Core Viewpoint - Natural Resource Partners L.P. (NRP) reported a decline in net income and revenues for Q3 2025, reflecting challenges in the coal and soda ash markets, while maintaining a focus on deleveraging and free cash flow generation [2][12][14]. Financial Performance - NRP's net income for Q3 2025 was $30.9 million, down 20% from $38.6 million a year earlier [2] - Total revenues fell 17% to $49.9 million from $60.3 million in the prior-year quarter [2] - Basic earnings per common unit decreased to $2.31 from $2.55 [2] - Operating cash flow was $41.1 million compared to $54.1 million in Q3 2024 [2] - Free cash flow decreased 24% year over year to $41.8 million from $54.8 million [2] Segment Performance - **Mineral Rights Segment**: Net income rose slightly to $40.9 million from $40.6 million, but operating and free cash flows decreased due to lower metallurgical coal sales prices and volumes [3] - **Coal Royalty Revenues**: Dropped approximately 9% to $34.2 million, with average royalty revenue per ton declining to $4.51 from $5.24, attributed to weak global steel demand and low natural gas prices [4] - **Soda Ash Segment**: Net income fell by $10.5 million due to lower international sales prices, with no distributions received from the joint venture Sisecam Wyoming LLC in Q3 [5][6] Management Commentary - Management highlighted the ongoing depressed market conditions for coal, soda ash, and carbon-neutral ventures, yet emphasized the generation of substantial free cash flow [8] - The global soda ash market is described as oversupplied, with prices at or below production costs for many operators [6] - The company is focused on maintaining a conservative capital management approach and has made significant progress in deleveraging [11] Guidance & Outlook - NRP anticipates continued weakness in coal and soda ash markets through 2026 but expects to remain free cash flow positive [14] - The long-term goal is to achieve a "fortress balance sheet" with no permanent debt and at least $30 million in cash reserves [15] Other Developments - NRP maintained its quarterly cash distribution of 75 cents per common unit, payable on November 25, 2025 [16] - The company is diversifying by leasing acreage for lithium production in the Smackover formation, indicating a shift beyond its traditional coal and soda ash businesses [17]

