Natural Resource Partners Lp Limited Partnership · NYSE:NRP
Natural Resource Partners Lp Limited Partnership — Natural Resource Partners — 2022 BofA Conference
13 slides from Natural Resource Partners Lp Limited Partnership's conference presentation, Nov 28, 2022
Slide 1: Natural Resource Partners L.P. Investor Presentation
NATURAL RESOURCE PARTNERS L.P. INVESTOR PRESENTATION November 2022
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 press release that address activities, events or developments that the Partnership expe
Slide 3: NRP Business Overview
NRP BUSINESS OVERVIEW NRP is a diversified natural resource company that owns, manages and leases a diversified portfolio of properties in the United States including interests in coal, industrial minerals and other natural resources, as well as rights to conduct carbon sequestration activities • Pu
Slide 4: 2022 Accomplishments
2022 ACCOMPLISHMENTS ✓j Best annual start in history of the Partnership with $199 million of Free Cash Flow generation as of September 30, 2022 ✓j Generated $255 million of Free Cash Flow in the Last Twelve Months(1) ✓j Fully retired 9.125% Notes due 2025, lowering NRP’s pro-forma leverage ratio to
Slide 5: Carbon Neutral Initiatives and Accomplishments
CARBON NEUTRAL INITIATIVES AND ACCOMPLISHMENTS • Forest carbon sequestration – In October of 2021, NRP received and sold 1 million carbon offset credits for $14 million – Carbon offset credits were issued to NRP by California Air Resources Board (CARB) and equate to 1 million metric tons of carbon b
Slide 6: Credit Facility Extension to 2027
CREDIT FACILITY EXTENSION TO 2027 • New five-year, $130 million revolving credit facility maturing August 2027 • In October 2022, NRP drew $70 million on the credit facility to finance the full redemption of the 9.125% Senior Notes due 2025 • NRP remains committed to permanently retiring outstanding
Slide 7: Strong Free Cash Flow Generation Through Market Volatility
STRONG FREE CASH FLOW GENERATION THROUGH MARKET VOLATILITY (1) Free Cash Flow ($ in millions) $300 $255 $250 $200 $158 $144 $139 $150 $121 $123 $100 $89 $76 $50 $0 (2) 2015 2016 2017 2018 2019 2020 2021 LTM 2022 • NRP generated significant free cash flow through the bear markets of 2015 & 2016 and h
Slide 8: Commitment to Deleveraging and Enhancing Unitholder Value
COMMITMENT TO DELEVERAGING AND ENHANCING UNITHOLDER VALUE NRP has repaid $1.2 billion of debt since 2015 $1,600 $1,387 Debt Outstanding ($ in millions) $1,400 $1,200 $1,139 $1,000 $828 $800 $687 $600 $524 $478 $438 $400 (1) $169 $200 $0 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 202
Slide 9: Strategy
STRATEGY • Leverage asset footprint to redefine business as key player in transitional energy economy with minimal capital investment by NRP – Sequestration of CO2 underground and in standing forests – Geothermal, wind, and solar power generation • Maximize Free Cash Flow and Return on Capital Emplo
Slide 10: Non-GAAP Reconciliations
corer NON-GAAP RECONCILIATIONS
Slide 11: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS "Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of deb
Slide 12: 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 13: 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 (loss) plus financing costs (interest expense plus loss on extinguishment of debt) divided by the sum of equity excluding equity of discontinued operations, and de