Revenue and Financial Performance - Total revenues for 2022 amounted to $388.962 million, with Mineral Rights contributing $329.167 million (85%) and Soda Ash contributing $59.795 million (15%) to the total[31]. - Total revenues and other income for 2022 reached $388,962 thousand, a significant increase of 80% compared to $216,364 thousand in 2021[293]. - Net income for 2022 was $268,492 thousand, up 146% from $108,902 thousand in 2021[293]. - Basic net income per common unit increased to $18.72 in 2022 from $6.14 in 2021, reflecting strong operational performance[293]. - The total partners' capital increased to $477,457 thousand in 2022 from $256,024 thousand in 2021, reflecting strong profitability and retained earnings[290]. - The equity in earnings of Sisecam Wyoming increased to $59,795 thousand in 2022 from $21,871 thousand in 2021, highlighting growth in affiliate performance[293]. - The company reported a gain on asset sales and disposals of $1,082 thousand in 2022, compared to $245 thousand in 2021, indicating successful asset management[293]. Coal Production and Mineral Rights - In 2022, total coal production was 32.934 million tons, with thermal coal at 18.253 million tons and metallurgical coal at 14.681 million tons[42]. - The majority of revenues from the Mineral Rights segment are derived from coal royalties, primarily from the Appalachia Basin, Illinois Basin, and Northern Powder River Basin[33]. - The Alpha-CAPP (VA) property had a book value of $47.2 million as of December 31, 2022, and is leased to Alpha Metallurgical Resources Inc.[46]. - The Williamson property, located in Illinois, had a book value of $40.2 million as of December 31, 2022, and is leased to Foresight Energy Resources LLC[52]. - The Hillsboro property, also in Illinois, had a book value of $215.8 million as of December 31, 2022, and is under lease to Foresight Energy[55]. - Approximately two-thirds of royalty-based leases have initial terms of five to 40 years, with options for lessees to extend[33]. Environmental and Regulatory Challenges - The company anticipates a continued decline in thermal coal production due to a shift towards natural gas and alternative energy sources[40]. - Compliance with environmental regulations has significantly increased coal mining costs, affecting the overall profitability of operations[90]. - The Clean Air Act and related regulations impose additional costs on coal mining operations, potentially reducing coal's market share in power generation[93]. - Regulatory changes and environmental legislation could adversely impact the demand for coal and soda ash, affecting future revenues[91]. - The company is subject to stringent environmental regulations that may limit production and profitability, with potential penalties for non-compliance[136]. - The adoption of climate change legislation is expected to further decrease coal production and revenues, as electricity generators switch to alternative fuel sources[131]. Operational Risks and Market Conditions - The ongoing COVID-19 pandemic has adversely affected the company's business, leading to a suspension of cash distributions in Q1 2020 due to liquidity concerns[119]. - The company faces increased scrutiny and potential penalties related to compliance with health and safety standards, which could impact operational costs[107]. - The volatility in coal prices continues to pose risks, with potential declines that could adversely affect the company's business and results of operations[121]. - The company faces challenges from increased competition in the thermal coal market due to the rise of natural gas and renewable energy sources, which has led to a decline in thermal coal prices[122]. - The market for soda ash is also volatile, with potential declines in prices that could impact the company's ability to make distributions and affect overall results[126]. Debt and Financial Obligations - As of December 31, 2022, the company and its subsidiaries had approximately $169.1 million in total indebtedness[116]. - The company is required to make substantial principal repayments each year, with approximately $40 million due during 2023[117]. - Cash distributions to common unitholders are not guaranteed and may fluctuate based on performance, with a requirement for the consolidated leverage ratio to be less than 3.25x to exceed $0.45 per unit in distributions[115]. - The company’s ability to meet its debt obligations and expenses will depend on future performance, which is influenced by various uncontrollable factors[117]. Strategic Initiatives and Future Outlook - The company is exploring carbon neutral initiatives, including the sale of carbon offset credits and potential geothermal energy generation[33]. - The company executed its first geothermal lease in Q3 2022 with the potential to generate up to 15 megawatts of electricity[67]. - The company is focused on evaluating capacity expansion opportunities despite the current halt on the major expansion project[82]. - Sisecam Wyoming has a capacity expansion project that could increase soda ash production to 3.5 million tons per year, but the project is currently on hold due to significant cost inflation[82]. Customer and Market Relationships - Significant customers include Alpha, generating $102.4 million in revenue in 2022, and Foresight, contributing $65.6 million in the same year[84]. - Sisecam Wyoming generated approximately half of its gross revenue from export sales, with the two largest customers accounting for 26% of total gross revenue[77]. - In 2022, Sisecam Wyoming had more than 80 domestic customers, primarily glass manufacturing companies, which account for over 50% of global soda ash consumption[79]. - The agreement with Union Pacific Railroad for shipping soda ash expires on December 31, 2025, with no assurance of renewal on favorable terms[75]. Tax and Compliance Issues - The company is subject to state and local taxes in jurisdictions where it operates, impacting unitholders' tax obligations[189]. - The IRS may challenge the company's valuation methodologies, which could adversely affect the value of the common units[185]. - Tax liabilities from audit adjustments could substantially reduce cash available for distribution to unitholders[175]. - Unitholders are required to pay taxes on their share of taxable income even if no cash distributions are received[171]. - Non-U.S. unitholders will be subject to U.S. federal income taxes and withholding on income and gains from owning the company's units[181].

