NYSE:NRP Natural Resource Partners Q1 2024 Earnings Report $104.26 +4.38 (+4.38%) Closing price 04/17/2025 03:58 PM EasternExtended Trading$104.60 +0.33 (+0.32%) As of 04/17/2025 05:01 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Natural Resource Partners EPS ResultsActual EPS$3.83Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/ANatural Resource Partners Revenue ResultsActual Revenue$76.41 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/ANatural Resource Partners Announcement DetailsQuarterQ1 2024Date5/7/2024TimeN/AConference Call DateTuesday, May 7, 2024Conference Call Time9:00AM ETUpcoming EarningsNatural Resource Partners' Q1 2025 earnings is scheduled for Monday, May 5, 2025, with a conference call scheduled on Tuesday, May 6, 2025 at 9:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Natural Resource Partners Q1 2024 Earnings Call TranscriptProvided by QuartrMay 7, 2024 ShareLink copied to clipboard.There are 5 speakers on the call. Operator00:00:00Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners LP First Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer Thank you. Operator00:00:36I would now like to turn the conference over to Tiffany Sammis, Manager of Investor Relations. You may begin. Speaker 100:00:44Thank you. Good morning and welcome to the Natural Resource Partners' Q1 2024 Conference Call. Today's call is being webcast and a replay will be available on our website. Joining me today are Craig Nunez, President and Chief Operating Officer Chris Zolas, Chief Financial Officer and Kevin Craig, Executive Vice President. Some of our comments today may include forward looking statements reflecting NRP's views about future events. Speaker 100:01:10These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward looking statements. These risks are discussed in NRP's Form 10 ks and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward looking statements for any reason. Our comments today also include non GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP measures are included in our Q1 press release, which can be found on our website. Speaker 100:01:43I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular lessee or detailed market fundamentals. Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer. Speaker 200:01:56Thank you, Speaker 300:01:56Tiffany, and good morning, everyone. NRP generated $72,000,000 of free cash flow in the first quarter and $312,000,000 of free cash flow over the last 12 months. This robust cash generation has allowed us to make noteworthy progress toward our goal of eliminating all financial obligations. As of today, our total remaining obligations, which include debt and preferred equity, stand at approximately $240,000,000 a 45% decrease from just 1 year ago. Since embarking on our de risking strategy in 2015, we have settled 100% of the outstanding warrants, paid off nearly 90% of our debt and redeemed more than 70% of the preferred equity. Speaker 300:02:46We stand firm in our belief that this is the best strategy to maximize the intrinsic value of our business, which should in turn maximize long term unitholder returns. The primary drivers of our recent strong performance were historically high prices for both metallurgical coal and soda ash, which have declined from record highs and will likely remain volatile for the foreseeable future. We believe the muted investment in new met coal supply will provide support for prices, but not at the record high level seen in recent years. Soda ash prices are also under pressure from a significant increase in global capacity from new projects in China, Turkey and the United States. We believe it will take several years for the market to absorb these new supplies. Speaker 300:03:33While we expect the partnership's free cash flow to decline from 2023's record level due to these factors, Our capital structure is solid and improving and we anticipate the business will continue to generate robust levels of free cash flow for the foreseeable future. We expect to remain on track to pay off all debt and preferred stock while paying common unit distributions to help cover unitholder tax liabilities associated with owning NRP common units. Our mineral rights business generated $70,000,000 of free cash flow during the Q1 of 2024. Metallurgical coal prices declined in Q1 versus 2023, but remain generally at or above historical norms. While we expect met prices to remain volatile, global supply and demand remains in reasonable balance and we believe it will stay that way for the foreseeable future due to long term demand trends and continued modest investment in new met supply. Speaker 300:04:35Thermal coal prices experienced significant volatility during the quarter as high inventory levels driven by mild weather and low price natural gas put downward