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]

[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)

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]

[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 |

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].

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]

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] - The current debt stands at $118 million, with expectations of significant increases in unitholder distributions as debt is paid off next year [5][6] - Net income for the mineral rights segment in Q1 2025 was $45 million, with operating cash flow at $43 million and free cash flow at $44 million, showing a decrease compared to the prior year's first quarter [11] Business Line Data and Key Metrics Changes - The mineral rights business generated $44 million of free cash flow in Q1 2025, but net income decreased by $15 million compared to the previous year due to weaker steel demand [6][12] - The soda ash segment saw a significant decline, with cash distributions from Shisha Jam Wyoming dropping 80% to $3 million, attributed to low sales prices and high inventories [7][8] - The corporate and financing segment performance was relatively flat, with slight improvements in operating cash flow and free cash flow due to lower interest payments [13] Market Data and Key Metrics Changes - Prices for metallurgical coal, thermal coal, and soda ash have declined significantly, impacting overall performance [5][6] - The soda ash market is currently experiencing a bear market, with prices trading below production costs for many producers [8][12] - International soda ash pricing has decreased significantly from record highs in 2023, primarily due to weakened demand from the construction and automobile markets [12] Company Strategy and Development Direction - The company is focused on debt reduction and maintaining a solid capital structure, with cash flow priorities including liquidity and balance sheet strength [18] - There is no current plan to sell assets, as the company prefers to be a long-term holder of its mineral rights [23] - The company is monitoring legislative developments but does not anticipate significant impacts on its business from the new administration [40] Management's Comments on Operating Environment and Future Outlook - Management expects weak prices for key commodities to persist, which will continue to affect performance [5][6] - Despite current market headwinds, the outlook for equity holders is considered brighter than in the past decade [44] - The company is optimistic about long-term opportunities in carbon neutral initiatives, despite current market challenges [10] Other Important Information - The company paid a fourth quarter 2024 distribution of $0.75 per common unit and announced a similar distribution for Q1 2025 [13][14] - The company is making small-scale progress in geothermal, solar, and lithium initiatives [10] 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 cash flow allows [16][17] Question: Opportunities for asset monetization - The company does not plan to sell assets but would consider monetizing if opportunities arise at favorable valuations [23] Question: Future of M&A and coal industry sentiment - Management is focused on executing their current strategy and is not actively pursuing acquisitions at this time [24] Question: Volumes in the Illinois Basin and met coal production - The uptick in volumes is expected to persist, but management acknowledges that prices are at or below marginal costs for many operators, which may lead to production reductions [30][32]