Natural Resource Partners L.P. (NYSE:NRP) Q4 2022 Earnings Conference Call March 2, 2023 9:00 AM ET Company Participants Tiffany Sammis - IR Craig Nunez - President and COO Chris Zolas - CFO Conference Call Participants Operator Good morning. My name is Chris and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Natural Resource Partners L.P. Fourth Quarter and Full Year 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. ...

Natural Resource Partners L.P. (NYSE:NRP) Q3 2022 Earnings Conference Call November 3, 2022 9:00 AM ET Company Participants Tiffany Sammis - Investor Relations Craig Nunez - President and Chief Operating Officer Christopher Zolas - Chief Financial Officer Kevin Craig - Executive Vice President Conference Call Participants George Burmann - CL Securities Mark Zand - Wexford Capital Operator Good morning. My name is Gina, I will be your conference operator today. At this time, I would like to welcome everyone ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-31465 NATURAL RESOURCE PARTNERS LP (Exact name of registrant as specified in its charter) Delaware 35-2164875 (State or other jurisdiction of incorporation or organizat ...

Natural Resource Partners L.P. (NYSE:NRP) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Tiffany Sammis - Manager, IR Craig Nunez - President and COO Chris Zolas - CFO Kevin Craig - EVP Conference Call Participants Amer Tiwana - Imperial Capital Operator Thank you for joining the Natural Resource Partners L.P. Second Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-31465 NATURAL RESOURCE PARTNERS LP (Exact name of registrant as specified in its charter) Delaware 35-2164875 (State or other jurisdiction of incorporation or organization) ...

Financial Data and Key Metrics Changes - The company generated $52 million of free cash flow in Q1 2022, marking one of the best quarterly performances in its history [7] - Operating cash flow for the first quarter was $52 million, with net income at $64 million [18] - The company announced a 67% increase in its quarterly distribution from $0.45 per unit to $0.75 [8][22] Business Line Data and Key Metrics Changes - The Mineral Rights segment generated $48 million of operating cash flow and $63 million of net income, an improvement from $22 million and $42 million in the prior year quarter, driven by stronger demand and pricing for metallurgical coal [18] - The Soda Ash business segment reported a net income of $15 million, an increase of $13 million compared to the previous year, primarily due to higher international pricing [19] - Corporate and Financing segment costs remained flat year-over-year, but segment free cash flow decreased by $2 million due to increased incentive compensation [20] Market Data and Key Metrics Changes - Global metallurgical coal prices have reached historically high levels due to strong demand and muted supply response [9] - Thermal coal markets are benefiting from increased electric power generation and restricted growth in thermal coal supplies, with prices expected to remain elevated [10][11] - Soda ash prices have increased by more than 50% in Q1 2022 compared to the previous year, with export prices more than doubling [12] Company Strategy and Development Direction - The company plans to leverage improved financial performance to accelerate deleveraging and return additional cash to common unitholders [8][15] - There is a focus on identifying opportunities in the transitional energy economy, including CO2 sequestration projects [14] - The company remains committed to solidifying its capital structure and paying down debt [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance in recent quarters continuing for the foreseeable future, despite risks from COVID-19 lockdowns in China and the war in Ukraine [15] - The supply-demand balance for metallurgical coal is expected to remain tight, supporting prices [9] - The company is continuously evaluating the best use of cash flow, including debt paydown and increasing distributions [32] Other Important Information - The company generated $152 million of free cash flow over the last 12 months, with a rising cash flow cushion after paying debt amortizations and distributions [15] - The company redeemed all outstanding paid-in-kind preferred units at par during Q1 2022 [21] Q&A Session Summary Question: Thoughts on outstanding 12% preferreds - Management is focused on reducing debt balances before addressing the preferreds, which have a redemption premium that makes immediate redemption economically disincentive [26][28] Question: Impact of thermal coal pricing on new arrangements - The fixed payment plan has transitioned to a conventional royalty arrangement, and while current contracts may not reflect recent price increases, management believes pricing will catch up over time [34][42]