pressure on U. S. Domestic demand. While we do not believe thermal coal prices will rebound to the record high levels seen in recent years, underinvestment in new sources of thermal coal production and solid international demand should provide price support for the foreseeable future at levels that are competitive when compared to historical norms. Longer term, we believe the domestic thermal market will continue its long term secular decline. Speaker 300:05:14Moving to soda ash, we received a $14,000,000 cash distribution from Sissajam Wyoming in the Q1 of 2024. This quarterly distribution was paid in connection with the Q4 2023 performance, when soda ash prices were much higher than they were during the Q1. The soda ash market continues to remain oversupplied, putting downward pressure on prices, a trend that began in the second half of last year as new supply flooded the market. Our lower first quarter net income compared to prior quarters reflects this weaker price environment and we expect future distributions from Sissajam Wyoming to adjust accordingly. Despite the present challenging soda ash market, our long term outlook for our investment in Sissajam Wyoming remains positive. Speaker 300:06:04We are one of the world's lowest cost producers of a product that has favorable long term fundamentals driven by urbanization, the megatrends for renewable energy and the electrification of the global auto fleet. Our soda ash business remains a key asset in generating value for NRP unitholders today and in the long run. We continue to explore opportunities to lease our mineral and surface assets for permanent underground CO2 sequestration, forest sequestration, lithium production and the generation of electricity using geothermal wind and solar energy. While we believe the carbon neutral industry is still decades from full development, the potential upside from our carbon neutral initiatives could be significant all while requiring no capital investment by NRP. And with that, I'll turn the call over to Chris to cover the financial results. Speaker 200:07:01Thank you, Craig. In the Q1 of 2024, NRP generated $71,000,000 of operating cash flow $56,000,000 of net income, despite weakening in both coal and soda ash markets. Moving to our segment results. Our Mineral Rights segment generated $70,000,000 of operating cash flow $61,000,000 of net income during the Q1 of 2024. When compared to the prior year, our Mineral Rights segment's net income and operating cash flow decreased $8,000,000 $4,000,000 respectively, primarily due to lower metallurgical coal prices. Speaker 200:07:38Regarding our met thermal coal royalty mix, metallurgical coal made up approximately 75% of our coal royalty revenues and 50% of sales volumes in the Q1 of 2024. Shifting to our soda ash business segment. Net income in the Q1 of 2024 decreased $14,000,000 as compared to the prior year quarter due to increased supply from China that resulted in significantly lower international sales prices, slightly lower domestic sales prices and lower sales volumes compared to the prior year quarter. Operating cash flow from this segment increased $4,000,000 as compared to the prior year quarter. As Craig mentioned earlier, the distribution we received in Q1 of 2024 was paid in connection with the Q4 of 2023 performance, a period with higher international and domestic sales prices. Speaker 200:08:34Moving to our Corporate and Financing segment. Q1 2024 net income and operating cash flow decreased $1,000,000 primarily due to higher interest expense and cash paper interest because of increased borrowings outstanding on the credit facility that were used to settle warrants. In the Q1 of 2024, we settled $1,200,000 warrants with a combination of $56,000,000 of cash and issuing a bit less than 200,000 NRP common units. And in April, we settled the remaining $300,000 of our outstanding warrants with $10,000,000 of cash and issuing a bit over 89,000 common units. After this April settlement, no warrants remain outstanding. Speaker 200:09:21In the Q1 of 2024, we utilized the accordion feature on our existing credit facility and added $45,000,000 of borrowing capacity to reach the full $200,000,000 amount available to us. This represents an increase in borrowing capacity of 54% from just 1 year ago. We've used this credit facility along with our free cash flow to permanently retire preferred equity and warrants and we'll continue doing so to redeem the remaining $72,000,000 of preferred equity. As Craig mentioned earlier, we made significant progress on our long term goal to eliminate our obligations and we remain laser focused on eliminating our remaining obligations made up of debt and preferred equity. I'd like to point out that the potentially dilutive effect of preferred equity and warrants has been significantly