Natural resource partners l.p. reports second quarter 2022 results and declares second quarter 2022 distribution of $0.75 per unit
Houston--(business wire)--natural resource partners l.p. (nyse:nrp) today reported second quarter 2022 results as follows: for the three months ended last twelve months ended (in thousands) (unaudited) june 30, 2022 operating cash flow $ 63,123 $ 200,674 free cash flow (1) 63,686 202,318 cash flow cushion (last twelve months) (1) 84,673 net income $ 66,820 $ 215,858 adjusted ebitda (1) 80,709 260,842 see "non-gaap financial measures" and reconciliation tables at the end of this release. highlights: $64 million free cash flow in the second quarter of 2022 record free cash flow for the first half of the year of $116 million paid down $120.5 million of debt in the second quarter of 2022 1.2x leverage ratio at june 30, 2022, down from 4.6x at june 30, 2021 “the second quarter was another quarter of exceptional results for nrp with the generation of $64 million of free cash flow,” said craig nunez, nrp’s president and chief operating officer. “when combined with the $52 million of free cash flow generated in the first quarter, the first half of 2022 was the best annual start in the history of the partnership. we took advantage of the strong financial results and positive outlook to retire $118 million of debt, driving our leverage ratio down to 1.2x at the end of the second quarter, which was a dramatic improvement from 4.6x just twelve months earlier. we believe current market conditions will allow us to continue de-risking the capital structure while continuing to provide distributions to our common unitholders.” nrp announced today that the board of directors of its general partner declared a cash distribution of $0.75 per common unit to be paid on august 23, 2022 to unitholders of record on august 16, 2022. this is a 67% increase as compared to the distribution paid for the prior year quarter and is consistent with the previous quarter. in addition, the board declared a $7.5 million cash distribution on the 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. nrp's liquidity was $159.4 million at june 30, 2022, consisting of $59.4 million of cash and $100.0 million of borrowing capacity available under its revolving credit facility. segment performance mineral rights mineral rights net income for the second quarter of 2022 increased $43.5 million as compared to the prior year period. free cash flow for the second quarter increased $39.3 million as compared to the prior year period. these increases were primarily due to stronger metallurgical coal demand and pricing in 2022. approximately 75% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2022. metallurgical coal prices have declined from their record highs during the first quarter of 2022 but remain supported by the ongoing tightness in the supply-demand balance for metallurgical coal. metallurgical coal production continues to face ongoing labor shortages and global supply chain interruptions which limits the ability of operators to increase metallurgical coal production and should provide continued support for domestic and international prices in the near term despite slowing global economic growth and softening demand for steel. thermal coal demand and pricing remains strong due to increased demand for electricity, high natural gas prices and constrained growth in thermal coal production. boycotts on russian coal caused by the war in ukraine are amplifying the tightness in thermal coal markets caused by labor shortages, global supply chain interruptions, and environmental and political pressures limiting the ability of operators to increase thermal coal production to meet domestic and international demand. nrp continues to believe the near-term outlook for thermal coal prices is positive. nrp continues to identify alternative revenue opportunities across its large portfolio of land and mineral assets specifically within the transitional energy economy. nrp owns the rights to sequester carbon dioxide ("co2") on approximately 3.5 million mineral acres of pore space in the