Revenue and Production - Total revenues for 2024 amounted to $268,007,000, with 93% from Mineral Rights and 7% from Soda Ash [28]. - The Mineral Rights segment primarily generates revenue from coal royalties, with significant contributions from the Appalachia Basin, Illinois Basin, and Northern Powder River Basin [30]. - In 2024, total coal production reached 27,720,000 tons, comprising 12,233,000 tons of thermal coal and 15,487,000 tons of metallurgical coal [39]. - Revenue from coal transportation and processing assets was recorded at $10.9 million for the year ended December 31, 2024 [56]. - Oil and gas royalty revenues amounted to $8.6 million in 2024, while aggregates royalty revenues were $2.9 million [58]. - Net sales for Sisecam Wyoming were $578.1 million in 2024, down from $773.6 million in 2023 and $720.1 million in 2022, reflecting a decrease of approximately 25.3% year-over-year [80]. - Significant coal lessees accounted for approximately 28% of total revenues in 2024, with other lessees contributing 16% and 12% respectively [150]. Properties and Assets - The Alpha-CAPP (VA) property had a book value of $44,000,000 as of December 31, 2024, with substantial coal sales primarily from metallurgical coal [41]. - The Williamson property, located in Illinois, had a book value of $34,400,000 as of December 31, 2024, and is leased for thermal coal production [48]. - The current lease for the Oak Grove property in Alabama expires in 2029, with a book value of $3,000,000 as of December 31, 2024 [46]. - The book value of the Hillsboro property was $203.9 million as of December 31, 2024 [51]. - Proven and probable trona reserves at the Big Island Mine increased by 6.4 million short tons, or 3.0%, to 217.7 million short tons as of December 31, 2024, compared to 211.3 million short tons in 2023 [84]. - The total measured and indicated mineral resources exclusive of reserves decreased to 153.3 million short tons as of December 31, 2024, from 162.3 million short tons in 2023 [84]. Market and Competition - The company faces competition from larger soda ash producers with greater market share and resources, which could impact customer retention and demand [102]. - The volatility in coal prices and competition from natural gas and renewable energy sources have adversely affected thermal coal prices [144]. - The market price of soda ash is volatile, and substantial declines could adversely impact the company's ability to make distributions and its overall results [149]. - The company's ability to compete may be impacted by fluctuations in transportation costs, which represent a significant portion of the total delivered cost for lessees' customers [168]. Environmental and Regulatory Factors - The company is involved in carbon neutral initiatives, including the sale of carbon offset credits and potential geothermal energy generation [30]. - The EPA's methane emissions fee starts at $900 per metric ton in 2024, increasing to $1,200 in 2025 and $1,500 in 2026 [110]. - The Clean Air Act regulations have led to a reduction in coal's share of power generating capacity, negatively impacting coal-related revenues [109]. - Compliance with federal, state, and local regulations is expected to continue to significantly increase operational costs for the company [106]. - The Inflation Reduction Act imposes a fee on excess methane emissions, which could increase operating costs for oil and gas companies [110]. - The company faces risks from potential bankruptcies in the coal industry, which could disrupt operations and affect revenue [151]. Financial Condition and Indebtedness - As of December 31, 2024, the company had approximately $142.3 million in total indebtedness, with $14 million due in principal repayments during 2025 [139]. - The company recorded impairment charges of approximately $0.1 million for the year ended December 31, 2024, related to properties that may not be operated profitably [146]. - The partnership agreement requires a consolidated leverage ratio of less than 3.25x to make quarterly distributions exceeding $0.45 per unit [138]. - The company has adopted certain valuation methodologies for income allocation, which may be challenged by the IRS, potentially affecting the timing and amount of taxable income allocated to unitholders [207]. Operational and Management Aspects - The company does not operate mines directly, thus limiting exposure to operational costs and environmental risks [33]. - The company relies on its lessees to manage operations effectively; any failure could lead to decreased production volumes and royalty revenues [164]. - As of December 31, 2024, the company employed 54 individuals directly supporting operations, with no collective bargaining agreements in place [134]. - The company is committed to a culture of integrity and professional growth, emphasizing respect and dignity for all individuals [135]. Tax and Distribution Issues - Unitholders may face tax liabilities on allocated taxable income even if no cash distributions are received [194]. - Changes in U.S. federal income tax laws could negatively impact the value of investments in the company's units [190]. - The company may engage in transactions that generate taxable income for unitholders without corresponding cash distributions [196]. - Non-U.S. unitholders will be subject to U.S. federal income taxes and withholding on distributions and sale proceeds, with a combined withholding tax rate that may include a 10% tax on excess distributions [204].
NPR(NRP) - 2024 Q4 - Annual Report