EX-99.1 2 h48741exv99w1.htm PRESS RELEASE exv99w1
 

     
Natural Resource Partners L.P.
601 Jefferson St., Suite 3600, Houston, TX 77002
  (NRP LOGO)
NEWS RELEASE
Natural Resource Partners L.P.
Reports Second Quarter 2007 Results
Second Quarter Highlights:
  •   Record distributable cash flow of $43.5 million, up 44% over 2Q06
 
  •   Record revenues of $51.1 million, up 25%
 
  •   Net income attributable to limited partners of $18.1 million, down 17% to $0.28 per unit
 
  •   Increases distribution for sixteenth consecutive quarter to $0.465 per unit
 
  •   Lowers distributable cash flow guidance to $135-$150 million for remainder of 2007 due to production delays at three newly acquired operations
HOUSTON, August 6, 2007 – Natural Resource Partners L.P. (NYSE:NRP and NYSE:NSP) today reported record distributable cash flow, a non-GAAP measure, of $43.5 million, up 44% from the $30.2 million reported for the second quarter 2006. Net income attributable to the limited partners decreased to $18.1 million, or $0.28 per unit, for the second quarter of 2007, compared to $21.8 million, or $0.43 per unit, for the second quarter of 2006.
“The performance of the majority of our lessees is at or above forecast and we expect coal prices to continue to improve over the remainder of the year, but our year-end results will be negatively impacted by operational issues associated with properties acquired in two recent transactions,” said Nick Carter, President and Chief Operating Officer. “We expect improvements to occur at these operations over the next year, however, and we remain optimistic about 2008.”
Highlights
                         
    2Q07     1Q07     2Q06  
    (in thousands except per ton and per unit)  
Coal Production:
     13,573       13,510       13,374  
Coal Royalty Revenues:
   $ 40,733     $ 40,973     $ 36,527  
Average coal royalty revenue per ton:
   $ 3.00     $ 3.03     $ 2.73  
Total revenues:
   $ 51,097     $ 50,207     $ 40,982  
Net income to limited partners:
   $ 18,145     $ 17,779     $ 21,848  
Average units outstanding in quarter:
     64,886       63,295       50,681  
Net income per unit:
   $ 0.28     $ 0.28     $ 0.43  
Distributable cash flow:
   $ 43,511     $ 28,343     $ 30,210  

 

 

Page 2 of 12
NRP Reports 2nd Quarter 2007 Results
SecondQuarter and Year-to-Date Results
Excluding the properties acquired in the Cline and Dingess-Rum acquisitions, both production and revenues were ahead of NRP’s first half forecast, bolstered by the strong performance of the other assets we acquired during the last year.
Total revenues increased 25% to a record $51.1 million for the second quarter of 2007, compared to $41.0 million reported for the same period last year. Second quarter 2007 coal royalty revenues increased 12% to $40.7 million from $36.5 million last year as the partnership continued to experience increased coal royalty revenues per ton in all regions, with an overall average coal royalty revenue per ton of $3.00. Total production for the partnership in the second quarter was 13.6 million tons compared to 13.4 million tons in 2006.
Total revenues increased 16% over the first six months of 2006 to $101.3 million, while distributable cash flow increased 11% over the same period. Coal royalty revenues increased 8% to $81.7 million, largely the result of improved pricing, as NRP’s total production remained essentially flat over the six month comparative period at approximately 27 million tons.
Aggregate royalties, coal processing fees, and transportation fees, new lines of business for NRP, generated approximately $3.9 million in the second quarter of 2007.
Total expenses increased $9.0 million to $22.0 million in the second quarter. Depreciation, depletion and amortization, a non-cash item, accounted for $5.3 million, or approximately 60% of the increase, primarily as a result of acquisitions during the last year. General and administrative expenses increased by $2.2 million due to accruals under our long term incentive plan and additional staff. Property, franchise and other taxes increased $1.4 million mainly due to taxes on properties acquired since last year, a significant portion of which are offset by reimbursements from our lessees, which are recorded in revenues.
Interest expense increased $3.4 million over second quarter last year to $7.1 million due to additional borrowings associated with acquisitions completed during the last year.
While total revenues for the second quarter increased by $10.1 million, net income attributable to the limited partners decreased $3.7 million to $18.1 million. For the six month period, net income attributable to the limited partners decreased 24% to $35.9 million, or $0.56 per unit. The decreases in net income are mainly due to increases in depreciation, depletion and amortization as well as interest on NRP’s recent acquisitions. In addition, approximately 14.2 million additional units were issued during the time period, and as distributions to all unitholders increase, a larger percentage of the total distributions and net income is allocated to the holders of the incentive distribution rights, including NRP’s general partner.