Financial Performance - For the nine months ended September 30, 2025, total revenues and other income were $160.57 million, with mineral rights contributing $155.82 million and soda ash $4.75 million [100]. - Net income for the same period was $105.37 million, with mineral rights generating $125.76 million and soda ash $4.61 million, while corporate financing incurred a loss of $24.99 million [100]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $126.92 million, with mineral rights at $137.38 million and soda ash at $7.70 million [100]. - Total revenues and other income decreased by 21% to $160.570 million in the first nine months of 2025 compared to $202.281 million in 2024 [116]. - Adjusted EBITDA decreased by $49.7 million to $126.921 million, primarily due to a $29.4 million decrease in the Mineral Rights segment [123]. Cash Flow and Liquidity - Operating cash flow for the nine months ended September 30, 2025, was $121.10 million, and free cash flow was $123.20 million [102]. - Free cash flow decreased by $61.0 million to $123.240 million compared to the prior year period [125]. - Total liquidity as of September 30, 2025, was $190.1 million, consisting of $31.0 million in cash and cash equivalents and $159.1 million in borrowing capacity [126]. - Cash flows from operating activities decreased by $61.2 million, from $182.3 million in the nine months ended September 30, 2024, to $121.1 million in the same period of 2025 [127]. - Cash flows used in financing activities decreased by $45.6 million, from $170.2 million in the nine months ended September 30, 2024, to $124.5 million in the same period of 2025 [128]. Revenue Segments - Revenues from the mineral rights segment decreased by $29.3 million, or 16%, compared to the prior year, primarily due to lower metallurgical coal sales prices and volumes [104]. - Soda ash revenues decreased by $12.5 million, or 72%, compared to the prior year, mainly due to lower sales prices [107]. - Revenues from the Soda Ash segment fell by 72% to $4.746 million in the first nine months of 2025, down from $17.204 million in the same period of 2024 [116]. - Coal royalty revenues decreased by 18% to $101.234 million, down from $124.108 million in the prior year [117]. Operational Metrics - Total coal sales volumes increased by 5% to 7,529 tons in Q3 2025 compared to 7,190 tons in Q3 2024, with Appalachia region sales up 17% [110]. - Coal royalty revenues decreased by 9% to $34.193 million in Q3 2025 from $37.605 million in Q3 2024, primarily due to lower metallurgical coal sales prices and volumes [111]. - Adjusted EBITDA decreased by $6.9 million to $38.942 million in Q3 2025, driven by a $6.4 million decrease in the Soda Ash segment [114]. - Operating cash flow decreased by $13.1 million to $41.095 million in Q3 2025 compared to $54.145 million in Q3 2024, with the Mineral Rights segment contributing a $9.2 million decline [115]. Debt and Financial Risk - The leverage ratio as of September 30, 2025, was 0.4x, indicating a low level of debt relative to earnings [102]. - Total debt, net, as of September 30, 2025, was $69.4 million, down from $142.1 million as of December 31, 2024 [130]. - Current portion of long-term debt, net, was $14.2 million as of September 30, 2025 [130]. - The company is exposed to commodity price risk, particularly in coal, which could significantly impact future financial results [136]. - Interest rate risk exists due to borrowings under the Opco Credit Facility, with $40.9 million outstanding as of September 30, 2025; a 1% increase in interest rates would raise annual interest expense by approximately $0.4 million [139]. Market Conditions - The company expects continued weak pricing for metallurgical and thermal coal due to low global steel demand and ample coal stockpiles [105]. - The soda ash market remains oversupplied, with weak demand expected to persist, impacting future cash distributions from Sisecam Wyoming [108].

Financial Data and Key Metrics Changes - In Q3 2025, the company generated $31 million of net income, $41 million of operating cash flow, and $42 million of free cash flow [12] - Over the last 12 months, free cash flow totaled $190 million, indicating strong cash generation despite market challenges [4] - The company has retired nearly $130 million of debt over the past 12 months, with only $70 million remaining as of the end of the quarter [10] Business Line Data and Key Metrics Changes - The mineral rights segment generated $41 million of net income, with operating and free cash flow each decreasing by $9 million compared to the prior year due to weaker metallurgical coal markets [12] - The soda ash segment saw a net income decrease of $11 million, with operating and free cash flow each down by $6 million, primarily due to lower international sales prices and weakened demand [13] - The corporate and financing segment improved net income by $3 million, with operating cash flow and free cash flow each improving by $2 million due to reduced debt and lower interest costs [14] Market Data and Key Metrics Changes - Metallurgical coal markets are facing challenges from slowing global growth and soft steel demand, while thermal coal markets are struggling with muted demand due to mild weather and competition from natural gas [4][5] - The soda ash market remains oversupplied, with international prices below cash production costs for most producers, indicating a generational bear market [6][9] Company Strategy and Development Direction - The company continues to manage its operations with a conservative approach, focusing on maintaining a robust free cash flow and improving its capital structure [6][10] - There is an emphasis on long-term sustainability in the soda ash market, with expectations that producers will eventually rationalize supply [7] - The company aims to increase unit holder distributions in the future, contingent on market conditions improving [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the significant headwinds in coal and soda ash markets, with no near-term catalysts for improvement [9][10] - The company believes that most coal operators are struggling to make profits, with many operating at razor-thin margins [5] - The outlook for thermal coal remains cautious, with a belief that North American thermal coal is in long-term secular decline until evidence suggests otherwise [5] Other Important Information - The company did not receive a distribution from Shishajam, Wyoming, in Q3 2025, and does not expect distributions to resume until market conditions improve [8][13] - The carbon-neutral industry continues to face challenges, with significant barriers to CO2 sequestration operations [9] Q&A Session Summary Question: Inquiry about lithium mining leasing in the Smackover region - The company is active in leasing acreage for lithium production in the Smackover formation, with varied activity levels over the years [16][17] Question: Clarification on operating and maintenance expenses - Operating and maintenance expenses include salaries, corporate costs, property taxes, and royalty expenses, with a focus on cost management [19][20][21] Question: Opportunities in natural gas production - The majority of the company's mineral rights are in the Haynesville basin, which is currently active, but oil and gas revenues are not material to the partnership [28] Question: Criteria for unit repurchases - The company aims for a "fortress balance sheet" before considering unit repurchases, prioritizing unit holder distributions and opportunistic acquisitions [34][35] Question: Thermal coal infrastructure capacity for increased demand - Increased power demand from data centers may require significant capital investment in thermal coal infrastructure, but specifics are uncertain [40]

