Common and Preferred Unit Distributions

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Common and Preferred Unit Distributions

Common and Preferred Unit Distributions

The Partnership makes cash distributions to common and preferred unitholders on a quarterly basis, subject to approval by the Board of Directors of GP Natural Resource Partners LLC (the "Board of Directors"). NRP recognizes both common unit and preferred unit distributions on the date the distribution is declared.

Distributions made on the common units and the general partner's general partner ("GP") interest are made on a pro-rata basis in accordance with their relative percentage interests in the Partnership. The general partner is entitled to receive 2% of such distributions.

Income (loss) available to common unitholders and the general partner is reduced by preferred unit distributions that accumulated during the period. NRP reduced net income (loss) available to common unitholders and the general partner by $8.0 million and $7.5 million during the three months ended September 30, 2021 and 2020, respectively, and $23.5 million and $22.6 million during the nine months ended September 30, 2021 and 2020, respectively, as a result of accumulated preferred unit distributions earned during the period. In August 2021, the Partnership paid in kind one-half of the preferred unit distribution related to the three months ended June 30, 2021, which resulted in the issuance of an additional 3,921 preferred units during the three months ended September 30, 2021. In May 2021, the Partnership paid in kind one-half of the preferred unit distribution related to the three months ended March 31, 2021, which resulted in the issuance of an additional 3,863 preferred units during the three months ended June 30, 2021. In February 2021, the Partnership paid in kind one-half of the preferred unit distribution related to the three months ended December 31, 2020, which resulted in the issuance of an additional 3,806 preferred units during the three months ended March 31, 2021. In May 2020, the Partnership paid in kind one-half of the preferred unit distribution related to the three months ended March 31, 2020, and then redeemed all of these outstanding paid in kind preferred units on June 30, 2020.

The following table shows the cash distributions declared and paid to common and preferred unitholders during the nine months ended September 30, 2021 and 2020, respectively:

		Common Units				Preferred Units
Date Paid	Period Covered by Distribution	Distribution per Unit		Total Distribution (1) (In thousands)		Distribution per Unit		Total Distribution (In thousands)
2021
February 2021	October 1 - December 31, 2020	$	0.45	$	5,630	$	15.00	$	3,806
May 2021	January 1 - March 31, 2021	0.45		5,672		15.00		3,864
August 2021	April 1 - June 30, 2020	0.45		5,671		15.00		3,921
2020
February 2020	October 1 - December 31, 2019	$	0.45	$	5,630	$	30.00	$	7,500
May 2020	January 1 - March 31, 2020	—		—		15.00		3,750
June 2020 (2)	January 1 - March 31, 2020	—		—		15.45		3,863
August 2020	April 1 - June 30, 2020	0.45		5,630		30.00		7,500

(1)Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest.

(2)Redemption of preferred units paid in kind plus accrued interest.