Natural Resource Partners Lp Limited Partnership · NYSE:NRP
Natural Resource Partners Lp Limited Partnership — Natural Resource Partners — 2019 Seaport Global Coal Conference
12 slides from Natural Resource Partners Lp Limited Partnership's conference presentation, Aug 20, 2019
Slide 1: 2019 Seaport Global Coal Conference
NATURAL RESOURCE PARTNERS L.P. 2019 SEAPORT GLOBAL COAL CONFERENCE August 2019
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 NRP expects, believes
Slide 3: NRP Business Overview
NRP BUSINESS OVERVIEW NRP is a natural resource company with interests in coal and soda ash • Publicly traded MLP Last Twelve Months (“LTM”) 6/30/19(3) ($ in millions) – Enterprise value of $1.1 billion(1) – Equity market cap of $337 million(2) Business Net Adjusted Segment Income EBITDA(4) FCF(4) R
Slide 4: Commitment to Capital Discipline / De-Leveraging
COMMITMENT TO CAPITAL DISCIPLINE / DE-LEVERAGING Leverage Ratio 6.0x 5.3x 4.5x 4.0x 3.6x 3.0x 2.6x 2.0x 2015 2016 2017 2018 LTM Q2 2019 2015 2016 2017 2018 YTD 6/30/2019 ✓ Reduced quarterly ✓ Divested Williston Basin ✓ Re-cap transactions: ✓ Divested VantaCore for ✓ Repaid $134 million of distributi
Slide 5: Strengthening the Balance Sheet and Increasing Unitholder Equity
STRENGTHENING THE BALANCE SHEET AND INCREASING UNITHOLDER EQUITY Debt Unitholder Equity ($ in millions) ($ in millions) $1,387 (1) (1) $305 $286 $1,139 $828 $200 $687 $152 $553 $79 12/31/2015 12/31/2016 12/31/2017 12/31/2018 6/30/2019 12/31/2015 12/31/2016 12/31/2017 12/31/2018 YTD 2019 • Repaid ove
Slide 6: Growing Cash Flow Cushion
GROWING CASH FLOW CUSHION Cash Flow Cushion increases as debt and interest expense decline $26.1 $16.1 2015 2016 $9.2 $(8.3) 2017 2018 LTM 6/30/2019 $(29.4) ($ in millions) LTM Cash Flow Cushion ($ in millions) 2015 2016 2017 2018 6/30/2019 Free Cash Flow $144.2 $76.0 $121.3 $183.4 (4) $186.1 Less:
Slide 7: Strategy
STRATEGY • Maximize Free Cash Flow and Return on Capital Employed • Pay down debt with internally generated cash flow • Continue to strengthen balance sheet and maintain strong liquidity • Prioritize use of excess cash flow as follows: 1) Pay down debt and preferred equity 2) Invest in opportunities
Slide 8: Non-GAAP Reconciliations
sore NON-GAAP RECONCILIATIONS
Slide 9: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS "Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment, net income attributable to non-controlling interest and gain on reserve swap; plus total distributions from u
Slide 10: Non-GAAP Reconciliations (Continued)
NON-GAAP RECONCILIATIONS (CONTINUED) “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 con
Slide 11: Non-GAAP Reconciliations (Continued)
NON-GAAP RECONCILIATIONS (CONTINUED) "Return on capital employed" or "ROCE" is a non-GAAP financial measure that we define as Net income from continuing operations plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinue
Slide 12: Non-GAAP Reconciliations (Continued)
NON-GAAP RECONCILIATIONS (CONTINUED) "Cash flow cushion" is a non-GAAP financial measure that we define as Free cash flow less one-time beneficial items, mandatory Opco debt payments, preferred unit distributions and common unit distributions. Cash flow cushion is not a measure of financial performa
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