reduced by a redemption of $178,000,000 of the original $250,000,000 of preferred equity and the settlement of warrants. Speaker 200:10:21As evidenced, the diluted weighted average number of common units in Q1 2024 decreased almost 20% compared to the prior year quarter. Consequently, our Q1 2024 diluted net income per common unit increased 11 percent compared to the prior year quarter, even though our basic EPU was down 6% compared to the prior year quarter. Finally, regarding our quarterly distributions, in February of 2024, we paid a 4th quarter distribution of $0.75 per common unit and a $2,000,000 cash distribution to our preferred unitholders. In March of 2024, we announced and paid a special distribution of $2.44 per common unit to help cover unitholder tax liabilities associated with owning NRP's common units in 2023. And today, we announced our Q1 distribution of $0.75 per common unit and a $2,000,000 cash distribution to our preferred unitholders. Speaker 200:11:22And with that, I'll turn the call back over to our operator for questions. Operator00:11:28Thank you. We will now begin the question and answer session. The first question comes from the line of Nat Stewart of NAS Capital LLC. Please go ahead. Speaker 400:12:17Hi, good morning. I just had one question. Is there any update on anything going on with the existing agreements for the carbon storage? Is there any updates on the permitting process or any information you might have on what's going on there? Speaker 300:12:38Unfortunately, we do not. Speaker 400:12:41Okay. All right. Well, that's my question. Thanks. Speaker 200:12:45Thank you. Operator00:12:56There are no questions. I will now turn the conference back over to Craig Nunez for closing remarks. Speaker 300:13:03Thank you, operator, and thank you everyone for participating on our call and thank you for your continued support of NRP. Have a great day. Bye. Operator00:13:13Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallNatural Resource Partners Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Natural Resource Partners Earnings HeadlinesNatural Resource Partners L.P. (NRP): A Bull Case TheoryMarch 28, 2025 | insidermonkey.comNRP Q4 Earnings Drop Y/Y Amid Weak Coal, Soda Ash PricesMarch 11, 2025 | msn.comTrump to unlock 15-figure fortune for America (May 3rd) ?We were shown this map by former Presidential Advisor, Jim Rickards, one of the most politically connected men in America. Rickards has spent his fifty-year career in the innermost circles of the U.S. government and banking. And he believes Trump could soon release this frozen asset to the public. April 21, 2025 | Paradigm Press (Ad)Natural Resource Partners L.P. 2024 Tax InformationMarch 7, 2025 | finance.yahoo.comNatural Resource Partners L.P. (NYSE:NRP) Q4 2024 Earnings Call TranscriptMarch 3, 2025 | insidermonkey.comNatural Resource Partners reports strong Q4, shares surgeMarch 1, 2025 | za.investing.comSee More Natural Resource Partners Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Natural Resource Partners? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Natural Resource Partners and other key companies, straight to your email. Email Address About Natural Resource PartnersNatural Resource Partners (NYSE:NRP), together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.View Natural Resource Partners ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Archer Aviation Unveils NYC Network Ahead of Key Earnings Report3 Reasons to Like the Look of Amazon Ahead of EarningsTesla Stock Eyes Breakout With Earnings on DeckJohnson & Johnson Earnings Were More Good Than Bad—Time to Buy? 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There are 5 speakers on the call. Operator00:00:00Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners LP First Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer Thank you. Operator00:00:36I would now like to turn the conference over to Tiffany Sammis, Manager of Investor Relations. You may begin. Speaker 100:00:44Thank you. Good morning and welcome to the Natural Resource Partners' Q1 2024 Conference Call. Today's call is being webcast and a replay will be available on our website. Joining me today are Craig Nunez, President and Chief Operating Officer Chris Zolas, Chief Financial Officer and Kevin Craig, Executive Vice President. Some of our comments today may include forward looking statements reflecting NRP's views about future events. Speaker 100:01:10These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward looking statements. These risks are discussed in NRP's Form 10 ks and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward looking statements for any reason. Our comments today also include non GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP measures are included in our Q1 press release, which can