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 Natural Resource Partners L.P. Announces Fourth Quarter and Year Ended 2017 Results
   Thursday, March 01, 2018 8:00:02 AM ET

--Net income of $30.7 million

--Net income attributable to the common unitholders and general partner of $22.9 million

--Adjusted EBITDA of $59.4 million (1)

--Basic and diluted net income per common unit of $1.84 and $1.26, respectively

--Year Ended 2017 Highlights

--Net income of $88.7 million

--Net income attributable to the common unitholders and general partner of $63.2 million

--Adjusted EBITDA of $231.5 million (1)

--Basic and diluted net income per common unit of $5.06 and $3.96, respectively

--Generated operating cash flow from continuing operations of $127.8 million, up 27% from 2016

--Reduced debt by $311.1 million

Natural Resource Partners L.P. (NRP ) today reported fourth quarter and full year 2017 results.



Craig Nunez, President and Chief Operating Officer, commented: "A successful fourth quarter capped a year of significant achievement for NRP. We continue to generate substantial amounts of cash from operations and our fourth quarter results have considerably improved compared to prior year levels. Compared to the prior quarter, our results reflect improved performances from our Coal Royalty, Soda Ash and Construction Aggregates business segments. In addition, we continue to strengthen our balance sheet and have reduced debt $311.1 million during 2017. We enter 2018 with a stronger balance sheet, lower interest expense and improved operating performance."

At the end of the fourth quarter of 2017, NRP had liquidity of $119.8 million, consisting of $29.8 million in cash and $90.0 million of borrowing capacity available under its credit facility. NRP’s consolidated Debt-to-Adjusted EBITDA ratio at year-end 2017 was 3.6x, down from 4.5x at year-end 2016 and 5.3x at year-end 2015.

NRP continues to focus on reducing its debt while maintaining sufficient liquidity to operate its business. NRP’s goal is to achieve a leverage ratio, defined as Debt-to-Adjusted EBITDA, of less than 3.0x, while maintaining minimum liquidity of $100 million, which may consist of a combination of cash and/or available borrowing capacity.

With respect to the fourth quarter of 2017, NRP paid a cash distribution of $0.45 per common unit and paid a distribution on NRP’s 12.0% Class A Convertible Preferred Units in February 2018. NRP also redeemed all outstanding paid-in-kind Preferred Units in February 2018 at par.

_____________

(1) See "Non-GAAP Financial Measures" and reconciliation tables at the end of this release.

Segment Information

Coal Royalty and Other

Operating income for the quarter was $39.7 million and Adjusted EBITDA was $46.7 million. For the quarter, net cash provided by operating and investing activities were $45.6 million and $0.6 million, respectively, and DCF was $46.1 million. NRP’s Q4 2017 results represent a substantial improvement from Q4 2016 and a modest increase compared to Q3 2017. Adjusted coal royalty and other operating income compared to Q4 2016 increased 34%, DCF adjusted for proceeds from the sale of assets increased 6% and Adjusted EBITDA excluding gains on sale of assets increased 20%. Variances in Q4 2017 compared to Q4 2016 by our major coal producing regions follow:

-- Appalachia: Coal royalty revenue increased $2.9 million in this region primarily as a result of increased metallurgical coal prices and production.

-- Illinois Basin: Lower production in this region led to a $4.1 million decrease in coal royalty revenue, despite increases in thermal coal prices and our royalty revenue per ton in the region. The decreased production in this region was primarily a result of the temporary relocation of certain production off of NRP’s coal reserves. However, this decrease in coal royalty revenue was partially offset by a $3.5 million increase in overriding royalty revenue and wheelage in this region.

-- Northern Powder River Basin: Higher prices and production in this region led to the $1.5 million increase in coal royalty revenue. The higher production was a result of increased mining on our acreage in this region, which has a checkerboard coal reserve ownership pattern.

Operating income for the year was $154.9 million and Adjusted EBITDA was $181.3 million. Net cash provided by operating, investing and financing activities were $166.1 million, $4.2 million and $0.5 million, respectively, and DCF was $170.3 million. Adjusted Coal Royalty and Other Operating Income compared to 2016 increased 40% and DCF adjusted for proceeds from the sale of assets increased 23% and Adjusted EBITDA excluding gains on sale of assets decreased 1%. The decrease in Adjusted EBITDA year-over-year was impacted by $40.5 million of revenue resulting from one-time lease modifications in 2016. Variances in year-ended 2017 compared to year-ended 2016 by our major coal producing regions follow:

-- Appalachia: Coal royalty revenue increased $30.7 million in this region primarily as a result of increased metallurgical coal prices and production.

-- Illinois Basin: Lower production in this region led to a $12.7 million decrease in coal royalty revenue, despite increases in thermal coal prices and our royalty revenue per ton in the region. The decreased production in this region was primarily a result of the temporary relocation of certain production off of NRP’s coal reserves. However, this decrease in coal royalty revenue was partially offset by a $7.5 million increase in overriding royalty revenue and wheelage in this region.

-- Northern Powder River Basin: Higher production in this region led to the $1.0 million increase in coal royalty revenue despite a relatively small decrease in prices year-over-year. The higher production was a result of increased mining on our acreage in this region, which has a checkerboard coal reserve ownership pattern.

Soda Ash

During Q4 2017, international prices for soda ash, particularly in Asia, continued to be strong, and domestic prices improved slightly over 2016. NRP received $12.3 million of cash distributions from its 49% investment in Ciner Wyoming during the period, which was unchanged from the previous quarter and from Q4 2016. NRP’s equity in earnings from Ciner Wyoming of $12.8 million increased 37% in Q4 2017, compared to Q4 2016 due to higher production levels along with higher international prices. The higher production levels were primarily the result of production initiatives that were undertaken earlier in 2017 to improve reliability and increase utilization of production units.

During the year, NRP received $49.0 million in cash distributions from Ciner Wyoming and recorded equity in earnings from Ciner Wyoming of $40.5 million.

Construction Aggregates

Operating income for the quarter was $2.0 million and Adjusted EBITDA was $5.1 million. Performance increased compared to the prior quarter and Q4 2016 as a result of increased production and sales volumes, higher margins on road construction and asphalt paving projects and increased marine terminal activity. For the quarter, net cash provided by (used in) operating, investing and financing activities were $4.0 million, $(0.7) million and $(0.2) million, respectively, and DCF was $3.4 million. DCF increased compared to Q4 2016 and the prior quarter as a result of the improved operating performance.

Operating income for the year was $6.4 million and Adjusted EBITDA was $19.8 million. These amounts improved compared to the prior year primarily due to a higher production and sales of crushed stone, gravel and sand, higher delivery and haul income and increased road construction and asphalt paving projects. Net cash provided by (used in) operating, investing activities and financing activities were $15.7 million. $(6.5) million and $(1.3) million, respectively, and DCF was $10.2 million.

Corporate and Finance

Total costs in Q4 2017 were $23.8 million, which includes $19.2 million of interest expense. While these amounts were in line with the previous quarter, total corporate and financing costs decreased 22% compared to the same period last year due to lower interest expense and the LTIP awards expensed in Q4 2016 in connection with NRP’s recapitalization transactions.

Total costs in 2017 were $112.6, which includes $82.2 million of interest expense, $7.9 million of debt modification expense and $4.1 million loss on extinguishment of debt.

Conference Call

A conference call will be held today at 10:00 a.m. ET. To join the conference call, dial (844) 379-6938 and provide the conference code 55454887. Investors may also listen to the call via the Investor Relations section of the NRP website at www.nrplp.com. Audio replays of the conference call will be available for approximately one week. To access the replay, dial (855) 859-2056 and provide the conference code 55454887 or visit the Investor Relations section of NRP’s website.

Company Profile

Natural Resource Partners L.P., a master limited partnership headquartered in Houston, TX, is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. A large percentage of NRP’s revenues are generated from royalties and other passive income. In addition, NRP owns a construction aggregates company and an equity investment in Ciner Wyoming, a trona/soda ash operation.

For additional information, please contact Kathy H. Roberts at 713-751-7555 or kroberts@nrplp.com. Further information about NRP is available on the partnership’s website at http://www.nrplp.com .

Forward-Looking Statements

This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. 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, commodity prices; decreases in demand for coal, aggregates and industrial minerals, including trona/soda ash; changes in operating conditions and costs; production cuts by our lessees; unanticipated geologic problems; our liquidity, leverage and access to capital and financing sources; 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 Measures

"Distributable Cash Flow" is a non-GAAP financial measure that we define as net cash provided by operating activities of continuing operations plus returns of equity from unconsolidated investment, proceeds from sales of assets, including those included in discontinued operations, and return of long-term contract receivables (including affiliate); less maintenance capital expenditures and distributions to non-controlling interest. DCF 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. DCF may not be calculated the same for us as for other companies. In addition, DCF presented below is not calculated or presented on the same basis as Distributable Cash Flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the Partnership’s ability to make cash distributions to our common and preferred unitholders and our general partner and repay debt.

