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DISCLAIMER: The guidance provided below by Natural Resource Partners does not contain historical facts but consists of forward-looking statements. Although NRP believes that the assumptions underlying this guidance are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect NRP's business prospects and performance, causing actual results to differ from those shown above.

Such risks and uncertainties include, by way of example and not of limitation: general business and economic conditions; decreases in demand for coal; changes in our lessees' operating conditions and costs; changes in the level of costs related to environmental protection and operational safety; unanticipated geologic problems; problems related to force majeure; potential labor relations problems; changes in the legislative or regulatory environment; and lessee production cuts.

These and other applicable risks and uncertainties have been described more fully in NRP's Annual Report on Form 10-K. NRP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.

 

Natural Resource Partners L.P.
Initial Guidance Dated February 13, 2012
(dollars and tons in millions except per unit amounts)

   
 

2013 Guidance
(Range)
(in millions except per unit)

Coal royalty revenues  

210.0

   

235.0

Coal production tonnage (mm tons)  

48.0

   

56.0

   

 

    

 

Total revenues  

330.0

   

375.0

   

 

    

 

Distributable cash flow (1)  

 250.0

   

280.0

           
Net income per unit  

1.60

   

1.80

           
Average units outstanding  

 109.6

   

 109.6

(1) Distributable cash flow represents net income plus depletion, depreciation and amortization, plus minimums to be received in excess of revenues of $22 million, plus principal payments received on Sugar Camp of $3 million, less other adjustments to cash for known differences between the income statement and cash of $2 million.   NRP has historically reduced its distributable cash flow by the amount of cash it has reserved for principal payments due on its senior notes in the next calendar year.  However, to present its distributable cash flow more in line with MLP practice and because it intends to refinance some or all of the principal payments that are due in 2013 and 2014, it is no longer going to reduce distributable cash flow by reserves for future principal payments.  This change in NRP's reporting of distributable cash flow does not change its long-term intention to pay down its debt.

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 cash flows from operating, investing or financing activities. A reconciliation of distributable cash flow to net cash provided by operating activities is included in the tables attached to this release.  Distributable cash flow may not be calculated the same for NRP as other companies.