NPR(NRP)

Search documents
NRP Stone to Merge with and Rebrand as Uplift Training
Accessnewswire· 2025-10-01 11:02
Planned merger will unify education, workforce development, and R&D under a single brand PARK CITY, UTAH / ACCESS Newswire / October 1, 2025 / NRP Stone, Inc. (OTCID:NRPI) today announced its intention to merge with its wholly owned subsidiary, Uplift Training, Inc., a Wyoming corporation. Upon completion of the transaction, the company is expected to operate under the Uplift Training name, consolidating the Company's initiatives across education, workforce development, and research & development under one ...
Natural Resource Partners L.P. (NRP) Reports Positives In Its Q2 2025 Earning Report
Yahoo Finance· 2025-09-19 13:21
Core Insights - Natural Resource Partners L.P. (NRP) demonstrated resilience in Q2 2025 earnings despite challenging commodity market conditions, reporting $34 million in net income and $46 million in free cash flow [2][3] - The company maintained its quarterly dividend of $0.75 per common unit, emphasizing stability and a commitment to a deleveraging strategy aimed at paying off nearly all debt by mid-2026 [4] Financial Performance - NRP's earnings were supported by $40 million in mineral rights revenues, although the soda ash segment faced challenges with only $3 million in net income due to global oversupply and weak demand [3] - The partnership's royalty-based structure and cost control measures contributed to its ability to generate steady cash flow during cyclical lows in the coal and soda ash markets [4] Business Model - NRP generates royalties from the ownership and leasing of mineral resources, including coal, soda ash, trona, and aggregates, in the United States [5]
Natural Resource Partners L.P. (NRP): A Bull Case Theory
Yahoo Finance· 2025-09-17 15:45
Group 1 - Natural Resource Partners L.P. (NRP) is a master limited partnership focused on mineral rights and infrastructure, primarily generating income from coal production, with 35% of revenues derived from infrastructure fees [2][4] - The company holds a non-controlling interest in the Sisecam soda ash operation, which has seen a decline in income from $73 million to $16 million, but still has recovery potential [3] - Current free cash flow is approximately $150 million, indicating a sustainable baseline compared to peak operating income exceeding $300 million [3] Group 2 - Management is implementing a disciplined deleveraging strategy aimed at achieving zero debt within 12 months, after which capital returns through dividends and buybacks are expected to accelerate [4] - NRP is projected to deliver a double-digit free cash flow yield, with dividends anticipated to increase post-debt repayment [4][5] - The investment opportunity is enhanced by the avoidance of MLPs by many investors due to tax complexities, leading to potential mispricing [5] Group 3 - Despite market challenges, NRP generated $100 million in operating cash flow during a severe downturn in 2020, reflecting a 7% yield at current valuations [4] - The company benefits from nominal royalty pricing, providing inflation protection and potential upside from carbon capture revenues [4] - The stock price has appreciated approximately 2.4% since previous bullish coverage, with ongoing expectations for dividend reinstatement and robust cash flow [6]
NRP Upgraded to Neutral as Debt Decline Balances Pricing Pressures
ZACKS· 2025-09-16 16:56
Core Viewpoint - Natural Resource Partners L.P. (NRP) has been upgraded to "Neutral" due to its improving balance sheet and consistent cash flow, which are mitigating the impacts of weak commodity pricing [1][8]. Financial Performance - NRP reported $34 million in net income and $46 million of free cash flow in Q2 2025, leading to a trailing 12-month free cash flow exceeding $200 million [1]. - The partnership's leverage has been reduced to 0.5X EBITDA, with plans to retire all debt by mid-2026, enhancing its financial position and reducing interest costs [2]. Market Conditions - Despite improvements in financial structure, NRP faces significant market headwinds, with coal revenues declining sharply due to falling pricing and volumes, particularly in metallurgical coal linked to weak global steel demand [3]. - The soda ash market is also under pressure from global oversupply and sluggish demand in construction and automotive sectors, leading to reduced income from Sisecam Wyoming [4]. Strategic Positioning - NRP's financial strengthening allows for a refocus on capital returns, with future cash directed towards increased unitholder distributions, opportunistic repurchases of common units, and selective acquisitions if market conditions are favorable [6]. - The partnership has maintained quarterly distributions at 75 cents per unit, reflecting management's confidence in cash flow despite current market challenges [7]. Rating Rationale - The upgrade to "Neutral" reflects a balance between ongoing commodity price challenges and a significantly improved financial position, with deleveraging enhancing liquidity and providing a clearer path for capital returns [8][9].
