NATURAL RESOURCE PARTNERS L.P. BB&T COAL CONFERENCE August 12, 2015 St. Louis, MO
OVERVIEW 3
NRP OVERVIEW Natural Resource Partners L.P. (NRP) is a master limited partnership based in Houston, Texas A diversified natural resource company with interests in coal, aggregates, oil and gas, and industrial minerals across the…
A DIVERSIFIED NATURAL RESOURCES COMPANY Coal reserves in four coal producing basins, with 46% of coal revenues from low-cost Illinois Basin1 Royalty-based business model: Lease reserves to experienced operators under long-term Coal &…
STRATEGIC PLAN - GOALS AND OBJECTIVES Aggressively manage balance sheet to ensure financial strength and flexibility 75% cut in unitholder distributions commencing May 2015 enhance liquidity - Completed Focus on reducing leverage…
COAL
CURRENT COAL MARKET North American thermal coal industry in midst of long-term secular decline (thermal coal accounted for 72% of NRP coal related revenues and 32% of NRPs total revenues during first six months 2015) Increasingly…
NRPS COAL BUSINESS WELL SUITED FOR MARKET 192- 205 million Coal Related Revenues projected for 2015(1) As royalty owner, no direct exposure to many issues plaguing coal operators Labor, pension liabilities, environmental…
COAL INDUSTRY CONCERNS / IMPACTS ON NRP Bankruptcies of lessees NRP has historically had leases assumed or assigned in the bankruptcy process Patriot I and James River Currently Alpha, Walter, Xinergy and Patriot (again) are in…
ALPHA BANKRUPTCY IMPACT ON NRP In second quarter, Alpha accounted for 6.5% of NRPs total revenues Alpha was current on NRP royalties when they filed for bankruptcy Only pre-petition receivable was July production of 2.5 mm that would…
AGGREGATES & SODA ASH
AGGREGATES MARKET Aggregates used primarily in asphalt and concrete Demand for aggregates is driven by construction spending, which is tied to GDP and population growth U.S. aggregates production and spending levels are…
NRPS AGGREGATES BUSINESS Laurel Aggregates Morgantown, WV 2015 Projections (1) 152 168 million Aggregates Revenues Serves the energy and construction industries in southwestern PA, northern WV and eastern OH Direct sales from Lake…
NRPS SODA ASH BUSINESS Steady Free Cash Flow, Significant Growth Potential and Extensive Reserve Life Green River Basin has the worlds largest deposit of OCI Wyoming LLC Soda Ash Operation natural trona and supplies over 90% of the…
OIL & GAS
NRPS OIL AND GAS BUSINESS 52 61 million Oil & Gas Revenues projected for 2015 (1) Diversified Fee Minerals, Royalties & ORRIs projected to be 8% of 2015 oil and gas revenues(1) 260,000 leased net mineral and ORRI acres primarily in…
NRP A DIVERSIFIED NATURAL RESOURCE COMPANY Diversified natural resource company with interests in long-lived oil and gas, coal, aggregates and industrial minerals across the United States Currently focused on improving the balance…
APPENDIX
ADJUSTED EBITDA RECONCILIATION LTM (millions of dollars) 6/30/2015 Net income 95 (-) equity and other unconsolidated investment income (46) (-) reserve swap (15) (-) less income to non-controlling interest (1) (+)…
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