"Adjusted EBITDA" is a non-GAAP financial measure that we define as net income (loss) from continuing operations less equity earnings from unconsolidated investment and gain on reserve swap; plus distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income (loss), the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco’s debt agreements. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

"Adjusted Net Income" is a non-GAAP financial measure that we define as Net income attributable to common unitholders and general partner plus restructuring transaction expenses that include debt modification expense, loss on extinguishment of debt and restructuring-related incentive compensation expense, asset impairments and income (loss) from discontinued operations; less gain on sale of assets and non-cash revenue associated with lease modifications or terminations. Adjusted net income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted net income is useful in evaluating our financial performance because restructuring transaction expenses are one time charges, gains on asset sales are not related to the operations of our business and asset impairments are non-cash charges. Excluding these from net income allows us to better compare results from ongoing operations period-over-period.

"Adjusted Coal Royalty and Other Operating Income" is a non-GAAP financial measure that we define as Coal royalty and other operating income plus asset impairments; less gains on asset sales and non-cash revenue associated with lease modifications and terminations. Adjusted coal royalty and other operating income should not be considered in isolation or as a substitute for operating income (loss), net income (loss), cash flows provided by operating, investing and financial activities, or other income or cash flow statement data prepared in accordance with GAAP. Our management team believes Adjusted coal royalty and other operating income is useful in evaluating our financial performance because gains on asset sales are not related to the operations of our business and asset impairments and non-cash revenue associated with lease modifications and forfeitures are non-cash charges. Excluding these from Coal royalty and other operating income allows us to better compare results from ongoing operations period-over-period.

-Financial Tables, Reconciliation of Non-GAAP Measures and Recap of Metrics Follow-

 
                                                                                                                                                                                                                        Natural Resource Partners L.P.
                                                                                                                                                                                                                               Financial Tables
 
                                                                                                                                                                                                                Consolidated Statements of Comprehensive Income
                                                                                                                                                                                                                                   Unaudited
                                                                                                                                                                                                                                                           
                                                                                                                                                                                                      Three Months Ended                                                                                                                                                                                        Year Ended
                                                                                                              ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                  December 31,                                                                    September 30,                                                                                                          December 31,
                                                                                                              --------------------------------------------------------------------------------------------------------------------                                          -------------------------------------                                          --------------------------------------------------------------------------------------------------------------------
(In thousands, except per unit data)                                                                                          2017                                     2016                                                                           2017                                                                           2017                                     2016
-------------------------------------------------------------------                                           ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------
Revenues and other income:
   Coal royalty and other                                                                                           $  47,130                                                                      $  28,184                                                                      $  43,508                                                                      $ 158,399                                                                      $ 144,520
   Coal royalty and other--affiliates                                                                         223                                                                         12,414                                                                            335                                                                         23,402                                                                         46,259
   Transportation and processing                                                                                        4,793                                                                 --                                                                          5,570                                                                         14,510                                                                 --
   Transportation and processing--affiliates                                                       --                                                                          3,673                                                                 --                                                                          6,012                                                                         19,336
   Construction aggregates                                                                                             30,571                                                                         27,600                                                                         29,553                                                                        112,970                                                                        103,755
   Road construction and asphalt paving                                                                                 5,324                                                                          5,121                                                                          5,157                                                                         18,411                                                                         17,047
   Equity in earnings of Ciner Wyoming                                                                                 12,781                                                                          9,319                                                                          8,993                                                                         40,457                                                                         40,061
   Gain on asset sales, net                                                                                               280                                                       1,801                                                         171                                                       3,856                                                      29,081  
                                                                                                              ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
      Total revenues and other income                                                                               $ 101,102                                                                      $  88,112                                                                      $  93,287                                                                      $ 378,017                                                                      $ 400,059
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Operating expenses:
   Operating and maintenance expenses                                                                               $  33,893                                                                      $  31,797                                                                      $  32,441                                                                      $ 126,982                                                                      $ 119,621
   Operating and maintenance expenses--affiliates, net                                                      2,606                                                                            977                                                                          2,154                                                                          9,534                                                                         10,925
   Depreciation, depletion and amortization                                                                             8,790                                                                         10,906                                                                          8,306                                                                         34,985                                                                         43,087
   Amortization expense--affiliate                                                                 --                                                                            857                                                                 --                                                                          1,008                                                                          3,185
   General and administrative                                                                                           2,756                                                                          6,303                                                                          2,648                                                                         13,513                                                                         16,979
   General and administrative--affiliates                                                                   1,806                                                                            921                                                                          1,207                                                                          4,989                                                                          3,591
   Asset impairments                                                                                                    1,253                                                       9,245                                              --                                                       3,031                                                      16,926  
                                                                                                              ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
      Total operating expenses                                                                                      $  51,104                                                                      $  61,006                                                                      $  46,756                                                                      $ 194,042                                                                      $ 214,314
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Income from operations                                                                                              $  49,998                                                                      $  27,106                                                                      $  46,531                                                                      $ 183,975                                                                      $ 185,745
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Other income (expense)
   Interest expense                                                                                                 $ (19,304 )                                                                    $ (23,305 )                                                                    $ (20,080 )                                                                    $ (82,902 )                                                                    $ (90,047 )
   Interest expense--affiliate                                                                     --                                                                 --                                                                 --                                                                 --                                                                           (523 )
   Debt modification expense                                                                                   --                                                                 --                                                                 --                                                                         (7,939 )                                                               --
   Loss on extinguishment of debt                                                                              --                                                                 --                                                                 --                                                                         (4,107 )                                                               --
   Interest income                                                                                                         47                                                          10                                                          48                                                         181                                                          39  
                                                                                                              ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
      Other expense, net                                                                                            $ (19,257 )                                                                    $ (23,295 )                                                                    $ (20,032 )                                                                    $ (94,767 )                                                                    $ (90,531 )
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Net income from continuing operations                                                                               $  30,741                                                                      $   3,811                                                                      $  26,499                                                                      $  89,208                                                                      $  95,214
Income (loss) from discontinued operations                                                                                (34 )                                                                         (323 )                                                                         (433 )                                                                         (541 )                                                                        1,678  
                                                                                                              ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Net income                                                                                                          $  30,707                                                                      $   3,488                                                                      $  26,066                                                                      $  88,667                                                                      $  96,892
Less: income attributable to preferred unitholders                                                                     (7,765 )                                                               --                                                      (7,650 )                                                                      (25,453 )                                                               --  
                                                                                                              ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Net income attributable to common unitholders and general partner                                                   $  22,942                                                                      $   3,488                                                                      $  18,416                                                                      $  63,214                                                                      $  96,892
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Net income (loss) attributable to common unitholders                                                                   22,483                                                                          3,497                                                                         18,048                                                                         61,950                                                                         95,229
Net income (loss) attributable to the general partner                                                                     459                                                                             (9 )                                                                          368                                                                          1,264                                                                          1,663
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Income from continuing operations per common unit
   Basic                                                                                                            $    1.84                                                                      $    0.31                                                                      $    1.51                                                                      $    5.11                                                                      $    7.65
   Diluted                                                                                                          $    1.26                                                                      $    0.31                                                                      $    1.08                                                                      $    3.98                                                                      $    7.65
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Net income per common unit
   Basic                                                                                                            $    1.84                                                                      $    0.28                                                                      $    1.48                                                                      $    5.06                                                                      $    7.78
   Diluted                                                                                                          $    1.26                                                                      $    0.28                                                                      $    1.07                                                                      $    3.96                                                                      $    7.78
                                                                                                                                                                                                                                                                                                                                                                                                                                           
Net income                                                                                                          $  30,707                                                                      $   3,488                                                                      $  26,066                                                                      $  88,667                                                                      $  96,892
Add: comprehensive income (loss) from unconsolidated investment and                                                      (234 )                                                                        1,178                                                        (268 )                                                                       (1,647 )                                                                          486  
other
                                                                                                              --------------  --------------------                                           --------------  --------------------                                           --------------  --------------------                                           --------------  --------------------                                           --------------  --------------------
Comprehensive income                                                                                                $  30,473                                                   $   4,666                                                   $  25,798                                                   $  87,020                                                   $  97,378  
                                                                                                              ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
 
                                                                                                                                                                                                                                     Natural Resource Partners L.P.
                                                                                                                                                                                                                                     Financial Tables
 
