NAPTP 2014 Master Limited Partnership Investor Conference May 22, 2014
NRP: A Diversified Resource Company 3
NRPs Diversified Revenue Stream Revenues have more than doubled since 2005 Revenues from sources other than coal related revenues Other 19 Oil & Gas Only 6% in 2005 25 Met Coal 6% 84 28% in LTM 1Q2014 7% 35% in 1Q2014…
Goal Grow Distributions on a Sustainable Basis Strategy Comment 1 Continue to Diversify Further pursue both geographic as well as mineral diversification Business through Trona, oil and gas, frac sand provide Accretive Acquisitions…
Financial Strategy leads to Improving Statistics 1Q2014 - 349 million Liquidity Allows NRP to continue to focus on diversified acquisitions ATM Equity Expect to raise approximately 20 million in 2014 under the At- Program the-Market…
Growing Investment in Aggregates / Industrial Minerals Business 500 million tons of aggregates in 13 states for NRP 15% of LTM 1Q2014 total revenues, but growing 50.6 million in revenues primarily derived from soda ash business 24%…
Diversification into Trona/Soda Ash Operations OCI Wyoming Overview U.S. Soda Ash Industry Dynamics OCI Wyoming produces trona and refines 2013 Consumers of Soda Ash into soda ash in Green River Basin of Flue Gas Distributors…
Oil and Gas Revenues Expected to Double in 2014 Own, manage and lease oil and gas mineral Oil and Gas Revenues from NRPs Assets properties in the U.S. Over 261,000 net leased oil, gas and CBM acres More than 1,300 producing wells…
Oil Prices Remain Above 100/Barrel WTI prices remain strong (+100/bbl) N. American crude prices disconnected U. S. WTI Crude Oil Prices ( 2000 Present) from their global counterparts high PADD 3 inventories lack of refinery capacity…
Gas Market Strong Due to Low Storage Levels U. S. Natural Gas Inventories (2000 Present) Storage near a 10 yr. low with current inventory at a 984 Bcf deficit compared with the 5 year average Storage demand keeping prices elevated…
Overview of NRPs Coal Business Diversified platform across the coal industry 5th largest owner of coal reserves in the U.S. 2.3 billion tons Strategically located in Appalachia, Illinois Basin, Western U.S., Gulf Coast Since 2005…
NRPs Illinois Basin Strategy NRPs ILB Strategy U.S. Thermal Coal Production Outlook Illinois Basin coal is well situated to increase market (millions of tons) 51% 199 share as Appalachia declines and export demand rises ILB 132…
Steam Coal Market is Improving Steam U. S. Utility Coal Inventories (2000 - Present) Coldest winter in many years creating additional demand 92% of increased demand provided by coal plants Coal inventories at power plants at…
Metallurgical Coal Market Needs time to recover Metallurgical Prices at lowest level in several years Market is currently being overproduced Australian coal is more competitive in global market due to currency exchange rates…
Potential Upside From Existing Coal Assets NRP (in millions) 400 56 In the last 2 years, coal related revenues 350 54 have declined 80 million (25%) 300 52 Expect an additional 40 mm decline in 250 50 2014 200 48 150 Much of…
NRP - Key Investment Considerations Large, diverse and strategically located natural resource base More than 11 million mineral acres Coal, trona, oil and gas, aggregates, frac sand and other industrial minerals Disciplined…
Appendix 18
Business Overview 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 500 million tons of aggregate…
EBITDDA Reconciliation (in thousands) 12/31/13 Net income 172,078 Interest expense 64,396 DD&A 64,377 Impairments 734 DD&A from OCI 15,072 EBITDDA 316,657 Revenues 358,117 EBITDDA Margin 88.4% 20
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