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Accounts payable include override payments owed by NRP from contracts with customers. Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023. Relates to accrued distribution paid upon redemption of 45,000 preferred units in June 2023. Other long-term assets, net includes amounts prepaid by NRP related to override agreements from contracts with customers as well as long-term lease amendment fee receivables from contracts with customers. Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023. The fair value of the Opco Senior Notes was estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit Facility. The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay this debt at any time without penalty. Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest Relates to accrued distribution paid upon the redemption of 40,000 preferred units in May 2024. Related to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023. Lease term does not include renewal periods. Other current assets, net includes short-term notes receivables from contracts with customers. The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at September 30, 2024 and December 31, 2023. Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022. Net income includes $0.66 million of income attributable to preferred unitholders that accumulated during the period, of which $0.64 million is allocated to the common unitholders and $0.01 million is allocated to the general partner. Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner. Related to accrued distribution paid upon the redemption of 31,666 preferred units in September 2024. Alabama Kanu Holdings, LLC purchased Hatfield Metallurgical Holdings, LLC in August 2024. Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner. Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner. Net income includes $1.44 million of income attributable to preferred unitholders that accumulated during the period, of which $1.41 million is allocated to the common unitholders and $0.03 million is allocated to the general partner. Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner. 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Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2024 or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

     
  

Commission file number:

 001-31465

 

 

logo.jpg

 

NATURAL RESOURCE PARTNERS LP

 

(Exact name of registrant as specified in its charter)

 

 

Delaware

35-2164875

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1415 Louisiana Street, Suite 3325

Houston, Texas 77002

(Address of principal executive offices)

(Zip Code)

(713) 751-7507

(Registrants telephone number, including area code) 

   

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Units representing limited partner interests

 

NRP

 

New York Stock Exchange

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒   No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definition of "accelerated filer", "large accelerated filer", "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large Accelerated Filer

Accelerated Filer

 

Non-accelerated Filer

Smaller Reporting Company

 
  

Emerging Growth Company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  ☒

 

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes ☐    No  ☐

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

 

 

 

NATURAL RESOURCE PARTNERS, L.P.

TABLE OF CONTENTS

 

   

Page

Part I. Financial Information

Item 1.

Consolidated Financial Statements

 
 

Consolidated Balance Sheets

1

 

Consolidated Statements of Comprehensive Income

2

 

Consolidated Statements of Partners Capital

3

 

Consolidated Statements of Cash Flows

5

 

Notes to Consolidated Financial Statements

6

Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

Part II. Other Information

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

Item 3.

Defaults Upon Senior Securities

31

Item 4.

Mine Safety Disclosures

31

Item 5.

Other Information

31

Item 6.

Exhibits

31

 

Signatures

32

 

 

 

 

PART I. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED BALANCE SHEETS

 

  

September 30,

  

December 31,

 
  2024  2023 

(In thousands, except unit data)

 

(Unaudited)

    

ASSETS

        

Current assets

        

Cash and cash equivalents

 $30,900  $11,989 

Accounts receivable, net

  36,886   41,086 

Other current assets, net

  1,483   2,218 

Total current assets

 $69,269  $55,293 

Land

  24,008   24,008 

Mineral rights, net

  382,274   394,483 

Intangible assets, net

  13,109   13,682 

Equity in unconsolidated investment

  267,806   276,549 

Long-term contract receivable, net

  24,212   26,321 

Other long-term assets, net

  9,187   7,540 

Total assets

 $789,865  $797,876 

LIABILITIES AND CAPITAL

        

Current liabilities

        

Accounts payable

 $984  $885 

Accrued liabilities

  7,912   12,987 

Accrued interest

  775   584 

Current portion of deferred revenue

  5,823   4,599 

Current portion of long-term debt, net

  14,226   30,785 

Total current liabilities

 $29,720  $49,840 

Deferred revenue

  53,912   38,356 

Long-term debt, net

  183,137   124,273 

Other non-current liabilities

  5,903   7,172 

Total liabilities

 $272,672  $219,641 

Commitments and contingencies (see Note 13)

          

Class A Convertible Preferred Units (71,666 issued and outstanding at December 31, 2023 at $1,000 par value per unit) (See Note 3)

 $  $47,181 

Partners’ capital

        

Common unitholders’ interest (13,049,123 and 12,634,642 units issued and outstanding at September 30, 2024 and December 31, 2023, respectively)

 $509,258  $503,076 

General partner’s interest

  8,891   8,005 

Warrant holders’ interest

     23,095 

Accumulated other comprehensive loss

  (956)  (3,122)

Total partners’ capital

 $517,193  $531,054 

Total liabilities and partners' capital

 $789,865  $797,876 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands, except per unit data)

 

2024

   

2023

   

2024

   

2023

 

Revenues and other income

                               

Royalty and other mineral rights

  $ 50,405     $ 68,533     $ 172,368     $ 205,811  

Transportation and processing services

    1,812       4,579       7,900       11,447  

Equity in earnings of Sisecam Wyoming

    8,109       12,401       17,204       58,633  

Gain on asset sales and disposals

    1       854       4,809       955  

Total revenues and other income

  $ 60,327     $ 86,367     $ 202,281     $ 276,846  
                                 

Operating expenses

                               

Operating and maintenance expenses

  $ 6,786     $ 8,358     $ 18,391     $ 23,451  

Depreciation, depletion and amortization

    4,730       4,594       12,708       12,469  

General and administrative expenses

    5,935       5,669       18,193       17,157  

Asset impairments

    87       63       87       132  

Total operating expenses

  $ 17,538     $ 18,684     $ 49,379     $ 53,209  
                                 

Income from operations

  $ 42,789     $ 67,683     $ 152,902     $ 223,637  
                                 

Interest expense, net

  $ (4,194 )   $ (3,837 )   $ (12,030 )   $ (10,182 )
                                 

Net income

  $ 38,595     $ 63,846     $ 140,872     $ 213,455  

Less: income attributable to preferred unitholders

    (655 )     (2,936 )     (4,248 )     (14,568 )

Less: redemption of preferred units

    (10,819 )     (17,083 )     (24,485 )     (60,929 )

Net income attributable to common unitholders and the general partner

  $ 27,121     $ 43,827     $ 112,139     $ 137,958  
                                 

Net income attributable to common unitholders

  $ 26,578     $ 42,951     $ 109,896     $ 135,199  

Net income attributable to the general partner

    543       876       2,243       2,759  
                                 

Net income per common unit (see Note 5)

                               

Basic

  $ 2.04     $ 3.40     $ 8.47     $ 10.72  

Diluted

    2.00       2.91       8.21       8.88  
                                 

Net income

  $ 38,595     $ 63,846     $ 140,872     $ 213,455  

Comprehensive income (loss) from unconsolidated investment and other

    82       2,200       2,166       (16,472 )

Comprehensive income

  $ 38,677     $ 66,046     $ 143,038     $ 196,983  

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL

(Unaudited)

 

                  

Accumulated

     
                  

Other

  

Total

 
  

Common Unitholders

  

General

  

Warrant

  

Comprehensive

  

Partners'

 

(In thousands)

 

Units

  

Amounts

  

Partner

  

Holders

  

Loss

  

Capital

 

Balance at December 31, 2023

  12,635  $503,076  $8,005  $23,095  $(3,122) $531,054 

Net income (1)

     55,089   1,124         56,213 

Distributions to common unitholders and the general partner

     (41,342)  (844)        (42,186)

Distributions to preferred unitholders

     (2,107)  (43)        (2,150)

Issuance of unit-based awards

  126                

Unit-based awards amortization and vesting, net

     (3,971)           (3,971)

Capital contribution

        227         227 

Warrant settlements

  199   (36,650)  (748)  (18,291)     (55,689)

Comprehensive income from unconsolidated investment and other

              845   845 

Balance at March 31, 2024

  12,960  $474,095  $7,721  $4,804  $(2,277) $484,343 

Net income (2)

     45,142   922         46,064 

Redemption of preferred units

     (13,393)  (273)        (13,666)

Distributions to common unitholders and the general partner

     (9,787)  (200)        (9,987)

Distributions to preferred unitholders

     (2,590)  (53)        (2,643)

Unit-based awards amortization and vesting

     2,502            2,502 

Capital contribution

        555         555 

Warrant settlements

  89   (5,092)  (104)  (4,804)     (10,000)

Comprehensive income from unconsolidated investment and other

              1,239   1,239 

Balance at June 30, 2024

  13,049  $490,877  $8,568  $  $(1,038) $498,407 

Net income (3)

     37,824   771         38,595 

Redemption of preferred units

     (10,602)  (217)        (10,819)

Distributions to common unitholders and the general partner

     (9,787)  (199)        (9,986)

Distributions to preferred unitholders

     (1,573)  (32)        (1,605)

Unit-based awards amortization and vesting

     2,519            2,519 

Comprehensive income from unconsolidated investment and other

              82   82 

Balance at September 30, 2024

  13,049  $509,258  $8,891  $  $(956) $517,193 
         
(1)

Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner.

(2) Net income includes $1.44 million of income attributable to preferred unitholders that accumulated during the period, of which $1.41 million is allocated to the common unitholders and $0.03 million is allocated to the general partner.
(3) Net income includes $0.66 million of income attributable to preferred unitholders that accumulated during the period, of which $0.64 million is allocated to the common unitholders and $0.01 million is allocated to the general partner. 

 

 

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF PARTNERS CAPITAL

(Unaudited)

 

                                   

Accumulated

         
                                   

Other

   

Total

 
   

Common Unitholders

   

General

   

Warrant

   

Comprehensive

   

Partners'

 

(In thousands)

 

Units

   

Amounts

   

Partner

   

Holders

   

Income (Loss)

   

Capital

 

Balance at December 31, 2022

    12,506     $ 404,799     $ 5,977     $ 47,964     $ 18,717     $ 477,457  

Net income (1)

          77,690       1,585                   79,275  

Redemption of preferred units

          (15,904 )     (324 )                 (16,228 )

Distributions to common unitholders and the general partner

          (40,082 )     (818 )                 (40,900 )

Distributions to preferred unitholders

          (7,924 )     (162 )                 (8,086 )

Issuance of unit-based awards

    129                                

Unit-based awards amortization and vesting, net

          (1,178 )                       (1,178 )

Capital contribution

                142                   142  

Comprehensive loss from unconsolidated investment and other

                            (19,583 )     (19,583 )

Balance at March 31, 2023

    12,635     $ 417,401     $ 6,400     $ 47,964     $ (866 )   $ 470,899  

Net income (2)

          68,927       1,407                   70,334  

Redemption of preferred units

          (27,065 )     (553 )                 (27,618 )

Distributions to common unitholders and the general partner

          (9,476 )     (193 )                 (9,669 )

Distributions to preferred unitholders

          (7,248 )     (148 )                 (7,396 )

Unit-based awards amortization and vesting

          2,299                         2,299  

Comprehensive income from unconsolidated investment and other

                            911       911  

Balance at June 30, 2023

    12,635     $ 444,838     $ 6,913     $ 47,964     $ 45     $ 499,760  

Net income (3)

          62,569       1,277                   63,846  

Redemption of preferred units

          (16,741 )     (342 )                 (17,083 )

Distributions to common unitholders and the general partner

          (9,475 )     (194 )                 (9,669 )

Distributions to preferred unitholders

          (4,349 )     (88 )                 (4,437 )

Unit-based awards amortization and vesting

          2,318                         2,318  

Warrant settlement

          (18,117 )     (370 )     (15,121 )           (33,608 )

Comprehensive income from unconsolidated investment and other

                            2,200       2,200  

Balance at September 30, 2023

    12,635     $ 461,043     $ 7,196     $ 32,843     $ 2,245     $ 503,327  
         

(1)

Net income includes $6.66 million of income attributable to preferred unitholders that accumulated during the period, of which $6.53 million is allocated to the common unitholders and $0.13 million is allocated to the general partner.

(2) Net income includes $4.97 million of income attributable to preferred unitholders that accumulated during the period, of which $4.87 million is allocated to the common unitholders and $0.10 million is allocated to the general partner.
(3) Net income includes $2.94 million of income attributable to preferred unitholders that accumulated during the period, of which $2.88 million is allocated to the common unitholders and $0.06 million is allocated to the general partner. 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

NATURAL RESOURCE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

 

Cash flows from operating activities

               

Net income

  $ 140,872     $ 213,455  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation, depletion and amortization

    12,708       12,469  

Distributions from unconsolidated investment

    28,114       66,140  

Equity earnings from unconsolidated investment

    (17,204 )     (58,633 )

Gain on asset sales and disposals

    (4,809 )     (955 )

Asset impairments

    87       132  

Bad debt expense

    538       813  

Unit-based compensation expense

    8,878       7,903  

Amortization of debt issuance costs and other

    (2,603 )     1,043  

Change in operating assets and liabilities:

               

Accounts receivable

    5,711       4,090  

Accounts payable

    98       (850 )

Accrued liabilities

    (5,917 )     (6,288 )

Accrued interest

    192       235  

Deferred revenue

    16,781       (4,963 )

Other items, net

    (1,173 )     (1,399 )

Net cash provided by operating activities

  $ 182,273     $ 233,192  
                 

Cash flows from investing activities

               

Proceeds from asset sales and disposals

  $ 4,809     $ 961  

Return of long-term contract receivable

    1,979       1,830  

Capital expenditures

          (10 )

Net cash provided by investing activities

  $ 6,788     $ 2,781  
                 

Cash flows from financing activities

               

Debt borrowings

  $ 152,850     $ 215,034  

Debt repayments

    (110,696 )     (176,061 )

Distributions to common unitholders and the general partner

    (62,159 )     (60,238 )

Distributions to preferred unitholders

    (6,398 )     (19,919 )

Redemption of preferred units

    (71,666 )     (178,334 )

Warrant settlements (see Note 3)

    (65,689 )     (33,608 )

Other items, net

    (6,392 )     (3,527 )

Net cash used in financing activities

  $ (170,150 )   $ (256,653 )
                 

Net increase (decrease) in cash and cash equivalents

  $ 18,911     $ (20,680 )

Cash and cash equivalents at beginning of period

    11,989       39,091  

Cash and cash equivalents at end of period

  $ 30,900     $ 18,411  
                 

Supplemental cash flow information:

               

Cash paid for interest

  $ 11,466     $ 9,484  

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

NATURAL RESOURCE PARTNERS L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.    Basis of Presentation

 

Nature of Business

 

Natural Resource Partners L.P. (the "Partnership") engages principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and owns a non-controlling 49% interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The Partnership is organized into two operating segments further described in Note 6. Segment Information. The Partnership’s operations are conducted through, and its operating assets are owned by, its subsidiaries. The Partnership owns its subsidiaries through one wholly owned operating company, NRP (Operating) LLC ("Opco"). As used in these Notes to Consolidated Financial Statements, the terms "NRP," "we," "us" and "our" refer to Natural Resource Partners L.P. and its subsidiaries, unless otherwise stated or indicated by context.

 

Principles of Consolidation and Reporting

 

The accompanying unaudited Consolidated Financial Statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2023 and notes thereto included in the Partnership's Annual Report on Form 10-K, which was filed with the SEC on March 7, 2024. Reclassifications have been made to prior year amounts in the Consolidated Financial Statements to conform with current year presentation. These reclassifications had no impact on previously reported total assets, total liabilities, partners' capital, net income, or cash flows from operating, investing or financing activities.

 

Recently Issued Accounting Standard

 

In  November 2023, the FASB issued ASU No. 2023-07—Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses. The guidance is effective for annual periods beginning after  December 15, 2023 and quarterly periods beginning after December 15, 2024 and will be adopted retrospectively to all prior periods presented in the financial statements. NRP does not expect the adoption of ASU 2023-07 to have a material effect on its Consolidated Financial Statements.

 

6

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

2.    Revenues from Contracts with Customers

 

The following table presents the Partnership's Mineral Rights segment revenues from contracts with customers by major source:

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Coal royalty revenues

  $ 37,605     $ 55,544     $ 124,108     $ 161,527  

Production lease minimum revenues

    437       850       1,773       2,025  

Minimum lease straight-line revenues

    4,117       4,464       12,414       13,414  

Carbon neutral initiative revenues

    (39 )     681       4,322       2,914  

Property tax revenues

    1,809       1,770       5,246       4,710  

Wheelage revenues

    2,072       2,385       7,082       9,538  

Coal overriding royalty revenues

    227       827       2,064       1,165  

Lease amendment revenues

    1,071       623       2,485       2,322  

Aggregates royalty revenues

    662       736       2,164       2,175  

Oil and gas royalty revenues

    1,317       324       6,956       5,126  

Other revenues

    1,127       329       1,956       895  

Royalty and other mineral rights revenues

  $ 50,405     $ 68,533     $ 170,570     $ 205,811  

Transportation and processing services revenues

    1,248       3,964       6,169       9,538  

Total Mineral Rights segment revenues from contracts with customers

  $ 51,653     $ 72,497     $ 176,739     $ 215,349  

 

The following table details the Partnership's Mineral Rights segment receivables and liabilities resulting from contracts with customers:

 

   

September 30,

   

December 31,

 

(In thousands)

 

2024

   

2023

 

Contract Assets

               

Accounts receivable, net

  $ 32,878     $ 37,206  

Other current assets, net (1)

    1,047       429  

Other long-term assets, net (2)

    1,725        
                 

Contract liabilities

               

Accounts payable (3)

  $ 114     $  

Current portion of deferred revenue

    5,823       4,599  

Deferred revenue

    53,912       38,356  
         
(1)

Other current assets, net includes short-term notes receivables from contracts with customers.

(2) Other long-term assets, net includes amounts prepaid by NRP related to override agreements from contracts with customers as well as long-term lease amendment fee receivables from contracts with customers.
(3) Accounts payable include override payments owed by NRP from contracts with customers.

 

The following table shows the activity related to the Partnership's Mineral Rights segment deferred revenue resulting from contracts with customers: 

 

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

 

Balance at beginning of period (current and non-current)

  $ 42,955     $ 46,437  

Increase due to minimums and lease amendment fees

    28,319       11,525  

Recognition of previously deferred revenue

    (11,539 )     (16,487 )

Balance at end of period (current and non-current)

  $ 59,735     $ 41,475  

 

The Partnership's non-cancelable annual minimum payments due under the lease terms of its coal and aggregates royalty contracts with customers are as follows as of  September 30, 2024 (in thousands): 

 

Lease Term (1)

 

Weighted Average Remaining Years

   

Annual Minimum Payments

 

0 - 5 years

    1.9     $ 14,949  

5 - 10 years

    5.5       18,222  

10+ years

    11.3       25,779  

Total

    7.1     $ 58,950  
         
(1)

Lease term does not include renewal periods.

 

7

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

3.      Class A Convertible Preferred Units and Warrants

 

On March 2, 2017, NRP issued $250 million of Class A Convertible Preferred Units representing limited partner interests in NRP (the "preferred units") to certain entities controlled by funds affiliated with The Blackstone Group Inc. (collectively referred to as "Blackstone") and certain affiliates of GoldenTree Asset Management LP (collectively referred to as "GoldenTree") (together the "preferred purchasers") pursuant to a Preferred Unit and Warrant Purchase Agreement. NRP issued 250,000 preferred units to the preferred purchasers at a price of $1,000 per preferred unit (the "per unit purchase price"), less a 2.5% structuring and origination fee. The preferred units entitle the preferred purchasers to receive cumulative distributions at a rate of 12% of the purchase price per year, up to one half of which NRP may pay in additional preferred units (such additional preferred units, the "PIK units"). The preferred units have a perpetual term, unless converted or redeemed as described below. However, in 2024 all remaining preferred units were redeemed and none of the Partnership's preferred units remain outstanding.

 

NRP also issued two tranches of warrants (the "warrants") to purchase common units to the preferred purchasers (warrants to purchase 1.75 million common units with a strike price of $22.81 and warrants to purchase 2.25 million common units with a strike price of $34.00). The warrants may be exercised by the holders thereof at any time before the eighth anniversary of the closing date. Upon exercise of the warrants, NRP may, at its option, elect to settle the warrants in common units or cash, each on a net basis. However, in 2024 all remaining warrants were settled and none of the Partnership's warrants remain outstanding.

 

Accounting for the Preferred Units and Warrants

 

Classification

 

The preferred units are accounted for as temporary equity on NRP's Consolidated Balance Sheets due to certain contingent redemption rights that may be exercised at the election of preferred purchasers. The warrants are accounted for as equity on NRP's Consolidated Balance Sheets.

 

Initial Measurement

 

The net transaction price was allocated to the preferred units and warrants based on their relative fair values at inception date. NRP allocated the transaction issuance costs to the preferred units and warrants primarily on a pro-rata basis based on their relative inception date allocated values.

 

Subsequent Measurement

 

Preferred Units

 

During the three months ended September 30, 2024, the Partnership redeemed the remaining 31,666 preferred units for $31.7 million in cash. During the nine months ended September 30, 2024, the Partnership redeemed a total of 71,666 preferred units for $71.7 million in cash. During the nine months ended September 30, 2023, the Partnership redeemed a total of 178,334 preferred units for $178.3 million in cash. Of the originally issued 250,000 preferred units, no preferred units remain outstanding as of September 30, 2024 and 71,666 preferred units remained outstanding as of December 31, 2023. The preferred units had a $47.2 million carrying value included in class A convertible preferred units on the Partnership's Consolidated Balance Sheets at  December 31, 2023.

 

Warrants

 

During the nine months ended September 30, 2024, the Partnership settled a total of 1,540,000 warrants to purchase common units with a strike price of $34.00. On  January 29, 2024 (the  "January 2024 exercise date"), holders of the Partnership's warrants exercised 462,165 warrants at a strike price of $34.00. The Partnership settled the warrants on a net basis with $10.0 million in cash and 198,767 common units. The 15-day VWAP ending on the business day prior to the  January 2024 exercise date was $97.62. On  February 7, 2024 (the  "February 7, 2024 exercise date"), holders of the Partnership's warrants exercised 128,750 warrants at a strike price of $34.00. The Partnership settled the warrants on a net basis with $8.0 million in cash. The 15-day VWAP ending on the business day prior to the  February 7, 2024 exercise date was $96.29. On  February 8, 2024 (the  "February 8, 2024 exercise date"), holders of the Partnership's warrants exercised 128,750 warrants at a strike price of $34.00. The 15-day VWAP ending on the business day prior to the  February 8, 2024 exercise date was $95.63. The Partnership settled these warrants on a net basis with $7.9 million in cash. On  February 14, 2024 (the  "February 14, 2024 exercise date"), holders of the Partnership's warrants exercised 500,000 warrants at a strike price of $34.00. The 15-day VWAP ending on the business day prior to the  February 14, 2024 exercise date was $93.47. The Partnership settled these warrants on a net basis with $29.7 million in cash. In April 2024 (the "April 2024 exercise date"), holders of the Partnership's warrants exercised 320,335 warrants at a strike price of $34.00. The Partnership settled the warrants on a net basis with $10.0 million in cash and 89,059 common units. The 15-day VWAP ending on the business day prior to the April 2024 exercise date was $90.33.

 

On September 18, 2023, the Partnership negotiated a transaction with holders of the Partnership's warrants pursuant to which the Partnership repurchased and retired an aggregate of 752,500 warrants with an exercise price of $22.81 and 60,000 warrants with an exercise price of $34.00 for approximately $33.6 million in cash.

 

Of the originally issued 4,000,000 warrants, no warrants remain outstanding as of September 30, 2024 and 1,540,000 warrants to purchase common units with a strike price of $34.00 were outstanding as of  December 31, 2023. These warrants had a carrying value of $23.1 million included in warrant holders' interest within partners' capital on the Partnership's Consolidated Balance Sheets at December 31, 2023

 

Embedded Features

 

Certain embedded features within the preferred unit and warrant purchase agreement were accounted for at fair value and were remeasured each quarter. See Note 10. Fair Value Measurements for further information regarding valuation of these embedded derivatives.

 

8

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

4.    Common and Preferred Unit Distributions

 

The Partnership makes cash distributions to common and preferred unitholders on a quarterly basis, subject to approval by the Board of Directors of GP Natural Resource Partners LLC (the "Board of Directors"). NRP recognizes both common unit and preferred unit distributions on the date the distribution is declared.