                                                                                                                                                                                                                                     Consolidated Statements of Cash Flows
                                                                                                                                                                                                                                     Unaudited
                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                              Three Months Ended                                                                                                                                                                                                         Year Ended
                                                                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                      December 31,                                                                               September 30,                                                                                                                    December 31,
                                                                                                                                           ----------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                                                 2017                                            2016                                                                                  2017                                                                                  2017                                            2016
---------------------------------------------------------------------------                                                                -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------
Cash flows from operating activities:
   Net income                                                                                                                                    $         30,707                                                                      $          3,488                                                                      $         26,066                                                                      $         88,667                                                                      $         96,892
   Adjustments to reconcile net income to net cash provided by
   operating activities of continuing operations:
                                                                                                                                                            8,790                                                                                10,906                                                                                 8,306                                                                                34,985                                                                                43,087
      Depreciation, depletion and amortization
      Amortization expense--affiliates                                                                                                 --                                                                                   857                                                                        --                                                                                 1,008                                                                                 3,185
      Return on earnings from unconsolidated investment                                                                                                    12,250                                                                                12,250                                                                                 8,993                                                                                43,354                                                                                46,550
      Equity earnings from unconsolidated investment                                                                                                      (12,781 )                                                                              (9,319 )                                                                              (8,993 )                                                                             (40,457 )                                                                             (40,061 )
      Gain on asset sales, net                                                                                                                               (280 )                                                                              (1,801 )                                                                                (171 )                                                                              (3,856 )                                                                             (29,081 )
      Debt modification expense                                                                                                                    --                                                                        --                                                                        --                                                                                 7,939                                                                        --
      Loss on extinguishment of debt                                                                                                               --                                                                        --                                                                        --                                                                                 4,107                                                                        --
      (Income) loss from discontinued operations                                                                                                               34                                                                                   323                                                                                   433                                                                                   541                                                                                (1,678 )
      Asset impairments                                                                                                                                     1,253                                                                                 9,245                                                                        --                                                                                 3,031                                                                                16,926
      Amortization of debt issuance costs and other                                                                                                         2,546                                                                                 1,590                                                                                 3,037                                                                                 8,005                                                                                 8,284
      Other, net--affiliates                                                                                                                    1,119                                                                                   145                                                                                   200                                                                                 1,207                                                                                   993
   Change in operating assets and liabilities:
      Accounts receivable                                                                                                                                     698                                                                                   772                                                                                 5,210                                                                                 2,305                                                                                   431
      Accounts receivable--affiliates                                                                                                           1,144                                                                                   399                                                                                    49                                                                                   367                                                                                  (313 )
      Accounts payable                                                                                                                                        631                                                                                    72                                                                                   684                                                                                 1,361                                                                                   707
      Accounts payable--affiliates                                                                                                               (107 )                                                                                 110                                                                                  (272 )                                                                                (377 )                                                                                 139
      Accrued liabilities                                                                                                                                  (1,313 )                                                                               6,361                                                                                   173                                                                                (8,443 )                                                                               5,397
      Accrued liabilities--affiliates                                                                                                             515                                                                        --                                                                        --                                                                                   515                                                                        --
      Accrued interest                                                                                                                                      5,217                                                                                (9,030 )                                                                              (8,727 )                                                                                (105 )                                                                                (779 )
      Accrued interest--affiliates                                                                                                     --                                                                        --                                                                        --                                                                        --                                                                                  (456 )
      Deferred revenue                                                                                                                                     (5,786 )                                                                               4,881                                                                                (4,494 )                                                                              (5,791 )                                                                             (35,881 )
      Deferred revenue--affiliates                                                                                                     --                                                                                (3,032 )                                                                      --                                                                               (10,166 )                                                                             (11,222 )
      Other items, net                                                                                                                                      1,807                                                             (2,121 )                                                                              (4,694 )                                                                                (359 )                                                                              (2,477 )
                                                                                                                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
        Net cash provided by operating activities of continuing operations                                                                       $         46,444                                                                      $         26,096                                                                      $         25,800                                                                      $        127,838                                                                      $        100,643
        Net cash provided by (used in) operating activities of discontinued                                                                                   (92 )                                                                                (855 )                                                                                 (76 )                                                                                (699 )                                                                               7,318  
        operations
                                                                                                                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------
        Net cash provided by operating activities                                                                                                $         46,352                                                                      $         25,241                                                                      $         25,724                                                                      $        127,139                                                                      $        107,961
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Cash flows from investing activities:
   Return of equity from unconsolidated investment                                                                                               $ --                                                                      $ --                                                                      $          3,258                                                                      $          5,646                                                                      $ --
   Proceeds from sale of assets                                                                                                                               563                                                                                 7,019                                                                                   151                                                                                 1,982                                                                                62,383
   Return of long-term contract receivables                                                                                                                   399                                                                        --                                                                                   600                                                                                 2,206                                                                        --
   Return of long-term contract receivables--affiliate                                                                                 --                                                                                   391                                                                        --                                                                                   804                                                                                 2,968
   Acquisition of plant and equipment and other                                                                                                            (1,065 )                                                                                (977 )                                                                              (1,238 )                                                                              (7,301 )                                                                              (5,408 )
                                                                                                                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
      Net cash provided by (used in) investing activities of continuing                                                                          $           (103 )                                                                    $          6,433                                                                      $          2,771                                                                      $          3,337                                                                      $         59,943
      operations
      Net cash provided by investing activities of discontinued operations                                                                         --                                                                 51                                                                  4                                                                206                                                            106,872  
                                                                                                                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
      Net cash provided by (used in) investing activities                                                                                        $           (103 )                                                                    $          6,484                                                                      $          2,775                                                                      $          3,543                                                                      $        166,815
 
 
                                                                                                                                                                                                                                     Consolidated Statements of Cash Flows--Continued
                                                                                                                                                                                                                                     Unaudited
                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                              Three Months Ended                                                                                                                                                                                                         Year Ended
                                                                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                      December 31,                                                                                                                     September 30,                                                                                                                    December 31,
                                                                                                                                           ----------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                                                 2017                                                                                  2016                                                                                  2017                                                                                  2017                                                                                  2016
---------------------------------------------------------------------------                                                                -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------
Cash flows from financing activities:
   Proceeds from issuance of Class A Convertible Preferred Units and                                                                             $ --                                                                      $ --                                                                      $ --                                                                      $        242,100                                                                      $ --
   Warrants, net
   Proceeds from issuance of 2022 Senior Notes, net                                                                                                --                                                                        --                                                                        --                                                                               103,688                                                                        --
   Proceeds from loans                                                                                                                                      8,000                                                                        --                                                                                69,000                                                                                77,000                                                                                20,000
   Repayments of loans                                                                                                                                   (136,027 )                                                                             (76,967 )                                                                              (8,000 )                                                                            (492,319 )                                                                            (183,141 )
   Distributions to common unitholders and general partner                                                                                                 (5,617 )                                                                              (5,616 )                                                                              (5,616 )                                                                             (22,467 )                                                                             (22,465 )
   Distributions to preferred unitholders                                                                                                                  (3,825 )                                                                      --                                                                                (3,769 )                                                                              (8,844 )                                                                      --
   Proceeds from (contributions to) discontinued operations                                                                                                   (92 )                                                                                (805 )                                                                                 (72 )                                                                                (493 )                                                                              39,421
   Debt issue costs and other                                                                                                                                (197 )                                                                              (1,162 )                                                                                 347                                                            (40,384 )                                                                             (15,234 )
                                                                                                                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------
      Net cash provided by (used in) financing activities of continuing                                                                          $       (137,758 )                                                                    $        (84,550 )                                                                    $         51,890                                                                      $       (141,719 )                                                                    $       (161,419 )
      operations
      Net cash provided by (used in) financing activities of discontinued                                                                                      92                                                                805                                                                 72                                                                493                                                           (124,759 )
      operations
                                                                                                                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------
      Net cash provided by (used in) financing activities                                                                                        $       (137,666 )                                                                    $        (83,745 )                                                                    $         51,962                                                                      $       (141,226 )                                                                    $       (286,178 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Net increase (decrease) in cash and cash equivalents                                                                                             $        (91,417 )                                                                    $        (52,020 )                                                                    $         80,461                                                                      $        (10,544 )                                                                    $        (11,402 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Cash and cash equivalents of continuing operations at beginning of                                                                               $        121,244                                                                      $         92,391                                                                      $         40,783                                                                      $         40,371                                                                      $         41,204
period
Cash and cash equivalents of discontinued operations at beginning of                                                                               --                                                     --                                                     --                                                     --                                                             10,569  
period
                                                                                                                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------
Cash and cash equivalents at beginning of period                                                                                                 $        121,244                                                                      $         92,391                                                                      $         40,783                                                                      $         40,371                                                                      $         51,773
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Cash and cash equivalents at end of period                                                                                                       $         29,827                                                                      $         40,371                                                                      $        121,244                                                                      $         29,827                                                                      $         40,371
Less: cash and cash equivalents of discontinued operations at end of                                                                               --                                                     --                                                     --                                                     --                                                     --  
period
                                                                                                                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------                                           ---------------------  --------------------
Cash and cash equivalents of continuing operations at end of period                                                                              $         29,827                                                                      $         40,371                                                                      $        121,244                                                                      $         29,827                                                                      $         40,371
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Supplemental cash flow information:
   Cash paid during the period for interest from continuing operations                                                                           $         10,993                                                                      $         29,631                                                                      $         26,977                                                                      $         72,850                                                                      $         84,380
   Cash paid during the period for interest from discontinued operations                                                                         $ --                                                                      $ --                                                                      $ --                                                                      $ --                                                                      $          1,906
Non-cash investing and financing activities:
   Issuance of 2022 Senior Notes in exchange for 2018 Senior Notes                                                                               $ --                                                                      $ --                                                                      $ --                                                                      $        240,638                                                                      $ --
   Plant, equipment and mineral rights funded with accounts payable or                                                                           $            294                                                                      $ --                                                                      $ --                                                                      $            294                                                                      $ --
   accrued liabilities
 
