Natural Resource Partners (NRP) Q4 2024 earnings summary

Executive summary

• Generated $251 million of free cash flow in 2024, with net income of $183.6 million, and fully redeemed all preferred units and warrants, ending the year with $142 million in debt.

• Increased credit facility by $45 million (29%) to $200 million and extended maturity to 2029.

• Paid total distributions of $5.44 per common unit, including special distributions to cover 2023 and 2024 tax liabilities.

• Liquidity at year-end was $116.7 million, including $30.4 million in cash and $86.3 million in available credit.

• Paid off over $1.3 billion in financial obligations over 10 years, with $142 million debt remaining.

Financial highlights

• 2024 revenues were $268.0 million, down from $370.0 million in 2023.

• Net income attributable to common unitholders was $151.8 million for 2024, compared to $196.8 million in 2023.

• Adjusted EBITDA for 2024 was $235.5 million, down from $319.7 million in 2023.

• Free cash flow for 2024 was $251.2 million, compared to $313.4 million in 2023.

• Declared and paid $0.75 per common unit for Q3 and Q4, plus a $1.21 special distribution.

Outlook and guidance

• Metallurgical and thermal coal prices are expected to remain weak in 2025, with no significant changes anticipated.

• Soda ash prices are projected to stay low for several years due to global overcapacity and weak demand.

• Distributions from soda ash segment expected to remain below historical levels for several years.

• Expect lower free cash flow in 2025 due to lower commodity prices.

• Do not expect near-term rebound in coal prices due to soft global steel demand, low-priced natural gas, and high coal inventories.