Financial Performance - Natural Resource Partners L.P. reported a net income of $40.253 million for Q1 2025, down from the previous year's figures [2]. - Total revenues and other income for Q1 2025 were $60,538,000, a decrease of 20.9% from $76,414,000 in Q4 2024 [27]. - Net income for Q1 2025 was $40,253,000, down 28.4% from $56,213,000 in Q4 2024 [27]. - Net income attributable to common unitholders was $39,448,000, a decrease of 25.7% compared to $52,982,000 in Q4 2024 [27]. - Basic net income per common unit for Q1 2025 was $3.01, down from $4.13 in Q4 2024, representing a decline of 27.1% [27]. - The company reported a comprehensive income of $42,513,000 for Q1 2025, down from $57,058,000 in Q4 2024 [27]. - For the three months ended March 31, 2025, total revenues and other income were $60,538, a decrease of 20.8% compared to $76,414 for the same period in 2024 [35]. - Net income for the three months ended March 31, 2025, was $40,253, down from $56,213 in the same period of 2024, representing a decline of 28.4% [35]. - Adjusted EBITDA for the three months ended March 31, 2025, was $45,260, a decrease of 38.1% from $73,114 in the same period of 2024 [35]. - The company reported a gain on asset sales and disposals of $247 for the three months ended March 31, 2025, compared to $165 in the same period of 2024 [37]. - Net income for the three months ended March 31, 2025, was $40,253, compared to $56,213 in the same period of 2024, reflecting a decrease of approximately 28% [45]. Cash Flow and Liquidity - The company generated $35.1 million in free cash flow during Q1 2025, contributing to a total of $214 million over the last twelve months [4]. - Cash flows from operating activities in Q1 2025 were $34,424,000, a significant decrease of 51.8% from $71,499,000 in Q4 2024 [29]. - Cash flow provided by continuing operations for the three months ended March 31, 2025, was $34,424, compared to $71,499 in the same period of 2024, a decrease of 51.8% [35]. - Free cash flow for the three months ended March 31, 2025, was $35,124, down from $72,146 in the same period of 2024, representing a decline of 51.4% [35]. - The total cash flow from operating activities for the last twelve months was $211,418 [43]. - NRP's available liquidity was $120.5 million as of March 31, 2025, consisting of $30.9 million in cash and $89.6 million in borrowing capacity [13]. Distribution and Future Expectations - The board declared a cash distribution of $0.75 per common unit for Q1 2025, consistent with the previous quarter's distribution [5]. - Future distributions will be determined quarterly, considering factors such as profitability, cash flow, and market conditions [4]. - NRP expects continued weak pricing for metallurgical and thermal coal throughout 2025 due to soft global steel demand and high domestic thermal coal inventory levels [7]. Segment Performance - Mineral Rights segment net income decreased by $15.4 million compared to the prior year, primarily due to lower metallurgical coal sales prices and volumes [6]. - Soda Ash segment net income fell by $0.8 million in Q1 2025, attributed to an increased international sales mix [9]. - Total coal sales volumes for the three months ended March 31, 2025, increased to 8,221 tons, up 7.5% from 7,648 tons in the same period of 2024 [37]. - The combined average coal royalty revenue per ton for the three months ended March 31, 2025, was $4.36, a decrease of 28.7% from $6.12 in the same period of 2024 [37]. - Total coal royalty revenues for the three months ended March 31, 2025, were $35,498, down from $46,818 in the same period of 2024, reflecting a decline of 24.2% [37]. - The equity in earnings of Sisecam Wyoming for the three months ended March 31, 2025, was $4,610, down from $5,450 in the same period of 2024 [35]. Balance Sheet Highlights - Total assets as of March 31, 2025, were $772,473,000, slightly down from $772,907,000 at the end of 2024 [31]. - Total liabilities decreased to $208,116,000 from $221,799,000 at the end of 2024, reflecting a reduction of 6.2% [31]. - Cash and cash equivalents at the end of Q1 2025 were $30,876,000, up from $30,444,000 at the end of 2024 [31]. - The leverage ratio as of March 31, 2025, was 0.7x, an increase from 0.6x as of March 31, 2024 [45]. - Debt at March 31, 2025, was reported at $139,047 [45]. - The company recorded asset impairments totaling $107 for the last twelve months [45].

Core Viewpoint - Zefiro Methane Corp. has secured multiple new contracts for environmental remediation services, particularly in oil and gas well plugging, indicating a growing demand for its services in key markets across the United States [1][6]. Group 1: New Contracts and Projects - Zefiro's subsidiary, Plants & Goodwin, Inc. (P&G), has obtained contracts from the Ohio government for ten wells in Ashtabula County, under the Ohio Department of Natural Resources [1]. - In January, P&G was awarded eight state-funded well remediation projects in Ohio, involving a total of 50 oil and gas wells, with 28 already plugged [1]. - P&G has also secured environmental remediation contracts in Pennsylvania, including a new account, to plug 15 oil and gas wells [2]. Group 2: Recent Achievements - P&G recently completed a package of Pennsylvania-funded oil and gas well remediation projects, plugging 18 wells in Clarion County, including a site that was releasing toxins into a water supply, costing nearly $500,000 to remediate [3]. - Zefiro continues to perform remediation work across the Appalachian region, addressing the issue of unplugged oil and gas wells that may emit methane [5]. Group 3: Company Strategy and Market Position - The CEO of Zefiro highlighted the increasing demand for the company's environmental remediation services and the expansion of its client base across Appalachia [6]. - Zefiro aims to provide innovative, market-based solutions to tackle public health issues related to methane emissions from oil and gas wells [6]. - The company is focused on building a fully integrated operation to address methane leaks and generate long-term economic, environmental, and social returns [8].

Core Insights - aTyr Pharma, Inc. is presenting preclinical data for ATYR2810, a monoclonal antibody targeting neuropilin-2 (NRP2), at the AACR Annual Meeting 2025, indicating progress in its clinical development [1][2] Group 1: Company Overview - aTyr Pharma is a clinical stage biotechnology company focused on developing first-in-class medicines from its proprietary tRNA synthetase platform [1][4] - The company's lead therapeutic candidate is efzofitimod, which is in clinical development for treating interstitial lung disease [4] Group 2: Research Findings - ATYR2810 has shown potential in combating drug resistance mechanisms in aggressive cancers like glioblastoma multiforme (GBM) [2][3] - Preclinical research indicates that ATYR2810 enhances anti-tumor immunity and significantly increases overall survival when used as a single agent [3] - The combination of ATYR2810 with anti-PD-1 therapies further improves survival rates and reduces tumor size in GBM models [3]