 

Distributions made on the common units and the general partner's general partner ("GP") interest are made on a pro-rata basis in accordance with their relative percentage interests in the Partnership. The general partner is entitled to receive 2% of such distributions.

 

Income available to common unitholders and the general partner is reduced by preferred unit distributions that accumulated during the period. NRP reduced net income available to common unitholders and the general partner by $0.7 million and $2.9 million during the three months ended September 30, 2024 and 2023, respectively, and $4.2 million and $14.6 million during the nine months ended September 30, 2024 and 2023, respectively, as a result of accumulated preferred unit distributions earned during the period. Income available to common unitholders and the general partner is also reduced by the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units. As such, NRP reduced net income available to common unitholders and the general partner by $10.8 million and $24.5 million during the three and nine months ended September 30, 2024, and $17.1 million and $60.9 million during the three and nine months ended September 30, 2023, respectively.

 

The following table shows the cash distributions declared and paid to common and preferred unitholders during the nine months ended September 30, 2024 and 2023, respectively:

 

                                     
       

Common Units

   

Preferred Units

 

Month Paid

 

Period Covered by Distribution

  Distribution per Unit     Total Distribution (1) (In thousands)     Distribution per Unit     Total Distribution (In thousands)  

2024

                                   

February

 

October 1 - December 31, 2023

  $ 0.75     $ 9,918     $ 30.00     $ 2,150  

March (2)

 

Special Distribution

    2.44       32,268              

May

 

January 1 - March 31, 2024

    0.75       9,987       30.00       2,150  

May (3)

 

April 1 - May 8, 2024

                12.33       493  

August

 

April 1 - June 30, 2024

    0.75       9,986       30.00       950  

September (4)

 

July 1 - September 3, 2024

                20.68       655  
                                     

2023

                                   

February

 

October 1 - December 31, 2022

  $ 0.75     $ 9,571     $ 30.00     $ 7,500  

February (5)

 

January 1 - February 8, 2023

                12.33       586  

March (6)

 

Special Distribution

    2.43       31,329              

May

 

January 1 - March 31, 2023

    0.75       9,669       30.00       6,075  

May (7)

 

April 1 - May 5, 2023

                11.33       406  

June (8)

 

April 1 - June 2, 2023

                20.33       915  

August

 

April 1 - June 30, 2023

    0.75       9,669       30.00       3,650  

August (9)

 

July 1 - August 8, 2023

                12.33       432  

September (10)

 

July 1 - September 12, 2023

                23.67       355  
         
(1)

Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest.

(2) Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2023.
(3) Relates to accrued distribution paid upon the redemption of 40,000 preferred units in May 2024.
(4) Related to accrued distribution paid upon the redemption of 31,666 preferred units in September 2024. 
(5) Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023.
(6) Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.
(7) Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023.
(8) Relates to accrued distribution paid upon redemption of 45,000 preferred units in June 2023. 
(9) Related to accrued distribution paid upon redemption of 35,000 preferred units in August 2023.
(10) Related to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023. 

 

9

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

5.    Net Income Per Common Unit 

 

Basic net income per common unit is computed by dividing net income, after considering income attributable to preferred unitholders, the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units, and the general partner’s general partner interest, by the weighted average number of common units outstanding. Diluted net income per common unit includes the effect of NRP's preferred units, warrants, and unvested unit-based awards if the inclusion of these items is dilutive.

 

The dilutive effect of the preferred units is calculated using the if-converted method. Under the if-converted method, the preferred units are assumed to be converted at the beginning of the period, and the resulting common units are included in the denominator of the diluted net income per unit calculation for the period being presented. Distributions declared in the period and undeclared distributions on the preferred units that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. The calculation of diluted net income per common unit for the nine months ended September 30, 2024 and the three and nine months ended September 30, 2023 includes the assumed conversion of the remaining preferred units during the period. The calculation of diluted net income per common unit for the three months ended September 30, 2024 does not include the assumed conversion of any remaining preferred units as all preferred units were redeemed as of September 30, 2024. The calculation of diluted net income per common units for the three and nine months ended September 30, 2024 and 2023 does not include the assumed conversion of the preferred units that were redeemed during the periods as the inclusion of these units would be anti-dilutive.

 

The dilutive effect of the warrants is calculated using the treasury stock method, which assumes that the proceeds from the exercise of these instruments are used to purchase common units at the average market price for the period. The calculation of diluted net income per common unit for the nine months ended September 30, 2024 includes the net settlement of the warrants for the period during which they were outstanding. The dilutive effect of the warrants was not factored into the calculation of diluted net income per common unit for the three months ended September 30, 2024 as these were fully settled as of June 30, 2024. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2023 includes the net settlement of the warrants for the period during which they were outstanding.

 

The following table reconciles the numerator and denominator of the basic and diluted net income per common unit computations and calculates basic and diluted net income per common unit: 

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands, except per unit data)

 

2024

   

2023

   

2024

   

2023

 

Basic net income per common unit

                               

Net income attributable to common unitholders

  $ 26,578     $ 42,951     $ 109,896     $ 135,199  

Weighted average common units—basic

    13,049       12,635       12,971       12,613  

Basic net income per common unit

  $ 2.04     $ 3.40     $ 8.47     $ 10.72  
                                 

Diluted net income per common unit

                               

Weighted average common units—basic

    13,049       12,635       12,971       12,613  

Plus: dilutive effect of preferred units

          1,104       375       2,434  

Plus: dilutive effect of warrants

          1,492       186       1,296  

Plus: dilutive effect of unvested unit-based awards

    222       240       229       190  

Weighted average common units—diluted

    13,271       15,471       13,761       16,533  
                                 

Net income

  $ 38,595     $ 63,846     $ 140,872     $ 213,455  

Less: income attributable to preferred unitholders

    (655 )     (786 )     (1,148 )     (2,693 )

Less: redemption of preferred units

    (10,819 )     (17,083 )     (24,485 )     (60,929 )

Diluted net income attributable to common unitholders and the general partner

  $ 27,121     $ 45,977     $ 115,239     $ 149,833  

Less: diluted net income attributable to the general partner

    (543 )     (920 )     (2,305 )     (2,997 )

Diluted net income attributable to common unitholders

  $ 26,578     $ 45,057     $ 112,934     $ 146,836  
                                 

Diluted net income per common unit

  $ 2.00     $ 2.91     $ 8.21     $ 8.88  

 

10

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

6.    Segment Information

 

The Partnership's segments are strategic business units that offer distinct products and services to different customers in different geographies within the U.S. and that are managed accordingly. NRP has the following two operating segments:

 

Mineral Rights—consists of mineral interests and other subsurface rights across the United States. NRP's ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. The Partnership is working to strategically redefine its business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of the Partnership's 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin of Wyoming. Sisecam Wyoming mines trona and processes it into soda ash that is sold both domestically and internationally to the glass and chemicals industries.

 

Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's segments are allocated to the operating segments accordingly. These allocated costs generally include salaries and benefits, insurance, property taxes, legal, royalty, information technology and shared facilities services and are included in operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

The following table summarizes certain financial information for each of the Partnership's business segments:

 

   

Operating Segments

                 

(In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

For the Three Months Ended September 30, 2024

                               

Revenues

  $ 52,217     $     $     $ 52,217  

Equity in earnings of Sisecam Wyoming

          8,109             8,109  

Gain on asset sales and disposals

    1                   1  

Operating and maintenance expenses

    6,762       24             6,786  

Depreciation, depletion and amortization

    4,725             5       4,730  

General and administrative expenses

                5,935       5,935  

Asset impairments

    87                   87  

Interest expense, net

                4,194       4,194  

Net income (loss)

    40,644       8,085       (10,134 )     38,595  
                                 

For the Three Months Ended September 30, 2023

                               

Revenues

  $ 73,112     $     $     $ 73,112  

Equity in earnings of Sisecam Wyoming

          12,401             12,401  

Gain on asset sales and disposals

    854                   854  

Operating and maintenance expenses

    8,305       53             8,358  

Depreciation, depletion and amortization

    4,589             5       4,594  

General and administrative expenses

                5,669       5,669  

Asset impairments

    63                   63  

Interest expense, net

                3,837       3,837  

Net income (loss)

    61,009       12,348       (9,511 )     63,846  
                                 

For the Nine Months Ended September 30, 2024

                               

Revenues

  $ 180,268     $     $     $ 180,268  

Equity in earnings of Sisecam Wyoming

          17,204             17,204  

Gain on asset sales and disposals

    4,809                   4,809  

Operating and maintenance expenses

    18,279       112             18,391  

Depreciation, depletion and amortization

    12,694             14       12,708  

General and administrative expenses

                18,193       18,193  

Asset impairments

    87                   87  

Interest expense, net

                12,030       12,030  

Net income (loss)

    154,017       17,092       (30,237 )     140,872  
                                 

For the Nine Months Ended September 30, 2023

                               

Revenues

  $ 217,258     $     $     $ 217,258  

Equity in earnings of Sisecam Wyoming

          58,633             58,633  

Gain on asset sales and disposals

    955                   955  

Operating and maintenance expenses

    23,226       225             23,451  

Depreciation, depletion and amortization

    12,455             14       12,469  

General and administrative expenses

                17,157       17,157  

Asset impairments

    132                   132  

Interest expense, net

                10,182       10,182  

Net income (loss)

    182,400       58,408       (27,353 )     213,455  

 

11

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

7.    Equity Investment 

 

The Partnership accounts for its 49% investment in Sisecam Wyoming using the equity method of accounting. Activity related to this investment is as follows: 

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Balance at beginning of period

  $ 265,935     $ 290,900     $ 276,549     $ 306,470  

Income allocation to NRP’s equity interests (1)

    9,315       13,608       20,718       62,184  

Amortization of basis difference

    (1,206 )     (1,207 )     (3,513 )     (3,551 )

Other comprehensive income (loss)

    82       2,200       2,166       (16,472 )

Distributions

    (6,320 )     (23,010 )     (28,114 )     (66,140 )

Balance at end of period

  $ 267,806     $ 282,491     $ 267,806     $ 282,491  
         
(1) Amounts reclassified into income out of accumulated other comprehensive loss were $1.5 million and $0.9 million for the three months ended September 30, 2024 and 2023, respectively and $4.5 million and $(17.4) million for the nine months ended September 30, 2024 and 2023, respectively. 

 

The following table represents summarized financial information for Sisecam Wyoming as derived from their respective unaudited financial statements for the three and nine months ended September 30, 2024 and 2023:

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Net sales

  $ 160,975     $ 180,232     $ 438,385     $ 588,725  

Gross profit

    25,976       34,454       64,584       148,063  

Net income

    19,009       27,772       42,281       126,906  

 

 

8.    Mineral Rights, Net

 

The Partnership’s mineral rights consist of the following:

 

   

September 30, 2024

   

December 31, 2023

 

(In thousands)

 

Carrying Value

   

Accumulated Depletion

   

Net Book Value

   

Carrying Value

   

Accumulated Depletion

   

Net Book Value

 

Coal properties

  $ 660,961     $ (296,781 )   $ 364,180     $ 661,256     $ (285,470 )   $ 375,786  

Aggregates properties

    8,655       (4,003 )     4,652       8,655       (3,761 )     4,894  

Oil and gas royalty properties

    12,354       (10,443 )     1,911       12,354       (10,082 )     2,272  

Other

    13,143       (1,612 )     11,531       13,143       (1,612 )     11,531  

Total mineral rights, net

  $ 695,113     $ (312,839 )   $ 382,274     $ 695,408     $ (300,925 )   $ 394,483  

 

Depletion expense related to the Partnership’s mineral rights is included in depreciation, depletion and amortization on its Consolidated Statements of Comprehensive Income and totaled $4.7 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively and $12.1 million and $11.6 million for the nine months ended September 30, 2024 and 2023, respectively.

 

During the nine months ended September 30, 2024, the Partnership recorded a gain $4.8 million, included in gain on asset sales and disposals on the Consolidated Statements of Comprehensive Income primarily related to a coal property condemnation in the second quarter of 2024. During the three and nine months ended September 30, 2023, the Partnership had $0.9 million and $1.0 million, respectively, included in gains on asset sales and disposals on the Consolidated Statements of Comprehensive Income.

 

The Partnership has developed procedures to evaluate its long-lived assets for possible impairment periodically or whenever events or changes in circumstances indicate an asset's net book value may not be recoverable. Potential events or circumstances include, but are not limited to, specific events such as a reduction in economically recoverable reserves or production ceasing on a property for an extended period. This analysis is based on historic, current and future performance and considers both quantitative and qualitative information. As a result of the Partnership's analyses, NRP recorded immaterial impairment expense during the three and nine months ended September 30, 2024 and 2023. 

 

12

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

9.    Debt, Net 

 

The Partnership's debt consists of the following:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2024

  

2023

 

Opco Credit Facility

 $154,684  $95,834 

Opco Senior Notes

        

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

 $  $12,685 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

     4,012 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  34,262   34,262 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  8,732   8,732 

Total Opco Senior Notes

 $42,994  $59,691 

Total debt at face value

 $197,678  $155,525 

Net unamortized debt issuance costs

  (315)  (467)

Total debt, net

 $197,363  $155,058 

Less: current portion of long-term debt

  (14,226)  (30,785)

Total long-term debt, net

 $183,137  $124,273 

 

Opco Debt

 

All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries, other than BRP LLC and NRP Trona LLC. As of September 30, 2024 and December 31, 2023, Opco was in compliance with the terms of the financial covenants contained in its debt agreements.

 

Opco Credit Facility

 

In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $130.0 million to $155.0 million, with the ability to expand such commitments to $200.0 million with the addition of future commitments. In  February 2024, the Partnership exercised its option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $30.0 million from $155.0 million to $185.0 million and subsequently by $15.0 million from $185.0 million to $200.0 million. These increases in the total aggregate commitment were made pursuant to an accordion feature of the Opco Credit Facility. In connection with the initial increase, a new lender joined the lending group with a commitment of $30.0 million. The Sixth Amendment also included modifications to Opco’s ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain:

 

A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x As of September 30, 2024, this ratio was 0.8x; and

 

an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0. As of September 30, 2024, this ratio was 14.2x.

 

As of December 31, 2023, the Partnership had $95.8 million in borrowings outstanding under the Opco Credit Facility and $59.2 million of available borrowing capacity. During the nine months ended September 30, 2024, the Partnership borrowed $152.9 million and repaid $94.0 million, resulting in $154.7 million in borrowings outstanding under the Opco Credit Facility and $45.3 million of available borrowing capacity as of September 30, 2024. During the nine months ended September 30, 2023, the Partnership borrowed $215.0 million and repaid $157.0 million on the Opco Credit Facility. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2024 was 8.91% and 8.92%, respectively. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2023 was 8.85% and 8.61%, respectively.  

 

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $305.3 million and $316.3 million classified as mineral rights, net and other long-term assets, net and $24.2 million and $26.3 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, respectively.

 

Opco Senior Notes   

 

Opco issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of September 30, 2024, only the 5.03% and 5.18% Opco Senior Notes, both due December 2026, remain outstanding. These Opco Senior Notes have principal due annually in December and interest due semi-annually in June and December. As of September 30, 2024 and December 31, 2023, the Opco Senior Notes had cumulative principal balances of $43.0 million and $59.7 million, respectively. Opco made mandatory principal payments of $16.7 and $19.1 million during the nine months ended September 30, 2024 and 2023, respectively. 

 

13

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

10.    Fair Value Measurements 

 

Fair Value of Financial Assets and Liabilities

 

The Partnership’s financial assets and liabilities consist of cash and cash equivalents, a contract receivable and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to their short-term nature. The Partnership uses available market data and valuation methodologies to estimate the fair value of its debt and contract receivable.

 

The following table shows the carrying value and estimated fair value of the Partnership's debt and contract receivable:

 

      

September 30, 2024

  

December 31, 2023

 
  

Fair Value

  

Carrying

  

Estimated

  

Carrying

  

Estimated

 

(In thousands)

 

Hierarchy Level

  

Value

  

Fair Value

  

Value

  

Fair Value

 

Debt:

                    

Opco Senior Notes (1)

  3  $42,679  $40,992  $59,224  $56,533 

Opco Credit Facility (2)

  3   154,684   154,684   95,834   95,384 
                     

Assets:

                    

Contract receivable, net (current and long-term) (3)

  3  $26,997  $23,223  $28,946  $24,492 
     
(1)The fair value of the Opco Senior Notes was estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit Facility. 
(2)The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty.
(3)The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at September 30, 2024 and December 31, 2023.

 

NRP had embedded derivatives in the preferred units related to certain conversion options, redemption features and the change of control provision that were accounted for separately from the preferred units as assets and liabilities at fair value on the Partnership's Consolidated Balance Sheets. Level 3 valuation of the embedded derivatives were based on numerous factors including the likelihood of the event occurring. The embedded derivatives were revalued quarterly and changes in their fair value would be recorded in other expenses, net on the Partnership's Consolidated Statements of Comprehensive Income. The embedded derivatives had zero value as of   December 31, 2023. As a result of the redemption of all of the Partnership's remaining preferred units in September 2024, NRP no longer has embedded derivatives associated with preferred units as of September 30, 2024. 

 

 

11.    Related Party Transactions

 

Affiliates of our General Partner

 

The Partnership’s general partner does not receive any management fee or other compensation for its management of NRP. However, in accordance with the partnership agreement, the general partner and its affiliates are reimbursed for services provided to the Partnership and for expenses incurred on the Partnership’s behalf. Employees of Quintana Minerals Corporation ("QMC") and Western Pocahontas Properties Limited Partnership ("WPPLP"), affiliates of the Partnership, provide their services to manage the Partnership's business. QMC and WPPLP charge the Partnership the portion of their employee salary and benefits costs related to their employee services provided to NRP. These QMC and WPPLP employee management service costs are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. NRP also reimburses overhead costs incurred by its affiliates, and other related parties, to manage the Partnership's business. These overhead costs include certain rent, information technology, administration of employee benefits and other corporate services incurred by or on behalf of the Partnership’s general partner and its affiliates and are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Related party general and administrative expenses included on the Partnership's Consolidated Statement of Comprehensive Income are as follows:

 

  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

  

2023

  

2024

  

2023

 

Operating and maintenance expenses

 $2,014  $1,663  $5,483  $5,094 

General and administrative expenses

  1,296   1,287   4,117   3,860 

 

The Partnership had accounts payable to related parties of $0.6 million on its Consolidated Balance Sheets at both  September 30, 2024 and December 31, 2023. The Partnership had other current assets of $0.1 million on its Consolidated Balance Sheets related to a related party prepaid expense at both  September 30, 2024 and  December 31, 2023.

 

As a result of its office lease with WPPLP, the Partnership has a right-of-use asset and lease liability of $3.4 million and $3.5 million included in other long-term assets, net and other non-current liabilities, respectively on its Consolidated Balance Sheets at September 30, 2024 and December 31, 2023, respectively.

 

During the three months ended September 30, 2024 and 2023, the Partnership recognized $0.01 million and $1.1 million, respectively, in operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to an overriding royalty agreement with WPPLP. These amounts were $0.05 million and $5.1 million during the nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024 and December 31, 2023 the Partnership had $0.5 million and $0.0 million, respectively, of other long-term assets, net on its Consolidated Balance Sheets related to a prepaid royalty for this agreement.

 

14

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

12.    Major Customers 

 

Revenues from customers that exceeded 10 percent of total revenues for any of the periods presented below are as follows:

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 
   

2024

   

2023

   

2024

   

2023

 

(In thousands)

 

Revenues

   

Percent

   

Revenues

   

Percent

   

Revenues

   

Percent

   

Revenues

   

Percent

 

Alpha Metallurgical Resources, Inc. (1)

  $ 14,556       28 %   $ 17,219       20 %   $ 53,345       30 %   $ 61,122       22 %

Foresight Energy Resources LLC ("Foresight") (1)

  $ 7,421       14 %   $ 18,600       22 %   $ 30,003       17 %   $ 43,453       16 %

Alabama Kanu Holdings, LLC (1) (2)

  $ 7,143       14 %   $ 8,892       10 %   $ 21,344       12 %   $ 24,962       9 %
         

(1)

Revenues from Alpha Metallurgical Resources, Inc., Foresight and Alabama Kanu Holdings, LLC are included within the Partnership's Mineral Rights segment.

(2) Alabama Kanu Holdings, LLC purchased Hatfield Metallurgical Holdings, LLC in August 2024.

 

 

13.    Commitments and Contingencies

 

NRP is involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, Partnership management believes these ordinary course matters will not have a material effect on the Partnership’s financial position, liquidity or operations.

 

 

14.    Unit-Based Compensation

 

During the nine months ended September 30, 2024 and 2023, the Partnership granted service, performance and market-based awards under its 2017 Long-Term Incentive Plan. The Partnership's service and performance-based awards are valued using the closing price of NRP's common units as of the grant date while the Partnership's market-based awards are valued using a Monte Carlo simulation. The grant date fair value of the awards granted during nine months ended September 30, 2024 and 2023 was $6.7 million and $16.0 million, respectively, which included a grant date fair value of $2.5 and $2.8 million for the market-based awards valued using a Monte Carlo simulation during the nine months ended September 30, 2024 and 2023, respectively. Total unit-based compensation expense associated with these awards was $3.0 million and $2.7 million for the three months ended September 30, 2024 and 2023, respectively, and $8.9 million and $7.9 million for the nine months ended September 30, 2024 and 2023, respectfully, and is included in general and administrative expenses and operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income. The unamortized cost associated with unvested outstanding awards as of September 30, 2024 was $12.4 million, which will be recognized over a weighted average period of 1.6 years. The unamortized cost associated with unvested outstanding awards as of  December 31, 2023 was $13.3 million.

 

A summary of the unit activity in the outstanding grants during 2024 is as follows:

 

(In thousands)

 

Common Units

   

Weighted Average Grant Date Fair Value per Common Unit

 

Outstanding at January 1, 2024

    483     $ 46.21  

Granted

    65     $ 103.50  

Fully vested and issued

    (197 )   $ 38.76  

Forfeitures

    (1 )   $ 90.70  

Outstanding at September 30, 2024

    350     $ 60.81  

 

15

NATURAL RESOURCE PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED
(Unaudited)
 
 

15.    Financing Transaction

 

The Partnership owns rail loadout and associated infrastructure at the Sugar Camp mine in the Illinois Basin operated by a subsidiary of Foresight. The infrastructure at the Sugar Camp mine is leased to a subsidiary of Foresight and is accounted for as a financing transaction (the "Sugar Camp lease"). The Sugar Camp lease expires in 2032 with renewal options for up to 80 additional years. Minimum payments are $5.0 million per year through the end of the current lease term. The Partnership is also entitled to variable payments in the form of throughput fees based on the amount of coal transported and processed utilizing the Partnership's assets. In the event the Sugar Camp lease is renewed beyond 2032, payments become a fixed ten thousand dollars per year for the remainder of the renewed term.

 

 

16.    Credit Losses

 

The Partnership is exposed to credit losses through collection of its short-term trade receivables resulting from contracts with customers and a long-term receivable resulting from a financing transaction with a customer. The Partnership records an allowance for current expected credit losses on these receivables based on the loss-rate method. NRP assessed the likelihood of collection of its receivables utilizing historical loss rates, current market conditions, industry and macroeconomic factors, reasonable and supportable forecasts and facts or circumstances of individual customers and properties. Examples of these facts or circumstances include, but are not limited to, contract disputes or renegotiations with the customer and evaluation of short and long-term economic viability of the contracted property. For its long-term contract receivable, management reverts to the historical loss experience immediately after the reasonable and supportable forecast period ends.

