Natural Resources Partners (NRP) has announced its fourth quarter (Q4) and full year 2017 results. The company, Craig Nunez, President and Chief Operating Officer, has continued to generate substantial amounts of cash from operations and the quarter results have considerably improved compared to prior year levels. In addition, NRP has strengthened its balance sheet and has reduced debt $311.1 million during 2017.
Nunez added that the results reflect improved performances from its aggregates business segments coal royalty and soda ash when compared to the prior quarter.
NRP aims to achieve a leverage ratio, defined as Debt-to-Adjusted Earnings before interest, taxes, depreciation, and amortization (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. It follows the company’s focus on reducing debt while maintaining minimum liquidity of $100 million.
During Q4, 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. The compay also redeemed all outstanding paid-in-kind Preferred Units in February 2018 at par.