Financial Data and Key Metrics Changes - The company reported a fourth quarter net income of $7.6 million and a full year net income of $33.7 million, marking a significant recovery from a net loss of $44 million in the previous year [7][23] - Adjusted EBITDA for the fourth quarter increased to $9 million, a 27% rise from $7.1 million in the same quarter of 2023, while full year adjusted EBITDA surged 116% year-over-year to $59.4 million [7][24] Business Line Data and Key Metrics Changes - The Coal Mining segment saw adjusted EBITDA more than quadruple from 2023, with Mississippi Lignite Mining Company receiving $13.6 million in business interruption insurance income [10][11] - North American Mining reported a fourth quarter operating profit of $800,000, recovering from a $600,000 operating loss in the prior year, driven by reduced operating expenses [25] - Minerals Management's fourth quarter operating profit improved to $7.2 million from $2.5 million in 2023, primarily due to the absence of an impairment charge that affected the previous year's results [26] Market Data and Key Metrics Changes - The company anticipates solid customer demand in the Coal Mining segment for 2025, although a reduction in contractually determined per-ton sales price is expected to offset some improvements [29][30] - North American Mining is expected to deliver improved results in 2025, particularly in the second half of the year, based on stable customer demand [31] Company Strategy and Development Direction - The company is focused on expanding its portfolio and diversifying its operations, with a budget of up to $20 million annually for investments aimed at long-term stable cash flow generation [19] - The company is optimistic about its trajectory and believes that 2025 will be a pivotal year as legacy businesses stabilize and new ventures gain traction [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and business prospects entering 2025, citing favorable macroeconomic trends and increasing demand for electricity [27][28] - The company is preparing to terminate its defined benefit pension plan in 2024, which is expected to eliminate future volatility from pension obligations [32] Other Important Information - The company ended the year with approximately $73 million in cash and $99.5 million in debt, with $99 million available under its revolver [34][35] - In 2024, the company paid $6.6 million in dividends and repurchased approximately 317,000 shares of its Class A Common Stock for $9.9 million [35] Q&A Session Summary Question: On the coal business, the results seem better than they initially appeared due to a $6 million inventory write-down - Management confirmed that inventory write-downs were taken, impacting the EBITDA calculation [38] Question: Is the $10 million EBITDA a reasonable baseline for next year? - Management indicated that while adjustments can be made, the sales price for the coal segment is expected to be lower next year due to contractual terms [41][42] Question: What is the outlook for MLMC volumes? - Management noted that while there were outages affecting volumes, they expect improvements moving forward [46][47] Question: How does the company view the pricing reset and inflation impacts? - Management explained that the pricing formula is complex and tied to various indices, which can lead to fluctuations [60][62] Question: Is there conservatism in the guidance for Mineral Management? - Management acknowledged a conservative approach in their projections for pricing and volume production [64] Question: What is the cash flow outlook for 2025? - Management expects working capital to be a source of cash in 2025, with favorable changes anticipated in trade receivables [105][111]

Natural Resource Partners (NRP) Q4 2024 Earnings Call February 28, 2025 09:00 AM ET Company Participants Tiffany Sammis - Investor RelationsCraig Nunez - President & COOChristopher Zolas - CFO Operator Thank you for standing by. My name is Kate and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners LP Fourth Quarter twenty twenty four Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the ...

Financial Data and Key Metrics Changes - For the full year 2024, total revenues were $2.4 billion, adjusted EBITDA was $714.2 million, net income was $360.9 million, and earnings per unit were $2.77 [5] - Q4 2024 total revenues were $590.1 million, down from $625.4 million in Q4 2023, primarily due to lower coal and oil and gas prices, reduced coal sales volumes, and lower transportation revenues [5][6] - Net income for Q4 2024 was $16.3 million compared to $115.4 million in Q4 2023, reflecting lower coal sales volumes and realized prices [11] Business Line Data and Key Metrics Changes - Total coal production in Q4 2024 was 6.9 million tons, a decrease of 12.4% compared to Q4 2023, while coal sales volumes decreased by 2.3% to 8.4 million tons [7][8] - In the Illinois Basin, coal sales volumes increased by 2.8% compared to Q4 2023 due to increased volumes from specific mines [7] - Royalty segment revenues in Q4 2024 were $48.5 million, down 8.6% compared to Q4 2023, reflecting lower realized oil and gas commodity pricing [9] Market Data and Key Metrics Changes - The average coal sales price per ton for the full year 2024 was $63.38, close to the record level of $64.17 achieved in 2023 [6] - The total coal sales price per ton in Q4 2024 was $59.97, a decrease of 1% year-over-year and 5.7% sequentially [7] - The company anticipates coal sales volumes in 2025 to be in the range of 32.25 to 34.25 million tons, with over 78% of these volumes committed and priced [14] Company Strategy and Development Direction - The company plans to run two production units at MC Mining for all of 2025 to reduce operating costs [8] - Strategic capital improvements were executed at several mines, and the company remains committed to investing in its oil and gas minerals business [12][19] - The company expects improved coal production costs to counterbalance lower market prices, maintaining coal segment margins near 2024 levels [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about gradually improving market fundamentals and the potential for increased domestic sales in 2025 [15][21] - The company highlighted the importance of coal in meeting growing electricity demand and the strategic need for grid reliability [21][22] - Management noted that the new administration's policies are expected to support the continued operation of coal generation assets [23] Other Important Information - The company generated free cash flow of $383.5 million in 2024 after investing $410.9 million in coal operations [12] - The company declared a quarterly distribution of $0.70 per unit for Q4 2024, unchanged from the previous quarter [13] - The fair value of the company's digital assets was approximately $45 million at year-end 2024, positively impacting net income [24] Q&A Session Summary Question: Impact of recent tariffs on ARLP's business - Management indicated uncertainty regarding the impact of tariffs, suggesting that recent announcements appear to be more about negotiation than creating a tariff war [28][30] Question: Confidence in reaching domestic shipment goals - Management expressed confidence in reaching the 30 million ton goal for domestic shipments, with ongoing conversations expected to conclude soon [32][33] Question: Pricing expectations for 2024 - Management noted that pricing is influenced by supply and demand dynamics, with potential upside if weather conditions are favorable [61][62] Question: Changes in the oil and gas segment - Management acknowledged increased competition for acquiring new properties but remains focused on opportunities in the Permian Basin [84][85]