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].
NPR(NRP) - 2025 Q1 - Quarterly Report