Natural Resource Partners Q2 Earnings Dip Y/Y on Weaker Coal, Soda Ash
ZACKS· 2025-08-08 14:25
Core Viewpoint - Natural Resource Partners L.P. (NRP) reported a decline in net income and revenues for Q2 2025, primarily due to weaker coal and soda ash prices, but still managed to generate significant free cash flow [2][8][13] Financial Performance - NRP's net income for Q2 2025 was $34.2 million, a decrease of 25.7% from $46.1 million in the same quarter last year [2] - Total revenues fell 23.6% year over year to $50.1 million, influenced by lower metallurgical and thermal coal prices and reduced soda ash sales prices [2][8] - Diluted earnings per common unit increased to $2.52 from $2.29 in the prior-year quarter [2] - Operating cash flow decreased to $45.6 million from $56.6 million, while free cash flow dropped to $46.3 million from $57.3 million [2] Segment Performance - The Mineral Rights segment, the largest contributor, saw net income decline by $13 million to $39.7 million, with coal royalty revenues per ton averaging $5.17, down from $5.98 a year ago [3] - The Soda Ash segment recorded net income of $2.5 million, down $1.1 million due to lower sales prices amid global oversupply [4] - Corporate and Financing segment improved net income by $2.3 million, aided by lower interest expenses [5] Management Insights - Management emphasized the resilience of free cash flow generation, reporting $46 million for the quarter and $203 million over the last 12 months, attributed to a decade-long deleveraging strategy [6] - Expectations are set to pay off nearly all debt by mid-2026 and to begin increasing unitholder distributions by August 2026 [7][10] Market Conditions - Current market conditions for coal and soda ash remain challenging, with excess supply and low prices expected to persist [11] - Factors contributing to revenue and profit declines include stagnant steel demand, high thermal coal inventories, and reduced soda ash demand due to sluggish construction activity [8] Future Outlook - NRP is on track to eliminate nearly all debt by mid-2026, which would allow for significant increases in distributions starting August 2026 [10] - Management anticipates that metallurgical and thermal coal pricing will remain muted through year-end, with soda ash markets unlikely to recover until supply rationalization occurs [11] Other Developments - NRP declared a second-quarter 2025 cash distribution of 75 cents per common unit, consistent with the first quarter of 2025 [12] - There has been no significant progress in carbon-neutral initiatives during the period, although long-term opportunities are still recognized [12]
NPR(NRP) - 2025 Q2 - Quarterly Report
2025-08-06 15:39
[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The consolidated financial statements present the company's financial position, results of operations, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) A significant reduction in long-term debt drove an increase in partners' capital despite a slight decrease in total assets Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$761,966** | **$772,907** | | Total Current Assets | $60,721 | $63,874 | | Mineral rights, net | $373,717 | $379,638 | | Equity in unconsolidated investment | $258,498 | $257,355 | | **Total Liabilities** | **$171,521** | **$221,799** | | Total Current Liabilities | $27,643 | $31,865 | | Long-term debt, net | $87,112 | $127,876 | | **Total Partners' Capital** | **$590,445** | **$551,108** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Revenues and net income declined year-over-year for both the second quarter and the first six months of 2025 Statement of Comprehensive Income Highlights (in thousands, except per unit data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues and other income | $50,101 | $65,540 | $110,639 | $141,954 | | Income from operations | $36,591 | $50,413 | $79,512 | $110,113 | | Net income | $34,211 | $46,064 | $74,464 | $102,277 | | Net income attributable to common unitholders | $33,527 | $30,336 | $72,975 | $83,318 | | Diluted EPS | $2.52 | $2.29 | $5.49 | $6.17 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased significantly year-over-year, while cash used in financing activities was lower Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $80,003 | $128,128 | | Net cash provided by investing activities | $2,391 | $6,114 | | Net cash used in financing activities | ($82,494) | ($113,891) | | **Net (decrease) increase in cash** | **($100)** | **$20,351** | | Cash and cash equivalents at end of period | $30,344 | $32,340 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail segment performance, debt structure, major customer concentrations, and accounting policies - The Partnership operates in two segments: **Mineral Rights** (owning and leasing mineral