southern united states. as announced previously, in the first quarter of 2022 nrp executed on its first subsurface co2 sequestration transaction by granting denbury the right to develop a world-class subsurface co2 sequestration project on 75,000 acres of underground pore space nrp owns in southwest alabama with the potential to store over 300 million metric tons of co2. while the timing and likelihood of additional cash flows being realized from further activities is uncertain, nrp believes its large ownership footprint throughout the united states will provide additional opportunities to create value in this regard and position nrp to benefit from the transitional energy economy with minimal capital investment. soda ash soda ash net income in the second quarter of 2022 increased $12.1 million as compared to the prior year period primarily as a result of increased international sales prices. free cash flow in the second quarter of 2022 increased $10.5 million as compared to the prior year period due to sisecam wyoming reinstating its regular quarterly cash distributions beginning in the fourth quarter of 2021. strong demand growth for soda ash, driven by global secular trends including investments in renewable energy, the electrification of the global auto fleet and urbanization, coupled with constrained soda ash supply due in part to covid-19 flash lockdowns in china and a partial closure of a green river competitor due to a force majeure event allowed sisecam wyoming to deliver improved financial results in the second quarter of 2022. corporate and financing corporate and financing costs in the second quarter increased $4.1 million as compared to the prior year period primarily due to the loss on extinguishment of debt associated with the early retirement of debt, partially offset by lower interest expense as a result of less debt outstanding. free cash flow in the second quarter of 2022 increased $1.0 million as compared to the prior year period primarily due to lower cash paid for interest as a result of less debt outstanding. during the second quarter of 2022, nrp retired $118.1 million of its 9.125% senior notes due 2025, which will save approximately $10.8 million annually in interest costs. these notes were purchased on the open market at a weighted average price of 102.275%, a discount to the current redemption price of 104.563%. in july, nrp was able to retire an additional $38.8 million of its 2025 senior notes, which will save an additional $3.5 million annually in interest costs. the current outstanding amount of 9.125% senior notes due 2025 is $143.1 million. in addition, in may of 2022 nrp paid a first quarter 2022 cash distribution of $0.75 per common unit of nrp and a $7.5 million cash distribution on the preferred units. 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: https://conferencingportals.com/event/kfjdshyp. 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 properties in the united states including coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration and renewable energy activities. nrp also owns an equity investment in sisecam wyoming llc, one of the world’s lowest-cost producers of soda ash. 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; sisecam 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; 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. 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 and cash flow used in acquisition costs classified as investing or financing activities. 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 redemption of pik units, common unit distributions and warrant cash settlements. 