 

As of September 30, 2024 and December 31, 2023, NRP had the following current expected credit loss (“CECL”) allowance related to its receivables and long-term contract receivable:

 

   

September 30, 2024

   

December 31, 2023

 

(In thousands)

 

Gross

   

CECL Allowance

   

Net

   

Gross

   

CECL Allowance

   

Net

 

Receivables

  $ 44,356     $ (5,583 )   $ 38,773     $ 47,170     $ (5,655 )   $ 41,515  

Long-term contract receivable

    25,081       (869 )     24,212       27,265       (944 )     26,321  

Total

  $ 69,437     $ (6,452 )   $ 62,985     $ 74,435     $ (6,599 )   $ 67,836  

 

NRP recorded $0.7 million and $1.6 million of operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to the change in the CECL allowance during the three months ended September 30, 2024 and 2023, respectively, and a reversal of $0.1 million and $0.8 million of operating and maintenance expenses during the nine months ended September 30, 2024 and 2023, respectively. The Partnership charged an additional $0.4 million and $0.7 million in bad debt expense towards the allowance for doubtful accounts during the three and nine months ended September 30, 2024, respectively. 

 

NRP has procedures in place to monitor its ongoing credit exposure through timely review of counterparty balances against contract terms and due dates, account and financing receivable reconciliation, bankruptcy monitoring, lessee audits and dispute resolution. The Partnership may employ legal counsel or collection specialists to pursue recovery of defaulted receivables.

 

 

17.    Subsequent Events

 

The following represents material events that have occurred subsequent to September 30, 2024 through the time of the Partnership’s filing of its Quarterly Report on Form 10-Q with the SEC:

 

Opco Credit Facility Amendment

 

In October 2024, NRP entered into the Seventh Amendment to the Opco Credit Facility which extended the maturity from August 2027 to October 2029. The Seventh Amendment also removed reference to the preferred units and warrants, which are no longer outstanding, and includes modifications to Opco's ability to declare and make certain restricted payments.

 

Common Unit and Preferred Unit Distributions

 

In November 2024, the Board of Directors declared a distribution of $0.75 per common unit with respect to the third quarter of 2024

 

 

 

16

 
 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following review of operations for the three and nine month periods ended September 30, 2024 and 2023 should be read in conjunction with our Consolidated Financial Statements and the Notes to Consolidated Financial Statements included in this Form 10-Q and with the Consolidated Financial Statements, Notes to Consolidated Financial Statements and Management’s Discussion and Analysis included in the Natural Resource Partners L.P. Annual Report on Form 10-K for the year ended December 31, 2023.

 

As used herein, unless the context otherwise requires: "we," "our," "us" and the "Partnership" refer to Natural Resource Partners L.P. and, where the context requires, our subsidiaries. References to "NRP" and "Natural Resource Partners" refer to Natural Resource Partners L.P. only, and not to NRP (Operating) LLC or any of Natural Resource Partners L.P.’s subsidiaries. References to "Opco" refer to NRP (Operating) LLC, a wholly owned subsidiary of NRP, and its subsidiaries.

 

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

 

Statements included in this 10-Q may constitute forward-looking statements. In addition, we and our representatives may from time to time make other oral or written statements which are also forward-looking statements. Such forward-looking statements include, among other things, statements regarding: future distributions on our common and preferred units; our business strategy; our liquidity and access to capital and financing sources; our financial strategy; prices of and demand for coal, trona and soda ash, and other natural resources; estimated revenues, expenses and results of operations; projected future performance by our lessees; Sisecam Wyoming LLC’s ("Sisecam Wyoming's") trona mining and soda ash refinery operations; distributions from our soda ash joint venture; the impact of governmental policies, laws and regulations, as well as regulatory and legal proceedings involving us, and of scheduled or potential regulatory or legal changes; and global and U.S. economic conditions.

 

These forward-looking statements speak only as of the date hereof and are made based upon our current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. You should not put undue reliance on any forward-looking statements. See "Item 1A. Risk Factors" included in this Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2023 for important factors that could cause our actual results of operations or our actual financial condition to differ.

 

NON-GAAP FINANCIAL MEASURES

 

Adjusted EBITDA

 

Adjusted EBITDA is a non-GAAP financial measure that we define as net income (loss) less equity earnings from unconsolidated investment; plus total distributions from unconsolidated investment, interest expense, net, debt modification expense, loss on extinguishment of debt, depreciation, depletion and amortization and asset impairments. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or loss, net income or loss attributable to partners, operating income or loss, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of operating performance, liquidity or ability to service debt obligations. There are significant limitations to using Adjusted EBITDA as a measure of performance, including the inability to analyze the effect of certain recurring items that materially affect our net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted EBITDA reported by different companies. In addition, Adjusted EBITDA presented below is not calculated or presented on the same basis as Consolidated EBITDA as defined in our partnership agreement or Consolidated EBITDDA as defined in Opco's debt agreements. For a description of Opco's debt agreements, see Note 9. Debt, Net in the Notes to Consolidated Financial Statements included herein as well as in "Item 8. Financial Statements and Supplementary Data—Note 11. Debt, Net" in our Annual Report on Form 10-K for the year ended December 31, 2023. Adjusted EBITDA is a supplemental performance measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess the financial performance of our assets without regard to financing methods, capital structure or historical cost basis.

 

Distributable Cash Flow

 

Distributable cash flow ("DCF") represents net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings, proceeds from asset sales and disposals, including sales of discontinued operations, and return of long-term contract receivable; less maintenance capital expenditures. DCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. DCF may not be calculated the same for us as for other companies. In addition, DCF presented below is not calculated or presented on the same basis as distributable cash flow as defined in our partnership agreement, which is used as a metric to determine whether we are able to increase quarterly distributions to our common unitholders. DCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

 

Free Cash Flow

 

Free cash flow ("FCF") represents net cash provided by (used in) operating activities plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receivable; less maintenance and expansion capital expenditures and cash flow used in acquisition costs classified as investing or financing activities. FCF is calculated before mandatory debt repayments. FCF is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities. FCF may not be calculated the same for us as for other companies. FCF is a supplemental liquidity measure used by our management and by external users of our financial statements, such as investors, commercial banks, research analysts and others to assess our ability to make cash distributions and repay debt.

 

Leverage Ratio

 

Leverage ratio represents the outstanding principal of our debt at the end of the period divided by the last twelve months' Adjusted EBITDA as defined above. We believe that leverage ratio is a useful measure to management and investors to evaluate and monitor our indebtedness relative to our ability to generate income to service such debt and in understanding trends in our overall financial condition. Leverage ratio may not be calculated the same for us as for other companies and is not a substitute for, and should not be used in conjunction with, GAAP financial ratios. 

 

 

Introduction

 

The following discussion and analysis presents management's view of our business, financial condition and overall performance. Our discussion and analysis consists of the following subjects:

•    Executive Overview

•    Results of Operations

•    Liquidity and Capital Resources

•    Off-Balance Sheet Transactions

•    Related Party Transactions

•    Summary of Critical Accounting Estimates

•    Recent Accounting Standards

 

Executive Overview

 

We are a diversified natural resource company engaged principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and own a non-controlling 49% interest in Sisecam Wyoming, a trona ore mining and soda ash production business. Our common units trade on the New York Stock Exchange under the symbol "NRP." Our business is organized into two operating segments:

 

Mineral Rights—consists of approximately 13 million acres of mineral interests and other subsurface rights across the United States. If combined in a single tract, our ownership would cover roughly 20,000 square miles. Our ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. We are working to strategically redefine our business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of our 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining and soda ash production business located in the Green River Basin of Wyoming. Sisecam Wyoming mines the trona and processes it into soda ash that is sold both domestically and internationally into the glass and chemicals industries.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment.

 

Our financial results by segment for the nine months ended September 30, 2024 are as follows:

 

   

Operating Segments

                 

(In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

Revenues and other income

  $ 185,077     $ 17,204     $     $ 202,281  

Net income (loss)

  $ 154,017     $ 17,092     $ (30,237 )   $ 140,872  

Adjusted EBITDA (1)

  $ 166,798     $ 28,002     $ (18,193 )   $ 176,607  
                                 

Cash flow provided by (used in) continuing operations

                               

Operating activities

  $ 179,593     $ 28,002     $ (25,322 )   $ 182,273  

Investing activities

  $ 6,788     $     $     $ 6,788  

Financing activities

  $ (1,086 )   $     $ (169,064 )   $ (170,150 )

Distributable cash flow (1)

  $ 186,381     $ 28,002     $ (25,322 )   $ 189,061  

Free cash flow (1)

  $ 181,572     $ 28,002     $ (25,322 )   $ 184,252  
         

(1)

See "Results of Operations" below for reconciliations to the most comparable GAAP financial measures.

 

 

Current Results/Market Commentary

 

Financial Results and Quarterly Distributions 

 

We generated $182.3 million of operating cash flow and $184.3 million of free cash flow during the nine months ended September 30, 2024, and ended the quarter with $76.2 million of liquidity consisting of $30.9 million of cash and cash equivalents and $45.3 million of available borrowing capacity under our Opco Credit Facility. As of September 30, 2024 our leverage ratio was 0.8 x.

 

In the first quarter of 2024, holders of our warrants to purchase common units (the "warrants") exercised a total of 1,219,665 warrants with a strike price of $34.00. We settled these warrants on a net basis with a total of $55.7 million in cash and 198,767 common units. In the second quarter of 2024, holders of our warrants exercised the remaining 320,335 warrants with a strike price of $34.00. We settled these warrants on a net basis with $10.0 million in cash and 89,059 common units. Following these transactions, of the originally issued 4.0 million warrants, after giving effect to these settlements and all prior settlements, no warrants remain outstanding.

 

In May 2024, we executed a negotiated transaction with holders of our Class A Preferred Units ("preferred units") pursuant to which we repurchased an aggregate of 40,000 preferred units for $40.0 million in cash. In September 2024, we redeemed the remaining 31,666 preferred units for $31.7 million in cash. Of the originally issued 250,000 preferred units, after giving effect to these redemptions and all prior redemptions, no preferred units remain outstanding.

 

In 2024, we exercised our option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $30.0 million from $155.0 million to $185.0 million and subsequently by $15.0 million from $185.0 million to $200.0 million. These increases in the total aggregate commitment were made pursuant to an accordion feature of the Opco Credit Facility. In October 2024, we entered into the Seventh Amendment to the Opco Credit Facility which extended the maturity from August 2027 to October 2029. The Seventh Amendment also removed reference to the preferred units and warrants, which are no longer outstanding, and includes modifications to Opco's ability to declare and make certain restricted payments.

 

In February 2024, we paid a cash distribution of $0.75 per common unit of NRP with respect to the fourth quarter of 2023 as well as a $2.15 million cash distribution on the preferred units with respect to the fourth quarter of 2023. We paid a special cash distribution of $2.44 per common unit of NRP in March 2024 to help cover unitholder tax liabilities associated with owning NRP's common units in 2023. In May 2024, we paid a cash distribution of $0.75 per common unit of NRP with respect to the first quarter of 2024 as well as a $2.15 million cash distribution on the preferred units with respect to the first quarter of 2024. In August 2024, we paid a cash distribution of $0.75 per common unit of NRP with respect to the second quarter of 2024 as well as a $0.95 million cash distribution on the preferred units with respect to the second quarter of 2024. Future distributions on our common units will be determined on a quarterly basis by the Board of Directors. The Board of Directors considers numerous factors each quarter in determining cash distributions, including profitability, cash flow, debt service obligations, market conditions and outlook, estimated unitholder income tax liability and the level of cash reserves that the Board of Directors determines is necessary for future operating and capital needs. 

 

Mineral Rights Business Segment

 

Revenues and other income during the nine months ended September 30, 2024 decreased $33.1 million, or 15%, as compared to the prior year period. Cash provided by operating activities and free cash flow during the nine months ended September 30, 2024 decreased by $10.2 million and $10.1 million, respectively, as compared to the prior year period. These decreases were primarily due to lower metallurgical coal sales prices as well as lower thermal coal sales prices and volumes as compared to the prior year period. 

 

Metallurgical coal prices continued to decline during the third quarter of 2024 primarily driven by muted steel demand resulting from sluggish construction activity in China as well as weak manufacturing demand globally. We expect pricing to remain relatively soft for both metallurgical and thermal coal as muted global steel demand impacts metallurgical coal, and mild weather, low natural gas prices, and high inventory levels impact thermal coal. However, continued price support above historical norms is expected due to limited access to capital for operators, qualified labor shortages, and input cost inflation.

 

We continue to explore carbon neutral revenue opportunities across our ownership footprint. While the timing and likelihood of additional cash flows from these activities is uncertain, we believe our large ownership throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by us. Our carbon neutral revenue opportunities include the sequestration of carbon dioxide underground and in standing forests, lithium production, and the generation of electricity using geothermal, solar, and wind energy. 

 

Soda Ash Business Segment

 

Revenues and other income during the nine months ended September 30, 2024 decreased $41.4 million, or 71%, as compared to the prior year period primarily due to significantly lower sales prices driven by increased global production capacity, primarily from China, and weaker demand for flat glass due to a slowdown in global construction activity and weakness in demand for automobiles. Cash provided by operating activities and free cash flow during the nine months ended September 30, 2024 decreased $37.9 million as compared to the prior year period as the decline in revenues and other income resulted in lower cash distributions received from Sisecam Wyoming in the nine months ended September 30, 2024.

 

We believe it will take several years for the world to absorb the additional soda ash supply recently introduced into the market and allow prices to rise back to historically normal equilibrium levels. The timing of this absorption will be highly dependent on China, which currently produces and consumes approximately 50% of global soda ash.

 

 

Results of Operations

 

Third Quarter of 2024 and 2023 Compared

 

Revenues and Other Income

 

The following table includes our revenues and other income by operating segment:

 

    For the Three Months Ended September 30,         Percentage  

Operating Segment (In thousands)

 

2024

   

2023

   

Decrease

   

Change

 

Mineral Rights

  $ 52,218     $ 73,966     $ (21,748 )     (29 )%

Soda Ash

    8,109       12,401       (4,292 )     (35 )%

Total

  $ 60,327     $ 86,367     $ (26,040 )     (30 )%

 

The changes in revenues and other income are discussed for each of the operating segments below:

 

 

Mineral Rights

 

The following table presents coal sales volumes, coal royalty revenue per ton and coal royalty revenues by major coal producing region, the significant categories of other revenues and other income:

 

    For the Three Months Ended September 30,    

Increase

   

Percentage

 

(In thousands, except per ton data)

 

2024

   

2023

   

(Decrease)

   

Change

 

Coal sales volumes (tons)

                               

Appalachia

                               

Northern

    470       284       186       65 %

Central

    3,507       3,429       78       2 %

Southern

    705       741       (36 )     (5 )%

Total Appalachia

    4,682       4,454       228       5 %

Illinois Basin

    1,128       2,541       (1,413 )     (56 )%

Northern Powder River Basin

    944       1,364       (420 )     (31 )%

Gulf Coast

    436       479       (43 )     (9 )%

Total coal sales volumes

    7,190       8,838       (1,648 )     (19 )%
                                 

Coal royalty revenue per ton

                               

Appalachia

                               

Northern

  $ 2.34     $ 5.54     $ (3.20 )     (58 )%

Central

    6.55       8.20       (1.65 )     (20 )%

Southern

    9.56       11.88       (2.32 )     (20 )%

Illinois Basin

    1.76       3.98       (2.22 )     (56 )%

Northern Powder River Basin

    4.82       4.86       (0.04 )     (1 )%

Gulf Coast

    0.84       0.69       0.15       22 %

Combined average coal royalty revenue per ton

    5.24       6.29       (1.05 )     (17 )%
                                 

Coal royalty revenues

                               

Appalachia

                               

Northern

  $ 1,100     $ 1,573     $ (473 )     (30 )%

Central

    22,958       28,111       (5,153 )     (18 )%

Southern

    6,743       8,806       (2,063 )     (23 )%

Total Appalachia

    30,801       38,490       (7,689 )     (20 )%

Illinois Basin

    1,987       10,108       (8,121 )     (80 )%

Northern Powder River Basin

    4,546       6,627       (2,081 )     (31 )%

Gulf Coast

    366       330       36       11 %

Unadjusted coal royalty revenues

    37,700       55,555       (17,855 )     (32 )%

Coal royalty adjustment for minimum leases

    (95 )     (11 )     (84 )     (764 )%

Total coal royalty revenues

  $ 37,605     $ 55,544     $ (17,939 )     (32 )%
                                 

Other revenues

                               

Production lease minimum revenues

  $ 437     $ 850     $ (413 )     (49 )%

Minimum lease straight-line revenues

    4,117       4,464       (347 )     (8 )%

Carbon neutral initiative revenues

    (39 )     681       (720 )     (106 )%

Wheelage revenues

    2,072       2,385       (313 )     (13 )%

Property tax revenues

    1,809       1,770       39       2 %

Coal overriding royalty revenues

    227       827       (600 )     (73 )%

Lease amendment revenues

    1,071       623       448       72 %

Aggregates royalty revenues

    662       736       (74 )     (10 )%

Oil and gas royalty revenues

    1,317       324       993       306 %

Other revenues

    1,127       329       798       243 %

Total other revenues

  $ 12,800     $ 12,989     $ (189 )     (1 )%

Royalty and other mineral rights

  $ 50,405     $ 68,533     $ (18,128 )     (26 )%

Transportation and processing services revenues

    1,812       4,579       (2,767 )     (60 )%

Gain on asset sales and disposals

    1       854       (853 )     (100 )%

Total Mineral Rights segment revenues and other income

  $ 52,218     $ 73,966     $ (21,748 )     (29 )%

 

 

Coal Royalty Revenues 

 

Approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal during the three months ended September 30, 2024. Total coal royalty revenues decreased $17.9 million as compared to the prior year quarter primarily due to lower metallurgical coal sales prices as well as lower thermal coal sales prices and volumes during the three months ended September 30, 2024, as compared to the prior year quarter.

 

Transportation and Processing Services Revenues

 

Transportation and processing services revenues decreased $2.8 million primarily due to a temporary relocation of certain production off of NRP's coal reserves. The fee per ton associated with the transportation and processing of the non-NRP coal is less than the fee per ton associated with the transportation and processing of NRP coal. 

 

Soda Ash

 

Revenues and other income related to our Soda Ash segment decreased $4.3 million as compared to the prior year quarter primarily due to significantly lower sales prices driven by increased global production capacity, primarily from China, and weaker demand for flat glass due to a slowdown in global construction activity and weakness in demand for automobiles.

 

Operating Expenses

 

The following table presents the significant categories of our consolidated operating expenses:

 

   

For the Three Months Ended September 30,

   

Increase

   

Percentage

 

(In thousands)

 

2024

   

2023

   

(Decrease)

   

Change

 

Operating expenses

                               

Operating and maintenance expenses

  $ 6,786     $ 8,358     $ (1,572 )     (19 )%

Depreciation, depletion and amortization

    4,730       4,594       136       3 %

General and administrative expenses

    5,935       5,669       266       5 %

Asset impairments

    87       63       24       38 %

Total operating expenses

  $ 17,538     $ 18,684     $ (1,146 )     (6 )%

 

Total operating expenses decreased $1.1 million as compared to the prior year quarter primarily due to a decrease in operating and maintenance expenses during the three months ended September 30, 2024 as compared to the prior year quarter. The decrease in operating and maintenance expenses was primarily due to lower overriding royalty expense from an agreement with Western Pocahontas Properties Limited Partnership ("WPPLP") in the third quarter of 2024 as compared to the third quarter of 2023. This overriding royalty expense is fully offset by coal royalty revenue we receive from this property.

 

Interest Expense, Net

 

Interest expense, net increased $0.4 million primarily due to higher borrowings outstanding on the Opco Credit Facility during the three months ended September 30, 2024 as compared to the prior year period.

 

Adjusted EBITDA (Non-GAAP Financial Measure)

 

The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment:

 

   

Operating Segments

                 

For the Three Months Ended (In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

September 30, 2024

                               

Net income (loss)

  $ 40,644     $ 8,085     $ (10,134 )   $ 38,595  

Less: equity earnings from unconsolidated investment

          (8,109 )           (8,109 )

Add: total distributions from unconsolidated investment

          6,320             6,320  

Add: interest expense, net

                4,194       4,194  

Add: depreciation, depletion and amortization

    4,725             5       4,730  

Add: asset impairments

    87                   87  

Adjusted EBITDA

  $ 45,456     $ 6,296     $ (5,935 )   $ 45,817  
                                 

September 30, 2023

                               

Net income (loss)

  $ 61,009     $ 12,348     $ (9,511 )   $ 63,846  

Less: equity earnings from unconsolidated investment

          (12,401 )           (12,401 )

Add: total distributions from unconsolidated investment

          23,010             23,010  

Add: interest expense, net

                3,837       3,837  

Add: depreciation, depletion and amortization

    4,589             5       4,594  

Add: asset impairments

    63                   63  

Adjusted EBITDA

  $ 65,661     $ 22,957     $ (5,669 )   $ 82,949  

 

Net income decreased $25.3 million as compared to the prior year quarter primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $37.1 million as compared to the prior year quarter primarily due to a $20.2 million decrease in Adjusted EBITDA within our Mineral Rights segment driven by the lower revenues and other income as discussed above in addition to a $16.7 million decrease in Adjusted EBITDA within our Soda Ash segment driven by a lower distribution received from Sisecam Wyoming in the third quarter of 2024.

 

 

Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures)

 

The following table presents the three major categories of the statement of cash flows by business segment:

 

   

Operating Segments

                 

For the Three Months Ended (In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

September 30, 2024

                               

Cash flow provided by (used in)

                               

Operating activities

  $ 53,610     $ 6,297     $ (5,762 )   $ 54,145  

Investing activities

    674                   674  

Financing activities

                (56,259 )     (56,259 )
                                 

September 30, 2023

                               

Cash flow provided by (used in)

                               

Operating activities

  $ 60,938     $ 22,958     $ (4,954 )   $ 78,942  

Investing activities

    1,477                   1,477  

Financing activities

                (72,738 )     (72,738 )

 

The following table reconciles net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF:

 

   

Operating Segments

                 

For the Three Months Ended (In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

September 30, 2024

                               

Net cash provided by (used in) operating activities

  $ 53,610     $ 6,297     $ (5,762 )   $ 54,145  

Add: proceeds from asset sales and disposals

    1                   1  

Add: return of long-term contract receivable

    673                   673  

Distributable cash flow

  $ 54,284     $ 6,297     $ (5,762 )   $ 54,819  

Less: proceeds from asset sales and disposals

    (1 )                 (1 )

Free cash flow

  $ 54,283     $ 6,297     $ (5,762 )   $ 54,818  
                                 

September 30, 2023

                               

Net cash provided by (used in) operating activities

  $ 60,938     $ 22,958     $ (4,954 )   $ 78,942  

Add: proceeds from asset sales and disposals

    855                   855  

Add: return of long-term contract receivable

    622                   622  

Less: maintenance capital expenditures

                       

Distributable cash flow

  $ 62,415     $ 22,958     $ (4,954 )   $ 80,419  

Less: proceeds from asset sales and disposals

    (855 )                 (855 )

Free cash flow

  $ 61,560     $ 22,958     $ (4,954 )   $ 79,564  

 

Operating cash flow, DCF and FCF decreased $24.8 million, $25.6 million and $24.7 million, respectively, as compared to the prior year quarter. The discussion by segment is as follows:

 

Mineral Rights Segment

 

Operating cash flow, DCF and FCF decreased $7.3 million, $8.1 million and $7.3 million, respectively, primarily due to lower metallurgical coal sales prices as well as lower thermal coal sales prices and volumes as compared to the prior year quarter. 

 

Soda Ash Segment

 

Operating cash flow, DCF and FCF decreased $16.7 million as compared to the prior year quarter primarily due to a lower distribution received from Sisecam Wyoming in the third quarter of 2024.

 

Corporate and Financing

 

Operating cash flow, DCF and FCF decreased $0.8 million as compared to the prior year quarter primarily due to higher cash paid for interest resulting from higher borrowings outstanding on the Opco Credit Facility during the three months ended September 30, 2024.