properties) and **Soda Ash** (a 49% interest in Sisecam Wyoming)[20](index=20&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) Mineral Rights Segment Revenue by Source - Six Months Ended June 30 (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Coal royalty revenues | $67,041 | $86,503 | | Oil and gas royalty revenues | $4,425 | $5,639 | | Carbon neutral revenues | $885 | $4,361 | | Other revenues | $23,149 | $23,460 | - As of June 30, 2025, total debt at face value was **$101.5 million**, down from $142.3 million at year-end 2024, and the company was in compliance with all debt covenants[54](index=54&type=chunk)[55](index=55&type=chunk) - For the first six months of 2025, three customers accounted for **26%**, **26%**, and **8%** of total revenues, respectively, indicating significant customer concentration[70](index=70&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses lower commodity prices impacting revenue, while maintaining a strong liquidity position and low leverage [Executive Overview](index=27&type=section&id=Executive%20Overview) The company operates through its Mineral Rights and Soda Ash segments, which generated distinct revenue streams - The business is organized into two operating segments: **Mineral Rights** and **Soda Ash**[89](index=89&type=chunk)[90](index=90&type=chunk) Financial Summary by Segment - Six Months Ended June 30, 2025 (in thousands) | Segment | Revenues and other income | Net income (loss) | Adjusted EBITDA | | :--- | :--- | :--- | :--- | | Mineral Rights | $103,503 | $84,899 | $92,652 | | Soda Ash | $7,136 | $7,052 | $7,756 | | Corporate and Financing | $— | ($17,487) | ($12,429) | | **Total** | **$110,639** | **$74,464** | **$87,979** | [Current Results/Market Commentary](index=28&type=section&id=Current%20Results/Market%20Commentary) Weak metallurgical coal and soda ash prices drove revenue declines, with muted pricing expected to persist - Generated **$81.4 million of free cash flow** during the first six months of 2025 and ended the quarter with a leverage ratio of **0.5x**[94](index=94&type=chunk) - Metallurgical and thermal coal prices remained weak, and management expects **muted pricing for the remainder of 2025** due to stagnant global steel demand and high domestic thermal coal inventories[97](index=97&type=chunk) - The soda ash market is **significantly oversupplied**, leading to a weak pricing environment that is expected to continue, resulting in lower distributions from Sisecam Wyoming[100](index=100&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Total revenues and Adjusted EBITDA decreased significantly in Q2 and the first half of 2025 compared to the prior year Revenue by Segment (in thousands) | Operating Segment | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mineral Rights | $47,575 | $61,895 | (23)% | $103,503 | $132,859 | (22)% | | Soda Ash | $2,526 | $3,645 | (31)% | $7,136 | $9,095 | (22)% | | **Total** | **$50,101** | **$65,540** | **(24)%** | **$110,639** | **$141,954** | **(22)%** | - The decrease in Q2 coal royalty revenues was primarily due to lower metallurgical coal sales prices and volumes, with metallurgical coal representing approximately **70% of coal royalty revenues** in the quarter[103](index=103&type=chunk) Adjusted EBITDA Reconciliation - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $74,464 | $102,277 | | Adjustments | $13,515 | $28,513 | | **Adjusted EBITDA** | **$87,979** | **$130,790** | [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The Partnership maintained strong liquidity and a low leverage ratio despite a year-over-year decrease in operating cash flow - Total liquidity as of June 30, 2025 was **$157.5 million**, consisting of $30.3 million in cash and $127.1 million in available borrowing capacity[119](index=119&type=chunk) Leverage Ratio Calculation as of June 30, 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Last 12 Months Adjusted EBITDA | $192,655 | | Debt at June 30, 2025 | $101,547 | | **Leverage Ratio** | **0.5x** | - Cash flows from operating activities **decreased by $48.1 million** in the first six months of 2025 compared to the same period in 2024, falling from $128.1 million to $80.0 million[120](index=120&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces significant market risks from volatile commodity prices and variable interest rates - The business is substantially dependent on prevailing commodity prices for **coal and soda ash**, which have been historically volatile and can significantly impact financial results[129](index=129&type=chunk)[131](index=131&type=chunk) - The company is exposed to interest rate risk on its Opco Credit Facility; with **$72.9 million outstanding**, a 1% rate increase would result in an approximate **$0.7 million increase** in annual interest