NRP - Earnings call transcript Q4 2024 | Natural Resource Partners L.P.

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Operator

Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Natural Resource Partners LP Fourth Quarter 2024 Earnings Conference Call.

[Operator Instructions]

to call like Sammis, to now Relations. Investor would turn over the Tiffany I ahead. go Please

Tiffany Sammis

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

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

that views could may about comments our forward-looking of today include risks forward-looking and reflecting our involve our to uncertainties events. future results NRP's cause These actual from materially matters Some statements differ statements.

discussed NRP's publicly obligation are to risks reason. forward-looking and These no Commission update or any in any other Exchange Securities and revise undertake statements XX-K We filings. for Form

Our comments today also measures. include financial non-GAAP

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

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

Craig Nunez

all all Thank preferred million of redeemed generated you, units morning, $XXX and cash XXXX. flow, and Tiffany, NRP free in good everyone. outstanding settled warrants remaining

and XXXX. the facility remain value per $XXX by maturity to commitment to by maximize best intrinsic steadfast Additionally, the we increased in our way credit the and We delever million, we facility to years capacity derisk which X extended $XX unit. believe million to date that our partnership, of is

last currently only XX $X.X remaining. over billion and $XXX off financial have debt of over paid have the obligations We million of years

soft We coal electric to year half prices coal term American high in highs by generating due global the near coal rebound inventory prices steel Metallurgical demand to levels North expect and facilities. natural seen not low-priced and last gas from do the in thermal dropped XXXX. at

increased at coal shortages. production historical and coal coal limited costs, costs limited trends increased compared believe should metallurgical long-term ongoing when secular prices in levels demand steel labor term, long for also prices labor the and higher investment production investment, Thermal should new for Over benefit from shortages supply norms. new to we support provide

be long-term these decline to in offset by the we demand. However, more American thermal expect than factors secular continued North

many Turning to market Soda China. a primarily $XX XXXX, demand in the record million construction Sisecam decrease from roughly in production soda due factors the market waned in activity from for million producers XXXX Ash. as the fell of take $XX we levels costs the capacity We global year. is have most distributions slowing cash highs environment. received was prices previous and for and through currently ash Wyoming with below believe challenges, of Wyoming flooded and prices well with XX% difficult believe years we years. immune fully to remain to the market several to producers, to lowest paid one it for But several for drive of historical not the world's we us production manage below expect distributions these to as materially Sisecam this will cost the sales prices flight capacity soda ash to class in for We next are new These decades producers. absorb macroeconomic created excess higher. from positioned

assets energy. sequestration, and and explore the dioxide using generation solar underground County, notified carbon activity XXXX Alabama executed not our that our lease us Furthermore, to be to opportunities on for and -- activity picked carbon recently, forest in our lackluster. production carbon-neutral wind leasing our Regarding their will initiatives, surface of sequestration geothermal, renewing on carbon Geothermal in and sequestration, has lithium up permanent -- lease lithium remains leasing but electricity mineral sequestration Baldwin we has dioxide COX XXXX continue acreage. they Exxon

COX for political, upside our contemplating potential general in we continues large and carbon-neutral significant exists specifically, While for a our capital regulatory space, with investments. to and developers pose assets sequestration challenge believe market uncertainty

shaping X NRP a will key our to XXXX the position be due up today generation Lower lower any strides attractive difficult in a dramatic year cash at decade. to to itself a business, to recent lead financial time than compared is the in over for prices to years. free But flow more delever commodities. the made finds

available debt financed, turn our next debt, financials. as And Chris it of amounts free generating potential to off relative increases year. flow with large remaining with for cash cash We conservatively over is for to unitholders paid are common I'll noteworthy in our the for that,

Christopher Zolas

of you, Craig. income, flow, In cash of generated million cash of NRP million fourth of XXXX, $XX $XX quarter net free and million the $XX Thank flow. operating

