NRP - Earnings call transcript Q1 2024 | Natural Resource Partners L.P.

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Operator

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

First Quarter 2024 Earnings Conference Call. [Operator Instructions]. to Investor conference Relations. like Sammis, to now of Manager would turn over the Tiffany I

You begin. may

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, First 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

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

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

Craig Nunez

toward generated and generation has million first allowed us $XX Tiffany, everyone. goal months. make in cash eliminating robust our flow progress XX of obligations. This free of good you, over flow morning, cash quarter free cash Thank of all million $XXX NRP the and the financial noteworthy last to

X Since on remaining XX% belief have in long-term of in this the debt and value XX% outstanding of intrinsic million, XX% maximize preferred stand settled strategy warrants, returns. our $XXX We the equity, our of equity. of today, than ago. unitholder XXXX, nearly a our stand should turn, and embarking the business, is total that just from XXX% maximize at best off to As which obligations, derisking we debt include firm of paid in our decrease the approximately strategy more redeemed preferred our which year

performance high that soda years. ash, volatile high met supply which believe for strong prices record coal remain recent will foreseeable our will muted of in future. were drivers the likely for both new metallurgical investment for not highs We coal prices primary historically but from and at recent levels have provide record declined seen in support The and the

Soda from a several ash significant in under prices United and in projects Turkey absorb to for We take new market it States. are pressure from supplies. capacity the global China, increase will these believe also new the years

decline improving, While free the level future. we flow we to is will business robust free partnership's cash foreseeable flow continue of levels factors, to for generate to and the the cash expect solid structure capital and due from these anticipate XXXX's our record

and remain to cover to liabilities expect help owning We debt all pay associated stock on off tax unitholder while unit preferred NRP paying common track units. to common with distributions

above or Our in at XXXX. Mineral free norms. the XXXX, prices million cash declined of during generated first quarter versus but historical remain of Rights metallurgical flow QX $XX business coal generally

continued remains net due future for and While the expect the that stay in demand supply to we remain downward and modest long-term prices demand. domestic gas, investment will way foreseeable and levels global volatile, inventory in new trends it as by balance, put believe demand prices we the to and driven met natural volatility pressure high low supply. quarter U.S. price on Thermal experienced weather significant coal during mild reasonable

and solid rebound international record will long-term coal not are thermal foreseeable the to its we secular domestic term, thermal will the levels believe coal at While the future years, thermal competitive for market sources compared levels that of support in believe to continue seen high Longer when investment in we historical recent decline. price demand under provide prices do should new norms. production

to Moving XXXX. the of from distribution first received Wyoming in cash We a quarter million Sisecam, $XX Soda Ash.

was were soda remain during market the market. much in pressure the first last trend XXXX with the were paid as oversupplied the quarter. This ash they quarterly to in ash fourth that supply distribution connection putting continues prices, began second half quarter performance The than soda downward year on higher a when flooded prices of new

Despite quarter future this reflects prior and distributions net investment expect Our from quarters our adjust lower challenging first Sisecam, ash we outlook to for market, soda in price Wyoming our remains income accordingly. environment positive. to the weaker present Wyoming long-term compared Sisecam,

product and has the world's lowest-cost by for of the electrification driven fundamentals, urbanization, the long-term producers the fleet. that megatrends global of of one favorable are energy a We renewable auto

Ash value and generating Soda key today long business NRP in asset run. in for unitholders remains Our the a

We of lease generation the continue underground our mineral surface permanent wind for sequestration, using to and electricity lithium opportunities assets to forest sequestration, and solar COX energy. production and explore geothermal

from could requiring from development, initiatives potential full carbon-neutral While NRP. upside significant capital industry by we decades still all be carbon-neutral the our investment the believe while no is

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

Christopher Zolas

quarter you, cash million income despite net $XX $XX coal XXXX, Thank markets. soda of ash in and weakening first generated and the of NRP flow In Craig. both operating million of

Moving to our results. segment

operating respectively, our the prior of Mineral When net compared income during year, segment's Our to and metallurgical Rights and $X cash generated net coal quarter Mineral segment flow primarily Rights XXXX. million, of due first prices. $XX $X operating flow lower million and cash income million of decreased the to million $XX

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

Shifting to first from segment cash sales million million year income to due prices, sales compared to this quarter. $XX the international to quarter quarter from prices sales in compared as Net China compared increased prior business the decreased Soda the in resulted supply XXXX prior and significantly segment. of that Ash $X our prior lower the slightly quarter. year year volumes Operating to lower flow increased domestic as lower

paid in was the quarter XXXX distribution sales As with XXXX with fourth earlier, higher domestic QX in A and of we of international prices. performance. connection period received Craig mentioned the

segment. to Corporate and Financing Moving our

decreased net paid operating and on were warrants. $X primarily outstanding. in combination After interest common a this cash with interest outstanding of issuing facility million we first with NRP issuing and million settle $XX common April flow the cash to of warrants higher income million million remain XXXX X.X settlement, no X.X units. XXX,XXX of and a we the $XX and used due less our outstanding to for units. borrowings over of quarter April, the credit In First increased quarter warrants because bit remaining XX,XXX settled that cash than cash settled of expense bit a XXXX, million And warrants of

existing XX% of equity just X first This increase million quarter we'll this capacity warrants remaining borrowing continue credit We've flow doing the so and capacity million to the credit and represents of our accordion the from of borrowing in on facility permanently redeem million feature with used retire utilized we reach In our to added year an to available facility, the preferred us. full $XX of equity. along cash XXXX, and ago. amount to $XXX free preferred $XX

on to goal remain earlier, made of significant obligations mentioned and laser-focused eliminating up preferred on Craig our our long-term we've our and debt obligations, remaining eliminate made As progress we equity.

significantly the $XXX potentially warrants settlement has $XXX the point effect I'd equity preferred by like and equity warrants. the million of of million reduced and dilutive of preferred been redemption to that a of of original out

the QX diluted our the weighted QX diluted down EPU XXXX evidence, prior Consequently, per unit year units prior XXXX though the income was common XX% compared quarter. As even to of year the year average increased common our X% quarter. compared compared to quarter, number to prior in decreased XX% almost basic net

we a our quarter unit in distribution and cash And unitholder owning of distribution special to preferred units per questions. Finally, we with to distribution XXXX. our quarter that, of XXXX, preferred common announced and unit cash we a distribution back turn And $X.XX $X common first paid unitholders. unitholders. distribution the paid In $X tax and regarding announced help over for $X.XX operator to a our our of a liabilities common cover I'll call $X.XX common today, fourth of of to million per quarterly with associated in March NRP's our unit million distributions February per XXXX,

Operator

Instructions]. [Operator

of comes The of LLC. the question from line Stewart Capital N.A.S. Nat first

Nathanael Stewart

existing I the the just any updates on Or had question. any storage? have one there Is going agreements Is there with for update information might on on on any permitting there? the anything process? what's going you carbon on

Craig Nunez

not. we Unfortunately, do

Operator

over now I remarks. will conference for questions. There turn the to Craig closing back are Nunez no

Craig Nunez

for and our and in support for Have a you, you participating you, NRP. Thank your operator, thank thank continued great day. Bye. everyone, of call,

Operator

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

You may disconnect. now

Natural Resource Partners (NRP) 7 May 242024 Q1 Earnings call transcript