expense[132](index=132&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the reporting period end - Based on an evaluation, the CEO and CFO concluded that the company's **disclosure controls and procedures are effective**[133](index=133&type=chunk) - **No material changes** in internal control over financial reporting occurred during the first six months of 2025[134](index=134&type=chunk) [Part II. Other Information](index=40&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to have a material effect on the company's financial condition or operations - The company states that ongoing legal proceedings from the ordinary course of business are **not expected to have a material impact**[135](index=135&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) There were no material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K - **No material changes** from the risk factors disclosed in the 2024 Form 10-K were reported[136](index=136&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities were reported for the period - **No unregistered sales** of equity securities were reported[137](index=137&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including CEO/CFO certifications and XBRL data files - The report includes standard exhibits such as **Sarbanes-Oxley certifications** and Inline XBRL documents[141](index=141&type=chunk)
NPR(NRP) - 2025 Q2 - Earnings Call Transcript
2025-08-06 14:00
Financial Data and Key Metrics Changes - In Q2 2025, the company generated $46 million of free cash flow and $203 million over the last twelve months, despite key commodities trading at or near operators' cost of production [6][7] - The net income for Q2 2025 was $34 million, with the mineral rights segment contributing $40 million in net income, a decrease of $13 million compared to the prior year [13] Business Line Data and Key Metrics Changes - The mineral rights segment's operating and free cash flow each decreased by $11 million year-over-year due to weaker coal markets [13] - The soda ash segment generated $3 million in net income, down $1 million from the previous year, with operating and free cash flow each decreasing by $3 million due to lower sales prices [14] Market Data and Key Metrics Changes - The metallurgical coal market remains under pressure with soft demand for steel and high coal inventories, leading to operators selling coal at or near production costs [7][8] - The soda ash market is significantly oversupplied, with prices below production costs for most producers, and expected to remain low until demand rebounds or supply rationalizes [10][11] Company Strategy and Development Direction - The company aims to pay off substantially all debt by mid-next year and increase unitholder distributions starting next August [7][12] - Future cash priorities post-deleveraging will focus on unitholder distributions, unit repurchases, and opportunistic investments [21] Management's Comments on Operating Environment and Future Outlook - Management noted that many operators are in better financial shape than in previous downturns, which bodes well for the industry [8][9] - The current market for key commodities is as negative as ever, but the company continues to generate robust free cash flow [11] Other Important Information - The company has not made significant progress on COVID carbon neutral initiatives, with the market for most C and I activities remaining stagnant [11] Q&A Session Summary Question: Are there opportunities to acquire additional royalty or soda ash assets post-debt repayment? - Management indicated that while the mineral rights market is fragmented and not very active, there are always possibilities for one-off transactions [19][20] Question: What are the priorities for cash after achieving a debt-free status? - Management stated that priorities will be unitholder distributions, unit repurchases at discounts, and opportunistic investments in assets at bargain prices [21] Question: Is there potential for other mineral opportunities across the company's land? - Management acknowledged the possibility of future opportunities but did not specify any current targets [22]
NPR(NRP) - 2025 Q2 - Quarterly Results
2025-08-06 11:36
