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Name | Symbol | Market | Type |
---|---|---|---|
Natural Resource Partners Ltd New | NYSE:NRP | NYSE | Trust |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.28 | 0.31% | 90.00 | 93.04 | 89.75 | 93.04 | 7,372 | 15:01:17 |
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
35-2164875
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Large Accelerated Filer
|
¨
|
Accelerated Filer
|
|
ý
|
Non-accelerated Filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller Reporting Company
|
|
¨
|
|
|
Emerging Growth Company
|
|
¨
|
|
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
September 30,
|
|
December 31,
|
||||
(In thousands, except unit data)
|
2018
|
|
2017
|
||||
ASSETS
|
(Unaudited)
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
63,387
|
|
|
$
|
29,827
|
|
Accounts receivable, net
|
55,734
|
|
|
47,026
|
|
||
Accounts receivable—affiliates
|
22
|
|
|
161
|
|
||
Inventory
|
9,572
|
|
|
7,553
|
|
||
Prepaid expenses and other
|
4,665
|
|
|
5,838
|
|
||
Current assets of discontinued operations
|
988
|
|
|
991
|
|
||
Total current assets
|
134,368
|
|
|
91,396
|
|
||
Land
|
24,809
|
|
|
25,247
|
|
||
Plant and equipment, net
|
48,148
|
|
|
46,170
|
|
||
Mineral rights, net
|
869,106
|
|
|
883,885
|
|
||
Intangible assets, net
|
46,998
|
|
|
49,554
|
|
||
Equity in unconsolidated investment
|
242,901
|
|
|
245,433
|
|
||
Long-term contracts receivable
|
39,416
|
|
|
40,776
|
|
||
Other assets
|
6,188
|
|
|
6,547
|
|
||
Other assets—affiliate
|
—
|
|
|
156
|
|
||
Total assets
|
$
|
1,411,934
|
|
|
$
|
1,389,164
|
|
LIABILITIES AND CAPITAL
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable
|
$
|
7,467
|
|
|
$
|
6,957
|
|
Accounts payable—affiliates
|
608
|
|
|
562
|
|
||
Accrued liabilities
|
14,005
|
|
|
16,890
|
|
||
Accrued liabilities—affiliates
|
—
|
|
|
515
|
|
||
Accrued interest
|
5,540
|
|
|
15,484
|
|
||
Current portion of deferred revenue
|
1,403
|
|
|
—
|
|
||
Current portion of long-term debt, net
|
75,201
|
|
|
79,740
|
|
||
Current liabilities of discontinued operations
|
—
|
|
|
401
|
|
||
Total current liabilities
|
104,224
|
|
|
120,549
|
|
||
Deferred revenue
|
40,885
|
|
|
100,605
|
|
||
Long-term debt, net
|
716,514
|
|
|
729,608
|
|
||
Other non-current liabilities
|
1,958
|
|
|
2,808
|
|
||
Other non-current liabilities—affiliate
|
—
|
|
|
346
|
|
||
Total liabilities
|
863,581
|
|
|
953,916
|
|
||
Commitments and contingencies (see Note 15)
|
|
|
|
||||
Class A Convertible Preferred Units (250,000 and 258,844 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively, at $1,000 par value per unit; liquidation preference of $1,500 per unit)
|
164,587
|
|
|
173,431
|
|
||
Partners’ capital
|
|
|
|
||||
Common unitholders’ interest (12,245,920 and 12,232,006 units issued and outstanding at September 30, 2018 and December 31, 2017, respectively)
|
319,673
|
|
|
199,851
|
|
||
General partner’s interest
|
4,293
|
|
|
1,857
|
|
||
Warrant holders’ interest
|
66,816
|
|
|
66,816
|
|
||
Accumulated other comprehensive loss
|
(4,081
|
)
|
|
(3,313
|
)
|
||
Total partners’ capital
|
386,701
|
|
|
265,211
|
|
||
Non-controlling interest
|
(2,935
|
)
|
|
(3,394
|
)
|
||
Total capital
|
383,766
|
|
|
261,817
|
|
||
Total liabilities and capital
|
$
|
1,411,934
|
|
|
$
|
1,389,164
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands, except per unit data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues and other income
|
|
|
|
|
|
|
|
||||||||
Coal royalty and other
|
$
|
42,459
|
|
|
$
|
43,507
|
|
|
$
|
134,428
|
|
|
$
|
111,269
|
|
Coal royalty and other—affiliates
|
59
|
|
|
335
|
|
|
484
|
|
|
23,178
|
|
||||
Transportation and processing services
|
6,853
|
|
|
5,571
|
|
|
17,238
|
|
|
9,717
|
|
||||
Transportation and processing services—affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
6,013
|
|
||||
Construction aggregates
|
30,398
|
|
|
29,553
|
|
|
91,055
|
|
|
82,399
|
|
||||
Road construction and asphalt paving services
|
6,250
|
|
|
5,157
|
|
|
13,154
|
|
|
13,087
|
|
||||
Equity in earnings of Ciner Wyoming
|
8,836
|
|
|
8,993
|
|
|
34,986
|
|
|
27,676
|
|
||||
Gain on asset sales, net
|
163
|
|
|
171
|
|
|
1,033
|
|
|
3,576
|
|
||||
Total revenues and other income
|
$
|
95,018
|
|
|
$
|
93,287
|
|
|
$
|
292,378
|
|
|
$
|
276,915
|
|
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Operating and maintenance expenses
|
$
|
35,134
|
|
|
$
|
32,441
|
|
|
$
|
103,403
|
|
|
$
|
93,089
|
|
Operating and maintenance expenses—affiliates
|
2,414
|
|
|
2,154
|
|
|
8,944
|
|
|
6,928
|
|
||||
Depreciation, depletion and amortization
|
8,221
|
|
|
8,306
|
|
|
24,741
|
|
|
26,195
|
|
||||
Amortization expense—affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
1,008
|
|
||||
General and administrative
|
2,249
|
|
|
2,648
|
|
|
8,068
|
|
|
10,757
|
|
||||
General and administrative—affiliates
|
934
|
|
|
1,207
|
|
|
2,714
|
|
|
3,183
|
|
||||
Asset impairments
|
—
|
|
|
—
|
|
|
242
|
|
|
1,778
|
|
||||
Total operating expenses
|
$
|
48,952
|
|
|
$
|
46,756
|
|
|
$
|
148,112
|
|
|
$
|
142,938
|
|
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
$
|
46,066
|
|
|
$
|
46,531
|
|
|
$
|
144,266
|
|
|
$
|
133,977
|
|
Other expense, net
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
$
|
(17,501
|
)
|
|
$
|
(20,032
|
)
|
|
$
|
(53,205
|
)
|
|
$
|
(63,464
|
)
|
Debt modification expense
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,939
|
)
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,107
|
)
|
||||
Total other expense, net
|
$
|
(17,501
|
)
|
|
$
|
(20,032
|
)
|
|
$
|
(53,205
|
)
|
|
$
|
(75,510
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
$
|
28,565
|
|
|
$
|
26,499
|
|
|
$
|
91,061
|
|
|
$
|
58,467
|
|
Loss from discontinued operations
|
(24
|
)
|
|
(433
|
)
|
|
(72
|
)
|
|
(507
|
)
|
||||
Net income
|
$
|
28,541
|
|
|
$
|
26,066
|
|
|
$
|
90,989
|
|
|
$
|
57,960
|
|
Net loss (income) attributable to non-controlling interest
|
359
|
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
||||
Net income attributable to NRP
|
$
|
28,900
|
|
|
$
|
26,066
|
|
|
$
|
90,479
|
|
|
$
|
57,960
|
|
Less: income attributable to preferred unitholders
|
(7,500
|
)
|
|
(7,650
|
)
|
|
(22,500
|
)
|
|
(17,688
|
)
|
||||
Net income attributable to common unitholders and general partner
|
$
|
21,400
|
|
|
$
|
18,416
|
|
|
$
|
67,979
|
|
|
$
|
40,272
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to common unitholders
|
$
|
20,972
|
|
|
$
|
18,046
|
|
|
$
|
66,619
|
|
|
$
|
39,466
|
|
Net income attributable to the general partner
|
$
|
428
|
|
|
$
|
370
|
|
|
$
|
1,360
|
|
|
$
|
806
|
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations per common unit (see Note 5)
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.71
|
|
|
$
|
1.51
|
|
|
$
|
5.45
|
|
|
$
|
3.27
|
|
Diluted
|
$
|
1.30
|
|
|
$
|
1.08
|
|
|
4.06
|
|
|
2.67
|
|
||
Net income per common unit (see Note 5)
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.71
|
|
|
$
|
1.48
|
|
|
$
|
5.44
|
|
|
$
|
3.23
|
|
Diluted
|
$
|
1.30
|
|
|
$
|
1.07
|
|
|
4.06
|
|
|
2.65
|
|
||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
28,541
|
|
|
$
|
26,066
|
|
|
$
|
90,989
|
|
|
$
|
57,960
|
|
Comprehensive income (loss) from unconsolidated investment and other
|
791
|
|
|
(268
|
)
|
|
(768
|
)
|
|
(1,413
|
)
|
||||
Comprehensive income
|
$
|
29,332
|
|
|
$
|
25,798
|
|
|
$
|
90,221
|
|
|
$
|
56,547
|
|
Comprehensive loss (income) attributable to non-controlling interest
|
359
|
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
||||
Comprehensive income attributable to NRP
|
$
|
29,691
|
|
|
$
|
25,798
|
|
|
$
|
89,711
|
|
|
$
|
56,547
|
|
|
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, 2017
|
12,232
|
|
|
$
|
199,851
|
|
|
$
|
1,857
|
|
|
$
|
66,816
|
|
|
$
|
(3,313
|
)
|
|
$
|
265,211
|
|
|
$
|
(3,394
|
)
|
|
$
|
261,817
|
|
Cumulative effect of adoption of accounting standard (See Note 2)
|
—
|
|
|
69,057
|
|
|
1,409
|
|
|
—
|
|
|
—
|
|
|
70,466
|
|
|
—
|
|
|
70,466
|
|
|||||||
Net income
(1)
|
—
|
|
|
88,669
|
|
|
1,810
|
|
|
—
|
|
|
—
|
|
|
90,479
|
|
|
510
|
|
|
90,989
|
|
|||||||
Distributions to common unitholders and general partner
|
—
|
|
|
(16,526
|
)
|
|
(337
|
)
|
|
—
|
|
|
—
|
|
|
(16,863
|
)
|
|
—
|
|
|
(16,863
|
)
|
|||||||
Distributions to preferred unitholders
|
—
|
|
|
(22,310
|
)
|
|
(455
|
)
|
|
—
|
|
|
—
|
|
|
(22,765
|
)
|
|
—
|
|
|
(22,765
|
)
|
|||||||
Issuance of unit-based awards
|
14
|
|
|
410
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|
410
|
|
|||||||
Unit-based awards amortization and vesting
|
—
|
|
|
472
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
472
|
|
|
—
|
|
|
472
|
|
|||||||
Comprehensive income (loss) from unconsolidated investment and other
|
—
|
|
|
50
|
|
|
9
|
|
|
—
|
|
|
(768
|
)
|
|
(709
|
)
|
|
(51
|
)
|
|
(760
|
)
|
|||||||
Balance at September 30, 2018
|
12,246
|
|
|
$
|
319,673
|
|
|
$
|
4,293
|
|
|
$
|
66,816
|
|
|
$
|
(4,081
|
)
|
|
$
|
386,701
|
|
|
$
|
(2,935
|
)
|
|
$
|
383,766
|
|
|
|
|
|
|
(1)
|
Net income includes
$22.5 million
attributable to Preferred Unitholders that accumulated during the period, of which
$22.1 million
is allocated to the common unitholders and
$0.5 million
is allocated to the general partner.
