NATURAL RESOURCE PARTNERS LP
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
NRP$117.71+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001437749-25-014693
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001437749-25-024999
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 81 previous paragraphs and 109 current paragraphs.
60 unchanged; 19 reworded; 20 added; 2 removed; 0 previous and 10 current paragraphs rearranged.
Tables are not compared: 14 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Metallurgical and thermal coal prices remained weak throughout the quarter, and we expect muted pricing for both commodities for the remainder of 2025. Stagnant global steel demand and regulatory uncertainty continue to impact metallurgical coal markets and more than substantial thermal coal inventory levels at domestic power plants continue to stifle domestic thermal markets.
Current report
Other revenues decreased $2.2 million primarily as a result of a non-recurring carbon neutral transaction in the second quarter of 2024.
Current report
Gain on Asset Sales and Disposals
Current report
Gain on asset sales and disposals decreased $3.9 million during the three months ended June 30, 2025 as compared to the prior year quarter primarily as a result of a coal property condemnation in the second quarter of 2024.
Current report
Interest Expense, Net
Current report
Interest expense, net, decreased $2.0 million primarily due to lower borrowings outstanding on the Opco Credit Facility during the three months ended June 30, 2025 as compared to the prior year quarter.
Current report
First Six Months of 2025 and 2024 Compared
Current report
Revenues and Other Income
Current report
Mineral Rights
Current report
Coal Royalty Revenues
Current report
Other Revenues
Current report
Other revenues decreased $6.9 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to a $3.5 million decrease in carbon neutral revenues primarily as a result of a non-recurring carbon neutral transaction in the second quarter of 2024, in addition to a $2.2 million decrease in other revenues.
Current report
Gain on Asset Sales and Disposals
Current report
Gain on asset sales and disposals decreased $3.8 million during the six months ended June 30, 2025 as compared to the prior year period primarily as a result of a coal property condemnation in the second quarter of 2024.
Current report
Soda Ash
Current report
Revenues and other income related to our Soda Ash segment decreased $2.0 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to lower sales prices in 2025.
Current report
Interest Expense, Net
Current report
Interest expense, net, decreased $2.8 million during the six months ended June 30, 2025 as compared to the prior year period primarily due to lower borrowings outstanding on the Opco Credit Facility during the six months ended June 30, 2025.
Current report
Operating cash flow, DCF and FCF decreased $48.1 million, $51.8 million and $48.0 million, respectively, as compared to the prior year period. The discussion by segment is as follows:
Current report
Cash flows provided by investing activities decreased $3.7 million primarily related to a coal property condemnation in the second quarter of 2024.
Removed paragraphs (2)
Previous report
We expect pricing in 2025 to remain muted for both metallurgical and thermal coal as soft global steel demand impacts metallurgical coal and domestic thermal coal inventory levels at power plants, while declining, remain well above their historical 5-year average. Despite this weakened and uncertain environment, we expect continued price support above the historically normal price levels due to elevated input cost inflation, operators' limited access to capital, and qualified labor shortages.
Previous report
Other revenues decreased $4.8 million primarily as a result of a $2.3 million decrease in other revenues, a $1.6 million decrease in carbon neutral revenues and a $1.2 million decrease in oil and gas royalty revenues.
Reworded paragraphs (19)
Previous wording
The following review of operations for the three month periods ended March 31, 2025 and 2024 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, 2024.
Current wording
The following review of operations for the three and six month periods ended June 30, 2025 and 2024 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, 2024.
Previous wording
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, including 3.5 million acres of underground pore space for the sequestration of carbon dioxide. Our assets provides critical inputs for the manufacturing of steel, electricity building materials, and components used in the generation of renewable energy.
Current wording
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, including 3.5 million acres of underground pore space for the sequestration of carbon dioxide. Our assets provide critical inputs for the manufacturing of steel, electricity, building materials, and components used in the generation of renewable energy.
Previous wording
Our financial results by segment for the three months ended March 31, 2025 are as follows:
Current wording
Our financial results by segment for the six months ended June 30, 2025 are as follows:
Previous wording
We generated $34.4 million of operating cash flow and $35.1 million of free cash flow during the three months ended March 31, 2025, and ended the quarter with $120.5 million of liquidity consisting of $30.9 million of cash and cash equivalents and $89.6 million of available borrowing capacity under our Opco Credit Facility. As of March 31, 2025 our leverage ratio was 0.7 x.
Current wording
We generated $80.0 million of operating cash flow and $81.4 million of free cash flow during the six months ended June 30, 2025, and ended the quarter with $157.5 million of liquidity consisting of $30.3 million of cash and cash equivalents and $127.1 million of available borrowing capacity under our Opco Credit Facility. As of June 30, 2025 our leverage ratio was 0.5 x.
