Equity Investment

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Investment

3. Equity Investment

We account for our 49% investment in OCI Wyoming LLC (“OCI Wyoming”) using the equity method of accounting. In the three months ended March 31, 2015 and 2014, OCI Wyoming distributed $10.9 million and $11.6 million to us, respectively. The income allocated to NRP’s equity interests and amortization of fair value adjustments are summarized as follows (in thousands):

	Three Months Ended March 31,
	2015			2014
	(Unaudited)
Income allocation to NRP’s equity interests	$	13,727		$	11,276
Amortization of basis difference	$	(1,204	)	$	(1,497	)
Equity in earnings of unconsolidated investment	$	12,523		$	9,779

The financial position of OCI Wyoming at March 31, 2015 and December 31, 2014 and the results of OCI Wyoming’s operations for the three months ended March 31, 2015 and 2014 are summarized as follows (in thousands):

	Three Months Ended March 31,
	2015		2014
	(Unaudited)
Sales	$	120,430	$	116,240
Gross profit	$	32,724	$	27,119
Net income	$	28,014	$	23,012
	March 31, 2015		December 31, 2014
	(Unaudited)
Current assets	$	203,953	$	200,622
Noncurrent assets	$	201,746	$	202,282
Current liabilities	$	46,656	$	47,704
Noncurrent liabilities	$	149,262	$	149,192

The difference between the amount at which our investment in OCI Wyoming is carried and the amount of underlying equity in OCI Wyoming’s net assets was $160.5 million and $162.7 million as of March 31, 2015 and December 31, 2014, respectively. The excess that relates to property, plant and equipment is being amortized into income over a weighted average of 28 years. The excess that relates to a right to mine asset is being amortized into income using the units of production method.

The purchase agreement for the acquisition of our interest in OCI Wyoming requires us to pay additional contingent consideration to Anadarko to the extent certain performance criteria described in the purchase agreement are met at OCI Wyoming in any of the years 2013, 2014 or 2015. During the first quarter of 2015, the Partnership paid $3.8 million in contingent consideration to Anadarko, and during the first quarter of 2014 the Partnership paid $0.5 million in contingent consideration. As of March 31, 2015, the Partnership has estimated and recorded $8.8 million as an accrued liability payable in the first quarter of 2016 with respect to 2015. The Partnership has no obligation to pay contingent consideration with respect to any period after 2015.