NPR(NRP) - 2021 Q3 - Quarterly Report

Financial Performance - For the nine months ended September 30, 2021, total revenues and other income were $132.5 million, with coal royalty and other segment contributing$121.2 million and soda ash segment contributing $11.2 million[109]. - The net income for the same period was$53.3 million, with coal royalty and other segment generating $83.0 million and soda ash segment generating$11.1 million, while corporate and financing incurred a loss of $40.8 million[109]. - Adjusted EBITDA for the nine months ended September 30, 2021, was$94.5 million, with coal royalty and other segment contributing $102.3 million and soda ash segment contributing$3.8 million[109]. - Total revenues for the third quarter of 2021 reached $56.8 million, a 90$29.9 million in the same quarter of 2020[122]. - Adjusted EBITDA rose to $37.7 million, up$19.2 million from $18.5 million in the prior year quarter, primarily due to higher revenues in the Coal Royalty and Other segment[130]. - Total revenues for the first nine months of 2021 reached$132,456 thousand, a 31% increase from $101,155 thousand in the same period of 2020[134]. - Coal royalty revenues increased by$25.5 million, or 63%, to $66,095 thousand in the first nine months of 2021, attributed to increased demand for metallurgical and thermal coals[139]. Cash Flow and Liquidity - Free cash flow generated during the nine months ended September 30, 2021, was$67.3 million, with liquidity at $219.0 million, consisting of$119.0 million in cash and cash equivalents and $100.0 million in borrowing capacity[111]. - Net cash provided by operating activities for continuing operations was$30,059 thousand for Q3 2021, an increase from $24,323 thousand in Q3 2020, reflecting a year-over-year growth of 23.4$6.0 million to $30,673 thousand in Q3 2021, while free cash flow (FCF) rose by$5.9 million to $30,599 thousand, primarily driven by stronger metallurgical coal demand and pricing[133]. - For the nine months ended September 30, 2021, the total Distributable Cash Flow (DCF) was$68.514 million, a decrease of $7.8 million compared to the same period in 2020[146]. - Free Cash Flow (FCF) for the nine months ended September 30, 2021, was$67.265 million, down $7.6 million from the prior year[146]. - Cash flows provided by operating activities decreased by$9.5 million, from $76.1 million in 2020 to$66.6 million in 2021, primarily due to lower cash distributions from Ciner Wyoming[150]. - As of September 30, 2021, total liquidity was $219.0 million, consisting of$119.0 million in cash and cash equivalents and $100.0 million in borrowing capacity[149]. Coal Sales and Revenue - Lessees sold 21.1 million tons of coal from the company's properties in the first nine months of 2021, with approximately 60$21.8 million year-over-year, driven by a 120% increase in coal sales volumes to 8,012 tons[127]. - Coal sales volumes surged by 75% to 21,120 tons in the first nine months of 2021, compared to 12,052 tons in the same period of 2020[137]. - The Illinois Basin saw a 255% increase in coal sales volumes, resulting in a $5.0 million increase in coal royalty revenues[128]. - Approximately 65$32.4 million in coal royalty revenues after adjustments, a 206% increase from $10.6 million in the prior year[128]. - Coal royalty revenue per ton in the Northern Appalachia region increased by 135$7.18, contributing to a significant rise in overall coal royalty revenues[125]. - Coal royalty revenue per ton in the Northern Appalachia region increased by 151% to $5.57 in 2021, compared to$2.22 in 2020[137]. - The Illinois Basin saw a remarkable 334% increase in coal sales volumes, reaching 7,987 tons in the first nine months of 2021[137]. Operational Adjustments and Future Outlook - Ciner Wyoming has reprioritized capital expenditures due to the COVID-19 pandemic's impact, focusing on financial and liquidity flexibility until market conditions stabilize[121]. - Future outlook indicates continued demand for both metallurgical and thermal coals, supporting revenue growth in upcoming quarters[127]. - The company executed a project to sell 1.1 million forest carbon offset credits for $13.8 million, representing 1.1 million tonnes of carbon sequestered from approximately 39,000 acres of forest assets[107]. Debt and Financing - The consolidated leverage ratio decreased to 3.8x as of September 30, 2021, with expectations to drop below 3.75x by December 31, 2021, allowing for potential redemption of paid-in-kind preferred units[112]. - The company had total debt of$453.519 million as of September 30, 2021, down from $471.499 million at the end of 2020[152]. - Cash flows used in financing activities decreased by$10.4 million, from $59.7 million in 2020 to$49.3 million in 2021, primarily due to a decrease in cash distributions to preferred unitholders[151]. - The Corporate and Financing segment saw an increase in DCF and FCF by $1.6 million due to lower cash paid for interest as debt balances declined[147]. - The Coal Royalty and Other segment experienced an increase in DCF and FCF by$0.8 million and $1.0 million, respectively, due to rebounding coal demand[147]. - The company is in compliance with the terms of its financial covenants contained in its debt agreements[152].