Previous wording
In February 2025, we paid a cash distribution of $0.75 per common unit of NRP with respect to the fourth quarter of 2024. In March 2025, we paid a special cash distribution of $1.21 per common unit of NRP to help cover unitholder tax liabilities associated with owning NRP's common units in 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.
Current wording
In February 2025, we paid a cash distribution of $0.75 per common unit of NRP with respect to the fourth quarter of 2024. In March 2025, we paid a special cash distribution of $1.21 per common unit of NRP to help cover unitholder tax liabilities associated with owning NRP's common units in 2024. In May 2025, we paid a cash distribution of $0.75 per common unit of NRP with respect to the first quarter of 2025. 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.
Previous wording
Revenues and other income during the three months ended March 31, 2025 decreased $15.0 million, or 21%, as compared to the prior year period. Cash provided by operating activities and free cash flow during the three months ended March 31, 2025 each decreased by $26.5 million, as compared to the prior year period. These decreases were primarily due to lower metallurgical coal sales prices and volumes as compared to the prior year period.
Current wording
Revenues and other income during the six months ended June 30, 2025 decreased $29.4 million, or 22%, as compared to the prior year period. Cash provided by operating activities and free cash flow during the six months ended June 30, 2025 decreased by $37.2 million and $37.1 million, respectively, as compared to the prior year period. These decreases were primarily due to lower metallurgical coal sales prices and volumes as compared to the prior year period.
Previous wording
We continue to explore carbon neutral revenue opportunities across our mineral and surface assets for the sequestration of carbon dioxide underground and in standing forests, lithium production, and the generation of electricity using geothermal, solar, and wind energy. While the timing and likelihood of additional cash flows from these activities is uncertain, we believe our vast ownership footprint throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by us.
Current wording
We continue to explore carbon neutral revenue opportunities across our mineral and surface assets. While the timing and likelihood of additional cash flows from carbon neutral activities such as the sequestration of carbon dioxide underground and in standing forests, lithium production, and electric generation via renewable energy sources is uncertain, we believe our vast ownership footprint throughout the United States provides additional opportunities to create value in this regard with minimal capital investment by us.
Previous wording
Revenues and other income during the three months ended March 31, 2025 decreased $0.8 million, or 15%, as compared to the prior year period primarily due to increased international sales mix in 2025.
Current wording
Revenues and other income during the six months ended June 30, 2025 decreased $2.0 million, or 22%, as compared to the prior year period primarily due to lower sales prices in 2025.
Previous wording
Cash provided by operating activities and free cash flow during the three months ended March 31, 2025 each decreased $11.3 million as compared to the prior year period due to a lower cash distribution received from Sisecam Wyoming in the first quarter of 2025.
Current wording
Cash provided by operating activities and free cash flow during the six months ended June 30, 2025 each decreased $14.0 million as compared to the prior year period due to lower cash distributions received from Sisecam Wyoming in the first half of 2025.
Previous wording
The soda ash market continues to be impacted by significant recent increases in global capacity introduced in 2024, primarily from China, as well as weakening demand for flat glass due to slower growth in global construction activity and lower demand for automobiles. International soda ash prices remain at or below the cost of production for many operators. We believe this weak pricing environment will continue throughout 2025 and into 2026 unless there is a significant rightsizing of high-cost producers shutting down out-of-the-money production or a significant rebound in the demand for flat glass. As such, we expect distributions from Sisecam Wyoming to remain at lower levels for the foreseeable future.
Current wording
The soda ash market remains significantly oversupplied due to the substantial increase in global capacity in recent years, as well as weakening demand for flat glass due to sluggish global construction activity and decreased demand for new automobiles and solar panels. We believe international soda ash prices are at or below the cost of production for many operators and expect this weak pricing environment to continue for the foreseeable future until high-cost supply is forced out of the market or global soda ash demand growth catches up with supply. We expect distributions from Sisecam Wyoming to remain below historical norms for the foreseeable future.
Previous wording
First Quarter of 2025 and 2024 Compared
Current wording
Second Quarter of 2025 and 2024 Compared
Previous wording
Approximately 55% of coal royalty revenues and approximately 40% of coal royalty sales volumes were derived from metallurgical coal during the three months ended March 31, 2025. Total coal royalty revenues decreased $11.3 million as compared to the prior year quarter primarily due to lower metallurgical coal sales prices and volumes during the three months ended March 31, 2025, as compared to the prior year quarter.
Current wording
Approximately 70% of coal royalty revenues and approximately 55% of coal royalty sales volumes were derived from metallurgical coal during the three months ended June 30, 2025. Total coal royalty revenues decreased $8.1 million as compared to the prior year quarter primarily due to lower metallurgical coal sales prices and volumes during the three months ended June 30, 2025 as compared to the prior year quarter.
Previous wording
Revenues and other income related to our Soda Ash segment decreased $0.8 million as compared to the prior year quarter primarily due to increased international sales mix in 2025.