 

 

First Nine Months of 2024 and 2023 Compared

 

Revenues and Other Income

 

The following table includes our revenues and other income by operating segment:

 

   

For the Nine Months Ended September 30,

         

Percentage

 

Operating Segment (In thousands)

 

2024

   

2023

   

Decrease

   

Change

 

Mineral Rights

  $ 185,077     $ 218,213     $ (33,136 )     (15 )%

Soda Ash

    17,204       58,633       (41,429 )     (71 )%

Total

  $ 202,281     $ 276,846     $ (74,565 )     (27 )%

 

The changes in revenues and other income are discussed for each of the operating segments below:

 

 

Mineral Rights

 

The following table presents coal sales volumes, coal royalty revenue per ton and coal royalty revenues by major coal producing region, the significant categories of other revenues and other income:

 

   

For the Nine Months Ended September 30,

   

Increase

   

Percentage

 

(In thousands, except per ton data)

 

2024

   

2023

   

(Decrease)

   

Change

 

Coal sales volumes (tons)

                               

Appalachia

                               

Northern

    716       1,053       (337 )     (32 )%

Central

    10,677       10,390       287       3 %

Southern

    1,984       2,016       (32 )     (2 )%

Total Appalachia

    13,377       13,459       (82 )     (1 )%

Illinois Basin

    4,503       5,482       (979 )     (18 )%

Northern Powder River Basin

    2,460       3,330       (870 )     (26 )%

Gulf Coast

    1,136       676       460       68 %

Total coal sales volumes

    21,476       22,947       (1,471 )     (6 )%
                                 

Coal royalty revenue per ton

                               

Appalachia

                               

Northern

  $ 2.70     $ 7.59     $ (4.89 )     (64 )%

Central

    7.34       8.89       (1.55 )     (17 )%

Southern

    10.37       12.41       (2.04 )     (16 )%

Illinois Basin

    2.33       3.63       (1.30 )     (36 )%

Northern Powder River Basin

    4.87       4.74       0.13       3 %

Gulf Coast

    0.79       0.68       0.11       16 %

Combined average coal royalty revenue per ton

    5.78       7.04       (1.26 )     (18 )%
                                 

Coal royalty revenues

                               

Appalachia

                               

Northern

  $ 1,930     $ 7,991     $ (6,061 )     (76 )%

Central

    78,328       92,362       (14,034 )     (15 )%

Southern

    20,571       25,024       (4,453 )     (18 )%

Total Appalachia

    100,829       125,377       (24,548 )     (20 )%

Illinois Basin

    10,510       19,924       (9,414 )     (47 )%

Northern Powder River Basin

    11,976       15,768       (3,792 )     (24 )%

Gulf Coast

    902       461       441       96 %

Unadjusted coal royalty revenues

    124,217       161,530       (37,313 )     (23 )%

Coal royalty adjustment for minimum leases

    (109 )     (3 )     (106 )     (3,533 )%

Total coal royalty revenues

  $ 124,108     $ 161,527     $ (37,419 )     (23 )%
                                 

Other revenues

                               

Production lease minimum revenues

  $ 1,773     $ 2,025     $ (252 )     (12 )%

Minimum lease straight-line revenues

    12,414       13,414       (1,000 )     (7 )%

Carbon neutral initiative revenues

    4,322       2,914       1,408       48 %

Wheelage revenues

    7,082       9,538       (2,456 )     (26 )%

Property tax revenues

    5,246       4,710       536       11 %

Coal overriding royalty revenues

    2,064       1,165       899       77 %

Lease amendment revenues

    2,485       2,322       163       7 %

Aggregates royalty revenues

    2,164       2,175       (11 )     (1 )%

Oil and gas royalty revenues

    6,956       5,126       1,830       36 %

Other revenues

    3,754       895       2,859       319 %

Total other revenues

  $ 48,260     $ 44,284     $ 3,976       9 %

Royalty and other mineral rights

  $ 172,368     $ 205,811     $ (33,443 )     (16 )%

Transportation and processing services revenues

    7,900       11,447       (3,547 )     (31 )%

Gain on asset sales and disposals

    4,809       955       3,854       404 %

Total Mineral Rights segment revenues and other income

  $ 185,077     $ 218,213     $ (33,136 )     (15 )%

  

 

Coal Royalty Revenues

 

Approximately 75% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal during the nine months ended September 30, 2024. Total coal royalty revenues decreased $37.4 million as compared to the prior year period primarily due to lower metallurgical coal sales prices as well as lower thermal coal sales prices and volumes during the nine months ended September 30, 2024, as compared to the prior year period.

 

Other Revenues

 

Other revenues increased $4.0 million primarily driven by higher oil and gas royalty and other revenues as compared to the prior year period.

 

Gain on Asset Sales and Disposals

 

Gain on asset sales and disposals increased $3.9 million during the nine months ended September 30, 2024 as compared to the prior year period as a result of a coal property condemnation in the second quarter of 2024. 

 

Soda Ash

 

Revenues and other income related to our Soda Ash segment decreased $41.4 million as compared to the prior year period primarily due to significantly lower sales prices driven by increased global production capacity, primarily from China, and weaker demand for flat glass due to a slowdown in global construction activity and weakness in demand for automobiles.

 

Operating Expenses

 

The following table presents the significant categories of our consolidated operating expenses:

 

   

For the Nine Months Ended September 30,

   

Increase

   

Percentage

 

(In thousands)

 

2024

   

2023

   

(Decrease)

   

Change

 

Operating expenses

                               

Operating and maintenance expenses

  $ 18,391     $ 23,451     $ (5,060 )     (22 )%

Depreciation, depletion and amortization

    12,708       12,469       239       2 %

General and administrative expenses

    18,193       17,157       1,036       6 %

Asset impairments

    87       132       (45 )     (34 )%

Total operating expenses

  $ 49,379     $ 53,209     $ (3,830 )     (7 )%

 

Total operating expenses decreased $3.8 million as compared to the prior year period primarily due to a decrease in operating and maintenance expenses during the nine months ended September 30, 2024 as compared to the prior year period. The decrease in operating and maintenance expenses was primarily due to lower overriding royalty expense from an agreement with WPPLP in the first nine months of 2024 as compared to the first nine months of 2023. This overriding royalty expense is fully offset by coal royalty revenue we receive from this property.

 

Interest Expense, Net

 

Interest expense, net increased $1.8 million primarily due to higher borrowings outstanding on the Opco Credit Facility during the nine months ended September 30, 2024 as compared to the prior year period.

 

Adjusted EBITDA (Non-GAAP Financial Measure)

 

The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment:

 

   

Operating Segments

                 

For the Nine Months Ended (In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

September 30, 2024

                               

Net income (loss)

  $ 154,017     $ 17,092     $ (30,237 )   $ 140,872  

Less: equity earnings from unconsolidated investment

          (17,204 )           (17,204 )

Add: total distributions from unconsolidated investment

          28,114             28,114  

Add: interest expense, net

                12,030       12,030  

Add: depreciation, depletion and amortization

    12,694             14       12,708  

Add: asset impairments

    87                   87  

Adjusted EBITDA

  $ 166,798     $ 28,002     $ (18,193 )   $ 176,607  
                                 

September 30, 2023

                               

Net income (loss)

  $ 182,400     $ 58,408     $ (27,353 )   $ 213,455  

Less: equity earnings from unconsolidated investment

          (58,633 )           (58,633 )

Add: total distributions from unconsolidated investment

          66,140             66,140  

Add: interest expense, net

                10,182       10,182  

Add: depreciation, depletion and amortization

    12,455             14       12,469  

Add: asset impairments

    132                   132  

Adjusted EBITDA

  $ 194,987     $ 65,915     $ (17,157 )   $ 243,745  

 

Net income decreased $72.6 million as compared to the prior year period primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $67.1 million as compared to the prior year period primarily due to an $28.2 million decrease in Adjusted EBITDA within our Mineral Rights segment primarily as a result of lower revenues and other income and a $37.9 million decrease in Adjusted EBITDA within our Soda Ash segment primarily due to lower distributions received from Sisecam Wyoming in the first nine months of 2024.

 

 

Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures)

 

The following table presents the three major categories of the statement of cash flows by business segment:

 

   

Operating Segments

                 

For the Nine Months Ended (In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

September 30, 2024

                               

Cash flow provided by (used in)

                               

Operating activities

  $ 179,593     $ 28,002     $ (25,322 )   $ 182,273  

Investing activities

    6,788                   6,788  

Financing activities

    (1,086 )           (169,064 )     (170,150 )
                                 

September 30, 2023

                               

Cash flow provided by (used in)

                               

Operating activities

  $ 189,836     $ 65,901     $ (22,545 )   $ 233,192  

Investing activities

    2,791             (10 )     2,781  

Financing activities

    (583 )           (256,070 )     (256,653 )

  

The following table reconciles net cash provided by (used in) operating activities (the most comparable GAAP financial measure) by business segment to DCF and FCF:

 

   

Operating Segments

                 

For the Nine Months Ended (In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

September 30, 2024

                               

Net cash provided by (used in) operating activities

  $ 179,593     $ 28,002     $ (25,322 )   $ 182,273  

Add: proceeds from asset sales and disposals

    4,809                   4,809  

Add: return of long-term contract receivable

    1,979                   1,979  

Less: maintenance capital expenditures

                       

Distributable cash flow

  $ 186,381     $ 28,002     $ (25,322 )   $ 189,061  

Less: proceeds from asset sales and disposals

    (4,809 )                 (4,809 )

Free cash flow

  $ 181,572     $ 28,002     $ (25,322 )   $ 184,252  
                                 

September 30, 2023

                               

Net cash provided by (used in) operating activities

  $ 189,836     $ 65,901     $ (22,545 )   $ 233,192  

Add: proceeds from asset sales and disposals

    961                   961  

Add: return of long-term contract receivable

    1,830                   1,830  

Less: maintenance capital expenditures

                (10 )     (10 )

Distributable cash flow

  $ 192,627     $ 65,901     $ (22,555 )   $ 235,973  

Less: proceeds from asset sales and disposals

    (961 )                 (961 )

Free cash flow

  $ 191,666     $ 65,901     $ (22,555 )   $ 235,012  

 

Operating cash flow, DCF and FCF decreased $50.9 million, $46.9 million and $50.8 million, respectively. The discussion by segment is as follows:

 

Mineral Rights Segment

 

Operating cash flow, DCF and FCF decreased $10.2 million, $6.2 million and $10.1 million, respectively, primarily due to lower metallurgical coal sales prices as well as lower thermal coal sales prices and volumes during the first nine months of 2024 as compared to the prior year period. The decrease in DCF was partially offset by cash received related to a coal property condemnation in the second quarter of 2024.

 

Soda Ash Segment

 

Operating cash flow, DCF and FCF decreased $37.9 million as compared to the prior year period primarily due to lower distributions received from Sisecam Wyoming in the first nine months of 2024.

 

Corporate and Financing Segment

 

Operating cash flow, DCF and FCF decreased $2.8 million as compared to the prior year quarter primarily due to higher cash paid for interest resulting from higher borrowings outstanding on the Opco Credit Facility during the nine months ended September 30, 2024.

 

 

Liquidity and Capital Resources

 

Current Liquidity

 

As of September 30, 2024, we had total liquidity of $76.2 million, consisting of $30.9 million of cash and cash equivalents and $45.3 million of borrowing capacity under our Opco Credit Facility. We have debt service obligations, including approximately $14 million of principal repayments on Opco’s senior notes, throughout the remainder of 2024. The following table calculates our leverage ratio as of September 30, 2024: 

 

   

For the Three Months Ended

         

(In thousands)

  December 31, 2023     March 31, 2024     June 30, 2024     September 30, 2024     Last 12 Months  

Net income

  $ 64,980     $ 56,213     $ 46,064     $ 38,595     $ 205,852  

Less: equity earnings from unconsolidated investment

    (14,764 )     (5,450 )     (3,645 )     (8,109 )     (31,968 )

Add: total distributions from unconsolidated investment

    15,338       14,210       7,584       6,320       43,452  

Add: interest expense, net

    3,921       3,487       4,349       4,194       15,951  

Add: depreciation, depletion and amortization

    6,020       4,654       3,324       4,730       18,728  

Add: asset impairments

    424                   87       511  

Adjusted EBITDA

  $ 75,919     $ 73,114     $ 57,676     $ 45,817     $ 252,526  
                                         

Debt—at September 30, 2024

                                  $ 197,678  
                                         

Leverage Ratio

                                 

0.8 x

 

 

Cash Flows

 

Cash flows provided by operating activities decreased $50.9 million, from $233.2 million in the nine months ended September 30, 2023 to $182.3 million in the nine months ended September 30, 2024, primarily due to decreased cash flow within our Mineral Rights and Soda Ash segments, all discussed above.

 

Cash flows provided by investing activities increased $4.0, million from $2.8 million in the nine months ended September 30, 2023 to $6.8 million in the nine months ended September 30, 2024, primarily due to a coal condemnation payment received in the second quarter of 2024.

 

Cash used in financing activities decreased $86.5 million, from $256.7 million used in the nine months ended September 30, 2023 to $170.2 million used in the nine months ended September 30, 2024 due to the following:

  $106.7 million of decreased cash used for the redemption of preferred units in 2024 as compared to 2023;
 

$65.4 million of decreased debt repayments in 2024 as compared to 2023; and

 

$13.5 million decreased distributions to preferred unitholders in 2024 as compared to 2023.

 

These decreases in cash flow used were partially offset by the following:

  $62.2 million of decreased borrowings on the Opco Credit Facility in 2024 as compared to 2023; 
  $32.1 million of increased cash used for the warrant settlements in 2024 as compared to 2023;
  $2.9 million of increased cash used for other items, net in 2024 as compared to 2023; and
  $1.9 million of increased distributions to common unitholders and the general partner in 2024 as compared to 2023.

 

 

Capital Resources and Obligations

 

Debt, Net

 

We had the following debt outstanding as of September 30, 2024 and December 31, 2023:

 

   

September 30,

   

December 31,

 

(In thousands)

 

2024

   

2023

 

Current portion of long-term debt, net

  $ 14,226     $ 30,785  

Long-term debt, net

    183,137       124,273  

Total debt, net

  $ 197,363     $ 155,058  

 

We have been and continue to be in compliance with the terms of the financial covenants contained in our debt agreements. For additional information regarding our debt and the agreements governing our debt, including the covenants contained therein, see Note 9. Debt, Net to the Consolidated Financial Statements included elsewhere in this Quarterly Report on Form 10-Q.

 

Off-Balance Sheet Transactions

 

We do not have any off-balance sheet arrangements with unconsolidated entities or related parties and accordingly, there are no off-balance sheet risks to our liquidity and capital resources from unconsolidated entities.

 

Related Party Transactions

 

The information required set forth under Note 11. Related Party Transactions to the Consolidated Financial Statements is incorporated herein by reference.

 

Summary of Critical Accounting Estimates

 

The preparation of Consolidated Financial Statements in conformity with generally accepted accounting principles in the United States of America requires management to make certain estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. There have been no significant changes to our critical accounting estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

 

Recent Accounting Standards

 

In November 2023, the FASB issued ASU No. 2023-07—Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses. The guidance is effective for annual periods beginning after December 15, 2023 and quarterly periods beginning after December 15, 2024 and will be adopted retrospectively to all prior periods presented in the financial statements. We do not expect the adoption of ASU 2023-07 to have a material effect on our Consolidated Financial Statements.

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are exposed to market risk, which includes adverse changes in commodity prices and interest rates as discussed below:

 

Commodity Price Risk

 

Our revenues, operating results, financial condition and ability to borrow funds or obtain additional capital depend substantially on prevailing commodity prices. Historically, coal prices have been volatile, with prices fluctuating widely, and are likely to continue to be volatile. Depressed prices in the future would have a negative impact on our future financial results. In particular, substantially lower prices would significantly reduce revenues and could potentially trigger an impairment of our coal properties or a violation of certain financial debt covenants. Because substantially all our reserves are coal, changes in coal prices have a more significant impact on our financial results. 

 

We are dependent upon the effective marketing of the coal mined by our lessees. Our lessees sell the coal under various long-term and short-term contracts as well as on the spot market. Current conditions in the coal industry may make it difficult for our lessees to extend existing contracts or enter into supply contracts with terms of one year or more. Our lessees' failure to negotiate long-term contracts could adversely affect the stability and profitability of our lessees' operations and adversely affect our future financial results. If more coal is sold on the spot market, coal royalty revenues may become more volatile due to fluctuations in spot coal prices. 

 

The market price of soda ash and energy costs directly affects the profitability of Sisecam Wyoming's operations. If the market price for soda ash declines, Sisecam Wyoming's sales revenues will decrease. Historically, the global market and, to a lesser extent, the domestic market for soda ash have been volatile and are likely to remain volatile in the future. 

 

Interest Rate Risk

 

Our exposure to changes in interest rates results from our borrowings under the Opco Credit Facility, which is subject to variably interest rates based upon SOFR. At September 30, 2024, we had $154.7 million in borrowings outstanding under the Opco Credit Facility. If interest rates were to increase by 1%, annual interest expense would increase approximately $1.5 million, assuming the same principal amount remained outstanding during the year.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

NRP carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. This evaluation was performed under the supervision and with the participation of NRP management, including the Chief Executive Officer and Chief Financial Officer of the general partner of the general partner of NRP. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective in providing reasonable assurance that (a) the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and (b) such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in the Partnerships Internal Control Over Financial Reporting

 

There were no material changes in the Partnership’s internal control over financial reporting during the first nine months of 2024 that materially affected, or were reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

 

 

PART II

ITEM 1. LEGAL PROCEEDINGS

 

From time to time, we are involved in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, we believe these ordinary course matters will not have a material effect on our financial position, liquidity or operations.

 

ITEM 1A. RISK FACTORS

 

During the period covered by this report, there were no material changes from the risk factors previously disclosed in Natural Resource Partners L.P.’s Annual Report on Form 10-K for the year ended December 31, 2023.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None. 

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

Exhibit

Number

 

Description

3.1

 

Fifth Amended and Restated Agreement of Limited Partnership of Natural Resource Partners L.P., dated as of March 2, 2017 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on March 6, 2017).

3.2

 

Fifth Amended and Restated Agreement of Limited Partnership of NRP (GP) LP, dated as of December 16, 2011 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on December 16, 2011).

3.3

 

Fifth Amended and Restated Limited Liability Company Agreement of GP Natural Resource Partners LLC, dated as of October 31, 2013 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on October 31, 2013).

3.4

 

Certificate of Limited Partnership of Natural Resource Partners L.P. (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-1 filed April 19, 2002, File No. 333-86582).

10.1   New Lender Agreement, dated as of February 1, 2024, by and among NRP (Operating) LLC, Zions Bancorporation, N.A. dba Amegy Bank, and Summit Community Bank (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on February 6, 2024).

10.2

  Commitment Increase Agreement dated as of February 14, 2024, by and among NRP (Operating) LLC, Zions Bancorporation, N.A. dba Amegy Bank, and Frost Bank (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on February 20, 2024).
10.3   Seventh Amendment to the Third Amended and Restated Credit Agreement, dated as of October 15, 2024, by and among NRP (Operating) LLC, the lenders party thereto and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on October 18, 2024).
31.1*   Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley.
31.2*   Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley.
32.1**   Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
32.2**   Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.

101.INS*

 

Inline XBRL Instance Document

101.SCH*

 

Inline XBRL Taxonomy Extension Schema Document

101.CAL*

 

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

 

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

 

Inline XBRL Taxonomy Extension Labels Linkbase Document

101.PRE*

 

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104*

 

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101)

     

*

 

Filed herewith

**

 

Furnished herewith

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned and thereunto duly authorized.

 

 

NATURAL RESOURCE PARTNERS L.P.

 

By:

NRP (GP) LP, its general partner

 

By:

GP NATURAL RESOURCE

   

PARTNERS LLC, its general partner

     

Date: November 5, 2024 

By:

/s/ Corbin J. Robertson, Jr.
   

Corbin J. Robertson, Jr.

   

Chairman of the Board and

   

Chief Executive Officer

   

(Principal Executive Officer)

     

 

Date: November 5, 2024

By:

/s/ Christopher J. Zolas

   

Christopher J. Zolas

   

Chief Financial Officer

   

(Principal Financial and Accounting Officer)

   

32

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 

I, Corbin J. Robertson, Jr., certify that: 

 

1

I have reviewed this report on Form 10-Q of Natural Resource Partners L.P.

 

2

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

   

By:

/s/ Corbin J. Robertson, Jr.
 

Corbin J. Robertson, Jr.

 

Chief Executive Officer

   

Date:

November 5, 2024

 

 

Exhibit 31.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 

I, Christopher J. Zolas, certify that:

 

 

1

I have reviewed this report on Form 10-Q of Natural Resource Partners L.P.

 

2

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);

 

 

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

   

By:

/s/ Christopher J. Zolas
  Christopher J. Zolas
 

Chief Financial Officer

   

Date:

November 5, 2024

 

 

Exhibit 32.1

 

 

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER

OF GP NATURAL RESOURCE PARTNERS LLC

PURSUANT TO 18 U.S.C. § 1350

 

In connection with the accompanying report on Form 10-Q for the quarter ended September 30, 2024 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Corbin J. Robertson, Jr., Chief Executive Officer of GP Natural Resource Partners LLC, the general partner of the general partner of Natural Resource Partners L.P. (the “Company”), hereby certify, to my knowledge, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

By:

/s/ Corbin J. Robertson, Jr.
 

Corbin J. Robertson, Jr.