Part I. Financial Information [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2022, showing significant increases in net income and operating cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2022, total assets slightly increased to $962.3 million, while total liabilities decreased to $490.3 million, leading to a rise in total partners' capital Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$962,288** | **$953,823** | | Total Current Assets | $171,829 | $162,781 | | Mineral rights, net | $433,965 | $437,697 | | **Total Liabilities** | **$490,305** | **$513,891** | | Total Current Liabilities | $68,213 | $64,385 | | Long-term debt, net | $378,163 | $394,443 | | **Total Partners' Capital** | **$307,396** | **$256,024** | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For Q1 2022, total revenues surged to $89.7 million, resulting in a net income of $63.9 million and diluted net income of $3.11 per common unit Q1 2022 vs Q1 2021 Income Statement Highlights (in thousands, except per unit data) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Royalty and other mineral rights | $71,083 | $32,927 | | Total revenues and other income | $89,716 | $37,151 | | Income from operations | $73,286 | $18,354 | | **Net income** | **$63,899** | **$8,381** | | Net income attributable to common unitholders | $55,271 | $641 | | **Diluted net income per common unit** | **$3.11** | **$0.05** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities more than doubled to $52.3 million in Q1 2022, while financing activities increased due to preferred unit redemptions Q1 2022 vs Q1 2021 Cash Flow Summary (in thousands) | Cash Flow Category | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $52,331 | $23,200 | | Net cash provided by investing activities | $0 | $600 | | Net cash used in financing activities | ($52,261) | ($26,823) | | **Net increase (decrease) in cash** | **$70** | **($3,023)** | | Cash and cash equivalents at end of period | $135,590 | $96,767 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment performance, and debt structure, highlighting significant increases in coal royalty revenues and soda ash equity earnings - The Partnership's business is organized into two operating segments: Mineral Rights (owning and managing mineral properties) and Soda Ash (a 49% non-controlling interest in Sisecam Wyoming)[24](index=24&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) Mineral Rights Segment Revenue by Source (in thousands) | Revenue Source | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Coal royalty revenues | $55,449 | $15,365 | | Transportation and processing services | $3,796 | $2,192 | | Oil and gas royalty revenues | $1,814 | $1,366 | | **Total Mineral Rights segment revenues** | **$74,879** | **$35,119** | - Total net debt decreased from **$433.5 million** at the end of 2021 to **$417.2 million** as of March 31, 2022, reflecting ongoing debt repayments[54](index=54&type=chunk) - In May 2022, the Board of Directors declared a Q1 2022 distribution of **$0.75 per common unit**, a significant increase from the previous quarter's **$0.45 per unit**[35](index=35&type=chunk)[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 2022 financial results driven by record coal prices and robust soda ash demand, leading to increased distributions [Executive Overview](index=24&type=section&id=Executive%20Overview) This section summarizes the company's Mineral Rights and Soda Ash segments, highlighting strategic efforts in transitional energy and strong Q1 2022 financial performance - The company's business is organized into two primary segments: Mineral Rights, which includes approximately **13 million acres** of mineral interests, and Soda Ash, which consists of a **49% equity interest** in Sisecam Wyoming[100](index=100&type=chunk)[101](index=101&type=chunk) - NRP is actively working to redefine its business as a key player in the transitional energy economy, exploring opportunities in carbon sequestration, geothermal, solar, and wind energy on its properties[100](index=100&type=chunk)[111](index=111&type=chunk) [Current Results/Market Commentary](index=25&type=section&id=Current%20Results%2FMarket%20Commentary) Strong market conditions, including record coal prices and improved soda ash pricing, drove Q1 2022 results, leading to increased distributions and a new CO2 sequestration transaction - Generated **$52.3 million** of free cash flow in Q1 2022 and ended