NPR(US:NRP)2025-11-04 17:34Financial Performance - For the nine months ended September 30, 2025, total revenues and other income were $160.57 million, with mineral rights contributing $155.82 million and soda ash $4.75 million [100]. - Net income for the same period was $105.37 million, with mineral rights generating $125.76 million and soda ash $4.61 million, while corporate financing incurred a loss of $24.99 million [100]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $126.92 million, with mineral rights at $137.38 million and soda ash at $7.70 million [100]. - Total revenues and other income decreased by 21% to $160.570 million in the first nine months of 2025 compared to $202.281 million in 2024 [116]. - Adjusted EBITDA decreased by $49.7 million to $126.921 million, primarily due to a $29.4 million decrease in the Mineral Rights segment [123]. Cash Flow and Liquidity - Operating cash flow for the nine months ended September 30, 2025, was $121.10 million, and free cash flow was $123.20 million [102]. - Free cash flow decreased by $61.0 million to $123.240 million compared to the prior year period [125]. - Total liquidity as of September 30, 2025, was $190.1 million, consisting of $31.0 million in cash and cash equivalents and $159.1 million in borrowing capacity [126]. - Cash flows from operating activities decreased by $61.2 million, from $182.3 million in the nine months ended September 30, 2024, to $121.1 million in the same period of 2025 [127]. - Cash flows used in financing activities decreased by $45.6 million, from $170.2 million in the nine months ended September 30, 2024, to $124.5 million in the same period of 2025 [128]. Revenue Segments - Revenues from the mineral rights segment decreased by $29.3 million, or 16%, compared to the prior year, primarily due to lower metallurgical coal sales prices and volumes [104]. - Soda ash revenues decreased by $12.5 million, or 72%, compared to the prior year, mainly due to lower sales prices [107]. - Revenues from the Soda Ash segment fell by 72% to $4.746 million in the first nine months of 2025, down from $17.204 million in the same period of 2024 [116]. - Coal royalty revenues decreased by 18% to $101.234 million, down from $124.108 million in the prior year [117]. Operational Metrics - Total coal sales volumes increased by 5% to 7,529 tons in Q3 2025 compared to 7,190 tons in Q3 2024, with Appalachia region sales up 17% [110]. - Coal royalty revenues decreased by 9% to $34.193 million in Q3 2025 from $37.605 million in Q3 2024, primarily due to lower metallurgical coal sales prices and volumes [111]. - Adjusted EBITDA decreased by $6.9 million to $38.942 million in Q3 2025, driven by a $6.4 million decrease in the Soda Ash segment [114]. - Operating cash flow decreased by $13.1 million to $41.095 million in Q3 2025 compared to $54.145 million in Q3 2024, with the Mineral Rights segment contributing a $9.2 million decline [115]. Debt and Financial Risk - The leverage ratio as of September 30, 2025, was 0.4x, indicating a low level of debt relative to earnings [102]. - Total debt, net, as of September 30, 2025, was $69.4 million, down from $142.1 million as of December 31, 2024 [130]. - Current portion of long-term debt, net, was $14.2 million as of September 30, 2025 [130]. - The company is exposed to commodity price risk, particularly in coal, which could significantly impact future financial results [136]. - Interest rate risk exists due to borrowings under the Opco Credit Facility, with $40.9 million outstanding as of September 30, 2025; a 1% increase in interest rates would raise annual interest expense by approximately $0.4 million [139]. Market Conditions - The company expects continued weak pricing for metallurgical and thermal coal due to low global steel demand and ample coal stockpiles [105]. - The soda ash market remains oversupplied, with weak demand expected to persist, impacting future cash distributions from Sisecam Wyoming [108].