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. -financial tables and reconciliation of non-gaap measures follow- natural resource partners l.p. financial tables (unaudited) consolidated statements of comprehensive income for the three months ended for the six months ended june 30, march 31, june 30, (in thousands, except per unit data) 2022 2021 2022 2022 2021 revenues and other income royalty and other mineral rights $ 79,333 $ 33,611 $ 71,083 $ 150,416 $ 66,538 transportation and processing services 5,612 2,182 3,796 9,408 4,374 equity in earnings of sisecam wyoming 14,643 2,601 14,837 29,480 4,574 gain on asset sales and disposals 345 116 — 345 175 total revenues and other income $ 99,933 $ 38,510 $ 89,716 $ 189,649 $ 75,661 operating expenses operating and maintenance expenses $ 10,015 $ 5,170 $ 8,076 $ 18,091 $ 10,722 depreciation, depletion and amortization 5,847 4,871 3,868 9,715 9,963 general and administrative expenses 5,052 3,388 4,467 9,519 7,498 asset impairments 43 16 19 62 4,059 total operating expenses $ 20,957 $ 13,445 $ 16,430 $ 37,387 $ 32,242 income from operations $ 78,976 $ 25,065 $ 73,286 $ 152,262 $ 43,419 other expenses, net interest expense, net $ (8,108 ) $ (9,683 ) $ (9,387 ) $ (17,495 ) $ (19,656 ) loss on extinguishment of debt (4,048 ) — — (4,048 ) — total other expenses, net $ (12,156 ) $ (9,683 ) $ (9,387 ) $ (21,543 ) $ (19,656 ) net income $ 66,820 $ 15,382 $ 63,899 $ 130,719 $ 23,763 less: income attributable to preferred unitholders (7,500 ) (7,842 ) (7,500 ) (15,000 ) (15,569 ) net income attributable to common unitholders and the general partner $ 59,320 $ 7,540 $ 56,399 $ 115,719 $ 8,194 net income attributable to common unitholders $ 58,134 $ 7,389 $ 55,271 $ 113,405 $ 8,030 net income attributable to the general partner 1,186 151 1,128 2,314 164 net income per common unit basic $ 4.65 $ 0.60 $ 4.45 $ 9.10 $ 0.65 diluted 3.29 0.56 3.11 6.50 0.65 net income $ 66,820 $ 15,382 $ 63,899 $ 130,719 $ 23,763 comprehensive income (loss) from unconsolidated investment and other (4,013 ) 2,533 2,545 (1,468 ) 3,265 comprehensive income $ 62,807 $ 17,915 $ 66,444 $ 129,251 $ 27,028 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) 2022 2021 2022 2022 2021 cash flows from operating activities net income $ 66,820 $ 15,382 $ 63,899 $ 130,719 $ 23,763 adjustments to reconcile net income to net cash provided by operating activities of continuing operations: depreciation, depletion and amortization 5,847 4,871 3,868 9,715 9,963 distributions from unconsolidated investment 10,486 — 13,230 23,716 3,920 equity earnings from unconsolidated investment (14,643 ) (2,601 ) (14,837 ) (29,480 ) (4,574 ) gain on asset sales and disposals (345 ) (116 ) — (345 ) (175 ) loss on extinguishment of debt 4,048 — — 4,048 — asset impairments 43 16 19 62 4,059 bad debt expense (388 ) (737 ) 1,028 640 (354 ) unit-based compensation expense 1,339 593 1,448 2,787 1,719 amortization of debt issuance costs and other 1,297 977 375 1,672 1,246 change in operating assets and liabilities: accounts receivable (5,033 ) 162 (7,579 ) (12,612 ) (3,169 ) accounts payable 73 (83 ) (60 ) 13 (93 ) accrued liabilities 2,047 1,838 (7,156 ) (5,109 ) (1,196 ) accrued interest (7,413 ) (7,424 ) 7,250 (163 ) (291 ) deferred revenue (2,259 ) 677 (7,316 ) (9,575 ) 531 other items, net 1,204 (171 ) (1,838 ) (634 ) 1,235 net cash provided by operating activities $ 63,123 $ 13,384 $ 52,331 $ 115,454 $ 36,584 cash flows from investing activities proceeds from asset sales and disposals $ 346 $ 116 $ — $ 346 $ 175 return of long-term contract receivable 563 541 — 563 1,082 net cash provided by investing activities $ 909 $ 657 $ — $ 909 $ 1,257 cash flows from financing activities debt repayments $ (120,474 ) $ (2,365 ) $ (16,697 ) $ (137,171 ) $ (19,061 ) distributions to common unitholders and the general partner (9,570 ) (5,672 ) (5,672 ) (15,242 ) (11,302 ) distributions to preferred unitholders (7,500 ) (3,864 ) (7,500 ) (15,000 ) (7,670 ) redemption of preferred units paid-in-kind — — (19,579 ) (19,579 ) — acquisition of non-controlling interest in brp — (1,000 ) — — (1,000 ) other items, net (2,722 ) 1 (2,813 ) (5,535 ) (690 ) net cash used in financing activities $ (140,266 ) $ (12,900 ) $ (52,261 ) $ (192,527 ) $ (39,723 ) net increase (decrease) in cash and cash equivalents $ (76,234 ) $ 1,141 $ 70 $ (76,164 ) $ (1,882 ) cash and cash equivalents at beginning of period 135,590 96,767 135,520 135,520 99,790 cash and cash equivalents at end of period $ 59,356 $ 97,908 $ 135,590 $ 59,356 $ 97,908 supplemental cash flow information: cash paid for interest $ 15,128 $ 16,611 $ 1,644 $ 16,772 $ 18,931 non-cash investing and financing activities: preferred unit distributions paid-in-kind $ — $ 3,863 $ — $ — $ 7,669 natural resource partners l.p. financial tables consolidated balance sheets june 30, december 31, (in thousands, except unit data) 2022 2021 assets (unaudited) current assets cash and cash equivalents $ 59,356 $ 135,520 accounts receivable, net 37,288 24,538 other current assets, net 3,204 2,723 total current assets $ 99,848 $ 162,781 land 24,008 24,008 mineral rights, net 428,505 437,697 intangible assets, net 15,634 16,130 equity in unconsolidated investment 280,300 276,004 long-term contract receivable, net 30,182 31,371 other long-term assets, net 4,664 5,832 total assets $ 883,141 $ 953,823 liabilities and capital current liabilities accounts payable $ 1,969 $ 1,956 accrued liabilities 5,507 10,297 accrued interest 1,050 1,213 current portion of deferred revenue 11,475 11,817 current portion of long-term debt, net 39,070 39,102 total current liabilities $ 59,071 $ 64,385 deferred revenue 40,811 50,045 long-term debt, net 259,296 394,443 other non-current liabilities 5,012 5,018 total liabilities $ 364,190 $ 513,891 commitments and contingencies class a convertible preferred units (250,000 and 269,321 units issued and outstanding at june 30, 2022 and december 31, 2021, respectively, at $1,000 par value per unit; liquidation preference of $1,850 per unit at june 30, 2022 and december 31, 2021) $ 164,587 $ 183,908 partners’ capital: common unitholders’ interest (12,505,996 and 12,351,306 units issued and outstanding at june 30, 2022 and december 31, 2021, respectively), $ 300,753 $ 203,062 general partner’s interest 3,904 1,787 warrant holders' interest 47,964 47,964 accumulated other comprehensive income 1,743 3,211 total partners’ capital $ 354,364 $ 256,024 total liabilities and partners' capital $ 883,141 $ 953,823 natural resource partners l.p. financial tables (unaudited) consolidated statements of partners' capital common unitholders general partner warrant holders accumulated other comprehensive income total partners' capital (in thousands) units amounts balance at december 31, 2021 12,351 $ 203,062 $ 1,787 $ 47,964 $ 3,211 $ 256,024 net income (1) — 62,621 1,278 — — 63,899 distributions to common unitholders and the general partner — (5,559 ) (113 ) — — (5,672 ) distributions to preferred unitholders — (7,603 ) (155 ) — — (7,758 ) issuance of unit-based awards 155 — — — — — unit-based awards amortization and vesting, net — (1,754 ) — — — (1,754 ) capital contribution — — 112 — — 112 comprehensive income from unconsolidated investment and other — — — — 2,545 2,545 balance at march 31, 2022 12,506 $ 250,767 $ 2,909 $ 47,964 $ 5,756 $ 307,396 net income (1) — 65,484 1,336 — — 66,820 distributions to common unitholders and the general partner — (9,379 ) (191 ) — — (9,570 ) distributions to preferred unitholders — (7,350 ) (150 ) — — (7,500 ) unit-based awards amortization and vesting — 1,231 — — — 1,231 comprehensive loss from unconsolidated investment and other — — — — (4,013 ) (4,013 ) balance at june 30, 2022 12,506 $ 300,753 $ 3,904 $ 47,964 $ 1,743 $ 354,364 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. natural resource partners l.p. financial tables (unaudited) common unitholders general partner warrant holders accumulated other comprehensive income total partners' capital (in thousands) units amounts balance at december 31, 2020 12,261 $ 136,927 $ 459 $ 66,816 $ 322 $ 204,524 net income (1) — 8,213 168 — — 8,381 distributions to common unitholders and the general partner — (5,517 ) (113 ) — — (5,630 ) distributions to preferred unitholders — (7,461 ) (152 ) — — (7,613 ) issuance of unit-based awards 90 — — — — — unit-based awards amortization and vesting, net — 215 — — — 215 capital contribution — — 32 — — 32 comprehensive income from unconsolidated investment and other — — — — 732 732 balance at march 31, 2021 12,351 $ 132,377 $ 394 $ 66,816 $ 1,054 $ 200,641 net income (2) — 15,074 308 — — 15,382 distributions to common unitholders and the general partner — (5,559 ) (113 ) — — (5,672 ) distributions to preferred unitholders — (7,571 ) (155 ) — — (7,726 ) unit-based awards amortization and vesting — 515 — — — 515 comprehensive income from unconsolidated investment and other — — — — 2,533 2,533 balance at june 30, 2021 12,351 $ 134,836 $ 434 $ 66,816 $ 3,587 $ 205,673 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. 