|
|
Nine Months Ended September 30,
|
||||||
(In thousands)
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
90,989
|
|
|
$
|
57,960
|
|
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
|
|
|
|
||||
Depreciation, depletion and amortization
|
24,741
|
|
|
26,195
|
|
||
Amortization expense—affiliate
|
—
|
|
|
1,008
|
|
||
Distributions from unconsolidated investment
|
34,653
|
|
|
31,104
|
|
||
Equity earnings from unconsolidated investment
|
(34,986
|
)
|
|
(27,676
|
)
|
||
Gain on asset sales, net
|
(1,033
|
)
|
|
(3,576
|
)
|
||
Debt modification expense
|
—
|
|
|
7,939
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
4,107
|
|
||
Loss from discontinued operations
|
72
|
|
|
507
|
|
||
Asset impairments
|
242
|
|
|
1,778
|
|
||
Unit-based compensation expense
|
1,226
|
|
|
(23
|
)
|
||
Amortization of debt issuance costs and other
|
2,541
|
|
|
6,547
|
|
||
Other—affiliates
|
(190
|
)
|
|
(974
|
)
|
||
Change in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(7,004
|
)
|
|
508
|
|
||
Accounts receivable—affiliates
|
139
|
|
|
285
|
|
||
Accounts payable
|
670
|
|
|
730
|
|
||
Accounts payable—affiliates
|
46
|
|
|
(270
|
)
|
||
Accrued liabilities
|
(1,984
|
)
|
|
(7,096
|
)
|
||
Accrued liabilities—affiliates
|
(515
|
)
|
|
—
|
|
||
Accrued interest
|
(9,944
|
)
|
|
(5,322
|
)
|
||
Deferred revenue
|
9,200
|
|
|
(5
|
)
|
||
Deferred revenue—affiliates
|
—
|
|
|
(10,166
|
)
|
||
Other items, net
|
(846
|
)
|
|
(2,166
|
)
|
||
Net cash provided by operating activities of continuing operations
|
$
|
108,017
|
|
|
$
|
81,394
|
|
Net cash used in operating activities of discontinued operations
|
(469
|
)
|
|
(607
|
)
|
||
Net cash provided by operating activities
|
$
|
107,548
|
|
|
$
|
80,787
|
|
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
||||
Distributions from unconsolidated investment in excess of cumulative earnings
|
$
|
2,097
|
|
|
$
|
5,646
|
|
Proceeds from sale of assets
|
1,149
|
|
|
1,419
|
|
||
Return of long-term contract receivable
|
2,606
|
|
|
1,807
|
|
||
Return of long-term contract receivable—affiliate
|
—
|
|
|
804
|
|
||
Acquisition of plant and equipment and other
|
(9,666
|
)
|
|
(6,236
|
)
|
||
Net cash provided by (used in) investing activities of continuing operations
|
$
|
(3,814
|
)
|
|
$
|
3,440
|
|
Net cash provided by investing activities of discontinued operations
|
—
|
|
|
206
|
|
||
Net cash provided by (used in) investing activities
|
$
|
(3,814
|
)
|
|
$
|
3,646
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
||||||
(In thousands)
|
2018
|
|
2017
|
||||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from issuance of preferred units and warrants, net
|
$
|
—
|
|
|
$
|
242,100
|
|
Proceeds from issuance of 2022 Senior Notes, net
|
—
|
|
|
103,688
|
|
||
Borrowings on credit facility
|
35,000
|
|
|
69,000
|
|
||
Repayments of loans
|
(55,720
|
)
|
|
(356,292
|
)
|
||
Redemption of preferred units paid-in-kind
|
(8,844
|
)
|
|
—
|
|
||
Distributions to common unitholders and general partner
|
(16,863
|
)
|
|
(16,850
|
)
|
||
Distributions to preferred unitholders
|
(22,765
|
)
|
|
(5,019
|
)
|
||
Contributions to discontinued operations
|
(469
|
)
|
|
(401
|
)
|
||
Debt issuance costs and other
|
(982
|
)
|
|
(40,187
|
)
|
||
Net cash used in financing activities of continuing operations
|
$
|
(70,643
|
)
|
|
$
|
(3,961
|
)
|
Net cash provided by financing activities of discontinued operations
|
469
|
|
|
401
|
|
||
Net cash used in financing activities
|
$
|
(70,174
|
)
|
|
$
|
(3,560
|
)
|
|
|
|
|
||||
Net increase in cash and cash equivalents
|
$
|
33,560
|
|
|
$
|
80,873
|
|
Cash and cash equivalents at beginning of period
|
29,827
|
|
|
40,371
|
|
||
Cash and cash equivalents at end of period
|
$
|
63,387
|
|
|
$
|
121,244
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
||||
Cash paid during the period for interest from continuing operations
|
$
|
58,153
|
|
|
$
|
61,857
|
|
Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes
|
$
|
—
|
|
|
$
|
240,638
|
|
(In thousands)
|
Balance at
December 31, 2017
|
|
Adjustments due to
ASC 606
(As Adjusted)
1
|
|
Balance at
January 1, 2018
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net (including affiliates)
|
$
|
47,187
|
|
|
$
|
4,875
|
|
|
$
|
52,062
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|||||
Current portion of deferred revenue
|
$
|
—
|
|
|
$
|
1,022
|
|
|
$
|
1,022
|
|
Deferred revenue
|
100,605
|
|
|
(66,613
|
)
|
|
33,992
|
|
|||
|
|
|
|
|
|
||||||
Partners’ capital
|
|
|
|
|
|
||||||
Common unitholders’ interest
|
$
|
199,851
|
|
|
$
|
69,057
|
|
|
$
|
268,908
|
|
General partner’s interest
|
1,857
|
|
|
1,409
|
|
|
3,266
|
|
|||
Total partners’ capital
|
265,211
|
|
|
70,466
|
|
|
335,677
|
|
|
|
|
|
|
(1)
|
Refer to "Revision to Original Adoption of ASC 606" in
Note 2. Revenue from Contracts with Customers
for adjustments made to original adoption entries.
|
|
As of September 30, 2018
|
||||||||||
(In thousands)
|
As Reported
|
|
Balances without Adoption of ASC 606
|
|
Effect of Change
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net (including affiliates)
|
$
|
55,756
|
|
|
$
|
52,966
|
|
|
$
|
2,790
|
|
Total assets
|
1,411,934
|
|
|
1,409,144
|
|
|
2,790
|
|
|||
|
|
|
|
|
|
||||||
Liabilities and capital
|
|
|
|
|
|
||||||
Current portion of deferred revenue
|
$
|
1,403
|
|
|
$
|
—
|
|
|
$
|
1,403
|
|
Deferred revenue
|
40,885
|
|
|
100,185
|
|
|
(59,300
|
)
|
|||
Total liabilities
|
863,581
|
|
|
921,478
|
|
|
(57,897
|
)
|
|||
Partners’ capital
|
|
|
|
|
|
||||||
Common unitholders’ interest
|
$
|
319,673
|
|
|
$
|
260,200
|
|
|
$
|
59,473
|
|
General partner’s interest
|
4,293
|
|
|
3,079
|
|
|
1,214
|
|
|||
Total partners’ capital
|
386,701
|
|
|
326,014
|
|
|
60,687
|
|
|||
Total liabilities and capital
|
1,411,934
|
|
|
1,409,144
|
|
|
2,790
|
|
|
For the Three Months Ended September 30, 2018
|
||||||||||
(In thousands, except per unit data)
|
As Reported
|
|
Amounts without Adoption of ASC 606
|
|
Effect of Change
|
||||||
Coal royalty and other revenues (including affiliates)
|
$
|
42,518
|
|
|
$
|
45,680
|
|
|
$
|
(3,162
|
)
|
Net income from continuing operations
|
28,565
|
|
|
31,727
|
|
|
(3,162
|
)
|
|||
Net income
|
28,541
|
|
|
31,703
|
|
|
(3,162
|
)
|
|||
Net income per common unit (basic)
|
1.71
|
|
|
1.96
|
|
|
(0.25
|
)
|
|||
Net income per common unit (diluted)
|
1.30
|
|
|
1.44
|
|
|
(0.14
|
)
|
|
For the Nine Months Ended September 30, 2018
|
||||||||||
(In thousands, except per unit data)
|
As Reported
|
|
Amounts without Adoption of ASC 606
|
|
Effect of Change
|
||||||
Coal royalty and other revenues (including affiliates)
|
$
|
134,912
|
|
|
$
|
144,501
|
|
|
$
|
(9,589
|
)
|
Net income from continuing operations
|
91,061
|
|
|
100,840
|
|
|
(9,779
|
)
|
|||
Net income
|
90,989
|
|
|
100,768
|
|
|
(9,779
|
)
|
|||
Net income per common unit (basic)
|
5.44
|
|
|
6.22
|
|
|
(0.78
|
)
|
|||
Net income per common unit (diluted)
|
4.06
|
|
|
4.50
|
|
|
(0.44
|
)
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In thousands)
|
|
September 30, 2018
|
||||||
Coal royalty revenue
|
|
$
|
30,709
|
|
|
$
|
96,473
|
|
Production lease minimum revenue
|
|
1,769
|
|
|
6,310
|
|
||
Minimum lease straight-line revenue
|
|
567
|
|
|
1,739
|
|
||
Wheelage revenue
|
|
1,572
|
|
|
5,155
|
|
||
Coal overriding royalty revenue
|
|
3,918
|
|
|
10,492
|
|
||
Aggregates royalty revenue
|
|
888
|
|
|
3,551
|
|
||
Oil and gas royalty revenue
|
|
1,427
|
|
|
5,679
|
|
||
Property tax revenue
|
|
1,263
|
|
|
3,968
|
|
||
Other revenue
|
|
405
|
|
|
1,545
|
|
||
Coal royalty and other revenues
(1)
|
|
$
|
42,518
|
|
|
$
|
134,912
|
|
Transportation and processing services revenue
(2)
|
|
6,853
|
|
|
17,238
|
|
||
Total Coal royalty and other segment revenues
|
|
$
|
49,371
|
|
|
$
|
152,150
|
|
|
|
|
|
|
(1)
|
Represents revenue from contracts with customers as defined under ASC 606.
|
(2)
|
Revenue from contracts with customers as defined under ASC 606 was
$3.6 million
and
$9.6 million
for the
three and nine
months ended
September 30, 2018
, respectively. The remaining transportation and processing services revenue of
$3.3 million
and
$7.6 million
for the
three and nine
months ended
September 30, 2018
, respectively, related to other NRP-owned infrastructure leased to and operated by third party operators accounted for under ASC 840, Leases.
|
•
|
Production Leases
: Leases for which the Partnership expects that consideration from production will be greater than consideration from minimums over the lease term. Revenue recognition for these leases is recognized over time based on production as Coal royalty revenue or Aggregates royalty revenue, as applicable. Deferred revenue from minimums is recognized as royalty revenue when recoupment occurs or as Production lease minimum revenue when the recoupment period expires. In addition, NRP recognizes breakage revenue from minimums when NRP determines that recoupment is remote. This breakage revenue is included in Production lease minimum revenue.
|
•
|
Minimum Leases
: Leases for which the Partnership expects that consideration from minimums will be greater than consideration from production over the lease term. Revenue recognition for these leases is recognized straight-line over the lease term based on the minimum consideration amount as Minimum lease straight-line revenue.
|
|
|
September 30,
|
|
January 1,
|
||||
(In thousands)
|
|
2018
|
|
2018
|
||||
Receivables
|
|
|
|
|
||||
Total accounts receivable, net (including affiliates)
(1)
|
|
$
|
29,485
|
|
|
$
|
25,443
|
|
Prepaid expenses and other
(2)
|
|
2,673
|
|
|
2,830
|
|
||
|
|
|
|
|
||||
Contract liabilities
|
|
|
|
|
||||
Current portion of deferred revenue
|
|
$
|
1,403
|
|
|
$
|
1,022
|
|
Deferred revenue
|
|
40,885
|
|
|
33,992
|
|
|
|
|
|
|
(1)
|
Included in this amount is
$2.3 million
and
$1.9 million
of accounts receivable related to accrued minimum consideration as of September 30, 2018 and January 1, 2018, respectively.
|
(2)
|
Prepaid expenses and other includes notes receivable from contracts with customers.
|
(In thousands)
|
Nine Months Ended September 30, 2018
|
||
Balance at December 31, 2017
|
$
|
100,605
|
|
Cumulative adjustment for change in accounting principle
(1)
|
(65,591
|
)
|
|
Balance at January 1, 2018 (current and non-current)
|
$
|
35,014
|
|
Recognition of previously deferred revenue
|
(11,694
|
)
|
|
Accrued minimum payments due
|
3,837
|
|
|
Cash received for minimum payments
|
15,131
|
|
|
Balance at September 30, 2018 (current and non-current)
|
$
|
42,288
|
|
|
|
|
|
|
(1)
|
Included in this amount is
$(67.5) million
recognized in Partners' capital and
$1.9 million
of accrued minimum consideration recognized in Accounts receivable, net.