be found on our website. Speaker 100:01:43I would like to remind everyone that we do not intend to discuss the operations or outlook for any particular lessee or detailed market fundamentals. Now, I would like to turn the call over to Craig Nunez, our President and Chief Operating Officer. Speaker 200:01:56Thank you, Speaker 300:01:56Tiffany, and good morning, everyone. NRP generated $72,000,000 of free cash flow in the first quarter and $312,000,000 of free cash flow over the last 12 months. This robust cash generation has allowed us to make noteworthy progress toward our goal of eliminating all financial obligations. As of today, our total remaining obligations, which include debt and preferred equity, stand at approximately $240,000,000 a 45% decrease from just 1 year ago. Since embarking on our de risking strategy in 2015, we have settled 100% of the outstanding warrants, paid off nearly 90% of our debt and redeemed more than 70% of the preferred equity. Speaker 300:02:46We stand firm in our belief that this is the best strategy to maximize the intrinsic value of our business, which should in turn maximize long term unitholder returns. The primary drivers of our recent strong performance were historically high prices for both metallurgical coal and soda ash, which have declined from record highs and will likely remain volatile for the foreseeable future. We believe the muted investment in new met coal supply will provide support for prices, but not at the record high level seen in recent years. Soda ash prices are also under pressure from a significant increase in global capacity from new projects in China, Turkey and the United States. We believe it will take several years for the market to absorb these new supplies. Speaker 300:03:33While we expect the partnership's free cash flow to decline from 2023's record level due to these factors, Our capital structure is solid and improving and we anticipate the business will continue to generate robust levels of free cash flow for the foreseeable future. We expect to remain on track to pay off all debt and preferred stock while paying common unit distributions to help cover unitholder tax liabilities associated with owning NRP common units. Our mineral rights business generated $70,000,000 of free cash flow during the Q1 of 2024. Metallurgical coal prices declined in Q1 versus 2023, but remain generally at or above historical norms. While we expect met prices to remain volatile, global supply and demand remains in reasonable balance and we believe it will stay that way for the foreseeable future due to long term demand trends and continued modest investment in new met supply. Speaker 300:04:35Thermal coal prices experienced significant volatility during the quarter as high inventory levels driven by mild weather and low price natural gas put downward pressure on U. S. Domestic demand. While we do not believe thermal coal prices will rebound to the record high levels seen in recent years, underinvestment in new sources of thermal coal production and solid international demand should provide price support for the foreseeable future at levels that are competitive when compared to historical norms. Longer term, we believe the domestic thermal market will continue its long term secular decline. Speaker 300:05:14Moving to soda ash, we received a $14,000,000 cash distribution from Sissajam Wyoming in the Q1 of 2024. This quarterly distribution was paid in connection with the Q4 2023 performance, when soda ash prices were much higher than they were during the Q1. The soda ash market continues to remain oversupplied, putting downward pressure on prices, a trend that began in the second half of last year as new supply flooded the market. Our lower first quarter net income compared to prior quarters reflects this weaker price environment and we expect future distributions from Sissajam Wyoming to adjust accordingly. Despite the present challenging soda ash market, our long term outlook for our investment in Sissajam Wyoming remains positive. Speaker 300:06:04We are one of the world's lowest cost producers of a product that has favorable long term fundamentals driven by urbanization, the megatrends for renewable energy and the electrification of the global auto fleet. Our soda ash business remains a key asset in generating value for NRP unitholders today and in the long run. We continue to explore opportunities to lease our mineral and surface assets for permanent underground CO2 sequestration, forest sequestration, lithium production and the generation of electricity using geothermal wind and solar energy. While we believe the carbon neutral industry is still decades from full development, the potential upside from our carbon neutral initiatives could be significant all while requiring no capital investment by NRP. And with