Natural Resource Partners Lp Limited Partnership · NYSE:NRP
Natural Resource Partners Lp Limited Partnership — Natural Resource Partners — Q1 2025 Earnings Presentation
21 slides from Natural Resource Partners Lp Limited Partnership's earnings presentation, May 6, 2025
Slide 1: Investor Presentation
May 2025 Investor Presentation Natural Resource Partners L.P.
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes “forward looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Natural Resource Part
Slide 3: Management Philosophy
Management Philosophy We believe that as your partner, management’s economic interests should be aligned with unitholders ⎯ Every member of the executive team has a meaningful portion of their net worth invested in NRP ⎯ NRP executives and board of directors own approximately 25% of the Partnershi
Slide 4: NRP's Business – What We Own
NRP’s Business – What We Own NRP owns approximately 13 million acres of mineral interests and other property rights across the United States ⎯ If combined in a single tract, our ownership would cover roughly 20,000 square miles ⎯ Our ownership includes approximately 3.5 million acres of undergroun
Slide 5: NRP's Business – What We Do Not Do
NRP’s Business – What We Do Not Do We do not conduct “operations” on any of our assets or directly engage in any type of industrial activity; instead, we lease our mineral and other rights to companies that conduct operations on our properties in exchange for paying royalties and other fees to us
Slide 6: NRP's Asset Ownership
NRP’s Asset Ownership NRP headquarters in Houston, Texas and Huntington, West Virginia Sisecam Wyoming, LLC NRP Ownership ©2025 Natural Resource Partners, L.P. 6
Slide 7: Strategy
Strategy 2015 marked a watershed event in the history of the Partnership ⎯ Falling commodity prices and high debt levels pushed our financial capacity to the brink ⎯ We had almost $1.5 billion of debt, representing more than two-thirds of our capital structure ⎯ Our bonds were trading at 65 cents
Slide 8: Strategy (continued)
Strategy (continued) Today, the Partnership is dramatically healthier and financially stronger ⎯ Operating and interest expenses are each more than 70% lower than they were when we began ⎯ Free Cash Flow, which had been negative, was $313 million in 2023, $251 million in 2024, and $214 million in
Slide 9: NRP's Committed To Eliminating Outstanding Obligations
NRP’s Committed To Eliminating Outstanding Obligations ($ in millions) Our 2024 interest expense was almost $80 million less than ten $1,600 years ago, and redemption of all Preferred Equity saves an $1,400 additional $30 million annually $1,200 $1,000 $800 Debt Warrants (1) $600 $400 $200 $0 2014 2
Slide 10: Financial Obligations
Free Cash Flow Generation LTM FCF Financial Obligations (debt, preferred equity, and warrants) ($ in millions) $350 $1,600 $313 $300 $1,400 $268 $251 $1,200 $250 Financial Obligations $214 LTM Free Cash Flow $1,000 $200 $158 $800 $144 $139 $150 $121 $123 $600 $100 $89 $76 $400 $50 $200 $0 $0 (1) 201
Slide 11: NRP Financial Overview
NRP Financial Overview LTM Ended March 31, 2025 ($ in millions) Business Net Free Cash Segment Income Flow(1) Mineral Rights $191 $218 Soda Ash 17 27 Corporate Financing Costs(2) (15) (14) Corporate G&A Costs(2) (26) (17) NRP Consolidated $168 $214 Note: May not foot due to rounding (1) Non-GAAP fin
Slide 12: Mineral Rights Segment Overview
Mineral Rights Segment Overview NRP owns, manages, and leases mineral properties in the United States including interests in coal, industrial minerals, and other natural resources, as well as rights to sequester carbon dioxide underground and in standing forests and opportunities for renewable ene
Slide 13: Mineral Rights Segment Overview (continued)
Mineral Rights Segment Overview (continued) Mineral Rights segment generated $218 million of Free Cash Flow(1) in the LTM ended March 31, 2025 ⎯ Approximately 45% of segment revenues were derived from metallurgical royalty revenue Metallurgical coal is essential in the steel-making process Does
Slide 14: Coal Royalty Revenue Map
Coal Royalty Revenue Map Northern Powder River Basin Northern Appalachia 2024 Tons 2.8 mm tons 2024 Tons 1.0 mm tons Sold Sold 2024 Royalty 2% 2024 Royalty 9% Revenues Revenues Coal Type Metallurgical / Coal Type Thermal Thermal Key Lessees Core Natural Key Lessees Western Energy Resources / ARLP Il
Slide 15: Carbon Neutral Initiatives (CNI)
Carbon Neutral Initiatives (CNI) In 2019, we began to identify alternative revenue sources across our large portfolio of land and mineral assets, which includes the legal rights to sequester carbon dioxide (CO2) in approximately 3.5 million acres of pore space The types of opportunities include
Slide 16: Soda Ash Segment Overview
Soda Ash Segment Overview NRP owns a 49% equity interest in Sisecam Wyoming, LLC, a trona mine and soda ash production facility in the Green River Basin, Wyoming ⎯ NRP receives distributions from Sisecam Wyoming which are reported as Free Cash Flow ⎯ Soda Ash segment generated $27 million of Free
Slide 17: Soda Ash Segment Overview (continued)
Soda Ash Segment Overview (continued) Sisecam Wyoming is a natural soda ash facility in the Green River Basin, which has lower production costs and a better environmental profile than competing synthetic producers (moved from the previous slide) Green River Basin in Wyoming is the largest natura
Slide 18: Capital Structure
Capital Structure Total Capital as of 3/31/25 ($ in millions) Debt $139 Common Equity 554 Total Capital $693 ©2025 Natural Resource Partners, L.P. 18
Slide 19: Appendix
Appendix ©2025 Natural Resource Partners, L.P. 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations ©2025 Natural Resource Partners, L.P. 20
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations “Free cash flow” or "FCF" is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities of continuing operations plus distributions from unconsolidated investment in excess of cumulative earnings and return of long-term contract receiv
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