[Natural Resource Partners L.P. Q2 2025 Earnings Release](index=1&type=section&id=Natural%20Resource%20Partners%20L.P.%20Q2%202025%20Earnings%20Release) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company generated $46.3 million in free cash flow, declared a $0.75 per unit distribution, and reduced remaining debt to $102 million Q2 2025 Key Financial Metrics | Metric | For the Three Months Ended June 30, 2025 | Last Twelve Months Ended June 30, 2025 | | :--- | :--- | :--- | | Net income | $34.2 million | $155.8 million | | Operating cash flow | $45.6 million | $200.4 million | | Free cash flow | $46.3 million | $203.1 million | - NRP declared a second quarter 2025 cash distribution of **$0.75 per common unit**, consistent with the first quarter's distribution[3](index=3&type=chunk)[4](index=4&type=chunk) - The company continues to make progress towards its goal of paying off all remaining debt, which now stands at **$102 million**[3](index=3&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Segment performance was mixed, with declines in Mineral Rights and Soda Ash offset by improvements in the Corporate and Financing segment [Mineral Rights](index=2&type=section&id=Mineral%20Rights) The Mineral Rights segment's net income decreased by $13.0 million year-over-year due to lower metallurgical coal sales prices and volumes - Net income, operating cash flow, and free cash flow decreased by **$13.0 million**, **$10.7 million**, and **$10.6 million** respectively, compared to the prior year period[5](index=5&type=chunk) - The market outlook is weak, with expectations of **muted pricing for both metallurgical and thermal coal** for the remainder of 2025[6](index=6&type=chunk) - No significant developments occurred regarding carbon neutral revenue activities, though NRP believes its asset footprint provides future opportunities with minimal capital investment[7](index=7&type=chunk) [Soda Ash](index=2&type=section&id=Soda%20Ash) The Soda Ash segment's net income declined by $1.1 million due to lower sales prices amid a significantly oversupplied global market - Net income decreased by **$1.1 million** year-over-year due to lower sales prices; operating and free cash flow each decreased by **$2.7 million**[8](index=8&type=chunk) - The market is **significantly oversupplied** due to increased global capacity and weakening demand from construction, automotive, and solar panel sectors[9](index=9&type=chunk) - NRP expects distributions from Sisecam Wyoming to **remain below historical norms** for the foreseeable future[9](index=9&type=chunk) [Corporate and Financing](index=2&type=section&id=Corporate%20and%20Financing) This segment's net income improved by $2.3 million year-over-year, driven by lower interest expenses from debt reduction efforts - Net income, operating cash flow, and free cash flow each increased by **$2.3 million** compared to Q2 2024, mainly due to lower interest expense[10](index=10&type=chunk) Liquidity and Leverage | Metric | Value as of June 30, 2025 | | :--- | :--- | | Available Liquidity | $157.5 million | | Cash and cash equivalents | $30.3 million | | Revolver Capacity | $127.1 million | | Consolidated Leverage Ratio | 0.5x | [Financial Statements](index=6&type=section&id=Financial%20Statements) Consolidated statements show year-over-year decreases in revenues and net income, driven by weaker commodity markets [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 total revenues were $50.1 million and net income was $34.2 million, both down from the prior-year period Q2 2025 vs. Q2 2024 Income Statement Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenues and other income | $50,101 | $65,540 | | Income from operations | $36,591 | $50,413 | | Net income | $34,211 | $46,064 | | Diluted net income per common unit | $2.52 | $2.29 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was $45.6 million, while financing activities used $47.6 million for debt repayments and distributions Q2 2025 vs. Q2 2024 Cash Flow Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $45,579 | $56,629 | | Net cash provided by investing activities | $1,444 | $5,302 | | Net cash used in financing activities | $(47,555) | $(40,581) | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet reflects total assets of $762.0 million and a significant reduction in net long-term debt to $87.1 million Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $60,721 | $63,874 | | Total assets | $761,966 | $772,907 | | Total current liabilities | $27,643 | $31,865 | | Long-term debt, net | $87,112 | $127,876 | | Total liabilities | $171,521 | $221,799 | | Total partners' capital | $590,445 | $551,108 | [Segment Financial Results & Operating Statistics](index=11&type=section&id=Segment%20Financial%20Results%20%26%20Operating%20Statistics) The Mineral Rights segment's Q2 net income fell to $39.7 million, impacted by lower coal sales volumes and royalty revenues per ton Segment Net Income (Loss) for Q2 (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Mineral Rights | $39,691 | $52,729 | | Soda Ash | $2,502 | $3,619 | | Corporate and Financing | $(7,982) | $(10,284) | Mineral Rights Operating Statistics for Q2 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total coal sales volumes (thousand tons) | 6,114 | 6,638 | | Combined average coal royalty revenue per ton | $5.17 | $5.98 | [Non-GAAP Financial Measures & Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company