Current wording
Revenues and other income related to our Soda Ash segment decreased $1.1 million as compared to the prior year quarter primarily due to lower sales prices in 2025.
Previous wording
Net income decreased $16.0 million as compared to the prior year quarter primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $27.9 million as compared to the prior year quarter primarily due to an $16.1 million decrease in Adjusted EBITDA within our Mineral Rights segment driven by the lower revenues and other income as discussed above in addition to an $11.3 million decrease in Adjusted EBITDA within our Soda Ash segment driven by a lower cash distribution received from Sisecam Wyoming in the first quarter of 2025.
Current wording
Net income decreased $11.9 million as compared to the prior year quarter primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $15.0 million as compared to the prior year quarter primarily due to a $12.6 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 $2.7 million decrease in Adjusted EBITDA within our Soda Ash segment driven by a lower cash distribution received from Sisecam Wyoming in the second quarter of 2025.
Previous wording
Operating cash flow, DCF and FCF decreased $37.1 million, $36.9 million and $37.0 million, respectively, as compared to the prior year quarter. The discussion by segment is as follows:
Current wording
Operating cash flow, DCF and FCF decreased $11.1 million, $14.9 million and $11.0 million, respectively, as compared to the prior year quarter. The discussion by segment is as follows:
Previous wording
As of March 31, 2025, we had total liquidity of $120.5 million, consisting of $30.9 million of cash and cash equivalents and $89.6 million of borrowing capacity under our Opco Credit Facility. We have debt service obligations, including $14.3 million of principal repayments on Opco’s senior notes, throughout the remainder of 2025. The following table calculates our leverage ratio as of March 31, 2025:
Current wording
As of June 30, 2025, we had total liquidity of $157.5 million, consisting of $30.3 million of cash and cash equivalents and $127.1 million of borrowing capacity under our Opco Credit Facility. We have debt service obligations, including $14.3 million of principal repayments on Opco’s senior notes, throughout the remainder of 2025. The following table calculates our leverage ratio as of June 30, 2025:
Previous wording
Cash flows provided by operating activities decreased $37.1 million, from $71.5 million in thethree months ended March 31, 2024 to $34.4 million in thethree months ended March 31, 2025, primarilydue to decreased cash flow within our Mineral Rights and Soda Ash segments, all discussed above.
Current wording
Cash flows provided by operating activities decreased $48.1 million, from $128.1 million in the six months ended June 30, 2024 to $80.0 million in the six months ended June 30, 2025, primarily due to decreased cash flow within our Mineral Rights and Soda Ash segments, as discussed above, partially offset by lower cash paid for interest by our Corporate and Financing segment.
Previous wording
Cash used in financing activities decreased $38.4 million, from $73.3 million used in the three months ended March 31, 2024 to $34.9 million used in the three months ended March 31, 2025 due to the following:
Current wording
Cash flows used in financing activities decreased $31.4 million, from $113.9 million used in the six months ended June 30, 2024 to $82.5 million used in the six months ended June 30, 2025 due to the following:
Previous wording
These decreases in cash flow used were partially offset by $55.7 million in decreased debt borrowings during the three months ended March 31, 2025 as compared to the prior year period.
Current wording
These decreases in cash flow used were partially offset by $96.2 million of decreased debt borrowings during the six months ended June 30, 2025 as compared to the prior year period.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
The following table includes our revenues and other income by operating segment:
Current report — wording carried from elsewhere
The changes in revenues and other income are discussed for each of the operating segments below:
Current report — wording carried from elsewhere
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:
Current report — wording carried from elsewhere
Approximately 60% of coal royalty revenues and approximately 45% of coal royalty sales volumes were derived from metallurgical coal during the six months ended June 30, 2025. Total coal royalty revenues decreased $19.5 million as compared to the prior year period primarily due to lower metallurgical coal sales prices and volumes during the six months ended June 30, 2025, as compared to the prior year period.
Current report — wording carried from elsewhere
Adjusted EBITDA (Non-GAAP Financial Measure)
Current report — wording carried from elsewhere
The following table reconciles net income (loss) (the most comparable GAAP financial measure) to Adjusted EBITDA by business segment:
Current report — wording carried from elsewhere
Net income decreased $27.8 million as compared to the prior year period primarily due to the decrease in revenues and other income as discussed above. Adjusted EBITDA decreased $42.8 million as compared to the prior year period primarily due to a $28.7 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 $14.0 million decrease in Adjusted EBITDA within our Soda Ash segment driven by lower cash distributions received from Sisecam Wyoming in the first half of 2025.
Current report — wording carried from elsewhere
Distributable Cash Flow ("DCF") and Free Cash Flow ("FCF") (Non-GAAP Financial Measures)
Current report — wording carried from elsewhere
The following table presents the three major categories of the statement of cash flows by business segment:
Current report — wording carried from elsewhere
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: