NATURAL RESOURCE PARTNERS L.P. TUDOR, PICKERING, HOLT & CO 2014 ROYALTY CONFERENCE Houston, TX November 18, 2014
NRP - A DIVERSIFIED NATURAL RESOURCE COMPANY NRP is a diversified natural resource MLP and the first royalty-based MLP Founded as a coal royalty company, but now own minerals and royalties in oil and gas, frac sand and aggregates in…
NRP BUSINESS Overview of NRP Revenues from NRPs Assets (2013) Own, manage and lease mineral properties across the U.S. 2.3 billion tons of coal reserves in three major coal producing basins 795 million tons of aggregate…
BENEFITS OF ROYALTY ASSETS Limited to no exposure to operating costs and no capital costs Limited direct exposure to environmental, permitting and labor risks drive margins and lowers risk Minimized Expenses Minimized Operating…
LEADING EBITDA MARGINS New acquisitions add substantial revenues at strong margins though lower than traditional royalty business 87% 88% 100% 80% 400 75% 300 50% 200 100 25% 0 0% 2012 2013 2014E Revenues EBITDA Margin…
OVERVIEW OF NRPS OIL AND GAS BUSINESS Producing positions in multiple growth basins Interest in 1,500 oil and gas wells Invested 470 million since 2011 to acquire mineral, royalty, ORRI and non-operated assets Production and…
GROWING INVESTMENT IN AGGREGATES AND INDUSTRIAL MINERALS BUSINESS 795 million tons of aggregates in 17 states for NRP, including 295 million tons acquired in VantaCore transaction 15% of LTM 3Q2014 total revenues, but growing 54.3…
OVERVIEW OF NRPS COAL BUSINESS 5th largest owner of coal reserves in the U.S. 2.3 billion tons Strategically located in Appalachia, Illinois Basin, Western U.S. Stable production with potential for increased production from…
INCREASINGLY DIVERSE STREAM OF CASH FLOWS In 2012, coal related business, with a significant concentration in Appalachia, drove 94% of EBITDA(1) As a result of diversification strategy, the EBITDA(1) contribution from non-coal…
BUSINESS STRATEGY DRIVING CASH FLOW GENERATION STRATEGY COMMENT 1 Continue to Diversify Further pursue mineral, geographic and operational diversification Business through Trona / soda ash, oil and gas and aggregates / Accretive…
KEY INVESTMENT HIGHLIGHTS 1 Diverse and strategically located natural resource base provides cash flow stability through market cycles 2 Disciplined acquisition strategy provides diversified reserves and growth potential 3 Limited…
APPENDIX
HISTORICAL EBITDA RECONCILIATION (in thousands) LTM 3Q2014 Net income 147,166 Interest expense 77,536 DD&A 63,970 Impairments 5,624 DD&A, Interest and Taxes from OCI 20,000 EBITDA 314,296 Revenues 357,223 EBITDA Margin 88% 16
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