divided by the last twelve months' Adjusted EBITDA. Note(1) 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 June 30, 2021, was 4.6x as calculated under the indenture governing NRP's 2025 parent company notes.

Return on Capital Employed ("ROCE")

Coal Royalty

and Other

Corporate and

Financing

(In thousands)

Soda Ash

Total

LTM Ended June 30, 2021

Net income (loss)

$

87,929

$

11,893

$

(54,156

)

$

45,666

Financing costs

94

-

39,955

40,049

Return

$

88,023

$

11,893

$

(14,201

)

$

85,715

As of June 30, 2020

Total assets

$

688,828

$

252,420

$

2,317

$

943,565

Less: total current liabilities excluding current debt

(14,202

)

-

(3,936

)

(18,138

)

Less: total long-term liabilities excluding long-term debt

(57,886

)

-

(446

)

(58,332

)

Capital employed

$

616,740

$

252,420

$

(2,065

)

$

867,095

Total partners' capital

$

616,740

$

252,420

$

(664,539

)

$

204,621

Class A convertible preferred units

-

-

164,587

164,587

Debt

-

-

497,887

497,887

Capital employed

$

616,740

$

252,420

$

(2,065

)

$

867,095

ROCE

14.3

%

4.7

%

N/A

9.9

%

Excluding asset impairments:

Return

$

88,023

$

11,893

$

(14,201

)

$

85,715

Add: asset impairments

7,661

-

-

7,661

Return excluding asset impairments

$

95,684

$

11,893

$

(14,201

)

$

93,376

ROCE excluding asset impairments

15.5

%

4.7

%

N/A

10.8

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210806005028/en/

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