NPR(NRP) - 2025 Q3 - Quarterly Results

Financial Performance - Natural Resource Partners L.P. reported a net income of $30.9 million for Q3 2025, with a total net income of $148.1 million for the last twelve months[2]. - The company generated $41.8 million of free cash flow in Q3 2025, totaling $190.1 million over the last twelve months[3]. - Total revenues and other income for the three months ended September 30, 2025, were $49,931, a decrease of 17.3% compared to $60,327 for the same period in 2024[24]. - Net income for the nine months ended September 30, 2025, was $105,369, down 25.2% from $140,872 in the same period of 2024[24]. - The company reported a comprehensive income of $28,514 for the three months ended September 30, 2025, compared to $38,677 for the same period in 2024, indicating a decrease of 26.2%[24]. - For the nine months ended September 30, 2025, total revenues and other income amounted to $160,570, a decrease from $202,281 in the same period of 2024, representing a decline of approximately 20.5%[37]. - The company experienced a net income of $30,905 for the three months ended September 30, 2025, compared to $38,595 in the same period of 2024, representing a decrease of about 20%[52]. Cash Flow and Liquidity - A cash distribution of $0.75 per common unit was declared for Q3 2025, consistent with the previous quarter's distribution[4]. - NRP repaid $32 million of debt in Q3 2025, maintaining $190.1 million in available liquidity[11]. - The net cash provided by operating activities for the three months ended September 30, 2025, was $41,095, down from $54,145 in the same period of 2024, indicating a decline of approximately 24%[46]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $121,098, a decrease from $182,273 in 2024, representing a decline of approximately 34%[48]. - Free cash flow for the nine months ended September 30, 2025, was $123,240, down from $184,252 in 2024, which is a decrease of about 33%[48]. - Distributable cash flow for the three months ended September 30, 2025, was $42,729, compared to $54,819 in the same period of 2024, reflecting a decline of approximately 22%[46]. Segment Performance - Mineral Rights segment net income increased by $0.2 million year-over-year, but operating cash flow and free cash flow decreased by $9.2 million and $9.1 million, respectively, due to lower metallurgical coal prices[5]. - Soda Ash segment net income decreased by $10.5 million compared to the prior year, with operating cash flow and free cash flow each down by $6.4 million due to a lack of cash distribution from Sisecam Wyoming[8]. - For the three months ended September 30, 2025, revenues from mineral rights were $51,415, while the equity in earnings of Sisecam Wyoming was a loss of $2,390[35]. Market Outlook - The company anticipates continued weak pricing for metallurgical and thermal coal due to low global steel demand and high natural gas prices[6]. - The outlook for soda ash prices remains weak, with no immediate catalysts for market rebalancing expected[9]. Balance Sheet - Total assets as of September 30, 2025, were $753,554, down from $772,907 as of December 31, 2024[28]. - Total liabilities decreased to $142,304 as of September 30, 2025, from $221,799 as of December 31, 2024[28]. - The consolidated leverage ratio was reported at 0.4x as of September 30, 2025[12]. - The leverage ratio as of September 30, 2025, was 0.4x, indicating a reduction in debt relative to adjusted EBITDA[52]. Earnings and Expenses - Operating expenses for the three months ended September 30, 2025, totaled $17,247, a slight decrease from $17,538 in the same period of 2024[24]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $126,921, compared to $176,607 in 2024, indicating a decline of approximately 28%[44]. - The combined average coal royalty revenue per ton for the nine months ended September 30, 2025, was $4.64, down from $5.78 in 2024, a decrease of approximately 19.7%[40]. - Total coal royalty revenues for the nine months ended September 30, 2025, were $101,234, compared to $124,108 in 2024, reflecting a decline of about 18.4%[40].