Natural Resource Partners L.P. Reports Third Quarter 2025 Results and Declares Third Quarter 2025 Distribution of $0.75 per Common Unit

Core Insights - Natural Resource Partners L.P. (NRP) 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 [1][2] - The company generated $41.8 million in free cash flow during Q3 2025 and $190 million over the last twelve months, despite ongoing depressed market conditions for coal and soda ash [2][3] - NRP declared a cash distribution of $0.75 per common unit for Q3 2025, consistent with previous distributions [2][6] Financial Performance - NRP's net income for Q3 2025 was $30,905,000, a decrease from $38,595,000 in Q3 2024 [1][22] - Operating cash flow for Q3 2025 was $41,095,000, down from $54,145,000 in Q3 2024 [25] - Free cash flow decreased slightly from the previous year, with Q3 2025 at $41,823,000 compared to $50,101,000 in Q3 2024 [1][22] Segment Performance - Mineral Rights segment saw a net income increase of $0.2 million, but operating cash flow and free cash flow decreased by $9.2 million and $9.1 million respectively due to lower metallurgical coal prices and volumes [3][4] - Soda Ash segment net income decreased by $10.5 million compared to the prior year, primarily due to lower sales prices [7][8] - The corporate and financing segment reported an increase in net income of $2.6 million, attributed to lower interest expenses [9][10] Market Conditions - NRP anticipates continued weak pricing for coal and soda ash due to low global demand and oversupply in the market [4][8] - The soda ash market is significantly oversupplied, with no immediate catalysts for price recovery expected [8] - The carbon neutral revenue opportunities remain weak, with challenges including high operational costs and an uncertain regulatory environment [5] Corporate Actions - NRP repaid $32 million of debt in Q3 2025, maintaining a consolidated leverage ratio of 0.4x as of September 30, 2025 [10] - The company had $190.1 million in available liquidity, consisting of $31 million in cash and $159.1 million in borrowing capacity [10]