 

 

Page 3 of 12
NRP Reports 2nd Quarter 2007 Results
Discussion of Recently Acquired Properties
The Cline properties we acquired have experienced delays while ramping up to full production. The Gatling operation in Northern Appalachia encountered initial unexpected geologic problems, but as mining has progressed, conditions have improved significantly. In addition, Cline is making operational changes in an effort to achieve the production levels originally anticipated. Those production levels likely will not be reached, however, until sometime in 2008.
At the Williamson operation in Illinois, the mine is currently at full production during the development phase of the longwall, but the delays that occurred in the early mine development will result in the longwall not starting production until early 2008. In addition, because NRP’s royalty is paid when coal is shipped rather than when mined and Cline has been stockpiling coal at the mine as it negotiates sales contracts with utilities, NRP’s revenues from Williamson were lower than expected in the first half. NRP expects to receive significantly higher royalty payments and transportation fees from the Williamson mine in the second half of the year as several contracts were recently finalized.
Similarly, as reported in the first quarter, one of our lessees on the properties acquired from Dingess-Rum encountered difficult operating conditions in its longwall mine and is in the process of changing the mine plan. The change will cause a reduction in production levels and coal royalty revenues in the short term, but NRP anticipates that this mine will return to full operation with the longwall sometime in 2008. The lessee’s surface mines also experienced temporary shut-downs in the second quarter resulting from several factors, including lower shipments, stockpiles at capacity, and the recent judicial decision in West Virginia regarding the permitting of valley fills. Most of the mines have now resumed normal production and are expected to produce for the remainder of 2007.
“We remain confident that these acquisitions will be large positive contributors to revenues when these issues have been resolved,” said Corbin J. Robertson, Jr., Chairman and Chief Executive Officer. “The reserves that we acquired are economically recoverable and should provide significant distributable cash flow in the future.”
Outlook and Updated Guidance
The Williamson mine is now producing at the development rate forecasted and the longwall will be in production in early 2008, which is 3 months later than originally forecasted. Production at the Gatling operation is increasing, and Cline is making the appropriate adjustments to achieve the projected production rate in 2008. The mine change plans at the Dingess-Rum property will occur over the next year and when completed, NRP projects that production will return to the forecasted levels.
“We believe that the right operational decisions are being made by our lessees and we will continue to closely monitor these mines,” said Nick Carter.

 

 

Page 4 of 12
NRP Reports 2nd Quarter 2007 Results
Primarily as a result of the production issues at the Gatling, Williamson and Dingess-Rum properties, offset somewhat by improving prices on other operations, NRP is lowering guidance for the remainder of the year. NRP now anticipates 2007 total revenues to range from $205 million to $224 million, with 2007 distributable cash flow between $135 million and $150 million. A table is attached with further guidance on various financial metrics.
Distributions
On July 18, the partnership announced its sixteenth consecutive increase in its quarterly distribution to $0.465 per unit or $1.86 on an annualized basis, a 2.2% increase over the first quarter 2007 distribution and a 13.4% increase over the second quarter distribution last year. The distribution will be paid on August 14, 2007 to unitholders of record on August 1, 2007.
Capital Structure and Acquisitions
In the second quarter, three events affected the capital structure of the partnership: an acquisition, a two-for-one unit split, and a change in the New York Stock Exchange rules. On April 2, 2007, NRP issued an additional 250,000 units and paid $10.2 million in cash for the Mettiki coal reserve acquisition from Western Pocahontas Properties, a partnership controlled by our chairman, Corbin J. Robertson, Jr. On April 18, the partnership completed a two-for-one split on all outstanding units. Finally, as a result of a change in the New York Stock Exchange listing standards on May 22, 2007, the currently outstanding Class B units automatically converted into common units. NRP currently has 53,537,502 common units and 11,353,634 subordinated units outstanding following all the transactions listed above.
In a separate transaction, NRP paid $8.4 million of a total of $16.2 million for a coal preparation plant located in Eckman, WV that is currently under construction.
Company Profile
Natural Resource Partners L.P. is headquartered in Houston, TX, with its operations headquarters in Huntington, WV. NRP is a master limited partnership that is principally engaged in the business of owning and managing coal properties, and coal handling and transportation infrastructure in the three major coal producing regions of the United States: Appalachia, the Illinois Basin and the Powder River Basin. In addition, the partnership also manages aggregate reserves, oil and gas properties and timber assets across the United States. The common units are traded on the New York Stock Exchange (NYSE) under the symbol NRP and the subordinated units are traded on the NYSE under the symbol NSP.