|
Lease Term
(1)
|
|
Weighted Average Remaining Years as of September 30, 2018
|
|
Annual Minimum Payments
(In thousands)
|
||
1 - 5 years
|
|
0.3
|
|
$
|
8,562
|
|
5 - 10 years
|
|
1.6
|
|
13,292
|
|
|
10+ years
|
|
9.5
|
|
34,205
|
|
|
|
|
|
|
(1)
|
The Partnership applied the practical expedient for disclosing remaining performance obligations for contracts with an expected duration of one year or less, and have excluded those contracts from this disclosure.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(In thousands)
|
September 30, 2018
|
||||||
Crushed stone, sand and gravel
|
$
|
16,618
|
|
|
$
|
48,427
|
|
Delivery and fuel income
|
10,825
|
|
|
32,587
|
|
||
Other revenues
|
2,955
|
|
|
10,041
|
|
||
Total construction aggregates revenues
|
$
|
30,398
|
|
|
$
|
91,055
|
|
Road construction and asphalt paving services
|
6,250
|
|
|
13,154
|
|
||
Total construction aggregates segment revenues
|
$
|
36,648
|
|
|
$
|
104,209
|
|
|
Balance at January 1, 2018
|
|
|
||||||||
(In thousands)
|
As Originally Reported
|
|
Corrected Balance
|
|
Effect of Correction
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net (including affiliates)
|
$
|
50,666
|
|
|
$
|
52,062
|
|
|
$
|
1,396
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
|
|
|
|
|
|
|||||
Current portion of deferred revenue
|
$
|
1,973
|
|
|
$
|
1,022
|
|
|
$
|
(951
|
)
|
Deferred revenue
|
11,858
|
|
|
33,992
|
|
|
22,134
|
|
|||
|
|
|
|
|
|
|
|||||
Partners’ capital
|
|
|
|
|
|
|
|||||
Common unitholders’ interest
|
$
|
288,299
|
|
|
$
|
268,908
|
|
|
$
|
(19,391
|
)
|
General partner’s interest
|
3,662
|
|
|
3,266
|
|
|
(396
|
)
|
|||
Total partners’ capital
|
355,464
|
|
|
335,677
|
|
|
(19,787
|
)
|
|
Balance at March 31, 2018
|
|
|
||||||||
(In thousands)
|
As Originally Reported
|
|
Corrected Balance
|
|
Effect of Correction
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net (including affiliates)
|
$
|
55,745
|
|
|
$
|
56,497
|
|
|
$
|
752
|
|
Total assets
|
1,377,206
|
|
|
1,377,958
|
|
|
752
|
|
|||
|
|
|
|
|
|
|
|||||
Liabilities and capital
|
|
|
|
|
|
|
|||||
Current portion of deferred revenue
|
$
|
1,554
|
|
|
$
|
1,377
|
|
|
$
|
(177
|
)
|
Deferred revenue
|
14,622
|
|
|
37,072
|
|
|
22,450
|
|
|||
Total liabilities
|
848,367
|
|
|
870,641
|
|
|
22,274
|
|
|||
Partners’ capital
|
|
|
|
|
|
|
|||||
Common unitholders’ interest
|
$
|
301,344
|
|
|
$
|
280,252
|
|
|
$
|
(21,092
|
)
|
General partner’s interest
|
3,924
|
|
|
3,494
|
|
|
(430
|
)
|
|||
Total partners’ capital
|
367,646
|
|
|
346,124
|
|
|
(21,522
|
)
|
|||
Total liabilities and capital
|
1,377,206
|
|
|
1,377,958
|
|
|
752
|
|
|
Balance at June 30, 2018
|
|
|
||||||||
(In thousands)
|
As Originally Reported
|
|
Corrected Balance
|
|
Effect of Correction
|
||||||
Assets
|
|
|
|
|
|
||||||
Accounts receivable, net (including affiliates)
|
$
|
59,452
|
|
|
$
|
59,178
|
|
|
$
|
(274
|
)
|
Total assets
|
1,411,806
|
|
|
1,411,532
|
|
|
(274
|
)
|
|||
|
|
|
|
|
|
||||||
Liabilities and capital
|
|
|
|
|
|
||||||
Current portion of deferred revenue
|
$
|
2,732
|
|
|
$
|
1,871
|
|
|
$
|
(861
|
)
|
Deferred revenue
|
17,136
|
|
|
40,224
|
|
|
23,088
|
|
|||
Total liabilities
|
857,299
|
|
|
879,526
|
|
|
22,227
|
|
|||
Partners’ capital
|
|
|
|
|
|
|
|||||
Common unitholders’ interest
|
$
|
326,125
|
|
|
$
|
304,074
|
|
|
$
|
(22,051
|
)
|
General partner’s interest
|
4,427
|
|
|
3,977
|
|
|
(450
|
)
|
|||
Total partners’ capital
|
392,496
|
|
|
369,995
|
|
|
(22,501
|
)
|
|||
Total liabilities and capital
|
1,411,806
|
|
|
1,411,532
|
|
|
(274
|
)
|
|
For the Three Months Ended March 31, 2018
|
|
|
||||||||
(In thousands, except per unit data)
|
As Originally Reported
|
|
Corrected Amount
|
|
Effect of Correction
|
||||||
Revenues and other income
|
|
|
|
|
|
||||||
Coal royalty and other revenues (including affiliates)
|
$
|
46,210
|
|
|
$
|
44,474
|
|
|
$
|
(1,736
|
)
|
Total revenues and other income
|
89,026
|
|
|
87,290
|
|
|
(1,736
|
)
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
$
|
44,058
|
|
|
$
|
42,322
|
|
|
$
|
(1,736
|
)
|
Net income from continuing operations
|
26,088
|
|
|
24,352
|
|
|
(1,736
|
)
|
|||
Net income
|
26,074
|
|
|
24,338
|
|
|
(1,736
|
)
|
|||
Net income attributable to common unitholders and general partner
|
18,574
|
|
|
16,838
|
|
|
(1,736
|
)
|
|||
|
|
|
|
|
|
|
|||||
Net income attributable to common unitholders
|
$
|
18,203
|
|
|
$
|
16,501
|
|
|
$
|
(1,702
|
)
|
Net income attributable to the general partner
|
371
|
|
|
337
|
|
|
(34
|
)
|
|||
|
|
|
|
|
|
|
|||||
Income from continuing operations per common unit
|
|
|
|
|
|
|
|||||
Basic
|
$
|
1.49
|
|
|
$
|
1.35
|
|
|
$
|
(0.14
|
)
|
Diluted
|
1.16
|
|
|
1.08
|
|
|
(0.08
|
)
|
|||
Net income per common unit
|
|
|
|
|
|
|
|||||
Basic
|
$
|
1.49
|
|
|
$
|
1.35
|
|
|
$
|
(0.14
|
)
|
Diluted
|
1.15
|
|
|
1.08
|
|
|
(0.07
|
)
|
|||
|
|
|
|
|
|
|
|||||
Comprehensive income
|
$
|
24,949
|
|
|
$
|
23,213
|
|
|
$
|
(1,736
|
)
|
|
For the Three Months Ended June 30, 2018
|
|
|
||||||||
(In thousands, except per unit data)
|
As Originally Reported
|
|
Corrected Amount
|
|
Effect of Correction
|
||||||
Revenues and other income
|
|
|
|
|
|
||||||
Coal royalty and other revenues (including affiliates)
|
$
|
48,899
|
|
|
$
|
47,920
|
|
|
$
|
(979
|
)
|
Total revenues and other income
|
111,049
|
|
|
110,070
|
|
|
(979
|
)
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
$
|
56,857
|
|
|
$
|
55,878
|
|
|
$
|
(979
|
)
|
Net income from continuing operations
|
39,123
|
|
|
38,144
|
|
|
(979
|
)
|
|||
Net income
|
39,089
|
|
|
38,110
|
|
|
(979
|
)
|
|||
Net income attributable to NRP
|
38,220
|
|
|
37,241
|
|
|
(979
|
)
|
|||
Net income attributable to common unitholders and general partner
|
30,720
|
|
|
29,741
|
|
|
(979
|
)
|
|||
|
|
|
|
|
|
||||||
Net income attributable to common unitholders
|
$
|
30,105
|
|
|
$
|
29,146
|
|
|
$
|
(959
|
)
|
Net income attributable to the general partner
|
615
|
|
|
595
|
|
|
(20
|
)
|
|||
|
|
|
|
|
|
|
|||||
Income from continuing operations per common unit
|
|
|
|
|
|
|
|||||
Basic
|
$
|
2.46
|
|
|
$
|
2.38
|
|
|
$
|
(0.08
|
)
|
Diluted
|
1.75
|
|
|
1.71
|
|
|
(0.04
|
)
|
|||
Net income per common unit
|
|
|
|
|
|
|
|||||
Basic
|
$
|
2.46
|
|
|
$
|
2.38
|
|
|
$
|
(0.08
|
)
|
Diluted
|
1.75
|
|
|
1.71
|
|
|
(0.04
|
)
|
|||
|
|
|
|
|
|
|
|||||
Comprehensive income
|
$
|
38,655
|
|
|
$
|
37,676
|
|
|
$
|
(979
|
)
|
Comprehensive income attributable to NRP
|
37,786
|
|
|
36,807
|
|
|
(979
|
)
|
|
For the Six Months Ended June 30, 2018
|
|
|
||||||||
(In thousands, except per unit data)
|
As Originally Reported
|
|
Corrected Amount
|
|
Effect of Correction
|
||||||
Revenues and other income
|
|
|
|
|
|
||||||
Coal royalty and other revenues (including affiliates)
|
$
|
95,109
|
|
|
$
|
92,394
|
|
|
$
|
(2,715
|
)
|
Total revenues and other income
|
200,075
|
|
|
197,360
|
|
|
(2,715
|
)
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
$
|
100,915
|
|
|
$
|
98,200
|
|
|
$
|
(2,715
|
)
|
Net income from continuing operations
|
65,211
|
|
|
62,496
|
|
|
(2,715
|
)
|
|||
Net income
|
65,163
|
|
|
62,448
|
|
|
(2,715
|
)
|
|||
Net income attributable to NRP
|
64,294
|
|
|
61,579
|
|
|
(2,715
|
)
|
|||
Net income attributable to common unitholders and general partner
|
49,294
|
|
|
46,579
|
|
|
(2,715
|
)
|
|||
|
|
|
|
|
|
|
|
||||
Net income attributable to common unitholders
|
$
|
48,308
|
|
|
$
|
45,647
|
|
|
$
|
(2,661
|
)
|
Net income attributable to the general partner
|
986
|
|
|
932
|
|
|
(54
|
)
|
|||
|
|
|
|
|
|
|
|||||
Income from continuing operations per common unit
|
|
|
|
|
|
|
|||||
Basic
|
$
|
3.95
|
|
|
$
|
3.73
|
|
|
$
|
(0.22
|
)
|
Diluted
|
2.96
|
|
|
2.83
|
|
|
(0.13
|
)
|
|||
Net income per common unit
|
|
|
|
|
|
|
|||||
Basic
|
$
|
3.95
|
|
|
$
|
3.73
|
|
|
$
|
(0.22
|
)
|
Diluted
|
2.95
|
|
|
2.83
|
|
|
(0.12
|
)
|
|||
|
|
|
|
|
|
|
|||||
Comprehensive income
|
$
|
63,604
|
|
|
$
|
60,889
|
|
|
$
|
(2,715
|
)
|
Comprehensive income attributable to NRP
|
62,735
|
|
|
60,020
|
|
|
(2,715
|
)
|
(In thousands, except unit data)
|
|
Units Outstanding
|
|
Financial Position
|
|||
Balance at December 31, 2017
|
|
258,844
|
|
|
$
|
173,431
|
|
Redemption of PIK Units
|
|
(8,844
|
)
|
|
(8,844
|
)
|
|
Balance at September 30, 2018
|
|
250,000
|
|
|
$
|
164,587
|
|
|
|
|
|
|
|
Total Distributions (in thousands)
|
||||||||||||
Date Paid
|
|
Period Covered by Distribution
|
|
Distribution per Common Unit
|
|
Common Units
|
|
GP Interest
|
|
Total
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||
February 14, 2018
|
|
October 1 - December 31, 2017
|
|
$
|
0.45
|
|
|
$
|
5,505
|
|
|
$
|
112
|
|
|
$
|
5,617
|
|
May 14, 2018
|
|
January 1 - March 31, 2018
|
|
$
|
0.45
|
|
|
$
|
5,510
|
|
|
$
|
113
|
|
|
$
|
5,623
|
|
August 14, 2018
|
|
April 1 - June 30, 2018
|
|
$
|
0.45
|
|
|
$
|
5,511
|
|
|
$
|
112
|
|
|
$
|
5,623
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||
February 14, 2017
|
|
October 1 - December 31, 2016
|
|
$
|
0.45
|
|
|
$
|
5,503
|
|
|
$
|
112
|
|
|
$
|
5,615
|
|
May 12, 2017
|
|
January 1 - March 31, 2017
|
|
$
|
0.45
|
|
|
$
|
5,506
|
|
|
$
|
113
|
|
|
$
|
5,619
|
|
August 14, 2017
|
|
April 1 - June 30, 2017
|
|
$
|
0.45
|
|
|
$
|
5,504
|
|
|
$
|
112
|
|
|
$
|
5,616
|
|
Date Paid
|
|
Period Covered by Distribution
|
|
Distribution per Preferred Unit
|
|
Total Distribution Declared
(in thousands)
