Natural Resource Partners L.P. Reports Fourth Quarter and Full Year 2025 Results and Announces Special Distribution

Core Insights - Natural Resource Partners L.P. (NRP) reported a net income of $30.998 million for Q4 2025 and $136.367 million for the full year 2025, reflecting a decrease compared to the previous year [1][26] - The company generated $169 million in free cash flow and retired $109 million of debt during 2025, indicating strong cash generation despite challenging market conditions [2][5] - NRP declared a special cash distribution of $0.12 per common unit to assist unitholders with tax liabilities for 2025, with total distributions for the year amounting to $4.21 per common unit [3][5] Financial Performance - For Q4 2025, NRP's operating cash flow was $44.765 million, while for the full year, it was $165.863 million [1] - Free cash flow for Q4 2025 was $45.508 million, and for the full year, it was $168.748 million [1] - The company's liquidity stood at $211.2 million as of December 31, 2025, comprising $30.1 million in cash and $181.1 million in available borrowing capacity [2] Segment Performance - Mineral Rights segment net income decreased by $12.6 million in Q4 and $40.8 million for the full year compared to the prior year, primarily due to lower metallurgical coal prices and volumes [4] - Soda Ash segment net income also saw declines, with a decrease of $2.6 million in Q4 and $15.1 million for the full year, attributed to lower sales prices [8][9] - The soda ash market remains oversupplied, with prices expected to stay low for the foreseeable future, impacting NRP's revenue from this segment [9][10] Corporate and Financing - Corporate and financing costs decreased by $3.4 million in Q4 and $8.6 million for the full year, mainly due to lower interest expenses from reduced debt levels [11] - NRP's consolidated leverage ratio was reported at 0.2x as of December 31, 2025, indicating a low level of debt relative to earnings [12] Future Outlook - The company does not anticipate significant changes in coal pricing for 2026, as weak demand and supply conditions persist [6] - NRP's carbon neutral initiatives have faced challenges, including high operational costs and regulatory uncertainties, which may hinder progress in this area [7]