 

 

Page 5 of 12
NRP Reports 2nd Quarter 2007 Results
For additional information, please contact Kathy Hager at 713-751-7555 or khager@nrplp.com. Further information about NRP is available on the partnership’s website at http://www.nrplp.com.
Disclosure of Non-GAAP Financial Measures
Distributable cash flow represents cash flow from operations less actual principal payments and cash reserves set aside for scheduled principal payments on the senior notes. Distributable cash flow is a “non-GAAP financial measure” that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP’s ability to generate cash flows at a level that can sustain or support an increase in quarterly cash distributions paid to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. A reconciliation of distributable cash flow to net cash provided by operating activities is included in the tables attached to this release. Distributable cash flow may not be calculated the same for NRP as other companies.
Forward Looking Statements
This press release may include “forward-looking statements” as defined by the Securities and Exchange Commission. Such statements include the 2007 outlook. 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, decreases in demand for coal; changes in operating conditions and costs; production cuts by our lessees; commodity prices; unanticipated geologic problems; 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.
07-19                                                                                  -Financial statements follow-

 

 

Page 6 of 12
NRP Reports 2nd Quarter 2007 Results
Natural Resource Partners L.P.
Operating Statistics
(In thousands except per ton data)
(Unaudited)
                                 
    Three months ended     For the six months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
Coal Royalties:
                                
Coal royalty revenues:
                                
Appalachia
                               
Northern
   $ 4,353     $ 2,730     $ 7,123     $ 6,038  
Central
     28,339       24,543       58,586       50,385  
Southern
     4,989       5,133       9,028       10,617  
 
                        
Total Appalachia
   $ 37,681     $ 32,406     $ 74,737     $ 67,040  
Illinois Basin
     1,365       1,704       2,479       3,656  
Northern Powder River Basin
     1,687       2,417       4,490       4,941  
 
                        
 
Total
   $ 40,733     $ 36,527     $ 81,706     $ 75,637  
 
                        
 
                                
Coal royalty production (tons):
                                
Appalachia
                               
Northern
     1,901       1,482       3,235       3,214  
Central
     8,855       7,982       18,095       16,176  
Southern
     1,297       1,436       2,330       2,862  
 
                        
Total Appalachia
     12,053       10,900       23,660       22,252  
Illinois Basin
     659       977       1,161       2,140  
Northern Powder River Basin
     861       1,497       2,261       2,998  
 
                        
 
Total
     13,573       13,374       27,082       27,390  
 
                        
 
                                
Average royalty revenue per ton:
                                
Appalachia
                               
Northern
   $ 2.29     $ 1.84     $ 2.20     $ 1.88  
Central
     3.20       3.07       3.24       3.11  
Southern
     3.85       3.58       3.87       3.71  
Total Appalachia
     3.13       2.97       3.16       3.01  
Illinois Basin
     2.07       1.74       2.14       1.71  
Northern Powder River Basin
     1.96       1.61       1.99       1.65  
 
                                
Combined average royalty revenue per ton
   $ 3.00     $ 2.73     $ 3.02     $ 2.76  
 
                                
Aggregates:
                                