|
||||
2018
|
|
|
|
|
|
|
||||
February 7, 2018
|
|
October 1 - December 31, 2017
|
|
$
|
30.00
|
|
|
$
|
7,765
|
|
May 14, 2018
|
|
January 1 - March 31, 2018
|
|
$
|
30.00
|
|
|
$
|
7,500
|
|
August 14, 2018
|
|
April 1 - June 30, 2018
|
|
$
|
30.00
|
|
|
$
|
7,500
|
|
|
|
|
|
|
|
|
||||
2017
|
|
|
|
|
|
|
||||
May 30, 2017
|
|
March 2 - March 31, 2017
|
|
$
|
5.00
|
|
|
$
|
2,500
|
|
August 29, 2017
|
|
April 1 - June 30, 2017
|
|
$
|
15.00
|
|
|
$
|
7,538
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands, except per unit data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Allocation of net income:
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
$
|
28,565
|
|
|
$
|
26,499
|
|
|
$
|
91,061
|
|
|
$
|
58,467
|
|
Add (less): net loss (income) attributable to non-controlling interest
|
359
|
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
||||
Less: income attributable to preferred unitholders
|
(7,500
|
)
|
|
(7,650
|
)
|
|
(22,500
|
)
|
|
(17,688
|
)
|
||||
Net income from continuing operations attributable to common unitholders and general partner
|
$
|
21,424
|
|
|
$
|
18,849
|
|
|
$
|
68,051
|
|
|
$
|
40,779
|
|
Less: net income from continuing operations attributable to the general partner
|
(428
|
)
|
|
(379
|
)
|
|
(1,361
|
)
|
|
(816
|
)
|
||||
Net income from continuing operations attributable to common unitholders
|
$
|
20,996
|
|
|
$
|
18,470
|
|
|
$
|
66,690
|
|
|
$
|
39,963
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss from discontinued operations
|
$
|
(24
|
)
|
|
$
|
(433
|
)
|
|
$
|
(72
|
)
|
|
$
|
(507
|
)
|
Less: net loss from discontinued operations attributable to the general partner
|
—
|
|
|
9
|
|
|
1
|
|
|
10
|
|
||||
Net loss from discontinued operations attributable to common unitholders
|
$
|
(24
|
)
|
|
$
|
(424
|
)
|
|
$
|
(71
|
)
|
|
$
|
(497
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
28,541
|
|
|
$
|
26,066
|
|
|
$
|
90,989
|
|
|
$
|
57,960
|
|
Add (less): net loss (income) attributable to non-controlling interest
|
359
|
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
||||
Less: income attributable to preferred unitholders
|
(7,500
|
)
|
|
(7,650
|
)
|
|
(22,500
|
)
|
|
(17,688
|
)
|
||||
Net income attributable to common unitholders and general partner
|
$
|
21,400
|
|
|
$
|
18,416
|
|
|
$
|
67,979
|
|
|
$
|
40,272
|
|
Less: net income attributable to the general partner
|
(428
|
)
|
|
(370
|
)
|
|
(1,360
|
)
|
|
(806
|
)
|
||||
Net income attributable to common unitholders
|
$
|
20,972
|
|
|
$
|
18,046
|
|
|
$
|
66,619
|
|
|
$
|
39,466
|
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per common unit:
|
|
|
|
|
|
|
|
||||||||
Weighted average common units—basic
|
12,246
|
|
|
12,232
|
|
|
12,243
|
|
|
12,232
|
|
||||
Basic net income from continuing operations per common unit
|
$
|
1.71
|
|
|
$
|
1.51
|
|
|
$
|
5.45
|
|
|
$
|
3.27
|
|
Basic net loss from discontinued operations per common unit
|
$
|
—
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.04
|
)
|
Basic net income per common unit
|
$
|
1.71
|
|
|
$
|
1.48
|
|
|
$
|
5.44
|
|
|
$
|
3.23
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands, except per unit data)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Diluted income (loss) per common unit:
|
|
|
|
|
|
|
|
||||||||
Weighted average common units—basic
|
12,246
|
|
|
12,232
|
|
|
12,243
|
|
|
12,232
|
|
||||
Plus: dilutive effect of Warrants
|
470
|
|
|
225
|
|
|
474
|
|
|
330
|
|
||||
Plus: dilutive effect of Preferred Units
|
9,124
|
|
|
11,523
|
|
|
9,124
|
|
|
8,909
|
|
||||
Weighted average common units—diluted
|
21,840
|
|
|
23,980
|
|
|
21,841
|
|
|
21,471
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
$
|
28,565
|
|
|
$
|
26,499
|
|
|
$
|
91,061
|
|
|
$
|
58,467
|
|
Add (less): net loss (income) attributable to non-controlling interest
|
359
|
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
||||
Diluted net income from continuing operations attributable to common unitholders and general partner
|
$
|
28,924
|
|
|
$
|
26,499
|
|
|
$
|
90,551
|
|
|
$
|
58,467
|
|
Less: diluted net income from continuing operations attributable to the general partner
|
(578
|
)
|
|
(530
|
)
|
|
(1,811
|
)
|
|
(1,169
|
)
|
||||
Diluted net income from continuing operations attributable to common unitholders
|
$
|
28,346
|
|
|
$
|
25,969
|
|
|
$
|
88,740
|
|
|
$
|
57,298
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net loss from discontinued operations attributable to common unitholders
|
$
|
(24
|
)
|
|
$
|
(424
|
)
|
|
$
|
(71
|
)
|
|
$
|
(497
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
28,541
|
|
|
$
|
26,066
|
|
|
$
|
90,989
|
|
|
$
|
57,960
|
|
Add (less): net loss (income) attributable to non-controlling interest
|
359
|
|
|
—
|
|
|
(510
|
)
|
|
—
|
|
||||
Diluted net income attributable to common unitholders and general partner
|
$
|
28,900
|
|
|
$
|
26,066
|
|
|
$
|
90,479
|
|
|
$
|
57,960
|
|
Less: diluted net income attributable to the general partner
|
(578
|
)
|
|
(521
|
)
|
|
(1,810
|
)
|
|
(1,159
|
)
|
||||
Diluted net income attributable to common unitholders
|
$
|
28,322
|
|
|
$
|
25,545
|
|
|
$
|
88,669
|
|
|
$
|
56,801
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted net income from continuing operations per common unit
|
$
|
1.30
|
|
|
$
|
1.08
|
|
|
$
|
4.06
|
|
|
$
|
2.67
|
|
Diluted net loss from discontinued operations per common unit
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
Diluted net income per common unit
|
$
|
1.30
|
|
|
$
|
1.07
|
|
|
$
|
4.06
|
|
|
$
|
2.65
|
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
(In thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
Three Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues (including affiliates)
|
|
$
|
49,371
|
|
|
$
|
8,836
|
|
|
$
|
36,648
|
|
|
$
|
—
|
|
|
$
|
94,855
|
|
Intersegment revenues (expenses)
|
|
58
|
|
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|||||
Gain on asset sales, net
|
|
—
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
163
|
|
|||||
Operating and maintenance expenses
(including affiliates) |
|
6,790
|
|
|
—
|
|
|
30,758
|
|
|
—
|
|
|
37,548
|
|
|||||
Depreciation, depletion and amortization
|
|
4,888
|
|
|
—
|
|
|
3,333
|
|
|
—
|
|
|
8,221
|
|
|||||
General and administrative (including affiliates)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,183
|
|
|
3,183
|
|
|||||
Other expense, net
|
|
—
|
|
|
—
|
|
|
8
|
|
|
17,493
|
|
|
17,501
|
|
|||||
Net income (loss) from continuing operations
|
|
37,751
|
|
|
8,836
|
|
|
2,654
|
|
|
(20,676
|
)
|
|
28,565
|
|
|||||
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues (including affiliates)
|
|
$
|
49,413
|
|
|
$
|
8,993
|
|
|
$
|
34,710
|
|
|
$
|
—
|
|
|
$
|
93,116
|
|
Intersegment revenues (expenses)
|
|
78
|
|
|
—
|
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
|||||
Gain on asset sales, net
|
|
154
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
171
|
|
|||||
Operating and maintenance expenses
(including affiliates) |
|
6,348
|
|
|
—
|
|
|
28,247
|
|
|
—
|
|
|
34,595
|
|
|||||
Depreciation, depletion and amortization
|
|
5,305
|
|
|
—
|
|
|
3,001
|
|
|
—
|
|
|
8,306
|
|
|||||
General and administrative (including affiliates)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,855
|
|
|
3,855
|
|
|||||
Other expense, net
|
|
—
|
|
|
—
|
|
|
59
|
|
|
19,973
|
|
|
20,032
|
|
|||||
Net income (loss) from continuing operations
|
|
37,992
|
|
|
8,993
|
|
|
3,342
|
|
|
(23,828
|
)
|
|
26,499
|
|
|||||
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(433
|
)
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
(In thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
Nine Months Ended September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues (including affiliates)
|
|
$
|
152,150
|
|
|
$
|
34,986
|
|
|
$
|
104,209
|
|
|
$
|
—
|
|
|
$
|
291,345
|
|
Intersegment revenues (expenses)
|
|
173
|
|
|
—
|
|
|
(173
|
)
|
|
—
|
|
|
—
|
|
|||||
Gain on asset sales, net
|
|
819
|
|
|
—
|
|
|
214
|
|
|
—
|
|
|
1,033
|
|
|||||
Operating and maintenance expenses
(including affiliates) |
|
21,122
|
|
|
—
|
|
|
91,225
|
|
|
—
|
|
|
112,347
|
|
|||||
Depreciation, depletion and amortization
|
|
15,364
|
|
|
—
|
|
|
9,377
|
|
|
—
|
|
|
24,741
|
|
|||||
General and administrative (including affiliates)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,782
|
|
|
10,782
|
|
|||||
Asset impairment
|
|
242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242
|
|
|||||
Other expense, net
|
|
—
|
|
|
—
|
|
|
28
|
|
|
53,177
|
|
|
53,205
|
|
|||||
Net income (loss) from continuing operations
|
|
116,414
|
|
|
34,986
|
|
|
3,620
|
|
|
(63,959
|
)
|
|
91,061
|
|
|||||
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues (including affiliates)
|
|
$
|
150,177
|
|
|
$
|
27,676
|
|
|
$
|
95,486
|
|
|
$
|
—
|
|
|
$
|
273,339
|
|
Intersegment revenues (expenses)
|
|
208
|
|
|
—
|
|
|
(208
|
)
|
|
—
|
|
|
—
|
|
|||||
Gain on asset sales, net
|
|
3,367
|
|
|
—
|
|
|
209
|
|
|
—
|
|
|
3,576
|
|
|||||
Operating and maintenance expenses
(including affiliates) |
|
19,151
|
|
|
—
|
|
|
80,866
|
|
|
—
|
|
|
100,017
|
|
|||||
Depreciation, depletion and amortization
(including affiliates)
|
|
17,653
|
|
|
—
|
|
|
9,550
|
|
|
—
|
|
|
27,203
|
|
|||||
General and administrative (including affiliates)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,940
|
|
