Natural Resource Partners L.P. Reports Second Quarter 2025 Results

Natural Resource Partners L.P., a diversified natural resource company headquartered in Houston, TX, has released its financial results for the second quarter of 2025. The company, which manages a portfolio of properties including coal, industrial minerals, and other natural resources, also declared a second quarter distribution of $0.75 per common unit.

Financial Highlights

For the three months ended June 30, 2025, Natural Resource Partners L.P. reported a net income of $34.2 million, a decrease from the $46.1 million reported in the same period last year. Operating cash flow for the quarter was $45.6 million, while free cash flow stood at $46.3 million. Over the last twelve months, the company generated $203.1 million in free cash flow.

Despite weak prices for metallurgical coal, thermal coal, and soda ash, the company continues to generate significant free cash flow. The board of directors declared a second quarter 2025 cash distribution of $0.75 per common unit, to be paid on August 26, 2025, to unitholders of record on August 19, 2025.

Business and Operational Highlights

In the Mineral Rights segment, net income for the second quarter of 2025 decreased by $13.0 million compared to the prior year period, primarily due to lower metallurgical coal sales prices and volumes. Approximately 70% of coal royalty revenues and 55% of coal royalty sales volumes were derived from metallurgical coal in the second quarter of 2025.

The Soda Ash segment also saw a decrease in net income by $1.1 million compared to the prior year period, mainly due to lower sales prices. Operating cash flow and free cash flow in this segment decreased by $2.7 million each, attributed to a lower cash distribution received from Sisecam Wyoming.

Corporate and Financing net income, operating cash flow, and free cash flow each increased by $2.3 million in the second quarter of 2025 compared to the prior year period, primarily due to lower interest expenses and cash paid for interest.

Strategic Initiatives and Corporate Developments

NRP continues to focus on debt reduction, with only $102 million of debt remaining. The company’s available liquidity was $157.5 million as of June 30, 2025, consisting of $30.3 million in cash and cash equivalents and $127.1 million of borrowing capacity available under its revolving credit facility. The consolidated leverage ratio was 0.5x at the end of the period.

Management's Perspective

Craig Nunez, NRP's president and chief operating officer, commented, "NRP generated $46 million of free cash flow in the second quarter of 2025 and $203 million of free cash flow over the last twelve months. Although we experienced another quarter of weak prices for metallurgical coal, thermal coal, and soda ash, the partnership continues to generate significant free cash flow and make progress towards our goal to pay off all remaining debt."

Future Outlook

NRP expects muted pricing for both metallurgical and thermal coal for the remainder of 2025 due to stagnant global steel demand and regulatory uncertainty. The soda ash market remains oversupplied, and NRP anticipates that international soda ash prices will stay weak until high-cost supply is forced out of the market or global demand growth catches up with supply. Distributions from Sisecam Wyoming are expected to remain below historical norms for the foreseeable future.

SEC Filing: NATURAL RESOURCE PARTNERS LP [ NRP ] - 8-K - Aug. 06, 2025