Royalty revenues
   $ 1,944       —     $ 3,689       —  
Production:
     1,531       —       2,872       —  
Average base royalty per ton:
   $ 1.27       —     $ 1.28       —  

 

 

Page 7 of 12
NRP Reports 2nd Quarter 2007 Results
Natural Resource Partners L.P.
Consolidated Statements of Income
(In thousands, except per unit data)
                                 
    Three months ended     For the six months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
    (Unaudited)     (Unaudited)  
Revenues:
                                
Coal royalties
   $ 40,733     $ 36,527     $ 81,706     $ 75,637  
Aggregate royalties
     1,944       —       3,689       —  
Coal processing fees
     1,112       —       2,030       —  
Transportation fees
     845               1,306       —  
Oil and gas royalties
     1,278       928       2,536       2,647  
Property taxes
     2,645       1,546       4,873       3,295  
Minimums recognized as revenue
     331       250       785       621  
Override royalties
     1,023       181       2,041       484  
Other
     1,186       1,550       2,338       4,826  
 
                        
Total revenues
     51,097       40,982       101,304       87,510  
Operating costs and expenses:
                                
Depreciation, depletion and amortization
     12,527       7,236       24,279       15,089  
General and administrative
     5,559       3,420       12,193       7,535  
Property, franchise and other taxes
     3,524       2,099       6,625       4,344  
Transportation costs
     27       —       70       —  
Coal royalty and override payments
     382       263       668       954  
 
                        
Total operating costs and expenses
     22,019       13,018       43,835       27,922  
 
                        
Income from operations
     29,078       27,964       57,469       59,588  
Other income (expense)
                                
Interest expense
     (7,133 )     (3,675 )     (14,460 )     (7,293 )
Interest income
     686       755       1,503       1,273  
 
                        
Net income
   $ 22,631     $ 25,044     $ 44,512     $ 53,568  
 
                        
Net income attributable to: (1)
                                
General partner
   $ 3,074     $ 2,253     $ 5,893     $ 4,348  
 
                        
Holders of incentive distribution rights
   $ 1,412     $ 943     $ 2,695     $ 1,764  
 
                        
Limited partners
   $ 18,145     $ 21,848     $ 35,924     $ 47,456  
 
                        
Basic and diluted net income per limited partner unit:
                                
Common
   $ 0.28     $ 0.43     $ 0.56     $ 0.94  
 
                        
Subordinated
   $ 0.28     $ 0.43     $ 0.56     $ 0.94  
 
                        
Class B
   $ 0.28     $ —     $ 0.56     $ —  
 
                        
Weighted average number of units outstanding:
                                
Common
     52,925       33,651       51,914       33,651  
 
                        
Subordinated
     11,354       17,030       11,354       17,030  
 
                        
Class B
     607       —       826       —  
 
                        
 
(1)   Net income is allocated among the limited partners, the general partner and holders of the incentive distribution rights (IDRs) based upon their pro rata share of distributions. The IDRs are allocated 65% to the general partner and the remaining 35% to affiliates of the general partner. The IDRs allocated to the general partner are included in the net income attributable to the general partner.

 

 

Page 8 of 12
NRP Reports 2nd Quarter 2007 Results
Natural Resource Partners L.P.
Statements of Cash Flows
(In thousands)
                                 
    Three months ended     For the six months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
    (Unaudited)     (Unaudited)  
Cash flows from operating activities:
                                
Net income
   $ 22,631     $ 25,044     $ 44,512     $ 53,568  
Adjustments to reconcile net income to net cash provided by operating activities:
                                
Depreciation, depletion and amortization
     12,527       7,236       24,279       15,089  
Non-cash interest charge
     115       91       209       191  
Gain from sale of assets
     —       (458 )     —       (2,634 )
Change in operating assets and liabilities:
                                
Accounts receivable
     1,273       (103 )     (2,799 )     (107 )
Other assets
     336       (25 )     557       243  
Accounts payable and accrued liabilities
     (492 )     (57 )     (294 )     (20 )
Accrued interest
     3,031       (689 )     2,597       1,217  
Deferred revenue
     4,016       1,040       7,917       408  
Accrued incentive plan expenses
     2,562       1,139       (633 )     1,510  
Property, franchise and other taxes payable
     (138 )     (708 )     259       (305 )
 