reports non-GAAP measures showing $203.1 million in LTM Free Cash Flow and an improved leverage ratio of 0.5x [Definitions of Non-GAAP Measures](index=4&type=section&id=Definitions%20of%20Non-GAAP%20Measures) NRP defines non-GAAP measures like Adjusted EBITDA, DCF, FCF, and Leverage Ratio to provide additional financial insight - Adjusted EBITDA is used to assess the financial performance of assets without regard to financing methods, capital structure, or historical cost basis[19](index=19&type=chunk) - Distributable Cash Flow (DCF) and Free Cash Flow (FCF) are supplemental liquidity measures used to assess the ability to make cash distributions and repay debt[20](index=20&type=chunk)[21](index=21&type=chunk) - Leverage Ratio (Debt / LTM Adjusted EBITDA) is used to evaluate and monitor indebtedness relative to the ability to service that debt[22](index=22&type=chunk) [Reconciliation Tables](index=15&type=section&id=Reconciliation%20Tables) Reconciliations show LTM Adjusted EBITDA of $192.7 million and an improved leverage ratio of 0.5x, down from 0.7x a year prior LTM Adjusted EBITDA and Leverage Ratio (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | LTM Adjusted EBITDA | $192.7 million | $289.7 million | | Debt | $101.5 million | $210.7 million | | Leverage Ratio | 0.5x | 0.7x | LTM Free Cash Flow (as of June 30, 2025) | Metric | Amount | | :--- | :--- | | LTM Net cash provided by operating activities | $200.4 million | | LTM Free cash flow | $203.1 million |
NPR(NRP) - 2025 Q1 - Quarterly Report
2025-05-06 16:42
Revenue Performance - For the three months ended March 31, 2025, total revenues decreased by $15.9 million, or 21%, to $60.5 million compared to $76.4 million in the prior year period[86]. - The Mineral Rights segment reported revenues of $55.9 million, a decrease of $15.0 million, or 21%, primarily due to lower metallurgical coal sales prices and volumes[90]. - The Soda Ash segment generated revenues of $4.6 million, down $0.8 million, or 15%, attributed to an increased international sales mix[93]. - Coal royalty revenues decreased by $11.3 million, or 24%, to $35.5 million in Q1 2025 primarily due to lower metallurgical coal sales prices and volumes[97]. - Other revenues decreased by $4.8 million, or 23%, primarily due to declines in carbon neutral revenues and oil and gas royalty revenues[98]. - The Soda Ash segment revenues decreased by $0.8 million due to an increased international sales mix in Q1 2025[99]. - Coal royalty revenues from the Appalachia region decreased by $13.5 million, or 37%, to $23.3 million in Q1 2025 compared to Q1 2024[96]. Cash Flow and Liquidity - Operating cash flow for the quarter was $34.4 million, while free cash flow was $35.1 million[88]. - As of March 31, 2025, the company had liquidity of $120.5 million, consisting of $30.9 million in cash and $89.6 million in available borrowing capacity[88]. - Free cash flow decreased by $37.0 million, or 51%, to $35.1 million in Q1 2025 compared to Q1 2024[101]. - Cash flows from operating activities decreased by $37.1 million, from $71.5 million in Q1 2024 to $34.4 million in Q1 2025, primarily due to reduced cash flow in the Mineral Rights and Soda Ash segments[103]. - Total liquidity as of March 31, 2025, was $120.5 million, comprising $30.9 million in cash and cash equivalents and $89.6 million in borrowing capacity[102]. Debt and Financial Ratios - The leverage ratio at the end of the quarter was 0.7x, indicating a stable debt position relative to earnings[88]. - Total debt as of March 31, 2025, was $138.8 million, down from $142.1 million as of December 31, 2024[106]. - The leverage ratio as of March 31, 2025, was 0.7x, indicating a stable debt position relative to earnings[102]. - The company has been compliant with financial covenants in its debt agreements, ensuring no off-balance sheet risks from unconsolidated entities[106][107]. Market Conditions and Outlook - The company expects continued price support for coal due to elevated input cost inflation and limited access to capital, despite a muted pricing outlook[91]. - The soda ash market is facing challenges from increased global capacity and weakening demand, with expectations for lower distributions from Sisecam Wyoming in the near future[94]. - The market price volatility of coal and soda ash significantly impacts revenue and financial stability, with potential impairments if prices decline[112][114]. Special Distributions and Shareholder Returns - In February 2025, the company paid a cash distribution of $0.75 per common unit and a special distribution of $1.21 per common unit in March 2025[89]. Carbon Neutral Initiatives - The company is exploring carbon neutral revenue opportunities, including carbon sequestration and renewable energy generation, leveraging