                                                                                                                                     Natural Resource Partners L.P.
                                                                                                                                      Financial Tables (Unaudited)
 
                                                                                                                                       Consolidated Balance Sheets
                                                                                                           December 31,                                    December 31,
(In thousands, except unit data)                                                                                                                                        2017                                                                                                     2016
---------------------------------------------------------------------------------------                                                                ------------------------------------                                                                  -----------------------------------------
ASSETS
Current assets:
   Cash and cash equivalents                                                                                                                                 $    29,827                                                                                           $         40,371
   Accounts receivable, net                                                                                                                                       47,026                                                                                                     43,202
   Accounts receivable--affiliates, net                                                                                                                  161                                                                                                      6,658
   Inventory                                                                                                                                                       7,553                                                                                                      6,893
   Prepaid expenses and other                                                                                                                                      5,838                                                                                                      7,271
   Current assets of discontinued operations                                                                                                                         991                                                                                     991  
                                                                                                                                                       --------------------------------------                                                                -------------------------------------------
      Total current assets                                                                                                                                   $    91,396                                                                                           $        105,386
Land                                                                                                                                                              25,247                                                                                                     25,252
Plant and equipment, net                                                                                                                                          46,170                                                                                                     49,443
Mineral rights, net                                                                                                                                              883,885                                                                                                    908,192
Intangible assets, net                                                                                                                                            49,554                                                                                                      3,236
Intangible assets, net--affiliate                                                                                                             --                                                                                                     49,811
Equity in unconsolidated investment                                                                                                                              245,433                                                                                                    255,901
Long-term contracts receivable                                                                                                                                    40,776                                                                                             --
Long-term contracts receivable--affiliate                                                                                                     --                                                                                                     43,785
Other assets                                                                                                                                                       6,547                                                                                                      6,625
Other assets--affiliate                                                                                                                                  156                                                                                   1,018  
                                                                                                                                                       --------------------------------------                                                                -------------------------------------------
      Total assets                                                                                                                                           $ 1,389,164                                                                        $      1,448,649  
                                                                                                                                                       ======= ========= ====================                                                                ======= ============== ====================
LIABILITIES AND CAPITAL
Current liabilities:
   Accounts payable                                                                                                                                          $     6,957                                                                                           $          6,234
   Accounts payable--affiliates                                                                                                                          562                                                                                                        940
   Accrued liabilities                                                                                                                                            16,890                                                                                                     25,999
   Accrued liabilities--affiliates                                                                                                                       515                                                                                             --
   Accrued interest                                                                                                                                               15,484                                                                                                     15,588
   Current portion of long-term debt, net                                                                                                                         79,740                                                                                                    140,037
   Current liabilities of discontinued operations                                                                                                                    401                                                                                     353  
                                                                                                                                                       --------------------------------------                                                                -------------------------------------------
      Total current liabilities                                                                                                                              $   120,549                                                                                           $        189,151
Deferred revenue                                                                                                                                                 100,605                                                                                                     44,931
Deferred revenue--affiliates                                                                                                                  --                                                                                                     71,632
Long-term debt, net                                                                                                                                              729,608                                                                                                    990,234
Other non-current liabilities                                                                                                                                      2,808                                                                                                      4,565
Other non-current liabilities--affiliate                                                                                                                 346                                                       --  
                                                                                                                                                       --------------------------------------                                           -------------------- -------------------------------------------
      Total liabilities                                                                                                                                      $   953,916                                                                                           $      1,300,513
Commitments and contingencies
Class A Convertible Preferred Units (258,844 units issued and                                                                                                $   173,431                                                                                           $ --
outstanding at $1,000 par value per unit; liquidation preference of
$1,500 per unit)
Partners’ capital:
   Common unitholders’ interest (12,232,006 units issued and                                                                      $   199,851                                                                                           $        152,309
   outstanding)
   General partner’s interest                                                                                                           1,857                                                                                                        887
   Warrant holders interest                                                                                                                                       66,816                                                                                             --
   Accumulated other comprehensive loss                                                                                                                           (3,313 )                                                                                                   (1,666 )
                                                                                                                                                       --------------------------------------                                                                -------------------------------------------
      Total partners’ capital                                                                                                     $   265,211                                                                                           $        151,530
Non-controlling interest                                                                                                                                          (3,394 )                                                                                                   (3,394 )
                                                                                                                                                       --------------------------------------                                                                -------------------------------------------
      Total capital                                                                                                                                              261,817                                                                                 148,136  
                                                                                                                                                       --------------------------------------                                                                -------------------------------------------
         Total liabilities and capital                                                                                                                       $ 1,389,164                                                                        $      1,448,649  
                                                                                                                                                       ======= ========= ====================                                                                ======= ============== ====================
 
                                                                                                                                                                                                                                     Natural Resource Partners L.P.
                                                                                                                                                                                                                                     Financial Tables (Unaudited)
 