the quarter with **$235.6 million** in liquidity (**$135.6 million** cash and **$100.0 million** credit facility)[107](index=107&type=chunk) - The cash distribution for Q1 2022 was increased to **$0.75 per common unit**, compared to **$0.45** in the previous quarter, reflecting strong financial performance and a positive outlook[108](index=108&type=chunk) - Market conditions were favorable, with record-level metallurgical coal prices and strong thermal coal demand due to tight supply-demand dynamics, amplified by higher natural gas prices and boycotts on Russian coal[109](index=109&type=chunk)[110](index=110&type=chunk) - The company executed its first subsurface CO2 sequestration transaction, granting Denbury rights to develop a project on **75,000 acres** in Alabama[111](index=111&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenues increased by 141% in Q1 2022, driven by a 261% surge in coal royalty revenues and a 652% increase in soda ash revenue, leading to a sharp rise in Adjusted EBITDA Revenue by Operating Segment (in thousands) | Operating Segment | Q1 2022 | Q1 2021 | Increase | % Change | | :--- | :--- | :--- | :--- | :--- | | Mineral Rights | $74,879 | $35,178 | $39,701 | 113% | | Soda Ash | $14,837 | $1,973 | $12,864 | 652% | | **Total** | **$89,716** | **$37,151** | **$52,565** | **141%** | - Coal royalty revenues increased by **$40.1 million (261%)**, driven by a **$35.5 million** increase in the Appalachia region due to significantly higher sales prices and a **41% increase** in sales volumes[119](index=119&type=chunk)[121](index=121&type=chunk)[124](index=124&type=chunk) - Total operating expenses decreased by **$2.4 million (13%)**, primarily due to a **$4.0 million** decrease in asset impairments compared to Q1 2021[123](index=123&type=chunk) Adjusted EBITDA by Segment (in thousands) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Mineral Rights | $66,854 | $29,646 | | Soda Ash | $13,179 | $3,900 | | Corporate and Financing | ($4,467) | ($4,110) | | **Total Adjusted EBITDA** | **$75,566** | **$29,436** | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2022, the Partnership maintained strong liquidity of $235.6 million, with operating cash flow increasing to $52.3 million and total net debt decreasing to $417.2 million - Total liquidity as of March 31, 2022, was **$235.6 million**, comprising **$135.6 million** in cash and cash equivalents and **$100.0 million** of borrowing capacity[133](index=133&type=chunk) - Cash flows from operating activities increased by **$29.1 million** year-over-year, reaching **$52.3 million** in Q1 2022[134](index=134&type=chunk) Debt Summary (in thousands) | Debt Category | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Current portion of long-term debt, net | $39,046 | $39,102 | | Long-term debt, net | $378,163 | $394,443 | | **Total debt, net** | **$417,209** | **$433,545** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Natural Resource Partners L.P. is not required to provide this disclosure in its quarterly report on Form 10-Q - The company is not required to include this disclosure as it qualifies as a smaller reporting company[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[145](index=145&type=chunk) - No material changes were made to the Partnership's internal control over financial reporting during the first three months of 2022[146](index=146&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management believes their outcomes will not materially affect financial position, liquidity, or operations - Management believes that ongoing legal proceedings from the ordinary course of business will not have a material effect on the company's financial position[149](index=149&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 - No material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021, were reported[150](index=150&type=chunk) [Other Items (Items 2, 3, 4, 5)](index=37&type=section&id=Other%20Items%20(Items%202,%203,%2C%204,%205)) This section reports no unregistered sales of equity securities, no defaults on senior securities, no mine safety disclosures, and no other information - The company reported "None" for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) Item 6. Exhibits & Signatures [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents and certifications from the CEO and CFO - The exhibits filed with the report include certifications from the CEO and CFO pursuant to Section 302 of Sarbanes-Oxley and 18 U.S.C. § 1350, as well as Inline XBRL documents[157](index=157&type=chunk) [Signatures](index=39&type=section&id=Signatures) The report is duly signed and authorized by Corbin J. Robertson, Jr., Chairman and CEO, and Christopher J. Zolas, CFO and Treasurer, dated May 5, 2022 - The report was signed on May 5, 2022, by Corbin J. Robertson, Jr. (CEO) and Christopher J. Zolas (CFO)[162](index=162&type=chunk)

