Financial Performance - Natural Resource Partners L.P. reported a record free cash flow of $313 million for the full year 2023, driven by increased distributions from the soda ash business and strong metallurgical coal prices[3]. - Net income for 2023 was $278,435, compared to $268,492 in 2022, indicating an increase of about 3.5%[40]. - Adjusted EBITDA for 2023 was $319,664, slightly up from $317,247 in 2022, reflecting a growth of approximately 0.8%[40]. - Total revenues and other income for Q4 2023 were $93.163 million, a decrease of 4% from $97.055 million in Q4 2022[28]. - Net income for Q4 2023 was $64.980 million, compared to $63.218 million in Q4 2022, reflecting a growth of 2.8%[28]. - Net income attributable to common unitholders for the year ended 2023 was $196.771 million, down from $233.722 million in 2022, representing a decline of 15.8%[28]. - Cash flows from operating activities for Q4 2023 were $77.786 million, an increase of 12.5% from $68.888 million in Q4 2022[30]. - The company reported a comprehensive income of $59.613 million in Q4 2023, compared to $79.903 million in Q4 2022, reflecting a decrease of 25.4%[28]. - For the year ended December 31, 2023, total revenues and other income reached $370,009, a decrease from $388,962 in 2022, representing a decline of approximately 4.5%[40]. - Distributable cash flow for the year ended December 31, 2023, was $316,394,000, compared to $269,526,000 in 2022, indicating a significant increase[52]. Cash Flow and Liquidity - The company's liquidity stood at $71.2 million as of December 31, 2023, consisting of $12 million in cash and $59.2 million in available borrowing capacity[3]. - Cash flow from operating activities for 2023 was $310,978, compared to $266,838 in 2022, marking an increase of about 16.6%[40]. - Free cash flow for 2023 was $313,431, up from $268,443 in 2022, indicating a growth of approximately 16.7%[40]. - The company reported net cash used in financing activities of $86.843 million for Q4 2023, compared to $91.644 million in Q4 2022, indicating a decrease of 5.5%[30]. - The total cash flow provided by financing activities in 2023 was $(343,496), compared to $(365,955) in 2022, showing an improvement of approximately 6.2%[40]. - Free cash flow for the three months ended December 31, 2023, was $78,419,000, an increase from $69,414,000 in the same period of 2022[49]. Segment Performance - Mineral Rights segment net income for the full year 2023 decreased by $21.9 million compared to the prior year, primarily due to lower metallurgical coal pricing and oil and gas royalty revenues[7]. - Soda Ash segment net income increased by $13.5 million for the full year 2023, attributed to higher sales prices driven by strong domestic demand[10]. - Revenues for the mineral rights segment were $76,398,000 in Q4 2023, a decrease of 5.7% from $80,913,000 in Q4 2022[38]. - Total coal royalty revenues for 2023 were $218,011, a decrease from $226,956 in 2022, representing a decline of approximately 3.9%[43]. Debt and Equity - NRP redeemed $178 million of preferred units at par and repurchased 1.46 million warrants for $56.1 million in cash during 2023[5]. - The company reported a total partners' capital of $531,054,000 as of December 31, 2023, up from $477,457,000 in 2022, an increase of 11.2%[34]. - The current portion of long-term debt decreased to $30,785,000 in 2023 from $39,076,000 in 2022, a reduction of 21.0%[32]. - The leverage ratio as of December 31, 2023, was 0.5x, unchanged from the previous year[54]. Special Distributions and Future Outlook - The company declared a special cash distribution of $2.44 per common unit to be paid on March 26, 2024, to help cover unitholder tax liabilities for 2023[4]. - NRP continues to explore carbon neutral revenue sources, including carbon sequestration and renewable energy activities, leveraging its extensive asset portfolio[9]. - Metallurgical and thermal coal prices showed variability in 2023 but are expected to remain supported in 2024 due to labor shortages and inflationary pressures[8].
NPR(NRP) - 2023 Q4 - Annual Results