The table below presents NRP’s unaudited business results by
segment for the three months ended December 31, 2017 and 2016 and
September 30, 2017, respectively:
                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                Operating Business Segments
                                                                                                                                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                       Coal                                                                                    Construction                                                                           Corporate
                                                                                                                                                      Royalty                                                                                                                                                               Aggregates                                                                               and
                                                                                                                                                     and Other                                                                                                                                                                                                                                                    Financing
(In thousands)
---------------------------------------------------------------------
Three Months Ended December 31, 2017
   Revenues and other income                                                                                                           $         52,146                                                                      $         12,781                                                                   $         35,895                                                                      $ --                                                                     $  100,822
   Gains on asset sales                                                                                                                             178                                                     --                                                             102                                                     --                                                         280  
                                                                                                                                     ---------------------------------------                                           -------------------------------------------                                           ----------------------------------------                                           -------------------------------------------                                           ------------------------------------
   Total revenues and other income                                                                                                     $         52,324                                                                      $         12,781                                                                   $         35,997                                                                      $ --                                                                     $  101,102
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
   Asset impairments                                                                                                                   $          1,189                                                                      $ --                                                                   $             64                                                                      $ --                                                                     $    1,253
   Net income (loss) from continuing operations                                                                                        $         39,729                                                                      $         12,781                                                                   $          1,989                                                                      $        (23,758 )                                                                   $   30,741
   Adjusted EBITDA (1)                                                                                                                 $         46,679                                                                      $         12,250                                                                   $          5,143                                                                      $         (4,696 )                                                                   $   59,376
   Net cash provided by (used in) operating activities of continuing                                                                   $         45,550                                                                      $         12,250                                                                   $          4,010                                                                      $        (15,366 )                                                                   $   46,444
   operations
   Net cash provided by (used in) investing activities of continuing                                                                   $            591                                                                      $ --                                                                   $           (694 )                                                                    $ --                                                                     $     (103 )
   operations
   Net cash provided by financing activities of continuing operations                                                                  $ --                                                                      $ --                                                                   $           (197 )                                                                    $       (137,561 )                                                                   $ (137,758 )
   Distributable Cash Flow (1)                                                                                                         $         46,141                                                                      $         12,250                                                                   $          3,356                                                                      $        (15,366 )                                                                   $   46,381
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Three Months Ended December 31, 2016
   Revenues and other income                                                                                                           $         44,271                                                                      $          9,319                                                                   $         32,721                                                                      $ --                                                                     $   86,311
   Gain on asset sales                                                                                                                            1,798                                                     --                                                               3                                                     --                                                       1,801  
                                                                                                                                     ---------------------------------------                                           -------------------------------------------                                           ----------------------------------------                                           -------------------------------------------                                           ------------------------------------
   Total revenues and other income                                                                                                     $         46,069                                                                      $          9,319                                                                   $         32,724                                                                      $ --                                                                     $   88,112
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
   Asset impairments                                                                                                                   $          8,180                                                                      $ --                                                                   $          1,065                                                                      $ --                                                                     $    9,245
   Net income (loss) from continuing operations                                                                                        $         24,014                                                                      $          9,319                                                                   $            997                                                                      $        (30,519 )                                                                   $    3,811
   Adjusted EBITDA (1)                                                                                                                 $         40,464                                                                      $         12,250                                                                   $          5,555                                                                      $         (7,253 )                                                                   $   51,016
   Net cash provided by (used in) operating activities of continuing                                                                   $         43,118                                                                      $         12,250                                                                   $          3,720                                                                      $        (32,992 )                                                                   $   26,096
   operations
   Net cash provided by (used in) investing activities of continuing                                                                   $          7,223                                                                      $ --                                                                   $           (790 )                                                                    $ --                                                                     $    6,433
   operations
   Net cash provided by (used in) financing activities of continuing                                                                   $             16                                                                      $ --                                                                   $           (232 )                                                                    $        (84,334 )                                                                   $  (84,550 )
   operations
   Distributable Cash Flow (1)                                                                                                         $         50,341                                                                      $         12,250                                                                   $          3,132                                                                      $        (32,992 )                                                                   $   32,714
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Three Months Ended September 30, 2017
   Revenues and other income                                                                                                           $         49,413                                                                      $          8,993                                                                   $         34,710                                                                      $ --                                                                     $   93,116
   Gains on asset sales                                                                                                                             154                                                     --                                                              17                                                     --                                                         171  
                                                                                                                                     ---------------------------------------                                           -------------------------------------------                                           ----------------------------------------                                           -------------------------------------------                                           ------------------------------------
   Total revenues and other income                                                                                                     $         49,567                                                                      $          8,993                                                                   $         34,727                                                                      $ --                                                                     $   93,287
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
   Net income (loss) from continuing operations                                                                                        $         37,992                                                                      $          8,993                                                                   $          3,342                                                                      $        (23,828 )                                                                   $   26,499
   Adjusted EBITDA (1)                                                                                                                 $         43,297                                                                      $         12,250                                                                   $          6,402                                                                      $         (3,807 )                                                                   $   58,142
   Net cash provided by (used in) operating activities of continuing                                                                   $         44,119                                                                      $          8,992                                                                   $          2,155                                                                      $        (29,466 )                                                                   $   25,800
   operations
   Net cash provided by (used in) investing activities of continuing                                                                   $            676                                                                      $          3,258                                                                   $         (1,163 )                                                                    $ --                                                                     $    2,771
   operations
   Net cash provided by financing activities of continuing operations                                                                  $            484                                                                      $ --                                                                   $ --                                                                      $         51,406                                                                     $   51,890
   Distributable Cash Flow (1)                                                                                                         $         44,795                                                                      $         12,250                                                                   $          1,304                                                                      $        (29,466 )                                                                   $   28,883
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
_____________
   (1) See "Non-GAAP Financial Measures" and reconciliation tables at
   the end of this release.
                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                     Natural Resource Partners L.P.
                                                                                                                                                                                                                                     Financial Tables
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
The table below presents NRP’s unaudited business results by
segment for the year ended December 31, 2017 and 2016:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                             Operating Business Segments
                                                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  Coal                                                                                  Construction                                                                                            Corporate
                                                                                                                                                 Royalty                                                                                                                                                                                                   Aggregates                                                                                                and
                                                                                                                                                and Other                                                                                                                                                                                                                                                                                                         Financing
(In thousands)                                                                                                                                                                                  Soda Ash                                                                                                                                                                                                      Total
--------------------------------------------------------------------                                                                                                 ------------------------------------------------------------                                                                                                                                                ------------------------------------------------------------
Year Ended December 31, 2017
   Revenues and other income                                                                                                          $ 202,323                                                                                           $         40,457                                                                                        $ 131,381                                                                                           $ --                                                                                          $  374,161
   Gains on asset sales                                                                                                                   3,545                                                                          --                                                                           311                                                                          --                                                                            3,856  
                                                                                                                                    --------------------------------                                                                -------------------------------------------                                                                ---------------------------------                                                                -------------------------------------------                                                                ------------------------------------
   Total revenues and other income                                                                                                    $ 205,868                                                                                           $         40,457                                                                                        $ 131,692                                                                                           $ --                                                                                          $  378,017
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
   Asset impairments                                                                                                                  $   2,967                                                                                           $ --                                                                                        $      64                                                                                           $ --                                                                                          $    3,031
   Net income (loss) from continuing operations                                                                                       $ 154,899                                                                                           $         40,457                                                                                        $   6,428                                                                                           $       (112,576 )                                                                                        $   89,208
   Adjusted EBITDA (1)                                                                                                                $ 181,280                                                                                           $         49,000                                                                                        $  19,764                                                                                           $        (18,502 )                                                                                        $  231,542
   Net cash provided by (used in) operating activities of continuing                                                                  $ 166,138                                                                                           $         43,354                                                                                        $  15,687                                                                                           $        (97,341 )                                                                                        $  127,838
   operations
   Net cash provided by (used in) investing activities of continuing                                                                  $   4,161                                                                                           $          5,646                                                                                        $  (6,470 )                                                                                         $ --                                                                                          $    3,337
   operations
   Net cash provided by (used in) financing activities of continuing                                                                  $     517                                                                                           $ --                                                                                        $  (1,293 )                                                                                         $       (140,943 )                                                                                        $ (141,719 )
   operations
   Distributable Cash Flow (1)                                                                                                        $ 170,299                                                                                           $         49,000                                                                                        $  10,183                                                                                           $        (97,341 )                                                                                        $  132,141
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Year Ended December 31, 2016
   Revenues and other income                                                                                                          $ 210,115                                                                                           $         40,061                                                                                        $ 120,802                                                                                           $ --                                                                                          $  370,978
   Gains on asset sales                                                                                                                  29,068                                                                          --                                                                            13                                                                          --                                                                           29,081  
                                                                                                                                    --------------------------------                                                                -------------------------------------------                                                                ---------------------------------                                                                -------------------------------------------                                                                ------------------------------------
   Total revenues and other income                                                                                                    $ 239,183                                                                                           $         40,061                                                                                        $ 120,815                                                                                           $ --                                                                                          $  400,059
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
   Asset impairments                                                                                                                  $  15,861                                                                                           $ --                                                                                        $   1,065                                                                                           $ --                                                                                          $   16,926
   Net income (loss) from continuing operations                                                                                       $ 161,816                                                                                           $         40,061                                                                                        $   4,438                                                                                           $       (111,101 )                                                                                        $   95,214
   Adjusted EBITDA (1)                                                                                                                $ 209,443                                                                                           $         46,550                                                                                        $  20,009                                                                                           $        (20,570 )                                                                                        $  255,432
   Net cash provided by (used in) operating activities of continuing                                                                  $ 134,490                                                                                           $         46,550                                                                                        $  20,400                                                                                           $       (100,797 )                                                                                        $  100,643
   operations
   Net cash provided by (used in) investing activities of continuing                                                                  $  65,057                                                                                           $ --                                                                                        $  (5,114 )                                                                                         $ --                                                                                          $   59,943
   operations
   Net cash used in financing activities of continuing operations                                                                     $      16                                                                                           $         (7,229 )                                                                                      $  (1,825 )                                                                                         $       (152,381 )                                                                                        $ (161,419 )
   Distributable Cash Flow (1)                                                                                                        $ 199,547                                                                                           $         46,550                                                                                        $  16,243                                                                                           $       (100,797 )                                                                                        $  271,415
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
_____________
   (1) See "Non-GAAP Financial Measures" and reconciliation tables at
   the end of this release.
 
                                                                                                                                                                                                                          Natural Resource Partners L.P.
                                                                                                                                                                                                                           Financial Tables (Unaudited)
 