[PART I](index=8&type=section&id=PART%20I) [Business and Properties](index=8&type=section&id=Items%201%2E%20and%202%2E%20Business%20and%20Properties) Natural Resource Partners L.P. operates through Mineral Rights and Soda Ash segments, focusing on mineral property leasing for royalties and a non-controlling interest in soda ash production - The company's business is organized into two primary operating segments: **Mineral Rights** and **Soda Ash**[26](index=26&type=chunk)[27](index=27&type=chunk) 2021 Revenue by Segment (in thousands) | Segment | Amount (in thousands) | % of Total | | :--- | :--- | :--- | | Mineral Rights | $194,493 | 90% | | Soda Ash | $21,871 | 10% | | **Total** | **$216,364** | **100%** | [Mineral Rights Segment](index=9&type=section&id=Mineral%20Rights%20Segment) The Mineral Rights segment manages 13 million acres of mineral interests, generating royalties primarily from coal, and is strategically expanding into carbon sequestration and renewable energy initiatives - The company renamed its 'Coal Royalty and Other' segment to **'Mineral Rights'** to reflect a focus on leveraging assets for the transitional energy economy, including carbon sequestration[32](index=32&type=chunk)[33](index=33&type=chunk) Coal Sales Volumes (in thousands of tons) | Year | Thermal | Metallurgical | Total | | :--- | :--- | :--- | :--- | | **2021** | 14,571 | 13,208 | 27,779 | | **2020** | 6,686 | 10,080 | 16,766 | | **2019** | 11,605 | 12,139 | 23,744 | - NRP executed its first carbon neutral project in Q4 2021, selling **1.1 million carbon offset credits** for **$13.8 million** from West Virginia forestland[66](index=66&type=chunk) - In February 2022, NRP executed a CO2 Sequestration Agreement with Denbury Inc. for a potential sequestration site on approximately **75,000 acres** in Alabama, with an estimated storage potential of over **300 million metric tons**[68](index=68&type=chunk) [Soda Ash Segment](index=20&type=section&id=Soda%20Ash%20Segment) The Soda Ash segment holds a 49% non-controlling interest in Sisecam Wyoming, a major natural soda ash producer, facing challenges like deca stockpile depletion by 2024 and evaluating capacity expansion - NRP owns a **49% non-controlling equity interest** in Sisecam Wyoming, a trona ore mining and soda ash production business[70](index=70&type=chunk) - In December 2021, the operating partner, Ciner Resources LP, was renamed Sisecam Resources LP after **Sisecam Chemicals USA Inc.** acquired a majority interest[71](index=71&type=chunk) - Sisecam Wyoming anticipates its deca stockpiles will be exhausted by **2024**, potentially reducing annual production by approximately **200,000 short tons** if capacity is not replaced[75](index=75&type=chunk) [Regulation and Environmental Matters](index=23&type=section&id=Regulation%20and%20Environmental%20Matters) The company's property operations are subject to extensive environmental and mine safety regulations, impacting coal demand and increasing lessee costs, with regulatory changes and lawsuits posing ongoing risks - The company's lessees are responsible for compliance with all applicable laws and reclamation costs, while NRP does not bear ordinary operating costs or direct exposure to most environmental and labor risks[38](index=38&type=chunk)[91](index=91&type=chunk) - Clean Air Act regulations, including CSAPR and MATS, have increased costs for coal-fired power plants, reducing coal's share of power generation and negatively impacting NRP's coal revenues[94](index=94&type=chunk) - In January 2021, the D.C. Circuit Court vacated the Affordable Clean Energy (ACE) Rule, remanding it to the EPA for further consideration[96](index=96&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A%2E%20Risk%20Factors) The company faces significant business, structural, and taxation risks, including price volatility, lessee dependence, potential bankruptcies, and adverse impacts from tax law changes on unitholders - Cash distributions are not guaranteed and are restricted by debt agreements, requiring specific leverage tests to increase quarterly distributions on common units above **$0.45 per quarter**[114](index=114&type=chunk)[116](index=116&type=chunk) - The company has significant revenue concentration from a few coal lessees, with **Foresight** accounting for approximately **17%** and **Alpha** for approximately **23%** of total revenues in 