its extensive mineral rights[92]. Performance Metrics - Adjusted EBITDA decreased by $27.9 million, or 38%, to $45.3 million in Q1 2025 compared to Q1 2024, driven by lower revenues in the Mineral Rights segment[100]. - Operating cash flow decreased by $26.5 million, or 38%, to $43.2 million in Q1 2025 compared to Q1 2024, primarily due to lower metallurgical coal sales prices and volumes[101]. - The combined average coal royalty revenue per ton decreased by $1.76, or 29%, to $4.36 in Q1 2025 compared to Q1 2024[96]. - Total coal sales volumes increased by 573 tons, or 7%, to 8,221 tons in Q1 2025 compared to Q1 2024[96]. - The Illinois Basin coal sales volumes increased by 1,309 tons, or 64%, to 3,342 tons in Q1 2025 compared to Q1 2024[96]. Interest Rate Risk - Interest rate risk exposure includes $110.4 million in borrowings under the Opco Credit Facility, with a potential $1.1 million increase in annual interest expense if rates rise by 1%[115]. Accounting Standards - The company does not expect the adoption of the recently issued ASU 2024-03 accounting standard to materially affect its financial statements[110].
NPR(NRP) - 2025 Q1 - Earnings Call Transcript
2025-05-06 14:02
Financial Data and Key Metrics Changes - The company generated $35 million of free cash flow in Q1 2025 and $214 million over the last twelve months [5] - Free cash flow from the mineral rights business was $44 million in Q1 2025, with a decline in prices for metallurgical coal, thermal coal, and soda ash negatively impacting results [6][12] - Net income for the mineral rights segment decreased by $15 million compared to the prior year's first quarter [11] Business Line Data and Key Metrics Changes - The mineral rights segment generated $45 million of net income, $43 million of operating cash flow, and $44 million of free cash flow in Q1 2025, with significant decreases attributed to weaker steel demand [11][12] - The soda ash business saw a net income decrease of $1 million, with both operating and free cash flow down by $11 million compared to the prior year [12] - Cash distributions from Shisha Jam Wyoming dropped to $3 million, an 80% decline from the previous quarter [8] Market Data and Key Metrics Changes - Prices for metallurgical coal, thermal coal, and soda ash have declined significantly, with current prices at or near the cost of production for many producers [5][6] - The soda ash market is experiencing a bear market due to a supply-demand imbalance, with prices expected to remain low for several years [9] Company Strategy and Development Direction - The company is focused on debt reduction, with remaining debt standing at $118 million, and anticipates significant increases in unitholder distributions as debt is paid off [5][6] - The company does not plan to sell any assets and aims to be a long-term holder of its mineral rights [24] - Future acquisitions are not a priority at this time, as the company is focused on completing its deleveraging strategy [26] Management's Comments on Operating Environment and Future Outlook - Management expects weak prices for key commodities to persist, impacting performance in the near term [5][6] - Despite current market headwinds, the outlook for equity holders is considered brighter than in the past decade [47] - The company is monitoring legislative developments but does not foresee any material impact on its business from the current administration [42] Other Important Information - The company paid a distribution of $0.75 per common unit for Q1 2025, with a special distribution of $1.21 per common unit paid in March 2025 [13][14] Q&A Session Summary Question: Anticipation of future dividends - Management does not have an anticipation for dividends one year from now but prioritizes distributions as a cash flow priority [16][17] Question: Prioritization between share buybacks and dividends - The order of cash uses prioritizes liquidity and balance sheet strength, followed by distributions, then unit repurchases, and lastly opportunistic acquisitions [18][19] Question: Opportunities to sell or monetize assets - Management does not plan to sell assets but would consider monetizing if an opportunity arises at a value exceeding intrinsic worth [24] Question: Future mineral rights acquisitions - The company is focused on completing its current strategy and is not actively seeking acquisitions at this time [26] Question: Impact of met coal index pricing on production - Management acknowledges that current prices are at or below marginal costs for many operators, which may lead to idling of production, but no material changes in volumes are expected [34][35] Question: Legislative impacts on the business - Management monitors legislative developments but has not identified any that would materially impact the business [42]