                                                                                                                                                                                                                   Operating Statistics - Coal Royalty and Other
 
                                                                                                                                                                     Three Months Ended                                                                                                                                                     Year Ended
                                                                                                            -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------
                                                                                                                                                                   December 31,                                                                            September 30,                                                                                                         December 31,
                                                                                                            ---------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------                                          ------------------------------------------------------------------------------------------------------------
($ in thousands, except tons and per ton                                                                                        2017                                        2016                                                                               2017                                                                                  2017                                 2016
amounts)
-----------------------------------------------------------------                                           -----------------------------------------                                             ----------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             --------------------
Coal production (tons)
   Appalachia
                                                                                                                               464                                                                          1,833                                                                                   226                                                                                 2,136                                                                                2,312
      Northern
      Central                                                                                                                3,542                                                                          3,176                                                                                 3,596                                                                                14,735                                                                               13,222
      Southern                                                                                                                 535                                                         575                                                                468                                                              2,256                                                             2,776
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
         Total Appalachia                                                                                                    4,541                                                                          5,584                                                                                 4,290                                                                                19,127                                                                               18,310
   Illinois Basin                                                                                                              828                                                                          2,060                                                                                   794                                                                                 4,373                                                                                8,116
   Northern Powder River Basin                                                                                               1,678                                                                          1,047                                                                                   849                                                                                 4,386                                                                                3,781
   Gulf Coast                                                                                                       --                                                         0.4                                                     --                                                     --                                                               0.4
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
      Total coal production                                                                                                  7,047                                                       8,691                                                              5,933                                                             27,886                                                            30,207
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Coal royalty revenue per ton
   Appalachia
                                                                                                                  $           2.14                                                                      $    0.36                                                                      $           3.26                                                                      $           1.53                                                                         $       1.15
      Northern
      Central                                                                                                     $           5.21                                                                      $    4.97                                                                      $           4.77                                                                      $           5.12                                                                         $       3.64
      Southern                                                                                                    $           5.90                                                                      $    5.64                                                                      $           5.73                                                                      $           5.94                                                                         $       3.84
   Illinois Basin                                                                                                 $           4.75                                                                      $    3.92                                                                      $           4.32                                                                      $           3.88                                                                         $       3.66
   Northern Powder River Basin                                                                                    $           2.27                                                                      $    2.22                                                                      $           3.47                                                                      $           2.65                                                                         $       2.81
   Gulf Coast                                                                                                     $ --                                                                      $    3.28                                                                      $ --                                                                      $ --                                                                         $       3.28
      Combined average coal royalty revenue per ton                                                               $           4.31                                                                      $    3.46                                                                      $           4.54                                                                      $           4.33                                                                         $       3.37
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Coal royalty revenues
   Appalachia
      Northern                                                                                                    $            992                                                                      $     662                                                                      $            737                                                                      $          3,271                                                                         $      2,667
      Central                                                                                                               18,462                                                                         15,788                                                                                17,154                                                                                75,489                                                                               48,119
      Southern                                                                                                               3,157                                                       3,241                                                              2,683                                                             13,399                                                            10,660
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
         Total Appalachia                                                                                         $         22,611                                                                      $  19,691                                                                      $         20,574                                                                      $         92,159                                                                         $     61,446
   Illinois Basin                                                                                                            3,934                                                                          8,069                                                                                 3,431                                                                                16,989                                                                               29,680
   Northern Powder River Basin                                                                                               3,815                                                                          2,323                                                                                 2,945                                                                                11,642                                                                               10,637
   Gulf Coast                                                                                                       --                                                           1                                                     --                                                     --                                                                 1
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
      Total coal royalty revenue                                                                                  $         30,360                                                   $  30,084                                                   $         26,950                                                   $        120,790                                                      $    101,764
                                                                                                            ------- -------------- --------------------                                           ------- ------- --------------------                                           ------- -------------- --------------------                                           ------- -------------- --------------------                                           ---------- ----------
Other revenues
   Minimums recognized as revenue                                                                                 $          8,266                                                                      $   4,136                                                                      $          9,812                                                                      $         30,822                                                                         $     64,591
   Property tax revenue                                                                                                        813                                                                          1,558                                                                                   513                                                                                 5,124                                                                               10,457
   Wheelage                                                                                                                  1,224                                                                            577                                                                                 1,219                                                                                 4,734                                                                                2,374
   Coal overriding royalty revenue                                                                                           4,067                                                                            799                                                                                 3,059                                                                                 9,836                                                                                2,281
   Lease assignment fee                                                                                             --                                                                 --                                                                                 1,000                                                                                 1,000                                                                       --
   Hard mineral royalty revenues                                                                                               728                                                                            969                                                                                   817                                                                                 4,241                                                                                3,163
   Oil and gas royalty revenues                                                                                              1,693                                                                            999                                                                                   117                                                                                 4,225                                                                                3,537
   Other                                                                                                                       202                                                       1,476                                                                356                                                              1,029                                                             2,612
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
      Total other revenues                                                                                        $         16,993                                                   $  10,514                                                   $         16,893                                                   $         61,011                                                      $     89,015
                                                                                                            ------- -------------- --------------------                                           ------- ------- --------------------                                           ------- -------------- --------------------                                           ------- -------------- --------------------                                           ---------- ----------
         Coal royalty and other income                                                                                      47,353                                                                         40,598                                                                                43,843                                                                               181,801                                                                              190,779
Transportation and processing fees                                                                                           4,793                                                                          3,673                                                                                 5,570                                                                                20,522                                                                               19,336
Gain on coal royalty and other segment asset sales                                                                             178                                                       1,798                                                                154                                                              3,545                                                            29,068
                                                                                                            -------------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           ----------------------
   Total coal royalty and other segment revenues and other income                                                 $         52,324                                                   $  46,069                                                   $         49,567                                                   $        205,868                                                      $    239,183
                                                                                                            ======= ============== ====================                                           ======= ======= ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ========== ==========
 
                                                                                                                                                                                                                         Natural Resource Partners L.P.
                                                                                                                                                                                                                       Reconciliation of Non-GAAP Measures
 
                                                                                                                                                                                                                             Distributable Cash Flow
                                                                                                                                                                                                                                   (Unaudited)
                                                                         
                                                                                                                                Coal                                                                          Construction                               Corporate                 
                                                                                                                             Royalty and                                                                                                                                                   Aggregates                                                                         and
                                                                                                                                Other                                                                                                                                                                                                                                      Financing
(In thousands)
---------------------------------------------------------------------
Three Months Ended December 31, 2017
Net cash provided by (used in) operating activities of continuing                                                     $  45,550                                                                      $  12,250                                                                      $   4,010                                                                      $ (15,366 )                                                                    $  46,444
operations
Add: return of equity from unconsolidated investment                                                             --                                                                 --                                                                 --                                                                 --                                                                 --
Add: proceeds from sale of assets                                                                                           192                                                                 --                                                                            371                                                                 --                                                                            563
Add: return of long-term contract receivable                                                                                399                                                                 --                                                                 --                                                                 --                                                                            399
Less: maintenance capital expenditures                                                                           --                                              --                                                      (1,025 )                                                               --                                                      (1,025 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
   Distributable cash flow                                                                                            $  46,141                                                                      $  12,250                                                                      $   3,356                                                                      $ (15,366 )                                                                    $  46,381
Less: Proceeds from sale of assets                                                                                         (192 )                                                               --                                                        (371 )                                                               --                                                        (563 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
   Distributable cash flow adjusted for proceeds from sale of assets                                                  $  45,949                                                   $  12,250                                                   $   2,985                                                   $ (15,366 )                                                                    $  45,818  
                                                                                                                ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                             
Three Months Ended December 31, 2016
Net cash provided by (used in) operating activities of continuing                                                     $  43,118                                                                      $  12,250                                                                      $   3,720                                                                      $ (32,992 )                                                                    $  26,096
operations
Add: proceeds from sale of assets                                                                                         6,855                                                                 --                                                                            164                                                                 --                                                                          7,019
Add: proceeds from sale of assets from discontinued operations                                                   --                                                                 --                                                                 --                                                                 --                                                                            (17 )
Add: return of long-term contract receivables--affiliate                                                        391                                                                 --                                                                 --                                                                 --                                                                            391
Less: maintenance capital expenditures                                                                                      (23 )                                                               --                                                        (752 )                                                               --                                                        (775 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
   Distributable cash flow                                                                                            $  50,341                                                                      $  12,250                                                                      $   3,132                                                                      $ (32,992 )                                                                    $  32,714
Less: Proceeds from sale of assets, including discontinued operations                                                    (6,855 )                                                               --                                                        (164 )                                                               --                                                      (7,002 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
   Distributable cash flow adjusted for proceeds from sale of assets                                                  $  43,486                                                   $  12,250                                                   $   2,968                                                   $ (32,992 )                                                                    $  25,712  
                                                                                                                ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                             
Three Months Ended September 30, 2017
Net cash provided by (used in) operating activities of continuing                                                     $  44,119                                                                      $   8,992                                                                      $   2,155                                                                      $ (29,466 )                                                                    $  25,800
operations
Add: return of equity from unconsolidated investment                                                             --                                                                          3,258                                                                 --                                                                 --                                                                          3,258
Add: proceeds from sale of assets                                                                                            76                                                                 --                                                                             75                                                                 --                                                                            151
Add: return of long-term contract receivable                                                                                600                                                                 --                                                                 --                                                                 --                                                                            600
Less: maintenance capital expenditures                                                                           --                                              --                                                        (926 )                                                               --                                                        (926 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
   Distributable cash flow                                                                                            $  44,795                                                                      $  12,250                                                                      $   1,304                                                                      $ (29,466 )                                                                    $  28,883
Less: Proceeds from sale of assets                                                                                          (76 )                                                               --                                                         (75 )                                                               --                                                        (151 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
   Distributable cash flow adjusted for proceeds from sale of assets                                                  $  44,719                                                   $  12,250                                                   $   1,229                                                   $ (29,466 )                                                                    $  28,732  
                                                                                                                ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
 
                                                                                                                                                                                                                         Natural Resource Partners L.P.
                                                                                                                                                                                                                       Reconciliation of Non-GAAP Measures
 
                                                                                                                                                                                                                             Distributable Cash Flow
                                                                                                                                                                                                                                   (Unaudited)
                                                                         