that, I'll turn the call over to Chris to cover the financial results. Speaker 200:07:01Thank you, Craig. In the Q1 of 2024, NRP generated $71,000,000 of operating cash flow $56,000,000 of net income, despite weakening in both coal and soda ash markets. Moving to our segment results. Our Mineral Rights segment generated $70,000,000 of operating cash flow $61,000,000 of net income during the Q1 of 2024. When compared to the prior year, our Mineral Rights segment's net income and operating cash flow decreased $8,000,000 $4,000,000 respectively, primarily due to lower metallurgical coal prices. Speaker 200:07:38Regarding our met thermal coal royalty mix, metallurgical coal made up approximately 75% of our coal royalty revenues and 50% of sales volumes in the Q1 of 2024. Shifting to our soda ash business segment. Net income in the Q1 of 2024 decreased $14,000,000 as compared to the prior year quarter due to increased supply from China that resulted in significantly lower international sales prices, slightly lower domestic sales prices and lower sales volumes compared to the prior year quarter. Operating cash flow from this segment increased $4,000,000 as compared to the prior year quarter. As Craig mentioned earlier, the distribution we received in Q1 of 2024 was paid in connection with the Q4 of 2023 performance, a period with higher international and domestic sales prices. Speaker 200:08:34Moving to our Corporate and Financing segment. Q1 2024 net income and operating cash flow decreased $1,000,000 primarily due to higher interest expense and cash paper interest because of increased borrowings outstanding on the credit facility that were used to settle warrants. In the Q1 of 2024, we settled $1,200,000 warrants with a combination of $56,000,000 of cash and issuing a bit less than 200,000 NRP common units. And in April, we settled the remaining $300,000 of our outstanding warrants with $10,000,000 of cash and issuing a bit over 89,000 common units. After this April settlement, no warrants remain outstanding. Speaker 200:09:21In the Q1 of 2024, we utilized the accordion feature on our existing credit facility and added $45,000,000 of borrowing capacity to reach the full $200,000,000 amount available to us. This represents an increase in borrowing capacity of 54% from just 1 year ago. We've used this credit facility along with our free cash flow to permanently retire preferred equity and warrants and we'll continue doing so to redeem the remaining $72,000,000 of preferred equity. As Craig mentioned earlier, we made significant progress on our long term goal to eliminate our obligations and we remain laser focused on eliminating our remaining obligations made up of debt and preferred equity. I'd like to point out that the potentially dilutive effect of preferred equity and warrants has been significantly reduced by a redemption of $178,000,000 of the original $250,000,000 of preferred equity and the settlement of warrants. Speaker 200:10:21As evidenced, the diluted weighted average number of common units in Q1 2024 decreased almost 20% compared to the prior year quarter. Consequently, our Q1 2024 diluted net income per common unit increased 11 percent compared to the prior year quarter, even though our basic EPU was down 6% compared to the prior year quarter. Finally, regarding our quarterly distributions, in February of 2024, we paid a 4th quarter distribution of $0.75 per common unit and a $2,000,000 cash distribution to our preferred unitholders. In March of 2024, we announced and paid a special distribution of $2.44 per common unit to help cover unitholder tax liabilities associated with owning NRP's common units in 2023. And today, we announced our Q1 distribution of $0.75 per common unit and a $2,000,000 cash distribution to our preferred unitholders. Speaker 200:11:22And with that, I'll turn the call back over to our operator for questions. Operator00:11:28Thank you. We will now begin the question and answer session. The first question comes from the line of Nat Stewart of NAS Capital LLC. Please go ahead. Speaker 400:12:17Hi, good morning. I just had one question. Is there any update on anything going on with the existing agreements for the carbon storage? Is there any updates on the permitting process or any information you might have on what's going on there? Speaker 300:12:38Unfortunately, we do not. Speaker 400:12:41Okay. All right. Well, that's my question. Thanks. Speaker 200:12:45Thank you. Operator00:12:56There are no questions. I will now turn the conference back over to Craig Nunez for closing remarks. Speaker 300:13:03Thank you, operator, and thank you everyone for participating on our call and thank you for your continued support of NRP. Have a great day. Bye. Operator00:13:13Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.Read morePowered by