Natural Resource Partners Lp Limited Partnership · NYSE:NRP
Natural Resource Partners Lp Limited Partnership — Natural Resource Partners — 2020 Citi One-on-One Midstream / Energy Infrastructure Conference
13 slides from Natural Resource Partners Lp Limited Partnership's conference presentation, August 2020
Slide 1: 2020 Citi One-on-One Midstream / Energy Infrastructure Conference
NATURAL RESOURCE PARTNERS L.P. 2020 CITI ONE-ON-ONE MIDSTREAM / ENERGY INFRASTRUCTURE CONFERENCE August 2020
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 natural resource company with interests in coal and soda ash • Publicly traded MLP Last Twelve Months (“LTM”) 6/30/20 – Enterprise value of $885 million(1) ($ in millions) – Preferred equity of $250 million Net Income ROCE Excluding Excluding – Common unitholder equity
Slide 4: COVID-19 Update and Response
COVID-19 UPDATE AND RESPONSE • Employee safety – Our employees have remained safe and healthy throughout the COVID-19 pandemic – Implemented remote work protocols on March 13th and plan to remain working remotely for the foreseeable future • Operations – Partnership is conducting business as usual –
Slide 5: Free Cash Flow Generation Through Market Volatility
FREE CASH FLOW GENERATION THROUGH MARKET VOLATILITY Free Cash Flow ($ in millions) $180 FCF Average $158 $160 $144 $139 $140 $121 $125 $120 $112 $100 $80 $76 $60 $40 $20 $0 (1) 2015 2016 2017 2018 2019 LTM 6/30/2020 • NRP generated Free Cash Flow through the bear markets of 2015 & 2016 and continues
Slide 6: Commitment to Deleveraging and Enhancing Unitholder Value
COMMITMENT TO DELEVERAGING AND ENHANCING UNITHOLDER VALUE NRP repaid over $880 million of debt since 2015 $1,600 Debt Outstanding ($ in millions) $1,387 $1,400 $1,200 $1,139 $1,000 $828 $800 $687 $600 $524 $505 $400 $200 $0 2015 2016 2017 2018 2019 YTD 2020 2015 2016 2017 2018 2019 6/30/2020 ✓ Reduc
Slide 7: Maximizing Cash Flow Cushion
MAXIMIZING CASH FLOW CUSHION Continued focus on maximizing the cash flow remaining after paying our mandatory debt amortizations and distributions to common and preferred unitholders Cash Flow Cushion ($ in millions) $16.1 $17.5 $9.2 $7.8 2015 2016 $(8.3) 2017 2018 2019 LTM 6/30/2020 $(29.4) LTM Cas
Slide 8: Strategy
STRATEGY • Maintain strong liquidity and continue to strengthen balance sheet • Maximize Free Cash Flow and Return on Capital Employed • Use internally generated cash to pay down debt, de-risk the capital structure and increase common unitholder equity • Prioritize use of excess cash flow as follows
Slide 9: Non-GAAP Reconciliations
sore NON-GAAP RECONCILIATIONS
Slide 10: 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 11: 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 12: 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 13: 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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