2021[130](index=130&type=chunk) - Climate change regulations and unfavorable financial institution policies regarding fossil fuels pose significant risks, potentially reducing coal demand and affecting capital access or insurance[134](index=134&type=chunk)[136](index=136&type=chunk) - Unitholders face significant tax risks, including paying taxes on income without cash distributions and the potential for the partnership to be treated as a corporation, which would substantially reduce distributable cash[168](index=168&type=chunk)[176](index=176&type=chunk) [PART II](index=45&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205%2E%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Unitholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NRP's common units trade on the NYSE under 'NRP', with approximately 9,740 holders as of March 2022, and the company maintains a 2017 Long-Term Incentive Plan for equity compensation - NRP's common units are listed on the NYSE under the trading symbol **'NRP'**[200](index=200&type=chunk) - As of December 31, 2021, **230,226 securities** remained available for future issuance under the company's equity compensation plans[202](index=202&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%207%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, NRP generated $121.8 million in operating cash flow and $235.5 million in liquidity, driven by improved metallurgical coal markets and carbon offset credit sales, leading to a 54% revenue increase and improved leverage 2021 Financial Highlights by Segment (in thousands) | Segment | Revenues & Other Income | Net Income (Loss) | Adjusted EBITDA | | :--- | :--- | :--- | :--- | | Mineral Rights | $194,493 | $143,412 | $167,613 | | Soda Ash | $21,871 | $21,702 | $11,101 | | Corporate & Financing | $0 | $(56,212) | $(17,360) | | **Total** | **$216,364** | **$108,902** | **$161,354** | - The company generated **$123.0 million** of free cash flow in 2021 and ended the year with **$235.5 million** of liquidity, including **$135.5 million** in cash and **$100 million** in borrowing capacity[216](index=216&type=chunk) - The consolidated leverage ratio fell to **2.7x** at December 31, 2021, enabling the company to redeem all paid-in-kind preferred units for **$19.6 million** in cash[217](index=217&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208%2E%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated financial statements for 2021 show a significant turnaround with net income of $108.9 million, a 54% revenue increase to $216.4 million, and a strengthened balance sheet with increased assets and decreased liabilities Consolidated Statement of Comprehensive Income (Loss) Highlights (in thousands) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Total revenues and other income | $216,364 | $140,320 | | Income (loss) from operations | $147,778 | $(43,851) | | Net income (loss) | $108,902 | $(84,819) | | Basic Net income (loss) per common unit | $6.14 | $(9.20) | Consolidated Balance Sheet Highlights (in thousands) | Metric | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total current assets | $162,781 | $117,192 | | Total assets | $953,823 | $921,877 | | Total current liabilities | $64,385 | $61,372 | | Total liabilities | $513,891 | $549,016 | | Total partners' capital | $256,024 | $204,524 | [Controls and Procedures](index=97&type=section&id=Item%209A%2E%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2021, a conclusion affirmed by an unqualified opinion from Ernst & Young LLP - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of **December 31, 2021**[437](index=437&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of **December 31, 2021**, based on the COSO framework[438](index=438&type=chunk) [PART III](index=100&type=section&id=PART%20III) [Directors and Executive Officers of the Managing General Partner and Corporate Governance](index=100&type=section&id=Item%2010%2E%20Directors%20and%20Executive%20Officers%20of%20the%20Managing%20General%20Partner%20and%20Corporate%20Governance) The company is managed by the officers and directors of GP Natural Resource Partners LLC, with Corbin J. Robertson, Jr. as Chairman and CEO, and its Board of Directors includes independent committees and governance guidelines - As a master limited partnership, NRP does not directly employ management but reimburses affiliates of its managing general partner for services[454](index=454&type=chunk) - The Board of Directors has determined that Messrs. Claro, Navarre, Smith, and Vecellio are **independent directors**[471](index=471&type=chunk) [Executive Compensation](index=106&type=section&id=Item%2011%2E%20Executive%20Compensation) As