Natural Resource Partners Lp Limited Partnership · NYSE:NRP
Natural Resource Partners Lp Limited Partnership — Natural Resource Partners — Q2 2023 Earnings Presentation
22 slides from Natural Resource Partners Lp Limited Partnership's earnings presentation, Aug 4, 2023
Slide 1: Investor Presentation - Natural Resource Partners L.P.
August 2023 Ey F; a4 ES Investor Presentation Natural Resource Partners L.P.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Natural Resource Part
Slide 3: Management Philosophy
Management Philosophy « We believe that as your partner, management's economic interests should be aligned with unitholders ~ Every member of the executive team has a meaningful portion of their net worth invested in NRP —NRP executives and board of directors own more than 28% of the Partnership's o
Slide 4: NRP's Business - What We Own
NRP'’s Business - What We Own « NRP owns approximately 13 million acres of mineral interests and other property rights across the United States, including 3.5 million acres of underground pore space for the sequestration of carbon dioxide (CO,) -If combined in a single tract, our ownership would cov
Slide 5: NRP's Business - What We Do Not Do
NRP'’s Business - What We Do Not Do « We do not conduct “operations” on any of our assets or directly engage in any type of industrial activity; instead, we lease our mineral and other rights to companies that conduct operations on our properties in exchange for paying royalties and other fees to us
Slide 6: NRP's Asset Ownership
NRP’s Asset Ownership * NRP headquarters in Houston, Texas and Huntington, West Virginia @ Sisecam Wyoming, LLC @ NAP Ownership naeE ©2023 Natural Resource Partners, LP.
Slide 7: Strategy
Strategy « 2015 marked a watershed event in the history of the Partnership - Falling commodity prices and high debt levels pushed our financial capacity to the brink —We had almost $1.5 billion of debt, representing more than two-thirds of our capital structure — Our bonds were trading at 65 cents o
Slide 8: Strategy (continued)
Strategy (continued) « Today, the Partnership is dramatically healthier and financially stronger - Operating and interest expenses are each more than 70% lower than they were when we began — Free Cash Flow, which had been negative, exceeded $300 million over the last twelve months as of June 30, 202
Slide 9: NRP's Committed To Eliminating Outstanding Obligations
NRP's Committed To Eliminating Outstanding Obligations (Sin millions) $1,600 $1,400 $1,200 $1,000 $800 Warrants f $600 $400 $200 $o 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q22023 Note: as of December 31, unless otherwise noted nae ©2023 Natural Resource Partners, LP. 9
Slide 10: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow (S in millions) $350 $300 $250 $200 $144 $158 150 $ $121 $100 . a $0 2015 2016 2017 2018") Note: as of December 31, unless otherwise noted (1) Excludes one-time $25 million Hillsboro litigation settlement rte ©2023 Natural Resource Partners, LP. $139 2
Slide 11: NRP Financial Overview
NRP Financial Overview LTM as of June 30, 2023 ($ in millions) Business Segment Mineral Rights Soda Ash Corporate Financing Costs® Corporate G&A Costs?) NRP Consolidated Note: May not foot due to rounding ® Non-GAAP financial measure; See appendix for reconciliations Net Income $256 76 (22) (24) $28
Slide 12: Mineral Rights Segment Overview
Mineral Rights Segment Overview - NRP owns, manages, and leases mineral properties in the United States including interests in coal, industrial minerals, and other natural resources, as well as rights to sequester carbon dioxide underground and in standing forests and opportunities for renewable ene
Slide 13: Mineral Rights Segment Overview (continued)
Mineral Rights Segment Overview (continued) « Mineral Rights Segment generated $276 million of Free Cash Flow“) over the Last Twelve Months as of June 30, 2023 — Approximately 70% of coal royalty revenues were derived from metallurgical coal =Metallurgical coal is essential in the steel making proce
Slide 14: Northern Powder River Basin 2022 Tons Sold
Northern Powder River Basin Northern Appalachia 2022 Tons 4.3 mm tons 2022 Tons 1.7 mm tons Sold Sold 2022 Royalty ~5% 2022 Royalty ~10% Revenues Revenues Coal Type Metallurgical / Coal Type Thermal Thermal Key Lessees Alliance Key Lessees Western Energy Resource Partners Illinois Basin Central Appa
Slide 15: Carbon Neutral Initiatives
Carbon Neutral Initiatives We do not plan to develop or operate any carbon sequestration energy projects ourselves but rather lease our acreage to companies that will conduct those operations in exchange for payment of royalties and other fees to us Subsurface carbon dioxide (CO,) sequestration —NRP
Slide 16: Carbon Neutral Initiatives (continued)
Carbon Neutral Initiatives (continued) - Renewable energy production — Significant portions of NRP’s vast ownership footprint possess the geologic characteristics and geographical locations necessary for renewable energy developments such as geothermal, solar, and wind —In 2022, NRP executed its fir
Slide 17: Soda Ash Segment Overview
Soda Ash Segment Overview - NRP owns a 49% equity interest in Sisecam Wyoming, LLC, a trona mine and soda ash production facility in the Green River Basin, Wyoming —NRP receives distributions from Sisecam Wyoming which are reported as Free Cash Flow —NRP received $64 million in distributions over th
Slide 18: Soda Ash Segment Overview (continued)
Soda Ash Segment Overview (continued) « Green River Basin in Wyoming is the largest natural trona deposit in the world — Natural deposits are found in the United States (Wyoming and California), Turkey, and China - After trona is mined from the ground, it is heated, liquified and processed into natu
Slide 19: Capital Structure
Capital Structure Total Capital ¢ in mitions) Debt (6/30/23) Preferred Equity (8/8/23) Common Equity (6/30/23) Total Capital $183 87 500 $770 nae ©2023 Natural Resource Partners, LP.
Slide 20: Appendix
Appendix Hebe ©2023 Natural Resource Partners, LP.
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations ve ze ©2023 Natural Resource Partners, LP. 21
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations “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 receiv
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