 

Chief Executive Officer

   

Date:

November 5, 2024

  

 

Exhibit 32.2

 

 

CERTIFICATION OF

CHIEF FINANCIAL OFFICER

OF GP NATURAL RESOURCE PARTNERS LLC

PURSUANT TO 18 U.S.C. § 1350

 

In connection with the accompanying report on Form 10-Q for the quarter ended September 30, 2024 filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Christopher J. Zolas, Chief Financial Officer of GP Natural Resource Partners LLC, the general partner of the general partner of Natural Resource Partners L.P. (the “Company”), hereby certify, to my knowledge, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

By:

/s/ Christopher J. Zolas
 

Christopher J. Zolas

 

Chief Financial Officer

   

Date:

November 5, 2024

   

 
v3.24.3
Document And Entity Information - shares
9 Months Ended
Sep. 30, 2024
Nov. 05, 2024
Document Information [Line Items]    
Entity Central Index Key 0001171486  
Entity Registrant Name NATURAL RESOURCE PARTNERS LP  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2024  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-31465  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 35-2164875  
Entity Address, Address Line One 1415 Louisiana Street, Suite 3325  
Entity Address, City or Town Houston  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 77002  
City Area Code 713  
Local Phone Number 751-7507  
Title of 12(b) Security Common Units representing limited partner interests  
Trading Symbol NRP  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   13,049,123
v3.24.3
Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 30,900 $ 11,989
Accounts receivable, net 36,886 41,086
Other current assets, net 1,483 2,218
Total current assets 69,269 55,293
Land 24,008 24,008
Mineral rights, net 382,274 394,483
Intangible assets, net 13,109 13,682
Equity in unconsolidated investment 267,806 276,549
Long-term contract receivable, net 24,212 26,321
Other Assets, Noncurrent 9,187 7,540
Total assets 789,865 797,876
Current liabilities    
Accounts payable 984 885
Accrued liabilities 7,912 12,987
Accrued interest 775 584
Current portion of deferred revenue 5,823 4,599
Current portion of long-term debt, net 14,226 30,785
Total current liabilities 29,720 49,840
Deferred revenue 53,912 38,356
Long-term debt, net 183,137 124,273
Other Liabilities, Noncurrent 5,903 7,172
Total liabilities 272,672 219,641
Commitments and contingencies (see Note 13)
Class A Convertible Preferred Units (71,666 issued and outstanding at December 31, 2023 at $1,000 par value per unit) (See Note 3) 0 47,181
Partners’ capital    
Common unitholders’ interest (13,049,123 and 12,634,642 units issued and outstanding at September 30, 2024 and December 31, 2023, respectively) 509,258 503,076
General partner’s interest 8,891 8,005
Warrant holders’ interest 0 23,095
Accumulated other comprehensive loss (956) (3,122)
Total partners’ capital 517,193 531,054
Total liabilities and partners' capital $ 789,865 $ 797,876
v3.24.3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Sep. 30, 2024
Dec. 31, 2023
Temporary Equity, shares issued (in shares)   71,666
Temporary Equity, shares outstanding (in shares)   71,666
Temporary Equity, par value (in dollars per share) $ 1,000 $ 1,000
Common unitholders interest, issued (in shares) 13,049,123 12,634,642
Common unitholders interest, outstanding (in shares) 13,049,123 12,634,642
v3.24.3
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenues and other income        
Equity in earnings of Sisecam Wyoming $ 8,109 $ 12,401 $ 17,204 $ 58,633
Gain on asset sales and disposals 1 854 4,809 955
Total revenues and other income 60,327 86,367 202,281 276,846
Operating expenses        
Operating and maintenance expenses 6,786 8,358 18,391 23,451
Depreciation, depletion and amortization 4,730 4,594 12,708 12,469
General and administrative expenses 5,935 5,669 18,193 17,157
Asset impairments 87 63 87 132
Total operating expenses 17,538 18,684 49,379 53,209
Income from operations 42,789 67,683 152,902 223,637
Interest expense, net (4,194) (3,837) (12,030) (10,182)
Net income 38,595 [1] 63,846 [2] 140,872 213,455
Less: income attributable to preferred unitholders (655) (2,936) (4,248) (14,568)
Less: redemption of preferred units (10,819) (17,083) (24,485) (60,929)
Net income attributable to common unitholders and the general partner 27,121 43,827 112,139 137,958
Net income attributable to common unitholders 26,578 42,951 109,896 135,199
Net income attributable to the general partner $ 543 $ 876 $ 2,243 $ 2,759
Net income per common unit (see Note 5)        
Basic (in dollars per share) $ 2.04 $ 3.4 $ 8.47 $ 10.72
Diluted (in dollars per share) $ 2 $ 2.91 $ 8.21 $ 8.88
Net income $ 38,595 [1] $ 63,846 [2] $ 140,872 $ 213,455
Comprehensive income (loss) from unconsolidated investment and other 82 2,200 2,166 (16,472)
Comprehensive income 38,677 66,046 143,038 196,983
Royalty and Other Mineral Rights [Member] | Mineral Rights Segment [Member]        
Revenues and other income        
Revenues 50,405 68,533 172,368 205,811
Transportation and Processing Services [Member] | Mineral Rights Segment [Member]        
Revenues and other income        
Revenues $ 1,812 $ 4,579 $ 7,900 $ 11,447
[1] Net income includes $0.66 million of income attributable to preferred unitholders that accumulated during the period, of which $0.64 million is allocated to the common unitholders and $0.01 million is allocated to the general partner.
[2] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
v3.24.3
Consolidated Statements of Partners' Capital (Unaudited) - USD ($)
$ in Thousands
Total
AOCI Attributable to Parent [Member]
Limited Partner [Member]
General Partner [Member]
Warrant Holder [Member]
Balance (in shares) at Dec. 31, 2022     12,506,000    
Balance at Dec. 31, 2022 $ 477,457 $ 18,717 $ 404,799 $ 5,977 $ 47,964
Net income [1] 79,275   77,690 1,585  
Distributions to common unitholders and the general partner (40,900)   (40,082) (818)  
Distributions to preferred unitholders (8,086)   $ (7,924) (162)  
Issuance of unit-based awards (in shares)     129,000    
Unit-based awards amortization and vesting, net (1,178)   $ (1,178)    
Capital contribution 142     142  
Comprehensive income from unconsolidated investment and other (19,583) (19,583)      
Redemption of preferred units (16,228)   $ (15,904) (324)  
Balance (in shares) at Mar. 31, 2023     12,635,000    
Balance at Mar. 31, 2023 470,899 (866) $ 417,401 6,400 47,964
Balance (in shares) at Dec. 31, 2022     12,506,000    
Balance at Dec. 31, 2022 477,457 18,717 $ 404,799 5,977 47,964
Net income 213,455        
Comprehensive income from unconsolidated investment and other (16,472)        
Balance (in shares) at Sep. 30, 2023     12,635,000    
Balance at Sep. 30, 2023 503,327 2,245 $ 461,043 7,196 32,843
Balance (in shares) at Mar. 31, 2023     12,635,000    
Balance at Mar. 31, 2023 470,899 (866) $ 417,401 6,400 47,964
Net income [2] 70,334   68,927 1,407  
Distributions to common unitholders and the general partner (9,669)   (9,476) (193)  
Distributions to preferred unitholders (7,396)   (7,248) (148)  
Unit-based awards amortization and vesting, net 2,299   2,299    
Comprehensive income from unconsolidated investment and other 911 911      
Redemption of preferred units (27,618)   $ (27,065) (553)  
Balance (in shares) at Jun. 30, 2023     12,635,000    
Balance at Jun. 30, 2023 499,760 45 $ 444,838 6,913 47,964
Net income [3] 63,846   62,569 1,277  
Distributions to common unitholders and the general partner (9,669)   (9,475) (194)  
Distributions to preferred unitholders (4,437)   (4,349) (88)  
Unit-based awards amortization and vesting, net 2,318   2,318    
Warrant settlements (33,608)   (18,117) (370) (15,121)
Comprehensive income from unconsolidated investment and other 2,200 2,200      
Redemption of preferred units (17,083)   $ (16,741) (342)  
Balance (in shares) at Sep. 30, 2023     12,635,000    
Balance at Sep. 30, 2023 503,327 2,245 $ 461,043 7,196 32,843
Balance (in shares) at Dec. 31, 2023     12,635    
Balance at Dec. 31, 2023 531,054 (3,122) $ 503,076 8,005 23,095
Net income [4] 56,213 0 55,089 1,124 0
Distributions to common unitholders and the general partner (42,186) 0 (41,342) (844) 0
Distributions to preferred unitholders (2,150) 0 $ (2,107) (43) 0
Issuance of unit-based awards (in shares)     126    
Issuance of unit-based awards 0 0 $ 0 0 0
Unit-based awards amortization and vesting, net (3,971) 0 (3,971) 0 0
Capital contribution 227 0 $ 0 227 0
Warrant settlements (in shares)     199    
Warrant settlements (55,689) 0 $ (36,650) (748) (18,291)
Comprehensive income from unconsolidated investment and other 845 845 $ 0 0 0
Balance (in shares) at Mar. 31, 2024     12,960    
Balance at Mar. 31, 2024 484,343 (2,277) $ 474,095 7,721 4,804
Balance (in shares) at Dec. 31, 2023     12,635    
Balance at Dec. 31, 2023 531,054 (3,122) $ 503,076 8,005 23,095
Net income 140,872        
Comprehensive income from unconsolidated investment and other 2,166        
Balance (in shares) at Sep. 30, 2024     13,049    
Balance at Sep. 30, 2024 517,193 (956) $ 509,258 8,891 0
Balance (in shares) at Mar. 31, 2024     12,960    
Balance at Mar. 31, 2024 484,343 (2,277) $ 474,095 7,721 4,804
Net income [5] 46,064 0 45,142 922 0
Distributions to common unitholders and the general partner (9,987) 0 (9,787) (200) 0
Distributions to preferred unitholders (2,643) 0 (2,590) (53) 0
Unit-based awards amortization and vesting, net 2,502 0 2,502 0 0
Capital contribution 555 0 $ 0 555 0
Warrant settlements (in shares)     89    
Warrant settlements (10,000) 0 $ (5,092) (104) (4,804)
Comprehensive income from unconsolidated investment and other 1,239 1,239 0 0 0
Redemption of preferred units (13,666) 0 $ (13,393) (273) 0
Balance (in shares) at Jun. 30, 2024     13,049    
Balance at Jun. 30, 2024 498,407 (1,038) $ 490,877 8,568 0
Net income [6] 38,595 0 37,824 771 0
Distributions to common unitholders and the general partner (9,986) 0 (9,787) (199) 0
Distributions to preferred unitholders (1,605) 0 (1,573) (32) 0
Unit-based awards amortization and vesting, net 2,519 0 2,519 0 0
Comprehensive income from unconsolidated investment and other 82 82 0 0 0
Redemption of preferred units (10,819) 0 $ (10,602) (217) 0
Balance (in shares) at Sep. 30, 2024     13,049    
Balance at Sep. 30, 2024 $ 517,193 $ (956) $ 509,258 $ 8,891 $ 0
[1] Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[2] Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[3] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[4] Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner.
[5] Net income includes $1.44 million of income attributable to preferred unitholders that accumulated during the period, of which $1.41 million is allocated to the common unitholders and $0.03 million is allocated to the general partner.
[6] Net income includes $0.66 million of income attributable to preferred unitholders that accumulated during the period, of which $0.64 million is allocated to the common unitholders and $0.01 million is allocated to the general partner.
v3.24.3
Consolidated Statements of Partners' Capital (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
3 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Allocation to unitholders $ 655 $ 1,440 $ 2,150 $ 2,936 $ 4,970 $ 6,660
Allocation to unitholders 655 1,440 2,150 2,936 4,970 6,660
Limited Partner [Member]            
Allocation to unitholders 640 1,410 2,110 2,880 4,870 6,530
Allocation to unitholders 640 1,410 2,110 2,880 4,870 6,530
General Partner [Member]            
Allocation to unitholders 10 30 40 60 100 130
Allocation to unitholders $ 10 $ 30 $ 40 $ 60 $ 100 $ 130
v3.24.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities    
Net income $ 140,872 $ 213,455
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 12,708 12,469
Distributions from unconsolidated investment 28,114 66,140
Equity earnings from unconsolidated investment (17,204) (58,633)
Gain on asset sales and disposals (4,809) (955)
Asset impairments 87 132
Bad debt expense 538 813
Unit-based compensation expense 8,878 7,903
Amortization of debt issuance costs and other (2,603) 1,043
Change in operating assets and liabilities:    
Accounts receivable 5,711 4,090
Accounts payable 98 (850)
Accrued liabilities (5,917) (6,288)
Accrued interest 192 235
Deferred revenue 16,781 (4,963)
Other items, net (1,173) (1,399)
Net cash provided by operating activities 182,273 233,192
Cash flows from investing activities    
Proceeds from asset sales and disposals 4,809 961
Return of long-term contract receivable 1,979 1,830
Capital expenditures 0 (10)
Net cash provided by investing activities 6,788 2,781
Cash flows from financing activities    
Debt borrowings 152,850 215,034
Debt repayments (110,696) (176,061)
Redemption of preferred units (71,666) (178,334)
Warrant settlements (see Note 3) (65,689) (33,608)
Other items, net (6,392) (3,527)
Net cash used in financing activities (170,150) (256,653)
Net increase (decrease) in cash and cash equivalents 18,911 (20,680)
Cash and cash equivalents at beginning of period 11,989 39,091
Cash and cash equivalents at end of period 30,900 18,411
Supplemental cash flow information:    
Cash paid for interest 11,466 9,484
Common Unitholders And General Partner [Member]    
Cash flows from financing activities    
Distributions to unitholders (62,159) (60,238)
Preferred Partner [Member]    
Cash flows from financing activities    
Distributions to unitholders $ (6,398) $ (19,919)
v3.24.3
Note 1 - Basis of Presentation
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Basis of Presentation and Significant Accounting Policies [Text Block]

1.    Basis of Presentation

 

Nature of Business

 

Natural Resource Partners L.P. (the "Partnership") engages principally in the business of owning, managing and leasing a diversified portfolio of mineral properties in the United States, including interests in coal and other natural resources and owns a non-controlling 49% interest in Sisecam Wyoming LLC ("Sisecam Wyoming"), a trona ore mining and soda ash production business. The Partnership is organized into two operating segments further described in Note 6. Segment Information. The Partnership’s operations are conducted through, and its operating assets are owned by, its subsidiaries. The Partnership owns its subsidiaries through one wholly owned operating company, NRP (Operating) LLC ("Opco"). As used in these Notes to Consolidated Financial Statements, the terms "NRP," "we," "us" and "our" refer to Natural Resource Partners L.P. and its subsidiaries, unless otherwise stated or indicated by context.

 

Principles of Consolidation and Reporting

 

The accompanying unaudited Consolidated Financial Statements of the Partnership have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements for the year ended December 31, 2023 and notes thereto included in the Partnership's Annual Report on Form 10-K, which was filed with the SEC on March 7, 2024. Reclassifications have been made to prior year amounts in the Consolidated Financial Statements to conform with current year presentation. These reclassifications had no impact on previously reported total assets, total liabilities, partners' capital, net income, or cash flows from operating, investing or financing activities.

 

Recently Issued Accounting Standard

 

In  November 2023, the FASB issued ASU No. 2023-07—Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The amendments in ASU 2023-07 improve reportable segment disclosure requirements, primarily through enhanced disclosures about segment expenses. The guidance is effective for annual periods beginning after  December 15, 2023 and quarterly periods beginning after December 15, 2024 and will be adopted retrospectively to all prior periods presented in the financial statements. NRP does not expect the adoption of ASU 2023-07 to have a material effect on its Consolidated Financial Statements.

 

v3.24.3
Note 2 - Revenues From Contracts With Customers
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

2.    Revenues from Contracts with Customers

 

The following table presents the Partnership's Mineral Rights segment revenues from contracts with customers by major source:

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Coal royalty revenues

  $ 37,605     $ 55,544     $ 124,108     $ 161,527  

Production lease minimum revenues

    437       850       1,773       2,025  

Minimum lease straight-line revenues

    4,117       4,464       12,414       13,414  

Carbon neutral initiative revenues

    (39 )     681       4,322       2,914  

Property tax revenues

    1,809       1,770       5,246       4,710  

Wheelage revenues

    2,072       2,385       7,082       9,538  

Coal overriding royalty revenues

    227       827       2,064       1,165  

Lease amendment revenues

    1,071       623       2,485       2,322  

Aggregates royalty revenues

    662       736       2,164       2,175  

Oil and gas royalty revenues

    1,317       324       6,956       5,126  

Other revenues

    1,127       329       1,956       895  

Royalty and other mineral rights revenues

  $ 50,405     $ 68,533     $ 170,570     $ 205,811  

Transportation and processing services revenues

    1,248       3,964       6,169       9,538  

Total Mineral Rights segment revenues from contracts with customers

  $ 51,653     $ 72,497     $ 176,739     $ 215,349  

 

The following table details the Partnership's Mineral Rights segment receivables and liabilities resulting from contracts with customers:

 

   

September 30,

   

December 31,

 

(In thousands)

 

2024

   

2023

 

Contract Assets

               

Accounts receivable, net

  $ 32,878     $ 37,206  

Other current assets, net (1)

    1,047       429  

Other long-term assets, net (2)

    1,725        
                 

Contract liabilities

               

Accounts payable (3)

  $ 114     $  

Current portion of deferred revenue

    5,823       4,599  

Deferred revenue

    53,912       38,356  
         
(1)

Other current assets, net includes short-term notes receivables from contracts with customers.

(2) Other long-term assets, net includes amounts prepaid by NRP related to override agreements from contracts with customers as well as long-term lease amendment fee receivables from contracts with customers.
(3) Accounts payable include override payments owed by NRP from contracts with customers.

 

The following table shows the activity related to the Partnership's Mineral Rights segment deferred revenue resulting from contracts with customers: 

 

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

 

Balance at beginning of period (current and non-current)

  $ 42,955     $ 46,437  

Increase due to minimums and lease amendment fees

    28,319       11,525  

Recognition of previously deferred revenue

    (11,539 )     (16,487 )

Balance at end of period (current and non-current)

  $ 59,735     $ 41,475  

 

The Partnership's non-cancelable annual minimum payments due under the lease terms of its coal and aggregates royalty contracts with customers are as follows as of  September 30, 2024 (in thousands): 

 

Lease Term (1)

 

Weighted Average Remaining Years

   

Annual Minimum Payments

 

0 - 5 years

    1.9     $ 14,949  

5 - 10 years

    5.5       18,222  

10+ years

    11.3       25,779  

Total

    7.1     $ 58,950  
         
(1)

Lease term does not include renewal periods.

 

v3.24.3
Note 3 - Class A Convertible Preferred Units and Warrants
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Preferred Stock [Text Block]

3.      Class A Convertible Preferred Units and Warrants

 

On March 2, 2017, NRP issued $250 million of Class A Convertible Preferred Units representing limited partner interests in NRP (the "preferred units") to certain entities controlled by funds affiliated with The Blackstone Group Inc. (collectively referred to as "Blackstone") and certain affiliates of GoldenTree Asset Management LP (collectively referred to as "GoldenTree") (together the "preferred purchasers") pursuant to a Preferred Unit and Warrant Purchase Agreement. NRP issued 250,000 preferred units to the preferred purchasers at a price of $1,000 per preferred unit (the "per unit purchase price"), less a 2.5% structuring and origination fee. The preferred units entitle the preferred purchasers to receive cumulative distributions at a rate of 12% of the purchase price per year, up to one half of which NRP may pay in additional preferred units (such additional preferred units, the "PIK units"). The preferred units have a perpetual term, unless converted or redeemed as described below. However, in 2024 all remaining preferred units were redeemed and none of the Partnership's preferred units remain outstanding.

 

NRP also issued two tranches of warrants (the "warrants") to purchase common units to the preferred purchasers (warrants to purchase 1.75 million common units with a strike price of $22.81 and warrants to purchase 2.25 million common units with a strike price of $34.00). The warrants may be exercised by the holders thereof at any time before the eighth anniversary of the closing date. Upon exercise of the warrants, NRP may, at its option, elect to settle the warrants in common units or cash, each on a net basis. However, in 2024 all remaining warrants were settled and none of the Partnership's warrants remain outstanding.

 

Accounting for the Preferred Units and Warrants

 

Classification

 

The preferred units are accounted for as temporary equity on NRP's Consolidated Balance Sheets due to certain contingent redemption rights that may be exercised at the election of preferred purchasers. The warrants are accounted for as equity on NRP's Consolidated Balance Sheets.

 

Initial Measurement

 

The net transaction price was allocated to the preferred units and warrants based on their relative fair values at inception date. NRP allocated the transaction issuance costs to the preferred units and warrants primarily on a pro-rata basis based on their relative inception date allocated values.

 

Subsequent Measurement

 

Preferred Units

 

During the three months ended September 30, 2024, the Partnership redeemed the remaining 31,666 preferred units for $31.7 million in cash. During the nine months ended September 30, 2024, the Partnership redeemed a total of 71,666 preferred units for $71.7 million in cash. During the nine months ended September 30, 2023, the Partnership redeemed a total of 178,334 preferred units for $178.3 million in cash. Of the originally issued 250,000 preferred units, no preferred units remain outstanding as of September 30, 2024 and 71,666 preferred units remained outstanding as of December 31, 2023. The preferred units had a $47.2 million carrying value included in class A convertible preferred units on the Partnership's Consolidated Balance Sheets at  December 31, 2023.

 

Warrants

 

During the nine months ended September 30, 2024, the Partnership settled a total of 1,540,000 warrants to purchase common units with a strike price of $34.00. On  January 29, 2024 (the  "January 2024 exercise date"), holders of the Partnership's warrants exercised 462,165 warrants at a strike price of $34.00. The Partnership settled the warrants on a net basis with $10.0 million in cash and 198,767 common units. The 15-day VWAP ending on the business day prior to the  January 2024 exercise date was $97.62. On  February 7, 2024 (the  "February 7, 2024 exercise date"), holders of the Partnership's warrants exercised 128,750 warrants at a strike price of $34.00. The Partnership settled the warrants on a net basis with $8.0 million in cash. The 15-day VWAP ending on the business day prior to the  February 7, 2024 exercise date was $96.29. On  February 8, 2024 (the  "February 8, 2024 exercise date"), holders of the Partnership's warrants exercised 128,750 warrants at a strike price of $34.00. The 15-day VWAP ending on the business day prior to the  February 8, 2024 exercise date was $95.63. The Partnership settled these warrants on a net basis with $7.9 million in cash. On  February 14, 2024 (the  "February 14, 2024 exercise date"), holders of the Partnership's warrants exercised 500,000 warrants at a strike price of $34.00. The 15-day VWAP ending on the business day prior to the  February 14, 2024 exercise date was $93.47. The Partnership settled these warrants on a net basis with $29.7 million in cash. In April 2024 (the "April 2024 exercise date"), holders of the Partnership's warrants exercised 320,335 warrants at a strike price of $34.00. The Partnership settled the warrants on a net basis with $10.0 million in cash and 89,059 common units. The 15-day VWAP ending on the business day prior to the April 2024 exercise date was $90.33.

 

On September 18, 2023, the Partnership negotiated a transaction with holders of the Partnership's warrants pursuant to which the Partnership repurchased and retired an aggregate of 752,500 warrants with an exercise price of $22.81 and 60,000 warrants with an exercise price of $34.00 for approximately $33.6 million in cash.

 

Of the originally issued 4,000,000 warrants, no warrants remain outstanding as of September 30, 2024 and 1,540,000 warrants to purchase common units with a strike price of $34.00 were outstanding as of  December 31, 2023. These warrants had a carrying value of $23.1 million included in warrant holders' interest within partners' capital on the Partnership's Consolidated Balance Sheets at December 31, 2023

 

Embedded Features

 

Certain embedded features within the preferred unit and warrant purchase agreement were accounted for at fair value and were remeasured each quarter. See Note 10. Fair Value Measurements for further information regarding valuation of these embedded derivatives.

 

v3.24.3
Note 4 - Common and Preferred Unit Distributions
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Partners' Capital Notes Disclosure [Text Block]

4.    Common and Preferred Unit Distributions

 

The Partnership makes cash distributions to common and preferred unitholders on a quarterly basis, subject to approval by the Board of Directors of GP Natural Resource Partners LLC (the "Board of Directors"). NRP recognizes both common unit and preferred unit distributions on the date the distribution is declared.

 

Distributions made on the common units and the general partner's general partner ("GP") interest are made on a pro-rata basis in accordance with their relative percentage interests in the Partnership. The general partner is entitled to receive 2% of such distributions.

 

Income available to common unitholders and the general partner is reduced by preferred unit distributions that accumulated during the period. NRP reduced net income available to common unitholders and the general partner by $0.7 million and $2.9 million during the three months ended September 30, 2024 and 2023, respectively, and $4.2 million and $14.6 million during the nine months ended September 30, 2024 and 2023, respectively, as a result of accumulated preferred unit distributions earned during the period. Income available to common unitholders and the general partner is also reduced by the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units. As such, NRP reduced net income available to common unitholders and the general partner by $10.8 million and $24.5 million during the three and nine months ended September 30, 2024, and $17.1 million and $60.9 million during the three and nine months ended September 30, 2023, respectively.

 

The following table shows the cash distributions declared and paid to common and preferred unitholders during the nine months ended September 30, 2024 and 2023, respectively:

 

                                     
       

Common Units

   

Preferred Units

 

Month Paid

 

Period Covered by Distribution

  Distribution per Unit     Total Distribution (1) (In thousands)     Distribution per Unit     Total Distribution (In thousands)  

2024

                                   

February

 

October 1 - December 31, 2023

  $ 0.75     $ 9,918     $ 30.00     $ 2,150  

March (2)

 

Special Distribution

    2.44       32,268              

May

 

January 1 - March 31, 2024

    0.75       9,987       30.00       2,150  

May (3)

 

April 1 - May 8, 2024

                12.33       493  

August

 

April 1 - June 30, 2024

    0.75       9,986       30.00       950  

September (4)

 

July 1 - September 3, 2024

                20.68       655  
                                     

2023

                                   

February

 

October 1 - December 31, 2022

  $ 0.75     $ 9,571     $ 30.00     $ 7,500  

February (5)

 

January 1 - February 8, 2023

                12.33       586  

March (6)

 

Special Distribution

    2.43       31,329              

May

 

January 1 - March 31, 2023

    0.75       9,669       30.00       6,075  

May (7)

 

April 1 - May 5, 2023

                11.33       406  

June (8)

 

April 1 - June 2, 2023

                20.33       915  

August

 

April 1 - June 30, 2023

    0.75       9,669       30.00       3,650  

August (9)

 

July 1 - August 8, 2023

                12.33       432  

September (10)

 

July 1 - September 12, 2023

                23.67       355  
         
(1)

Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest.