                        
Net cash provided by operating activities
     45,861       32,510       76,604       69,160  
 
                        
 
Cash flows from investing activities:
                                
Acquisition of land, plant and equipment, coal and other mineral rights
     (18,661 )     (16,438 )     (32,633 )     (51,438 )
Current payable assumed in business combination
     (1,154 )     —       —       —  
Proceeds from sale of timber assets
     —       829       —       4,761  
Cash placed in restricted accounts
     (72 )     —       (6,314 )     —  
 
                        
Net cash used in investing activities
     (19,887 )     (15,609 )     (38,947 )     (46,677 )
 
                        
 
Cash flows from financing activities:
                                
Proceeds from loans
     18,400       —       255,400       50,000  
Deferred financing costs
     (179 )     —       (1,286 )     —  
Repayments of loans
     (9,350 )     (9,350 )     (235,542 )     (24,350 )
Distributions to partners
     (36,338 )     (22,299 )     (70,464 )     (43,204 )
Contribution by general partner
     330       —       2,645       —  
 
                        
Net cash used in financing activities
     (27,137 )     (31,649 )     (49,247 )     (17,554 )
 
                        
Net (decrease) or increase in cash and cash equivalents
     (1,163 )     (14,748 )     (11,590 )     4,929  
Cash and cash equivalents at beginning of period
     55,617       67,368       66,044       47,691  
 
                        
Cash and cash equivalents at end of period
   $ 54,454     $ 52,620     $ 54,454     $ 52,620  
 
                        
 
SUPPLEMENTAL INFORMATION:
                                
Cash paid during the period for interest
   $ 3,979     $ 4,261     $ 11,627     $ 5,861  
 
                        
Non-cash investing activities:
                                
Units issued for assets and liabilities
   $ 7,119     $ —     $ 350,741     $ —  
Liability assumed in business combination
     39       —       1,989       —  

 

 

Page 9 of 12
NRP Reports 2nd Quarter 2007 Results
Natural Resource Partners L.P.
Consolidated Balance Sheets
(In thousands)
                 
    June 30,     December 31,  
    2007     2006  
    (Unaudited)  
ASSETS
                
 
Current assets:
                
Cash and cash equivalents
   $ 54,454     $ 66,044  
Restricted cash
     6,314       —  
Accounts receivable, net of allowance for doubtful accounts
     25,607       23,357  
Accounts receivable – affiliate
     570       21  
Other
     514       1,411  
 
            
Total current assets
     87,459       90,833  
Land
     24,522       17,781  
Plant and equipment, net
     55,245       29,615  
Coal and other mineral rights, net
     1,015,616       798,135  
Intangible assets
     111,511       —  
Loan financing costs, net
     3,300       2,197  
Other assets, net
     1,032       932  
 
            
Total assets
   $ 1,298,685     $ 939,493  
 
            
 
LIABILITIES AND PARTNERS’ CAPITAL
                
 
Current liabilities:
                
Accounts payable
   $ 2,736     $ 1,041  
Accounts payable – affiliate
     105       105  
Current portion of long-term debt
     9,542       9,542  
Accrued incentive plan expenses – current portion
     4,127       5,418  
Property, franchise and other taxes payable
     4,589       4,330  
Accrued interest
     6,443       3,846  
 
            
Total current liabilities
     27,542       24,282  
Deferred revenue
     28,571       20,654  
Asset retirement obligation
     39       —  
Accrued incentive plan expenses
     5,237       4,579  
Long-term debt
     474,149       454,291  
Partners’ capital:
                
Common units
     667,095       338,912  
Subordinated units
     79,973       83,772  
General partner’s interest
     16,412       12,138  
Holders of incentive distribution rights
     392       1,616  
Accumulated other comprehensive loss
     (725 )     (751 )
 
            
Total partners’ capital
     763,147       435,687  
 
            
Total liabilities and partners’ capital
   $ 1,298,685     $ 939,493  
 
            

 

 

