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

Natural Resource Partners L.P. (NYSE:NRP) today reported second quarter 2021 results as follows:

		For the Three Months Ended				Last Twelve Months 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 [e-mail]. 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 unit data)	2021				2020				2021				2021				2020
Revenues and other income
Coal royalty and other	$	33,611			$	31,666			$	32,927			$	66,538			$	63,099
Transportation and processing services	2,182				1,938				2,192				4,374				4,447
Equity (loss) in earnings of Ciner Wyoming	2,601				(3,058		)		1,973				4,574				3,214
Gain on asset sales and disposals	116				465				59				175				465
Total revenues and other income	$	38,510			$	31,011			$	37,151			$	75,661			$	71,225
Operating expenses
Operating and maintenance expenses	$	5,170			$	8,217			$	5,552			$	10,722			$	13,419
Depreciation, depletion and amortization	4,871				2,062				5,092				9,963				4,074
General and administrative expenses	3,388				3,621				4,110				7,498				7,534
Asset impairments	16				132,283				4,043				4,059				132,283
Total operating expenses	$	13,445			$	146,183			$	18,797			$	32,242			$	157,310
Income (loss) from operations	$	25,065			$	(115,172	)		$	18,354			$	43,419			$	(86,085	)
Interest expense, net	$	(9,683	)		$	(10,329	)		$	(9,973	)		$	(19,656	)		$	(20,637	)
Net income (loss)	$	15,382			$	(125,501	)		$	8,381			$	23,763			$	(106,722	)
Less: income attributable to preferred unitholders	(7,842		)		(7,613		)		(7,727		)		(15,569		)		(15,113		)
Net income (loss) attributable to common unitholders and the general partner	$	7,540			$	(133,114	)		$	654			$	8,194			$	(121,835	)
Net income (loss) attributable to common unitholders	$	7,389			$	(130,452	)		$	641			$	8,030			$	(119,398	)
Net income (loss) attributable to the general partner	151				(2,662		)		13				164				(2,437		)
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 (loss)	$	15,382			$	(125,501	)		$	8,381			$	23,763			$	(106,722	)
Comprehensive income from unconsolidated investment and other	2,533				1,359				732				3,265				336
Comprehensive income (loss)	$	17,915			$	(124,142	)		$	9,113			$	27,028			$	(106,386	)

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
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 (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

___________________
(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.

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

___________________
(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.

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

___________________
(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

___________________
(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.

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

___________________
(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.

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. 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)
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 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

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	)

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

___________________
(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.

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		%

 

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