- Natural Resource Partners L.P. (NRP, Financial) declared a Q1 2025 distribution of $0.75 per common unit.
- The company generated $35.1 million of free cash flow in Q1 2025.
- NRP has $139 million of debt remaining and plans to increase unitholder distributions as debt is paid off.
Natural Resource Partners L.P. (NRP) has announced its financial results for the first quarter of 2025, highlighting a free cash flow of $35.1 million. The company has declared a cash distribution of $0.75 per common unit for the same quarter, which will be paid on May 27, 2025, to unitholders of record on May 20, 2025. This follows the recent payout of a special cash distribution of $1.21 per unit to cover unitholder tax liabilities from 2024.
NRP's president and COO, Craig Nunez, commented on the company's performance, noting expectations for weak metallurgical and thermal coal prices due to soft global steel demand and elevated thermal coal inventories in power plants. Despite these challenges, NRP remains confident in its strong capital structure and is strategically positioned to enhance unitholder value as they continue to pay down $139 million of remaining debt, potentially increasing future distributions.
In sector performance, the Mineral Rights segment experienced a decline in revenue primarily due to lower metallurgical coal sales prices and volumes, leading to a decrease in net income by $15.4 million from the previous year. Meanwhile, Soda Ash revenues also declined by $0.8 million compared to the previous year, impacted by increased international sales mix and ongoing global capacity pressures, particularly in China.
Looking forward, NRP continues to explore opportunities in carbon neutral revenue streams, including underground carbon dioxide sequestration and renewable energy generation through geothermal, solar, and wind energy. The company aims to leverage its extensive mineral and surface assets across the United States to create additional value with minimal capital investment.
