|View printer-friendly version|
|Natural Resource Partners Declares Fourth Quarter 2013 Cash Distribution and Announces Guidance and Management Outlook for 2014|
NRP believes that the distribution decrease announced today will enable the partnership to reduce its debt while preserving its liquidity to pursue accretive acquisitions. NRP remains committed to its strategy to diversify its asset base and completed over
Affirmation of 2013 Guidance and Discussion of Fourth Quarter 2013 Distribution
Based on preliminary estimates for the quarter ended
"We did not see the recovery in the coal markets that we thought might occur over the course of 2013, but instead the markets weakened," said
Liquidity and Diversification Strategy
"I believe that the Board's decision to reduce the distribution is in the best interest of NRP and its unitholders," said
Following is a table containing NRP's guidance for 2014. As a result of lower expected pricing and production volumes, coal royalty revenues are projected to decrease by
Natural Resource Partners L.P. is a master limited partnership headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is principally engaged in the business of owning and managing mineral reserve properties. NRP owns interests in coal, aggregates and industrial minerals and oil and gas across the United States that generate royalty and other income for the partnership.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. Such statements include statements about 2013 and 2014 guidance and future distribution levels. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership. These risks include, but are not limited to, decreases in demand for coal, hydrocarbons, aggregates and industrial minerals; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; changes in the legislative or regulatory environment and other factors detailed in Natural Resource Partners' Securities and Exchange Commission filings. Natural Resource Partners L.P. has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measure
Forecasted distributable cash flow represents net income plus depreciation, depletion and amortization, the return on direct financing lease and contractual override and minimums anticipated to be received in excess of revenues. Distributable cash flow is a "non-GAAP financial measure" that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP's ability to generate cash flows at a level that can sustain or support an increase in quarterly cash distributions paid to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to net income or cash flows from operating, investing or financing activities. Distributable cash flow may not be calculated the same for NRP as other companies.
Withholding Information for Foreign Investors
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of NRP's distributions to foreign investors as being attributable to income that is effectively connected with a
|Print Page | RSS Feeds | E-mail Alerts | Financial Tear Sheet|