(2) Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2023.
(3) Relates to accrued distribution paid upon the redemption of 40,000 preferred units in May 2024.
(4) Related to accrued distribution paid upon the redemption of 31,666 preferred units in September 2024. 
(5) Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023.
(6) Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.
(7) Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023.
(8) Relates to accrued distribution paid upon redemption of 45,000 preferred units in June 2023. 
(9) Related to accrued distribution paid upon redemption of 35,000 preferred units in August 2023.
(10) Related to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023. 

 

v3.24.3
Note 5 - Net Income Per Common Unit
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Earnings Per Share [Text Block]

5.    Net Income Per Common Unit 

 

Basic net income per common unit is computed by dividing net income, after considering income attributable to preferred unitholders, the difference between the fair value of the consideration paid upon redemption and the carrying value of the preferred units, and the general partner’s general partner interest, by the weighted average number of common units outstanding. Diluted net income per common unit includes the effect of NRP's preferred units, warrants, and unvested unit-based awards if the inclusion of these items is dilutive.

 

The dilutive effect of the preferred units is calculated using the if-converted method. Under the if-converted method, the preferred units are assumed to be converted at the beginning of the period, and the resulting common units are included in the denominator of the diluted net income per unit calculation for the period being presented. Distributions declared in the period and undeclared distributions on the preferred units that accumulated during the period are added back to the numerator for purposes of the if-converted calculation. The calculation of diluted net income per common unit for the nine months ended September 30, 2024 and the three and nine months ended September 30, 2023 includes the assumed conversion of the remaining preferred units during the period. The calculation of diluted net income per common unit for the three months ended September 30, 2024 does not include the assumed conversion of any remaining preferred units as all preferred units were redeemed as of September 30, 2024. The calculation of diluted net income per common units for the three and nine months ended September 30, 2024 and 2023 does not include the assumed conversion of the preferred units that were redeemed during the periods as the inclusion of these units would be anti-dilutive.

 

The dilutive effect of the warrants is calculated using the treasury stock method, which assumes that the proceeds from the exercise of these instruments are used to purchase common units at the average market price for the period. The calculation of diluted net income per common unit for the nine months ended September 30, 2024 includes the net settlement of the warrants for the period during which they were outstanding. The dilutive effect of the warrants was not factored into the calculation of diluted net income per common unit for the three months ended September 30, 2024 as these were fully settled as of June 30, 2024. The calculation of diluted net income per common unit for the three and nine months ended September 30, 2023 includes the net settlement of the warrants for the period during which they were outstanding.

 

The following table reconciles the numerator and denominator of the basic and diluted net income per common unit computations and calculates basic and diluted net income per common unit: 

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands, except per unit data)

 

2024

   

2023

   

2024

   

2023

 

Basic net income per common unit

                               

Net income attributable to common unitholders

  $ 26,578     $ 42,951     $ 109,896     $ 135,199  

Weighted average common units—basic

    13,049       12,635       12,971       12,613  

Basic net income per common unit

  $ 2.04     $ 3.40     $ 8.47     $ 10.72  
                                 

Diluted net income per common unit

                               

Weighted average common units—basic

    13,049       12,635       12,971       12,613  

Plus: dilutive effect of preferred units

          1,104       375       2,434  

Plus: dilutive effect of warrants

          1,492       186       1,296  

Plus: dilutive effect of unvested unit-based awards

    222       240       229       190  

Weighted average common units—diluted

    13,271       15,471       13,761       16,533  
                                 

Net income

  $ 38,595     $ 63,846     $ 140,872     $ 213,455  

Less: income attributable to preferred unitholders

    (655 )     (786 )     (1,148 )     (2,693 )

Less: redemption of preferred units

    (10,819 )     (17,083 )     (24,485 )     (60,929 )

Diluted net income attributable to common unitholders and the general partner

  $ 27,121     $ 45,977     $ 115,239     $ 149,833  

Less: diluted net income attributable to the general partner

    (543 )     (920 )     (2,305 )     (2,997 )

Diluted net income attributable to common unitholders

  $ 26,578     $ 45,057     $ 112,934     $ 146,836  
                                 

Diluted net income per common unit

  $ 2.00     $ 2.91     $ 8.21     $ 8.88  

 

v3.24.3
Note 6 - Segment Information
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

6.    Segment Information

 

The Partnership's segments are strategic business units that offer distinct products and services to different customers in different geographies within the U.S. and that are managed accordingly. NRP has the following two operating segments:

 

Mineral Rights—consists of mineral interests and other subsurface rights across the United States. NRP's ownership provides critical inputs for the manufacturing of steel, electricity and basic building materials, as well as opportunities for carbon sequestration and renewable energy. The Partnership is working to strategically redefine its business as a key player in the transitional energy economy in the years to come.

 

Soda Ash—consists of the Partnership's 49% non-controlling equity interest in Sisecam Wyoming, a trona ore mining operation and soda ash refinery in the Green River Basin of Wyoming. Sisecam Wyoming mines trona and processes it into soda ash that is sold both domestically and internationally to the glass and chemicals industries.

 

Direct segment costs and certain other costs incurred at the corporate level that are identifiable and that benefit the Partnership's segments are allocated to the operating segments accordingly. These allocated costs generally include salaries and benefits, insurance, property taxes, legal, royalty, information technology and shared facilities services and are included in operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Corporate and Financing includes functional corporate departments that do not earn revenues. Costs incurred by these departments include interest and financing, corporate headquarters and overhead, centralized treasury, legal and accounting and other corporate-level activity not specifically allocated to a segment and are included in general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

The following table summarizes certain financial information for each of the Partnership's business segments:

 

   

Operating Segments

                 

(In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

For the Three Months Ended September 30, 2024

                               

Revenues

  $ 52,217     $     $     $ 52,217  

Equity in earnings of Sisecam Wyoming

          8,109             8,109  

Gain on asset sales and disposals

    1                   1  

Operating and maintenance expenses

    6,762       24             6,786  

Depreciation, depletion and amortization

    4,725             5       4,730  

General and administrative expenses

                5,935       5,935  

Asset impairments

    87                   87  

Interest expense, net

                4,194       4,194  

Net income (loss)

    40,644       8,085       (10,134 )     38,595  
                                 

For the Three Months Ended September 30, 2023

                               

Revenues

  $ 73,112     $     $     $ 73,112  

Equity in earnings of Sisecam Wyoming

          12,401             12,401  

Gain on asset sales and disposals

    854                   854  

Operating and maintenance expenses

    8,305       53             8,358  

Depreciation, depletion and amortization

    4,589             5       4,594  

General and administrative expenses

                5,669       5,669  

Asset impairments

    63                   63  

Interest expense, net

                3,837       3,837  

Net income (loss)

    61,009       12,348       (9,511 )     63,846  
                                 

For the Nine Months Ended September 30, 2024

                               

Revenues

  $ 180,268     $     $     $ 180,268  

Equity in earnings of Sisecam Wyoming

          17,204             17,204  

Gain on asset sales and disposals

    4,809                   4,809  

Operating and maintenance expenses

    18,279       112             18,391  

Depreciation, depletion and amortization

    12,694             14       12,708  

General and administrative expenses

                18,193       18,193  

Asset impairments

    87                   87  

Interest expense, net

                12,030       12,030  

Net income (loss)

    154,017       17,092       (30,237 )     140,872  
                                 

For the Nine Months Ended September 30, 2023

                               

Revenues

  $ 217,258     $     $     $ 217,258  

Equity in earnings of Sisecam Wyoming

          58,633             58,633  

Gain on asset sales and disposals

    955                   955  

Operating and maintenance expenses

    23,226       225             23,451  

Depreciation, depletion and amortization

    12,455             14       12,469  

General and administrative expenses

                17,157       17,157  

Asset impairments

    132                   132  

Interest expense, net

                10,182       10,182  

Net income (loss)

    182,400       58,408       (27,353 )     213,455  

 

v3.24.3
Note 7 - Equity Investment
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]

7.    Equity Investment 

 

The Partnership accounts for its 49% investment in Sisecam Wyoming using the equity method of accounting. Activity related to this investment is as follows: 

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Balance at beginning of period

  $ 265,935     $ 290,900     $ 276,549     $ 306,470  

Income allocation to NRP’s equity interests (1)

    9,315       13,608       20,718       62,184  

Amortization of basis difference

    (1,206 )     (1,207 )     (3,513 )     (3,551 )

Other comprehensive income (loss)

    82       2,200       2,166       (16,472 )

Distributions

    (6,320 )     (23,010 )     (28,114 )     (66,140 )

Balance at end of period

  $ 267,806     $ 282,491     $ 267,806     $ 282,491  
         
(1) Amounts reclassified into income out of accumulated other comprehensive loss were $1.5 million and $0.9 million for the three months ended September 30, 2024 and 2023, respectively and $4.5 million and $(17.4) million for the nine months ended September 30, 2024 and 2023, respectively. 

 

The following table represents summarized financial information for Sisecam Wyoming as derived from their respective unaudited financial statements for the three and nine months ended September 30, 2024 and 2023:

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Net sales

  $ 160,975     $ 180,232     $ 438,385     $ 588,725  

Gross profit

    25,976       34,454       64,584       148,063  

Net income

    19,009       27,772       42,281       126,906  

 

v3.24.3
Note 8 - Mineral Rights, Net
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Mineral Industries Disclosures [Text Block]

8.    Mineral Rights, Net

 

The Partnership’s mineral rights consist of the following:

 

   

September 30, 2024

   

December 31, 2023

 

(In thousands)

 

Carrying Value

   

Accumulated Depletion

   

Net Book Value

   

Carrying Value

   

Accumulated Depletion

   

Net Book Value

 

Coal properties

  $ 660,961     $ (296,781 )   $ 364,180     $ 661,256     $ (285,470 )   $ 375,786  

Aggregates properties

    8,655       (4,003 )     4,652       8,655       (3,761 )     4,894  

Oil and gas royalty properties

    12,354       (10,443 )     1,911       12,354       (10,082 )     2,272  

Other

    13,143       (1,612 )     11,531       13,143       (1,612 )     11,531  

Total mineral rights, net

  $ 695,113     $ (312,839 )   $ 382,274     $ 695,408     $ (300,925 )   $ 394,483  

 

Depletion expense related to the Partnership’s mineral rights is included in depreciation, depletion and amortization on its Consolidated Statements of Comprehensive Income and totaled $4.7 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively and $12.1 million and $11.6 million for the nine months ended September 30, 2024 and 2023, respectively.

 

During the nine months ended September 30, 2024, the Partnership recorded a gain $4.8 million, included in gain on asset sales and disposals on the Consolidated Statements of Comprehensive Income primarily related to a coal property condemnation in the second quarter of 2024. During the three and nine months ended September 30, 2023, the Partnership had $0.9 million and $1.0 million, respectively, included in gains on asset sales and disposals on the Consolidated Statements of Comprehensive Income.

 

The Partnership has developed procedures to evaluate its long-lived assets for possible impairment periodically or whenever events or changes in circumstances indicate an asset's net book value may not be recoverable. Potential events or circumstances include, but are not limited to, specific events such as a reduction in economically recoverable reserves or production ceasing on a property for an extended period. This analysis is based on historic, current and future performance and considers both quantitative and qualitative information. As a result of the Partnership's analyses, NRP recorded immaterial impairment expense during the three and nine months ended September 30, 2024 and 2023. 

 

v3.24.3
Note 9 - Debt, Net
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Debt Disclosure [Text Block]

9.    Debt, Net 

 

The Partnership's debt consists of the following:

 

  

September 30,

  

December 31,

 

(In thousands)

 

2024

  

2023

 

Opco Credit Facility

 $154,684  $95,834 

Opco Senior Notes

        

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

 $  $12,685 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

     4,012 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  34,262   34,262 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  8,732   8,732 

Total Opco Senior Notes

 $42,994  $59,691 

Total debt at face value

 $197,678  $155,525 

Net unamortized debt issuance costs

  (315)  (467)

Total debt, net

 $197,363  $155,058 

Less: current portion of long-term debt

  (14,226)  (30,785)

Total long-term debt, net

 $183,137  $124,273 

 

Opco Debt

 

All of Opco’s debt is guaranteed by its wholly owned subsidiaries and is secured by certain of the assets of Opco and its wholly owned subsidiaries, other than BRP LLC and NRP Trona LLC. As of September 30, 2024 and December 31, 2023, Opco was in compliance with the terms of the financial covenants contained in its debt agreements.

 

Opco Credit Facility

 

In May 2023, the Partnership entered into the Sixth Amendment (the "Sixth Amendment) to the Opco Credit Facility (the "Opco Credit Facility"). The Sixth Amendment maintained the term of the Opco Credit Facility until August 2027. Lender commitments under the Opco Credit Facility increased from $130.0 million to $155.0 million, with the ability to expand such commitments to $200.0 million with the addition of future commitments. In  February 2024, the Partnership exercised its option under the Opco Credit Facility to increase the total aggregate commitment under the Opco Credit Facility twice, initially by $30.0 million from $155.0 million to $185.0 million and subsequently by $15.0 million from $185.0 million to $200.0 million. These increases in the total aggregate commitment were made pursuant to an accordion feature of the Opco Credit Facility. In connection with the initial increase, a new lender joined the lending group with a commitment of $30.0 million. The Sixth Amendment also included modifications to Opco’s ability to declare and make certain restricted payments. The Opco Credit Facility contains financial covenants requiring Opco to maintain:

 

A leverage ratio of consolidated indebtedness to EBITDDA (in each case as defined in the Opco Credit Facility) not to exceed 3.0x As of September 30, 2024, this ratio was 0.8x; and

 

an interest coverage ratio of consolidated EBITDDA to the sum of consolidated interest expense and consolidated lease expense (in each case as defined in the Opco Credit Facility) of not less than 3.5 to 1.0. As of September 30, 2024, this ratio was 14.2x.

 

As of December 31, 2023, the Partnership had $95.8 million in borrowings outstanding under the Opco Credit Facility and $59.2 million of available borrowing capacity. During the nine months ended September 30, 2024, the Partnership borrowed $152.9 million and repaid $94.0 million, resulting in $154.7 million in borrowings outstanding under the Opco Credit Facility and $45.3 million of available borrowing capacity as of September 30, 2024. During the nine months ended September 30, 2023, the Partnership borrowed $215.0 million and repaid $157.0 million on the Opco Credit Facility. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2024 was 8.91% and 8.92%, respectively. The weighted average interest rate for the borrowings outstanding under the Opco Credit Facility for the three and nine months ended September 30, 2023 was 8.85% and 8.61%, respectively.  

 

The Opco Credit Facility is collateralized and secured by liens on certain of Opco’s assets with carrying values of $305.3 million and $316.3 million classified as mineral rights, net and other long-term assets, net and $24.2 million and $26.3 million classified as long-term contract receivable, net on the Partnership’s Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, respectively.

 

Opco Senior Notes   

 

Opco issued several series of private placement senior notes (the "Opco Senior Notes") with various interest rates and principal due dates. As of September 30, 2024, only the 5.03% and 5.18% Opco Senior Notes, both due December 2026, remain outstanding. These Opco Senior Notes have principal due annually in December and interest due semi-annually in June and December. As of September 30, 2024 and December 31, 2023, the Opco Senior Notes had cumulative principal balances of $43.0 million and $59.7 million, respectively. Opco made mandatory principal payments of $16.7 and $19.1 million during the nine months ended September 30, 2024 and 2023, respectively. 

 

v3.24.3
Note 10 - Fair Value Measurements
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

10.    Fair Value Measurements 

 

Fair Value of Financial Assets and Liabilities

 

The Partnership’s financial assets and liabilities consist of cash and cash equivalents, a contract receivable and debt. The carrying amounts reported on the Consolidated Balance Sheets for cash and cash equivalents approximate fair value due to their short-term nature. The Partnership uses available market data and valuation methodologies to estimate the fair value of its debt and contract receivable.

 

The following table shows the carrying value and estimated fair value of the Partnership's debt and contract receivable:

 

      

September 30, 2024

  

December 31, 2023

 
  

Fair Value

  

Carrying

  

Estimated

  

Carrying

  

Estimated

 

(In thousands)

 

Hierarchy Level

  

Value

  

Fair Value

  

Value

  

Fair Value

 

Debt:

                    

Opco Senior Notes (1)

  3  $42,679  $40,992  $59,224  $56,533 

Opco Credit Facility (2)

  3   154,684   154,684   95,834   95,384 
                     

Assets:

                    

Contract receivable, net (current and long-term) (3)

  3  $26,997  $23,223  $28,946  $24,492 
     
(1)The fair value of the Opco Senior Notes was estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit Facility. 
(2)The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay the debt at any time without penalty.
(3)The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at September 30, 2024 and December 31, 2023.

 

NRP had embedded derivatives in the preferred units related to certain conversion options, redemption features and the change of control provision that were accounted for separately from the preferred units as assets and liabilities at fair value on the Partnership's Consolidated Balance Sheets. Level 3 valuation of the embedded derivatives were based on numerous factors including the likelihood of the event occurring. The embedded derivatives were revalued quarterly and changes in their fair value would be recorded in other expenses, net on the Partnership's Consolidated Statements of Comprehensive Income. The embedded derivatives had zero value as of   December 31, 2023. As a result of the redemption of all of the Partnership's remaining preferred units in September 2024, NRP no longer has embedded derivatives associated with preferred units as of September 30, 2024. 

v3.24.3
Note 11 - Related Party Transactions
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

11.    Related Party Transactions

 

Affiliates of our General Partner

 

The Partnership’s general partner does not receive any management fee or other compensation for its management of NRP. However, in accordance with the partnership agreement, the general partner and its affiliates are reimbursed for services provided to the Partnership and for expenses incurred on the Partnership’s behalf. Employees of Quintana Minerals Corporation ("QMC") and Western Pocahontas Properties Limited Partnership ("WPPLP"), affiliates of the Partnership, provide their services to manage the Partnership's business. QMC and WPPLP charge the Partnership the portion of their employee salary and benefits costs related to their employee services provided to NRP. These QMC and WPPLP employee management service costs are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income. NRP also reimburses overhead costs incurred by its affiliates, and other related parties, to manage the Partnership's business. These overhead costs include certain rent, information technology, administration of employee benefits and other corporate services incurred by or on behalf of the Partnership’s general partner and its affiliates and are presented as operating and maintenance expenses and general and administrative expenses on the Partnership's Consolidated Statements of Comprehensive Income.

 

Related party general and administrative expenses included on the Partnership's Consolidated Statement of Comprehensive Income are as follows:

 

  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

  

2023

  

2024

  

2023

 

Operating and maintenance expenses

 $2,014  $1,663  $5,483  $5,094 

General and administrative expenses

  1,296   1,287   4,117   3,860 

 

The Partnership had accounts payable to related parties of $0.6 million on its Consolidated Balance Sheets at both  September 30, 2024 and December 31, 2023. The Partnership had other current assets of $0.1 million on its Consolidated Balance Sheets related to a related party prepaid expense at both  September 30, 2024 and  December 31, 2023.

 

As a result of its office lease with WPPLP, the Partnership has a right-of-use asset and lease liability of $3.4 million and $3.5 million included in other long-term assets, net and other non-current liabilities, respectively on its Consolidated Balance Sheets at September 30, 2024 and December 31, 2023, respectively.

 

During the three months ended September 30, 2024 and 2023, the Partnership recognized $0.01 million and $1.1 million, respectively, in operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to an overriding royalty agreement with WPPLP. These amounts were $0.05 million and $5.1 million during the nine months ended September 30, 2024 and 2023, respectively. At September 30, 2024 and December 31, 2023 the Partnership had $0.5 million and $0.0 million, respectively, of other long-term assets, net on its Consolidated Balance Sheets related to a prepaid royalty for this agreement.

 

v3.24.3
Note 12 - Major Customers
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]

12.    Major Customers 

 

Revenues from customers that exceeded 10 percent of total revenues for any of the periods presented below are as follows:

 

   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 
   

2024

   

2023

   

2024

   

2023

 

(In thousands)

 

Revenues

   

Percent

   

Revenues

   

Percent

   

Revenues

   

Percent

   

Revenues

   

Percent

 

Alpha Metallurgical Resources, Inc. (1)

  $ 14,556       28 %   $ 17,219       20 %   $ 53,345       30 %   $ 61,122       22 %

Foresight Energy Resources LLC ("Foresight") (1)

  $ 7,421       14 %   $ 18,600       22 %   $ 30,003       17 %   $ 43,453       16 %

Alabama Kanu Holdings, LLC (1) (2)

  $ 7,143       14 %   $ 8,892       10 %   $ 21,344       12 %   $ 24,962       9 %
         

(1)

Revenues from Alpha Metallurgical Resources, Inc., Foresight and Alabama Kanu Holdings, LLC are included within the Partnership's Mineral Rights segment.

(2) Alabama Kanu Holdings, LLC purchased Hatfield Metallurgical Holdings, LLC in August 2024.

 

v3.24.3
Note 13 - Commitments and Contingencies
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

13.    Commitments and Contingencies

 

NRP is involved, from time to time, in various legal proceedings arising in the ordinary course of business. While the ultimate results of these proceedings cannot be predicted with certainty, Partnership management believes these ordinary course matters will not have a material effect on the Partnership’s financial position, liquidity or operations.

v3.24.3
Note 14 - Unit-based Compensation
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

14.    Unit-Based Compensation

 

During the nine months ended September 30, 2024 and 2023, the Partnership granted service, performance and market-based awards under its 2017 Long-Term Incentive Plan. The Partnership's service and performance-based awards are valued using the closing price of NRP's common units as of the grant date while the Partnership's market-based awards are valued using a Monte Carlo simulation. The grant date fair value of the awards granted during nine months ended September 30, 2024 and 2023 was $6.7 million and $16.0 million, respectively, which included a grant date fair value of $2.5 and $2.8 million for the market-based awards valued using a Monte Carlo simulation during the nine months ended September 30, 2024 and 2023, respectively. Total unit-based compensation expense associated with these awards was $3.0 million and $2.7 million for the three months ended September 30, 2024 and 2023, respectively, and $8.9 million and $7.9 million for the nine months ended September 30, 2024 and 2023, respectfully, and is included in general and administrative expenses and operating and maintenance expenses on the Partnership's Consolidated Statements of Comprehensive Income. The unamortized cost associated with unvested outstanding awards as of September 30, 2024 was $12.4 million, which will be recognized over a weighted average period of 1.6 years. The unamortized cost associated with unvested outstanding awards as of  December 31, 2023 was $13.3 million.

 

A summary of the unit activity in the outstanding grants during 2024 is as follows:

 

(In thousands)

 

Common Units

   

Weighted Average Grant Date Fair Value per Common Unit

 

Outstanding at January 1, 2024

    483     $ 46.21  

Granted

    65     $ 103.50  

Fully vested and issued

    (197 )   $ 38.76  

Forfeitures

    (1 )   $ 90.70  

Outstanding at September 30, 2024

    350     $ 60.81  

 

v3.24.3
Note 15 - Financing Transaction
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Financing Receivables [Text Block]

15.    Financing Transaction

 

The Partnership owns rail loadout and associated infrastructure at the Sugar Camp mine in the Illinois Basin operated by a subsidiary of Foresight. The infrastructure at the Sugar Camp mine is leased to a subsidiary of Foresight and is accounted for as a financing transaction (the "Sugar Camp lease"). The Sugar Camp lease expires in 2032 with renewal options for up to 80 additional years. Minimum payments are $5.0 million per year through the end of the current lease term. The Partnership is also entitled to variable payments in the form of throughput fees based on the amount of coal transported and processed utilizing the Partnership's assets. In the event the Sugar Camp lease is renewed beyond 2032, payments become a fixed ten thousand dollars per year for the remainder of the renewed term.

v3.24.3
Note 16 - Credit Losses
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Credit Loss, Financial Instrument [Text Block]

16.    Credit Losses

 

The Partnership is exposed to credit losses through collection of its short-term trade receivables resulting from contracts with customers and a long-term receivable resulting from a financing transaction with a customer. The Partnership records an allowance for current expected credit losses on these receivables based on the loss-rate method. NRP assessed the likelihood of collection of its receivables utilizing historical loss rates, current market conditions, industry and macroeconomic factors, reasonable and supportable forecasts and facts or circumstances of individual customers and properties. Examples of these facts or circumstances include, but are not limited to, contract disputes or renegotiations with the customer and evaluation of short and long-term economic viability of the contracted property. For its long-term contract receivable, management reverts to the historical loss experience immediately after the reasonable and supportable forecast period ends.