Financial Performance - Natural Resource Partners L.P. reported a net income of $30.9 million for Q3 2025, with a total net income of $148.1 million for the last twelve months[2]. - The company generated $41.8 million of free cash flow in Q3 2025, totaling $190.1 million over the last twelve months[3]. - Total revenues and other income for the three months ended September 30, 2025, were $49,931, a decrease of 17.3% compared to $60,327 for the same period in 2024[24]. - Net income for the nine months ended September 30, 2025, was $105,369, down 25.2% from $140,872 in the same period of 2024[24]. - The company reported a comprehensive income of $28,514 for the three months ended September 30, 2025, compared to $38,677 for the same period in 2024, indicating a decrease of 26.2%[24]. - For the nine months ended September 30, 2025, total revenues and other income amounted to $160,570, a decrease from $202,281 in the same period of 2024, representing a decline of approximately 20.5%[37]. - The company experienced a net income of $30,905 for the three months ended September 30, 2025, compared to $38,595 in the same period of 2024, representing a decrease of about 20%[52]. Cash Flow and Liquidity - A cash distribution of $0.75 per common unit was declared for Q3 2025, consistent with the previous quarter's distribution[4]. - NRP repaid $32 million of debt in Q3 2025, maintaining $190.1 million in available liquidity[11]. - The net cash provided by operating activities for the three months ended September 30, 2025, was $41,095, down from $54,145 in the same period of 2024, indicating a decline of approximately 24%[46]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $121,098, a decrease from $182,273 in 2024, representing a decline of approximately 34%[48]. - Free cash flow for the nine months ended September 30, 2025, was $123,240, down from $184,252 in 2024, which is a decrease of about 33%[48]. - Distributable cash flow for the three months ended September 30, 2025, was $42,729, compared to $54,819 in the same period of 2024, reflecting a decline of approximately 22%[46]. Segment Performance - Mineral Rights segment net income increased by $0.2 million year-over-year, but operating cash flow and free cash flow decreased by $9.2 million and $9.1 million, respectively, due to lower metallurgical coal prices[5]. - Soda Ash segment net income decreased by $10.5 million compared to the prior year, with operating cash flow and free cash flow each down by $6.4 million due to a lack of cash distribution from Sisecam Wyoming[8]. - For the three months ended September 30, 2025, revenues from mineral rights were $51,415, while the equity in earnings of Sisecam Wyoming was a loss of $2,390[35]. Market Outlook - The company anticipates continued weak pricing for metallurgical and thermal coal due to low global steel demand and high natural gas prices[6]. - The outlook for soda ash prices remains weak, with no immediate catalysts for market rebalancing expected[9]. Balance Sheet - Total assets as of September 30, 2025, were $753,554, down from $772,907 as of December 31, 2024[28]. - Total liabilities decreased to $142,304 as of September 30, 2025, from $221,799 as of December 31, 2024[28]. - The consolidated leverage ratio was reported at 0.4x as of September 30, 2025[12]. - The leverage ratio as of September 30, 2025, was 0.4x, indicating a reduction in debt relative to adjusted EBITDA[52]. Earnings and Expenses - Operating expenses for the three months ended September 30, 2025, totaled $17,247, a slight decrease from $17,538 in the same period of 2024[24]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $126,921, compared to $176,607 in 2024, indicating a decline of approximately 28%[44]. - The combined average coal royalty revenue per ton for the nine months ended September 30, 2025, was $4.64, down from $5.78 in 2024, a decrease of approximately 19.7%[40]. - Total coal royalty revenues for the nine months ended September 30, 2025, were $101,234, compared to $124,108 in 2024, reflecting a decline of about 18.4%[40].

Core Insights - Natural Resource Partners L.P. (NRP) reported a net income of $30.9 million for Q3 2025, with a total net income of $148.1 million for the last twelve months [1][2] - The company generated $41.8 million in free cash flow during Q3 2025 and $190 million over the last twelve months, despite ongoing depressed market conditions for coal and soda ash [2][3] - NRP declared a cash distribution of $0.75 per common unit for Q3 2025, consistent with previous distributions [2][6] Financial Performance - NRP's net income for Q3 2025 was $30,905,000, a decrease from $38,595,000 in Q3 2024 [1][22] - Operating cash flow for Q3 2025 was $41,095,000, down from $54,145,000 in Q3 2024 [25] - Free cash flow decreased slightly from the previous year, with Q3 2025 at $41,823,000 compared to $50,101,000 in Q3 2024 [1][22] Segment Performance - Mineral Rights segment saw a net income increase of $0.2 million, but operating cash flow and free cash flow decreased by $9.2 million and $9.1 million respectively due to lower metallurgical coal prices and volumes [3][4] - Soda Ash segment net income decreased by $10.5 million compared to the prior year, primarily due to lower sales prices [7][8] - The corporate and financing segment reported an increase in net income of $2.6 million, attributed to lower interest expenses [9][10] Market Conditions - NRP anticipates continued weak pricing for coal and soda ash due to low global demand and oversupply in the market [4][8] - The soda ash market is significantly oversupplied, with no immediate catalysts for price recovery expected [8] - The carbon neutral revenue opportunities remain weak, with challenges including high operational costs and an uncertain regulatory environment [5] Corporate Actions - NRP repaid $32 million of debt in Q3 2025, maintaining a consolidated leverage ratio of 0.4x as of September 30, 2025 [10] - The company had $190.1 million in available liquidity, consisting of $31 million in cash and $159.1 million in borrowing capacity [10]

Core Viewpoint - Natural Resource Partners L.P. is set to report its third quarter 2025 financial results on November 4, 2025, with a conference call scheduled for 9:00 a.m. ET to discuss the results [1]. Company Profile - Natural Resource Partners L.P. is a master limited partnership based in Houston, TX, that operates a diversified portfolio of natural resource properties in the United States, including coal, industrial minerals, and rights for carbon sequestration and renewable energy activities [4]. - The company also holds an equity investment in Sisecam Wyoming LLC, recognized as one of the lowest-cost producers of soda ash globally [4]. Conference Call Registration - Investors can register for the conference call through a provided link, with registration open until the live call begins. It is recommended to register at least 10 minutes prior to the call [2]. - The conference call can also be accessed live via the Investor Relations section of NRP's website [2]. Audio Replay - Audio replays of the conference call will be available on the Investor Relations section of NRP's website following the event [3]. Additional Information - Further details about Natural Resource Partners L.P. can be found on the partnership's official website [5]. - For investor inquiries, Tiffany Sammis from Investor Relations can be contacted directly [6].

Core Insights - The planned merger aims to unify education, workforce development, and research & development under a single brand [1] Company Summary - NRP Stone, Inc. intends to merge with its wholly owned subsidiary, Uplift Training, Inc., a Wyoming corporation [1] - Post-merger, the company will operate under the Uplift Training name, consolidating its initiatives [1]

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]

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]

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].