During the second quarter of 2020, we generated $20 million of operating cash flow and $7 million of net income from continuing operations, excluding the impact of asset impairment. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. One final one -- just one for me, and I think I've asked this in previous calls. Thank you, gentlemen, very much and congratulations on the Foresight agreement. To return to the application, please click the button below. Site maintained by Edit71. With that being said, I would like to reiterate Craig's comments regarding the positive outcome for Foresight Energy, our largest lessee. Despite the negative economic backdrop, NRP continues to generate cash and pay down debt. Our Corporate and financing segment costs declined $32 million in the second quarter of 2020 compared to the prior year quarter, primarily due to the $29 million loss on early extinguishment of debt in connection with the refinancings of our bonds and revolving credit facility in last year's second quarter. Any reason to believe that it would resume in the fourth quarter or I mean, do you have any color or thoughts on how to think about -- I mean, I assume that will be a zero going forward until notified otherwise. In the second half of 2019, Ciner Wyoming decided to reduce annual cash distribution to us to approximately $28 million in order to fund a multi-year capacity expansion project. Natural Resource Partners LP (NYSE:NRP)Q2 2020 Earnings CallAug 7, 2020, 9:00 a.m. Announces First Quarter 2020 Earnings Conference Call. Schedules Third Quarter 2020 Earnings Conference Call, Natural Resource Partners L.P. Reports Second Quarter 2020 Results and Declares Second Quarter 2020 Distributions, Natural Resource Partners L.P. The remaining $3 million of cost reduction was primarily due to lower interest expense because of the $48 million of debt we have repaid over the last 12 months. So if you wanted to get a perspective of what is that total minimum amount, we do have that disclosed in our 10-Q. The performance of the business since the COVID crisis hit and the near and intermediate term outlook that we have, our liquidity, our cash generation that we currently have and when weighing all those, it appeared that it was a prudent move to make the distribution. And related to that point, is there a minimum liquidity number that you guys would like to keep or have on hand? Our soda ash revenues and other income in the second quarter of 2020 were lower by $14 million compared to the prior year quarter. Got it. Natural Resource Partners L.P. Well, thank you, everyone. Natural Resource Partners L.P. is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. var dteNow = new Date(); So I think the right way to think about it is that as you look forward, say over the next year or so, I think that -- assuming that it gets really bad to maybe it stays, it get -- met pricing gets even worse than we are now, I think it's fair to think of it in terms of maybe something between $10 million and $20 million of deficiency payments that we would receive. Moving to our second business segment, soda ash. Craig W. Nunez -- President and Chief Operating Officer. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Huntington, WV 25705. Apr 30, 2020 - Alliance Resource Partners, L.P. A significant positive development in our coal segment in the second quarter relates to our largest lessee, Foresight Energy. While the Macoupin mine is idled, Foresight will pay an annual fee to us of $2 million each year through 2023 to continue to lease coal reserves at Macoupin. Mark Levin -- Benchmark Company -- Analyst. 1201 Louisiana St. These risks are discussed in NRP's Form 10-K and other Securities and Exchange Commission filings. Yeah, absolutely. And so I think, for the foreseeable future, I think that business is still trying to get its legs back underneath it, but that's all I can share and I'd suggest directing questions about distributions to Ciner. Market data powered by FactSet and Web Financial Group. Very helpful. As a reminder, asset impairment is a non-cash expense and does not have an impact on our debt covenant compliance. var intYear = dteNow.getFullYear(); Investor Relations. But at this point, it just -- it appeared like the good move to pay the distribution. At Natural Resource Partners, LP., we promise to treat your data with respect and will not share your information with any third party. In addition, weaker domestic and export thermal coal markets resulted in lower revenue from our thermal coal properties compared to the prior year quarter. While we are unable to predict the ultimate impact that COVID-19 may have on our soda ash business, Ciner Wyoming has taken a number of steps to reduce both operating and capital cost and maintain financial flexibility amid the current market volatility. We think over $200 million of liquidity, with over $100 million of cash, we think that's a good number in light of the market and our view of the market today. 304-522-5757 It depends on the facts and circumstances and the more optimistic we are about the outlook going forward, the lower that number can be and vice-versa. BRP LLC. Right now, we're comfortable where we are with our liquidity number now. Domestic and export thermal coal markets remained challenged by lower utility demand, continued low natural gas prices and a secular shift to renewable energy. Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer. At Natural Resource Partners, LP., we promise to treat your data with respect and will not share your information with any third party. A Diversified Natural Resource Company. I hope you and your loved ones are safe and healthy. We have typically -- if you look back over the last year or couple years, we have been seeing $15 million to $20 million roughly of deficiency payments that we receive across all of our portfolio combined. Today's call is being webcast and a replay will be available on our website. Beginning in January of 2022, Foresight payment obligations will be calculated in accordance with the provisions of the original lease agreement, except with respect to the Macoupin mine. document.write(intYear); 1-888-252-2396, Natural Resource Partners L.P. While almost all of our lessees are currently operating, including those that had temporarily idled mines at the start of the pandemic, production levels are down and inventories are up. I appreciate you taking time to join our call and appreciate your interest in NRP. Returns as of 10/26/2020. Natural Resource Partners L.P. 5260 Irwin Road. And Mark, we do include in the footnote in our 10-Q a disclosure of the total amount of contractual minimums we have. Got it, got it. We tried to mention this few time in our remarks earlier, but this is driven by the agreement that we entered into with Foresight, where we are now receiving a fixed amount over time, that's a primary driver for the result here. Learn More To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Good morning, all. Ma'am, you may begin. [email protected], Chairman of the CNG Committee A Diversified Natural Resource Company. Global ash -- soda ash prices are down roughly 25% from a year ago to levels that are below the cost of production of many of the world's synthetic soda ash producers and near the cost of production for some of the natural soda ash producers. Foresight continues to operate the Hillsboro, Williamson and Sugar Camp mining complexes with longwall mining systems. Thank you, Tiffany. Our cash flow cushion, which is our free cash flow remaining after paying our private placement debt amortizations and distributions on our common and preferred unit was $18 million over the same period. Thank you very much, Mark. Chris, you want to talk about that or Kevin? [Operator Instructions] I would now like to hand the conference over to Ms. Tiffany Sammis, Manager of Investor Relations. Houston, TX 77002 Joining me today are Craig Nunez, President and Chief Operating Officer; Chris Zolas, Chief Financial Officer; and Kevin Craig, Executive Vice President of Coal. Got it. These fixed payments provide cash flow certainty for NRP at a level greater than had been anticipated as the coal industry manages through difficult market conditions compounded by the COVID-19 pandemic. Our management's succession plans and delegations of authorities are in place, should we need them. Schedules Fourth Quarter and Full Year 2019 Earnings Conference Call, Natural Resource Partners Declares Fourth Quarter 2019 Distributions. The other question I was going to ask is, I think you referenced last quarter maybe free cash flow cushion or free cash flow in general just turning negative. However, we believe that our liquidity, free cash flow generation and the fact that our parent company bonds do not mature until 2025, provide us with the financial flexibility to manage through a prolonged downturn. Natural Resource Partners L.P. is a diversified natural resource company that owns interests in coal, aggregates and industrial minerals across the United States. I would like to start out summarizing some significant items that are impacting comparisons between the second quarters of 2020 and 2019. However, as Craig noted, the COVID-19 pandemic has caused a negative impact on the soda ash industry and we expect significant headwinds until the global economy gets back on track. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation. Mark, this is Craig. That makes perfect sense. It sounds like it would -- it's coming down, but do you still echo the same sentiments in terms of what you see today? Suite 3400 Through the first six months of 2020, we received $21 million of the $49 million due to us this year. Based on the performance of our businesses since those decisions, we announced today that our Board has decided to pay a common distribution and pay-in-cash the full distribution on our preferred units for the second quarter. Both sales volumes and prices for metallurgical coal sold were lower in the second quarter of 2020 compared to the prior year quarter. 5260 Irwin Road The COVID-19 pandemic has had a significant negative impact on demand for steel, electricity and glass, which translate to lower demand for the coal and soda ash we produce. Apr 09, 2020 - Alliance Resource Partners, L.P. It could go negative, absent some turnaround and dramatic improvement in the global economy in the near term. Natural Resource Partners L.P. Great. I guess, it reflects several factors, but I guess what caught me off guard was just given how weak the underlying coal markets are and your decision or the Board's decision to resume it, maybe you can give some color around what went into that decision and why you decided to do it now? But I believe the numerous transformative actions completed in recent years to rightsize our business, solidify our capital structure and build liquidity have positioned NRP to continue deleveraging and derisking the partnership by using internally generated cash to pay down debt. There was not a change in the royalty rate per se. Suite 3400 1201 Louisiana St. Operating cash flow was $7 million lower compared to the prior year quarter, primarily due to the timing of interest payments on the parent company bonds that were refinanced in the second quarter of 2019.
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