 

As of September 30, 2024 and December 31, 2023, NRP had the following current expected credit loss (“CECL”) allowance related to its receivables and long-term contract receivable:

 

   

September 30, 2024

   

December 31, 2023

 

(In thousands)

 

Gross

   

CECL Allowance

   

Net

   

Gross

   

CECL Allowance

   

Net

 

Receivables

  $ 44,356     $ (5,583 )   $ 38,773     $ 47,170     $ (5,655 )   $ 41,515  

Long-term contract receivable

    25,081       (869 )     24,212       27,265       (944 )     26,321  

Total

  $ 69,437     $ (6,452 )   $ 62,985     $ 74,435     $ (6,599 )   $ 67,836  

 

NRP recorded $0.7 million and $1.6 million of operating and maintenance expenses on its Consolidated Statements of Comprehensive Income related to the change in the CECL allowance during the three months ended September 30, 2024 and 2023, respectively, and a reversal of $0.1 million and $0.8 million of operating and maintenance expenses during the nine months ended September 30, 2024 and 2023, respectively. The Partnership charged an additional $0.4 million and $0.7 million in bad debt expense towards the allowance for doubtful accounts during the three and nine months ended September 30, 2024, respectively. 

 

NRP has procedures in place to monitor its ongoing credit exposure through timely review of counterparty balances against contract terms and due dates, account and financing receivable reconciliation, bankruptcy monitoring, lessee audits and dispute resolution. The Partnership may employ legal counsel or collection specialists to pursue recovery of defaulted receivables.

v3.24.3
Note 17 - Subsequent Events
9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Subsequent Events [Text Block]

17.    Subsequent Events

 

The following represents material events that have occurred subsequent to September 30, 2024 through the time of the Partnership’s filing of its Quarterly Report on Form 10-Q with the SEC:

 

Opco Credit Facility Amendment

 

In October 2024, NRP entered into the Seventh Amendment to the Opco Credit Facility which extended the maturity from August 2027 to October 2029. The Seventh Amendment also removed reference to the preferred units and warrants, which are no longer outstanding, and includes modifications to Opco's ability to declare and make certain restricted payments.

 

Common Unit and Preferred Unit Distributions

 

In November 2024, the Board of Directors declared a distribution of $0.75 per common unit with respect to the third quarter of 2024

 

 

 

v3.24.3
Insider Trading Arrangements
9 Months Ended
Sep. 30, 2024
Insider Trading Arr Line Items  
Material Terms of Trading Arrangement [Text Block]

ITEM 5. OTHER INFORMATION

 

None.

Rule 10b5-1 Arrangement Adopted [Flag] false
Non-Rule 10b5-1 Arrangement Adopted [Flag] false
Rule 10b5-1 Arrangement Terminated [Flag] false
Non-Rule 10b5-1 Arrangement Terminated [Flag] false
v3.24.3
Note 2 - Revenues From Contracts With Customers (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Disaggregation of Revenue [Table Text Block]
   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Coal royalty revenues

  $ 37,605     $ 55,544     $ 124,108     $ 161,527  

Production lease minimum revenues

    437       850       1,773       2,025  

Minimum lease straight-line revenues

    4,117       4,464       12,414       13,414  

Carbon neutral initiative revenues

    (39 )     681       4,322       2,914  

Property tax revenues

    1,809       1,770       5,246       4,710  

Wheelage revenues

    2,072       2,385       7,082       9,538  

Coal overriding royalty revenues

    227       827       2,064       1,165  

Lease amendment revenues

    1,071       623       2,485       2,322  

Aggregates royalty revenues

    662       736       2,164       2,175  

Oil and gas royalty revenues

    1,317       324       6,956       5,126  

Other revenues

    1,127       329       1,956       895  

Royalty and other mineral rights revenues

  $ 50,405     $ 68,533     $ 170,570     $ 205,811  

Transportation and processing services revenues

    1,248       3,964       6,169       9,538  

Total Mineral Rights segment revenues from contracts with customers

  $ 51,653     $ 72,497     $ 176,739     $ 215,349  
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]
   

September 30,

   

December 31,

 

(In thousands)

 

2024

   

2023

 

Contract Assets

               

Accounts receivable, net

  $ 32,878     $ 37,206  

Other current assets, net (1)

    1,047       429  

Other long-term assets, net (2)

    1,725        
                 

Contract liabilities

               

Accounts payable (3)

  $ 114     $  

Current portion of deferred revenue

    5,823       4,599  

Deferred revenue

    53,912       38,356  
   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

 

Balance at beginning of period (current and non-current)

  $ 42,955     $ 46,437  

Increase due to minimums and lease amendment fees

    28,319       11,525  

Recognition of previously deferred revenue

    (11,539 )     (16,487 )

Balance at end of period (current and non-current)

  $ 59,735     $ 41,475  
Lessor, Operating Lease, Payment to be Received, Maturity [Table Text Block]

Lease Term (1)

 

Weighted Average Remaining Years

   

Annual Minimum Payments

 

0 - 5 years

    1.9     $ 14,949  

5 - 10 years

    5.5       18,222  

10+ years

    11.3       25,779  

Total

    7.1     $ 58,950  
v3.24.3
Note 4 - Common and Preferred Unit Distributions (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Distributions Made to Limited Partner, by Distribution [Table Text Block]
                                     
       

Common Units

   

Preferred Units

 

Month Paid

 

Period Covered by Distribution

  Distribution per Unit     Total Distribution (1) (In thousands)     Distribution per Unit     Total Distribution (In thousands)  

2024

                                   

February

 

October 1 - December 31, 2023

  $ 0.75     $ 9,918     $ 30.00     $ 2,150  

March (2)

 

Special Distribution

    2.44       32,268              

May

 

January 1 - March 31, 2024

    0.75       9,987       30.00       2,150  

May (3)

 

April 1 - May 8, 2024

                12.33       493  

August

 

April 1 - June 30, 2024

    0.75       9,986       30.00       950  

September (4)

 

July 1 - September 3, 2024

                20.68       655  
                                     

2023

                                   

February

 

October 1 - December 31, 2022

  $ 0.75     $ 9,571     $ 30.00     $ 7,500  

February (5)

 

January 1 - February 8, 2023

                12.33       586  

March (6)

 

Special Distribution

    2.43       31,329              

May

 

January 1 - March 31, 2023

    0.75       9,669       30.00       6,075  

May (7)

 

April 1 - May 5, 2023

                11.33       406  

June (8)

 

April 1 - June 2, 2023

                20.33       915  

August

 

April 1 - June 30, 2023

    0.75       9,669       30.00       3,650  

August (9)

 

July 1 - August 8, 2023

                12.33       432  

September (10)

 

July 1 - September 12, 2023

                23.67       355  
v3.24.3
Note 5 - Net Income Per Common Unit (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands, except per unit data)

 

2024

   

2023

   

2024

   

2023

 

Basic net income per common unit

                               

Net income attributable to common unitholders

  $ 26,578     $ 42,951     $ 109,896     $ 135,199  

Weighted average common units—basic

    13,049       12,635       12,971       12,613  

Basic net income per common unit

  $ 2.04     $ 3.40     $ 8.47     $ 10.72  
                                 

Diluted net income per common unit

                               

Weighted average common units—basic

    13,049       12,635       12,971       12,613  

Plus: dilutive effect of preferred units

          1,104       375       2,434  

Plus: dilutive effect of warrants

          1,492       186       1,296  

Plus: dilutive effect of unvested unit-based awards

    222       240       229       190  

Weighted average common units—diluted

    13,271       15,471       13,761       16,533  
                                 

Net income

  $ 38,595     $ 63,846     $ 140,872     $ 213,455  

Less: income attributable to preferred unitholders

    (655 )     (786 )     (1,148 )     (2,693 )

Less: redemption of preferred units

    (10,819 )     (17,083 )     (24,485 )     (60,929 )

Diluted net income attributable to common unitholders and the general partner

  $ 27,121     $ 45,977     $ 115,239     $ 149,833  

Less: diluted net income attributable to the general partner

    (543 )     (920 )     (2,305 )     (2,997 )

Diluted net income attributable to common unitholders

  $ 26,578     $ 45,057     $ 112,934     $ 146,836  
                                 

Diluted net income per common unit

  $ 2.00     $ 2.91     $ 8.21     $ 8.88  
v3.24.3
Note 6 - Segment Information (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Segment Reporting Information, by Segment [Table Text Block]
   

Operating Segments

                 

(In thousands)

 

Mineral Rights

   

Soda Ash

   

Corporate and Financing

   

Total

 

For the Three Months Ended September 30, 2024

                               

Revenues

  $ 52,217     $     $     $ 52,217  

Equity in earnings of Sisecam Wyoming

          8,109             8,109  

Gain on asset sales and disposals

    1                   1  

Operating and maintenance expenses

    6,762       24             6,786  

Depreciation, depletion and amortization

    4,725             5       4,730  

General and administrative expenses

                5,935       5,935  

Asset impairments

    87                   87  

Interest expense, net

                4,194       4,194  

Net income (loss)

    40,644       8,085       (10,134 )     38,595  
                                 

For the Three Months Ended September 30, 2023

                               

Revenues

  $ 73,112     $     $     $ 73,112  

Equity in earnings of Sisecam Wyoming

          12,401             12,401  

Gain on asset sales and disposals

    854                   854  

Operating and maintenance expenses

    8,305       53             8,358  

Depreciation, depletion and amortization

    4,589             5       4,594  

General and administrative expenses

                5,669       5,669  

Asset impairments

    63                   63  

Interest expense, net

                3,837       3,837  

Net income (loss)

    61,009       12,348       (9,511 )     63,846  
                                 

For the Nine Months Ended September 30, 2024

                               

Revenues

  $ 180,268     $     $     $ 180,268  

Equity in earnings of Sisecam Wyoming

          17,204             17,204  

Gain on asset sales and disposals

    4,809                   4,809  

Operating and maintenance expenses

    18,279       112             18,391  

Depreciation, depletion and amortization

    12,694             14       12,708  

General and administrative expenses

                18,193       18,193  

Asset impairments

    87                   87  

Interest expense, net

                12,030       12,030  

Net income (loss)

    154,017       17,092       (30,237 )     140,872  
                                 

For the Nine Months Ended September 30, 2023

                               

Revenues

  $ 217,258     $     $     $ 217,258  

Equity in earnings of Sisecam Wyoming

          58,633             58,633  

Gain on asset sales and disposals

    955                   955  

Operating and maintenance expenses

    23,226       225             23,451  

Depreciation, depletion and amortization

    12,455             14       12,469  

General and administrative expenses

                17,157       17,157  

Asset impairments

    132                   132  

Interest expense, net

                10,182       10,182  

Net income (loss)

    182,400       58,408       (27,353 )     213,455  
v3.24.3
Note 7 - Equity Investment (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Equity Method Investments [Table Text Block]
   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Balance at beginning of period

  $ 265,935     $ 290,900     $ 276,549     $ 306,470  

Income allocation to NRP’s equity interests (1)

    9,315       13,608       20,718       62,184  

Amortization of basis difference

    (1,206 )     (1,207 )     (3,513 )     (3,551 )

Other comprehensive income (loss)

    82       2,200       2,166       (16,472 )

Distributions

    (6,320 )     (23,010 )     (28,114 )     (66,140 )

Balance at end of period

  $ 267,806     $ 282,491     $ 267,806     $ 282,491  
   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

   

2023

   

2024

   

2023

 

Net sales

  $ 160,975     $ 180,232     $ 438,385     $ 588,725  

Gross profit

    25,976       34,454       64,584       148,063  

Net income

    19,009       27,772       42,281       126,906  
v3.24.3
Note 8 - Mineral Rights, Net (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Mineral Properties Disclosure [Table Text Block]
   

September 30, 2024

   

December 31, 2023

 

(In thousands)

 

Carrying Value

   

Accumulated Depletion

   

Net Book Value

   

Carrying Value

   

Accumulated Depletion

   

Net Book Value

 

Coal properties

  $ 660,961     $ (296,781 )   $ 364,180     $ 661,256     $ (285,470 )   $ 375,786  

Aggregates properties

    8,655       (4,003 )     4,652       8,655       (3,761 )     4,894  

Oil and gas royalty properties

    12,354       (10,443 )     1,911       12,354       (10,082 )     2,272  

Other

    13,143       (1,612 )     11,531       13,143       (1,612 )     11,531  

Total mineral rights, net

  $ 695,113     $ (312,839 )   $ 382,274     $ 695,408     $ (300,925 )   $ 394,483  
v3.24.3
Note 9 - Debt, Net (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Long-Term Debt Instruments [Table Text Block]
  

September 30,

  

December 31,

 

(In thousands)

 

2024

  

2023

 

Opco Credit Facility

 $154,684  $95,834 

Opco Senior Notes

        

5.82% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

 $  $12,685 

8.92% with semi-annual interest payments in March and September, with annual principal payments in March, due March 2024

     4,012 

5.03% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  34,262   34,262 

5.18% with semi-annual interest payments in June and December, with annual principal payments in December, due December 2026

  8,732   8,732 

Total Opco Senior Notes

 $42,994  $59,691 

Total debt at face value

 $197,678  $155,525 

Net unamortized debt issuance costs

  (315)  (467)

Total debt, net

 $197,363  $155,058 

Less: current portion of long-term debt

  (14,226)  (30,785)

Total long-term debt, net

 $183,137  $124,273 
v3.24.3
Note 10 - Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Fair Value Option, Disclosures [Table Text Block]
      

September 30, 2024

  

December 31, 2023

 
  

Fair Value

  

Carrying

  

Estimated

  

Carrying

  

Estimated

 

(In thousands)

 

Hierarchy Level

  

Value

  

Fair Value

  

Value

  

Fair Value

 

Debt:

                    

Opco Senior Notes (1)

  3  $42,679  $40,992  $59,224  $56,533 

Opco Credit Facility (2)

  3   154,684   154,684   95,834   95,384 
                     

Assets:

                    

Contract receivable, net (current and long-term) (3)

  3  $26,997  $23,223  $28,946  $24,492 
v3.24.3
Note 11 - Related Party Transactions (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedule of Related Party Transactions [Table Text Block]
  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 

(In thousands)

 

2024

  

2023

  

2024

  

2023

 

Operating and maintenance expenses

 $2,014  $1,663  $5,483  $5,094 

General and administrative expenses

  1,296   1,287   4,117   3,860 
v3.24.3
Note 12 - Major Customers (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Schedules of Concentration of Risk, by Risk Factor [Table Text Block]
   

For the Three Months Ended September 30,

   

For the Nine Months Ended September 30,

 
   

2024

   

2023

   

2024

   

2023

 

(In thousands)

 

Revenues

   

Percent

   

Revenues

   

Percent

   

Revenues

   

Percent

   

Revenues

   

Percent

 

Alpha Metallurgical Resources, Inc. (1)

  $ 14,556       28 %   $ 17,219       20 %   $ 53,345       30 %   $ 61,122       22 %

Foresight Energy Resources LLC ("Foresight") (1)

  $ 7,421       14 %   $ 18,600       22 %   $ 30,003       17 %   $ 43,453       16 %

Alabama Kanu Holdings, LLC (1) (2)

  $ 7,143       14 %   $ 8,892       10 %   $ 21,344       12 %   $ 24,962       9 %
v3.24.3
Note 14 - Unit-based Compensation (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Share-Based Payment Arrangement, Activity [Table Text Block]

(In thousands)

 

Common Units

   

Weighted Average Grant Date Fair Value per Common Unit

 

Outstanding at January 1, 2024

    483     $ 46.21  

Granted

    65     $ 103.50  

Fully vested and issued

    (197 )   $ 38.76  

Forfeitures

    (1 )   $ 90.70  

Outstanding at September 30, 2024

    350     $ 60.81  
v3.24.3
Note 16 - Credit Losses (Tables)
9 Months Ended
Sep. 30, 2024
Notes Tables  
Accounts Receivable, Allowance for Credit Loss [Table Text Block]
   

September 30, 2024

   

December 31, 2023

 

(In thousands)

 

Gross

   

CECL Allowance

   

Net

   

Gross

   

CECL Allowance

   

Net

 

