Natural Resource Partners L.P. Announces 2016 Second Quarter Results

HOUSTON, Aug. 4, 2016

"Our second quarter results were positively impacted by the proactive management of our coal assets, as we were able to reduce our liabilities for deferred revenue by $35.5 million and recognize a corresponding amount of revenue through negotiated forfeitures by several of our lessees of rights to recoup previously paid minimum royalties," said Wyatt Hogan, President and Chief Operating Officer.  "Our aggregates and soda ash businesses continue to provide stability and diversification to our asset base and, while the coal markets are still quite challenging, we are starting to see some initial signs of firming thermal and metallurgical coal prices.  In addition, with the closing of our oil and gas sale in July, we were able to generate an additional $116.1 million in cash proceeds to be directed towards our deleveraging objectives.  We have made substantial progress in this regard, and continue to be focused on right-sizing our balance sheet through cost management and additional asset sales with an eye towards the ultimate refinancing of our 2018 debt maturities."

NRP has recently taken the following steps to achieve the financial objectives outlined in the April 2015 strategic plan:

• reduced debt by $88.5 million (including discontinued operations) in the first six months of 2016, including $37.3 million in the second quarter of 2016; 
• closed the sale of NRP Oil and Gas' non-operated working interest for $116.1 million in July 2016, and repaid the $75 million NRP Oil and Gas Revolving Credit Facility in full;
• total debt reduction for 2015 and 2016 to date is nearly $255 million (including discontinued operations); and
• amended and extended the NRP (Operating) credit facility maturity to June 30, 2018.

At June 30, 2016, NRP had $21.4 million of cash liquidity.

Business Results and Outlook

The table below presents NRP's business results by segment for the three months ended June 30, 2016 and 2015: