| |
Guidance
|
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 2007 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.
Guidance
(dollars and tons in millions except per unit amounts)
| |
Full Year 2008
(Range) |
| Regional Statistics |
|
|
|
|
|
| Coal royalty production (tons) |
|
|
|
|
|
| Northern Appalachia |
|
5.5 |
|
|
6.5 |
| Central Appalachia |
|
36.0 |
|
|
38.5 |
| Southern Appalachia |
|
3.8 |
|
|
4.3 |
| Appalachia |
|
45.3 |
|
|
49.3 |
| Illinois Basin |
|
7.3 |
|
|
8.3 |
| Northern Powder River Basin |
|
6.0 |
|
|
7.0 |
| Total |
|
58.6 |
|
|
64.6 |
| |
|
|
|
|
|
| Coal royalty revenues |
|
|
|
|
|
| Northern Appalachia |
$ |
16.0 |
|
$ |
18.0 |
| Central Appalachia |
|
153.0 |
|
|
160.0 |
| Southern Appalachia |
|
17.0 |
|
|
18.0 |
| Appalachia |
$ |
186.0 |
|
$ |
196.0 |
| Illinois Basin |
|
19.5 |
|
|
21.0 |
| Northern Powder River Basin |
|
11.4 |
|
|
12.9 |
| Total |
$ |
216.9 |
|
$ |
229.9 |
|
|
|
|
|
|
| Average coal royalty revenue per ton |
|
|
|
|
|
| Northern Appalachia |
$ |
2.77 |
|
$ |
2.91 |
| Central Appalachia |
$ |
4.16 |
|
$ |
4.25 |
| Southern Appalachia |
$ |
4.19 |
|
$ |
4.47 |
| Appalachia |
$ |
3.98 |
|
$ |
4.11 |
| Illinois Basin |
|
2.53 |
|
|
2.67 |
| Northern Powder River Basin |
|
1.84 |
|
|
1.90 |
| Total |
$ |
3.56 |
|
$ |
3.70 |
| |
|
|
|
|
|
| Aggregates |
|
|
|
|
|
| Royalty revenues |
$ |
6.0 |
|
$ |
7.0 |
| Aggregate bonus royalty |
|
2.5 |
|
|
3.0 |
| Production (tons) |
|
4.8 |
|
|
5.2 |
| Average royalty revenue per ton |
$ |
1.25 |
|
$ |
1.35 |
| |
|
|
|
|
|
| Revenues |
|
|
|
|
|
| Coal royalty revenues |
$ |
216.9 |
|
$ |
229.9 |
| Aggregate revenues |
$ |
8.5 |
|
$ |
10.0 |
| Override royalties |
$ |
10.0 |
|
$ |
11.2 |
| Oil and gas royallties |
$ |
5.3 |
|
$ |
6.5 |
| Coal processing fees |
$ |
8.0 |
|
$ |
10.0 |
| Coal transportation fees |
$ |
11.0 |
|
$ |
13.0 |
| Property taxes |
$ |
9.5 |
|
$ |
11.0 |
| Other revenues (1) |
|
4.0 |
|
|
5.0 |
| Total Revenues |
$ |
273.2 |
|
$ |
296.6 |
| |
|
|
|
|
|
| Expenses |
|
|
|
|
|
| Depreciation, depletion and amortization |
$ |
62.0 |
|
$ |
66.3 |
| General and admistrative |
|
21.0 |
|
|
23.0 |
| Property, franchise and other taxes |
|
14.0 |
|
|
15.5 |
| Coal transportation expenses |
|
1.3 |
|
|
1.5 |
| Coal royalty and override payments |
|
1.0 |
|
|
1.5 |
| Total operating expenses |
$ |
99.3 |
|
$ |
107.8 |
| |
|
|
|
|
|
| Interest expense (net) |
$ |
26.0 |
|
$ |
28.0 |
| |
|
|
|
|
|
| Net Income |
$ |
147.9 |
|
$ |
160.8 |
| |
|
|
|
|
|
| Net income per unit |
$ |
1.70 |
|
$ |
1.85 |
| |
|
|
|
|
|
| Principal payments |
$ |
17.2 |
|
$ |
17.2 |
| |
|
|
|
|
|
| Distributable cash flow (2) |
$ |
192.7 |
|
$ |
209.9 |
(1) Other revenues consist of minimums recognized as revenue, wheelage, rentals and timber.
(2) Distributable cash flow represents net income plus depreciation, depletion and amortization minus scheduled and reserved for principal payments on NRP senior notes. 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. We believe that "net cash provided by operating activities" would be the most comparable financial measure to distributable cash. However, due to the substantial uncertainties associated with forecasting future changes to operating assets and liabilities, we cannot provide guidance on forward-looking net cash provided by operating activities or provide reconciliations of distributable cash flow to that measure.
|
|
|