Receivables

  $ 44,356     $ (5,583 )   $ 38,773     $ 47,170     $ (5,655 )   $ 41,515  

Long-term contract receivable

    25,081       (869 )     24,212       27,265       (944 )     26,321  

Total

  $ 69,437     $ (6,452 )   $ 62,985     $ 74,435     $ (6,599 )   $ 67,836  
v3.24.3
Note 1 - Basis of Presentation (Details Textual)
9 Months Ended
Sep. 30, 2024
Number of Operating Segments 2
Number of Wholly Owned Operating Companies 1
Sisecam Wyoming [Member]  
Equity Method Investment, Ownership Percentage 49.00%
v3.24.3
Note 2 - Revenues From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue from contract with customers $ 50,405 $ 68,533 $ 170,570 $ 205,811
Mineral Rights Segment [Member] | Operating Segments [Member]        
Revenue from contract with customers 51,653 72,497 176,739 215,349
Coal Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 37,605 55,544 124,108 161,527
Production Lease Minimum Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 437 850 1,773 2,025
Minimum Lease Straight-line Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 4,117 4,464 12,414 13,414
Carbon Neutral Initiatives [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers (39) 681 4,322 2,914
Property Tax Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 1,809 1,770 5,246 4,710
Wheelage Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 2,072 2,385 7,082 9,538
Coal Overriding Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 227 827 2,064 1,165
Lease Amendment Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 1,071 623 2,485 2,322
Aggregates Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 662 736 2,164 2,175
Oil and Gas Royalty Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 1,317 324 6,956 5,126
Other Revenues [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers 1,127 329 1,956 895
Transportation and Processing Services [Member] | Mineral Rights Segment [Member]        
Revenue from contract with customers $ 1,248 $ 3,964 $ 6,169 $ 9,538
v3.24.3
Note 2 - Revenue From Contracts With Customers - Assets and Liabilities (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Accounts payable $ 984   $ 885
Current portion of deferred revenue 5,823   4,599
Deferred revenue 53,912   38,356
Balance 42,955 $ 46,437  
Increase due to minimums and lease amendment fees 28,319 11,525  
Recognition of previously deferred revenue (11,539) (16,487)  
Balance 59,735 $ 41,475  
Coal Royalty Revenues [Member]      
Accounts payable [1] 114   0
Current portion of deferred revenue 5,823   4,599
Deferred revenue 53,912   38,356
Coal Royalty Revenues [Member] | Accounts Receivable [Member]      
Contract with customer, current 32,878   37,206
Coal Royalty Revenues [Member] | Other Current Assets [Member]      
Contract with customer, current [2] 1,047   429
Coal Royalty Revenues [Member] | Other Long Term Assets [Member]      
Contract with customer, current [3] $ 1,725   $ 0
[1] Accounts payable include override payments owed by NRP from contracts with customers.
[2] Other current assets, net includes short-term notes receivables from contracts with customers.
[3] Other long-term assets, net includes amounts prepaid by NRP related to override agreements from contracts with customers as well as long-term lease amendment fee receivables from contracts with customers.
v3.24.3
Note 2 - Revenue From Contracts With Customers - Operating Lease Payments Receivable (Details)
$ in Thousands
Sep. 30, 2024
USD ($)
[1]
Weighted average remaining years (Year) 7 years 1 month 6 days
Annual minimum payments $ 58,950
Lease Term, 0 to 5 Years [Member]  
Weighted average remaining years (Year) 1 year 10 months 24 days
Annual minimum payments $ 14,949
Lease Term, 5 to 10 Years [Member]  
Weighted average remaining years (Year) 5 years 6 months
Annual minimum payments $ 18,222
Lease Term, Greater Than 10 Years [Member]  
Weighted average remaining years (Year) 11 years 3 months 18 days
Annual minimum payments $ 25,779
[1] Lease term does not include renewal periods.
v3.24.3
Note 3 - Class A Convertible Preferred Units and Warrants (Details Textual) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Feb. 14, 2024
Feb. 08, 2024
Feb. 07, 2024
Jan. 29, 2024
Sep. 18, 2023
Mar. 02, 2017
Sep. 30, 2024
May 31, 2024
Apr. 30, 2024
Sep. 30, 2023
Aug. 31, 2023
Jun. 30, 2023
May 31, 2023
Feb. 28, 2023
Sep. 30, 2024
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Temporary Equity, Par or Stated Value Per Share (in dollars per share)             $ 1,000               $ 1,000 $ 1,000   $ 1,000
Preferred Units, Number of Redeemed Units (in shares)             31,666 40,000   15,001 35,000 45,000 35,834 47,499        
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests             $ 0               $ 0 $ 0   $ 47,181
Volume Weighted Average Price of Share (in dollars per share)                 $ 90.33                  
Warrants and Rights Outstanding             $ 0               $ 0 $ 0   $ 23,095
Warrants at 22.81 Strike Price [Member]                                    
Class of Warrant or Right Warrants, Issued (in shares)           1,750,000                        
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)         $ 22.81 $ 22.81                        
Class of Warrant or Right, Repurchased and Retired (in shares)         752,500                          
Warrants at 34.00 Strike Price [Member]                                    
Class of Warrant or Right Warrants, Issued (in shares)           2,250,000                        
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) $ 34 $ 34 $ 34 $ 34 $ 34 $ 34 $ 34   $ 34           $ 34 $ 34   $ 34
Class of Warrant or Right, Repurchased and Retired (in shares)         60,000       320,335             1,540,000    
Class Of Warrants, Warrants Exercised (in shares) 500,000 128,750 128,750 462,165                            
Warrants and Rights Settled $ 29,700 $ 7,900 $ 8,000 $ 10,000 $ 33,600       $ 10,000                  
Partners' Capital Account, Units, Warrant Settlements (in shares)       198,767         89,059                  
Volume Weighted Average Price of Share (in dollars per share) $ 93.47 $ 95.63 $ 96.29 $ 97.62                            
Class of Warrant or Right, Outstanding (in shares)             0               0 0   1,540,000
Warrants and Rights Outstanding                                   $ 23,100
Originally Issued Warrants [Member]                                    
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)             4,000,000               4,000,000 4,000,000    
Class A Convertible Preferred Units [Member]                                    
Preferred Units, Issued (in shares)           250,000                        
Temporary Equity, Par or Stated Value Per Share (in dollars per share)           $ 1,000                        
Preferred Units Origination Fee Percent           2.50%                        
Preferred Stock, Dividend Rate, Percentage           12.00%                        
Preferred Units, Number of Redeemed Units (in shares)                             31,666 71,666 178,334  
Preferred Units, Value of Redeemed Units                             $ 31,700 $ 71,700 $ 178,300  
Preferred Units, Outstanding (in shares)             0               0 0   71,666
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests                                   $ 47,200
Preferred Stock [Member]                                    
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants, Total           $ 250,000                        
v3.24.3
Note 4 - Common and Preferred Unit Distributions (Details Textual) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2024
May 31, 2024
Sep. 30, 2023
Aug. 31, 2023
Jun. 30, 2023
May 31, 2023
Feb. 28, 2023
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest Allocated to Preferred Unit Holders               $ (655) $ (1,440) $ (2,150) $ (2,936) $ (4,970) $ (6,660) $ (4,248) $ (14,568)
Preferred Stock Redemption Premium               10,819     17,083     24,485 60,929
Preferred Units, Number of Redeemed Units (in shares) 31,666 40,000 15,001 35,000 45,000 35,834 47,499                
Common Unitholders And General Partner [Member]                              
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest Allocated to Preferred Unit Holders               $ (700)     $ (2,900)     $ (4,200) $ (14,600)
Partner, General [Member]                              
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest                           2.00%  
v3.24.3
Note 4 - Common and Preferred Unit Distributions - Distributions Made to Partners (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended
Jun. 30, 2023
Sep. 30, 2024
Aug. 31, 2024
May 31, 2024
Mar. 31, 2024
Feb. 29, 2024
Sep. 30, 2023
Aug. 31, 2023
May 31, 2023
Mar. 31, 2023
Feb. 28, 2023
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Distributions, common units                       $ 9,986 $ 9,987 $ 42,186 $ 9,669 $ 9,669 $ 40,900
Preferred Partner [Member] | Preferred Stock [Member]                                  
Distribution per unit, common units (in dollars per share)     $ 30 $ 30   $ 30   $ 30 $ 30   $ 30            
Distribution, preferred stock     $ 950 $ 2,150   $ 2,150   $ 3,650 $ 6,075   $ 7,500            
Preferred Partner [Member] | Preferred Stock [Member] | March 2024 Special Distribution [Member]                                  
Distribution per unit, common units (in dollars per share) [1]         $ 0                        
Distribution, preferred stock [1]         $ 0                        
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering April 1 - May 8, 2024 [Member]                                  
Distribution per unit, common units (in dollars per share) [2]       $ 12.33                          
Distribution, preferred stock [2]       $ 493                          
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering July 1 - September 3, 2024 [Member]                                  
Distribution per unit, common units (in dollars per share) [3]   $ 20.68                              
Distribution, preferred stock [3]   $ 655                              
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering January 1 - February 8, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [4]                     $ 12.33            
Distribution, preferred stock [4]                     $ 586            
Preferred Partner [Member] | Preferred Stock [Member] | March 2023 Special Distribution [Member]                                  
Distribution per unit, common units (in dollars per share) [5]                   $ 0              
Distribution, preferred stock [5]                   $ 0              
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering April 1 - May 5, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [6]                 $ 11.33                
Distribution, preferred stock [6]                 $ 406                
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering April 1 - June 2, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [7] $ 20.33                                
Distribution, preferred stock [7] $ 915                                
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering July 1 - August 8, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [8]               $ 12.33                  
Distribution, preferred stock [8]               $ 432                  
Preferred Partner [Member] | Preferred Stock [Member] | Distributions Covering July 1 - September 12, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [9]             $ 23.67                    
Distribution, preferred stock [9]             $ 355                    
Common Unitholders, General Partner [Member]                                  
Distribution per unit, common units (in dollars per share)     $ 0.75 $ 0.75   $ 0.75   $ 0.75 $ 0.75   $ 0.75            
Distributions, common units [10]     $ 9,986 $ 9,987   $ 9,918   $ 9,669 $ 9,669   $ 9,571            
Common Unitholders, General Partner [Member] | March 2024 Special Distribution [Member]                                  
Distribution per unit, common units (in dollars per share) [1]         $ 2.44                        
Distributions, common units [1],[10]         $ 32,268                        
Common Unitholders, General Partner [Member] | Distributions Covering April 1 - May 8, 2024 [Member]                                  
Distribution per unit, common units (in dollars per share) [2]       $ 0                          
Distributions, common units [2],[10]       $ 0                          
Common Unitholders, General Partner [Member] | Distributions Covering July 1 - September 3, 2024 [Member]                                  
Distribution per unit, common units (in dollars per share) [3]   $ 0                              
Distributions, common units [3],[10]   $ 0                              
Common Unitholders, General Partner [Member] | Distributions Covering January 1 - February 8, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [4]                     $ 0            
Distributions, common units [4],[10]                     $ 0            
Common Unitholders, General Partner [Member] | March 2023 Special Distribution [Member]                                  
Distribution per unit, common units (in dollars per share) [5]                   $ 2.43              
Distributions, common units [5],[10]                   $ 31,329              
Common Unitholders, General Partner [Member] | Distributions Covering April 1 - May 5, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [6]                 $ 0                
Distributions, common units [6],[10]                 $ 0                
Common Unitholders, General Partner [Member] | Distributions Covering April 1 - June 2, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [7] $ 0                                
Distributions, common units [7],[10] $ 0                                
Common Unitholders, General Partner [Member] | Distributions Covering July 1 - August 8, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [8]               $ 0                  
Distributions, common units [8],[10]               $ 0                  
Common Unitholders, General Partner [Member] | Distributions Covering July 1 - September 12, 2023 [Member]                                  
Distribution per unit, common units (in dollars per share) [9]             $ 0                    
Distributions, common units [9],[10]             $ 0                    
[1] Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2023.
[2] Relates to accrued distribution paid upon the redemption of 40,000 preferred units in May 2024.
[3] Related to accrued distribution paid upon the redemption of 31,666 preferred units in September 2024.
[4] Relates to accrued distribution paid upon the redemption of 47,499 preferred units in February 2023.
[5] Special distribution was made to help cover unitholder tax liabilities associated with owning NRP's common units during 2022.
[6] Relates to accrued distribution paid upon the redemption of 35,834 preferred units in May 2023.
[7] Relates to accrued distribution paid upon redemption of 45,000 preferred units in June 2023.
[8] Related to accrued distribution paid upon redemption of 35,000 preferred units in August 2023.
[9] Related to accrued distribution paid upon the redemption of 15,001 preferred units in September 2023.
[10] Totals include the amount paid to NRP's general partner in accordance with the general partner's 2% general partner interest
v3.24.3
Note 5 - Net Income Per Common Unit - Schedule of Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
[2]
Mar. 31, 2024
[3]
Sep. 30, 2023
Jun. 30, 2023
[5]
Mar. 31, 2023
[6]
Sep. 30, 2024
Sep. 30, 2023
Net income attributable to common unitholders $ 26,578     $ 42,951     $ 109,896 $ 135,199
Weighted average common units—basic (in shares) 13,049     12,635     12,971 12,613
Basic net income per common unit (in dollars per share) $ 2.04     $ 3.4     $ 8.47 $ 10.72
Plus: dilutive effect of preferred units (in shares) 0     1,104     375 2,434
Plus: dilutive effect of warrants (in shares) 0     1,492     186 1,296
Plus: dilutive effect of unvested unit-based awards (in shares) 222     240     229 190
Weighted average common units—diluted (in shares) 13,271     15,471     13,761 16,533
Net income $ 38,595 [1] $ 46,064 $ 56,213 $ 63,846 [4] $ 70,334 $ 79,275 $ 140,872 $ 213,455
Less: income attributable to preferred unitholders (655)     (786)     (1,148) (2,693)
Less: redemption of preferred units (10,819)     (17,083)     (24,485) (60,929)
Diluted net income attributable to common unitholders and the general partner 27,121     45,977     115,239 149,833
Less: diluted net income attributable to the general partner (543)     (920)     (2,305) (2,997)
Diluted net income attributable to common unitholders $ 26,578     $ 45,057     $ 112,934 $ 146,836
Diluted net income per common unit (in dollars per share) $ 2     $ 2.91     $ 8.21 $ 8.88
[1] Net income includes $0.66 million of income attributable to preferred unitholders that accumulated during the period, of which $0.64 million is allocated to the common unitholders and $0.01 million is allocated to the general partner.
[2] Net income includes $1.44 million of income attributable to preferred unitholders that accumulated during the period, of which $1.41 million is allocated to the common unitholders and $0.03 million is allocated to the general partner.
[3] Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner.
[4] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[5] Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[6] Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
v3.24.3
Note 6 - Segment Information (Details Textual)
9 Months Ended
Sep. 30, 2024
Number of Operating Segments 2
Sisecam Wyoming [Member]  
Equity Method Investment, Ownership Percentage 49.00%
v3.24.3
Note 6 - Segment Information - Information By Segment (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenues $ 52,217 $ 73,112 $ 180,268 $ 217,258
Equity in earnings of Sisecam Wyoming 8,109 12,401 17,204 58,633
Gain on asset sales and disposals 1 854 4,809 955
Operating and maintenance expenses 6,786 8,358 18,391 23,451
Depreciation, depletion and amortization 4,730 4,594 12,708 12,469
General and administrative expenses 5,935 5,669 18,193 17,157
Asset impairments 87 63 87 132
Interest expense, net 4,194 3,837 12,030 10,182
Net income (loss) 38,595 63,846 140,872 213,455
Segment Reporting, Reconciling Item, Corporate Nonsegment [Member]        
Revenues 0 0 0 0
Equity in earnings of Sisecam Wyoming 0 0 0 0
Gain on asset sales and disposals 0 0 0 0
Operating and maintenance expenses 0 0 0 0
Depreciation, depletion and amortization 5 5 14 14
General and administrative expenses 5,935 5,669 18,193 17,157
Asset impairments 0 0 0 0
Interest expense, net 4,194 3,837 12,030 10,182
Net income (loss) (10,134) (9,511) (30,237) (27,353)
Mineral Rights Segment [Member] | Operating Segments [Member]        
Revenues 52,217 73,112 180,268 217,258
Equity in earnings of Sisecam Wyoming 0 0 0 0
Gain on asset sales and disposals 1 854 4,809 955
Operating and maintenance expenses 6,762 8,305 18,279 23,226
Depreciation, depletion and amortization 4,725 4,589 12,694 12,455
General and administrative expenses 0 0 0 0
Asset impairments 87 63 87 132
Interest expense, net 0 0 0 0
Net income (loss) 40,644 61,009 154,017 182,400
Soda Ash Segment [Member] | Operating Segments [Member]        
Revenues 0 0 0 0
Equity in earnings of Sisecam Wyoming 8,109 12,401 17,204 58,633
Gain on asset sales and disposals 0 0 0 0
Operating and maintenance expenses 24 53 112 225
Depreciation, depletion and amortization 0 0 0 0
General and administrative expenses 0 0 0 0
Asset impairments 0 0 0 0
Interest expense, net 0 0 0 0
Net income (loss) $ 8,085 $ 12,348 $ 17,092 $ 58,408
v3.24.3
Note 7 - Equity Investment (Details Textual) - Sisecam Wyoming [Member] - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Equity Method Investment, Ownership Percentage 49.00%   49.00%  
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) $ 1.5 $ 0.9 $ 4.5 $ (17.4)
v3.24.3
Note 7 - Equity Investment - Investment Activity (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Beginning Balance     $ 276,549       $ 276,549  
Ending Balance $ 267,806           267,806  
Net income 38,595 [1] $ 46,064 [2] 56,213 [3] $ 63,846 [4] $ 70,334 [5] $ 79,275 [6] 140,872 $ 213,455
Sisecam Wyoming [Member]                
Net sales 160,975     180,232     438,385 588,725
Gross profit 25,976     34,454     64,584 148,063
Net income 19,009     27,772     42,281 126,906
Sisecam Wyoming [Member]                
Beginning Balance 265,935   $ 276,549 290,900   $ 306,470 276,549 306,470
Income allocation to NRP’s equity interests (1) [7] 9,315     13,608     20,718 62,184
Amortization of basis difference (1,206)     (1,207)     (3,513) (3,551)
Other comprehensive income (loss) 82     2,200     2,166 (16,472)
Distributions (6,320)     (23,010)     (28,114) (66,140)
Ending Balance $ 267,806 $ 265,935   $ 282,491 $ 290,900   $ 267,806 $ 282,491
[1] Net income includes $0.66 million of income attributable to preferred unitholders that accumulated during the period, of which $0.64 million is allocated to the common unitholders and $0.01 million is allocated to the general partner.
[2] Net income includes $1.44 million of income attributable to preferred unitholders that accumulated during the period, of which $1.41 million is allocated to the common unitholders and $0.03 million is allocated to the general partner.
[3] Net income includes $2.15 million of income attributable to preferred unitholders that accumulated during the period, of which $2.11 million is allocated to the common unitholders and $0.04 million is allocated to the general partner.
[4] Net income includes $2.9 million of income attributable to preferred unitholders that accumulated during the period, of which $2.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[5] Net income includes $5.0 million of income attributable to preferred unitholders that accumulated during the period, of which $4.9 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[6] Net income includes $6.7 million of income attributable to preferred unitholders that accumulated during the period, of which $6.5 million is allocated to the common unitholders and $0.1 million is allocated to the general partner.
[7] Amounts reclassified into income out of accumulated other comprehensive loss were $1.5 million and $0.9 million for the three months ended September 30, 2024 and 2023, respectively and $4.5 million and $(17.4) million for the nine months ended September 30, 2024 and 2023, respectively.
v3.24.3
Note 8 - Mineral Rights, Net (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Gain (Loss) on Disposition of Assets $ 1 $ 854 $ 4,809 $ 955
Coal Mineral Rights [Member]        
Depletion $ 4,700 4,100 12,100 11,600
Gain (Loss) on Disposition of Assets   $ 900 $ 4,800 $ 1,000
v3.24.3
Note 8 - Mineral Rights, Net - Composition of Mineral Rights (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Mineral Properties, carrying value $ 695,113 $ 695,408
Mineral Properties, accumulated depletion (312,839) (300,925)
Mineral Properties, net book value 382,274 394,483
Coal Properties [Member]    
Mineral Properties, carrying value 660,961 661,256
Mineral Properties, accumulated depletion (296,781) (285,470)
Mineral Properties, net book value 364,180 375,786
Aggregates Properties [Member]    
Mineral Properties, carrying value 8,655 8,655
Mineral Properties, accumulated depletion (4,003) (3,761)
Mineral Properties, net book value 4,652 4,894
Oil and Gas Royalty Properties [Member]    
Mineral Properties, carrying value 12,354 12,354
Mineral Properties, accumulated depletion (10,443) (10,082)
Mineral Properties, net book value 1,911 2,272
Other [Member]    
Mineral Properties, carrying value 13,143 13,143
Mineral Properties, accumulated depletion (1,612) (1,612)
Mineral Properties, net book value $ 11,531 $ 11,531
v3.24.3
Note 9 - Debt, Net (Details Textual)
$ in Thousands
1 Months Ended 3 Months Ended 9 Months Ended
Feb. 01, 2024
USD ($)
Feb. 29, 2024
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Jan. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
May 31, 2023
USD ($)
Aug. 31, 2022
USD ($)
Nontrade Receivables, Noncurrent     $ 24,212   $ 24,212     $ 26,321    
Long-Term Debt, Gross     197,678   197,678     155,525    
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Opco [Member]                    
Line of Credit Facility, Remaining Borrowing Capacity     45,300   45,300     59,200 $ 155,000 $ 130,000
Line of Credit Facility, Maximum Borrowing Capacity, Addition of Future Commitments                 $ 200,000  
Line of Credit Facility, Increase (Decrease), Net $ 30,000 $ 15,000                
Line of Credit Facility, Maximum Borrowing Capacity $ 185,000 200,000         $ 155,000      
Long-Term Line of Credit     $ 154,700   154,700     95,800    
Proceeds from Lines of Credit         152,900 $ 215,000        
Repayments of Lines of Credit         $ 94,000 $ 157,000        
Long-Term Debt, Weighted Average Interest Rate, over Time     8.91% 8.85% 8.92% 8.61%        
Nontrade Receivables, Noncurrent     $ 24,200   $ 24,200     26,300    
Long-Term Debt, Gross     154,684   154,684     95,834    
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Opco [Member] | Other Noncurrent Assets [Member]                    
Debt Instrument, Collateral Amount     $ 305,300   $ 305,300     316,300    
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Opco [Member] | New Lender [Member]                    
Line of Credit Facility, Maximum Borrowing Capacity   $ 30,000                
Debt Instrument Covenant Maximum Leverage Ratio     3   3          
Leverage Ratio     0.8   0.8          
Debt Instrument, Covenant, Minimum Interest Coverage Ratio     3.5   3.5          
Interest Coverage Ratio     14.2   14.2          
Senior Notes [Member] | Opco [Member]                    
Long-Term Debt, Gross     $ 43,000   $ 43,000     $ 59,700    
Repayments of Debt         $ 16,700 $ 19,100        
v3.24.3
Note 9 - Debt, Net - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Debt instrument, carrying value $ 197,678 $ 155,525
Net unamortized debt issuance costs (315) (467)
Total debt, net 197,363 155,058
Less: current portion of long-term debt (14,226) (30,785)
Total long-term debt, net 183,137 124,273
Senior Notes [Member] | Five Point Eight Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, carrying value 0 12,685
Senior Notes [Member] | Eight Point Nine Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, carrying value 0 4,012
Senior Notes [Member] | Five Point Zero Three Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, carrying value 34,262 34,262
Senior Notes [Member] | Five Point One Eight Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, carrying value 8,732 8,732
Opco Senior Notes [Member]    
Debt instrument, carrying value 42,994 59,691
Opco [Member] | Floating Rate Revolving Credit Facility Due August 2027 [Member]    
Debt instrument, carrying value 154,684 95,834
Opco [Member] | Senior Notes [Member]    
Debt instrument, carrying value $ 43,000 $ 59,700
v3.24.3
Note 9 - Debt, Net - Schedule of Long-term Debt (Details) (Parentheticals) - Senior Notes [Member]
Sep. 30, 2024
Dec. 31, 2023
Five Point Eight Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, interest rate 5.82% 5.82%
Eight Point Nine Two Percent Senior Note Due March Two Zero Two Four [Member]    
Debt instrument, interest rate 8.92% 8.92%
Five Point Zero Three Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, interest rate 5.03% 5.03%
Five Point One Eight Percent Senior Note Due December Two Zero Two Six [Member]    
Debt instrument, interest rate 5.18% 5.18%
v3.24.3
Note 10 - Fair Value Measurements (Details Textual) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Discount Rate 15.00% 15.00%
Embedded Derivative, Fair Value of Embedded Derivative Liability $ 0 $ 0
v3.24.3
Note 10 - Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Reported Value Measurement [Member]    
Contract receivable, net (current and long-term) [1] $ 26,997 $ 28,946
Estimate of Fair Value Measurement [Member]    
Contract receivable, net (current and long-term) [1] 23,223 24,492
Opco Senior Notes [Member] | Reported Value Measurement [Member]    
Long term debt, fair value [2] 42,679 59,224
Opco Senior Notes [Member] | Estimate of Fair Value Measurement [Member]    
Long term debt, fair value [2] 40,992 56,533
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Reported Value Measurement [Member]    
Long term debt, fair value [3] 154,684 95,834
Floating Rate Revolving Credit Facility Due August 2027 [Member] | Estimate of Fair Value Measurement [Member]    
Long term debt, fair value [3] $ 154,684 $ 95,384
[1] The fair value of the Partnership's contract receivable is determined based on the present value of future cash flow projections related to the underlying asset at a discount rate of 15% at September 30, 2024 and December 31, 2023.
[2] The fair value of the Opco Senior Notes was estimated by management utilizing the present value replacement method incorporating the interest rate of the Opco Credit Facility.
[3] The fair value of the Opco Credit Facility approximates the outstanding borrowing amount because the interest rates are variable and reflective of market rates and the terms of the credit facility allow the Partnership to repay this debt at any time without penalty.
v3.24.3
Note 11 - Related Party Transactions (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Assets [Abstract]          
Other Assets, Noncurrent $ 9,187   $ 9,187   $ 7,540
Liabilities [Abstract]          
Other Liabilities, Noncurrent 5,903   5,903   7,172
Accounts Payable, Current 984   984   885
Operating Costs and Expenses 6,786 $ 8,358 18,391 $ 23,451  
Other Assets, Noncurrent $ 9,187   $ 9,187   $ 7,540
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other Assets, Noncurrent   Other Assets, Noncurrent   Other Assets, Noncurrent
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities, Noncurrent   Other Liabilities, Noncurrent   Other Liabilities, Noncurrent
WPPLP [Member]          
Accounts Payable, Current $ 100   $ 100   $ 100
Operating Lease, Liability 3,400   3,400   3,500
Operating Costs and Expenses 10 $ 1,100 50 $ 5,100  
Operating Lease, Right-of-Use Asset 3,400   3,400   3,500
WPPLP [Member] | Prepaid Royalty [Member]          
Assets [Abstract]          
Other Assets, Noncurrent 500   500   0
Other Assets, Noncurrent 500   500   0
Quintana Minerals Corp [Member] | Affiliated Entity [Member]          
Accounts Payable, Current $ 600   $ 600   $ 600
v3.24.3
Note 11 - Related Party Transactions - General Partner Affiliates (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Operating Costs and Expenses $ 6,786 $ 8,358 $ 18,391 $ 23,451
QMC and WPPLP and QID [Member] | Affiliated Entity [Member]        
Operating Costs and Expenses 2,014 1,663 5,483 5,094
General and administrative expenses $ 1,296 $ 1,287 $ 4,117 $ 3,860
v3.24.3
Note 12 - Major Customers - Concentration Risk (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Alpha Metallurgical Resources [Member]        
Net sales [1] $ 14,556 $ 17,219 $ 53,345 $ 61,122
Alpha Metallurgical Resources [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]        
Revenue, percent [1] 28.00% 20.00% 30.00% 22.00%
Foresight Energy Resources [Member]        
Net sales [1] $ 7,421 $ 18,600 $ 30,003 $ 43,453
Foresight Energy Resources [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]        
Revenue, percent [1] 14.00% 22.00% 17.00% 16.00%
Alabama Kanu Holdings [Member]        
Net sales [2] $ 7,143 $ 8,892 $ 21,344 $ 24,962
Alabama Kanu Holdings [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]        
Revenue, percent [1],[2] 14.00% 10.00% 12.00% 9.00%
[1] Revenues from Alpha Metallurgical Resources, Inc., Foresight and Alabama Kanu Holdings, LLC are included within the Partnership's Mineral Rights segment.
[2] Alabama Kanu Holdings, LLC purchased Hatfield Metallurgical Holdings, LLC in August 2024.
v3.24.3
Note 14 - Unit-based Compensation (Details Textual) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value     $ 6.7 $ 16.0  
Share-Based Payment Arrangement, Expense $ 3.0 $ 2.7 8.9 7.9  
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 12.4   $ 12.4   $ 13.3
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)     1 year 7 months 6 days    
Market-based Awards [Member]          
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value     $ 2.5 $ 2.8  
v3.24.3
Note 14 - Unit-based Compensation - Share-based Compensation Activity (Details) - Common Units [Member]
shares in Thousands
9 Months Ended
Sep. 30, 2024
$ / shares
shares
Outstanding (in shares) | shares 483
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares $ 46.21
Granted (in shares) | shares 65
Granted, weighted average grant date fair value (in dollars per share) | $ / shares $ 103.5
Fully vested and issued (in shares) | shares (197)
Fully vested and issued, weighted average grant date fair value (in dollars per share) | $ / shares $ 38.76
Forfeitures (in shares) | shares (1)
Forfeitures, weighted average grant date fair value (in dollars per share) | $ / shares $ 90.7
Outstanding (in shares) | shares 350
Outstanding, weighted average grant date fair value (in dollars per share) | $ / shares $ 60.81
v3.24.3
Note 15 - Financing Transaction (Details Textual) - Sugar Camp Mine [Member] - USD ($)
12 Months Ended
Dec. 31, 2032
Sep. 30, 2024
Lessor, Operating Lease, Renewal Term (Year)   80 years
Forecast [Member]    
Operating Lease, Lease Income $ 10,000  
v3.24.3
Note 16 - Credit Losses (Details Textual) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Financing Receivable, Credit Loss, Expense (Reversal) $ 0.7 $ 1.6 $ (0.1) $ 0.8
Accounts Receivable, Allowance for Credit Loss, Writeoff $ 0.4   $ 0.7  
v3.24.3
Note 16 - Credit Losses - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Receivables, gross $ 44,356 $ 47,170
Receivables, allowance (5,583) (5,655)
Receivables, net 38,773 41,515
Long-term contract receivable, gross 25,081 27,265
Long-term contract receivable, allowance (869) (944)
Long-term contract receivable, net 24,212 26,321
Total, gross 69,437 74,435
Total, allowance (6,452) (6,599)
Total, net $ 62,985 $ 67,836
v3.24.3
Note 17 - Subsequent Events (Details Textual)
1 Months Ended
Nov. 30, 2024
$ / shares
Subsequent Event [Member]  
Distribution Made to Limited Partner, Distributions Paid, Per Unit (in dollars per share) $ 0.75

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