|
13,940
|
|
|||||
Asset impairment
|
|
1,778
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,778
|
|
|||||
Other expense, net
|
|
—
|
|
|
—
|
|
|
632
|
|
|
74,878
|
|
|
75,510
|
|
|||||
Net income (loss) from continuing operations
|
|
115,170
|
|
|
27,676
|
|
|
4,439
|
|
|
(88,818
|
)
|
|
58,467
|
|
|||||
Loss from discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(507
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets of continuing operations
|
|
$
|
968,312
|
|
|
$
|
242,901
|
|
|
$
|
196,684
|
|
|
$
|
3,049
|
|
|
$
|
1,410,946
|
|
Total assets of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
988
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets of continuing operations
|
|
$
|
945,237
|
|
|
$
|
245,433
|
|
|
$
|
191,374
|
|
|
$
|
6,129
|
|
|
$
|
1,388,173
|
|
Total assets of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
991
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance at beginning of period
|
$
|
245,524
|
|
|
$
|
248,919
|
|
|
$
|
245,433
|
|
|
$
|
255,901
|
|
Income allocation to NRP’s equity interests
|
10,036
|
|
|
10,171
|
|
|
38,525
|
|
|
30,925
|
|
||||
Amortization of basis difference
|
(1,200
|
)
|
|
(1,178
|
)
|
|
(3,539
|
)
|
|
(3,249
|
)
|
||||
Comprehensive income (loss) from unconsolidated investment
|
791
|
|
|
(280
|
)
|
|
(768
|
)
|
|
(1,445
|
)
|
||||
Distribution
|
(12,250
|
)
|
|
(12,250
|
)
|
|
(36,750
|
)
|
|
(36,750
|
)
|
||||
Balance at end of period
|
$
|
242,901
|
|
|
$
|
245,382
|
|
|
$
|
242,901
|
|
|
$
|
245,382
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Sales
|
$
|
123,366
|
|
|
$
|
122,576
|
|
|
$
|
354,467
|
|
|
$
|
368,885
|
|
Gross profit
|
26,253
|
|
|
27,872
|
|
|
68,497
|
|
|
80,788
|
|
||||
Net income
|
20,481
|
|
|
20,758
|
|
|
78,623
|
|
|
63,112
|
|
|
September 30,
|
|
December 31,
|
||||
(In thousands)
|
2018
|
|
2017
|
||||
Plant and equipment
|
$
|
92,924
|
|
|
$
|
84,173
|
|
Construction in process
|
1,250
|
|
|
803
|
|
||
Less accumulated depreciation
|
(46,026
|
)
|
|
(38,806
|
)
|
||
Total plant and equipment, net
|
$
|
48,148
|
|
|
$
|
46,170
|
|
|
September 30, 2018
|
||||||||||
(In thousands)
|
Carrying Value
|
|
Accumulated Depletion
|
|
Net Book Value
|
||||||
Coal properties
|
$
|
1,169,862
|
|
|
$
|
(447,561
|
)
|
|
$
|
722,301
|
|
Aggregates properties
|
150,642
|
|
|
(20,345
|
)
|
|
130,297
|
|
|||
Oil and gas royalty properties
|
12,395
|
|
|
(7,514
|
)
|
|
4,881
|
|
|||
Other
|
13,161
|
|
|
(1,534
|
)
|
|
11,627
|
|
|||
Total mineral rights, net
|
$
|
1,346,060
|
|
|
$
|
(476,954
|
)
|
|
$
|
869,106
|
|
|
December 31, 2017
|
||||||||||
(In thousands)
|
Carrying Value
|
|
Accumulated Depletion
|
|
Net Book Value
|
||||||
Coal properties
|
$
|
1,170,104
|
|
|
$
|
(436,964
|
)
|
|
$
|
733,140
|
|
Aggregates properties
|
150,642
|
|
|
(16,836
|
)
|
|
133,806
|
|
|||
Oil and gas royalty properties
|
12,395
|
|
|
(7,158
|
)
|
|
5,237
|
|
|||
Other
|
13,168
|
|
|
(1,466
|
)
|
|
11,702
|
|
|||
Total mineral rights, net
|
$
|
1,346,309
|
|
|
$
|
(462,424
|
)
|
|
$
|
883,885
|
|
|
September 30,
|
|
December 31,
|
||||
(In thousands)
|
2018
|
|
2017
|
||||
Intangible assets
|
$
|
86,336
|
|
|
$
|
86,336
|
|
Less: accumulated amortization
|
(39,338
|
)
|
|
(36,782
|
)
|
||
Total intangible assets, net
|
$
|
46,998
|
|
|
$
|
49,554
|
|
|
September 30,
|
|
December 31,
|
||||
(In thousands)
|
2018
|
|
2017
|
||||
NRP LP debt:
|
|
|
|
||||
10.500% senior notes, with semi-annual interest payments in March and September, due March 2022, $241 million issued at par and $105 million issued at 98.75%
|
$
|
345,638
|
|
|
$
|
345,638
|
|
Opco debt:
|
|
|
|
||||
Revolving credit facility
|
95,000
|
|
|
60,000
|
|
||
Senior notes
|
|
|
|
||||
4.91% with semi-annual interest payments in June and December, with annual principal payments in June, due June 2018
|
—
|
|
|
4,586
|
|
||
8.38% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2019
|
21,334
|
|
|
42,670
|
|
||
5.05% with semi-annual interest payments in January and July, with annual principal payments in July, due July 2020
|
15,298
|
|
|
22,946
|
|
||
5.55% with semi-annual interest payments in June and December, with annual principal payments in June, due June 2023
|
13,429
|
|
|
16,115
|
|
||
4.73% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2023
|
44,693
|
|
|
44,693
|
|
||
5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024
|
89,589
|
|
|
104,520
|
|
||
8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024
|
27,200
|
|
|
31,733
|
|
||
5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026
|
120,547
|
|
|
120,547
|
|
||
5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026
|
34,396
|
|
|
34,396
|
|
||
Total debt at face value
|
$
|
807,124
|
|
|
$
|
827,844
|
|
Net unamortized debt discount
|
(1,365
|
)
|
|
(1,661
|
)
|
||
Net unamortized debt issuance costs
|
(14,044
|
)
|
|
(16,835
|
)
|
||
Total debt, net
|
$
|
791,715
|
|
|
$
|
809,348
|
|
Less: current portion of long-term debt
|
75,201
|
|
|
79,740
|
|
||
Total long-term debt, net
|
$
|
716,514
|
|
|
$
|
729,608
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
(In thousands)
|
Carrying
Value |
|
Estimated
Fair Value |
|
Carrying
Value |
|
Estimated
Fair Value |
||||||||
Debt:
|
|
|
|
|
|
|
|
||||||||
NRP 2022 Senior Notes
(1)
|
$
|
333,119
|
|
|
$
|
370,697
|
|
|
$
|
330,404
|
|
|
$
|
366,376
|
|
Opco Senior Notes
(2)
|
363,596
|
|
|
393,056
|
|
|
418,944
|
|
|
447,538
|
|
||||
Opco Revolving Credit Facility
(3)
|
95,000
|
|
|
95,000
|
|
|
60,000
|
|
|
60,000
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Contracts receivable, current and long-term
(4)
|
$
|
41,228
|
|
|
$
|
28,855
|
|
|
$
|
43,826
|
|
|
$
|
30,517
|
|
|
|
|
|
|
(1)
|
The Level 1 fair value is based upon quotations obtained for identical instruments on the closing trading prices near period end.
|
(2)
|
Due to no observable quoted prices on these instruments, the Level 3 fair value is estimated by management using quotations obtained for the NRP Senior Notes on the closing trading prices near period end.
|
(3)
|
The Level 3 fair value approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay this debt at any time without penalty.
|
(4)
|
The Level 3 fair value is determined based on the present value of future cash flow projections related to the underlying assets.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Coal royalty and other
|
|
$
|
8,199
|
|
|
$
|
13,251
|
|
|
$
|
23,269
|
|
|
$
|
13,894
|
|
Coal royalty and other—affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,203
|
|
||||
Transportation and processing services
|
|
6,836
|
|
|
5,571
|
|
|
17,187
|
|
|
9,717
|
|
||||
Transportation and processing services—affiliate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,013
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Operating and maintenance expense
|
|
$
|
478
|
|
|
$
|
415
|
|
|
$
|
1,290
|
|
|
$
|
700
|
|
Operating and maintenance expense—affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
452
|
|
|
September 30,
|
|
December 31,
|
||||
(In thousands)
|
2018
|
|
2017
|
||||
Projected remaining payments
|
$
|
67,727
|
|
|
$
|
71,452
|
|
Unearned income
|
25,872
|
|
|
28,366
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
(In thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Operating and maintenance expenses—affiliates
|
$
|
1,835
|
|
|
$
|
1,772
|
|
|
$
|
5,469
|
|
|
$
|
5,737
|
|
General and administrative—affiliates
|
934
|
|
|
1,207
|
|
|
2,714
|
|
|
3,183
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
(In thousands)
|
|
Revenues
|
|
Percent
|
|
Revenues
|
|
Percent
|
|
Revenues
|
|
Percent
|
|
Revenues
|
|
Percent
|
||||||||||||
Foresight Energy
|
|
$
|
15,035
|
|
|
15.8
|
%
|
|
$
|
18,781
|
|
|
20.1
|
%
|
|
$
|
40,456
|
|
|
13.8
|
%
|
|
$
|
50,827
|
|
|
18.4
|
%
|
(In thousands)
|
Common Units
|
|
Weighted Average Exercise Price
|
|||
Outstanding at January 1, 2018
|
—
|
|
|
$
|
—
|
|
Granted
|
75
|
|
|
$
|
29.16
|
|
Fully vested and issued
|
(14
|
)
|
|
$
|
29.44
|
|
Forfeitures
|
—
|
|
|
$
|
—
|
|
Outstanding at September 30, 2018
|
61
|
|
|
$
|
29.10
|
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
(In thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
Revenues and other income
|
|
$
|
152,969
|
|
|
$
|
34,986
|
|
|
$
|
104,423
|
|
|
$
|
—
|
|
|
$
|
292,378
|
|
Net income (loss) from continuing operations
|
|
$
|
116,414
|
|
|
$
|
34,986
|
|
|
$
|
3,620
|
|
|
$
|
(63,959
|
)
|
|
$
|
91,061
|
|
Adjusted EBITDA
(1)
|
|
$
|
131,510
|
|
|
$
|
36,750
|
|
|
$
|
13,025
|
|
|
$
|
(10,782
|
)
|
|
$
|
170,503
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow provided by (used in) continuing operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
|
$
|
132,122
|
|
|
$
|
34,653
|
|
|
$
|
10,224
|
|
|
$
|
(68,982
|
)
|
|
$
|
108,017
|
|
Investing activities
|
|
$
|
3,432
|
|
|
$
|
2,097
|
|
|
$
|
(9,343
|
)
|
|
$
|
—
|
|
|
$
|
(3,814
|
)
|
Financing activities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(754
|
)
|
|
$
|
(69,889
|
)
|
|
$
|
(70,643
|
)
|
Distributable cash flow
(1)
|
|
$
|
135,554
|
|
|
$
|
36,750
|
|
|
$
|
6,051
|
|
|
$
|
(68,982
|
)
|
|
$
|
109,373
|
|
Free cash flow
(1)
|
|
$
|
134,728
|
|
|
$
|
36,750
|
|
|
$
|
(196
|
)
|
|
$
|
(68,982
|
)
|
|
$
|
102,300
|
|
|
|
|
|
|
(1)
|
See "Results of Operations" below for reconciliations to the most comparable GAAP financial measures.
