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Natural Resource Partners L.P. Reports Third Quarter 2021 Results and Declares Third Quarter 2021 Distributions November 3 , 2021 HOUSTON -- ( BUSINESS WIRE ) -- Natural Resource Partners L.P. ( NYSE : NRP ) today reported third quarter 2021 results as follows : For the Three Last Twelve Months Ended Months Ended ( In thousands ) ( Unaudited ) Operating cash flow Free cash flow ( 1 ) Cash flow cushion ( last twelve months ) ( 1 ) September 30 , 2021 30,059 $ 79,798 30,599 81,080 3,740 Net income Adjusted EBITDA ( 1 ) 29,498 $ 37,717 67,948 119,421 ( 1 ) See " Non - GAAP Financial Measures " and reconciliation tables at the end of this release . " Our strong performance in the third quarter reflects continued global economic recovery and strong demand for metallurgical coal , thermal coal and soda ash , and we expect conditions to remain favorable over the near and intermediate term , " said Craig Nunez , NRP's President & Chief Operating Officer . " We remain committed to using our robust free cash flow to reduce debt and continue to believe our long - term strategy of de - risking the Partnership in this manner is the best means to maximize unitholder value . In addition , we returned $ 5.6 million of distributions to common unitholders in the third quarter and have paid out $ 22.2 million to common unitholders over the last twelve months . " Mr. Nunez continued , " I am also pleased to report that we generated and sold $ 13.8 million in carbon offset credits in October by sequestering over 1 million tonnes of carbon dioxide in our forestlands . This transaction will be reflected in our fourth quarter results and is the first tangible result of our ongoing initiative to generate cash flow from alternative revenue sources we have told you about in previous quarters . We continue to pursue additional alternative revenue projects that have the potential to provide important benefits to the environment and add significant value to NRP over the coming years . " NRP's liquidity was $ 219.0 million at September 30 , 2021 , consisting of $ 119.0 million of cash and $ 100.0 million of borrowing capacity available under its revolving credit facility . NRP announced today that the Board of Directors of its general partner declared a third quarter 2021 cash distribution of $ 0.45 per common unit of NRP to be paid on November 23 , 2021 to unitholders of record on November 16 , 2021. In addition , the Board declared an $ 8.0 million distribution on the preferred units , which will be paid one - half in cash and one - half in kind through the issuance of additional preferred units . The preferred unit distribution includes interest on previously paid - in - kind units and will also be paid one - half in cash and one - half in kind through the issuance of additional preferred units . Segment Performance In the third quarter of 2021 net income increased $ 17.4 million and free cash flow increased $ 5.6 million as compared to the prior year period primarily due to stronger metallurgical coal demand and pricing in the third quarter of 2021. Approximately 65 % of coal royalty revenues and approximately 45 % of coal royalty sales volumes were derived from metallurgical coal in the third quarter of 2021 .