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Guidance
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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 2009 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. |
NRP updated its guidance at the end of the second quarter both increasing and narrowing the ranges. The table below reflects the second quarter guidance. In the third quarter, NRP has continued to see improvements in prices and is now anticipating meeting or exceeding the upper limites of all the ranges except production which is anticipated to be near the middle of the previously announced range. In addition, net income per unit is now anticipated to be in a range of $1.40 to $1.50 per unit, an increase of $0.30 to $0.40 per unit, of which approximately $0.15 to $0.20 is due to the elimination of incentive distribution rights that occured during the third quarter.
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Natural Resource Partners L.P.
Guidance
(dollars and tons in millions except per unit amounts) |
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Full Year 2010
(Range) |
| Coal royalty revenues |
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195.0 |
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210.0 |
| Coal production tonnage (mm tons) |
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42.0 |
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48.0 |
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| Total revenues |
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265.0 |
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295.0 |
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| Distributable cash flow (1) |
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190.0 |
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210.0 |
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| Earnings per unit* |
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1.40 |
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1.50 |
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(1) Distributable cash flow represents net income plus depletion and amortization plus minimums of $37 million expected in 2010, minus principal payments to be paid within the next twelve months 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.
* Updated at the end of third quarter
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