|
|
|
For the Three Months Ended
September 30, |
|
Increase
(Decrease) |
|
Percentage
Change |
|||||||||
Business Segment (In thousands)
|
|
2018
|
|
2017
|
|
||||||||||
Coal Royalty and Other
|
|
$
|
49,371
|
|
|
$
|
49,567
|
|
|
$
|
(196
|
)
|
|
—
|
%
|
Soda Ash
|
|
8,836
|
|
|
8,993
|
|
|
(157
|
)
|
|
(2
|
)%
|
|||
Construction Aggregates
|
|
36,811
|
|
|
34,727
|
|
|
2,084
|
|
|
6
|
%
|
|||
Total
|
|
$
|
95,018
|
|
|
$
|
93,287
|
|
|
$
|
1,731
|
|
|
2
|
%
|
|
Three Months Ended September 30,
|
|
Increase
(Decrease)
|
|
Percentage
Change
|
|||||||||
(In thousands, except percent and per ton data)
|
2018
|
|
2017
|
|
||||||||||
Coal production (tons)
|
|
|
|
|
|
|
|
|||||||
Appalachia
|
|
|
|
|
|
|
|
|||||||
Northern
|
349
|
|
|
226
|
|
|
123
|
|
|
54
|
%
|
|||
Central
|
3,873
|
|
|
3,596
|
|
|
277
|
|
|
8
|
%
|
|||
Southern
|
346
|
|
|
468
|
|
|
(122
|
)
|
|
(26
|
)%
|
|||
Total Appalachia
|
4,568
|
|
|
4,290
|
|
|
278
|
|
|
6
|
%
|
|||
Illinois Basin
|
609
|
|
|
794
|
|
|
(185
|
)
|
|
(23
|
)%
|
|||
Northern Powder River Basin
|
855
|
|
|
849
|
|
|
6
|
|
|
1
|
%
|
|||
Total coal production
|
6,032
|
|
|
5,933
|
|
|
99
|
|
|
2
|
%
|
|||
Coal royalty revenue per ton
|
|
|
|
|
|
|
|
|||||||
Appalachia
|
|
|
|
|
|
|
|
|||||||
Northern
|
$
|
4.01
|
|
|
$
|
3.26
|
|
|
$
|
0.75
|
|
|
23
|
%
|
Central
|
5.37
|
|
|
4.77
|
|
|
0.60
|
|
|
13
|
%
|
|||
Southern
|
6.82
|
|
|
5.73
|
|
|
1.09
|
|
|
19
|
%
|
|||
Illinois Basin
|
4.89
|
|
|
4.32
|
|
|
0.57
|
|
|
13
|
%
|
|||
Northern Powder River Basin
|
3.79
|
|
|
3.47
|
|
|
0.32
|
|
|
9
|
%
|
|||
Combined average coal royalty revenue per ton
|
5.10
|
|
|
4.54
|
|
|
0.56
|
|
|
12
|
%
|
|||
Coal royalty revenues
|
|
|
|
|
|
|
|
|||||||
Appalachia
|
|
|
|
|
|
|
|
|||||||
Northern
|
$
|
1,402
|
|
|
$
|
737
|
|
|
$
|
665
|
|
|
90
|
%
|
Central
|
20,786
|
|
|
17,154
|
|
|
3,632
|
|
|
21
|
%
|
|||
Southern
|
2,359
|
|
|
2,683
|
|
|
(324
|
)
|
|
(12
|
)%
|
|||
Total Appalachia
|
24,547
|
|
|
20,574
|
|
|
3,973
|
|
|
19
|
%
|
|||
Illinois Basin
|
2,973
|
|
|
3,431
|
|
|
(458
|
)
|
|
(13
|
)%
|
|||
Northern Powder River Basin
|
3,237
|
|
|
2,945
|
|
|
292
|
|
|
10
|
%
|
|||
Unadjusted coal royalty revenue
|
30,757
|
|
|
26,950
|
|
|
3,807
|
|
|
14
|
%
|
|||
Coal royalty adjustment for minimum leases
(1)
|
(48
|
)
|
|
—
|
|
|
(48
|
)
|
|
(100
|
)%
|
|||
Total coal royalty revenue
|
$
|
30,709
|
|
|
$
|
26,950
|
|
|
$
|
3,759
|
|
|
14
|
%
|
Other revenues
|
|
|
|
|
—
|
|
|
|
||||||
Production lease minimum revenue
(1) (2)
|
$
|
1,769
|
|
|
$
|
9,812
|
|
|
$
|
(8,043
|
)
|
|
(82
|
)%
|
Minimum lease straight-line revenue
(1)
|
567
|
|
|
—
|
|
|
567
|
|
|
100
|
%
|
|||
Property tax revenue
|
1,263
|
|
|
513
|
|
|
750
|
|
|
146
|
%
|
|||
Wheelage revenue
|
1,572
|
|
|
1,219
|
|
|
353
|
|
|
29
|
%
|
|||
Coal overriding royalty revenue
|
3,918
|
|
|
3,059
|
|
|
859
|
|
|
28
|
%
|
|||
Lease assignment fee
|
—
|
|
|
1,000
|
|
|
(1,000
|
)
|
|
(100
|
)%
|
|||
Aggregates royalty revenues
|
888
|
|
|
817
|
|
|
71
|
|
|
9
|
%
|
|||
Oil and gas royalty revenues
|
1,427
|
|
|
117
|
|
|
1,310
|
|
|
1,120
|
%
|
|||
Other
|
405
|
|
|
356
|
|
|
49
|
|
|
14
|
%
|
|||
Total other revenues
|
$
|
11,809
|
|
|
$
|
16,893
|
|
|
$
|
(5,084
|
)
|
|
(30
|
)%
|
Coal royalty and other
|
42,518
|
|
|
43,843
|
|
|
(1,325
|
)
|
|
(3
|
)%
|
|||
Transportation and processing services
|
6,853
|
|
|
5,570
|
|
|
1,283
|
|
|
23
|
%
|
|||
Gain on asset sales, net
|
—
|
|
|
154
|
|
|
(154
|
)
|
|
(100
|
)%
|
|||
Total coal royalty and other segment revenues and other income
|
$
|
49,371
|
|
|
$
|
49,567
|
|
|
$
|
(196
|
)
|
|
—
|
%
|
|
|
|
|
|
(1)
|
These line items were impacted by the adoption of the new revenue recognition standard effective January 1, 2018. The total impact of the adoption of this standard in the three months ended
September 30, 2018
was a net decrease of
$3.2 million
in coal royalty and other revenues. Refer to
Note 1. Basis of Presentation
for the overall impact of the adoption of the new revenue recognition standard on our consolidated financial statements and
Note 2. Revenue from Contracts with Customers
for further discussion on changes in our revenue recognition policies as a result of this adoption.
|
(2)
|
Production lease minimum revenue decreased in total by
$8.0 million
as compared to the prior year quarter. Of this decrease, $4.3 million was the result of higher revenue from the expiration of minimums recognized in the prior year period and
$3.7 million
was a result of the new revenue recognition standard, which included
$5.0 million
of expired minimums from minimum leases which is now recognized straight-line over the lease term in Minimum lease straight-line revenue, partially offset by
$1.3 million
of breakage revenue related to production leases.
|
|
For the Three Months Ended
September 30, |
|
Increase
(Decrease)
|
|
Percentage
Change
|
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
||||||||||
Crushed stone, sand and gravel
|
$
|
16,618
|
|
|
$
|
16,724
|
|
|
$
|
(106
|
)
|
|
(1
|
)%
|
Delivery and fuel income
|
10,825
|
|
|
9,980
|
|
|
845
|
|
|
8
|
%
|
|||
Other
|
2,955
|
|
|
2,849
|
|
|
106
|
|
|
4
|
%
|
|||
Total construction aggregates revenues
|
$
|
30,398
|
|
|
$
|
29,553
|
|
|
$
|
845
|
|
|
3
|
%
|
Road construction and asphalt paving services
|
6,250
|
|
|
5,157
|
|
|
1,093
|
|
|
21
|
%
|
|||
Gain on asset sales, net
|
163
|
|
|
17
|
|
|
146
|
|
|
859
|
%
|
|||
Total construction aggregates revenues and other income
|
$
|
36,811
|
|
|
$
|
34,727
|
|
|
$
|
2,084
|
|
|
6
|
%
|
|
|
For the Three Months Ended
September 30, |
|
Increase
(Decrease) |
|
Percentage
Change |
|||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|||||||
Operating and maintenance expenses (including affiliates)
|
|
$
|
37,548
|
|
|
$
|
34,595
|
|
|
$
|
2,953
|
|
|
9
|
%
|
Depreciation, depletion and amortization (including affiliates)
|
|
8,221
|
|
|
8,306
|
|
|
(85
|
)
|
|
(1
|
)%
|
|||
General and administrative (including affiliates)
|
|
3,183
|
|
|
3,855
|
|
|
(672
|
)
|
|
(17
|
)%
|
|||
Total operating expenses
|
|
$
|
48,952
|
|
|
$
|
46,756
|
|
|
$
|
2,196
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Other expense, net
|
|
|
|
|
|
|
|
|
|||||||
Interest expense, net
|
|
$
|
17,501
|
|
|
$
|
20,032
|
|
|
$
|
(2,531
|
)
|
|
(13
|
)%
|
Total other expense, net
|
|
$
|
17,501
|
|
|
$
|
20,032
|
|
|
$
|
(2,531
|
)
|
|
(13
|
)%
|
•
|
Operating and maintenance expenses (including affiliate)
increased
$3.0 million
, or
9%
due to the following:
|
◦
|
Construction Aggregates segment operating and maintenance expenses include the costs to operate the segment and primarily consist of delivery and fuel, production costs, repair and maintenance, labor costs and utilities. Operating and maintenance costs for this segment
increased
$2.5 million
, or
9%
, from
$28.2 million
in the three months ended
September 30, 2017
to
$30.8 million
in the three months ended
September 30, 2018
primarily as a result of higher cost of materials and increased materials used due to increased construction and asphalt paving activity as well as higher delivery and labor costs.
|
◦
|
Coal Royalty and Other segment operating and maintenance expenses include costs to manage the segment and primarily consist of property taxes, legal, royalty and employee related costs. Operating and maintenance costs for this segment
increased
$0.4 million
, or
7%
, from
$6.3 million
in the three months ended
September 30, 2017
to
$6.8 million
in the three months ended
September 30, 2018
primarily as a result of increased legal and consulting fees related to the lawsuits regarding Foresight Energy’s Hillsboro/Deer Run mine and Macoupin/Shay mine in addition to higher property tax expense and increased overriding royalty interest fees, partially offset by $1.5 million of bad debt expense during the three months ended
September 30, 2017
related to the write-off of a note receivable.
|
•
|
General and administrative (G&A) expense
decreased
$0.7 million
, or
17%
, primarily due to lower salaries and benefits and lower professional fees.
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
For the Three Months Ended (in thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) from continuing operations
|
|
$
|
37,751
|
|
|
$
|
8,836
|
|
|
$
|
2,654
|
|
|
$
|
(20,676
|
)
|
|
$
|
28,565
|
|
Less: equity earnings from unconsolidated investment
|
|
—
|
|
|
(8,836
|
)
|
|
—
|
|
|
—
|
|
|
(8,836
|
)
|
|||||
Add: net loss attributable to non-controlling interest
|
|
359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
359
|
|
|||||
Add: total distributions from unconsolidated investment
|
|
—
|
|
|
12,250
|
|
|
—
|
|
|
—
|
|
|
12,250
|
|
|||||
Add: interest expense, net
|
|
—
|
|
|
—
|
|
|
8
|
|
|
17,493
|
|
|
17,501
|
|
|||||
Add: depreciation, depletion and amortization
|
|
4,888
|
|
|
—
|
|
|
3,333
|
|
|
—
|
|
|
8,221
|
|
|||||
Adjusted EBITDA
|
|
$
|
42,998
|
|
|
$
|
12,250
|
|
|
$
|
5,995
|
|
|
$
|
(3,183
|
)
|
|
$
|
58,060
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) from continuing operations
|
|
$
|
37,992
|
|
|
$
|
8,993
|
|
|
$
|
3,342
|
|
|
$
|
(23,828
|
)
|
|
$
|
26,499
|
|
Less: equity earnings from unconsolidated investment
|
|
—
|
|
|
(8,993
|
)
|
|
—
|
|
|
—
|
|
|
(8,993
|
)
|
|||||
Add: total distributions from unconsolidated investment
|
|
—
|
|
|
12,250
|
|
|
—
|
|
|
—
|
|
|
12,250
|
|
|||||
Add: interest expense, net
|
|
—
|
|
|
—
|
|
|
59
|
|
|
19,973
|
|
|
20,032
|
|
|||||
Add: depreciation, depletion and amortization
|
|
5,305
|
|
|
—
|
|
|
3,001
|
|
|
—
|
|
|
8,306
|
|
|||||
Adjusted EBITDA
|
|
$
|
43,297
|
|
|
$
|
12,250
|
|
|
$
|
6,402
|
|
|
$
|
(3,855
|
)
|
|
$
|
58,094
|
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
For the Three Months Ended (in thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow provided by (used in) continuing operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
|
$
|
41,604
|
|
|
$
|
12,250
|
|
|
$
|
6,941
|
|
|
$
|
(27,368
|
)
|
|
$
|
33,427
|
|
Investing activities
|
|
1,590
|
|
|
—
|
|
|
(3,571
|
)
|
|
—
|
|
|
(1,981
|
)
|
|||||
Financing activities
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
(20,795
|
)
|
|
(21,034
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow provided by (used in) continuing operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
|
$
|
44,119
|
|
|
$
|
8,992
|
|
|
$
|
2,155
|
|
|
$
|
(29,466
|
)
|
|
$
|
25,800
|
|
Investing activities
|
|
676
|
|
|
3,258
|
|
|
(1,163
|
)
|
|
—
|
|
|
2,771
|
|
|||||
Financing activities
|
|
484
|
|
|
—
|
|
|
—
|
|
|
51,406
|
|
|
51,890
|
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
For the Three Months Ended (in thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities of continuing operations
|
|
$
|
41,604
|
|
|
$
|
12,250
|
|
|
$
|
6,941
|
|
|
$
|
(27,368
|
)
|
|
$
|
33,427
|
|
Add: proceeds from sale of assets
|
|
—
|
|
|
—
|
|
|
238
|
|
|
—
|
|
|
238
|
|
|||||
Add: return on long-term contract receivables
|
|
1,590
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,590
|
|
|||||
Less: maintenance capital expenditures
|
|
—
|
|
|
—
|
|
|
(1,473
|
)
|
|
—
|
|
|
(1,473
|
)
|
|||||
Distributable cash flow
|
|
$
|
43,194
|
|
|
$
|
12,250
|
|
|
$
|
5,706
|
|
|
$
|
(27,368
|
)
|
|
$
|
33,782
|
|
Less: proceeds from the sale of assets
|
|
—
|
|
|
—
|
|
|
(238
|
)
|
|
—
|
|
|
(238
|
)
|
|||||
Less: expansion capital expenditures
|
|
—
|
|
|
—
|
|
|
(2,336
|
)
|
|
—
|
|
|
(2,336
|
)
|
|||||
Less: mitigation payments and acquisition costs classified as financing activities
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
—
|
|
|
(239
|
)
|
|||||
Free cash flow
|
|
$
|
43,194
|
|
|
$
|
12,250
|
|
|
$
|
2,893
|
|
|
$
|
(27,368
|
)
|
|
$
|
30,969
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities of continuing operations
|
|
$
|
44,119
|
|
|
$
|
8,992
|
|
|
$
|
2,155
|
|
|
$
|
(29,466
|
)
|
|
$
|
25,800
|
|
Add: distributions from unconsolidated investment in excess of cumulative earnings
|
|
—
|
|
|
3,258
|
|
|
—
|
|
|
—
|
|
|
3,258
|
|
|||||
Add: proceeds from sale of assets
|
|
76
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
151
|
|
|||||
Add: return on long-term contract receivables
|
|
600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600
|
|
|||||
Less: maintenance capital expenditures
|
|
—
|
|
|
—
|
|
|
(926
|
)
|
|
—
|
|
|
(926
|
)
|
|||||
Distributable cash flow
|
|
$
|
44,795
|
|
|
$
|
12,250
|
|
|
$
|
1,304
|
|
|
$
|
(29,466
|
)
|
|
$
|
28,883
|
|
Less: proceeds from the sale of assets
|
|
(76
|
)
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(151
|
)
|
|||||
Less: expansion capital expenditures
|
|
—
|
|
|
—
|
|
|
(312
|
)
|
|
—
|
|
|
(312
|
)
|
|||||
Free cash flow
|
|
$
|
44,719
|
|
|
$
|
12,250
|
|
|
$
|
917
|
|
|
$
|
(29,466
|
)
|
|
$
|
28,420
|
|
•
|
Coal Royalty and Other segment DCF and FCF
decreased
$1.6 million
and
$1.5 million
, respectively, primarily as a result of the timing of payments.
