NRP - Earnings call 3 2023 | Natural Resource Partners L.P.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. My name is Eric and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners L.P.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. to Investor call Relations. like Sammis, to now of Manager would turn over the Tiffany I Please ahead. go

Tiffany Sammis

Thank you. call Good on Resource and Partners morning replay our and welcome Quarter a Conference to website. XXXX Call. be Today's will is webcast Third being available the Natural

Zolas, Vice Joining today President. Chris Nunez, Officer; and Chief Operating President me Financial and Kevin Craig Officer; are Chief Craig, Executive

uncertainties NRP's that forward-looking our Some cause and for our involve may views reflecting about today statements or matters statements from future statements. These risks update We are Commission comments revise discussed results of forward-looking in any risks actual any forward-looking NRP's reason. other and could Form and our undertake XX-K publicly differ to to Securities no These events. obligation include filings. Exchange materially

today also financial measures. non-GAAP include Our comments

to on lessee included are which Additional do operations market for discuss the most details coal in can any website. or press remind fundamentals. outlook intend detailed and to that our be to I quarter our reconciliations GAAP directly like everyone release, particular comparable measures or found not the third we would

Now I to Chief Nunez, over Officer. the would turn and President to call Operating our Craig like

Craig Nunez

NRP everyone. free cash and $XX $XXX XX Thank cash last months. and good million flow the third you, Tiffany morning, million free of in of generated flow quarter over the

to cash equity preferred debt, utilize and retire to aggressively continue this We warrants.

of equity, million. of quarter, our balance and During our preferred to our million retired year preferred million equity $XX XX.X% for lowering the third preferred the equity $XXX to we $XX permanently total increasing retirement outstanding

with and -- October a strike XXX,XXX in price $XX. we We After $XX which these have warrants total warrants of of also XXX,XXX repurchased third included warrants, outstanding million million quarter for X.XX million million only transactions, a cash. $XX in in warrants X.XX the

includes As warrants, equity around of obligations, our and preferred total $XXX today, debt, which are million.

maintaining common and preferred right the unit common that strategy while of retirement distributions long-term of to settlement believe warrants, to continue debt, maximize is aggressive equity We value. unitholder

cash supported quarter. improved million for the supply-demand $XX but foreseeable it global balance believe future somewhat Our well due Mineral in third remained remains the free business met coal remain long-term generated demand and prices so of seen levels during we to The flow the XXXX. will and record muted Rights during the supply. below new quarter in coal solid for trends met Metallurgical investment

year. mild utility Thermal coal down prices in after stabilized drove decreased the burn the in winter and the prices quarter third of half weather first

long-term domestic and to we face export will thermal has thermal have coal which in headwinds coal continue continue While we believe seen near-term pricing. for increase demand, support burn its secular an provided decline, year-over-year

sources in price will coal We relatively at that new provide thermal are international coal levels continue to likely of believe continued to demand, thermal with when strong compared coupled production, norms. underinvestment support historical

has Ash, shifted Wyoming so the company received our year. of ever to highest this from Sisecam have traded Sisecam $XX earlier completed cash XXXX, conversion partnership believe of we've million Turning a Resources, since limit its Sisecam private of first from we received the is far Soda in level distributions for quarters which X regular distributions Wyoming year. publicly a managing distribution the master We to XX% at policy partner, a

were the with the distributions MLP variances throughout public Previously, relatively consistent paid quarter-over-quarter smoothing year, evenly model.

in distributions the operating generated line to by quarterly actual volatility to Wyoming. distributions will more with more bring business. it but be will cash This cash Going forward, introduce actual will closely future Sisecam of we the performance tied greater believe distributions

absorbs the primarily half due coming trend unfavorable compared believe prices persist market supply of to supply. will this year, the We the price saw third significantly quarter export the We the from XXXX additional lower soda the new in in to first China. years ash until of

increase our not energy, in part ash industry the We However, long-term remain of the ongoing soda the believe electrification urbanization. fleet the by favorable, driven view renewable long-term the auto in global and has changed. fundamentals of

evaluate goal surface assets wind to with and of expand to electricity portfolio COX mineral using generation forest our and our the We carbon-neutral monetizing underground sequestration, energy. the of opportunities for continue solar and sequestration geothermal, permanent

significant, While upside and become requiring to the all an investment for capital investment early by no could neutral the NRP. development believe our carbon further significant economy carbon-neutral of is potential we development stage in viable, requires initiatives and be while

Mineral Ash have businesses significant year. over last Rights Soda our and Both the witnessed price volatility

foreseeable volatility to future. continue this for expect We the

the that derisk confident ahead. and well us free years the are and robust months generate in we recent to taken in business cash our delever strides However, to years position flow

with to I'll over turn call to And financials. Chris the cover that, the

Christopher Zolas

Thank everyone. you, Craig good morning, and

the generated of quarter, net $XX During third cash million operating and $XX million we income. flow of

the royalty into $XX quarter. net and and by segment and $XX Our quarter $XX million, segment transactions this generated $XX operating gas cash free prices natural last higher prior quarter, cash revenues carbon-neutral When decreased income due third sales to year the to net Mineral compared of driven million and and oil Rights prior volumes respectively, higher million flow and third during flow year initiative cash flow year. primarily income free entered and gas of million

royalty quarter coal revenues thermal our XX% made of coal our up our for XXXX. volumes and Regarding of royalty metallurgical coal approximately the royalty met, sales coal of mix, XX% third

an Ash the income was year to cash mix quarter the the compared Wyoming. period. increased quarter prior in in XXXX flow Moving $X to sales business to third quarter, business lower to million year segment in due market into Ash of increased quarter third Free the of and XXXX to from from the segment. the million compared compared period. received our was cash primarily as a as increase distribution as of $XX due international third higher Sisecam This lower international Soda to prior prior Net year prices XXXX the our Soda sales

of and on Corporate to Shifting loss primarily for due third quarter $X million, improved a recognized in to debt extinguishment the of our Financing early Costs XXXX segment. XXXX.

to Corporate of borrowings flow to free used interest were XXXX prior Our as period preferred warrants. segment higher in that facility million the for year compared units cash $X credit on redeem paid settle and Financing because and cash to decreased

total of quarter redeemed $XX units at and enabled in As strong third make us In Craig unit operating great of XXXX cash, to million. the permanently million to units our par to warrants. bringing performance preferred we $XXX and mentioned, strides preferred preferred lowering outstanding amount redemptions outstanding our third in quarter, retiring the with million our preferred units $XX

as redemptions. of unit We these will a result save over $XX preferred distributions million annually in cash

repurchased a our in of X.XX million outstanding for warrants X.XX we $XX addition, of to In million warrants total cash, million. reducing

second this distribution paid announced we unit third Finally, in August quarter regarding unitholders. morning, per per million and quarterly a and to distribution million a cash $X.XX preferred our common common quarter this $X.XX preferred of of unitholders. of unit we our distribution $X.XX distributions, And distribution a year, cash a to $X.XX

that, the call questions. to I'll turn with for back operator over And

Operator

Nunez time. Thank Instructions]. to you. call [Operator the go no ahead. would there to this over are Please turn back Ladies questions closing remarks. for Craig I and like now gentlemen, at

Craig Nunez

our to joining of we you, everyone, NRP Thank to for forward your you you, and talking thank and quarter. continued call look operator and for next support

Operator

Ladies for all you. joining. call. gentlemen, Thank and you that today's Thank concludes

may lines. disconnect now You your

Natural Resource Partners (NRP) 3 Nov 232023 Q3 Earnings call transcript