QX, NRP million of cash For million of our segment million $XX million Rights a flow $XXX and million operating cash operating $XXX full net $XX year net income, and XXXX, In flow. of of free generated $XXX Mineral income, of generated both and flow. cash free

million $XXX cash year, income, flow. of of generated operating $XXX million million of For cash free $XXX full segment the the net flow, and

met cash to prior net These decreases due coal prices. million flow primarily to decreased demand that operating and the mineralized quarter, coal both compared decreased lower and in year's sales When segment thermal fourth were $X resulted income our $XX weaker free million.

income These million, million Like partially forest-related year million. operating lease fees. year net due that royalties. decreases Full of a and cash $XX of were to settlement, offset lost by variance, that revenue amount our recovery onetime free partially prior the carbon-neutral QX XXXX decreased and offset of flow $XX cash in year quarter-to-date million coal in gas cash flow the decreased onetime $XX revenue and $XX full fees, transactions both pipeline-driven they the resulted $XX from were year for million segment decreases carbon of and to compared Mineral and from XXXX Rights that consisted and million primarily transactions amendment revenues forest-related thermal primarily consisted markets However, of full coal and flow neutral oil of and $XX by weaker prices. of lease met primarily in revenue, disputed coal sales lower were in

quarter Ash segment. XXXX $XX periods. year and our revenues, volumes. million, QX XX% NRP's of decreased met revenues made full coal coal of thermal the compared Regarding coal business for royalty coal respectively, full of sales XX% met the approximately royalty approximately XX% royalty sales our XXXX, year $XX and to royalty And volumes. core and made million our of to up income as Shifting coal royalty prior our XX% up Net fourth mix, coal year in met of Soda and

prior construction cash ash addition, full periods. quarter weakened were for $X $XX and for decreased fourth market free compared to flow In million, as and the due primarily and lower decreases to oversupplied demand XXXX prices, and the operating year respectively, soda driven flat sales an These year million, glass. by of

significantly demand Sisecam Soda to has we glass absorb for from the received ash is able market the business' seen and performance. muted flat pricing highs reflect additional record rebounds declined our distributions to prices to the and expect and supply China, the from remain until in XXXX from

us all of warrants, our of obligations Financing million Corporate year-end. leaving with debt we our remaining only XXXX, and to units at preferred $XXX In Moving redeemed segment. and

maturity facility XXXX, October to million also XX% over the almost in expanding from $XXX it We $XXX and by and X extended our on extending years lengthened million, XXXX. credit date the runway to

QX, by For cash compared employee-related as due payments Financing each $X flow Corporate outstanding. lower the compared improved prior to financial year year interest to by operating million QX less net the primarily results, In to expenses. primarily and segment's income free $X the flow and to prior period, cash due to million due lower debt period, improved

net operating and cash income each flow $X prior and flat remained year XXXX, the relatively flow as free million period. year full cash compared to decreased For

no million impact a having cash the preferred of cash cash annual distribution for in XX% preferred longer preferred outflow. elimination Keep The while flow operating $XX facility of interest primarily units result borrowings the as million used on full retire were pay not were to decrease distribution the year us that does and to to due free in permanently mind flow $XXX credit of our cash units higher paid warrants. saves free of metric, unit a that and

paid month, we this our common November quarter in we regarding distributions, distribution earlier unit. XXXX, fourth and per distribution a quarterly quarter third of and and paid a declared Lastly, declared common unit, per $X.XX of $X.XX

owning XXXX. common liability over NRP common for our the Today, to to we in that, I'll distribution And announced with associated of turn $X.XX a questions. units the special cover per unit operator, call with Kate, tax

Operator

[Operator Instructions]

back to Craig Nunez now closing turn call will remarks. I the for

Craig Nunez

joining for have Kate, Goodbye. thank and Thank day. you all much, a and very our great call, you

Operator

call. and today's day. concludes Thank that and Ladies a great gentlemen, have you,

Natural Resource Partners (NRP) 28 Feb 252024 Q4 Earnings call transcript