|
•
|
Construction Aggregates segment DCF and FCF
increased
$4.4 million
and
$2.0 million
, respectively, primarily due to the timing of certain operating payments, partially offset by increased capital expenditures.
|
•
|
Corporate and Financing DCF and FCF
increased
$2.1 million
primarily as a result of interest payments made in 2017 on NRP's 9.125% Senior Notes, which were fully repaid in the fourth quarter of 2017.
|
|
|
For the Nine Months Ended
September 30, |
|
Increase
(Decrease) |
|
Percentage
Change |
|||||||||
Business Segment (In thousands)
|
|
2018
|
|
2017
|
|
||||||||||
Coal Royalty and Other
|
|
$
|
152,969
|
|
|
$
|
153,544
|
|
|
$
|
(575
|
)
|
|
—
|
%
|
Soda Ash
|
|
34,986
|
|
|
27,676
|
|
|
7,310
|
|
|
26
|
%
|
|||
Construction Aggregates
|
|
104,423
|
|
|
95,695
|
|
|
8,728
|
|
|
9
|
%
|
|||
Total
|
|
$
|
292,378
|
|
|
$
|
276,915
|
|
|
$
|
15,463
|
|
|
6
|
%
|
|
For the Nine Months Ended
September 30, |
|
Increase
(Decrease) |
|
Percentage
Change |
|||||||||
(In thousands, except per ton data)
|
2018
|
|
2017
|
|
||||||||||
Coal production (tons)
|
|
|
|
|
|
|
|
|||||||
Appalachia
|
|
|
|
|
|
|
|
|||||||
Northern
|
1,490
|
|
|
1,672
|
|
|
(182
|
)
|
|
(11
|
)%
|
|||
Central
|
11,582
|
|
|
11,193
|
|
|
389
|
|
|
3
|
%
|
|||
Southern
|
1,288
|
|
|
1,721
|
|
|
(433
|
)
|
|
(25
|
)%
|
|||
Total Appalachia
|
14,360
|
|
|
14,586
|
|
|
(226
|
)
|
|
(2
|
)%
|
|||
Illinois Basin
|
2,091
|
|
|
3,545
|
|
|
(1,454
|
)
|
|
(41
|
)%
|
|||
Northern Powder River Basin
|
2,896
|
|
|
2,708
|
|
|
188
|
|
|
7
|
%
|
|||
Total coal production
|
19,347
|
|
|
20,839
|
|
|
(1,492
|
)
|
|
(7
|
)%
|
|||
Coal royalty revenue per ton
|
|
|
|
|
|
|
|
|||||||
Appalachia
|
|
|
|
|
|
|
|
|||||||
Northern
|
$
|
3.82
|
|
|
$
|
1.36
|
|
|
$
|
2.46
|
|
|
181
|
%
|
Central
|
5.57
|
|
|
5.09
|
|
|
0.48
|
|
|
9
|
%
|
|||
Southern
|
6.98
|
|
|
5.95
|
|
|
1.03
|
|
|
17
|
%
|
|||
Illinois Basin
|
4.56
|
|
|
3.68
|
|
|
0.88
|
|
|
24
|
%
|
|||
Northern Powder River Basin
|
2.70
|
|
|
2.89
|
|
|
(0.19
|
)
|
|
(7
|
)%
|
|||
Combined average coal royalty revenue per ton
|
4.99
|
|
|
4.34
|
|
|
0.65
|
|
|
15
|
%
|
|||
Coal royalty revenues
|
|
|
|
|
|
|
|
|||||||
Appalachia
|
|
|
|
|
|
|
|
|||||||
Northern
|
$
|
5,698
|
|
|
$
|
2,279
|
|
|
$
|
3,419
|
|
|
150
|
%
|
Central
|
64,538
|
|
|
57,027
|
|
|
7,511
|
|
|
13
|
%
|
|||
Southern
|
8,985
|
|
|
10,242
|
|
|
(1,257
|
)
|
|
(12
|
)%
|
|||
Total Appalachia
|
79,221
|
|
|
69,548
|
|
|
9,673
|
|
|
14
|
%
|
|||
Illinois Basin
|
9,533
|
|
|
13,055
|
|
|
(3,522
|
)
|
|
(27
|
)%
|
|||
Northern Powder River Basin
|
7,817
|
|
|
7,827
|
|
|
(10
|
)
|
|
—
|
%
|
|||
Unadjusted coal royalty revenue
|
96,571
|
|
|
90,430
|
|
|
6,141
|
|
|
7
|
%
|
|||
Coal royalty adjustment for minimum leases
(1)
|
(98
|
)
|
|
—
|
|
|
(98
|
)
|
|
(100
|
)%
|
|||
Total coal royalty revenue
|
$
|
96,473
|
|
|
$
|
90,430
|
|
|
$
|
6,043
|
|
|
7
|
%
|
Other revenues
|
|
|
|
|
|
|
|
|||||||
Production lease minimum revenue
(1) (2)
|
$
|
6,310
|
|
|
$
|
22,556
|
|
|
$
|
(16,246
|
)
|
|
(72
|
)%
|
Minimum lease straight-line revenue
(1) (2)
|
1,739
|
|
|
—
|
|
|
1,739
|
|
|
100
|
%
|
|||
Property tax revenue
|
3,968
|
|
|
4,311
|
|
|
(343
|
)
|
|
(8
|
)%
|
|||
Wheelage revenue
|
5,155
|
|
|
3,510
|
|
|
1,645
|
|
|
47
|
%
|
|||
Coal overriding royalty revenue
|
10,492
|
|
|
5,769
|
|
|
4,723
|
|
|
82
|
%
|
|||
Lease assignment fee
|
—
|
|
|
1,000
|
|
|
(1,000
|
)
|
|
(100
|
)%
|
|||
Aggregates royalty revenues
|
3,551
|
|
|
3,513
|
|
|
38
|
|
|
1
|
%
|
|||
Oil and gas royalty revenues
|
5,679
|
|
|
2,532
|
|
|
3,147
|
|
|
124
|
%
|
|||
Other
|
1,545
|
|
|
827
|
|
|
718
|
|
|
87
|
%
|
|||
Total other revenues
|
$
|
38,439
|
|
|
$
|
44,018
|
|
|
$
|
(5,579
|
)
|
|
(13
|
)%
|
Coal royalty and other
|
134,912
|
|
|
134,448
|
|
|
464
|
|
|
—
|
%
|
|||
Transportation and processing services
|
17,238
|
|
|
15,729
|
|
|
1,509
|
|
|
10
|
%
|
|||
Gain on asset sales, net
|
819
|
|
|
3,367
|
|
|
(2,548
|
)
|
|
(76
|
)%
|
|||
Total coal royalty and other segment revenues and other income
|
$
|
152,969
|
|
|
$
|
153,544
|
|
|
$
|
(575
|
)
|
|
—
|
%
|
|
|
|
|
|
(1)
|
These line items were impacted by the adoption of the new revenue recognition standard in the first quarter of 2018. The total impact of the adoption of this standard in the
nine
months ended
September 30, 2018
was a net decrease of
$9.6 million
in coal royalty and other revenues. Refer to
Note 1. Basis of Presentation
for the overall impact on our consolidated financial statements and
Note 2. Revenue from Contracts with Customers
for further discussion on changes in our revenue recognition policies.
|
(2)
|
Production lease minimum revenue decreased in total by
$16.2 million
year-over-year. Of this decrease, $5.0 million was the result of higher revenue from the expiration of minimums recognized in the prior year and
$11.2 million
was a result of the new revenue recognition standard, which included
$16.7 million
of expired minimums from minimum leases which is now recognized straight-line over the entire lease term in Minimum lease straight-line revenue, partially offset by
$5.5 million
in breakage revenue related to production leases.
|
•
|
Appalachia: Coal royalty revenue increased
$9.7 million
in this region as a result of higher metallurgical and thermal coal prices and higher metallurgical coal production as a result of increased demand, partially offset by lower thermal coal production as a result of the availability of qualified labor and lessee's capital constraints which limits their ability to increase production.
|
•
|
Illinois Basin: Despite a
24%
increase in coal royalty price per ton, a
41%
decrease in production in this region led to a net
$3.5 million
decrease in coal royalty revenue. The decreased production was primarily a result of the temporary relocation of certain production off of NRP's coal reserves. However, the decrease in coal royalty revenue was more than offset by a $4.9 million increase in overriding royalty revenue and wheelage primarily associated with the production of non-NRP coal.
|
|
For the Nine Months Ended
September 30, |
|
Increase
(Decrease) |
|
Percentage
Change |
|||||||||
(In thousands)
|
2018
|
|
2017
|
|
||||||||||
Crushed stone, sand and gravel
|
$
|
48,427
|
|
|
$
|
44,379
|
|
|
$
|
4,048
|
|
|
9
|
%
|
Delivery and fuel income
|
32,587
|
|
|
27,822
|
|
|
4,765
|
|
|
17
|
%
|
|||
Other
|
10,041
|
|
|
10,198
|
|
|
(157
|
)
|
|
(2
|
)%
|
|||
Total construction aggregates revenues
|
$
|
91,055
|
|
|
$
|
82,399
|
|
|
$
|
8,656
|
|
|
11
|
%
|
Road construction and asphalt paving services
|
13,154
|
|
|
13,087
|
|
|
67
|
|
|
1
|
%
|
|||
Gain on asset sales, net
|
214
|
|
|
209
|
|
|
5
|
|
|
2
|
%
|
|||
Total construction aggregates revenues and other income
|
$
|
104,423
|
|
|
$
|
95,695
|
|
|
$
|
8,728
|
|
|
9
|
%
|
|
|
For the Nine Months Ended
September 30, |
|
Increase
(Decrease) |
|
Percentage
Change |
|||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
||||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|||||||
Operating and maintenance expenses (including affiliates)
|
|
$
|
112,347
|
|
|
$
|
100,017
|
|
|
$
|
12,330
|
|
|
12
|
%
|
Depreciation, depletion and amortization (including affiliates)
|
|
24,741
|
|
|
27,203
|
|
|
(2,462
|
)
|
|
(9
|
)%
|
|||
General and administrative (including affiliates)
|
|
10,782
|
|
|
13,940
|
|
|
(3,158
|
)
|
|
(23
|
)%
|
|||
Asset impairments
|
|
242
|
|
|
1,778
|
|
|
(1,536
|
)
|
|
(86
|
)%
|
|||
Total operating expenses
|
|
$
|
148,112
|
|
|
$
|
142,938
|
|
|
$
|
5,174
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Other expense, net
|
|
|
|
|
|
|
|
|
|||||||
Interest expense, net
|
|
$
|
53,205
|
|
|
$
|
63,464
|
|
|
$
|
(10,259
|
)
|
|
(16
|
)%
|
Debt modification expense
|
|
—
|
|
|
7,939
|
|
|
(7,939
|
)
|
|
(100
|
)%
|
|||
Loss on extinguishment of debt
|
|
—
|
|
|
4,107
|
|
|
(4,107
|
)
|
|
(100
|
)%
|
|||
Total other expense, net
|
|
$
|
53,205
|
|
|
$
|
75,510
|
|
|
$
|
(22,305
|
)
|
|
(30
|
)%
|
•
|
Operating and maintenance expenses (including affiliate)
increased
$12.3 million
, or
12%
, from
$100.0 million
in the
nine
months ended
September 30, 2017
to
$112.3 million
in the
nine
months ended
September 30, 2018
.