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. 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, 2022 and 2021 and march 31, 2022: operating segments mineral rights corporate and financing (in thousands) soda ash total for the three months ended june 30, 2022 revenues $ 84,945 $ 14,643 $ — $ 99,588 gain on asset sales and disposals 345 — — 345 total revenues and other income $ 85,290 $ 14,643 $ — $ 99,933 asset impairments $ 43 $ — $ — $ 43 net income (loss) $ 69,408 $ 14,620 $ (17,208 ) $ 66,820 adjusted ebitda (1) $ 75,298 $ 10,463 $ (5,052 ) $ 80,709 cash flow provided by (used in) continuing operations: operating activities $ 70,351 $ 10,430 $ (17,658 ) $ 63,123 investing activities $ 909 $ — $ — $ 909 financing activities $ — $ — $ (140,266 ) $ (140,266 ) distributable cash flow (1) $ 71,260 $ 10,430 $ (17,658 ) $ 64,032 free cash flow (1) $ 70,914 $ 10,430 $ (17,658 ) $ 63,686 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 march 31, 2022 revenues $ 74,879 $ 14,837 $ — $ 89,716 gain on asset sales and disposals — — — — total revenues and other income $ 74,879 $ 14,837 $ — $ 89,716 asset impairments $ 19 $ — $ — $ 19 net income (loss) $ 62,967 $ 14,786 $ (13,854 ) $ 63,899 adjusted ebitda (1) $ 66,854 $ 13,179 $ (4,467 ) $ 75,566 cash flow provided by (used in) continuing operations: operating activities $ 48,176 $ 13,195 $ (9,040 ) $ 52,331 investing activities $ — $ — $ — $ — financing activities $ (614 ) $ — $ (51,647 ) $ (52,261 ) distributable cash flow (1) $ 48,176 $ 13,195 $ (9,040 ) $ 52,331 free cash flow (1) $ 48,176 $ 13,195 $ (9,040 ) $ 52,331 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, 2022 and 2021: operating segments mineral rights corporate and financing (in thousands) soda ash total for the six months ended june 30, 2022 revenues $ 159,824 $ 29,480 $ — $ 189,304 gain on asset sales and disposals 345 — — 345 total revenues and other income $ 160,169 $ 29,480 $ — $ 189,649 asset impairments $ 62 $ — $ — $ 62 net income (loss) $ 132,375 $ 29,406 $ (31,062 ) $ 130,719 adjusted ebitda (1) $ 142,152 $ 23,642 $ (9,519 ) $ 156,275 cash flow provided by (used in) continuing operations: operating activities $ 118,527 $ 23,625 $ (26,698 ) $ 115,454 investing activities $ 909 $ — $ — $ 909 financing activities $ (614 ) $ — $ (191,913 ) $ (192,527 ) distributable cash flow (1) $ 119,436 $ 23,625 $ (26,698 ) $ 116,363 free cash flow (1) $ 119,090 $ 23,625 $ (26,698 ) $ 116,017 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 see "non-gaap financial measures" and reconciliation tables at the end of this release. natural resource partners l.p. financial tables (unaudited) operating statistics - mineral rights for the three months ended for the six months ended june 30, march 31, june 30, (in thousands, except per ton data) 2022 2021 2022 2022 2021 coal sales volumes (tons) appalachia northern 392 405 428 820 525 central 3,484 2,975 3,251 6,735 5,625 southern 312 316 361 673 416 total appalachia 4,188 3,696 4,040 8,228 6,566 illinois basin 3,403 2,640 1,502 4,905 5,298 northern powder river basin 699 185 1,238 1,937 1,244 gulf coast 67 — 69 136 — total coal sales volumes 8,357 6,521 6,849 15,206 13,108 coal royalty revenue per ton appalachia northern $ 11.84 $ 4.45 $ 10.14 $ 10.95 $ 4.27 central 12.19 4.62 11.37 11.80 4.44 southern 17.67 7.63 17.56 17.61 7.06 illinois basin 2.07 2.01 2.20 2.11 2.04 northern powder river basin 4.74 4.15 3.74 4.10 3.49 gulf coast 0.57 — 0.55 0.56 — combined average coal royalty revenue per ton 7.54 3.69 8.12 7.80 3.45 coal royalty revenues appalachia northern $ 4,640 $ 1,804 $ 4,341 $ 8,981 $ 2,241 central 42,461 13,756 36,980 79,441 24,951 southern 5,513 2,410 6,340 11,853 2,938 total appalachia 52,614 17,970 47,661 100,275 