Page 10 of 12
NRP Reports 2nd Quarter 2007 Results
Natural Resource Partners L.P.
Reconciliation of GAAP “Net cash provided by operating activities"
To Non-GAAP “Distributable cash flow"
(In thousands)
(Unaudited)
                                 
    Three months ended     For the six months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
Cash flow from operations
   $ 45,861     $ 32,510     $ 76,604     $ 69,160  
Less scheduled principal payments
     (9,350 )     (9,350 )     (9,350 )     (9,350 )
Less reserves for future principal payments
     (2,400 )     (2,350 )     (4,800 )     (4,700 )
Add reserves used for scheduled principal payments
     9,400       9,400       9,400       9,400  
 
                        
Distributable cash flow
   $ 43,511     $ 30,210     $ 71,854     $ 64,510  
 
                        

 

 

Page 11 of 12
NRP Reports 2nd Quarter 2007 Results
Natural Resource Partners L.P.
Updated Guidance
August 6, 2007
(dollars and tons in millions except per unit amounts)
                         
    Full Year 2007  
            (Range)          
Regional Statistics
                       
Coal royalty production (tons)
                       
Northern Appalachia
     7.0       —       7.5  
Central Appalachia
     35.0       —       38.0  
Southern Appalachia
     4.5       —       5.5  
 
                    
Appalachia
     46.5       —       51.0  
Illinois Basin
     2.5       —       4.0  
Northern Powder River Basin
     5.0       —       6.0  
 
                    
 
Total
     54.0       —       61.0  
 
Aggregate production (tons)
     5.0       —       5.5  
 
Coal royalty revenues
                       
Northern Appalachia
   $ 15.5       —     $ 17.5  
Central Appalachia
     113.0       —       117.0  
Southern Appalachia
     20.0       —       22.0  
 
                    
Appalachia
   $ 148.5       —     $ 156.5  
Illinois Basin
     6.5       —       8.5  
Northern Powder River Basin
     9.0       —       10.0  
 
                    
Total
   $ 164.0       —     $ 175.0  
 
Revenues
                       
Coal royalty revenues
   $ 164.0       —       175.0  
Aggregate revenues
     7.0       —       7.5  
Coal processing and transportation fees
     10.0       —       15.0  
Other revenues (1)
     24.0       —       26.0  
 
                    
Total Revenues
   $ 205.0       —     $ 223.5  
 
Expenses
                       
Coal transportation expenses
   $ 0.2       —     $ 0.6  
Depreciation, depletion, and amortization
     48.0       —       58.0  
General and administrative
     20.0       —       23.0  
Other expenses (2)
     12.0       —       14.0  
Total operating expenses
     80.2               95.6  
 
Interest expense (net)
   $ 24.0       —     $ 26.0  
 
Net income
   $ 95.0             $ 105.0  
 
Net income per unit
   $ 1.20       —     $ 1.35  
 
Principal payments
   $ 13.4       —     $ 13.4  
 
Distributable cash flow (3)
   $ 135.0       —     $ 150.0  

 

 

Page 12 of 12
NRP Reports 2nd Quarter 2007 Results
 
(1)   Other revenues consist of minimums recognized as revenue, oil and gas revenues, property taxes, override royalties, wheelage, rentals and timber.
 
(2)   Other expenses include property, franchise and other taxes as well as coal royalty and override payments.
 
(3)   Distributable cash flow represents net income plus depreciation, depletion and amortization minus scheduled and reserved for principal payments on NRP senior notes. Distributable cash flow is a “non-GAAP financial measure” that is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Distributable cash flow is a significant liquidity metric that is an indicator of NRP’s ability to generate cash flows at a level that can sustain or support an increase in quarterly cash distributions paid to its partners. Distributable cash flow is also the quantitative standard used throughout the investment community with respect to publicly-traded partnerships. Distributable cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. We believe that “net cash provided by operating activities” would be the most comparable financial measure to distributable cash. However, due to the substantial uncertainties associated with forecasting future changes to operating assets and liabilities, we cannot provide guidance on forward-looking net cash provided by operating activities or provide reconciliations of distributable cash flow to that measure.
-end-