                                                                                                                                Coal                                                                          Construction                                Corporate                 
                                                                                                                             Royalty and                                                                                                                                                   Aggregates                                                                          and
                                                                                                                                Other                                                                                                                                                                                                                                       Financing
(In thousands)
---------------------------------------------------------------------
Year Ended December 31, 2017
Net cash provided by (used in) operating activities of continuing                                                     $ 166,138                                                                      $  43,354                                                                      $  15,687                                                                      $  (97,341 )                                                                   $ 127,838
operations
Add: return of equity from unconsolidated investment                                                             --                                                                          5,646                                                                 --                                                                  --                                                                         5,646
Add: proceeds from the sale of assets                                                                                     1,151                                                                 --                                                                            831                                                                  --                                                                         1,982
Add: return of long-term contract receivables (including affiliate)                                                       3,010                                                                 --                                                                 --                                                                  --                                                                         3,010
Less: maintenance capital expenditures                                                                           --                                              --                                                      (6,335 )                                                                --                                                     (6,335 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
   Distributable cash flow                                                                                            $ 170,299                                                                      $  49,000                                                                      $  10,183                                                                      $  (97,341 )                                                                   $ 132,141
Less: Proceeds from sale of assets                                                                                       (1,151 )                                                               --                                                        (831 )                                                                --                                                     (1,982 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
   Distributable cash flow adjusted for proceeds from sale of assets                                                  $ 169,148                                                   $  49,000                                                   $   9,352                                                   $  (97,341 )                                                                   $ 130,159  
                                                                                                                ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======== ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Year Ended December 31, 2016
Net cash provided by (used in) operating activities of continuing                                                     $ 134,490                                                                      $  46,550                                                                      $  20,400                                                                      $ (100,797 )                                                                   $ 100,643
operations
Add: Proceeds from the sale of assets                                                                                    62,117                                                                 --                                                                            266                                                                  --                                                                        62,383
Add: proceeds from sale of assets included in discontinued operations                                            --                                                                 --                                                                 --                                                                  --                                                                       109,872
Add: return of long-term contract receivables--affiliate                                                      2,968                                                                 --                                                                 --                                                                  --                                                                         2,968
Less: maintenance capital expenditures                                                                                      (28 )                                                               --                                                      (4,423 )                                                                --                                                     (4,451 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
   Distributable cash flow                                                                                            $ 199,547                                                                      $  46,550                                                                      $  16,243                                                                      $ (100,797 )                                                                   $ 271,415
Less: Proceeds from sale of assets, including discontinued operations                                                   (62,117 )                                                               --                                                        (266 )                                                                --                                                   (172,255 )
                                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
   Distributable cash flow adjusted for proceeds from sale of assets                                                  $ 137,430                                                   $  46,550                                                   $  15,977                                                   $ (100,797 )                                                                   $  99,160  
                                                                                                                ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======== ====================                                           ====== ======= ====================
 
                                                                                                                                                                                                                  Natural Resource Partners L.P.
                                                                                                                                                                                                                Reconciliation of Non-GAAP Measures
 
                                                                                                                                                                                                                          Adjusted EBITDA
                                                                                                                                                                                                                            (Unaudited)
                                                           
                                                                                                                  Coal                                                                          Construction                               Corporate                 
                                                                                                               Royalty and                                                                                                                                                   Aggregates                                                                         and
                                                                                                                  Other                                                                                                                                                                                                                                      Financing
(In thousands)
-------------------------------------------------------
Three Months Ended December 31, 2017
Net income (loss) from continuing operations                                                            $  39,729                                                                      $  12,781                                                                      $   1,989                                                                      $ (23,758 )                                                                    $  30,741
   Less: equity earnings from unconsolidated investment                                            --                                                                        (12,781 )                                                               --                                                                 --                                                                        (12,781 )
   Add: distributions from unconsolidated investment                                               --                                                                         12,250                                                                 --                                                                 --                                                                         12,250
   Add: interest expense, net                                                                      --                                                                 --                                                                             61                                                                         19,062                                                                         19,123
   Add: debt modification expense                                                                  --                                                                 --                                                                 --                                                                 --                                                                 --
   Add: depreciation, depletion and amortization                                                            5,761                                                                 --                                                                          3,029                                                                 --                                                                          8,790
   Add: asset impairments                                                                                   1,189                                              --                                                          64                                              --                                                       1,253  
                                                                                                  ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Adjusted EBITDA                                                                                         $  46,679                                                                      $  12,250                                                                      $   5,143                                                                      $  (4,696 )                                                                    $  59,376
   Less: gains on sale of assets                                                                             (178 )                                                               --                                                        (102 )                                                               --                                                        (280 )
                                                                                                  ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Adjusted EBITDA excluding gains on sale of assets                                                       $  46,501                                                   $  12,250                                                   $   5,041                                                   $  (4,696 )                                                                    $  59,096  
                                                                                                  ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                               
Three Months Ended December 31, 2016
Net income (loss) from continuing operations                                                            $  24,014                                                                      $   9,319                                                                      $     997                                                                      $ (30,519 )                                                                    $   3,811
   Less: equity earnings from unconsolidated investment                                            --                                                                         (9,319 )                                                               --                                                                 --                                                                         (9,319 )
   Add: distributions from unconsolidated investment                                               --                                                                         12,250                                                                 --                                                                 --                                                                         12,250
   Add: interest expense, net                                                                      --                                                                 --                                                                 --                                                                         23,266                                                                         23,266
   Add: depreciation, depletion and amortization                                                            8,270                                                                 --                                                                          3,493                                                                 --                                                                         11,763
   Add: asset impairments                                                                                   8,180                                              --                                                       1,065                                              --                                                       9,245  
                                                                                                  ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Adjusted EBITDA                                                                                         $  40,464                                                                      $  12,250                                                                      $   5,555                                                                      $  (7,253 )                                                                    $  51,016
   Less: gains on sale of assets                                                                           (1,798 )                                                               --                                                          (3 )                                                               --                                                      (1,801 )
                                                                                                  ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Adjusted EBITDA excluding gains on sale of assets                                                       $  38,666                                                   $  12,250                                                   $   5,552                                                   $  (7,253 )                                                                    $  49,215  
                                                                                                  ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                               
Three Months Ended September 30, 2017
Net income (loss) from continuing operations                                                            $  37,992                                                                      $   8,993                                                                      $   3,342                                                                      $ (23,828 )                                                                    $  26,499
   Less: equity earnings from unconsolidated investment                                            --                                                                         (8,993 )                                                               --                                                                 --                                                                         (8,993 )
   Add: distributions from unconsolidated investment                                               --                                                                         12,250                                                                 --                                                                 --                                                                         12,250
   Add: interest expense, net                                                                      --                                                                 --                                                                             59                                                                         20,021                                                                         20,080
   Add: depreciation, depletion and amortization                                                            5,305                                              --                                                       3,001                                              --                                                       8,306  
                                                                                                  ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Adjusted EBITDA                                                                                         $  43,297                                                                      $  12,250                                                                      $   6,402                                                                      $  (3,807 )                                                                    $  58,142
   Less: gains on sale of assets                                                                             (154 )                                                               --                                                         (17 )                                                               --                                                        (171 )
                                                                                                  ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Adjusted EBITDA excluding gains on sale of assets                                                       $  43,143                                                   $  12,250                                                   $   6,385                                                   $  (3,807 )                                                                    $  57,971  
                                                                                                  ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================
 
                                                                                                                                                                                                                                     Natural Resource Partners L.P.
                                                                                                                                                                                                                                     Reconciliation of Non-GAAP Measures
 
                                                                                                                                                                                                                                     Adjusted EBITDA
                                                                                                                                                                                                                                     (Unaudited)
                                                                 