|
◦
|
Construction Aggregates segment operating and maintenance expenses
increased
$10.4 million
, or
13%
, from
$80.9 million
in the
nine
months ended
September 30, 2017
to
$91.2 million
in the
nine
months ended
September 30, 2018
primarily as a result of higher delivery, materials and labor costs from the increased production activity, higher repair and maintenance expense due to timing of repairs and higher fuel costs as a result of increased diesel prices.
|
◦
|
Coal Royalty and Other segment operating and maintenance expenses
increased
$2.0 million
, or
10%
, from
$19.2 million
in the
nine
months ended
September 30, 2017
to
$21.1 million
in the
nine
months ended
September 30, 2018
primarily as a result of increased overriding royalty interest fees partially offset by lower property tax expense.
|
•
|
DD&A expense
decreased
primarily due to lower coal production in the Illinois Basin.
|
•
|
G&A expense
decreased
primarily due to performance-based awards that vested in March 2017 following the completion of our recapitalization transactions, partially offset by expense related to equity awards that were granted in 2018 in addition to the increased expense related to our long-term incentive awards as a result of an increase in our unit-price.
|
•
|
Asset impairments in the
nine
months ended
September 30, 2017
related to our timber assets. There were no material asset impairments in the
nine
months ended
September 30, 2018
.
|
•
|
Interest expense, net
decreased
primarily due to lower debt balances during the first half of 2018 as a result of progress made to repay debt partially offset by higher weighted average interest rates.
|
•
|
Debt modification expense in the
nine
months ended
September 30, 2017
resulted from the exchange of $241 million of our 2018 Senior Notes for 2022 Senior Notes.
|
•
|
Loss on extinguishment of debt in the
nine
months ended
September 30, 2017
resulted from the 4.563% premium paid to redeem the 2018 Senior Notes in April 2017.
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
For the Nine Months Ended (In thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) from continuing operations
|
|
$
|
116,414
|
|
|
$
|
34,986
|
|
|
$
|
3,620
|
|
|
$
|
(63,959
|
)
|
|
$
|
91,061
|
|
Less: equity earnings from unconsolidated investment
|
|
—
|
|
|
(34,986
|
)
|
|
—
|
|
|
—
|
|
|
(34,986
|
)
|
|||||
Less: net income attributable to non-controlling interest
|
|
(510
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(510
|
)
|
|||||
Add: total distributions from unconsolidated investment
|
|
—
|
|
|
36,750
|
|
|
—
|
|
|
—
|
|
|
36,750
|
|
|||||
Add: interest expense, net
|
|
—
|
|
|
—
|
|
|
28
|
|
|
53,177
|
|
|
53,205
|
|
|||||
Add: depreciation, depletion and amortization
|
|
15,364
|
|
|
—
|
|
|
9,377
|
|
|
—
|
|
|
24,741
|
|
|||||
Add: asset impairments
|
|
242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
242
|
|
|||||
Adjusted EBITDA
|
|
$
|
131,510
|
|
|
$
|
36,750
|
|
|
$
|
13,025
|
|
|
$
|
(10,782
|
)
|
|
$
|
170,503
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) from continuing operations
|
|
$
|
115,170
|
|
|
$
|
27,676
|
|
|
$
|
4,439
|
|
|
$
|
(88,818
|
)
|
|
$
|
58,467
|
|
Less: equity earnings from unconsolidated investment
|
|
—
|
|
|
(27,676
|
)
|
|
—
|
|
|
—
|
|
|
(27,676
|
)
|
|||||
Add: total distributions from unconsolidated investment
|
|
—
|
|
|
36,750
|
|
|
—
|
|
|
—
|
|
|
36,750
|
|
|||||
Add: interest expense, net
|
|
—
|
|
|
—
|
|
|
632
|
|
|
62,832
|
|
|
63,464
|
|
|||||
Add: debt modification expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,939
|
|
|
7,939
|
|
|||||
Add: loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,107
|
|
|
4,107
|
|
|||||
Add: depreciation, depletion and amortization
|
|
17,653
|
|
|
—
|
|
|
9,550
|
|
|
—
|
|
|
27,203
|
|
|||||
Add: asset impairments
|
|
1,778
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,778
|
|
|||||
Adjusted EBITDA
|
|
$
|
134,601
|
|
|
$
|
36,750
|
|
|
$
|
14,621
|
|
|
$
|
(13,940
|
)
|
|
$
|
172,032
|
|
•
|
Coal Royalty and Other Adjusted EBITDA
decreased
$3.1 million
primarily as a result of the decrease in other segment revenues, including gain on sale of assets and increased operating and maintenance expenses as discussed above. These decreases were partially offset by the increase in coal royalty and transportation and processing services revenues as discussed above.
|
•
|
Construction Aggregates segment Adjusted EBITDA
decreased
$1.6 million
as a result of the increase in operating expenses as discussed above, partially offset by higher production and sales of crushed stone, gravel and sand.
|
•
|
Corporate and Financing Adjusted EBITDA
increased
$3.2 million
as a result of the
decrease
in general and administrative expenses as discussed above.
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
For the Nine Months Ended (In thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow provided by (used in) continuing operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
|
$
|
132,122
|
|
|
$
|
34,653
|
|
|
$
|
10,224
|
|
|
$
|
(68,982
|
)
|
|
$
|
108,017
|
|
Investing activities
|
|
3,432
|
|
|
2,097
|
|
|
(9,343
|
)
|
|
—
|
|
|
(3,814
|
)
|
|||||
Financing activities
|
|
—
|
|
|
—
|
|
|
(754
|
)
|
|
(69,889
|
)
|
|
(70,643
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flow provided by (used in) continuing operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating activities
|
|
$
|
120,588
|
|
|
$
|
31,104
|
|
|
$
|
11,677
|
|
|
$
|
(81,975
|
)
|
|
$
|
81,394
|
|
Investing activities
|
|
3,570
|
|
|
5,646
|
|
|
(5,776
|
)
|
|
—
|
|
|
3,440
|
|
|||||
Financing activities
|
|
517
|
|
|
—
|
|
|
(1,096
|
)
|
|
(3,382
|
)
|
|
(3,961
|
)
|
|
|
Operating Segments
|
|
|
|
|
||||||||||||||
For the Nine Months Ended (In thousands)
|
|
Coal Royalty and Other
|
|
Soda Ash
|
|
Construction Aggregates
|
|
Corporate and Financing
|
|
Total
|
||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities of continuing operations
|
|
$
|
132,122
|
|
|
$
|
34,653
|
|
|
$
|
10,224
|
|
|
$
|
(68,982
|
)
|
|
$
|
108,017
|
|
Add: distributions from unconsolidated investment in excess of cumulative earnings
|
|
—
|
|
|
2,097
|
|
|
—
|
|
|
—
|
|
|
2,097
|
|
|||||
Add: proceeds from sale of assets
|
|
826
|
|
|
—
|
|
|
323
|
|
|
—
|
|
|
1,149
|
|
|||||
Add: return on long-term contract receivables
|
|
2,606
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,606
|
|
|||||
Less: maintenance capital expenditures
|
|
—
|
|
|
—
|
|
|
(4,496
|
)
|
|
—
|
|
|
(4,496
|
)
|
|||||
Distributable cash flow
|
|
$
|
135,554
|
|
|
$
|
36,750
|
|
|
$
|
6,051
|
|
|
$
|
(68,982
|
)
|
|
$
|
109,373
|
|
Less: proceeds from the sale of assets
|
|
(826
|
)
|
|
—
|
|
|
(323
|
)
|
|
—
|
|
|
(1,149
|
)
|
|||||
Less: expansion capital expenditures
|
|
—
|
|
|
—
|
|
|
(5,170
|
)
|
|
—
|
|
|
(5,170
|
)
|
|||||
Less: mitigation payments and acquisition costs classified as financing activities
|
|
—
|
|
|
—
|
|
|
(754
|
)
|
|
—
|
|
|
(754
|
)
|
|||||
Free cash flow
|
|
$
|
134,728
|
|
|
$
|
36,750
|
|
|
$
|
(196
|
)
|
|
$
|
(68,982
|
)
|
|
$
|
102,300
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities of continuing operations
|
|
$
|
120,588
|
|
|
$
|
31,104
|
|
|
$
|
11,677
|
|
|
$
|
(81,975
|
)
|
|
$
|
81,394
|
|
Add: return of equity from unconsolidated investment
|
|
—
|
|
|
5,646
|
|
|
—
|
|
|
—
|
|
|
5,646
|
|
|||||
Add: proceeds from sale of assets
|
|
959
|
|
|
—
|
|
|
460
|
|
|
—
|
|
|
1,419
|
|
|||||
Add: return on long-term contract receivables
|
|
2,611
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,611
|
|
|||||
Less: maintenance capital expenditures
|
|
—
|
|
|
—
|
|
|
(5,310
|
)
|
|
—
|
|
|
(5,310
|
)
|
|||||
Distributable cash flow
|
|
$
|
124,158
|
|
|
$
|
36,750
|
|
|
$
|
6,827
|
|
|
$
|
(81,975
|
)
|
|
$
|
85,760
|
|
Less: proceeds from the sale of assets
|
|
(959
|
)
|
|
—
|
|
|
(460
|
)
|
|
—
|
|
|
(1,419
|
)
|
|||||
Less: expansion capital expenditures
|
|
—
|
|
|
—
|
|
|
(926
|
)
|
|
—
|
|
|
(926
|
)
|
|||||
Less: mitigation payments and acquisition costs classified as financing activities
|
|
—
|
|
|
—
|
|
|
(1,096
|
)
|
|
—
|
|
|
(1,096
|
)
|
|||||
Free cash flow
|
|
$
|
123,199
|
|
|
$
|
36,750
|
|
|
$
|
4,345
|
|
|
$
|
(81,975
|
)
|
|
$
|
82,319
|
|
•
|
Coal Royalty and Other segment DCF and FCF
increased
$11.4 million
and
$11.5 million
, respectively, as a result of the timing of cash receipts from both coal royalty production and minimums and property tax reimbursements.
|
•
|
Construction Aggregates segment DCF and FCF
decreased
$0.8 million
and
$4.5 million
, respectively, primarily due to the timing of certain operating payments. The decrease in FCF was impacted by increased expansion capital expenditures as a result of a new project that began in 2018.
|
•
|
Corporate and Financing DCF and FCF
increased
$13.0 million
primarily as a result of lower G&A payments and lower cash paid for interest year-over-year.
|
(In thousands)
|
September 30, 2018
|
|
December 31, 2017
|
||||
Current portion of long-term debt, net
|
$
|
75,201
|
|
|
$
|
79,740
|
|
Long-term debt, net
|
716,514
|
|
|
729,608
|
|
||
Total debt, net
|
$
|
791,715
|
|
|
$
|
809,348
|
|
|
NATURAL RESOURCE PARTNERS L.P.
|
||
|
By:
|
|
NRP (GP) LP, its general partner
|
|
By:
|
|
GP NATURAL RESOURCE
|
|
|
|
PARTNERS LLC, its general partner
|
|
|
|
|
Date: November 9, 2018
|
|
|
|
|
By:
|
|
/s/ CORBIN J. ROBERTSON, JR.
|
|
|
|
Corbin J. Robertson, Jr.
|
|
|
|
Chairman of the Board and
|
|
|
|
Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
Date: November 9, 2018
|
|
|
|
|
By:
|
|
/s/ CHRISTOPHER J. ZOLAS
|
|
|
|
Christopher J. Zolas
|
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Date: November 9, 2018
|
|
|
|
|
By:
|
|
/s/ JENNIFER L. ODINET
|
|
|
|
Jennifer L. Odinet
|
|
|
|
Chief Accounting Officer
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
1 Year Natural Resource Partners Chart |
1 Month Natural Resource Partners Chart |
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