a smaller reporting company, NRP's 2021 executive compensation included salaries, cash bonuses, and phantom unit awards vesting upon a change in control, with CEO Corbin J. Robertson, Jr. receiving $2.98 million 2021 Summary Compensation Table | Name and Principal Position | Salary ($) | Bonus ($) | Stock Awards ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | | Corbin J. Robertson, Jr. (CEO) | — | 2,037,340 | 946,909 | 2,984,249 | | Craig W. Nunez (President & COO) | 515,000 | 885,800 | 717,032 | 2,135,232 | | Christopher J. Zolas (CFO) | 365,000 | 502,240 | 412,549 | 1,297,189 | - None of the named executive officers have employment agreements; phantom unit awards vest upon a **change in control**, death, or disability[495](index=495&type=chunk) [Security Ownership of Certain Beneficial Owners and Management](index=111&type=section&id=Item%2012%2E%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management) As of March 1, 2022, key beneficial owners of common units include Corbin J. Robertson, Jr. (19.8%), while Blackstone Inc. (57%) and GoldenTree Asset Management, LP (43%) hold the Class A Convertible Preferred Units Beneficial Ownership of Common Units (as of March 1, 2022) | Name of Beneficial Owner | Common Units | Percentage | | :--- | :--- | :--- | | Corbin J. Robertson, Jr. | 2,478,742 | 19.8% | | Western Pocahontas Corporation | 1,739,007 | 13.9% | | Western Pocahontas Properties LP | 1,727,986 | 13.8% | | The Goldman Sachs Group, Inc. | 1,112,356 | 8.9% | | JPMorgan Chase & Co. | 1,028,351 | 8.2% | Beneficial Ownership of Preferred Units | Name of Beneficial Owner | Preferred Units | Percentage | | :--- | :--- | :--- | | Blackstone Inc. | 142,500 | 57% | | GoldenTree Asset Management, LP | 107,500 | 43% | [Certain Relationships and Related Transactions, and Director Independence](index=113&type=section&id=Item%2013%2E%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company engages in numerous related-party transactions, primarily with entities controlled by its CEO, governed by an omnibus agreement, and its partnership agreement addresses conflicts of interest, including those arising from preferred unitholder board representation - An omnibus agreement restricts general partner affiliates, including the WPP Group, from competing with NRP in 'restricted business' activities, subject to a **$75 million fair market value cap**[509](index=509&type=chunk)[511](index=511&type=chunk) - In February 2020, NRP waived the **$75 million cap** to allow Pocahontas Royalties, controlled by Mr. Robertson, Jr., to acquire mineral rights after NRP declined participation[519](index=519&type=chunk)[520](index=520&type=chunk) - The partnership agreement allows the general partner to resolve conflicts of interest, deeming resolutions 'fair and reasonable' if approved by the conflicts committee, on favorable terms, or fair to the partnership considering all relationships[536](index=536&type=chunk) [Principal Accountant Fees and Services](index=123&type=section&id=Item%2014%2E%20Principal%20Accountant%20Fees%20and%20Services) Ernst & Young LLP served as the independent auditor for 2021 and 2020, with the Audit Committee pre-approving all services, and total fees were approximately $1.17 million in 2021 and $1.29 million in 2020 Accountant Fees (in thousands) | Fee Type | 2021 | 2020 | | :--- | :--- | :--- | | Audit Fees | $757,450 | $785,750 | | Tax Fees | $412,500 | $505,915 | [PART IV](index=126&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules](index=126&type=section&id=Item%2015%2E%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements, schedules, and exhibits filed with the Form 10-K, including partnership and debt agreements, incentive plans, CEO/CFO certifications, and Sisecam Wyoming LLC's financial statements - The financial statements of Sisecam Wyoming LLC, required under Regulation S-X, are included as **Exhibit 99.1**[570](index=570&type=chunk) - Exhibits filed with the report include key governance documents, debt agreements, the Master Amendment with Foresight, and management compensation plans[571](index=571&type=chunk)[572](index=572&type=chunk)[574](index=574&type=chunk)

Natural Resource Partners L.P. (NYSE:NRP) Q4 2021 Earnings Conference Call March 15, 2022 9:00 AM ET Company Participants Tiffany Sammis - IR Craig Nunez - President and COO Christopher Zolas - CFO and Treasurer Conference Call Participants Operator Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the National Resource Partners LP Fourth Quarter 2021 Earnings Call. [Operator Instructions] As a reminder, this conference call is being re ...