NPR(NRP) - 2024 Q1 - Quarterly Report

Revenue Performance - For the three months ended March 31, 2024, total revenues decreased by $22.8 million, or 23$76.4 million compared to $99.2 million in the prior year period[116] - Mineral Rights segment revenues decreased by$9.0 million, or 11%, primarily due to lower metallurgical coal sales prices[111] - Soda Ash segment revenues decreased by $13.8 million, or 72$13.8 million in Q1 2024 compared to the prior year quarter due to lower sales prices[119] - Coal royalty revenues decreased by 19% to $46.818 million in Q1 2024 from$58.023 million in Q1 2023, primarily due to lower metallurgical coal sales prices[118] - Coal royalty revenue per ton decreased by 26% to $6.12 in Q1 2024 from$8.26 in Q1 2023[117] Cash Flow and Distributions - Operating cash flow for the quarter was $71.5 million, while free cash flow was$72.1 million[107] - The company paid a cash distribution of $0.75 per common unit and a special cash distribution of$2.44 per common unit in March 2024[110] - The company received a higher distribution from Sisecam Wyoming in Q1 2024, contributing to an increase in cash flow despite lower revenues in the Soda Ash segment[114] - Distributable cash flow (DCF) decreased by $1.3 million to$72.311 million in Q1 2024 compared to $73.597 million in Q1 2023[125] - Free cash flow (FCF) decreased by$1.4 million to $72.146 million in Q1 2024 from$73.496 million in Q1 2023[125] - Operating cash flow decreased by $1.4 million from$72.9 million in Q1 2023 to $71.5 million in Q1 2024, primarily due to lower cash flow in the Mineral Rights segment[127] Financial Position and Debt - As of March 31, 2024, the company had a leverage ratio of 0.6x[107] - Total debt as of March 31, 2024, was$188.8 million, an increase from $155.1 million as of December 31, 2023[128] - The leverage ratio as of March 31, 2024, was 0.6x, indicating a stable financial position[126] - The company has been in compliance with the financial covenants in its debt agreements[128] - There were no off-balance sheet arrangements or risks to liquidity from unconsolidated entities[129] Operating Performance - Adjusted EBITDA decreased by$4.6 million to $73.114 million in Q1 2024 from$77.737 million in Q1 2023, driven by lower revenues in the Mineral Rights segment[123] - Operating expenses decreased by 2% to $16.714 million in Q1 2024 from$17.091 million in Q1 2023, mainly due to reduced operating and maintenance expenses[120] - Operating cash flow, DCF, and FCF in the Mineral Rights segment decreased by $4.1 million due to lower metallurgical coal sales prices[126] - Operating cash flow, DCF, and FCF in the Soda Ash segment increased by$3.5 million due to higher distributions from Sisecam Wyoming[126] Market Outlook - The company expects continued price volatility in metallurgical and thermal coal due to global demand fluctuations and production limitations[112] - The company continues to explore carbon neutral revenue opportunities, including carbon sequestration and renewable energy generation[113] - If interest rates increase by 1%, annual interest expense would rise by approximately $1.5 million based on$146.2 million in borrowings under the Opco Credit Facility[137] - The company does not expect the adoption of ASU 2023-07 to materially affect its consolidated financial statements[133] Liquidity - Total liquidity as of March 31, 2024, was $64.8 million, consisting of$11.0 million in cash and cash equivalents and $53.8 million in borrowing capacity[126]