NRP Q2 2024: $13M Assets, $4.97M Preferred Unitholder Income

TL;DR

**NRP Q2: $13M assets, $4.97M to preferred holders. Special tax distributions noted.**

AI Summary

Natural Resource Partners LP (NRP) reported its Q2 2024 results, showing total assets of $13,049,123. The company's net income for the period included $4.97 million attributable to preferred unitholders, with $4.87 million allocated to common unitholders. The filing also mentions special distributions made in 2022 and 2023 to assist unitholders with tax liabilities.

Why It Matters

This filing provides insight into Natural Resource Partners LP's financial health and its distribution policies, which can impact investor returns and tax obligations.

Risk Assessment

Risk Level: medium — The company's financial performance and distributions are subject to the volatile energy commodity markets.

Key Numbers

• $13.05M — Total Assets (As of Q2 2024)
• $4.97M — Preferred Unitholder Income (Included in net income for the period)
• $4.87M — Common Unitholder Allocation (Portion of preferred unitholder income allocated to common units)

Key Players & Entities

• Natural Resource Partners LP (company) — Filer of the 10-Q
• Q2 2024 (date) — Reporting period
• $13,049,123 (dollar_amount) — Total assets
• $4.97 million (dollar_amount) — Income attributable to preferred unitholders
• $4.87 million (dollar_amount) — Income allocated to common unitholders
• 2022 (date) — Year of special distribution
• 2023 (date) — Year of special distribution

FAQ

Key Financial Figures

• $2.15 million — $ 498,407 (1) Net income includes $2.15 million of income attributable to preferred uni
• $2.11 million — accumulated during the period, of which $2.11 million is allocated to the common unitholders
• $0.04 million — allocated to the common unitholders and $0.04 million is allocated to the general partner. (
• $1.44 million — eral partner. (2) Net income includes $1.44 million of income attributable to preferred uni
• $1.41 million — accumulated during the period, of which $1.41 million is allocated to the common unitholders
• $0.03 million — allocated to the common unitholders and $0.03 million is allocated to the general partner.
• $6.66 million — $ 499,760 (1) Net income includes $6.66 million of income attributable to preferred uni
• $6.53 million — accumulated during the period, of which $6.53 million is allocated to the common unitholders
• $0.13 million — allocated to the common unitholders and $0.13 million is allocated to the general partner. (
• $4.97 million — eral partner. (2) Net income includes $4.97 million of income attributable to preferred uni
• $4.87 million — accumulated during the period, of which $4.87 million is allocated to the common unitholders
• $0.10 million — allocated to the common unitholders and $0.10 million is allocated to the general partner.

Filing Documents

• nrp20240630_10q.htm (10-Q) — 2029KB
• ex_681855.htm (EX-31.1) — 13KB
• ex_681856.htm (EX-31.2) — 12KB
• ex_681857.htm (EX-32.1) — 5KB
• ex_681858.htm (EX-32.2) — 5KB
• logo.jpg (GRAPHIC) — 4KB
• 0001437749-24-025065.txt ( ) — 8260KB
• nrp-20240630.xsd (EX-101.SCH) — 70KB
• nrp-20240630_cal.xml (EX-101.CAL) — 38KB
• nrp-20240630_def.xml (EX-101.DEF) — 453KB
• nrp-20240630_lab.xml (EX-101.LAB) — 366KB
• nrp-20240630_pre.xml (EX-101.PRE) — 481KB
• nrp20240630_10q_htm.xml (XML) — 1494KB

Financial Information

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 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

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

Signatures 32 i Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS NATURAL RESOURCE PARTNERS L.P. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 (In thousands, except unit data) (Unaudited) ASSETS Current assets Cash and cash equivalents $ 32,340 $ 11,989 Accounts receivable, net 30,624 41,086 Other current assets, net 3,114 2,218 Total current assets $ 66,078 $ 55,293 Land 24,008 24,008 Mineral rights, net 387,053 394,483 Intangible assets, net 13,143 13,682 Equity in unconsolidated investment 265,935 276,549 Long-term contract receivable, net 24,929 26,321 Other long-term assets, net 8,412 7,540 Total assets $ 789,558 $ 797,876 LIABILITIES AND CAPITAL Current liabilities Accounts payable $ 933 $ 885 Accrued liabilities 7,225 12,987 Accrued interest 319 584 Current portion of deferred revenue 4,449 4,599 Current portion of long-term debt, net 14,214 30,785 Total current liabilities $ 27,140 $ 49,840 Deferred revenue 40,433 38,356 Long-term debt, net 196,112 124,273 Other non-current liabilities 6,619 7,172 Total liabilities $ 270,304 $ 219,641 Commitments and contingencies (see Note 13) Class A Convertible Preferred Units ( 31,666 and 71,666 issued and outstanding at June 30, 2024 and December 31, 2023, respectively, at $ 1,000 par value per unit; liquidation preference of $ 1,850 per unit at June 30, 2024 and December 31, 2023) (See Note 3) $ 20,847 $ 47,181 Partners' capital Common unitholders' interest ( 13,049,123 and 12,634,642 units issued and outstanding at June 30, 2024 and December 31, 2023, respectively) $ 490,877 $ 503,076 General partner's interest 8,568 8,005 Warrant holders' interest — 23,095 Accumulated other comprehensive loss ( 1,038 ) ( 3,122 ) Total partners' capital $ 498,407 $ 531,054 Total liabilities and partners' capital $ 789,558 $ 797,876 The accompanying notes are an integral part of these consolidated financial statements. 1 Table of Contents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

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 June 30, For the Six Months Ended June 30, (In thousands) 2024 2023 2024 2023 Coal royalty revenues $ 39,685 $ 47,960 $ 86,503 $ 105,983 Production lease minimum revenues 412 562 1,336 1,175 Minimum lease straight-line revenues 4,126 4,447 8,297 8,950 Carbon neutral initiative revenues 2,200 115 4,361 2,233 Property tax revenues 1,545 1,470 3,437 2,940 Wheelage revenues 2,338 3,284 5,010 7,153 Coal overriding royalty revenues 668 150 1,837 338 Lease amendment revenues 712 848 1,414 1,699 Aggregates royalty revenues 730 686 1,502 1,439 Oil and gas royalty revenues 1,999 1,214 5,639 4,802 Other revenues 176 271 829 566 Royalty and other mineral rights revenues $ 54,591 $ 61,007 $ 120,165 $ 137,278 Transportation and processing services revenues 2,085 2,641 4,921 5,574 Total Mineral Rights segment revenues from contracts with customers $ 56,676 $ 63,648 $ 125,086 $ 142,852 The following table details the Partnership's Mineral Rights segment receivables and liabilities resulting from contracts with customers: June 30, December 31, (In thousands) 2024 2023 Receivables Accounts receivable, net $ 26,679 $ 37,206 Other current assets, net (1) 2,219 429 Contract liabilities Current portion of deferred revenue $ 4,449 $ 4,599 Deferred revenue 40,433 38,356 ( 1 ) Other current assets, net includes short-term notes receivables 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 Six Months Ende

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

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. As of June 30, 2024, the Partnership has redeemed $ 218.3 million of the preferred units and $ 31.7 million 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. After March 2, 2022 and prior to March 2, 2025, the holders of the preferred units may elect to convert up t

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (Unaudited) 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

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