30,130 illinois basin 7,061 5,300 3,303 10,364 10,783 northern powder river basin 3,314 768 4,632 7,946 4,341 gulf coast 38 — 38 76 — unadjusted coal royalty revenues 63,027 24,038 55,634 118,661 45,254 coal royalty adjustment for minimum leases (82 ) (5,740 ) (185 ) (267 ) (11,591 ) total coal royalty revenues $ 62,945 $ 18,298 $ 55,449 $ 118,394 $ 33,663 other revenues production lease minimum revenues $ 65 $ 3,556 $ 1,592 $ 1,657 $ 7,006 minimum lease straight-line revenues 4,674 4,869 4,783 9,457 10,965 wheelage revenues 4,379 1,844 3,717 8,096 3,625 property tax revenues 1,695 1,587 1,472 3,167 3,056 coal overriding royalty revenues 682 976 258 940 2,835 lease amendment revenues 811 772 880 1,691 1,640 aggregates royalty revenues 1,037 456 770 1,807 910 oil and gas royalty revenues 2,906 900 1,814 4,720 2,266 other revenues 139 353 348 487 572 total other revenues $ 16,388 $ 15,313 $ 15,634 $ 32,022 $ 32,875 royalty and other mineral rights $ 79,333 $ 33,611 $ 71,083 $ 150,416 $ 66,538 transportation and processing services revenues 5,612 2,182 3,796 9,408 4,374 gain on asset sales and disposals 345 116 — 345 175 total mineral rights segment revenues and other income $ 85,290 $ 35,909 $ 74,879 $ 160,169 $ 71,087 natural resource partners l.p. reconciliation of non-gaap measures (unaudited) adjusted ebitda mineral rights corporate and financing (in thousands) soda ash total for the three months ended june 30, 2022 net income (loss) $ 69,408 $ 14,620 $ (17,208 ) $ 66,820 less: equity earnings from unconsolidated investment — (14,643 ) — (14,643 ) add: total distributions from unconsolidated investment — 10,486 — 10,486 add: interest expense, net — — 8,108 8,108 add: loss on extinguishment of debt — — 4,048 4,048 add: depreciation, depletion and amortization 5,847 — — 5,847 add: asset impairments 43 — — 43 adjusted ebitda $ 75,298 $ 10,463 $ (5,052 ) $ 80,709 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: loss on extinguishment of debt — — — — 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 march 31, 2022 net income (loss) $ 62,967 $ 14,786 (13,854 ) $ 63,899 less: equity earnings from unconsolidated investment — (14,837 ) — (14,837 ) add: total distributions from unconsolidated investment — 13,230 — 13,230 add: interest expense, net — — 9,387 9,387 add: loss on extinguishment of debt — — — — add: depreciation, depletion and amortization 3,868 — — 3,868 add: asset impairments 19 — — 19 adjusted ebitda $ 66,854 $ 13,179 $ (4,467 ) $ 75,566 natural resource partners l.p. reconciliation of non-gaap measures (unaudited) adjusted ebitda mineral rights corporate and financing (in thousands) soda ash total for the six months ended june 30, 2022 net income (loss) $ 132,375 $ 29,406 $ (31,062 ) $ 130,719 less: equity earnings from unconsolidated investment — (29,480 ) — (29,480 ) add: total distributions from unconsolidated investment — 23,716 — 23,716 add: interest expense, net — — 17,495 17,495 add: loss on extinguishment of debt — — 4,048 4,048 add: depreciation, depletion and amortization 9,715 — — 9,715 add: asset impairments 62 — — 62 adjusted ebitda $ 142,152 $ 23,642 $ (9,519 ) $ 156,275 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: loss on extinguishment of debt — — — — 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 natural resource partners l.p. reconciliation of non-gaap measures (unaudited) distributable cash flow and free cash flow mineral rights corporate and financing (in thousands) soda ash total for the three months ended june 30, 2022 net cash provided by (used in) operating activities of continuing operations $ 70,351 $ 10,430 $ (17,658 ) $ 63,123 add: proceeds from asset sales and disposals 346 — — 346 add: return of long-term contract receivable 563 — — 563 distributable cash flow $ 71,260 $ 10,430 $ (17,658 ) $ 64,032 less: proceeds from asset sales and disposals (346 ) — — (346 ) less: acquisition costs — — — — free cash flow $ 70,914 $ 10,430 $ (17,658 ) $ 63,686 net cash provided by investing activities $ 909 $ — $ — $ 909 net cash used in financing activities — — (140,266 ) (140,266 ) 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 net cash provided by investing activities $ 657 $ — $ — $ 657 net cash used in financing activities (1,000 ) — (11,900 ) (12,900 ) for the three months ended march 31, 2022 net cash provided by (used in) operating activities of continuing operations $ 48,176 $ 13,195 $ (9,040 ) $ 52,331 add: proceeds from asset sales and disposals — — — — add: return of long-term contract receivable — — — — distributable cash flow $ 48,176 $ 13,195 $ (9,040 ) $ 52,331 less: proceeds from asset sales and disposals — — — — less: acquisition costs — — — — free cash flow $ 48,176 $ 13,195 $ (9,040 ) $ 52,331 net cash provided by investing activities $ — $ — $ — $ — net cash used in financing activities (614 ) — (51,647 ) (52,261 ) natural resource partners l.p. reconciliation of non-gaap measures (unaudited) distributable cash flow and free cash flow mineral rights corporate and financing (in thousands) soda ash total for the six months ended june 30, 2022 net cash provided by (used in) operating activities of continuing operations $ 118,527 $ 23,625 $ (26,698 ) $ 115,454 add: proceeds from asset sales and disposals 346 — — 346 add: return of long-term contract receivable 563 — — 563 distributable cash flow $ 119,436 $ 23,625 $ (26,698 ) $ 116,363 less: proceeds from asset sales and disposals (346 ) — — (346 ) less: acquisition costs — — — — free cash flow $ 119,090 $ 23,625 $ (26,698 ) $ 116,017 net cash provided by investing activities $ 909 $ — $ — $ 909 net cash used in financing activities (614 ) — (191,913 ) (192,527 ) 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: 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 net cash provided by investing activities $ 1,257 $ — $ — $ 1,257 net cash used in financing activities (1,132 ) — (38,591 ) (39,723 ) natural resource partners l.p. reconciliation of non-gaap measures (unaudited) cash flow cushion for the three months ended (in thousands) september 30, 2021 december 31, 2021 march 31, 2022 june 30, 2022 last 12 months net cash provided by operating activities of continuing operations $ 30,059 $ 55,161 $ 52,331 $ 63,123 $ 200,674 add: proceeds from asset sales and disposals 74 — — 346 420 add: return of long-term contract receivable 540 541 — 563 1,644 distributable cash flow $ 30,673 $ 55,702 $ 52,331 $ 64,032 $ 202,738 less: proceeds from asset sales and disposals (74 ) — — (346 ) (420 ) free cash flow $ 30,599 $ 55,702 $ 52,331 $ 63,686 $ 202,318 less: mandatory opco debt repayments — (20,335 ) (16,697 ) (2,365 ) (39,397 ) less: preferred unit distributions and redemption of pik units (3,921 ) (3,980 ) (27,079 ) (7,500 ) (42,480 ) less: common unit distributions (5,671 ) (5,672 ) (5,672 ) (9,570 ) (26,585 ) less: warrant cash settlement — (9,183 ) — — (9,183 ) cash flow cushion $ 21,007 $ 16,532 $ 2,883 $ 44,251 $ 84,673 natural resource partners l.p. reconciliation of non-gaap measures (unaudited) leverage ratio for the three months ended (in thousands) september 30, 2021 december 31, 2021 march 31, 2022 june 30, 2022 last twelve months net income $ 29,498 $ 55,641 $ 63,899 $ 66,820 $ 215,858 less: equity earnings from unconsolidated investment (6,672 ) (10,625 ) (14,837 ) (14,643 ) (46,777 ) add: total distributions from unconsolidated investment — 7,350 13,230 10,486 31,066 add: interest expense, net 9,652 9,568 9,387 8,108 36,715 add: loss on extinguishment of debt — — — 4,048 4,048 add: depreciation, depletion and amortization 5,182 3,930 3,868 5,847 18,827 add: asset impairments 57 986 19 43 1,105 adjusted ebitda $ 37,717 $ 66,850 $ 75,566 $ 80,709 $ 260,842 debt—at june 30, 2022 $ 301,313 leverage ratio (1) 1.2 x leverage ratio is calculated as the outstanding principal of nrp's debt as of june 30, 2022 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, 2022, was 1.2x as calculated under the indenture governing nrp's 2025 parent company notes. for the three months ended (in thousands) september 30, 2020 december 31, 2020 march 31, 2021 june 30, 2021 last twelve 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) 4.6 x 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