                                                                                                                                                                                 Coal                                   Soda Ash                               Construction                                Corporate                                  Total
                                                                                                                                                                              Royalty and                                                                                                                                                   Aggregates                                                                          and
                                                                                                                                                                                 Other                                                                                                                                                                                                                                       Financing
(In thousands)
-------------------------------------------------------
Year Ended December 31, 2017
   Net income (loss) from continuing operations                                                                                                                          154,899                                                                      $  40,457                                                                      $   6,428                                                                      $ (112,576 )                                                                   $  89,208
   Less: equity earnings from unconsolidated investment                                                                                                           --                                                                        (40,457 )                                                               --                                                                  --                                                                       (40,457 )
   Add: distributions from unconsolidated investment                                                                                                              --                                                                         49,000                                                                 --                                                                  --                                                                        49,000
   Add: interest expense, net                                                                                                                                     --                                                                 --                                                                            693                                                                          82,028                                                                        82,721
   Add: debt modification expense                                                                                                                                 --                                                                 --                                                                 --                                                                           7,939                                                                         7,939
   Add: loss on extinguishment of debt                                                                                                                            --                                                                 --                                                                 --                                                                           4,107                                                                         4,107
   Add: depreciation, depletion and amortization                                                                                                                          23,414                                                                 --                                                                         12,579                                                                  --                                                                        35,993
   Add: asset impairments                                                                                                                                                  2,967                                              --                                                          64                                               --                                                      3,031  
                                                                                                                                                                 ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
Adjusted EBITDA                                                                                                                                                          181,280                                                                      $  49,000                                                                      $  19,764                                                                      $  (18,502 )                                                                   $ 231,542
   Less: gains on sale of assets                                                                                                                                          (3,545 )                                                               --                                                        (311 )                                                                --                                                     (3,856 )
                                                                                                                                                                 ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
Adjusted EBITDA excluding gains on sale of assets                                                                                                                        177,735                                                   $  49,000                                                   $  19,453                                                   $  (18,502 )                                                                   $ 227,686  
                                                                                                                                                                 ====================================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======== ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Year Ended December 31, 2016
   Net income (loss) from continuing operations                                                                                                                        $ 161,816                                                                      $  40,061                                                                      $   4,438                                                                      $ (111,101 )                                                                   $  95,214
   Less: equity earnings from unconsolidated investment                                                                                                           --                                                                        (40,061 )                                                               --                                                                  --                                                                       (40,061 )
   Add: distributions from unconsolidated investment                                                                                                              --                                                                         46,550                                                                 --                                                                  --                                                                        46,550
   Add: interest expense, net                                                                                                                                     --                                                                 --                                                                 --                                                                          90,531                                                                        90,531
   Add: depreciation, depletion and amortization                                                                                                                          31,766                                                                 --                                                                         14,506                                                                  --                                                                        46,272
   Add: asset impairments                                                                                                                                                 15,861                                              --                                                       1,065                                               --                                                     16,926  
                                                                                                                                                                 ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
Adjusted EBITDA                                                                                                                                                        $ 209,443                                                                      $  46,550                                                                      $  20,009                                                                      $  (20,570 )                                                                   $ 255,432
   Less: Gains on sale of assets                                                                                                                                         (29,068 )                                                               --                                                         (13 )                                                                --                                                    (29,081 )
                                                                                                                                                                 ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------                                           -----------------------------------
Adjusted EBITDA excluding gains on sale of assets                                                                                                                      $ 180,375                                                   $  46,550                                                   $  19,996                                                   $  (20,570 )                                                                   $ 226,351  
                                                                                                                                                                 ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======== ====================                                           ====== ======= ====================
 
 
                                                                                                                                                                                                                                     Natural Resource Partners L.P.
                                                                                                                                                                                                                                     Reconciliation of Non-GAAP Measures
 
                                                                                                                                                                                                                                     Adjusted Net Income
                                                                                                                                                                                                                                     (Unaudited)
                                                                                                                                                                                   Three Months Ended                                                                                                                                                              Year Ended
                                                                                                                                                                           --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                        December 31,                                                                                   September 30,                                                                                                             December 31,
                                                                                                                                                                           --------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                                                                                   2017                                              2016                                                                                    2017                                                                              2017                                   2016
-----------------------------------------------------------------                                                                                                          --------------------------------------------                                              ----------------------------------------                                              --------------------------------------------                                              ------------------------------                                             ----------------------------------
Net income                                                                                                                                                                       $             30,707                                                                   $             3,488                                                                      $             26,066                                                                  $  88,667                                                                      $  96,892
   Less: income attributable to preferred unitholders                                                                                                                                          (7,765 )                                                                      --                                                                 (7,650 )                                                                  (25,453 )                                                               --  
                                                                                                                                                                           -----------------------------------------------                                           -------------------------------------------                                           -----------------------------------------------                                           --------------------------------                                           ------------------------------------
Net income attributable to common unitholders and general partner                                                                                                                $             22,942                                                                   $             3,488                                                                      $             18,416                                                                  $  63,214                                                                      $  96,892
   Add: asset impairments                                                                                                                                                                       1,253                                                                                 9,245                                                                            --                                                                      3,031                                                                         16,926
   Add: loss (income) from discontinued operations                                                                                                                                                 34                                                                                   323                                                                                       433                                                                        541                                                                         (1,678 )
   Add: debt modification expense                                                                                                                                                      --                                                                        --                                                                            --                                                                      7,939                                                                 --
   Add: loss on extinguishment of debt                                                                                                                                                 --                                                                        --                                                                            --                                                                      4,107                                                                 --
                                                                                                                                                                                       --                                                                                 3,713                                                                            --                                                                      3,822                                                                          3,713
   Add: restructuring-related incentive compensation expense
   Less: gain on asset sales                                                                                                                                                                     (280 )                                                                              (1,801 )                                                                                    (171 )                                                                   (3,856 )                                                                      (29,081 )
                                                                                                                                                                                       --                                                                (45 )                                                                                  (2,142 )                                                                   (3,405 )                                                                      (40,460 )
   Less: non-cash revenue associated with lease modifications
   and terminations
                                                                                                                                                                           ------------------------   --------------------                                           --------------------   --------------------                                           ------------------------   --------------------                                           ----------  --------------------                                           --------------  --------------------
Adjusted net income                                                                                                                                                              $             23,949                                                $            14,923                                                   $             16,536                                               $  75,393                                                   $  46,312  
                                                                                                                                                                           ======= =======================================                                           ==== ======================================                                           ======= =======================================                                           === ======= ====================                                           ======= ======= ====================
 
                                                                                                                                                                                                                                     Adjusted Coal Royalty and Other Operating Income
                                                                                                                                                                                                                                     (Unaudited)
 
                                                                                                                                                                                                                                                                                  Three Months Ended                                                                                                                                                                                                    Year Ended
                                                                                                                                                                           --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                        December 31,                                                                                                                         September 30,                                                                                                             December 31,
                                                                                                                                                                           --------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------                                          ----------------------------------------------------------------------------------------------------------------
(In thousands)                                                                                                                                                                                   2017                                                                                    2016                                                                                    2017                                                                              2017                                                                         2016
-----------------------------------------------------------------                                                                                                          --------------------------------------------                                              ----------------------------------------                                              --------------------------------------------                                              ------------------------------                                             ----------------------------------
Coal royalty and other operating income                                                                                                                                          $  39,729                                                                              $ 24,014                                                                                 $  37,992                                                                             $ 154,899                                                                      $ 161,816
   Add: asset impairments                                                                                                                                                            1,189                                                                                 8,180                                                                            --                                                                                 2,967                                                                         15,861
   Less: gain on asset sales                                                                                                                                                          (178 )                                                                              (1,798 )                                                                                    (154 )                                                                              (3,545 )                                                                      (29,068 )
                                                                                                                                                                            --                                                                (45 )                                                                                  (2,142 )                                                                              (3,405 )                                                                      (40,460 )
   Less: non-cash revenue associated with lease modifications
   and terminations
                                                                                                                                                                           --------------  ------------------------------                                            ----------  ------------------------------                                            --------------  ------------------------------                                            ----------  --------------------                                           --------------  --------------------
Adjusted coal royalty and other operating income                                                                                                                                 $  40,740                                                           $ 30,351                                                              $  35,696                                                          $ 150,916                                                   $ 108,149  
                                                                                                                                                                           ======= ======= ================================                                          ==== ====== ================================                                          ======= ======= ================================                                          === ======= ====================                                           ======= ======= ====================
 
 
                                                              Natural Resource Partners L.P.
                                                               Recap of Metrics (Unaudited)
 
(In thousands, except units, prices,                                                     February 27, 2018
ratio and yields)
-------------------------------------------------------------------------                                           -----------------------------------
Common Unit price                                                                                                        $     28.35
                                                                                                                     
Enterprise value
  Equity market cap                                                                                                      $   346,777
  Debt--at December 31, 2017                                                                                     827,844
  Preferred Units                                                                                                            250,000
  Intrinsic Value of Warrants                                                                                                  9,695  
                                                                                                                    -------------------------------------
       Total enterprise value                                                                                            $ 1,434,316  
                                                                                                                    ====== ========= ====================
                                                                                                                     
Adjusted EBITDA--Year-ended December 31, 2017                                                                $   231,542
Enterprise Value-to-Adjusted EBITDA                                                                                             6.19 x
                                                                                                                     
Leverage Ratio (1)                                                                                                              3.58 x
                                                                                                                     
Distributable cash flow ("DCF")--Year-ended December 31, 2017                                                    132,141
Less: 12% annual coupon on Preferred Units                                                                                   (30,000 )
                                                                                                                    ---------------  --------------------
    Adjusted DCF                                                                                                             102,141
                                                                                                                     
Distribution Coverage Ratio (2)                                                                                                  5.9 x
Adjusted Distribution Coverage Ratio (3)                                                                                         4.5 x
Equity Value-to-Adjusted DCF                                                                                                     3.4 x
_____________
(1)      Leverage Ratio is calculated as year-ended 2017 Adjusted EBITDA
                            divided by the outstanding principal value of our debt as of
                            December 31, 2017.
                             
(2)                         Distribution Coverage Ratio is calculated as DCF divided by annual
                            common unit distributions times number of common units and general
                            partner units outstanding.
                             
(3)                         Adjusted Distribution Coverage Ratio is calculated as Adjusted DCF
                            divided by annual common unit distributions times number of common
                            units and general partner units outstanding.
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180301005506r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180301005506/en/

SOURCE: Natural Resource Partners L.P.

Natural Resource Partners L.P. 
Kathy H. Roberts, 713-751-7555 
kroberts@nrplp.com


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